Market analysts are feeling gloomy. A recent “Market Perspective” from Schwab noted, “A sustained [market] drop may weaken both consumer confidence and...spending power — further dampening consumer demand and economic growth.” Morgan Stanley told investors, “We advise taking caution ahead,” noting that “11 of the 14 Fed tightening cycles since 1950 have resulted in recession.”

Among the many negatives confronting the stock market are Russia’s war against Ukraine; the persistence of the pandemic in some places; rising interest rates; and high inflation — with escalating prices for gasoline, groceries, and so much more wreaking havoc on household budgets.

The bears are betting all this will lead to further stock market declines from current levels. The bulls are betting that the concerns are exaggerated. They stand by their contention that the long-running “secular” bull market still has legs.

I hope you’re not betting at all, that you’re dealing with market risk by being diversified — and that you’re willing to be patient. The market will do what it has always done — go up, go down… and then go up again.

The [logarithmic graph](https://www.investopedia.com/terms/l/logarithmicscale.asp) to the right provides a picture of how stock prices, as measured by the S&P 500 index, have moved over the past 50 years. It shows the last seven times prices have declined 20% or more, including this year’s selloff. (So far, this year’s decline doesn’t qualify as a “technical” bear market. The S&P 500 index dipped below the -20% threshold on May 20 but has yet to close there. But since the Nasdaq (technology) and Russell 2000 (small-company) stock indexes are down more than -25% already, we’ve included it in the chart.)

![](https://dcktxkaneetr8.cloudfront.net/2022/06/editorial-graph.png)

But tell the truth — that chart doesn’t look all that bad, does it? It shouldn’t. The S&P 500 index is still roughly 80% higher than at its March 2020 low!

If this *is* a new bear market and its length of decline matches the average of the prior six bear markets, we wouldn’t expect it to end until sometime in mid-2023. (The last six bear markets declined an average of 16 months. Two were brief: 1987's bear lasted three months and 2020's lasted only 1 month. The other four averaged 22 months.)

I’m not saying we're facing a long bear market. But if we are, are you prepared? *Prepared to take advantage of it*, that is.

- __First, are you prepared financially?__
> If you haven’t been investing with borrowed money, you can survive any bear market. Just maintain your strategy and wait it out. But that’s looking at it negatively. Lower stock prices, if they come, are bad for people who have to sell, but they offer temporary bargain prices for people who have the money to buy. Will you be in a position to add to your holdings, either by initiating or maintaining a dollar-cost averaging strategy? Or perhaps simply in a position to buy again when the SMI strategies say it’s time?
- __Second, are you prepared psychologically?__
> That is, do you have a positive mental attitude? Yes, we have problems in the short term, but the long-range outlook is positive. Years from now, stock prices will likely be far higher than they are now. It is through the down phase of market cycles that we are given an opportunity to buy at lower prices so we can sell later at higher prices (see page 87). When adequately prepared for, bear markets can be more of an advantage than a disadvantage for investors with a longer time horizon. For them, a bear market in stocks is an opportunity, not a threat.

The stock market has few set rules, but certain truisms have stood the test of time. One is that bad market periods are followed, in time, by good market periods. You’re happy to take advantage of seasonal half-price sales at clothing stores, aren’t you? You should have the same “opportunity is knocking” attitude about stock prices if and when they “go on sale.”

Investment success, for the most part, comes from developing a practical, personalized strategy that focuses on quality investments, and then having the wisdom to wait for the markets to do what they have always done in the past — reward the patient investor.

Since 1990, do-it-yourself Christian investors have relied on SMI for proven strategies and trustworthy guidance.

Sound Mind Investing

Investing

Investment success, for the most part, comes from developing a practical, personalized strategy.

Lessons From Past Bear Markets – Are You Prepared?

__“Wake up and live in Sun City, for an active way of life! Wake up and live in Sun City, Mr. Senior Citizen and wife. Don’t let retirement get you down! Be happy in Sun City; it’s a paradise town.”__

In post-World War II America, this Del Webb jingle was one of many popularizing not just retirement communities, but an idea that quietly sits underneath most investing in the United States — the hope of a blissful, care-free retirement.

Though we rarely connect the behemoth of the American stock market to images of gray hair, shuffleboard matches, and Florida swimming pools, we should. Underpinning nearly all investing is a vast web of IRAs, mutual funds, and financial instruments that are sold to the public with promises of a utopian retirement where every day is a vacation.1 Invest enough and you too can live the dream.

# Underpinning nearly all investing is a vast web of IRAs, mutual funds, and financial instruments that are sold to the public with promises of a utopian retirement where every day is a vacation. Invest enough and you too can live the dream.

But today major voices are calling for a sweeping reconsideration of how we think about aging and retirement.2 Jo Ann Jenkins, CEO of AARP, recently wrote in *Barron’s* that as Americans are living longer and longer, the idea of a permanent vacation at age 65 (or earlier) seems less and less appropriate. She noted that most 65-year-olds today will live into their 90s. That’s an awfully long vacation.

Nevertheless, most Christian investors fail to ask this most essential question: exactly what vision of the future is actually *driving* my investing behavior?

__The Problem with Investing for Retirement__

Retirement as the driving motivation for investing needs to be challenged. In fact, there are a host of problems with retirement as the principal motivation for our investing.

The Fear-Greed Combo.  Will I have enough for retirement? This subtle fear — in two opposed manifestations — lurks around the edges of countless articles on Yahoo Finance or MarketWatch. It causes workers to stash away increasing amounts of money in order to survive a retirement that could last 20, 30, or even 40 years. And most know they’re sorely behind what they should be investing. The result is that more and more Americans — contemplating longer lifespans and growing doubts about Social Security — are afraid they won’t have enough money to see them through old age.

But there is another version of this fear. For those who have amassed meaningful resources, they contemplate the rather considerable costs of the retirement idea that they’ve been sold. Its high points are periodic trips to exotic destinations — an African safari next month, followed before long by a leisurely cruise down the Rhine or a tour of the Tuscany vineyards. In between are the ‘ordinary’ days — golf and cocktails at the country club, punctuated by regular lunch and shopping trips with friends. Throw in the occasional trip to DisneyWorld with the grandchildren and even those who’ve saved a good deal feel anxious about affording the retirement they’ve imagined.3

It is this combination of fear and greed, often bound together, that actually drives much of our investing. The net result is a largely unquestioned drive to accumulate more and more, motivated by the sense that ‘enough’ seems always farther down the road.

# The task of stockpiling assets to last for decades in retirement often then obscures seeing investing as God intends — as a means of providing capital to businesses to enlarge human flourishing. What’s left is a focus on maximizing returns in portfolios that often fail to assess the consequences of a company’s impact in the lives of others.

The task of stockpiling assets to last for decades in retirement often then obscures seeing investing as God intends — as a means of providing capital to businesses to enlarge human flourishing. What’s left is a focus on maximizing returns in portfolios that often fail to assess the consequences of a company’s impact in the lives of others.

*To Work is to Be Human.* God worked for six days and rested for one, baking into the created order a rhythm of work and rest that’s as natural as the rising and setting of the sun (Genesis 2:2). Yet our modern notion of retirement evidences a quite different understanding. Instead of the biblical idea that work and rest should exist in an ongoing balance for as long as God gives us strength to serve, we have embraced the idea that at age 65 (or earlier) our working life is over, to be followed by a permanent life of leisure.

Most retirees experienced frustrations and disappointments over the course of their careers. No doubt more than a few feel the truth of Ecclesiastes: *“The work that is done under the sun is grievous to me, a chasing after the wind”* (2:17). They are understandably eager to swap commutes and deadlines for long walks and happy hour on the 19th hole.

Yet many more feel they still have much to contribute well into their later years — a feeling that is crowded out by the retirement-entertainment complex that prizes pleasure over productivity. They also report missing the sense of purpose, and of human community, that work provided.4 Unfortunately, our public systems built around retirement have created a sharp cliff, disconnecting work over a lifetime from a vision for human flourishing in one’s later years.

*Retirement Doesn’t Satisfy.* Many are coming to realize the vision of retirement as a never-ending vacation simply doesn’t satisfy. “I’d done all the preparation, except to really think about what life was going to be like,” said Sue Ellen King, a care nurse and educator at the University of Florida, in a *New York Times* feature. In her first three months of retirement, she organized photos, took a trip to Hilton Head, and enjoyed a good many long lunches. But after a brief honeymoon period, she says she felt more and more adrift.5 Many swap the feeling of meaninglessness in work for meaninglessness in retirement, a phenomenon a growing number of Christian financial advisors see regularly.6

*Retirement Isn’t Healthy.* One BBC study found that retirement can increase chances of clinical depression by 40 percent.7 And retirement often accelerates aging as people disconnect from purpose, often driving up health care bills well before the actual onset of ‘old age.’ Conversely, another study found putting off retirement can keep your brain sharp for longer.8

*The Majority Can’t Afford the Retirement Dream.* For a growing number of Americans, the retirement dream is a mirage, like the proverbial pot of gold at the end of a vanishing rainbow. In 2019, savings in the average retirement account totaled just $65,000. 25% of Americans had no savings at all, and 28% of those in their sixties had less than $50,000.9 Many believe retirement is actually exacerbating the yawning economic and social divides of America, splitting those who own public equities from the 45% who own no stocks at all.10

Retirement, of course, is not all bad. It was formalized in the US with the passage of the Social Security Act of 1935, which had as its original intent the care for the elderly poor in post-Depression America. Indeed, a Christian, Frances Perkins, helped to pass the New Deal out of concern for the vulnerable.

Today, though, the very idea of retirement has metastasized. It provides the foundation for much of our investing yet, overall, it tends to diminish rather than enlarge the human flourishing God intends.

How, then, should Christians think about retirement? I cover that in Part 2: A Biblical Perspective on Retirement (linked below).

(image used with permission) 

REFERENCES 
1. Selling the “paradise” retirement is just as prevalent today as it was 60 years ago. A recent ad for a Del Webb property in Naples, Florida promises not just 3-lane lap pools, the Rusty Putter Bar & Grill, and a full-time Lifestyle Director, but “much more than a beautiful home; we offer a place to belong.” See: https://www.avemaria.com/wp-content/uploads/2021/01/2020-07-15-Ave-Maria-Sun-Full-Summer-Edition.pdf.
2. Jo Ann Jenkins, “It’s Time to Rethink Aging and Retirement, AARP’s Jenkin’s Says,” Barrons, 14 May 2021, https://www.barrons.com/articles/rethink-aging-retirement-51621024227?mod=hp_WOMEN.
3. See: Lynda Gratton & Andrew Scott, The 100 Year-Life: Living and Working in an Age of Longevity (London: Bloomsbury, 2016).
4. Marc Freedman, Prime Time (New York: Public Affairs, 1999), viii.
5. Paula Span, “Many Americans Try Retirement,” Then Change Their Minds,” New York Times, March 30, 2018: accessed on April 18, 2018:  https://www.nytimes.com/2018/03/30/health/unretirement-work-seniors.html.
6. One such advisor is Joel Malick of Steadfast Wealth in Colorado Springs. See his book: Joel Malick, Alex Lippert, Dean Merrill, Afterwork: An Honest Discussion About the Retirement Lie and How to Live a Future Worthy of Dreams (Independently published, 2021).
7. Caroline Parkinson, “Why Retirement Can Be Bad for Your Health,” BBC, May 16, 2013, http://www.bbc.com/news/health-22553577.
8. John Anderer, “Putting off retirement may keep your brain sharp in older age,” Study Finds, 30 August 2021, https://www.studyfinds.org/delayed-retirement-keeps-brain-cognition-stronger/.
9. Kathleen Elkins, “Here’s how much Americans have saved for retirement at different ages,” CNBC, 23 Jan 2020, https://www.cnbc.com/2020/01/23/heres-how-much-americans-have-saved-for-retirement-at-different-ages.html.
10. Teresa Ghilarducci, “Most Americans Don’t Have a Real Stake in the Stock Market,” Forbes, 31 Aug 2020, https://www.forbes.com/sites/teresaghilarducci/2020/08/31/most-americans-dont-have-a-real-stake-in-the-stock-market/.

DISCLOSURE
This communication is provided for informational purposes only and was made possible with the financial support of Eventide Asset Management, LLC (“Eventide”), an investment adviser. Eventide Center for Faith and Investing is an educational initiative of Eventide. Information contained herein has been obtained from third-party sources believed to be reliable.

Inspiring an authentically Christian practice of modern investing.

Eventide Center for Faith & Investing

Articles

It's the foundation for much of our investing yet, overall, it tends to diminish the human flourishing that God intends.

The Trouble with Investing for Retirement Part 1

I’m not sure when I first heard about ‘faith-based investing’ (or ‘values-based investing’). But I do remember the first time I felt skeptical about the whole idea. It was about ten years ago, and the setting was a conference room in my workplace. Our organization’s investment advisor was visiting for the day, discussing different fund options for our retirement accounts.

The information guide listed five or six of the usual fund families with their various options. They were categorized in the ways we’re accustomed to seeing: growth, aggressive growth, international, emerging markets, etc. — along with fee structures, and five and ten year performance metrics.

It was a sea of information, but my eyes were particularly drawn to the performance metrics and fees. As I scanned the numbers, one thing became clear: faith-based investing funds were the best investment strategy . . . *if I wanted my retirement account to chronically underperform.*

This was my first real concern:


## 1. I believed faith-based investing funds were fiscally irresponsible, and therefore, represented unwise stewardship.


Close to this time I was also becoming convinced of the wisdom of another investing trend — favoring low-cost index funds over higher-priced options. I reveled in sharing the story of Warren Buffett’s [$1 million “bet”](https://markets.businessinsider.com/news/stocks/ted-seides-lost-1-million-bet-warren-buffett-hedge-funds-2021-5-1030467828) with Ted Seides — a wager on whether a group of hedge funds (selected by Seides) would outperform over ten years a low-cost index version of the S&P 500. Like an overly-hyped boxing match that ends up boringly one-sided, the index fund’s 10-year return trounced the hedge funds by over 99% — and a charity selected by Buffett emerged a million dollars richer.

The verdict seemed clear: smart money commits to low-fee index funds, while stupid money chases returns in actively managed, high-fee funds. Faith-based funds, values-based funds, socially responsible funds — they all seemed simply like the latest gimmick by which actively managed funds continued to underperform. I was convinced that wise stewardship of God’s money argued against such investments.

But this was only the case on the basis of my second concern:


## 2. I believed faith-based funds were shrewdly packaged products designed to make money from those with a weak conscience.


Like a poorly produced ‘Christian movie’ that still runs up big sales at the box office, these funds seemed like a marketing ploy aimed at do-gooders who didn’t care about the actual quality of the product.

The Bible addressed this situation, I thought, in passages like Romans 14, which described Christians with a “weak conscience,” whose moral alarms were always going off like a [malfunctioning alarm clock](https://www.thegospelcoalition.org/article/conscience-in-the-workplace/). While I certainly respected their freedom to honor God in a way they believe appropriate, I also felt free to pursue a less rigid approach.

In Paul’s language, I shouldn’t pester “the weaker brothers and sisters” among us who might need to be reassured by the moral purity of their investment choices — they too would stand before God. But these gray areas, I imagined, were areas of Christian freedom, subject to the individual conscience of the believer. Broad index funds or other low-fee actively-managed funds seemed to me like Paul’s example of meat sacrificed to idols — only dirty for those whose conscience was troubled.

To the issues of stewardship and conscience, I added a third critique, this time with a theological lens:


## 3. Faith-based funds were overly optimistic about their moral purity, and weren’t sufficiently realistic about the moral ambiguity of our world.


The theological underpinnings for this assessment are two-fold. First, an understanding that after the Fall, life and work in this world is always tainted by sin. In the prophet Jeremiah’s words, “the heart is deceitful above all things.” Since sin is pervasive, it crops up in unexpected ways and places.

The implication for investing seemed simple: it is naive to think we can invest only in companies that align with God’s creational purposes. The world — especially the world of business/investing — is far too messy.

Even companies with the best of intentions can cause untold harm, which is not always evident until many years later. Perhaps it is too easy to use the example of modern social media companies, but their initial laudable aim of making the world a more connected, better place has come with [toxic consequences](https://www.theatlantic.com/magazine/archive/2022/05/social-media-democracy-trust-babel/629369/).

Second, though well-intentioned, I thought that avoiding investments in obviously wicked companies was, at best, marginally better than the alternatives. Plenty of the other companies, I reasoned, were simply better at concealing their harm. In other cases, the harm they produce is an unfortunate byproduct of doing something beneficial. Opioids, for instance, relieve real pain and have helped many people, though they have also left a trail of addiction and death.

All of which underlines the fact that we live in a morally messy world. The solution, I thought, was not to embrace a highly developed boycott mentality, but to recognize that we are not polluted by participation in an imperfect world. After all, Jesus told his disciples to pay their taxes to an evil government, and Paul ate meat sacrificed to idols, arguably aiding the idolatry industry. Such is life in a fallen world.

## What Changed My Views

I don’t remember the exact date I began to change my mind on these matters. Perhaps like with Hemingway’s description of bankruptcy, my views changed gradually, then suddenly. But I do know the key ideas that began to reshape my understanding, addressing each of my core concerns.

Regarding underperformance and high fees, I began to see that ethically-run companies who create compelling value for people and planet tend to perform very well over the long term. Their business models are intrinsically sustainable — making them less susceptible to the unpleasant surprises that can plague unsuspecting investors.

There are now thousands of performance studies on the effect of investing with ethical criteria and I won’t attempt to cover them here. But in my own research, I came to the same conclusion as a wealth advisor in an [article](https://www.nytimes.com/2021/05/14/your-money/faith-based-investing.html) published in the New York Times last year, “Investing according to theological beliefs . . . [is] as profitable as investing without a religious screen, and no more risky.”

Secondly, on the issue of faith-based or values-based funds being packaged for those with weak consciences, I came to see that investing is ownership. For two reasons, this magnifies our moral responsibility:

> My owning shares in a company helps the company succeed.
> More importantly, I am directly profiting from the company’s business activities. Effectively, I become a partner in its business model.

While the conscience is meant to be obeyed, it is also meant to be informed. My tangible first step was to ask what companies I actually owned through my investments, and was I happy helping these companies financially, and benefiting from them financially? Just a little investigation made me realize that my newly-informed conscience was distressed with some of my (previously) unexamined investment choices.

Thirdly, my thinking about the moral ambiguity of companies changed. I continued to believe that companies, like individuals, could not avoid the implications of Adam’s and Eve’s fall. Still, I realized that some companies practice business in ways that align with God’s ‘Love your neighbor’ command while others do the opposite. Some companies purposely create value for their various stakeholder neighbors — customers, employees, suppliers, etc. Others, unfortunately, often exploit those same neighbors.

Eventually I realized I had come to a different view of business. Some companies intentionally create products and services that add beauty, goodness, protection, help, healing, and service to the world. These companies, though imperfect, add to human flourishing and make the world better. In that sense, they reflect my own faith values.


# These companies, though imperfect, add to human flourishing and make the world better . . . I decided that these are the kinds of companies in which I want to invest.


I decided that these are the kinds of companies in which I want to invest. And though I might not be equipped to evaluate such companies directly, I could invest with fund companies that had demonstrated the ability to do these assessments well.

After all, investing in faith-based funds doesn’t have to lead to underperformance, they are being widely sought by those with informed consciences, and many rely on compelling ways to measure how companies are impacting human flourishing–itself a competitive advantage. And at the very least, that should be worth a closer look.

(image used with permission)
DISCLOSURE
This communication is provided for informational purposes only and was made possible with the financial support of Eventide Asset Management, LLC (“Eventide”), an investment adviser. Eventide Center for Faith and Investing is an educational initiative of Eventide. Information contained herein has been obtained from third-party sources believed to be reliable.

I’m not sure when I first heard about faith-based investing, but I do remember the first time I felt skeptical about it.

Why I Was Skeptical of Faith-Based Investing—and What Changed My Mind

When Bernie Madoff’s Ponzi scheme unraveled in late 2008, a watching world was reminded of a frightening financial reality. Many of us entrust the vast majority of our assets to investment advisors without asking many questions — especially if they (seem to) produce favorable financial returns.

This is not to pour salt in the wounds of Madoff’s victims. But part of the horror in hearing about Madoff’s scheme, and others like it, is that they raise a haunting question: Could it have been me? Preferring an investing model of “set it and forget it,” many of us have not really done the due diligence to appropriately vet our financial advisors or fund managers. Fortunately, though, when one looks at the odds, very few of us will be victims of a Madoff-like scheme.

But there is a more insidious danger to the outsourcing of financial management. Most of us long to live integral lives, with core convictions and values that consistently guide all our decisions. Nevertheless, many of us have thoughtlessly ignored the need for personal wholeness in one of the very places we most need it — in the stewardship of the financial resources God has entrusted to us.

# Many of us have thoughtlessly ignored the need for personal wholeness in one of the very places we most need it — in the stewardship of the financial resources God has entrusted to us.

Or put another way, if we give latitude to financial advisors to invest our money without communicating our values and convictions, they may invest in companies, directly or through mutual funds, that operate in ways that are entirely at odds with our values. In which case, the fault lies at least as much with us as with them.

One could, for example, imagine Dave Ramsey inadvertently ending up with an investing portfolio full of credit card companies. Or the American Lung Association accidentally investing pension funds in tobacco corporations.

In fact, we don’t have to imagine. Several years back, Justin Welby, the Archbishop of Canterbury, committed publicly to taking on the payday loan industry in England because of the exorbitant interest rates it was charging poor people. But the day after the start of that campaign, the Financial Times revealed that the Church of England’s own pension fund was, through an intermediary, a big investor in Wonga, one of the UK’s largest payday lenders. Very embarrassing.

Most of us don’t want to find ourselves in a similar position — with investments that are profiting from products and services we find repugnant.

There is a reason, though, why so many people simply entrust money to a financial advisor without asking questions, or choose mutual funds simply by looking at the 10-year average return without getting caught up in the details of what companies, and what kinds of business models, are part of the portfolio.

It takes time and expertise to vet companies, and most people are not financial professionals. Even if one takes the time to examine the top 15 companies in a fund, it is not always clear what many of the companies do, much less whether they serve or exploit their supply chain, or treat their employees well or poorly.

And even if this information were more easily accessible, actively managed funds are constantly changing their investments. The informational upkeep needed to invest with integrity is daunting.

So how can those who want every area of their lives to reflect the Lordship of Christ faithfully invest their financial assets?

The Bible often uses a word that encompasses the idea of entrusting important tasks to others who will act in one’s stead (especially on behalf of an owner or ruler). In the Bible, this is the idea of stewardship. In fact, the quintessential steward is a household manager or superintendent whose management activities reflect, and carry out, the desires of the household head.

We should think of ourselves as stewards of the assets God has entrusted to us and, of course, doing so is a good thing. But we must go a step further. We must understand that our financial advisor or asset management company is also a steward — not only of our financial returns, but of our convictions and values, as we seek to remain accountable for our finances under the Lordship of Christ.

# We must understand that our financial advisor or asset management company is also a steward — not only of our financial returns, but of our convictions and values, as we seek to remain accountable for our finances under the Lordship of Christ.

By way of analogy, consider a parent looking for the best school for their child. While they themselves may not be competent to teach most academic subjects, and will not be present for the moment by moment operations of the school, they take on the responsibility to vet the school in a way that aligns with their convictions, whether religious, philosophical, or otherwise. The parent is the steward of the child under God, but the school is also a steward of the child’s education, fulfilling the desires of the parent.

Or consider the hiring of a contractor for a kitchen remodel. We may solicit the contractor’s counsel about a great many aspects of the project, knowing they have experience and expertise well beyond our own. Still we know that primary responsibility for the key decisions, and final outcome, rests with us.

Likewise, God is perfectly pleased for us to outsource tasks to those with specialized expertise. But he never allows us to outsource our moral responsibilities — including when it comes to our investing.

For investors, then, stewardship means that we take very intentional steps to vet our advisors, articulating our values and making sure we work with someone who applies an appropriate ethical grid to the companies and/or asset managers they recommend. In other words, we can turn to our advisor for information and expertise, but not as a way to ignore our own considerable moral responsibilities. In this way, as stewards under God, we assume our rightful ethical responsibility to manage the resources he has entrusted to us. Faithful financial stewardship requires no less.

(image used with permission
__DISCLOSURE__
This communication is provided for informational purposes only and was made possible with the financial support of Eventide Asset Management, LLC (“Eventide”), an investment adviser. Eventide Center for Faith and Investing is an educational initiative of Eventide. Information contained herein has been obtained from third-party sources believed to be reliable.

Stewardship means that we take very intentional steps to vet our advisors, articulating our values with them.

Faithful Investing (In an Age of Complexity)

Many investors want to apply their faith to the way they invest their money. And a small, but growing industry of faith-based investments is seeking to meet that desire. But many still have questions. Matt Rusten joins us to help answer those questions today on MoneyWise. 
Matt Rusten is executive director of Made to Flourish, a ministry dedicated to helping Christians live their faith seven days a week, not just on Sunday.
<ul><li>Matt writes for the Eventide Center and recently penned an article titled “Why I Was Skeptical of Faith-Based Investing — and What Changed My Mind.” </li><li>Matt share his journal now an advocate for faith-based investing. </li><li>His first real concern: Matt believed faith-based investing funds were fiscally irresponsible, and therefore, represented unwise stewardship.</li><li>He said his analysis of the numbers led him to a clear verdict: smart money commits to low-fee index funds, while stupid money chases returns in actively managed, high-fee funds. Faith-based funds, values-based funds, socially responsible funds — they all seemed simply like the latest gimmick by which actively managed funds continued to underperform. </li><li>But Matt said that was only true on the basis of my second concern: </li><li>He believed faith-based funds were shrewdly packaged products designed to make money from those with a weak conscience. This is a reference Romans 14, which described Christians with a “weak conscience,” whose moral alarms were always going off like a malfunctioning alarm clock. </li><li>To the issues of stewardship and conscience, he added a third critique, this time with a theological lens:</li><li>He believed faith-based funds were overly optimistic about their moral purity, and weren’t sufficiently realistic about the moral ambiguity of our world.</li><li>Afte the Fall, he reasoned, life and work in this world is always tainted by sin. In the prophet Jeremiah’s words, “the heart is deceitful above all things.” Since sin is pervasive, it crops up in unexpected ways and places.</li><li>The implication for investing seemed simple: it is naive to think we can invest only in companies that align with God’s creational purposes. The world — especially the world of business/investing — is far too messy.</li><li>Even companies with the best of intentions can cause untold harm, which is not always evident until many years later. </li><li>The solution, he thought, was not to embrace a highly developed boycott mentality, but to recognize that we are not polluted by participation in an imperfect world. After all, Jesus told his disciples to pay their taxes to an evil government, and Paul ate meat sacrificed to idols, arguably aiding the idolatry industry. Such is life in a fallen world.</li><li>WHAT CHANGED HIS VIEWS</li><li>Over time, Matt said his views bagan to shift. </li><li>Regarding underperformance and high fees, he began to see that ethically-run companies who create compelling value for people and planet tend to perform very well over the long term. Their business models are intrinsically sustainable — making them less susceptible to the unpleasant surprises that can plague unsuspecting investors.</li><li>Secondly, on the issue of faith-based or values-based funds being packaged for those with weak consciences, he came to see that investing is ownership. For two reasons, this magnifies our moral responsibility:</li><li>Owning shares in a company helps the company succeed. And, more importantly, shareholders are directly profiting from the company’s business activities. Effectively, a shareholder becomes a partner in its business model.</li><li>His tangible first step was to ask what companies he actually owned through his investments, and whether he was happy benefiting from them financially. </li><li>Thirdly, his thinking about the moral ambiguity of companies changed. He realized that some companies practice business in ways that align with God’s ‘Love your neighbor’ command while others do the opposite. Some companies purposely create value for their various stakeholder neighbors — customers, employees, suppliers, etc. Others often exploit those same neighbors.</li><li>Eventually, Matt says he realized he had come to a different view of business. </li><li>You can read the <a href="https://www.faithandinvesting.com/journal/why-i-was-skeptical-of-faith-based-investing-and-what-changed-my-mind/">full article here</a>. </li><li>Discover more resources for faithful investing, ate Eventide’s Faith and Investing Center at <a href="https://www.faithandinvesting.com/">FaithandInvesting.com</a>.</li></ul>On this program, Rob also answers listener questions: 
<ul><li>Is it wise to move a portion of your investments into physical gold? </li><li>Do have to wait until you’re at least 62 years old to take Social Security benefits? </li></ul>RESOURCES MENTIONED: 
<ul><li><a href="https://www.ssa.gov/">SSA.gov</a> </li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Biblical Wisdom For Your Financial Journey

MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West and Steve Moore, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

MoneyWise with Rob West

These days, investors want to apply their faith to investing. An industry of faith-based investments is seeking to meet that desire. We tackle some of the big questions about faith-based investing with someone who was once skeptical about the approach.

No Longer Skeptical About Faith-Based Investing With Matt Rusten

Do not despise these small beginnings, for the LORD rejoices to see the work begin.“ Zechariah 4:10. That passage refers to the rebuilding of the temple in Jerusalem. The old wept, knowing it wouldn't have the grandeur of the old temple. Is there a lesson here about investing? We’ll talk about that today on MoneyWise. <ul><li>INADEQUATE RETIREMENT SAVINGS</li><li>A <a href="https://www.cnbc.com/2019/03/14/heres-how-many-americans-are-not-saving-any-money-for-emergencies-or-retirement-at-all.html">Bankrate</a> survey has shown that Americans are saving far too little for retirement. </li><li>About a third of us save 10% or less of our income. One in five save 5% or less, and a full 20% of Americans are saving nothing at all. You don’t want to be in those groups.</li><li>And this is a lesson about starting small. If you think you need hundreds or thousands of dollars to start investing, and you’re living paycheck to paycheck, you’ll never get started. The good news is you don’t need that kind of money.</li><li>GETTING STARTED</li><li>But you do
need to get started because financial security requires investing … putting your money to work and allowing compound earning to grow what you invest.</li><li>This starts with getting on a budget that enables you to spend less than you earn. Your budget, or spending plan, will determine how much discretionary income you have left over after you’ve paid all of your monthly expenses.</li><li>By the way, the free <a href="https://app.moneywise.org/">MoneyWise app</a> is a great way to set up your budget. It has three different options for budgeting and one of them will be perfect for you. </li><li>We have trained volunteers to help you set up a budget and find ways to spend less for the things you need, so you can invest. The only charge is for a simple workbook you need to get started. Just go to MoneyWise.org to <a href="https://apisource.moneywise.org/connect">sign up with one of our coaches</a>.</li><li>DON’T BE AFRAID TO START SMALL</li><li>Even if you barely have anything left over after the bills are paid, no matter. It’s okay to start small!! You can even start investing with pennies.</li><li>How do you do that? Start putting your spare change in a cookie jar or coffee can. You might be shocked to see how much is in there after just a month or so. </li><li>And I would advise against using one of those coin counting machines at the grocery store that give you a voucher you can redeem at customer service for paper dollars.</li><li>They take 8 to 11 percent of your money, and you don’t want to start investing with a loss like that!</li><li>So you take your rolled up coins to the bank and deposit them in your account. Now this is important: You have to move that money to someplace where you don’t see it. </li><li>So can set up an IRA at an online bank like <a href="https://www.ally.com/">Ally Bank</a>, <a href="https://www.marcus.com/us/en">Marcus</a> or <a href="https://www.capitalone.com/bank/checking-accounts/online-checking-account/">Capitol One 360 Checking</a>.</li><li>
You can choose a target date fund that’s pegged to the year you expect to retire, and the account will manage itself. You can sit back and watch your earnings grow.</li><li>If you use all of your coins in parking meters, you can try the five-dollar bill rule. Every time you get a 5-dollar bill in change, you can’t spend it. Instead, it goes in the cookie jar. Then at the end of the month, you deposit your cookie jar money just like you would your spare change.</li><li>Also, I know a lot of folks use debit cards for everything these days and they handle very little cash. No worries! You still have several “micro” investing options.</li><li>You can check out <a href="https://www.acorns.com/">Acorns</a>, an app that links to your debit or credit card accounts. Every time you use the card, Acorns rounds up the transaction to the nearest dollar. It then transfers that tiny extra amount to a savings or investment account, automatically.</li><li>That’s especially helpful, because most brokerages require a minimum deposit to start, often thousands of dollars. </li><li>In addition to Acorns, there’s <a href="https://www.betterment.com/robo-advisor">Betterment</a>. It also has no minimum investment and charges a low .25% management fee.</li><li>Then there’s <a href="https://www.stash.com/">Stash</a>. It requires only $5 to get started and you can invest for as little as $1 a month.</li><li>And one more: <a href="https://robinhood.com/us/en/">RobinHood</a>. It’s not a so-called “robo-adviser,” like the others. You have to pick your own investments. But, there’s no minimum deposit required and all transactions are free.</li><li>So those are all good low cost — or no
cost — investing opportunities for folks invest small. We hope you’ll get started today!</li></ul>On this program, Rob also answers listener questions: <ul><li>Is it wise to invest in silver or gold given soaring government spending and its potential future impact on the value of the US Dollar? </li><li>How do you determine if your mortgage payoff amount is accurate? </li><li>How should you balance paying down your mortgage with investing for retirement? </li><li>What is the wisest way to finance significant home repairs? </li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

“Do not despise these small beginnings, for the LORD rejoices to see the work begin.“  That passage refers to the rebuilding of the temple. The old wept, knowing it wouldn't have the grandeur of the old temple. Is there a lesson here about investing?

A Small Beginning To Investing

Proverbs 21:5 tells us, “Steady plodding brings prosperity; hasty speculation brings poverty.” That’s one of the most quoted verses about investing, and with good reason. It lays the foundation for a successful investing plan. Today, Mark Biller joins us with 6 principles to help you steadily plod your way to a sound investment plan. 
Mark Biller is executive editor at Sound Mind Investing.
<ul><li>6 PRINCIPLES FOR INVESTING IN TURBULENT TIMES</li><li>The SMI newsletter has an article with <a href="https://soundmindinvesting.com/articles/view/6-principles-for-a-solid-investing-plan">6 principles to help us keep a level head in turbulent times</a>. </li><li>The article begins with the idea that investing is like riding a roller coaster while wearing a blindfold. You can’t tell when a steady incline will give way to a precipitous decline. </li><li>Unfortunately, there’s no way to make market volatility completely disappear — it’s an unavoidable part of investing for most people. But you can stay steady through the ups and downs by using a well-defined and disciplined investing strategy.</li><li>Of course, there’s no single strategy that is right for everyone. But every good long-term strategy incorporates six core principles.</li><li>1. DIVERSIFICATION: The first principle is that success doesn’t come from hoping for the best, but from knowing how you’ll handle the worst. What we mean by that is that since market downturns are an inevitable part of investing, your plan should account for that.</li><li>The best way to do that is through diversification, which means purposely selecting a range of investments that “march to different drummers.”</li><li>Holding different types of investments that tend to respond differently to economic events helps to smooth out the overall volatility of your portfolio. The hope is that if some of your investments “zig,” others will “zag.” Much of the modern investment business is built on research that shows there are ways to combine various types of assets in ways that reduce risk without sacrificing much in the way of returns.</li><li>2. CLEAR RULES: It’s that your investment plan needs to have clear-cut, easy-to-understand rules. The more specific and actionable they are, the better you’ll be able to make investment decisions quickly and with confidence.</li><li>For example, instead of a plan that calls for “significant investment in small-company stocks,” try to define that more clearly. Perhaps instead the plan says, “30% of my portfolio will be invested in small-company stocks.” That’s straightforward and measurable, whereas the other is too open to interpretation.</li><li>Also, your strategy should not only tell you what to invest in, but it should also offer precise guidance in telling you how much to invest and when to buy and sell. But even someone just plugging away in their 401k can do this by defining how much and how often they’re making their contributions.</li><li>3. PLAN SHOULD REFLECT LIMITATIONS: Principle number three is that your investment plan must reflect your financial limitations. Never ignore the words “higher risk.” Every day, people who thought “it’ll never happen to me” find just how wrong they were.</li><li>Investing isn’t a game where gains and losses are the means of keeping score. Money isn’t an abstract commodity. For most of us, it represents years of work, hopes, and dreams. An unexpected financial loss can be devastating. So a good investment plan should discourage you from taking risks you can’t afford.</li><li>Your top financial priorities ought to be getting debt-free and building an emergency savings reserve. That’s building the appropriate foundation that makes you financially strong enough to bear the risk of loss from investing.</li><li>Possible exceptions might include contributing to a workplace retirement account, especially if your employer matches your contributions (essentially “free money”).</li><li>4. STAY WITHIN YOUR COMFORT ZONE: Your investment plan needs to keep you within your emotional “comfort zone.” Don’t adopt a strategy that robs you of your peace and takes you past your “good night’s sleep” level! If you do, you’ll likely bail out at the worst possible time.</li><li>The amount of risk you take should be consistent with your “investing temperament” and your season of life. That’s why some sort of risk assessment is usually part of the startup process when you’re working with a financial avisor.</li><li>5. PLAN MUST BE REALISTIC ON EXPECTED RETURNS: The fifth principle for a solid investment plan is it needs to be realistic concerning the level of return to expect. </li><li>Over the years, we’ve occasionally had people ask us to recommend safe investments that will guarantee annual returns of 10%-12% or more.</li><li>If by “safe” they mean there’s no chance of the value of the investment falling, we don’t know of any investments like that. Investments that are “safe” in that sense typically pay much less than 10-12%.</li><li>That said, the recent spike in inflation has created a rare exception: I-Bonds, which currently yield close to 10%.</li><li>Return and risk are inextricably linked. Investment vehicles that offer a higher rate of return than “normal” do that because they have to in order to entice investors to accept a higher level of risk. </li><li>6. START SMALL AND ASAP: Your plan should encourage you to begin investing with small amounts, so you can get started as soon as possible and take full advantage of the power of compound interest.</li><li>One example in the article describes two young people named Jack and Jill. Jack started depositing into an IRA when he was really young, kept it up for just 10 years, and deposited about thirteen thousand dollars total. Jill waited until she was older to start an IRA, but then deposited way more than Jack — $120,000 over 40 years. They both earned the same rate of return.</li><li>Despite Jill depositing about 9 times more than Jack, his IRA ended up being slightly bigger at retirement. It’s kind of a fanciful example designed to make a point more than offer a blueprint.</li><li>But the point is a powerful one, and it’s simply that Jack’s earlier start, even with smaller amounts and fewer deposits, turned on the power of compounding much sooner. And time plus compounding can be a remarkable formula. </li><li>And that brings us back full circle to Proverbs 21:5 that you started the program with: “Steady plodding brings prosperity.”</li><li>Remember, it’s never too late to start. Sure, the best time to start investing might have been 20 years ago, but the next best time to start investing is today!</li><li>You can find more articles and investment advice at <a href="https://soundmindinvesting.com/">SoundMindInvesting.org</a>.</li></ul>On this program, Rob also answers listener questions: 
<ul><li>When does it make sense to surrender an annuity? </li><li>What are good resources to access to learn more about wise financial management and investing? </li></ul>RESOURCES MENTIONED: 
<ul><li><a href="https://www.christianbook.com/investing-handbook-managing-money-biblical-perspective/austin-pryor/9780802425041/pd/425044?en=google&amp;event=SHOP&amp;kw=ingram-20-40%7C425044&amp;p=1179710&amp;utm_source=google&amp;dv=c&amp;gclid=Cj0KCQjwspKUBhCvARIsAB2IYuuw_3GL6SF1tKhwfF3AHXVaKIf4MEm69e7q5_Bv7-A9eqA0mS7qC-saAmB0EALw_wcB">The Sound Mind Investing Handbook</a> </li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Proverbs 21:5 tells us, “Steady plodding brings prosperity; hasty speculation brings poverty.”  ﻿That’s one of the most quoted verses about investing … and with good reason.  It lays the foundation for a successful investing plan.

6 Principles for a Solid Investing Plan With Mark Biller

Proverbs 21:5 tells us, “Steady plodding brings prosperity; hasty speculation brings poverty.” That’s one of the most quoted verses about investing, and with good reason. It lays the foundation for a successful investing plan. Rob talks with Mark Biller, executive editor of <a href="https://soundmindinvesting.com/">Sound Mind Investing</a>, about 6 principles to help get you there. 
Folks are a bit antsy about stocks and bonds these days. The SMI newsletter has an article with 6 principles to help us keep a level head in turbulent times. It starts out with a great analogy about investing: Investing is like riding a roller coaster while wearing a blindfold. You can’t tell when a steady incline will give way to a precipitous decline. And while some people enjoy actual roller coasters, very few enjoy the types of sharp plunges the market has thrown at investors this year.
 There’s no way to make market volatility completely disappear — it’s an unavoidable part of investing for most people. But you can stay steady through the ups and downs by using a well-defined and disciplined investing strategy. The six principles are: 
<ol><li>Success doesn’t come from hoping for the best, but knowing how you’ll handle the worst. Since market downturns are an inevitable part of investing, your plan should account for that. The best way to do that is through diversification — which means purposely selecting a range of investments that “march to different drummers.”</li><li>Your investing plan needs to have clear-cut, easy-to-understand rules. The more specific and actionable they are, the better you’ll be able to make investing decisions quickly and with confidence. Your strategy should not only tell you what to invest in, but it should also offer precise guidance in telling you how much to invest and when to buy and sell.</li><li>Your investing plan must reflect your financial limitations. Never ignore the words “higher risk.” They mean something — namely, that there’s a greater likelihood that you could lose money. Every day, people who thought “it’ll never happen to me” find just how wrong they were. Your top financial priorities ought to be getting debt-free and building an emergency savings reserve. That’s building the appropriate foundation that makes you financially strong enough to bear the risk of loss from investing.</li><li>Your investing plan needs to keep you within your emotional “comfort zone.” Don’t adopt a strategy that takes you past your “good night’s sleep” level. If you do, you’ll likely bail out at the worst possible time. The amount of risk you take should be consistent with your “investing temperament” and your season of life.</li><li>A solid investment plan needs to be realistic concerning the level of return to expect. There are no "safe" investments that offer consistent 10%-12% returns. Return and risk are inextricably linked. Investment vehicles that offer a higher rate of return than “normal” do that because they have to in order to entice investors to accept a higher level of risk.</li><li>Your plan should encourage you to begin investing with small amounts, so you can get started as soon as possible and take full advantage of the power of compound interest. For example, Jack started depositing into an IRA when he was really young, kept it up for just 10 years, and deposited about thirteen thousand dollars total. Jill waited until she was older to start an IRA, but then deposited way more than Jack — $120,000 over 40 years. They both earned the same rate of return. Despite Jill depositing about 9 times more than Jack, his IRA ended up being slightly bigger at retirement. </li></ol>Next, Rob answers these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org: 
<ul><li>Should you invest $250,000 into an annuity that is advertised as offering an 8.5% return if you are soon turning age 62?</li><li>If you are age 57, saving for retirement and have paid off your mortgage, should you invest $150,000 you received from an inheritance all at once now?</li><li>Are corporate bonds a good investment in the current environment?</li><li>Is there any tax liability if you rebalance a substantial cash holding in your Roth IRA into other diversified investments?</li><li>If you rolled your 401k into IRA in December 2021, why would would it have significantly declined in value?</li><li>What are the advantages and disadvantages of renting versus renting to own with an option to buy in this market?</li><li>How much can you invest in I-Bonds and how long are you required to keep the money in them?</li><li>If you are in the middle of a divorce and are intending to keep the family home, should you take out a HELOC to pay your husband half the value of the home if you are on a limited fixed income?</li><li>What should you do if you were inadvertently taxed on a Qualified Charitable Distribution you gave directly to your church last year?</li></ul>Be sure to check out the rest of MoneyWise.org to connect with a MoneyWise Coach or access our books and our many free helpful resources. You can also find us on Facebook (MoneyWise Media) and join the conversation. Thanks for your prayerful and financial support that helps keep MoneyWise on the air. And if you'd like to help, just click the Donate tab at the top of the page.

Listen to MoneyWise Live each weekday at 4pm EST on Moody Radio.

MoneyWise Live

Dr. William Cavanaugh, author and professor at DePaul University, sits down with our Executive Director, Jason Myhre, to discuss the importance of seeing the hidden connections between our investing and the people behind the companies we invest in.

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Dr. William Cavanaugh discuss the importance of seeing the hidden connections between investing and people.

Our Economic Relationships are Moral Relationships

The motive behind investing is very much connected to retirement for most people. The Biblical view of work and growing old calls into question this motive and challenges the way we approach investing.

The Biblical view of work and growing old calls into question this motive and challenges the way we approach investing.

Draining the Retirement Myth with Jeff Haanen

Reflecting on the parable of the Good Samaritan, John Terrill encourages us to ask who am I responsible to in my investing?

Reflecting on the parable of the Good Samaritan, we ask who am I responsible to in my investing?

Who is my neighbor? with John Terrill

The Pflug’s share their inspirational generosity journey. Click the Generous Giving link below to learn more about this organization’s vision and purpose.

We exist to spread the message of biblical generosity in order to grow generous givers especially among those entrusted with much.

Generous Giving

Leadership & Community

The Pflug’s share their inspirational generosity journey.

Lessons From Past Bear Markets – Are You Prepared?

The Trouble with Investing for Retirement Part 1

Why I Was Skeptical of Faith-Based Investing—and What Changed My Mind

Faithful Investing (In an Age of Complexity)

No Longer Skeptical About Faith-Based Investing With Matt Rusten

A Small Beginning To Investing

6 Principles for a Solid Investing Plan With Mark Biller

6 Principles for a Solid Investing Plan With Mark Biller

Our Economic Relationships are Moral Relationships

Draining the Retirement Myth with Jeff Haanen

Who is my neighbor? with John Terrill

Generosity Story - Mark and Laura Pflug

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