Christian Stewardship & PERSONAL FINANCIAL RESPONSIBILITY Presented by: Glenn Grevengoed

WHAT DOES A STEWARD LOOK LIKE? HOW DOES A STEWARD GO ABOUT MAKING FINANCIAL DECISIONS?

Who uses the word “Steward” anymore? Branch Manager Trustee Agent Caretaker

ACTS of Stewardship Acknowledge the Master Contentment in the Master Trust the Master Serve the Master

Acknowledge the Master “In all your ways acknowledge Him and He shall direct your path.” Proverbs 3:6a

MOSES – You may say to yourself, “My power and the strength of my hands have produced this wealth for me.” But remember the LORD your God, for it is he who gives you the ability to produce wealth… Deut. 8:17-18 JEREMIAH – With my great power and outstretched arm I made the earth and its people and the animals that are on it, and I give it to anyone I please. Jeremiah 27:5

Are there practical ways in which we can acknowledge Him? In what ways do we fail to acknowledge God?

A Steward Acknowledges that: God is sovereign God is the source of everything he has God is the Lord and Master of his life

Contentment in the Master “Keep your lives free from the love of money and be CONTENT with what you have.” Hebrews 13:5

But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs I Timothy 6:6-10 CONTENTMENT PERSPECTIVE

Trust the Master “Trust in the LORD with all your heart and lean not on your own understanding. In all your ways acknowledge Him and He shall direct your path.” Proverbs 3:5-6

How does a steward demonstrate trust? Lives by faith Acknowledges his master in all his ways Leans not on his own understanding Asks God to direct his path and trusts that He will do so

Serve the Master “Each one should use whatever gift he has received to serve others.” 1 Peter 4:10a

How Does a Steward Role Model Service as a key element of stewardship?

He serves by giving generously of: TIME TALENT TREASURE

Giving is NOT the focus of stewardship. Giving is the RESULT of understanding what it means to live a life of stewardship.

How should our faith impact our finances? If you think it is all yours, you run the risk of becoming dependent on God’s gifts…rather than on God.

There are rules or principles that can improve the quality of your life and your relationship with God. Earning money Spending money Borrowing money Saving money Giving money Honesty in the area of money Trusting God in the area of money

Does your faith impact… Your work? Your spending and your lifestyle? Your borrowing and your debt level? Your saving? Your giving? Your honesty in the area of money? Your trust in God in the area of money?

How Should our Faith Impact Our Work? The Lord God took the man and put him in the Garden of Eden to work it and take care of it. Gen. 2:15 Six days you shall labor and do all your work. Ex. 20:9 If a man will not work, he shall not eat. 2 Thess. 3:10b The worker deserves his wages. 1 Tim. 5:18b

Whatever you do, work at it with all your heart, as working for the Lord, not for men, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving. Colossians 3:23-24

How Should Our Faith Impact Our Spending and Our Lifestyle? Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you.” Hebrews 13:5

How Should Our Faith Impact Our Borrowing? Buy now, pay later Master “charge” No-no-no plan “The rich rule over the poor, and the borrower is servant to the lender.” Proverbs 22:7

Do you want to serve God or the money lenders? “…You cannot serve both God and money.” Matt. 6:24

Bankruptcy The wicked borrow and do not repay… Ps. 37:21a

Balanced with Compassion for the Poor “At the end of seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite.” Deuteronomy 15:2

How Should Our Faith Impact Our Saving? Not saving =more debt Not saving = less giving Not saving = increased financial instability in the home “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” Proverbs 21:20

How Should Our Faith Impact Our Giving?

How Should Our Faith Impact Our Honesty in the Area of Money? “For the Lord your God detests anyone who does these things, anyone who deals dishonestly”Deuteronomy 25:16 It’s hard to teach with integrity if you aren’t following the rules yourself.

How Should Our Faith Impact Our Trusting God in the Area of Money? A steward lives by faith A steward acknowledges his master A steward does not lean on his own understanding A steward asks God to direct his path and trusts He will

ACTS of Stewardship Acknowledge the Master Contentment in the Master Trust the Master Serve the Master

Why is there a disconnect between our faith and our finances? What can we do about it?

Stewardship Is Planning For The Future Incapacity Planning Providing for your family if you are gone Incorporating your Christian values in that plan Estate Planning

Protect Against Incapacity Durable Power of Attorney for property Durable Power of Attorney for health care

Importance of a Will! ASSETS CHILDREN TAXES YOU Decide STATE Decides

Understand Issues A Revocable Living Trust Mr. & Mrs. Grantor Trust Remainder Beneficiaries Trustee Lifetime Beneficiaries At Death Successor Trustee

Advantages of a Living Trust Avoids costs and requirements of probate Protects privacy Provides for incompetency Eliminates need for probate in other states if out of state property is owned Permits earlier distribution of assets to beneficiaries

Providing for Children At what age should children receive bequests? How much is enough? How much is too much? “An inheritance quickly gained at the beginning will not be blessed at the end.” Proverbs 20:21

Will your death cause your giving to cease? Or, will it result in... YOUR LARGEST KINGDOM INVESTMENT.

A Steward has a responsibility to take care of the assets entrusted to him or her, not only during lifetime, but also at death.

CHARITABLE GIFT ANNUITY DONOR AGE 78 CASH OR CD’S Value$10,000 ANNUITY $10,000 Charity $10,000 Remainder to Charity Income Tax Deduction $4,797 Avoid Estate Tax on $10,000 Income $840/Yr Estimated Lifetime Income $9,135

CHARITABLE REMAINDER TRUST 8.00% Unitrust (10% Growth) Property Value$180,000 Costs$ 20,000 Gain$160,000 Trust $180,000 Charity $267,471 Remainder to Charity Income Tax Deduction $45,319 Avoid Estate Tax on $180,000 Avoid $32,000 Capital Gains Tax Income $14,400 Estimated Lifetime Income $382,193

… there your heart Ages 61 & 62 Three children Committed to several Christian causes Mr. and Mrs. Jones Assets: Total estate: $490,000 including $111,000 in 401(k) plan & IRAs Assets: Total estate: $490,000 including $111,000 in 401(k) plan & IRAs Results With No Planning Income tax payable by children $36,630 or more (approx. 1/3 of IRA value) Zero Income Tax Plan Income Tax$ 0 Amt. To each child$122,500 Charity$122,500

® ® … there your heart will be also Ages 64 & 65 Four children Child #3 is unable to handle finances Mr. and Mrs. Black Assets: Total estate: $2,400,000 including life insurance $300,000 retirement assets $700,000 Assets: Total estate: $2,400,000 including life insurance $300,000 retirement assets $700,000 Results With No Planning Estate Tax$631,000 Income Tax$240,959 Amt. To each child$382,010 Charity$ 0 Child #3’s share depleted immediately With Zero Estate Tax Plan Estate Tax$ 0 Income Tax$ 0 Amt. To each child$412,500 Charity$750,000 Child #3’s share held in trust - provides annual income Remove insurance from estate with an insurance trust

® ® … there your heart will be also Ages 68 & 70 Have highly appreciated stock which they want to sell but don’t want to pay Capital Gains Tax Would like additional income Mr. and Mrs. White Would like to make a charitable bequest at death SOLUTION Charitable Remainder Trust Gift Asset Receive an immediate charitable deduction Receive an income for their joint lives Trust assets to go to charity at death

Income Tax Deduction $45,319 Avoid Estate Tax on $180,000 Avoid $32,000 Capital Gains Tax ® ® … there your heart will be also Charitable Remainder Trust 8.00% Unitrust (10% Growth) Charitable Remainder Trust 8.00% Unitrust (10% Growth) Property Value $180,000 Basis $ 20,000 Gain $160,000 Trust $180,000 Income $14,400 Estimated Lifetime Income $382,192 Charity $267,471 Remainder to Charity

Income Tax Deduction $4,340 Avoid Estate Tax on $10,000 ® ® … there your heart will be also Charitable Gift Annuity Donor age % Annuity Charitable Gift Annuity Donor age % Annuity Cash or CDs Value $10,000 Annuity $10,000 Income $840/yr Estimated Lifetime Income $8,820 Effective Rate: 11.8% Charity $10,000 Remainder to Charity

® ® … there your heart will be also Meeting Individual Needs Estate planning that matches values Opportunity to leave a legacy Expertise for tax-efficient giving