Life as a Christian is about sacrifice.  Christ showed us the ultimate example of sacrifice on the Cross. Nothing we could ever do would compare but we shouldn’t stop trying to sacrifice to help our families, the less fortunate, and advance His kingdom.  I am so glad for God’s mercy and grace. Are you?

On our personal journeys as we grow deeper in our faith, we often begin to sacrifice our selfish goals and desires to teach lessons to those we love most.  Kind of the same way God teaches us lessons because He loves us.  It brings to light: what are we willing to sacrifice for His glory and what are we willing to do to support and love our families?  Life is about setting a good example and passing wisdom to our children. It’s about steps we take to improve ourselves and grow closer to God.

I love hearing about the good side of the NFL.  In a day and age, where it’s common to hear about NFL players getting arrested, dying, gambling, killing dogs, cheating on their wives, involved in drugs, or other uncompromising situations. (I thought of way too many real life examples there).  Yet it’s very uncommon to hear the feel good stories.

Sacrifice in action

Take Ty Warren, defensive lineman from my team – the New England Patriots. He just announced he will be skipping the first round of his team’s voluntary offseason workouts to go back to Texas A&M in order to finish his degree.  He is giving up a $250,000 bonus in order to do this while sending a strong message to his three children: “education is important!”

“I try to put the kids in the best educational system possible and I think there is something to be said for their father, who has been blessed to play in the NFL and do something he’s loved to do, going back and finishing what he started. In the big picture, I think it’s important for me to do what I’m doing. I can sacrifice that bonus for that.”

Love that commitment and the sacrifice Ty is making for his family.  I don’t know where he stands spiritually, but he sure is sending a great, positive message to his children and children around the world.  Additionally, Ty went on to say no matter how much mony he makes he will always work hard:

“I’ve always been a working person. Ask anyone who knows me, I’ve been working and supporting my two siblings and now my own family since I was 13. No matter how much I have in the bank account, I’ll always work.”

Nothing is more important than God, your family, and your education/personal growth. What have you been willing to sacrifice for God and your family? I’d love to hear your story…

Another Great Article:

Also check out a great article from my friend Dwight Short on “Investors with a Moral Compass Doing Well”

Sometimes we get stuck!  We are going no where or worse we start heading in the wrong direction!  Whether it’s in our jobs, careers, spiritually, physically, maybe financially.  I talk to a ton of people who look at where they are today and are no further ahead than they were 5, 10, 15 or  even 20 years ago.  It reminds of the U2 song “Stuck in the Moment”:

“You’ve got to get yourself together
You’ve got stuck in a moment
And now you can’t get out of it
Don’t say that later will be better
Now you’re stuck in a moment

And you can’t get out of it”  - From U2 “Stuck in a Moment“

Too many were burned by advisor or lost money in the stock market or took a chance and got their heart broken.  Whatever setback that came, what did you learn?   Yes, there was pain.  Yes, it was real.  But growth happens through pain and certainly when we face setbacks.   But too many people let failure prevent them from moving forward.  They get “stuck in the moment”.

From Zero to Hero

If you look back through history, you will soon discover that some of the greatest breakthroughs came as a result of failure.   Michael Jordan, The Beatles, Walt Disney, Abraham Lincoln,  Thomas Edison, and even Dave Ramsey all had major failures before success came to them.

Michael Jordan, one of  the greatest basketball players of all time came close to quitting basketball after being cut from his high school team.  Instead of quitting, he focused on improving his skills and making the team the next year.  We know how that story goes…

The Beatles were rejected by Decca Records and essentially told that rock music was on its way out.  They were then rejected by Capitol Records.  Instead of giving up on their dreams, they pressed on and then sold millions of records.

Walt Disney was fired early in his career because he lacked imagination. Yet he turned that failure into one of the most famous  and creative companies in the world.

Thomas Edison was told as a child that he was too stupid to learn anything. Yet, he became one of the greatest inventors of all time and the founder of General Electric (GE).  It has been quoted that when Edison failed on 10,000 experiments to invent the electric light bulb, he said, “I have not failed. I’ve just found 10,000 ways that won’t work.”

Even today you can look at the success of Dave Ramsey or Dan Miller.  Both were down and out financially before creating prosperous businesses.

The point is this:  failure is an important ingredient to success. Without failure, big breakthroughs will not happen.  You get up, dust yourself off, and get “unstuck”.   Success may be right around the corner.  However if you give up, one thing’s for sure: it’s tough to move forward!   Let me know how I can help you…

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.

The 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?

Tug o’ War

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.   Here are some guidelines to balance faith and common sense:

1. To be good stewards.  It’s all on loan to us from God.  By learning about the various options that are available to us, we can make the best decisions.   Careful study, prayer, and education are necessary.  If you were buying a car would you buy the first one available?  Most people will do some research, compare features, options, and prices.  You would possible test drive various models and shop different dealers to select the right vehicle.  It involves many steps.   It is the same with investing.  There are several steps you need to take to educate yourself on all of the possibilities so that you can narrow in on the type that is most beneficial.   God expects us to be wise in the area of finance.  If we do not desire to do this, we are expected and commanded to seek wise counsel.  Like the thief who pleads ignorance, the judge will still sentence him as this is no defense.  We are called to do the best with the resources that God provides.
2. To learn to defer gratification. By saving and investing we are able to delay things that we want today in preparation for tomorrow.  This has been a real sore spot for many.  They wrestle with the faith versus reason battle.  The chicken or the egg?   If we do not save for our futures, we impose on someone or something which drains resources. We also  need to be careful that we are not so close to the edge that we blinding cry out “faith” when reason could solve the problem. At the same time, we cannot take God out of the picture and always claim reason.  By praying and carefully examining our options, we can begin to achieve the correct balance.  Delaying our immediate wants allows God to provide for our needs and prepare us for bigger things to come.
3. To provide for our family’s needs. (i.e.: college, a home, etc.) As a father, I have the tremendous pleasure of providing for my families, physical, mental, spiritual, and financial needs.  As the sole bread winner, Karen and I decided early in our marriage that when it came time to have children, she would stay at home with them.  This was a clear and easy decision to make.  We wanted that close relationship to be at home until the children went off to school.  As a provider of the family saving and investing allows for me to provide an adequate back-up plan for my premature demise.  I have faith that God would provide, but why drain resources when I can use the skills and resources God provides today to prepare for tomorrow.

Each of us has a calling. The Lord intends for us to fulfill a specific calling or purpose in His perfect time. You  have been uniquely created and have special physical, mental, and spiritual abilities.  Just like your unique fingerprints, you have unique characters and gift. You have no identical copy.  You have beauty beyond all compare. You have been called  by God for a specific task, and empowered with the necessary skills, aptitudes, and desires to accomplish His will.  Have you been listening and waiting for your next mission?

- Every calling from God is for a specific purpose (Ephesians 2:10)

- Christian or secular work can both be callings

God calls us in unique ways.  Do you think Moses asked for a burning bush experience? God communicates to you and me in completely different ways.  Each of us has a personal unique way, because God wants our experience with Him to be unique.  Have he been calling you to do something?  From a Biblical perspective, callings often come without specific details but require submission.

Once the Lord starts to reveal His will for us, our lives will be spiritually productive.  But what we need to allow the Lord to exercise His will in and through our lives.  Other calling principles are that, a calling can happen at any age, Moses was called at age 80, you may already be in your calling, in a business, but simply need a fresh view.

There are many men and women who are extraordinarily gifted in business, but who want to be involved in meaningful ministry.  Your business can be your ministry.  I speak to people every day finding ways to use their business in divine ways.

If you’re not sure of your calling, be faithful where you are.  If the Lord has not revealed your calling, prepare for you future by developing your character by investing time with Christ.  Bloom who you are, remember if we are faithful with today’s responsibilities, the Lord knows He can trust us with greater responsibilities.  He, who is faithful in a very little thing, is faithful also in much and he who is unrighteous in very little things is also unrighteous in much.  Luke 16-10.

As you know, I am a strong advocate of faith-based investing.   I believe it is essential that individuals invest with their convictions.  Your values should be at the center of your financial plan so why wouldn’t you also want to invest according to your values?

Eventide Gilead Fund continues to use values-based investing as a powerful means of outperformance. In fact, values-based screening–both negative and positive–is one of the five pillars of Eventide’s portfolio strategy for generating alpha. In 2009, this strategy led to a 46.1% return (95th percentile in alpha) while maintaining low volatility and low market correlation. Other components of our portfolio management process include dynamic fundamental analysis, technical analysis, a masters’ select strategy, and CAPM risk mitigation.

There has been considerable research that shows companies focused on creating real value by serving the needs of the customer, employee, and society — instead of profit at all cost perform better in the long term.

1. Research by Fred Reicheld of Bain Consulting concluded that ethically admirable companies have more sustained growth and are, therefore, better long-term investments. This research demonstrates the relationship of business ethics to business success: companies that seek first to create value for their customers rather than seeking profits at all costs are more profitable in the long run. (See the attached document titles Eventide_NPS).

2. Evidence of how ethics translate into positive financial performance can be seen in the Domini 400 socially-responsible index, which has outperformed the S&P500 by 0.73% annually over approximately 19 years. Launched in May 1990, the Domini 400 is the first benchmark index constructed using environmental, social and governance (ESG) factors. It is a widely recognized benchmark for measuring the impact of social and environmental screening on investment portfolios. The index is designed to reflect the way social investors select companies.Normally, about half the S&P 500 companies (250 stocks) are also constituents in the Domini 400. From May 1, 1990 to March 31, 2009, the Domini 400 has outperformed the S&P 500 by 0.73% annualized (7.74% compared to 7.01%).

3. Another evidence can be seen in the Credit Suisse Most Admired Portfolio, which examines the alpha-generating characteristics of a strategy based on Fortune magazine’s yearly Most Admired Companies list. Fortune has published its Top 10 list of most admired companies annually since 1983. Investing in these companies has offered a performance advantage over the S&P 100 benchmark. The strategy uses the past five Most Admired Companies lists to construct the current portfolio. Companies are assigned 2% of the current portfolio for each appearance in the Top 10 list over the past five years. In dollar terms, the most admired companies strategy produced over twice the return of the S&P 100 from 1983-2009. An investment of $100 in the portfolio would have grown to $2,544 versus $1,153 in the S&P 100. The strategy’s annualized return was 3.3% greater than that of the S&P 100.

“Does the song you sing have enough meaning? Inspire us to sing along? Does the song you sing keep echoing?  Inspire us to sing the song you sing?”

- From “The Song You Sing” from Creed

I was listening to this song the other day and the words grabbed my attention. It spoke to me because very few people sing a song worth singing… They hold back from living their ideal lives and miss the abundant blessings God had in store for them.

I talk with hundreds of people each week. Yet few are living their ideal life. Few people inspire me. I see a lot of people going through the motions – living for the moment yet no passion, no purpose, and no plan. I hear a lot of negativity, a ton of excuses, and a whole lot of reasons why it’s too difficult to succeed financially.

God wired each of us for a specific purpose as part of His plan. If you are still alive, God is not finished with you yet. He has a big plan for your life. Are you obediently waiting for your next mission? Or are you too busy living for yourself?

What is important to you?

What you invest your time, talent, and treasure in reflect your true priorities and what you truly deem important. I say show me a man’s checkbook and calendar and I can immediately see where his heart is. God said “where your treasure lies you heart lies also”. Are you building Kingdom wealth that will have eternal value or are you investing in earthly riches that “rust and moths will destroy”?

It all begins with a life theme. A mission that is so compelling that you will stop at nothing to succeed. Today, what is your life theme song? Have you found true meaning and purpose? Are you living it out each day inspiring others to buy into your vision? If not, what’s holding you back?

Depression? A lack of excitement? A safe job? Hopelessness? A lack of direction? Something is most likely getting in the way.

I saw a study recently that showed that if someone were to I saw a study recently that showed that if someone were to win the lottery, the likelihood that this person would continue working the same job was about 10 percent. Really? That low? Too many people are in it only for the money.

Yet 10 percent of the population loved what they do and would continue doing what they do despite having more than enough money. Are you in the 90 or 10 percent?

Maybe you have Stockholm Syndrome?

According to Wikipedia:

“The Stockholm syndrome is a term used to describe a paradoxical psychological phenomenon wherein hostages express adulation and have positive feelings towards their captors that appear irrational in light of the danger or risk endured by the victims.”

Are you lulled in by the dullness of your life? Have you allowed safety to become your top priority? What appears safe is often the riskiest thing you could do.

Being complacent you often miss God’s greatest blessings. Being too conservative with your investments you often lose purchasing power (inflation) and pay too much in taxes. Staying in a safe job often limits your God-given potential. Failing to live out your faith limits the opportunities God sends your way.

The Stockholm syndrome was named after a famous bank robbery that took place in Stockholm in August of 1973. The bank robbers held a host of bank employees hostage for six days. The victims then became emotionally attached to their captors. The hostages even refused to testify against the robbers and defended their illegal actions!

What is holding you captive? Are you justifying, making excuses for your lack of success? God does not want you to be poor. It does not make you more faithful. Wealth and success are morally neutral. It is your attitude that determines your motivations with money and success.

If you lack money and success you may not be singing a song with enough meaning. Chances are you are not inspiring others to sing along.

Keep seeking to develop your God given talents and gifts. Find a way to find more purpose and passion with everything you do: where you earn money, where you spend it, what causes you support, and where you invest.

Christ-follower involves risk.  It is the only way to grow. Get out of your comfort zone – get out of the boat and walk on water! Take that leap of faith God has been calling you to. Stop waiting! Seek to be a leader and help improve our world. You can make a difference!

At www.jayperoni.com,  www.faithbasedinvestor.com, and www.valuesfirstadvisors.com, we have the HUGE challenge of trying to stand out in the crowded financial services space.  How many ads do you see for financial services?  Between the mutual fund industry, big brokerage firms, banking, mortgages, financial planning, and insurance companies with million or even billion dollar advertising budgets, how can the small guy compete?  Right?  Why even try…

How did we respond to this challenge?
My partners and I talk about what we are most passionate about:  money, faith, and investing in companies we believe in!   Our bold, unapologetic message of “get closer to God through your finances and don’t support investments that oppose your values”  is catching steam!

We have very busy schedules, people calling and emailing us every single day, requesting appointments and help from us!  The past few months we have seen the impact of touching lives.  God is opening mighty doors so we can help more of His people!
1.  We have seen a huge rise in traffic to www.jayperoni.com and launched our new wealth training program.  We  will be running this program each month to train and equip individuals to grow closer to God and learn the keys to building wealth that will make an eternal difference.

2.  We have seen an increase in subscribers to our investment newsletter at www.faithbasedinvestor.com
Check out a review of our service here from one of our subscribers:
http://www.household-budget-made-easy.com/learn-to-invest-money.html

3. We have seen a HUGE influx of new clients and prospective clients seeking Biblical advice on
financial planning and investment services at www.valuesfirstadvisors.com

So why the success?

Here are five reasons I see:

1) God is blessing us!  By following His will He is opening the flood gates to reach more of His people.
2) We took a risk so big it only could only work if God was involved.
3) Our message is different from all the other competition.  Who else is talking about faith, money, supporting investments in line with morals?
4) The market is looking for what we have to offer but have not been aware that exists
5) We stand out in the crowd.  We have created marketing messages that tell people who we are and what we do. We know exactly who we are, who are ideal client is, and how to reach them.

So I ask you: how are you different?

As an entrepreneur, I see people coming to me for ideas every single day. I hear a whole lot of ideas but very few that inspire me.   If you are just like everyone else, why would anyone want to do business with you?

There are two coffee shops that recently opened in my new town.  One called “Perk Up”.  The coffee is mediocre, they offer Krispy Kreme Donuts, and a “Starbucks-ish” environment. Nothing exciting! No unique spin.  Their brand image is well…bland.  Unless I happen to be near that location and desperately need coffee, I won’t go out of my way to stop in.

“Joey Bag of Donuts”, on the other hand, has a “gangster” theme with a flashback to the “Sopranos”.  They look, feel, and act the part!  They have great coffee, about 50 kinds of ‘specialty donuts ranging from Cocoa Pebbles and cookies n’ cream donuts to your traditional donuts. I would go out of my way to come here.   My kids like an occasional “treat”

Who do you think will survive?  Who do think just created “buzz” – literally (beyond the buzz from their coffee)?

Want business?  Gain wisdom!

For those who are considering starting a business or already run one, if you missed my recent post on 12 characteristics of an ideal business, check them out!   They contain so much wisdom.  I have personally applied these to businesses and seen much success!

Go here to read

For those who are considering starting a business, I wanted to share something that has helped me immensely! These 12 characteristics of an ideal business contain so much wisdom!  I have personally applied these to businesses and seen much success!  They are from Richard Russell.  For those who don’t know Russell:  he began publishing Dow Theory Letters in 1958, and he has been writing the Letters ever since (never once having skipped a Letter). Dow Theory Letters is the oldest service continuously written by one person in the business.

Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron’s during the late-’50s through the ’90s. Through Barron’s and via word of mouth, he gained a wide following. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-’66 bull market. And almost to the day he called the bottom of the great 1972-’74 bear market, and the beginning of the great bull market which started in December 1974.

12 Characteristics of an Ideal Business

(1) The ideal business sells the world, rather than a single neighborhood or even a single city or state. In other words, it has an unlimited global market (and today this is more important than ever, since world markets have now opened up to an extent unparalleled in my lifetime). By the way, how many times have you seen a retail store that has been doing well for years — then another bigger and better retail store moves nearby, and it’s kaput for the first store.

(2) The ideal business offers a product which enjoys an “inelastic” demand. Inelastic refers to a product that people need or desire — almost regardless of price.

(3) The ideal business sells a product which cannot be easily substituted or copied. This means that the product is an original or at least it’s something that can be copyrighted or patented.

(4) The ideal business has minimal labor requirements (the fewer personnel, the better). Today’s example of this is the much-talked about “virtual corporation.” The virtual corporation may consist of an office with three executives, where literally all manufacturing and services are farmed out to other companies.

(5) The ideal business enjoys low overhead. It does not need an expensive location; it does not need large amounts of electricity, advertising, legal advice, high-priced employees, large inventory, etc.

(6) The ideal business does not require big cash outlays or major investments in equipment. In other words, it does not tie up your capital (incidentally, one of the major reasons for new-business failure is under-capitalization).

(7) The ideal business enjoys cash billings. In other words, it does not tie up your capital with lengthy or complex credit terms.

(8) The ideal business is relatively free of all kinds of government and industry regulations and strictures (and if you’re now in your own business, you most definitely know what I mean with this one).

(9) The ideal business is portable or easily moveable. This means that you can take your business (and yourself) anywhere you want — Nevada, Florida, Texas, Washington, S. Dakota (none have state income taxes) or hey, maybe even Monte Carlo or Switzerland or the south of France.

(10) Here’s a crucial one that’s often overlooked; the ideal business satisfies your intellectual (and often emotional) needs. There’s nothing like being fascinated with what you’re doing. When that happens, you’re not working, you’re having fun.

(11) The ideal business leaves you with free time. In other words, it doesn’t require your labor and attention 12, 16 or 18 hours a day (my lawyer wife, who leaves the house at 6:30 AM and comes home at 6:30 PM and often later, has been well aware of this one).

(12) Super-important: the ideal business is one in which your income is not limited by your personal output (lawyers and doctors have this problem). No, in the ideal business you can sell 10,000 customers as easily as you sell one (publishing is an example).

Use these 12 characteristics to see if you are operating an ideal business or about to start one!  How did you do?

Why do so many people struggle with money?  Why is it so difficult to get ahead in a time of such prosperity?  Why do the rich keep getting richer while the poor and middle class seem to continually struggle?

You see every day you make money choices that affect all areas of your life. Try going a full 24 hours without doing something that involves spending, receiving, giving, or investing money.  The truth remains so many people today, even with the 2008-9 economic collapse spend more than they make.  They live paycheck to paycheck and could be one missed payment from financial disaster.  This could be you.

Whether your finances are in dire straight or you just want a little fine tune up, I want to fatten your wallet so you can improve the quality of your life and have the time and money to help others. In order to do this, you need to win the battle.  What do I mean by battle?  This is the battle for your money. Retail stores, mortgage companies, credit card companies, auto loan companies, insurance companies, and investment firms (to name a few) are in the battle for every single one of your dollars. Overspend and they will take every dollar you earn and more…

You’ve sunk my battleship

In the game of Battleship, the object of the game is to sink your opponent’s entire fleet without him sinking your fleet first.  It is the same with the money game.  You either sink or swim.  With there being no shortage of companies fighting to win your money, only the warrior prepared for battle can win at the money game.  The credit card companies, banks, mortgage companies, insurance companies, and others all have one task at hand to win as much of your money as possible for as long as possible.  Read that line again “to win as much of your money as possible for as long as possible”.  They offer 0% financing, buy now pay later, extended payment terms, basically anything possible to get you to spend as much as you can and pay it back as slow as possible. My task is to give you the weapons and game strategies you need so the opponent doesn’t sink your battleship.

Let us not forget either, the other enemy: advertisers.  They want to create dissatisfaction in your life.  They solely aim to get you to upgrade, switch, and change, try their product, and capture your business for as long as humanly possible.  The average American is bombarded with thousands of advertisements every single day.  From billboards, Newspaper, magazine, TV and radio advertisements, online banners, email solicitations, the list goes on…  They all have one focus: capture your attention, create or solidify your perceived needs, and get you to pony up your hard-earned money.

Never show up to a gunfight with a knife

There’s an old saying, “Never show up to a gunfight with a knife.”  Your financial goals will require time and discipline.  There is no shortcut to success.  Getting in financial shape is a fight.  Gaining financial freedom is a battle.  While a fight may only be 12-15 rounds, it will be based on your desire to win.  You can get in better financial standing in as little as 12-15 months, but you should focus more on the long-term battle at hand: obtaining financial freedom.  This battle is a “must win” that will last years.  Of course your financial goal and current financial position will determine whether you are facing a fight or a battle.

Take a look at your current financial situation.  Is your outflow exceeding your inflow?  Do you have more assets (things you own) or more liabilities (things you owe)? How large the gap is between the two?  This will give you some indication as to whether you need boxing gloves or a machine gun.

If you are going to battle, would you march off without a battle plan?  How many wars have been won without a plan?  Unfortunately, many fly by the seat of their pants when it comes to financial planning.  They are more reactive than proactive.  It’s hard to gain position when you are constantly fighting an uphill battle.  The most important thing is to have a plan.  You must be prepared.  Part of that planning is recognizing or predicting in advance the obstacles and challenges you are very likely to face along the way.  Then create a strategy to offset the potential obstacles.  Though you will never alleviate or predict every challenge, you will however, be better prepared for unexpected bumps along the way. Start the fight today so you can fatten your wallet!

“No man is so foolish but he may sometimes give another good counsel, and no man so wise that he may not easily err if he takes no other counsel than his own. He that is taught only by himself has a fool for a master.”   —  Hunter S. Thompson

“He who represents himself has a fool for a client and an idiot for a lawyer.” – Old Legal Saying:

Are you a do-it yourselfer?

Many times we try to do things ourselves.    We either think we have enough skills or expertise to tackle daunting tasks or we don’t want to spend the money.  Whatever the reason, some things are best left to a professional.

Me, for example, I have discovered what I am good at and what requires professional assistance.  Take, household improvements or repairs, I learned very early on, that this is an area that requires help immediately.  After several “experiences” of making bigger problems out of small routine repairs, it is quite obvious this is an area where I lack gifts.  I can make a mountain out of a mole hill!  What starts out as a simple task to most turns into a big mess for me.  Believe me, it is not fun paying someone to not only fix the original problem, but also the new problems I have created.   Sometimes, even when we have the expertise, knowledge, or skills, we still need a sounding board to bounce ideas and receive wise counsel.

Smart in finances, needs help managing

Bill came into my office.   A middle aged CFO with over 25 years of financial experience, an MBA from a good school, and decades of investment experience.  The thorn in his side was his investment portfolio?   Himself!  Despite the schooling and book knowledge, Bill’s portfolio was a mess and nearly impossible to keep track of.  Like the weeds that took over the garden, Bill left his portfolio untamed.   Bill had “over diversified” his holdings.  He owned hundreds of stocks, mutual funds, and bonds. It would make a full-time job tracking, analyzing, and monitoring all of his positions.   Bill thought he knew what he was doing, but his results confirmed otherwise.  Like the surgeon is prohibited from performing surgery on family members, due to the emotional conflicts, Bill should have outsourced his own portfolio.

The biggest mistakes, most investors make is a lack of understanding risk.  Most investors who handle their own portfolios are too conservative or too aggressive.  Very rarely do they have the right mix.   The average do-it yourself investor experiences returns significantly lower than the markets and falls way short of the returns achieved by financial professionals.   A recent study showed that an average investor can trail an index by as much as 8% per year!

Questions to ponder:

What areas of your finances could you turn over to a professional?

Would God be proud of the way you are handling your portfolio?

What other areas of your life could you use wise counsel?

Two Proverbs:

Proverbs 15:22: “Plans fail for lack of counsel, but with many advisers they succeed.”

Proverbs 11:14: ^“For lack of guidance a nation falls, but many advisers make victory sure.”