Faith Based Investing

One of my favorite songs as of late is “Out of my hands” by Jars of Clay. Get a free download here:

The lyrics are moving:
“I wasted the rescue,
abandoned the mission.
I’ve failed by my own hand
and watched it all go wrong

You said you could save me
that I couldn’t save myself
You said that you loved me
no matter what I’ve done

When the light is gone
and life is just a day we take
Still the fight goes on
to give my heart away

And It’s out of my hands
It was from the start
In light of what you’ve done for me”

How many times do we get in the way of God’s work in our lives? We try to take control when He is in control of everything.

He can save that marriage…

He can help you get that job you need…

He can cure you from that awful disease…

He can solve your addictions

On and on…

The truth is we cannot do it alone.  Your finances included.  It takes accountability: to Him, to yourself, to your spouse, to an accountability partner.  Don’t do your finances alone!   Get the help you need…

Let me know if I can help offer you a professional opinion.

Are you heading in the right direction?

Are you off course and need some guidance?

Proverbs 19:20-21

Listen to counsel and receive instruction,
That you may be wise in your latter days.
There are many plans in a man’s heart,
Nevertheless the LORD’s counsel—that will stand.

Jeremiah 29:11
For I know the plans I have for you,’ declares the LORD, ‘plans to prosper you and not to harm you, plans to give you hope and a future.

He tried to outsmart God…

A man prays to God, “God, what is a million years to you?” God replies, “To me, it‘s like a second” The man then asks, “Well, How much is a million dollars to you?” to which God replies, “it is like a penny.” Thinking he could outsmart God, the Man prays for a penny. God says, “Sure, just wait a second”.

Our perspective of money determines what it means to us. In a day and age where divorce is as trendy as the iPad, it isn’t exactly earth shattering when we learn that most marriages are a result of financial problems. Money can be a blessing or a curse depending on where you are in your relationship with money. Money is a necessary for day to day living, but when the relationship is abused, it can become a great source of evil. When I speak about marital problems, it does not mean that money is always the root problem. It is often merely a symptom of deeper underlying issues that may be unconscious and unspoken.

If you are prepared to handle money, more of it will lead to more money. Why do you think that most lottery winners end up broker or back where they started before the won the lottery no matter how much they won? They were not prepared for the responsibility and made the same mistakes they were currently making only multiplied the mistakes because they had more money.

When you look at a person‘s views on money, it impacts many other areas of their life: how they view God, their spouse, their children, their other relationships, and even their career. The motives behind why someone wants money become a root question.  What does money mean to you?  I’d love to hear your thoughts on why money is or isn’t important to you…

The Winner’s Brain – 8 Strategies Great Minds Use to Achieve Success is a ground-breaking book by Jeff Brown and Mark Fenske reveal 8 key traits that great minds possess. How many of these qualities do you possess? How many need to be improved?

Let’s look at 8 traits of a “Winner’s Brain”?

Win Factor #1: Self awareness – Those who are self-aware not only realize how they relate with the rest of the world but also how the rest of the world relates with them.  If you are confident, authentic, and aware of your strengths and weaknesses, you will be more long-term focused and effective in all areas of your life.  Ask yourself: What does money meaning to me and why do I want more?

Win Factor #2: Motivation – Have you watched Daniel Pink’s viral video on the surprising science behind what truly motivates us?  In his book Drive, Daniel looks at how money and material “things” rarely motivate us.  It is a greater sense of purpose and greater passions that catapult us to success.  Do you let obstacles in challenges get in your way or are you fully committed and dedicated to your cause? Weak motivation is often a key crippling factor that stands between you and success. Ask yourself: Do my financial goals have deep meaning to me or are they generic impersonal goals?

Win Factor #3: Focus – Let’s face it: in a world of emails, phone calls, Twitter, Facebook, IMs, texting, and so on, so many items are competing for our attention.  It’s easy to develop A-D-D!  You may say, “I Don’t Have A.D.D., I just… Hey look! A squirrel!” You could be In denial that you have Attention Deficit Disorder or maybe it’s not that severe, but still you let “life” get in the way. Do you focus on what’s most important and the key activities you need to accomplish in your financial life to be successful?   Ask yourself: Will I focus only on those things that will make me financially successful or will I allow each crisis to consume me?

Win Factor #4: Emotional Balance – Successful people adjust their emotions to remain balanced during the highs and lows that come along.  They tune out negative thoughts and focus on what they can control. Focus on what you CAN do, instead of what you CAN’T do! Ask yourself: Will I allow emotions like greed and fear to influence my decisions or will I instead focus on making sound financial decisions?

Win Factor #5: Memory – Our past can either be helpful or harmful.  Failure and past mistakes can either consume us or build character and become “teaching moments”.  Those who are financially successful learn from past mistakes and don’t let previous failures hold them back. Ask yourself:  Will I make progress financially, view the past as useful history and now look to the future?

Win Factor #6: Resilience –How we react during the bad times is more important than what we do during the good.  It’s easy to stay on track when things are going according to plan.  The bumpy roads of life often create quitters. Those who succeed get knocked down but they get back up again -more times than most people. They embrace failure because it means they are one step closer to success.  When Thomas Edison was asked about how he viewed all his failed attempts to invent the light bulb. He responded, “I have not failed. I’ve just found 10,000 ways that won’t work.” Ask yourself: At what point will I give up or will I press on no matter what the cost?

Win Factor #7: Adaptability – Those who succeed are willing to change and not set in their ways. Apple Computer revolutionized how we listen to music with one device – the Ipod, Netflix changed how we watch movies.  Ask yourself: what small, incremental, and big changes can I make today that will positively affect my future?

Win Factor #8: Brain Care – We all know proper sleep, regularly exercising, and eating right, are the keys to proper health.  Yet, we look for “magic diet pills”, “radical diets” and a host of weird solutions that will instantly erase years of overeating and under-exercising.  The fact remains if you want to improve something, it takes time, hard work, commitment and  new habits! Ask yourself: will I spend time educating myself, learning more about proper financial solutions, and regularly spend time reviewing my financial plans?

How did you do?  Are you a winner?

Have you ever done something you regretted? Maybe you said something you wished you could take back or you made a mistake and wished you could go back in time for a do over.  Are you bitter about your past financial mistakes?  Do you regret some of the financial choices you made?

I am sure someday, Cleveland Cavaliers owner Dan Gilbert will have one of those regret moments. What a bonehead! Like a bitter 13 year old boy mad at his girlfriend for breaking up with him to go out with another guy, yesterday Dan sent a pathetic letter to Cleveland fans.  Did he get a second opinion BEFORE sending this?  If so, they should be FIRED!!!

Here is a sample:
“Dear Cleveland, All Of Northeast Ohio and Cleveland Cavaliers Supporters Wherever You May Be Tonight;

As you now know, our former hero, who grew up in the very region that he deserted this evening, is no longer a Cleveland Cavalier.

This was announced with a several day, narcissistic, self-promotional build-up culminating with a national TV special of his “decision” unlike anything ever “witnessed” in the history of sports and probably the history of entertainment. ”

Bitter isn’t better!

I could go on but it only gets more pathetic from here. Talk about poor leadership coming from the majority owner. He even goes on about how Cleveland will get revenge. I sure hope the letter was intended to “lighten” the  mood in Cleveland. But given that the fan favorite/NBA superstar just took the fast road out of Ohio, I highly doubt it!  Dan should have paid more attention to damage control and less attention to childish banter.  What happened to customer service?  Is the customer still always right? Fans are likely disappointed and upset…  It also shows that no matter how much money you have, you can still act like a child!   What are your thoughts?

Help…I surrender!

When it comes to spending, people often become their own worst enemies by following pooradvice, making bad decisions, and backing themselves into a corner. After all, isn’t that today’s American way of life—live, spend, and die broke? The American Dream has turned into the American Nightmare for many families. You can either learn to master your money or become a slave to it. Which would you rather be: slave or master?

Many people don’t choose to become slaves to money, but it occurs because of their spending habits. Think about your spending habits. Are you using your resources wisely or do you spend money like there is no tomorrow? For many, money burns a hole in their pockets. How often do you go out and spend money on an impulse, leading to buyer’s remorse?

How many things are in your garage or basement that you at one time just had to have and now sit around collecting dust? Instead of buying dust collectors, what if money w as used wisely? I know there will be times when spending gets off track, but with a plan and some focus, you can minimize the damage.

Today, many people live beyond their means. Often people buy things they don’t need to impress people they don’t even like. Most people would agree that they have overspent on occasion but do not fall victim to impulsive or compulsive shopping. There are others who cannot say the same thing.

Do you have a plan?

Put pen to paper and write down whatever you, your family, and the Lord decide is appropriate in every budget category (housing, transportation, food, entertainment, medical, clothing, etc.) Why? Because, having no written plan is the same as having no plan.

According to God’s Word, not to plan is slothful. God wants you to be disciplined, organized, and yet not legalistic. One way to become disciplined and organized in your planning, especially in budget planning, is to write down your plans.  Too many play “god” and get in His way!  They fail to identify needs versus wants and fly by the seat of their pants!

Well thought out, prayed over and written down plans help strike a balance between slothfulness and legalism.

Identify your needs, wants and desires.

Let’s add some definitions to start:

Needs: are the basic material necessities of life. Needs are the minimum amounts it takes to provide housing, food, clothing, medical care, etc.

Wants: cover the same budget categories but at a higher quality or quantity level.

Desires: cover the same budgeting areas but at a level where price is no object.

Perhaps God is providing the resources to live at the wants level. If so, and the resources are available to stay at this level, great. Sometimes, after all your obligations have been met, you can use some of your surplus funds to reach for some of your desires. Many times God will give you the desires of your heart. Once you identify your needs, wants, and desires it will be much easier to change your lifestyle if you have a hard time paying your bills. It is hard to cut much from the needs level. It can be easier to move from wants to needs or from desires to wants or needs.

TAX THE RICH TO PAY FOR HEALTH CARE?

That’s part of the plan. How will you be affected?

In 2013, wealthy Americans will pay extra Medicare taxes. Congress, President Obama and the IRS are putting a surcharge on the wealthy to help fund the health care reforms.

• Beginning in 2013, joint filers with adjusted gross incomes of $250,000 or greater and single filers with AGI of $200,000 or greater will have to pay 0.9% extra in FICA taxes (that is, Social Security and Medicare taxes). The employers of these taxpayers face no such increase.
• Also, joint filers with modified adjusted gross income (MAGI) of $250,000 or more and single filers with MAGI of $200,000 or more will be docked with a 3.8% tax on investment income. (Even estates and trusts will be subject to this new 3.8% levy.)

What might the dollar impact be? The Tax Foundation, a politically conservative watchdog organization, thinks that the richest 1% of American families will pay an average of $52,000 more in federal taxes by 2016.

What are the chances of these tax hikes being repealed? Think slim and none. Basically, you’d have to repeal the health care reforms to make it happen.

How can you avoid the 3.8% tax on dividends, capital gains & interest? It won’t be easy. Real estate investors may luck out the most, because federal law characterizes rental income as “active” rather than “passive”. On the other hand, if you sell a home you’ve owned for decades and see a taxable gain above the home sale exclusion ($250,000 single, $500,000 married), you’ll face the 3.8% tax.

Some forms of unearned income won’t be slapped with the tax. IRA distributions and income distributions from 401(a), 403(b) and 457(b) plans will be exempt. The same goes for pension income and Social Security income. Annuities that are part of a pension plan will be exempt. Any income from a business that you participate in won’t be hit with the 3.8% tax. Veterans’ benefits, life insurance payouts and interest earned by municipal bonds will also be spared.

As a result of this tax, you might start to see subtle shifts in financial strategy. You might see more muni bond purchases, more interest in life insurance, and more installment sales. As qualified Roth IRA distributions don’t boost AGI, you might be looking at another factor promoting Roth IRA conversions.³ Everybody will think about taking some capital gains prior to 2013.

The richest Americans have paid less tax in recent decades. Wealth for the Common Good (a liberal non-profit looking at this matter) notes that in 1955, the 400 largest incomes in America paid 51.2% of those incomes back in federal taxes. That led to the “tax shelters” of the 1960s and 1970s. In comparison, the top 400 incomes in America in 2007 paid out only an average of 16.6% in federal taxes.

So how can you reduce your taxes in 2013? It is not too early to think about it. You might want to devote a planning session to this topic, or start to read up on your options.

Find true wealth
Find true wealth by putting God first in your life. Give all things to Him. Hold your wealth in your open hands and give it all to God. Don’t put your trust in worldly wealth. Hard-earned wealth can disappear overnight as economic bubbles burst, companies go bankrupt, and housing markets collapse. Be careful where you place your trust.

C. S. Lewis once said, ―All that is not of eternal use, is eternally useless.‖ This is completely the point of true wealth. It has an eternal purpose. It has a foundation in faith, love, and God. Do you love people and use things or use people and love things? The driving force for accumulating true wealth is to advance God’s kingdom.  Check out www.thriveinyourlife.com

Thrive in your life

Who needs your help? When you look past your self-interests and seek to bring joy to others, God will bring joy to your life. It is more joyous to give than to receive. Make a commitment to live a simple life and use your wealth to support worthy causes. Until you get your priorities straight and focus on the truly important things in life, it will be nearly impossible to put principles before profits.

Once you align yourself with God and place Him first, you will often be ready to make two important mind shifts:

1. You will begin to care more about where you invest His money.
2. You will look for ways to multiply His money to help more of His people.

By pursuing these two philosophies, you place God first and break the stronghold of materialism. Place principles before profits and focus on people rather than things. This is an important step in the journey toward true wealth.