Faith Based Investing

“How you spend your time is more important than how you spend your money. Money mistakes can be corrected, but time is gone forever.” ~ David Norris

In a world that tugs us in every which direction, that slowly drains our time, steals our emotions, and leaves us for dead, how do we make heads or tails of all our goals. Most people get overwhelmed with the burden of choosing among:

* Biblical values

* Worldly values

* Personal values and belief systems

* Family member values

* Society’s goals

How in the world do we balance?

In most cases you cannot combine these beliefs because they often contradict one another. For example most worldly investment, estate planning, and retirement planning advice contradict biblical principles. It becomes extremely important when you are prioritizing goals that you have input from someone who is able to assist you in making complex decisions.

Often a qualified Christian financial planner can provide you with an independent, unbiased assessment of your financial goals as well as specific strategies to work toward those goals. He or she will also help you rank and decipher which goals are most realistic and achievable. Your priorities will decide the level of balance, where you need to adjust, as well as where you need to shift focus.

Priorities

A woman parked her brand-new Lexus in front of her office, ready to show it off to her colleagues. As she got out, a truck passed too close and completely tore off the door on the driver’s side. The woman immediately grabbed her cell phone, dialed 911, and within minutes a policeman pulled up.

Before the officer had a chance to ask any questions, the woman started screaming hysterically. Her Lexus, which she had just picked up the day before, was now completely ruined and would never be the same, no matter what the body shop did to it.

When the woman finally wound down from her ranting and raving, the officer shook his head in disgust and disbelief. ”I can’t believe how materialistic you women are,” he said.  “You are so focused on your possessions that you don’t notice anything else.” “How can you say such a thing?” asked the woman. The cop replied, “Don’t you know that your left arm is missing from the elbow down? It must have been torn off when the truck hit you.” “Oh my gosh!” screamed the woman. “Where’s my tennis bracelet?”

So where are your priorities?

“Then Benaiah the son of Jehoiada, the son of a valiant man of Kabzeel, who had done mighty deeds, killed the two sons of Ariel of Moab. He also went down and killed a lion in the middle of a pit on a snowy day. He killed an Egyptian, an impressive man. Now the Egyptian had a spear in his hand, but he went down to him with a club and snatched the spear from the Egyptian’s hand and killed him with his own spear.” - 2 Samuel 23:20-21

I just finished a great book by Mark Batterson, entitled, In a Pit with a Lion on a Snowy Day – How to survive and thrive when opportunity roars.  Ever felt like a book was written just for you?  Well, this is one such book.  I am about to take the biggest leap of faith in my 35 years here on earth.  This book revved me up mentality and helped get my attitude in check. When you need some encouragement, hope, and perspective, God’s Word stands alone, but In a Pit gave me another shot of adrenaline.

God places us strategically in the right place at the right time.  It is when we face struggles or obstacles that we grow the most.  In the book of James, He says, “Consider it pure joy, my brothers, whenever you face trials of many kinds, because you know that the testing of your faith develops perseverance.  Perspective must finish its work so that you may be mature and complete not lacking anything.” (James 1:1-4).

Our calling in life is often running toward risk instead of running away from it.  Yet, for most, they pray that God would take away the challenges and obstacles.  I’m not saying cancer, or losing a job, or divorce, or loss of loved one is easy.   However, often when we face our greatest struggles, God uses these times to strengthen our character and prepare us for the next phase of our journey.  We should look for opportunities in our problems and take more risks so we can be all God has called us to be.

It’s crazy for someone to chase a lion, but that is exactly what In a Pit talks about- the radical, gut checking, and intentional pursuit of chasing lions (opportunities).   Nothing is impossible with God.  Yet if you view God as small, your challenges appear bigger than they are.  But with a larger view of God and all of His possibilities, your problems and challenges are much smaller.

In The Faith-Based Investor, I talk about how faith and fear are foes – they are opposites of one another.  Many let their attitudes get in the way of success.

“I can’t do it.”

“That could never happen to me.”

“It’s too difficult.”

The call of defeat often sets in before we really ever get started. Yet Batterson, who is the Lead Pastor at National Community Church in DC, offers a challenging look at how our strength and endurance during times of fear build character and faith.  He says, “The goal of life is not the elimination of fear.  The goal is to muster the moral courage to chase lions.” He goes on to say, “Opportunities often look like insurmountable obstacles. Someday we may be grateful for the bad things as the good things, because the bad things helped prepare us for the good things.”

It is when we play it safe that it is the most risky.  We risk the opportunities and experiences God had in mind for us.  At the end of one’s life more people regret the things they didn’t do than regret the things they did.  Will you leave this earth with thousands of “what ifs” or will you chase the lions God brings into your life?  It won’t be easy, but the rewards will be well worth the struggle.   Can you name one thing worth having that was easy to obtain?

When we are faithful with little things God prepares us for the greater opportunities.  When you show courage, character, dedication, and commitment, He is ready to show you where He is leading you.  Until you get to this place, you may appear stuck.  Stuck waiting for a sign, stuck waiting for an answered prayer, stuck in the status quo.  God does not call us to be mediocre.  He wants all of His people to be successful, to prosper, and to be blessed.  Yet, He cannot bless actions or steps you never take.

In Jeremiah 29:11, the Bible says, “For I know the plans I have for you, declares the Lord, plans for good and not for evil to give you a future and a hope.”   He also says, “”A man’s heart plans his way, but the Lord directs his steps.” (Proverbs 16:9) So the big question is what lion is God calling you to chase?  If you are stuck and need some direction, I highly suggest you read In a Pit with a Lion on a Snowy Day.  It may just provide the encouragement you need.

2010 Provides a unique opportunity for IRA owners.

In 2010, you have the opportunity to convert your traditional IRA to a Roth IRA. The usual income limitations that stand in the way for converting will not apply. So, should you convert? Let’s look at why this may or may not be a good idea.

Here’s why a Roth IRA conversion may make sense for you

Consider this: a Roth IRA allows tax-free growth and tax-free income distributions at age 59½ or older and as long as you have held your Roth account for 5 years or longer. While your contributions to a Roth IRA do not allow a tax-deduction, the younger you are, the longer time frame you have for tax-free growth.

Now realize converting to a Roth IRA comes with a price tag. You will have to pay ordinary income taxes on the amount you convert. Whatever amount is converted is added to your income for the year. However, there may be a silver lining: With the market being down, most likely your account value may be the lowest it has been in years. This means by converting now you may pay lower taxes.

It is also worth noting that with all of the reckless government spending, there is a great chance that tax rates could increase in the years ahead. This is another reason why now may be as good time as ever to convert. If converting may send you into a higher tax bracket, you could consider doing a partial conversion (only converting a portion of your Traditional IRA to avoid going into the next bracket).

Even if you are older, a Roth still may make sense. Normally with an IRA, at age 70 ½ you are required to withdraw from your IRA through mandatory required distributions. However, with a Roth, there is no mandatory withdrawal rule allowing you more time to accumulate tax-free. Also, under the present tax laws, converting a traditional IRA to a Roth can lower the size of your taxable estate. This type of prudent estate planning could allow for decades of tax-free growth for those converted assets.

A few additional estate planning points: If you name your spouse as the beneficiary of your Roth IRA, your spouse can treat the inherited IRA as his or her own after you die and forego withdrawals. This allows those Roth IRA assets to keep compounding untaxed across the rest of your spouse’s lifetime.

READ MORE HERE

“Choose a job you love and you will never have to work a day in your life” – Confucius

Time Off

Two factory workers were talking….

“I know how to get some time off from work,” said the man.

“How do you think you will do that?” asked the other one.

He proceeded to show her…by climbing up to the rafters, and hanging upside down.

The boss walked in, saw the worker hanging from the ceiling and asked him what on earth he was doing? “I’m a light bulb,” answered the guy. “I think you need some time off,” said the boss. So, the man jumped down and walked out of the factory.

The second worker began walking out too. The boss asked her where she thought she was going. “Home – I can’t work in the dark.”

What if we loved what we did? What if work and play were one in the same? Everything would just be living. Imagine a life where you get paid to do something you love and you do it to advance God’s kingdom. How could you not be satisfied? For most, it is a dream, but rarely if ever gets pursued. There is always tomorrow. Unfortunately tomorrow never comes.

I have a friend Roger who is a great guy. He has always wanted to be in the ministry field. He has been saying this for the last ten years. He just hasn’t found his calling. Well Roger has been with the same company for those ten years. He keeps get promoted and making more money. With each new raise, it becomes that much harder to not only walk away from the company he despises, but to pursue something that he enjoys and can directly impact the kingdom. The last time I talked to Roger he was interviewing for the next position up in hopes that he would “someday” find what he was looking for. I see these cases too often. It is not wrong for Roger to stay where he is at. He can glorify God in everything he does, but why not actively work toward a new rewarding career that would bring some new excitement to his life? We all need that spark, that drive, that fire in our bellies. Half of the battle is finding that passion deep within you and then exhorting the energy to make the dream happen. So many times God helps us lay out the vision, we just aren’t there to listen. Houston, I think we have a problem!

Take your job and love it!

Work should be something we love. Beside sleep, what else do we do me do more? There has to be a better way. There is. We need to take our jobs and love them. If you do not love your job and what you do, cut your losses and move on. Make a change, work toward change. Just do something. Settling for the ho-hum is not the answer. I make it sound so easy. I realize it is not. There are circumstances you cannot just quit and walk away. My point is: set goals, make plans, and work toward changing your life so that you find more passion. Sometimes we need to rebirth. Begin over, make a change. If you do not like the results, find a new course. The winds are blowing; the sea of change is wide open. Let your world come undone, to find the new beginning. If you are serious about change, a great resource is Dan Miller’s 48days @ www.48days.com.

People have many false misconceptions about investing. They read or hear something and assume it is true without any research. Others rely too much on research and suffer from information overload or “analysis paralysis.” Some common misconceptions:

1. Diversifying means buying lots and lots of investments.

2. I should always try to beat the markets.

3. I should never take risk.

When it comes to money, most people play it safe. They want to feel secure. They settle for mediocrity instead of excellence. Passion doesn’t di­rect; fear does. They let their emotions control their destiny. Fear keeps people in the same type of job, earning the same type of pay. The pay pro­gresses upward but so does the fear–there is now more to lose. The job is only a short-term solution to a long-term problem. They refuse to take any risk and seek better opportunities. If you master the power of money, you will not be afraid of change and will be able to take more risks. Who do you think is more likely to pursue his dreams and take a risk: the man with a million dollars in the bank or the guy living paycheck to paycheck?

Play the game to win, not to avoid losing. The greatest things in life are worth a risk: the risks of telling her you love her without knowing if you will hear it back; the risk of taking a new job opportunity not know­ing if it will be beneficial in the long-run; the risk of saving for retire­ment not knowing if you will ever get there. Financial risks appear to be a huge leap of faith. The biggest risks are the ones you never take. If you do not take a chance once in a while, you may never lose, but you will rarely win. Take chances. Know the stakes. Know the worst thing that could happen as a result of your decisions and take calculated risks.

I like to share good videos when I see them.  I saw this one on Tangle and thought of you.  It is a crafty video that helps you look at money in an interesting way – from the devil’s perspective.  check it out:

Strengthening America

America was founded upon the biblical principles of faith, hope, and love. According to www.morallaw.org, a few ex­amples of how our faith in God has shaped the foundation of America include:

* Since at least the 1820s, the U.S. Supreme Court has opened its court sessions with the prayer of “God save the United States and this Honorable Court.”

* In God We Trust was first inscribed on U.S. coins in 1864 under President Lincoln, and in 1956 Con­gress made it the national motto of the United States.

* Congress inserted “under God” in the Pledge of Allegiance in 1954 in order to combat the rise of atheistic communism and reaffirm that America was “founded on a belief in God.”

* A statue of Moses holding the Ten Commandments is featured in the rotunda of the Library of Con­gress.

* When our nation was attacked on September 11, 2001, the members of Congress spontaneously sang “God Bless America” on the steps of the Capitol Building.

The Declaration of Independence holds as “self-evident” that “all men are created equal” and “endowed by their Creator with certain unalienable rights, that among these are Life, Liberty, and the Pursuit of Happiness.” When fifty-six men signed this Declaration, they knew there was risk involved, but they took comfort knowing their future was in God’s hands. The forefathers invested everything, including their personal fortunes, in the fate of America be­cause of their trust in God. How amazing is this example?

Why do so many people want us to forget that America was founded on a strong faith in God? As individual investors, this provides the clearest example of why we should want to strengthen America. Our country was built on faith in God, and to continue to prosper, we must continue to rely on our faith in God. When America replaces its foundational beliefs with secular, man-made be­liefs, the end of America as we know it will occur. If our Founding Fathers were willing to pledge their worldly pos­sessions to build America, doesn’t it make sense for us to pledge our investments to build a better America?

Financially freedom comes with a price tag. It’s cost? It takes discipline, focus, prudent planning, patience, time, and of course, wise counsel. However, it’s the mistakes people make that often prevent or delay financial freedom.

Mistake #1: Putting off financial planning.

Don’t do this: This may be the biggest mistake of all. Procrastination does not help you save for retirement, and it will not help you reduce your taxes or transfer money to your heirs. Delaying necessary financial planning can be perilous. Some avoid planning out of fear – they simply don’t know where to begin. Don’t let this stop you.

Instead do this: Decide today to do something about your financial future. Seek a qualified financial planner

Mistake #2: Putting all your eggs in one basket.

Don’t do this: Too many people invest everything in just one place.

Instead do this: Try spreading your assets across multiple investments and you’ll help to insulate them against the effects of economic ups and downs.

Mistake #3: Buying more home than you can afford.

Don’t do this: Interest-only loans, option adjustable-rate mortgages (option ARMs) and lease purchases still tantalize couples and families with small nest eggs, modest salaries and credit blemishes into taking on much more liability than they can bear. The result is often foreclosure.

Instead do this: Speak to a professional to make sure the amount of home you purchase makes sense for you.

Mistake # 4: Making impulsive or emotional money decisions.

Don’t do this: A decision that feels good (or exciting) may not be appropriate for you financially. Avoid spur-of-the-moment financial choices, and the influences that may trigger them.

Instead do this: The next time you’re about to make a snap decision, stop and think. Will you lose the opportunity if you take a while to consider your next move? Consider and compare whenever possible.

Mistake #5: Living above your means.

Don’t do this: Be seduced by big-debt, big-ticket luxury items … sometimes all the way into bankruptcy.

Instead do this: Make wise decisions about money, take the time to consider big purchases, and be mindful of what effect they’ll have on finances down the road.

Mistake # 6: Avoiding all risk.

Don’t do this: Caution is good, but being extremely risk-averse (for example, refraining from investment and just putting your money in an FDIC-insured bank account) may cost you in terms of the growth of your retirement savings and assets.

Instead do this: If you’re holding back because you’re unsure, speak with a financial advisor. Chances are you need some growth to reach your goals.

Mistake #7: Too much exposure to your company stock

Don’t do this: In 401ks, many levitate toward the familiar option: company stock. Sometimes the match or incentive stock is paid in company stock. Whatever the reason, the freefall of many technology stocks, as well as the stock of some blue chips, is a painful reminder of the risk of putting your retirement future entirely in the hands of employer stock. Enron, WorldCom, Lucent, the list goes on…

Instead do this: Consider the numerous strategies available for diversifying your portfolio beyond your company stock. Look at other vehicles outside your retirement plans such as using exchange funds or individual stocks. When you get the opportunity, sell off some of the company stock you own (when price is optimal and time restriction, if any are gone) and invest in other areas. SEC rules make it easier for you to divest company stock.

Mistake # 8: Depending on your business for retirement

Don’t do this: It’s common for many small business owners to depend on the eventual sale or family succession of their business to fund their retirement. This carries the same risk as overloading on company stock.

Instead do this: Set up a company retirement plan where you can invest in outside assets. Try to diversify your investments outside your industry.

When it comes to the area of saving, many confuse the act of planning with the act of hoarding. There are both proper and appropriate ways to save and invest portions of our money. However there is a danger of investing to create financial freedom apart from God. Where is the line? It will come down to your heart and where your motives lie.

Your motives must still involve God and His direction for your life. Taking matters into your own hands and relying on wealth alone will open yourself to an ungodly lifestyle. I have met many strong followers of Christ who believe investing and saving show a lack of faith in God. It reminds me of the story:

A man died and went to heaven and when he got to heaven he questioned why God allowed him to die. Earlier in the day the man had turned on the weather channel and saw that heavy rains and flooding were coming and everyone should evacuate. The man, being faithful, said, “God will help me” so he did nothing. The waters came in like a fury. The flood waters began to rise and he was forced to the second floor of the house. He saw a boat go by and the two men inside the boat asked if he needed help. He refused saying that “the Lord will help me”. So they went on their way. The waters continued to rise so he was forced onto the roof of the house. Suddenly a helicopter came by and asked if he wanted a lift. Again, he refused saying “the Lord will help me” and off the helicopter went. The man died in the flood and questioned why God would allow a man with such strong faith to die. Who do you think sent the message, the boat, and the helicopter?

There is a strong need for faith but we need to balance this with our God-given common sense. It is a responsibility for us to provide for our family’s future. 1Timothy 5:8 always comes to my mind: “Everyone should provide for his own relatives. Most of all, everyone should take care of his own family. If he doesn’t, he has left the faith. He is worse than someone who doesn’t believe”. Pretty strong words! We should have faith but also the desire to find ways to provide for our families.

I just wanted to take a moment and wish you a Happy Father’s Day!

Mario Cuomo once noted …

“I talk and talk and talk,
and I haven’t taught people in 50 years
what my father taught by example in one week.”

Being a father is more than merely “having” a child. It’s an important job that lasts 24 hours a day for the rest of your life, and those who are equal to the task are to be commended.

Enjoy your day! You’ve earned it!

Great video on the story of Father’s day: