Over the vast majority of 20 year periods, the stock market experienced greater growth than most other investment vehicle markets (bonds, fixed income, real estate, precious metals, etc.). The up and down swing of stock prices is much more volatile over shorter time periods (a few months or a few years) thus making them riskier during short time periods. By living off less than you make, honoring God with the tithe, establishing an emergency fund, and achieving total debt elimination and afterward putting at least ten percent of each paycheck in diversified investment vehicles, you will soon get to a point where you’re able to let and see much higher long-term stock market growth work for you without having to worry about the short-term risk of the market.
For sure, you will need a wise person or two from whom you seek guidance who will help you get control of your emotions by teaching you not to fear short term downward swings in the stock market. They know that when you move investment money to historically far lower growth vehicles each time you see a downward swing and have experienced what would be a short term loss you solidify that loss throughout your future. In addition, the money will continue to earn much lower growth over the long term as you worry about trying to find something you can be comfortable investing in in a high growth market at a later time. Most people never make the move back into the stock market because they continue to be afraid of risk that has historically been shown to take you higher and higher and provide far greater growth over long term periods. So they languish in low growth investments throughout their lives and cannot be as blessed and rewarded in the financial arena of their lives as the LORD would have them be. An abundant portion of what you lose out on by not taking the reasonable, historically reliable stock market risk could otherwise have been given into the Kingdom to lead people to Christ and disciple them, to take better care of yourself and family, and to pursue other worthwhile endeavors.
Certainly, you should avoid the risk of an undiversified stock market investment. If you invest in single stocks you should own a variety of at least eight solid ones and likely far more. Otherwise, you are going down the road of a get rich quick mentality and will likely suffer great loss over both short and long term periods and then put your tail between your legs and run away from the market never to return again. It is far better to invest in diversified no load, low expense stock index mutual funds like S&P 500, Large Cap, Mid Cap, Small Cap, and Total Stock Market offered by reputable brokerages such as Vanguard, Fidelity, TIAA-CREF, American Funds, etc. Investing a smaller portion into a diversified portfolio of other types of investment vehicle like real estate, bonds, entrepreneurial endeavors, etc. can augment your short term and long term growth plan and you might then find that one or more of them become a really big hit for your life.
When you employ this type of long term vision you’ll be able to give abundantly and live abundantly while keeping money invested over the long haul by virtue of the fact that your foresight in planning has helped you live debt-free so you continually have the funds to make such investments and reap the harvests they produce. A great portion of money will remain invested in the stock market until you expire and pass on to your heirs and the Church simply because your increasing prosperity will dictate that you don’t need to live off it. It takes long-term vision, knowledge of historical market returns, and confidence in the fact that Jesus chose you to be a steward over part of His resources in order for you to succeed at properly managing the income and assets He entrusts to you. You'll always be a good steward who prospers immensely when you follow this spiritual and financial roadmap.
Please pray for this ministry and email any questions. May the LORD bless you richly as you follow His plan!
Proverbs 11:14, 29:18, Ecclesiastes 11:2, Lamentations 2:9, Matthew 25:14-15, Luke 19:13
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