Sunday, January 26, 2020
MoneyWalk 34 The Right Attitude For Stewardship
The bible shows that every person should follow processes based on practical principles performed with the right motive, purpose, and reverence for the LORD that make him/her fruitful and cause multiplication of things in life He entrusts to him/her, including finances. This allows him / her to produce wealth for Kingdom purposes (including caring for oneself and family), which is a good thing that should be welcomed by all believers.
Surely, there are some very rich and wealthy Christians who love God as much as the poor and middle class love Him. The fact that they often live in more expensive earthly housing, cars, and such is no reason for anyone to demean their contribution to society in providing pathways to employment and greater income earning opportunities. In every generation God has had very rich men and women who loved Him and were intent on fulfilling His will in life, including entrepreneurship, employment, and relationships (Abraham, Isaac, Jacob, David, Josiah, well-to-do Shunammite woman, Esther, Joseph of Arimathea, Lydia, Tabitha (Dorcas), etc.). In each of their time periods there were poor people who struggled, yet the bible does not command rich people as a whole to forsake wealth building. Rather, it instructs them to be generous and create opportunities, like gleaning fields, that the poor can utilize as pathways to provide for immediate needs and learn skills that help them build future prosperity.
Those who are rich on this Earth should never lose empathy for the plight of the poor and should at all times use a great measure of their wealth to help lift them out of poverty. However, they should never feel ashamed, sinful, unrighteous, unholy, or out of God's will for having been used by God to build wealth when they do it in a way that pleases Him (according to biblical principles with guidance from the Holy Spirit). In this regard, everyone should be humble, meek, and attentive to His voice in every decision we make. In the same way, those currently poor or middle-income are also greatly loved by God and should not feel ashamed as long as they also listen to the Holy Spirit and seek to move forward in good stewardship that orders their lives and activities, including finances, in ways the bible describes as fruitful.
Those who build great businesses employ the bulk of people around the world. They serve best by living in that spiritual calling using skills, abilities, and assets to help as many people as possible be fruitful for the benefit of the Kingdom of God, their families, and neighbors. No one pleases the LORD when they mistreat others, operate in selfishness, or make money and possessions their idols (the love of their lives). Everyone should seek His instruction and guidance, so all of life, including finance, is used to help everyone around them be fruitful, take dominion over the Earth, and multiply.
Please pray for this ministry, email me with any questions, and contact me to speak at your business or ministry conference or workshop. May the LORD bless you richly as you follow His plan!
Proverbs 11:14, Ecclesiastes 11:2, Matthew 25:14, Luke 19:13
Please forward these bondage-breaking articles to other people who can use helpful insight!
You can find books authored by Randy Parlor and Karen Parlor at
https://www.amazon.com/s?k=Randy+Parlor&i=stripbooks&dc&qid=1573343045&ref=sr_nr_i_1
https://www.amazon.com/s?k=Karen+Parlor&i=stripbooks&ref=nb_sb_noss
You can find many other MoneyWalk articles on Facebook at https://www.facebook.com/randy.parlor by viewing Notes in the More menu on the right side of the computer screen
You can connect with Randy Parlor on
https://twitter.com/RandyParlor
https://www.linkedin.com/in/randyparlor/
You can also view and/or listen to MoneyWalk articles at https://www.youtube.com/channel/UCXnztOIesOKIrSd_H6c-8mQ
Thursday, January 23, 2020
Monday, January 20, 2020
MoneyWalk 33 Diversify Assets Part 4
Mutual funds provide broad diversification among stocks and/or bonds. Invest in those that have a good reputation, historical re-turns that match or beat the market, and that have a low expense ratio (less than one-half of one percent). Checking data is less difficult for mutual funds than for any other type of investment. The Securities & Exchange Commission and/or your state securi-ties regulator can let you know if the brokerage house and par-ticular funds offered are reputable. A prospectus for potential in-vestors should be available for each fund that displays one-year, five-year, ten-year, and lifetime average annual returns, the ex-pense ratio, and other information to help you determine if it is suitable for your investment portfolio.
An equal proportion of large, medium, and small cap no-load low-expense index mutual funds whose past returns track with those particular portions of the market is usually a great choice for one’s portfolio. Together they will provide you with a long-term average annual return that is commensurate with overall stock market returns for these categories of businesses. We became wealthy utilizing an allocation that is approximately 75% stock mutual funds and 25% bond / fixed income / real estate mutual funds. Every year, we make sure our funds returns are commensurate with returns of the appropriate index and have found the ones available to us have met that standard.
Past returns are no guarantee of future returns and you may from time to time lose money. Yet, long-term historical returns for the market, its sectors, and particular funds are one of the best indicators of what is likely to happen over the long-term (especially for index funds of which the portfolio array and management objectives remain the same year upon year). History has shown that the broad stock market has experienced growth in every twenty consecutive year holding pattern, in the vast majority of 10-year holding patterns, that growth is produced in more than three out of every four calendar years, and eighteen months is roughly the average length of time it takes a market downturn to correct itself and go higher than its high before the downturn occurred.
Though funds values are shown based on dollar amounts, it is important to note that you are not investing in dollars, rather you are investing in businesses and the ability of businesses to produce profits, which has been shown to occur throughout history. The purchasing power of a dollar that is only saved at low interest rates decreases based upon the inflation rate. However, average annual stock and bond market returns are five to six times higher than inflation, so the dollar value of the investment greatly appreciates over many years to immunize you against the depreciating effect of inflation. Also, note every other type of vehicle in which you can invest is also measured by a dollar value (or currency in your nation) and, with very few exceptions, they must be converted to dollars (or your national currency) in order to pay mortgages, landlords, grocery stores, farmers markets, car dealerships, and any other merchants.
There are other investment arenas that could lead to wealth but generally a very small proportion of the population experience such effects (usually two percent or less of those who try them). Ownership in businesses and lending for business pursuits (equivalent to stock and bond market investments) has been the top investment arena for building wealth for many generations throughout history and arguably for a far larger proportion of the population (pretty much anyone) who will adhere to long-term (10 years or more), buy-and-hold investing where they do not let emotions (jitters) lead them to buy at high prices and sell at lower prices because of short-term market downturns. Engaging this long-term practice helps discipline you to living below your means and eliminating debt-burden lifestyles, so you can continue the wealth building pattern, and it builds great passive income vehicles from which you can later draw enormous cash flow without having to dip into principle you invested.
There have been many instances where people invested 10% of their income or more during many of their active working years (via this simplistic process), and were able to draw more passive annual income from investments than they earned annually during active working years. Don’t have an eye to get-rich-quick because scripture instructs that steady plodding produces success. Follow the LORD’s instructions to give abundantly, eliminate debt, invest a reasonable portion of His estate entrusted to you, and diversify and your actions will mesh with His desire that you prosper to be a blessing to your family and many others.
Please pray for this ministry, email me with any questions, and contact me to speak at your business or ministry conference or workshop. May the LORD bless you richly as you follow His plan!
Proverbs 11:14, Ecclesiastes 11:2, Matthew 25:14, Luke 19:13
Please forward these bondage-breaking articles to other people who can use helpful insight!
You can find books authored by Randy Parlor and Karen Parlor at
https://www.amazon.com/s?k=Randy+Parlor&i=stripbooks&dc&qid=1573343045&ref=sr_nr_i_1
https://www.amazon.com/s?k=Karen+Parlor&i=stripbooks&ref=nb_sb_noss
You can find many other MoneyWalk articles on Facebook at https://www.facebook.com/randy.parlor by viewing Notes in the More menu on the right side of the computer screen
You can connect with Randy Parlor on
https://twitter.com/RandyParlor
https://www.linkedin.com/in/randyparlor/
You can also view and/or listen to MoneyWalk articles at https://www.youtube.com/channel/UCXnztOIesOKIrSd_H6c-8mQ
Wednesday, January 15, 2020
Sunday, January 12, 2020
MoneyWalk 32 Diversify Assets Part 3
The benefit to using federally regulated 401k, 403b, and 457 investment plans offered by your employer is that a portion of your earned income can be placed in these plans on a tax-deferred basis. This allows workers to invest about one-third more than they could have otherwise invested in non-tax-deferred plans offered by other financial institutions. Federal law allows employers to let you invest thousands annually in each plan. You would pay no income taxes on this money until you withdraw it from the account. This gives a greater amount of money the opportunity to experience great compound growth over a few decades of investing, which is usually far better than earning the same percentage growth on a far smaller amount of dollars deposited in a non-tax-deferred plan.
These accounts generally include an array of investment choices such as stock, bond, and fixed-interest funds. In most plans you can select a variety of vehicles that allow you to diversify deposits and accumulations. Many employers will match your investment to a certain maximum level like $2,000 annually or 6% of annual pay. This is free money you won’t get until you invest through these plans. After you build your initial $1,000 emergency fund, it is usually best to get the employer match no matter where you are in the Seven Steps process, unless you cannot possibly pay off your debt within the next year or two by reducing unnecessary expenses or by initiating additional income via second jobs or entrepreneurial endeavors.
A two-dollar match for each dollar deposited gives you an automatic 200% return on your deposit. A dollar match for each dollar deposited gives you 100% return on your deposits, a fifty-cent match for each dollar deposited gives you a 50% return, and a twenty-five cent for each dollar deposited gives you a 25% return. Over the period of investing, this provides for growth on matched dollars that is far greater than you can get from non-matched dollars.
Until you eliminate all non-mortgage debt it is usually best you do not put in these accounts more than the amount necessary to get the employer’s maximum match. Thus, all other disposable dollars can be put toward debt elimination, which will save you from consequences of having loan finance charges that continually far exceed what you could earn in the investment markets, such as debt bondage that:
*Makes you eventually stop investment deposits.
*Causes you to take out loans and/or withdrawals from the account before you retire (for which you might pay extra taxes and a penalty) to try and pay crushing debts and monthly household expenses.
*Severely disrupts or eliminates your ability to build wealth for retirement years, future endeavors, and abundant giving.
*Makes you have to work many more years than you really wanted at jobs you no longer have passion for, because you have not built a sufficient nest egg to live comfortably without an employer dictating your efforts, time spent, and earning power.
*Puts you in the position of living in poverty in your senior years.
You will pay an ordinary income tax rate and 10% penalty for early withdrawal before 59.5 years of age, So, it is costly to withdraw money from the plans. This should keep you from squandering money put in during earning years so you have a chance at building wealth needed to maintain abundant giving, a comfortable lifestyle during retirement, and future entrepreneurial endeavors. Most plans allow you to take a loan against your account up to approximately $50,000 or 50% of your accumulation, whichever is smaller. A downside to doing this is, within five years, you must pay off the loan using after tax dollars and that money will be taxed again when you withdraw it in future years (which means you’re taxed twice for the same money). Also, if you lose your job or are laid off then you must immediately repay the loan or it becomes income to you and at tax filing time you will have to add it to your income and pay taxes and penalty on it.
In both the withdrawal and loan scenarios, for decades, you lose compound growth on the money borrowed that likely would have provided far greater wealth accumulation if the money was left in the account. Unfortunately, about 50% of account holders withdraw and/or borrow from their accounts and some do so several times during their working years. This seems to be one reason why many accounts show meager investment accumulations for many people 55 years and older.
Let’s correct this shortcoming by adhering to the scriptural principle that shows believers continually engage a pattern of investing for growth, which allows them to continually give abundantly and carry out the purposes to which the LORD calls them. Remember, a wise man builds and maintains treasuries, whereas a foolish man spends everything he gets.
Please pray for this ministry, email me with any questions, and contact me to speak at your business or ministry conference or workshop. May the LORD bless you richly as you follow His plan!
Proverbs 11:14, Ecclesiastes 11:2, Matthew 25:14, Luke 19:13
Please forward these bondage-breaking articles to other people who can use helpful insight!
You can find books authored by Randy Parlor and Karen Parlor at
https://www.amazon.com/s?k=Randy+Parlor&i=stripbooks&dc&qid=1573343045&ref=sr_nr_i_1
https://www.amazon.com/s?k=Karen+Parlor&i=stripbooks&ref=nb_sb_noss
You can find many other MoneyWalk articles on Facebook at https://www.facebook.com/randy.parlor by viewing Notes in the More menu on the right side of the computer screen
You can connect with Randy Parlor on
https://twitter.com/RandyParlor
https://www.linkedin.com/in/randyparlor/
You can also view and/or listen to MoneyWalk articles at https://www.youtube.com/channel/UCXnztOIesOKIrSd_H6c-8mQ
Wednesday, January 8, 2020
Sunday, January 5, 2020
MoneyWalk 31 Diversify Assets Part 2
The bible contains a principle for spreading your risk. Proverbs 11:14 shows there's safety in the multitude of counselors. Ecclesiastes 11:2 shows you should give a portion to seven or eight to handle future troubles and costs that will arise. Matthew 25:15 shows the Master giving different amounts of money for investment to three different servants according to their different abilities. Luke 19:13 shows Him giving the same amount of money to ten different servants.
Scripture guides, encourages, and motivates each person to diversify talent, mind, time, and money in order to get the most out of them and to help protect against inevitable emergencies and catastrophes that will take place in life. Jesus diversified by choosing twelve very different men with different traits and talents who would work together to share the gospel with the world. One chose to follow the tempting of satan who thought he would be the inevitable emergency / catastrophe to destroy the investment Father God made to establish the only pathway to salvation and eternal life. This did not destroy the plan because remainder went on to become ministers investing gospel seeds in every region of the world they could reach. The safety of mission and huge return that continues to be harvested from Jesus starting with an investment in twelve different men and then incorporating every believer into communicating and living according to the gospel resulted in almost half the people currently on earth naming Jesus Christ as Savior and LORD.
The diversification principle also applies to the financial stewardship arena leading you to invest through several different financial institutions, brokerage houses, or financial advisors. Brokerage accounts, 401k’s, 403b’s, IRA’s, Roth’s, etc. give you a low-cost way to invest in several different vehicles such as company stock, bond, and REIT mutual funds. Many institutions no longer require big deposits to open accounts and you can often invest as little as $25 per month or paycheck and automate regularly scheduled investment deposits via your employer or bank / credit union. Also, for many people, these instruments allow investment that exceeds 25% of your gross annual income at the point you are situated to do so. You certainly will be able to invest more, and should be so inclined, once you eliminate all your non-mortgage debt and establish your $10,000+ emergency fund per steps two and three of my seven step plan.
Another form of diversification you should engage is to cover with insurance areas that traditionally bring major loss when uncovered by huge saving / investment funds or insurance, such as health, disability, long-term care, life (when you care for dependents), home, and automobiles. This greatly stops resulting liability for loss / costs from putting / keeping you in financial bondage and positions you to continue building wealth. It can also be rewarding to diversify (in a debt-free manner) into other vehicles such as real estate, gold, silver, and entrepreneurial endeavors that create increasing long-term value and passive streams of income. Be careful not to overdo it buying insurances or amounts thereof and warranties or investing in things that provide very little or no real benefit because this will impede your ability to build wealth, give abundantly, and serve in the way the LORD’s desires.
The benefits of employing diversification are (a) the LORD’s blessing and reward poured upon those who obey scriptural guidance, (b) Peace experienced by greatly reducing risk of total or majority investment loss during economic downturns or via unscrupulous institutions or financial advisors, and (c) Joy expe-rienced by allowing you to enjoy great long-term investment growth the market has historically displayed.
Please pray for this ministry, email me with any questions, and contact me to speak at your business or ministry conference or workshop. May the LORD bless you richly as you follow His plan!
Proverbs 11:14, Ecclesiastes 11:2, Matthew 25:14, Luke 19:13
Please forward these bondage-breaking articles to other people who can use helpful insight!
You can find books authored by Randy Parlor and Karen Parlor at
https://www.amazon.com/s?k=Randy+Parlor&i=stripbooks&dc&qid=1573343045&ref=sr_nr_i_1
https://www.amazon.com/s?k=Karen+Parlor&i=stripbooks&ref=nb_sb_noss
You can find many other MoneyWalk articles on Facebook at https://www.facebook.com/randy.parlor by viewing Notes in the More menu on the right side of the computer screen
You can connect with Randy Parlor on
https://twitter.com/RandyParlor
https://www.linkedin.com/in/randyparlor/
You can also view and/or listen to MoneyWalk articles at https://www.youtube.com/channel/UCXnztOIesOKIrSd_H6c-8mQ
