Understanding some basic Investment concepts will help believers challenge their advisers on proposals to build an optimum portfolio of assets. In all things including our investments, God can be glorified and we can put money to work, subject to modest levels of risk, in a commercial undertaking, where you expect a return over a period of time that is reasonable. We do not gamble with God’s money. Gambling is to subject our resources to such a risk so great that it is possible to lose most of it for a promise of extra-normal gains.
A study suggested that 3-5% above the rate of inflation can be a reasonable gain…our objective is to keep our money for future needs and have stable resources to respond to God’s command in giving to His work, the poor and/or other possible recipients as the Spirit of God directs.
Prioritisation is important…before we invest or even give to ministry we must often be reminded of certain issues…I certainly am not there yet but I do tend to admire the unusual candour and benchmark expressed in the following extract from Christian Fellowship Church web site based in India.
“A genuine work of God may use money, but it is never dependent on money. It is dependent only on the power of the Holy Spirit. Where any work is dependent on money, it is not a genuine work of God.
Jesus’ ministry was dependent only on the Holy Spirit. He did accept gifts of money from His followers for His work (Luke 8:2Luke 8:2
English: King James Version (1611) - KJV
2 And certain women, which had been healed of evil spirits and infirmities, Mary called Magdalene, out of whom went seven devils,
WP-Bible plugin, 3). But He never asked anyone at any time for money and He never made His financial needs known to anyone but His Father. This is the way that any ministry that honours God will work even today. …and so, in the more than three decades that we have existed as a church (since 1975), we have never asked anyone for money for our needs and we have never sent out any prayer-letters hinting about our needs either. We have never taken an offering in our church in Bangalore or in any of the many churches the Lord has planted through us in India and abroad. We only place an offering-box at our church-meetings, for those who wish to give – secretly, cheerfully and voluntarily – for the work of the Lord. We have also offered food and accommodation freely always to all who attend our annual three-day conferences in different parts of India. All the elders in our churches support themselves with earthly jobs (like the apostle Paul did) and none of them is supported financially by the churches. Our books and video and audio messages on the Internet are also offered freely for anyone in the world to download and circulate to others freely. We have received everything freely from the Lord and we give it all out to others freely. … we have never been in debt at any time since we commenced our ministry. We have never taken a bank loan or a mortgage for constructing any of our meeting halls. We do not judge other ministries who do things differently from us. But this is the way God has led us. … when people ask us whether they can give to support this ministry, we ask them to go through this checklist first:
1. Are you a born-again child of God? It is a great honour and privilege to support the work of God on earth; but that privilege is given only to His born-again children (3 John 7).
2. Do you have enough money for your family’s needs? Are you sure that your giving will not put your family under any financial strain? You must take care of your family’s needs first (1 Tim.5:8). Our Father in heaven is very rich and He (like any rich earthly father) does not want any of His children to starve or suffer in any way, just because they gave Him money for His work.
3. Do you have any large debts to repay? If so, do clear those debts first. God wants His children to live restful lives, free from all debt. We must first give to Caesar what is his, before we can give anything to God, because God does not want us to give Him Caesar’s money, or anyone else’s money (Matt.22:21; Rom.13:8).
4. Do you have a clear conscience? Have you done your best to be reconciled with those whom you have hurt in any way? God will not accept any offering from anyone who has hurt someone and still not apologised to that person (Matt.5:23, 24)
5. Are you giving freely and cheerfully – and not under pressure from any man or even from your own conscience? God loves cheerful givers, not reluctant givers. He does not want gifts from those who give under pressure, or who give in order to fulfill some obligation, or who give merely to ease their conscience, or who give in order to get some reward from Him in return (2 Cor.9:7).
Please bear with us as you go through this checklist….”
The prudent investor in similar fashion cannot be investing money if deficient in his tithes/offerings, is in debt or has not kept enough to meet family needs…He should pay his debts first to God and man and take good care of his family first.
Excess resources can then be invested noting God’s ownership and sovereignty. The kingdom can use funds to advance the cause of Christ.
The key principle of prudent investment of surplus is diversifying for safety and stability/moderate growth.
Ecclesiastes 11[2] Give a portion to seven, yes, even [divide it] to eight, for you know not what evil may come upon the earth. (amp)
If you are familiar with a few good stocks that you are confident have weathered economic cycles you can stick to these. Insist that your portfolio adviser creates a conservative mix and not a hot high-growth pot….to complement your long term get-rich-slow perspective of a steward(manager) for God who is the owner. You may also consider an Ethical fund i.e. a mutual fund that limits investment alternatives to securities of firms meeting certain social/ethical Bible-based standards. Real estate is also a viable option but needs to be considered within the context of the overall asset mix and decisions on location/optimum real estate size require professional consultation. Do not move forward however on what you do not have a grasp for. Beware of impure motives, worldly-wise wisdom, powerful emotions and unclear vision that appear to lure way from the “narrow” path. Money is no excuse to embrace the broad way to destruction.
Proverbs 13[11] Wealth [not earned but] won in haste or unjustly or from the production of things for vain or detrimental use [such riches] will dwindle away, but he who gathers little by little will increase [his riches]. (amp)
Jesus reigns forever
Bode
Interestingly highly rated (AAA) bonds have historically done better than blue chip stocks. I also think that diversification makes sense only if you ‘know’ and can vet corporate management (which most of us can not do) and understand the business (Warren Buffet’s methodology). Most Ethical Funds have been big losers over the last few years. I … … See moreSee Morebelieve hearing from God is the key for us Xtians, for who [apart from insiders] would have thought that Authur Anderson, WorldCom, Enron, GM, Lloyds, RBS, Lehman Bros would go bust?
However, this message is so different from what I usually hear from other ministers – about not necessarily ‘feeling cheerful’ after you have given to God (e.g Mike Murdock). I am at that stage where I really need enlightenment in this area. Thanks Bode – for your Godly wisdom.
My general view is to seek professional help and use insights in this post to challenge the proposals u get…the best way is to hear from God and act only as directed…if you have the skills to assess industry and corporate performance indicators…then you may be able to pick potential winners…which tend to be the cash rich companies with sound business proposition…
if not..and you do have surplus funds then use professional advise and challenge the counsel…
Be conservative and not aggressive ; invest for slow growth ; avoid speculation are basic principles that can guide devt. of a sound business portfolio……
Diversification protects u from rare surprises…but there will be some…be very very sure about the stocks u chose if u elect to stick to a few winners… and constantly watch for changes in the industry dynamics/decline in performance.
Ethical funds have a “good works” ring to it…and should be considered but not entered into blindly…remember you are not aggressive about returns…
God loves a cheerful giver …and God does not need our gifts…on the other hand, we need the endorsement of God…giving out of pressure no matter how subtle is not endorsed by the Bible…God ensures the sower has enough seed to sow cheerfully…
2 Cor 9 [7]Every man according as he purposeth in his heart, so let him give; not grudgingly, or of… See more necessity: for God loveth a cheerful giver. [8]And God is able to make all grace abound toward you; that ye, always having all sufficiency in all things, may abound to every good work: [9] (As it is written, He hath dispersed abroad; he hath given to the poor: his righteousness remaineth for ever. [10]Now he that ministereth seed to the sower both minister bread for your food, and multiply your seed sown, and increase the fruits of your righteousness;)
Thanks for the scriptures – they really ministered to me. The ‘enlightenment’ I was talking about was in the area of long term investments in Companies from a Christian perspective. The general impression I get is that, since we can not out-give God, it is only reasonable [from a Christian persceptive] to look earnestly for fertile areas to sow, … See moreas this will yield a higher return on the long run both here and in heaven. Hearing from God becomes pertinent if I do not want to miss Him. I suppose there has balance between giving and accumulating in the form of investments. What do you think as Pastor?
On a slightly different point, from the example you cited above, they did not receive money from non-xtians, did not take loans or sell products online,and indeed Jesus operated exactly that way. What is your view on borrowing money for both personal and business investment purposes? Many Thanks.
God must speak to us and we must obey Him…but there is nothing to suggest that we can not accumulate surpluses in investments…the parable of the talents suggest that God does expect us to make gains…surpluses gained can be available for God to use…and future obligations. I tend to favor a mix with more flexible/liquid investments…that way i can be more obedient in making funds available as required…but this is not a rule…only my experience…
…All borrowing seems to be frowned at as a general rule…there are rare instances like when God asked the poor widow in
II Kings 4: [3]Then he said, Go, borrow thee vessels abroad of all thy neighbours, even empty vessels; borrow not a few. …
But this was paid back in a short period…God is faithful to make funds available without long-term borrowing…and equity models perhaps are preferable…as a funding structure. It seems God can instruct us to borrow…but only for a short period…and we must hear God…
The provider of funds has rights that can adversely impact the lender…even spiritually…many businesses may be in bondage of which they are unaware due to source of their funds and the unknown masters they are serving. We thank God for the blood that has redeemed us from every curse and bondage…and may God give us more grace to honor Him with our obedience…It is interesting to note that early Christians were funded only by born-again Christians …even in the new covenant – they honored God and trusted Him to provide their needs. May God give us more grace to trust him more…