Faith Based Investing

Do your values reflect the world’s priorities?

Let me ask you an important question: How do you feel about the moral direction of our country? Are you saddened by any of the items on the following list?

• The rising number of abortion clinics and facilities

• The increased activity of “pro-abortion” activist groups

• The shady, deceptive practices being used by the pornography industry

• The number of deaths caused by the tobacco industry

• The number of families being torn apart by addictions ranging from alcohol and drugs to gambling

• The promotion of homosexuality

If any of these issues deeply sadden you, think of how God must view His creation being destroyed by these issues. It breaks His heart. If Jesus were an investor today, would He place money in any company involved in those areas? Would He choose to start a business of His own that was involved in any of these areas?

The answer to both questions is an emphatic no, but you may be unknowingly profiting from these industries.  God has entrusted you with His resources, and it is your duty to be a wise and faithful manager of the assets He has provided you. In order to do this, you will need to follow biblical principles. As a Christian and an investor, it is more important how you make your money than how much money you make.

There is no doubt that sinful activities can be extremely profitable, but if you can invest in a manner that avoids industries that blatantly oppose God’s Word and still make a good profit, why would you choose any other way? Do you think God is more concerned about the amount of money you earn or the manner in which you earn it? How we invest money is a true measure of the values we hold dearly. If we stray from God’s values should we really be surprised when things fall apart?

The World vs. the Word

You may be confused as to how to manage your money simply because you have taken the world’s advice. You may have formed your financial habits from the actions and advice of your parents, friends, school, and the media. How successful has that been for you? For many, the approach is simply not working. Why are so many failing?

When we have an educational system in America that does very little to teach people the basics of financial management, a church that shies away from financial discussions, and an abundance of confusing, contradictory messages from the media and so-called experts, it is no surprise the average Christian is confused about where to turn for advice!

Choosing the world’s way of handling finances over God’s way is a recipe for disaster. Fear and greed are the motivating advice being sold by much of Wall Street. This advice can lead to financial ruin. Many become so confused that they choose to go it alone and rely on the banks to tell them what they can and cannot afford. They may choose to make financial decisions based on the latest advice in Money magazine, on the radio or TV, or their coworkers’ suggestions.

Rather than knowing for themselves where they stand financially, they listen to bad advice. Hosea 4:6 reads, “My people are destroyed for lack of knowledge” (NIV). The majority of people have no financial plan or have built their plan on the ways of the world. If what we’ve been doing so far it isn’t working, we need to change direction. Change begins with looking at God’s Word.

BIBLICAL WISDOM ON INVESTING

On diversifying: “Give a portion to seven, or even to eight, for you know not what

di­saster may happen on earth” (Ecclesiastes 11:2 ESV).

On seeking advice: “Without counsel plans fail, but with many advisers they succeed” (Proverbs 15:22 ESV).

On being steady, patient, diligent, and faithful: “The plans of the diligent lead sure­ly to abundance, but everyone who is hasty comes only to poverty” (Proverbs 21:5 ESV); and “A faithful man will abound with bless­ings, but whoever hastens to be rich will not go unpunished” (Proverbs 28:20 ESV).

On screening your investments: “You must not bring the earnings of a female prostitute or of a male prostitute into the house of the LORD your God to pay any vow, because the LORD your God detests them both” (Deuteronomy 23:18 NIV).

Our goal at www.jayperoni.com is to help you make wiser decisions with your investment dollars.  On a regular basis we will feature a new segment called  ”The Battle of Good Versus Evil”.  We will look at the activities of various corporations and present both the good and bad being done by publicly-traded companies.

I wanted to share some analysis from our friends at www.stewardshippartners.com:

Time Warner  (Ticker TWC) – Porn, Homosexuality and Anti-Family Activity

“Things that cause people to sin are bound to come, but woe to that person through who they come.” Luke 17:1 (NIV)

Time Warner is perhaps best known today for its disastrous acquisition of America Online, viewed by many as one of the worst decisions by a corporate management team in history. While this purchase of one of the Internet’s early icons has severely hurt shareholders, we are more concerned by the moral pollution Time Warner is now spewing throughout our society as its negative societal impact goes well beyond just the company’s shareholders. While this company certainly has some worthwhile attributes, these are easily offset by the sizable quantity of disturbing activities for which it is responsible.

In addition to advertising in porn magazines, Time Warner’s AOL.com derives revenue from ad placements and/or links to porn websites. Clearly, as Christian investors we seek to avoid ownership of companies involved in activities that are harmful to those both producing and consuming the pornography.

Time Warner has also been identified by the Biblically Responsible Investing Institute as one of the foremost supporters of homosexual­ity. The Bible clearly indicates that homosexuality is a sinful behavior and using shareholder resources to promote homosexuality is at odds with Christian investors’ beliefs.

Via Time Warner’s Home Box Office unit, its movie production units and its broadcast TV unit, the company produces a massive quantity of programming which undermines healthy family values. Violence, drug use, sexual content and obscene language are frequently found in the company’s programs.

Excluding Time Warner from our list of potential investments is not a difficult decision. There are few admirable aspects to this company. As BRI investors seeking to please and honor our Lord, we naturally look elsewhere to achieve investment success as we do not want to be associated with a company using shareholder resources in a manner which have a negative impact on individuals and society in general.

Jay’s Take:

Not a place where I would feel comfortable investing the money God entrusts to me.  According to Morningstar (as of 2-20-10), the top ten funds that own Time Warner are as follows:

1. American Funds Growth Fund of Amer A
2. Dodge & Cox Stock
3. American Funds NVIT Growth-Income II
4. Dodge & Cox Balanced
5. Vanguard Total Stock Mkt Idx
6. Vanguard 500 Index Investor
7. SPDR S&P 500
8. American Funds Invmt Co of Amer A
9. Vanguard Institutional Index
10. Van Kampen Comstock A

A God of Opportunities: Turning the Negative into the Positive

Too many people paint God into a corner.  God please answer my prayer this way… Yet God has other plans in mind.  We serve a God who delivers mercy, grace, and unlimited opportunities.  Yet so many of us succumb to doubt, worry, and fear.

You may think, I cannot succeed financially; there are too many obstacles. You may not be able to succeed on your own, but with God by your side, anything is possible. He can make things happen that seem impossible. He can open doors that you never thought could be opened. Do you have faith that the Creator of life can supernaturally turn your financial life around? He can make a way for you even when the odds are stacked against you and there appears to be no way. Don’t see God as a small-sized God but rather a God who can help you ac­complish anything.

Do you know people who are always negative? Even if something good happens to them, they still find something to complain about. You know the type: poor me, nothing good ever happens to me, this is just my luck, etc. It is hard to be blessed when you cannot recognize a blessing when it comes. Turn your negative thoughts into positive re­sponses. Things can always be worse. With God by your side, you can get through whatever you face.

Rock Bottom

Ron was at rock bottom, in his late forties and about to lose every­thing: his family, his business, and his millions. The 1980s real-estate market downturn left Ron with highly leveraged real estate and wiped out his net worth in an instant. A “paper millionaire” no longer, he now owed more than his properties were worth. To top it off, he was three months behind on his personal residence mortgage payments and about to lose that as well. Here Ron was, bankrupt, a failing marriage, and considering ending his life. It was painful for him to wake up each day. This went on for months, then years. He hung in there, and his family stuck around despite his behavior.

Finally, a friend leveled with Ron. “I know you have been down in the dumps and keep focusing on the life you lost, but think about the living you still have left to do. God loves you and can still use you for His good. Focus on the good in your life and forget the bad.” His friend then challenged him, “Ron, don’t you think God wants you to do more than you are doing? Don’t you think He has better things in store for you? You need to stop being so negative!”

Ron took the advice to heart and began waking each day with a new mind-set. He concentrated on the good things in his life and worked hard to turn things around. He leaned on God and fought his way out of depression into a life full of hope, promise, and a brighter future. He concentrated on restoring his broken relationships, building back his finances, and honoring God with his attitude.

When Ron turned to God, he found joy, a fresh vision, and a new sense of purpose. Life is a precious gift—every second, each breath, and the start of every new day. You may never get another opportu­nity to do the things that matter most. You may be so busy that life can pass you by. When you realize what’s important, and create a plan to make it happen, you will reap the greatest rewards. Having a plan is important, but you also need to have a personal connection—some­thing that will keep you motivated. There needs to be fuel to light a fire under you.

Without Purpose, Goals Have Little Meaning

Without knowing what is truly important to you, goals have little meaning. Like the dieter who says, “Yeah, I’d like to lose the love han­dles,” as he eats two more doughnuts, chugs two beers, and watches another episode of Jerry Springer. His motivation is at zero. Now add some meaning to your goals and it’s a different ball game all together. Take, for example, a woman who has a burning desire to lose her post-pregnancy pounds and fit back into her pre-pregnancy wardrobe. She wakes at 6:00 a.m. every morning, does sixty minutes of cardio, and has been keeping track of her calories. Who do you think is more likely to stick with a diet: the Doughnut Dude or the Motivated Mama?

A lack of vision sometimes leads to mediocrity. If you don’t have a vision of where you are heading, how will you know when you get there? Do you remember the story of Alice in Wonderland? Here is an excerpt from the childhood classic, which highlights what I’m writing about:

“Cheshire Puss . . . would you tell me please, which way I ought to go from here?”

“That depends on where you want to get to,” said the Cat.

“I don’t much care where—,” said Alice.

“Then it doesn’t matter which way you go,” said the Cat.

“So long as I get SOMEWHERE,” Alice added as an explanation.

“Oh, you’re sure to do that,” said the Cat. “If you only walk long enough.”

Great Things Often Come to Those Who Plan

People who achieve great things often do so because they have a good idea of where they want to be. Think of some of the most suc­cessful people you know. Did they get where they are today because of luck? Or because of hard work and knowing what they wanted and where they wanted to go?

Many people have a dream life that they would love to see come to fruition, but often they sell themselves short. They have preconceived notions that to get what they want in life will be too hard and too much work. Have you ever looked at someone who emulated what you wanted for yourself and thought it could never happen to you? If there were no constraints and you could simply make it happen overnight, you would most likely do what it takes to make it happen.

Your goals must be compelling and motivating enough to get you excited about achieving them. They must be powerful enough that you think about them constantly. This includes trying to live your ideal life: where you work or volunteer, what activities you participate in, what charities you support, and any other personal goals. These goals should be specific and easily defined. They should be tangible so you can feel, touch, see, smell, and hear them. They should excite all of your senses and drive you toward success.

In order to create the vision, you will need to uncover exactly what excites you. This involves a self-assessment. By examining how God designed you, it is easier to look around at all the opportunities that are right in front of you.

“Knowledge is the key to financial freedom”

How do you reach your financial goals without sacrificing your principles?

Jay Peroni, CFP® can help you find your way using a GPS System based on biblical principles:

	Grow your wealth: We’ll show you how to find investments that reflect your Christian values, morals and beliefs. You will receive specific investment strategies and advice designed to help you grow the assets God entrusts to you. We’ll teach you how to know what to buy, when to buy, and when to sell. It is about how to find good investments! Imagine making long term 20 year compounded rates of return of 20%, 30% or even 50% per year. We made over 50% in 2009! Some of the greatest investors of all time (Warren Buffett and Peter Lynch to name two) do this by asking two simple questions: Is it a wonderful business? Is it on sale? That’s it. Simple. Easy. We show you exactly what to do!
	Protect your wealth: Our training is designed for an environment such as this! High unemployment, low interest rates, volatile stock market. Our strategies are designed to help you weather the storm, gain peace of mind, and have confidence that you’re heading in the right direction. With specific training and strategies, you’ll know exactly what to do.
	Share your wealth: By having more you can give more and help advance God’s kingdom. Financial freedom allows you to help more of His people. We provide timely financial advice and training to help you better manage your finances.

Learn Jay Peroni’s GPS System that has helped thousands learn how to successfully build wealth!

Only 15 spots left! Classes start March 2nd, 2010!

For Details go here:

http://www.jayperoni.com/seminar/sales.html

Would you fly in a single-engine plane without a parachute? Would you go white-water rafting without a life preserver? Would you travel the desert without a canteen? If not, would that show a lack of faith in God? You may say that’s absurd, but many people consider insurance a lack of faith.

Many people choose self-insurance or go without insurance while others take on too much insurance. During downtimes, insurance can be a financial lifesaver. But is it wise and godly to protect against illness, death, accident, or theft? Many refuse insurance simply because they argue that it takes God out of the picture. However, God’s Word instructs us to prepare for good and bad times.

When insurance is used properly it can help a family during a major illness or disability, it can provide replacement income for the loss of a spouse, it can rebuild a damaged home, and it can pay medical bills during an extended stay in a nursing home. Insurance will never cover every catastrophe, but it can be a wise way to protect the assets and income God blesses you with. You should also be careful not to allow insurance to be a replacement for God. Balancing wise planning and faith in God should be the goal of  every  protection plan—enough to protect your family, but not so much as to limit your dependence on God.

In his book Money, Possessions, and Eternity, Randy Alcorn asks, “But where does God fit into all this? The greatest danger in insurance is that it so easily undermines our sense of dependency on God. Is  insurance a God-given means of provision, or is it in reality a theological end-run that makes trust obsolete and God unnecessary?” The act of buying insurance in itself doesn’t show a lack of trust in

God; instead it demonstrates proper planning. God clearly wants us to provide for our families as demonstrated in 1Timothy 5:8: “If anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever” (NASB).

But we cannot be too greedy and slothful with our insurance policies either. Life insurance is a financial tool just like a mutual fund, a stock, or a CD. These tools are morally neutral. The attitude in using the tools determines whether insurance is being used properly in God’s eyes. Insurance should not be bought because of fear but rather with faith.

Jeff’s Legacy

Jeff worked at a telephone company for nearly twenty years after graduating from high school. At thirty-seven, he was the sole breadwinner for his family. He always thought that his company would take care of him in the event of an untimely death. He was confident that his family was secure. He was a family man and loved spending time with his wife, Julie, and their two young children. They were fortunate that Jeff’s income allowed Julie to stay home with the children.

When he came in for an appointment, Jeff was shocked that he was underinsured. If he passed away, his group term insurance would have covered only two times his yearly salary.  This would last only four to six years with his family’s current expenses. His wife would have to go back to work and put the kids in day care. Jeff opted to buy additional life insurance to cover his income until the kids were through college. Sadly, this was the wisest investment that Jeff ever made.

Less than a year after being accepted for insurance, he was diagnosed with brain cancer. Jeff never reached his thirty-ninth birthday. The silver lining in the story was the policy that Jeff bought for his family. He prepared and planned and left his family in a sound financial position. Julie says, “Had Jeff not met with you, a tragedy would have been made worse. Yes, God could have performed a miracle. He could have used the church family to bail us out, but through this policy, He was able to carry us through the toughest loss we ever faced.” Julie has since gone to nursing school at night and become an RN. The insurance proceeds allowed her to pursue a passion rather than forcing her to take a job.

Why Insure?

Insurance provides protection for unanticipated expenses you couldn’t otherwise pay. For example, in the case of Jeff and Julie, insurance was used to produce needed income after Jeff’s death. Buying insurance is like looking ahead. If you knew you would face a financial problem down the road and could afford to protect your family and your assets at a fraction of the replacement cost, why would you not at least consider it? Insurance also frees up surplus funds.

In Jeff and Julie’s case, Jeff made $85,000 a year.  When he died, the family still needed at least $75,000 in yearly income. Social Security provided around $12,000 a year for dependent care. The family still needed $63,000 a year to cover the gap. Where would these funds come from? Jeff and his family could have saved over time, but in this case he had less than a year to live. The other alternative was to buy insurance, which he did, and that turned out to be the wise choice. No one knows what the future holds, but planning ahead is prudent and resourceful.

On Tuesday, I hosted the “No More Just Surviving, Let’s Start Thriving! 2010 is Your Year!” webinar.   We had several hundred participate via phone and/or internet from all over the world!  We are deeply humbled and were excited to share the amazing discoveries of how 5% of the population thrived in 2009 while 95% barely survived.  We revealed 10 key principles.  If you were there, did you take notes???

For those who were able to attend live: Thank you so much for carving out some time to spend with me, I hope you found it educational and rewarding.   I have extended the $50 discount on the 4 week intensive course.  

You can still go to http://www.jayperoni.com/seminar/sales.html

 Type in PERONI  as the discount code and you will instantly save $50.  

Remember the class starts on March 2nd and will be four weeks of intensive learning followed by a year of practical application – truly life changing.   We only have 15 more slots open. 

For those who missed the live webinar or want to hear the recording:

Please go here to listen:

http://www.audioacrobat.com/play/WRR7sBVQ

Even though you didn’t attend live, you can still save $50 off our 4 week intensive course as well by entering PERONI as the discount code at http://www.jayperoni.com/seminar/sales.html

Only 15 slots are open and the doors will close until the next session!

Slides from Tuesdays Webinar

Thrive 2-16-10

Attached are the slides I presented on Tuesday night (click above).  As always, if I can answer any questions, please let me know.

Thank you for supporting us!

Podcast: Play in new window | Download

“No More Just Surviving, Let’s Start Thriving!
How to recession proof your assets and retirement”