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Investing Is Biblical

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					                    Investing Is Biblical


…thou shalt lend unto many nations, and thou
 shalt not borrow.
                            – Deuteronomy 28:12b
• Biblical definition of investing is to lend.
                  Planning, Savings, &
                   Investing Is Biblical

Be thou diligent to know the state of thy
 flocks, and look well to thy herds.
                                 – Proverbs 27:23
There is treasure to be desired and oil in the
 dwelling of the wise; but a foolish man
 spendeth it up.
                                – Proverbs 21:20
Story of talents - Matthew 25:14-30
Know cost of tower - Luke 14:28
                  Investing Is Biblical

         Make Friends with Money

Make to yourselves friends of the mammon of
 unrighteousness.
                                     – Luke 16:9
Educate yourself in money matters.
                     Investing Is Biblical
                        Financial Goals

•   Giving 10% gross
•   Pay off debt
•   Save 5-20% of gross
•   Pay off mortgage
•   Lifestyle…self-funded ministry…cash car
•   Make a will
•   A goal is a statement of God’s will for me.
                         Investing Is Biblical
Parents                         You
Income rose 524%                34%
(age 20-30)
49 workers support 1 retiree    2.7 workers(2018)
Average age at death 63         90/95
Peak earnings after kids gone   still paying for kids
Homes appreciated greatly       0-3% per yr.
(Buy Your Second Home
   First)
Paid Debt with inflated $       1998 inflation 1.7%
                  Investing Is Biblical

Three plans for making a million by age 65,
  assuming the money ears 12% a year
• Age 25, start investing $59 a month
• Age 40, put $10,000 down AND
          invest $493 a month
• Age 50, put $50,000 down AND
          invest $1,540 a month
                 Investing Is Biblical

         Generational Numbers
       Boomers Aborted Retirement
          48 Million “Mature”
         81 Million “Boomers”
           38 Million “X-ers”

Previous Generation finances the retirement
           of present generation.
Investing Is Biblical
     Why retirement savings is low

Employers say
• Employees think can’t afford - 41%
• Lack of understanding - 16%
• Perceived lack of need - 14%
• Have other goals - 10%
• Incentives too low - 5%
• Don’t know - 8%
     Why retirement savings is low

Employees say
• Think they can’t afford it - 21%
• Not eligible for plan yet - 18%
• Prefer investing elsewhere - 12%
• Company doesn’t match - 9%
• Doesn’t like choices - 7%
• Don’t know - 25%
        Investing Is Biblical

      BEGIN
WITH THE NEXT PAY RAISE
                  Investing Is Biblical

•   401(K)
•   403(b)
•   ROTH IRA-no tax on earnings from IRA
•   IRA-no tax on contribution to IRA

            Vehicle for investment
             NOT the investment
                 Investing Is Biblical

            Current Contributions
• Pre-Tax Deferral Percent        7% of pay
• After-Tax Contribution Percent 0% of pay
• YTD Employee Contributions
                                  $2,308.56
• YTD Company Contributions
                                  $3,163.02
                 Investing Is Biblical

     Balances as of September 30, 1997

• Your Contributions Since 1/1/88 to
  REVSOP:                      $16,055.26
• Your Total REVSOP Balance:
                               $102,049.05
                        Investing Is Biblical
       Ways to invest IRA, 401(K), 403(b)
• Cash- CD, Money Market
• Annuity - contract with insurance co.
• Mutual Funds
  –   very conservative - money market
  –   conservative - money market, bonds, stocks
  –   moderate - income producing stocks, large cap stocks
  –   growth - large cap stocks, mid-cap stocks
  –   aggressive - small cap stocks
Investing Is Biblical
Investing Is Biblical
Understanding Risk
                 Investing Is Biblical

Rule of 72

    Divide 72 by rate of return =
      # of years to double money

        72 divide 18% = 4 years
        72 divide 15% = 4.8 years
          72 divide 12% = 6 years
               Investing Is Biblical

$130,000 -    4 yr    260,000   Age 40
         -    8 yr    520,000   Age 44
         -   12 yr 1,040,000    Age 48
         -   16 yr 2,080,000    Age 52
         -   20 yr 4,160,000    Age 56
         -   24 yr 8,320,000    Age 60
         -   28 yr 16,640,000   Age 64
                   Investing Is Biblical

                            98 3yr 5yr 10yr
Washington Mutual (5.75%)   18 24 22 18
1-800-421-4120
Am. Century Inc/Grth        27   29   23
1-800-345-2021
Legg-Mason Value            47 41     32   21
1-800-577-8589
Janus Twenty                75   43 30     26
1-800-525-8983
  Legg-Mason Value
$10,000 4/82-12/98
                Investing Is Biblical

       $1,000 Deposited Each Year
           End of Year Values
      5 yrs 10 yrs 15 yrs      20 yrs
18%   7,154 23,521 60,965 146,628
20%   7,442 25,959 72,035 186,688
22%   7,740 28,657 85,192 237,989
24%   8,048 31,643 100,815 303,601
                 Investing Is Biblical


$166 month automatic withdrawal =
          $2,000 per year

$332 month = $4,000 per year for two
                 Investing Is Biblical

Saving vs. Hoarding
Genesis 41:46-57 Joseph saved 20%
Luke 12:16-21 Rich man had to build
  bigger barns
How are these situations similar?
How are they different?
Why was God pleased with one, displeased
  with other?

				
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posted:3/22/2011
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