This program will help you undo financial bondage.
You should
separate savings and investments into several different accounts with different
money managers. This diversification greatly reduces the risk that catastrophes,
world events, theft, or mismanagement by others will destroy all you have
available. For safety’s sake, most people should pick large known brokerage
houses (Vanguard, TIAA CREF, Fidelity, Charles Schwab, etc.) no-load low-expense
broad market U.S. stock index mutual funds as a foundation for your investment
portfolio. This will most often represent the largest portion of your money unless
real estate holdings or some other reputable alternative investment overtakes
it later. You should invest long-term without allowing emotions or greed to lead
you into bad decisions.
You need the safety
of growth and diversification to build a sizeable investment portfolio from
which you can withdraw future income to augment pension and social security
income to help meet household and retirement needs. For
savings, no matter the purpose (emergency fund or reserve fund for contemplated
future purchases), you should as much as possible use high-yield savings
accounts guaranteed by NCUA, FDIC, or SIPC. The utmost safety and ability to
withdraw the whole amount at any time is what you need when you want to make
the planned purchase or if you encounter an emergency like an uncovered medical
expense, layoff, extended unemployment, etc.
Don’t let any bank or credit union hold more than
$250,000 of your money, except married couples could expand that to $500,000, because
this is the maximum amount FDIC and NCUA guarantee, no matter the number of
different accounts your money is separated into within one institution. The SIPC insures
equity and bond type investment accounts for up to $500,000 against loss caused
by mismanagement, malfeasance, theft, and some other situations but it does not
guarantee you will not lose principle based on market swings at any given time.
Therefore, it’s wise to only put in each investment account the maximum amount
that a reputable securities investment guarantor agency like SIPC would pay for
malfeasance, etc. However, there will come a time when you have accumulated so
much investment money that it would be hard to separate into small portions for
guarantee purposes. In such instances diversification (into at least 7 or 8
investments) would save you from losing everything when the market goes
down or an investment manager engages in nefarious, money-losing activities.
Putting all money
the Lord entrusts to you into one account leaves you vulnerable to losing all
your money if that financial institution / business becomes bankrupt. Financial
troubles at that one company, whether temporary or permanent, could lose all
the money or render you unable to draw a portion of it from the account when
you really need it during an emergency. Certainly, you should study to become
financially literate to understand how you can best invest your money based on
a reasonable risk / reward tolerance. Augment your study by spreading savings
and investments into different instruments to avoid the problem of losing
everything in one fell swoop. It’s very unlikely every company holding the
money could be in financial trouble at the same time. Therefore, it’s best to diversify
so you’re not in a position to lose everything or large chunks of money because
you had all your eggs in one or two baskets. This principle of diversification
may not help you get the absolute highest return on your money, but it will
keep you from losing everything when the world is experiencing a sour economy
or you encounter a bad investment manager. By investing the largest portion of
your investment money in stock index mutual funds you’ll reap far higher
returns over the long haul of your future than you would if you put all of it in
bond or fixed income investments.
Genesis 13:2-6,
Job 42:12, Ecclesiastes 11:2, Luke 19:1-8, Acts 4:34-37
Please
pray for this ministry and email questions to parlor@ameritech.net
and share the links below with others who need guidance. May the LORD bless you
richly as you follow His plan!
Share https://kminfo.org/ministries/financial-freedom
weekly with family and
friends so these bondage-breaking articles and other financial information can
help them gain helpful insight! @everyone
The
book at the link below provides principles and practical steps that help you
use the Power to Get Wealth. By 1992, we had $135,000 of debt and
negative $35,000 net worth. Financial bondage and turmoil led me to seek
principles and a process for employing good stewardship. As a result, we became
constructively debt-free in 1998, mortgage free January 2004, millionaires in
2012, multi-millionaires shortly thereafter, and retired in 2018 in my
mid-fifties from public servant jobs while giving abundantly to fund the gospel
of our LORD Jesus Christ. The same power is available to you!
You can find books authored by Randy and
Karen Parlor at www.Amazon.com.
You can also connect with Randy Parlor on Facebook, Twitter, LinkedIn, Instagram, Google Blogger, WordPress, Pinterest, TikTok, Tumbler, and You Tube.
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