Investing Is Biblical …thou shalt lend unto many nations, and thou shalt not borrow. –Deuteronomy 28:12b Biblical definition of investing is to lend.

Planning, Savings, & Investing Is Biblical Be thou diligent to know the state of thy flocks, and look well to thy herds. –Proverbs 27:23 There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up. –Proverbs 21:20 Story of talents - Matthew 25:14-30 Know cost of tower - Luke 14:28

Investing Is Biblical Make Friends with Money Make to yourselves friends of the mammon of unrighteousness. –Luke 16:9 Educate yourself in money matters.

Investing Is Biblical Financial Goals Giving 10% gross Pay off debt Save 5-20% of gross Pay off mortgage Lifestyle…self-funded ministry…cash car Make a will A goal is a statement of God’s will for me.

Investing Is Biblical Parents Income rose 524% (age 20-30) 49 workers support 1 retiree Average age at death 63 Peak earnings after kids gone Homes appreciated greatly (Buy Your Second Home First) Paid Debt with inflated $ You 34% 2.7 workers(2018) 90/95 still paying for kids 0-3% per yr inflation 1.7%

Investing Is Biblical Three plans for making a million by age 65, assuming the money ears 12% a year Age 25, start investing $59 a month Age 40, put $10,000 down AND invest $493 a month Age 50, put $50,000 down AND invest $1,540 a month

Generational Numbers Boomers Aborted Retirement 48 Million “Mature” 81 Million “Boomers” 38 Million “X-ers” Previous Generation finances the retirement of present generation. Investing Is Biblical

Why retirement savings is low Employers say Employees think can’t afford - 41% Lack of understanding - 16% Perceived lack of need - 14% Have other goals - 10% Incentives too low - 5% Don’t know - 8%

Why retirement savings is low Employees say Think they can’t afford it - 21% Not eligible for plan yet - 18% Prefer investing elsewhere - 12% Company doesn’t match - 9% Doesn’t like choices - 7% Don’t know - 25%

Investing Is Biblical BEGIN WITH THE NEXT PAY RAISE

Investing Is Biblical 401(K) 403(b) ROTH IRA-no tax on earnings from IRA IRA-no tax on contribution to IRA Vehicle for investment NOT the investment

Investing Is Biblical Current Contributions Pre-Tax Deferral Percent 7% of pay After-Tax Contribution Percent 0% of pay YTD Employee Contributions $2, YTD Company Contributions $3,163.02

Investing Is Biblical Balances as of September 30, 1997 Your Contributions Since 1/1/88 to REVSOP: $16, Your Total REVSOP Balance: $102,049.05

Investing Is Biblical Ways to invest IRA, 401(K), 403(b) Cash- CD, Money Market Annuity - contract with insurance co. Mutual Funds –very conservative - money market –conservative - money market, bonds, stocks –moderate - income producing stocks, large cap stocks –growth - large cap stocks, mid-cap stocks –aggressive - small cap stocks

Investing Is Biblical

Investing Is Biblical Understanding Risk

Investing Is Biblical Rule of 72 Divide 72 by rate of return = # of years to double money 72 divide 18% = 4 years 72 divide 15% = 4.8 years 72 divide 12% = 6 years

Investing Is Biblical $130, yr 260,000 Age yr 520,000 Age yr 1,040,000 Age yr 2,080,000 Age yr 4,160,000 Age yr 8,320,000 Age yr 16,640,000 Age 64

Investing Is Biblical 98 3yr 5yr 10yr Washington Mutual (5.75%) Am. Century Inc/Grth Legg-Mason Value Janus Twenty

Legg-Mason Value $10,000 4/82-12/98

Investing Is Biblical $1,000 Deposited Each Year End of Year Values 5 yrs 10 yrs 15 yrs 20 yrs 18% 7,154 23,521 60, ,628 20% 7,442 25,959 72, ,688 22% 7,740 28,657 85, ,989 24% 8,048 31, , ,601

Investing Is Biblical $166 month automatic withdrawal = $2,000 per year $332 month = $4,000 per year for two

Investing Is Biblical Saving vs. Hoarding Genesis 41:46-57 Joseph saved 20% Luke 12:16-21 Rich man had to build bigger barns How are these situations similar? How are they different? Why was God pleased with one, displeased with other?