MoneyWalk 73: Diversification Is Good

This program will help you undo financial bondage.

The bible says there is safety in the multitude of counselors and that you should give a portion to seven or eight. This is sound instructions from the mind of God because He knows that the future on occasion will include economic downturns. He loves us so much that He guides us to live by the right principles that help us avoid upheaval or overcome it.

When you own stocks, bonds, and company issued investments, you risk the possible loss of the entire investment or having to wait behind other classes of investors in order to receive a small amount on the dollars you invested if a company behind the investment that you own goes bankrupt. This is not a usual happenstance and this happening to one investment doesn't mean that all investment vehicles of the same type are bad. However, the risk of this being extremely devastating for your life is multiplied immensely when all your savings and investments are in one account. Thus, no one should put all the money entrusted to him or her in one investment, one financial institution, or with one advisor.

You should diversify your assets among various investment vehicles based on your personal risk tolerance, the future date you intend to use the money, and positive long, medium, and short-term history of returns of different stock, bond, and fixed-income investment vehicles. Do not put money into any instrument that doesn't have a good long-term history of profits. Savings should generally be put in vehicles where the principle is safest and the account earns a competitive amount of periodic interest. Investments may be put into vehicles that carry some amount of risk of loss of principle that is offset by the possibility of earning higher long-term returns.

Your allocation of investment money should place more of it in vehicles that provide better protection for more of your principle as you get older because as you get older you cannot usually afford to lose great amounts of your money and you may not have time to let the markets work in order to re-grow your assets to adequate levels after a market decline.

One of your major investments should be to tithe and give an abundant offering to your local church and other ministries from the income God provides for the purpose of spreading the gospel in expectation of Jesus return for His saints. This is your greatest investment while on earth, which has an eternally positive effect for you and many others who come into the kingdom as a result of your giving. After all, any mental or physical ability that allows you to earn or receive income of any kind indeed originates from God and could not be obtained without Him endowing you with such intellect, skill, etc.

In your faith walk, you should take prudent risk which requires godly vision to help carry out your earthly purpose and diversification in the area of saving and investing. I recommend managing your lifestyle and money in a manner that allows you to save and invest a portion of your income equal to a tithe and offering. Such an amount when consistently invested over several decades in a diversified manner with the discipline to forego pulling it out except in extreme emergencies has been shown to provide the kind of wealth that people need to help weather economic storms and provide for them in their latter years.

Please email any questions and pray for this ministry. May God bless you richly as you follow His plan!!!

Proverbs 11:14, Ecclesiastes 11:2, Luke 19:13, Acts 6:2-3

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