Christian Financial Perspectives

Click below to listen to Episode 235 – The Basic 4 Uses of Money The Basic 4 Uses of Money Learn about a framework that offers a simple, God-honoring way to allocate every dollar with purpose. More episodes >> Bob and Shawn break down the Biblical Four Uses of Money—Live, Give, Owe, and Grow—to help believers gain clarity and confidence in how they manage the resources God has entrusted to them. Instead of wondering where your money goes each month, this framework offers a simple, God-honoring way to allocate every dollar with purpose. From covering essential living expenses to practicing cheerful generosity, listeners will discover how Scripture provides both guidance and motivation for faithful stewardship. Whether you’re looking to get financially organized or deepen your understanding of stewardship, this practical walkthrough of the Four Uses of Money will give you a fresh and encouraging perspective. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode 2 Corinthians 9:7 Each person should do as he has decided in his heart—not reluctantly or out of compulsion, since God loves a cheerful giver. Malachi 3:10 Bring the full tenth into the storehouse so that there may be food in my house. Test me in this way,” says the Lord of Armies. “See if I will not open the floodgates of heaven and pour out a blessing for you without measure. Proverbs 22:7 The rich rule over the poor, and the borrower is a slave to the lender. Matthew 22:21 “Caesar’s,” they said to him. Then he said to them, “Therefore, give back to Caesar the things that are Caesar’s, and to God the things that are God’s.” Proverbs 13:11 Wealth obtained by fraud will dwindle, but whoever earns it through labor will multiply it. 1 Corinthians 16:2 On the first day of the week, each of you is to set something aside and save in keeping with how he is prospering, so that no collections will need to be made when I come. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you struggling to manage your finances and wondering where all your money goes each month? God’s word provides a simple, yet powerful framework that can revolutionize how you handle every dollar he’s entrusted to you. Today we’re breaking down the biblical 4 uses of money that will help you gain control and honor God with your resources. Let’s get some perspective. Welcome back to another episode of Christian Financial Perspectives. My name is Shawn Peters. I’m joined by my father-in-law and co-host Bob Barber. Bob today is, I think, an exciting episode on covering the four uses of money from a biblical perspective. There’s a book on this too, right? Bob (00:46): Well, there’s a small book that Kingdom Advisors produces, and this came out about three or four years ago. The first time I heard it, I was at one of the Kingdom Advisors conferences and it just made so much sense to break all the ways that we spend money down into four ways. Shawn (01:03): Yeah, love it. So what are the four ways? We’ll go and give you guys… Bob (01:09): They just roll off my tongue. It’s like live, give, owe, grow. And they got to add up to a hundred percent, by the way. If it doesn’t add up to a hundred percent, there’s a problem. Shawn (01:19): Yeah. Somebody is embezzling some funds or, Bob (01:22): Well, it’s not… Shawn (01:23): Maybe taking your money, right. Bob (01:26): It’s not that technically. The area that we see people go over in is in the owe area. Now we’re always going to owe because we’re going to owe taxes. I mean, that’s just something that’s given. It’s like I was talking to my brother the other day, it’s like, well, you really never own your house. You have the property tax. You’re renting from the government even when your house is paid for. Shawn (01:44): Well, we get into that later, but we also cover Matthew 22:21 when Jesus is reminding like, well, this is Caesar’s face on here. Bob (01:51): So pay to Caesar what is Caesar’s. But in the live area, when you think about it, it’s all of our basic expenses. I’m going to list these. I know we’ll have these up on the screen is our groceries, clothing, housing, utilities. That’s an electric water, gas, transportation, automobiles, medical, that would be your health insurance. And when you got to go see the dentist and then your insurances that provide coverage for all that, like your home, your auto, life, and disability, everything breaks down into these four. And that live, for some, is the majority of their money. It can be from 80% depending on what your income is all the way down, if your income is really high, it might just be 25% of your income because as you talk about… Shawn (02:43): Or if you’re very aggressive and maybe putting money into some of the other categories. Bob (02:47): Well, and the thing about live, give, pwe, grow – the owe part on taxes. For those that are making a lot of money, those taxes are contrary to what our politicians tell us that the wealthy don’t pay their fair share. I mean, taxes can take as much as 40 to 50% of the income, but for somebody that’s under a hundred thousand, that’s more like an effective rate of 10 to 20% versus 40 to 50%. So these areas, they all break down on a pie. Think of it like a piece of pie, and you got four pieces of it. So the live part is really all of your budgeting items that you would think about. And this is important that as Christian believers that we provide for our families and that we see that all these expenses are met. There’s a good scripture that goes with this. Shawn (03:36): There is, I was just about to segue into that. I Timothy 5:8, “But if anyone does not provide for his own family, especially for his own household, he has denied the faith and is worse than an unbeliever.” So I wish scripture would be more blunt sometimes on what God’s really trying to tell us. Bob (03:54): This has been really convicting to me as a godly husband, dad, and now grandpa, that I make sure my family is provided for first. As we look at these four pieces of pie, you’ll see that if one area is too much, another area has got to be less. So it’s about giving. And that needs to be part of the equation because you and I both have said this many times, giving it breaks the bondage of selfishness. Shawn (04:24): Amen. That’s true. And what percentage range would you say this usually is or should be? Bob (04:31): Between 10 and 20%. Shawn (04:33): Gotcha. Bob (04:33): Yeah. The 10% coming from scripture, Malachi 3:10, it says, “Bring the full 10th or the tithe, the full tithe into the storehouse so that there may be food in my house.” So one place in scripture, remember what it says, we can test God, nowhere else are we supposed to test him, but God says we can test him in this way. And then he goes on and says, “See if I will not open the flood gates of heaven and pour out so much blessing you won’t have enough room for it.” You won’t be able to measure it. Shawn (05:04): Well, it was 10 to 20%. But keep in mind, you’re more than welcome to give more than that. I know I’ve heard of some leaders in the faith, I can’t remember the specifics, but it was somebody from Focus on the Family, or maybe it was Billy Graham or something like that. But there were different people that what they did is they had a certain amount of income, but then when they were writing additional books or putting things out, and they effectively capped themselves to where, okay, this is how much I’m making. Anything from the proceeds of selling these books or these other things, like a hundred percent of it’s going to go back to the church or to ministry. And so for them, that number percentage for give kept getting bigger and bigger and bigger. Bob (05:48): It’s gotten up. I’ve heard people getting up as much as high as 80%. The thing is, in that case, you’ve learned how much is enough, and we teach that, that you’ve got to understand how much is enough. Shawn (06:03): Exactly. Okay, so couple scriptures here. Bob (06:06): Yeah, yeah. Shawn (06:07): 2 Corinthians 9:7, “Each person should do as he has decided, in his heart, not reluctantly or out of compulsion, since God loves the cheerful giver.” Bob (06:17): Giving needs to be done from the heart and it’s volunteer. No one’s putting an ax to your head to do this, but it does release the selfishness. And then we mentioned the Malachi 3:10, which is a very, very good scripture. And there’s others, there’s scriptures throughout that talk about this in Matthew where Jesus was talking about when you feed the hungry and the poor, whatever you do for the least of these, you’re doing for me. Shawn (06:40): Exactly. Okay. That’s right. Alright, so our third category or section, Owe. Bob (06:44): Yes, that’s a big part. Shawn (06:47): Including debt, taxes, income…debt and taxes. Bob (06:52): That can be a huge part. I mean, like I said, taxes can be as much as 40 or 50%, but the average person, the effective tax bracket, and what I mean by that is the first 20,000 or 30,000 you make is a 0%, but that can be around 10 to 12% for the average person. But nowadays, remember when I first started in the financial business back in 1984 when I was getting into finance, and a mortgage should be no more than 25 to 28% of your income. But I’ve heard it’s gotten as high as 30 or 40%. Shawn (07:25): You mean the payment that you’re making of your monthly income percent. Bob (07:30): That’s correct. Shawn (07:30): Percentage, exactly. Bob (07:30): Yeah. So when we say owe, it breaks down into two areas, taxes and debt. Now you think about it, if your debt is too high, it’s going to affect your living and it’s going to affect what you can give. Shawn (07:43): That’s right. That’s true. Bob (07:44): But when we think about debt, that’s your mortgages, that’s your auto loans, college debt for a lot of people. And personal debt like credit cards, which the interest rates are just ridiculous. Shawn (07:56): Yeah. Well, on the taxes you’re talking about taxes on income and what the average rates could be. But if you actually add up the, okay, what are you paying from payroll taxes and then plus income tax, plus sales tax plus property tax plus for money going to the next generation, all the estate tax and everything else, I’m surprised we haven’t revolted sooner. Right. I mean about, our founding fathers, what was it like 1%? Bob (08:21): Our founding fathers would’ve never thought of this, but taxes, it is what it is. And scripture tells us they tried to trap Jesus in this, and he said, well, should we pay taxes to an ungodly government? And they came to… Shawn (08:40): They gave him a coin, right? A coin. Whose picture? “Caesars, they said to him, then he said to them, therefore, give back to Caesar the things that are Caesars and to God, the things that are God’s.” Bob (08:52): That’s Matthew 22:21 if any of y’all want to look that up again. Under the owe part, the rich rule over the poor. This is from Proverbs 22:7, “The rich rule over the poor and the borrower is a slave to the lender.” So the higher up in debt, and I love this old country boy that told me that one time, you’ve heard me say it. I’ve never seen anybody hurt by being debt free. Most people I know that are in their sixties now, they don’t have any debt. If they do, it’s a small amount on a mortgage. Very, very small amount. And we have a mortgage that we took out a couple of years ago at 2%. So I’m having a hard time going and paying that off when I can make double that in a money market. Shawn (09:37): And that’s probably for a different episode. But then you’re kind of getting into the, sometimes it’s okay to have debt, but like you said, it doesn’t hurt you. Bob (09:46): And debt’s not sin. Shawn (09:48): To be debt free. Bob (09:49): But you’ve heard us always emphasize that if you’re going to have debt, have it on an appreciating asset, not a depreciating asset, then you have the interest you’re having to pay, plus the asset is depreciating, which is an automobile. Shawn (10:00): Exactly. Alright, so number four and last one for today is grow. And we’ve got this around 10 to 20% of income. Bob (10:10): That’s where I like to see people. And there’s so many great areas nowadays to grow that money, savings, investments, tax deferred retirement plans like an IRA 401k, 403B. Shawn (10:23): Depending on the employer plan that you have. Bob (10:26): Right? Yeah. And as you know, many of these 401Ks or TSP plans, they’re matching what you put in, so you’re making a hundred percent return from day one. Shawn (10:37): Exactly. Bob (10:37): If you’re putting in 3% of your salary and they’re putting in 3% or 6%. I heard many even say 7% or 8% they’re matching. Shawn (10:44): So there’s your pro tip for today’s episode. If you are not currently at least contributing the amount that your employer will match, start doing that yesterday because you’re leaving money on the table, whether that’s a 3% match or 6, 7, 8%, or sometimes it’ll be 100% of the first 3% and the 50% of the next year. Just make sure you max that out because you’re just leaving money on the table regardless of returns. Bob (11:14): And there are scriptural reasons for growing money. Proverbs 13:11 says, “Wealth obtained by fraud will dwindle, but whoever earns it through labor will multiply it.” And another version of that is, “Whoever saves little by little makes it grow.” Shawn (11:27): Right. And then 1 Corinthians 16:2, “On the first day of the week, each of you is to set something aside and save in keeping with how he is prospering so that no collections will need to be made when I come.” Bob (11:40): So there you have it. You know why I did this time of year? Shawn (11:44): You mean around Thanksgiving and Christmas? Bob (11:45): Yeah, exactly. The new year. Exactly. So as you’re spending money, think there’s only four ways live, give, owe, grow; live, give, owe, grow. And you get that in your head and you start realizing any area of there that I go over is going to hurt another area. Shawn (12:01): It means something else or multiple other areas. Bob (12:03): It has to add up to a hundred. Shawn (12:05): Exactly. Bob (12:05): Yeah. If it adds up to more than that, there’s a problem. Shawn (12:08): Yep. Yeah, there’s an accounting error. All right. Well that’s it for today. Thank you so much for joining us. If you have questions, feel free to reach out to us www.christianfinancialadvisors.com. You can also call or text us at 830-609-6986. Thank you so much for joining us and God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 234 – 3 Money Questions Every Christian Needs to Answer (But Most Never Do) 234 – 3 Money Questions Every Christian Needs to Answer (But Most Never Do) Learn how to create a plan rooted in faith, generosity, and eternal impact—so your finances can become a powerful tool for Kingdom building! More episodes >> In this episode, Three Money Questions Every Christian Needs to Answer (But Most Never Do), we explore what Scripture teaches about stewardship through three vital questions: Who owns it all? How much is enough? And how much can I give away? Drawing from passages like Psalm 24:1, Philippians 4:11-13, and Luke 12:16-21, listeners are challenged to see money and possessions as tools for God’s purposes rather than personal gain, finding true contentment in trusting Him as the ultimate owner. This episode blends Biblical wisdom with practical financial insight to help believers align their money with their mission. Learn how to create a plan rooted in faith, generosity, and eternal impact—so your finances can become a powerful tool for Kingdom building! HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode PHILIPPIANS 4:11-13 I am not saying this because I am in need, for I have learned to be content whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do all this through him who gives me strength. PSALM 24:1 The earth is the Lord’s and everything in it. HAGGAI 2:8 YThe silver is mine and the gold is mine,” declares the Lord Almighty MATTHEW 19:16-22 Just then a man came up to Jesus and asked, “Teacher, what good thing must I do to get eternal life?” “Why do you ask me about what is good?” Jesus replied. “There is only One who is good. If you want to enter life, keep the commandments.” “Which ones?” he inquired. Jesus replied, “‘You shall not murder, you shall not commit adultery, you shall not steal, you shall not give false testimony, 19 honor your father and mother,’[a] and ‘love your neighbor as yourself.’[b]” “All these I have kept,” the young man said. “What do I still lack?” Jesus answered, “If you want to be perfect, go, sell your possessions and give to the poor, and you will have treasure in heaven. Then come, follow me.” When the young man heard this, he went away sad, because he had great wealth. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Bob (00:00): I’m going to make this statement again and I want everyone to really hear it. Inheritance should be given out at the same speed it was earned. Shawn (00:18): Welcome to Christian Financial Perspectives. My name is Shawn Peters, and today I’m joined by Bob Barber. And today we’re going to be covering three financial questions Christians need to know the answers to. And so this was developed by Bob and I’m going to pass it over to you, Bob, to give us a little bit of an intro. Bob (00:36): Well, Shawn, as I was coming up with this, it’s really pretty simple, these three questions, but they’re extremely important questions that pertain to our finances that Christians, they really need to understand and they need to know the answer to. And we’re going to go over each one in detail, but just to give you a real quick synopsis of it, the first one is who owns it all and then how much is enough? And that last one is how much can I give away? And we’re going to get into those different areas because before we get to the last one is how much can I give away? Of course you want to make sure that your family’s taken care of, and we’re going to go over a lot of detail there about things that you should do as far as financial planning. Shawn (01:19): Got it. Okay. Well, our first section on this is going to be who owns it all. Bob (01:27): You’ve heard me mention this many times on our program and one of my favorite scriptures, and really, it’s the basis. It’s the foundation for all of my financial planning as a Christian is who owns it all. And Psalms 24:1 says, “The Earth is the Lord’s.” And it’s interesting right after that, “and everything…” Shawn (01:51): “Everything in it.” Bob (01:52): And then there’s Haggai 2:8 that says, “The silver is mine and the gold is mine. Declares the Lord God Almighty.” When you think of everything, that’s a lot, right? I mean that is for us as a Christian and being that we’re making Christian Financial Perspectives here, that includes all our investments, all our savings, and includes our houses, our cars, our boats, our RVs, airplanes if we got ’em. It includes every single thing that we have. And that is truly a spiritual awakening I see. As you’ve heard me say, also, I’m Baptist, so we go under, when we get baptized, we go all the way into the water. But it seems like a lot of people, I think they spiritually, they hold their wallet outside of the water. They’re like, you couldn’t have everything, Lord, but not that. Shawn (02:54): When you get dunked, you’ve got your hand raised out of the water with the wallet, right. Bob (02:59): Yeah, yeah, yeah. Shawn (03:03): That’s a big one. I mean, if we can’t get through this first one and be in agreement that who owns it all? God owns it all. So once we get through that one, then we go into, okay, number two, how much is enough? Bob (03:18): Our newsletter comes out once a month. I wrote about this just a couple months ago. How much is enough? And this has been a question that has been posed to me over and over and over through Kingdom Advisors. And Ron Blue was the founder of Kingdom Advisors. And this has been heart issue as well. How much is enough? Because in our society and our world, especially in America, once we get to a certain point, well, it’s going to be just a little bit more, it always seems like it’s just a little bit more, but for the Christian, we need to understand how much is enough. But Shawn, we got to answer a lot of questions before we get to that, don’t we? Shawn (03:56): That’s true. Well, you have a great scripture for this one that I’ll read for us real quick. Philippians 4:11-13, “I’m not saying this because I’m in need, for I’ve learned to be content whatever the circumstances, I know what it is to be in need and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do all this through him who gives me strength.” Bob (04:29): Paul really had the understanding of how much is enough, didn’t he? Shawn (04:33): Yeah. And how much is enough? Definitely. He was not saying just a little bit more, which is what the secular worldview says, that it’s always just a little bit more, and it’s dangerous for us as Christians to subscribe to that. And I know you mentioned in our episode for today, Luke 12:16-21. Do you want to talk a little bit about that? Bob (04:59): Well, that’s the parable of the rich young ruler. And he comes to Jesus because, “I’ve done everything. I’ve followed all the laws, all the 10 commandments I give, I do everything.” And Jesus said, “Okay, then go sell everything you have and come follow me.” And that’s when that ruler went away and he goes, “Man, you’re asking way too much. You’re asking for 100% obedience here.” Shawn (05:30): That’s the one where it said that he went away sad or sadly, right? Bob (05:34): Yeah. He went away sad. Shawn (05:34): Yeah, yeah, man, it’s more about that, about wanting more and more and more. Bob (05:45): So I came up with a list because when someone thinks about how much is enough, I think it’s good, especially from a financial planning perspective, that we think about these things and we will help you with this. Christian financial advisors will come in and help you put together all of this. These questions got to be answered when you think about how much is enough – what are your financial goals, wants and needs? Shawn (06:11): Yep. Kind of like this idea of how much is enough. Well, it does depend on each person because this first one, your goals, wants, and needs. Well, what are your goals when you do retire? What are your goals? What are your plans? Are you going to be traveling a lot? Are you going to be involved in doing some sort of ministry work or are you planning on doing something maybe bivocational? I know we have at least one client that comes to mind that he works bivocationally. So he’s a pastor for about six months out of the year at a church. And then the other six months out of the year, he and his wife will, they have an rv and they travel around and they’ll usually spend a month or so at each location. And the six months that he’s not working as a pastor, he’s offering handyman services and just doing stuff around the campsite so they get free or very inexpensive hookup. And then while they’re there, he and his wife also do a campsite church and they do bible studies for people who are there camping that want to participate. So their how much is enough is a lot less than maybe somebody who’s not working at all. And they travel a lot, like airfare and nice places. So that’s kind of your first thing you got. What are your goals, wants, and needs. Then you kind of backtrack to figure out, well, where do you need to be? Bob (07:43): That reminded me of a camp we love to go stay at in Colorado Springs, the Christian capital of the world when it comes to all the international ministries called Glen Eyrie. And they will have people that come in during the summer months to help run Glen Eyrie. And it’s just a really neat place and there’s a lot of retirees that fit that exact description you just mentioned. So let’s get into these others. I’ve got a little list here, and I think it’s good that when you think about how much is enough, you’ll feel comfortable after we go through this list. What is your time Verizon for investing? That’s long term. Usually if you’re retired, that’s till the day you pass and go be with the Lord. You determine what… Shawn (08:26): And how long do you have between now and then? Bob (08:28): Well, exactly. Exactly. And we look at things like, well, how long did your parents live or your brothers and sisters? We try to figure how exactly what do we think, based on genetics, is going to be your life expectancy. Then we look at what’s your risk tolerance for down markets, your health condition and life expectancy. These are lists of things I’m going over. What’s your investment objective? We look all of your assets and your liabilities coming up with a balance sheet, a net worth. What are your monthly income needs going to be to meet expenses? And this is pre-retirement and post-retirement. Then we get into your giving goals. Then your moral beliefs such as what, how do you feel about biblically responsible investing, which we’ve had entire podcast and videos on that. Shawn (09:22): Yeah, I know we have a three part series. If anyone wants to go back and take a look at those on biblically responsible investing or BRI. Bob (09:32): And know when you have three or four children, sometimes you’ll have one that may have special needs like physical or mental needs. Maybe they’re handicapped in one of those areas. And this has to be figured into a financial plan. So when you’re thinking about how much is enough, don’t worry. We’re going make sure that you’re covered for this and then your estate planning goals and needs. We want to do a complete, if we don’t do it, somebody to help you do a complete financial plan that covers all these topics that will help you get into this third, probably the most important question, what’s the next one, Shawn? Shawn (10:11): Number three is how much can I give away? Bob (10:15): So once you’ve done all that and you’ve nailed down how much is enough and you’ve defined that, then through prayer and scriptural understanding and guidelines, you can shift your financial focus. And I love how you always say this kingdom building, shifted to kingdom building using all the financial tools available today. Shawn, I’ve had conversations in just the past several weeks where we have literally generated for the kingdom in excess of $2-3 million. I had another conversation just yesterday by using… Shawn (10:56): Is that through the donor advised funds? Bob (10:58): Right? Yep. Yep. And it’s just a great thing to do with your IRA money. Shawn (11:06): Yeah. Bob (11:08): Because your kids are going to have to pay taxes on all of that, a hundred percent of that, and they got to take it all out within 10 years. And if your kids are doing very well financially, this is a great, great plan. We’ve got this set up for ourselves. We call it our Barber family giving fund, and we’ve already got it set up and I fund it at the end of the year. Sometimes I have large amounts I want to fund and I don’t know who I want to give it to yet. And we can help you set up that donor-advised fund, help you set up that estate plan, help you set up that trust so that we really can answer these three questions for helping you and to guide you through this. Shawn (11:46): So Bob, as a good example of that, please correct me if I’m wrong, but on your estate planning, so you three daughters, I am a little opinionated on which one I think is the best because I’m married to the oldest, but with your three daughters, instead of dividing the estate into three parts, you actually have it divided into four parts, almost as if you had four kids with the fourth part being associated with that donor-advised fund and the charitable giving to church and ministry. So even after you and Rachael have passed away, it’s the gift that keeps on giving even in your passing that you’re still able to, through this proper planning, help to build the kingdom. Bob (12:37): Yep, that’s right. Shawn (12:38): Which I think is awesome. So anyone listening, that would be one way in your estate planning if maybe during your lifetime, maybe you aren’t as generous as you’d like to be just because there might be some other circumstances. But that would be something that if you set it up right and think of it as like an extra kid, an extra beneficiary, and just set up like that with whatever’s left. Bob (13:09): And I always mention with that, we’ve mentioned this time and time again, you can’t mention it too much, it’s that you want to have pre inheritance experiences with your children and using the parable of the talents. As an example, I like the scripture of Luke 16:10. It talks about if you’re good with a little, you could be good with a lot. And I think that really needs to be defined under that “How much is enough and how much is enough to leave your children?” And if your children don’t have wisdom, they’ve got to inherit wisdom first. They’ve got to have wisdom before they get a large inheritance. An inheritance should always be given out. And I’m going to make this statement again and I want everyone to really hear it. Inheritance should be given out at the same speed it was earned. So if it took you 25 years to get to that million or 2 million mark, that inheritance needs to be given out at the same rate, not just all at once. Shawn (14:10): Especially if you do this Luke 16:10 test with your heirs, and they don’t really pass the test, then even more so it’s very important that you structure your estate planning and how that is going to be distributed out to them to where it does have to be over a longer period of time. Or I think you’ve mentioned before, Bob in maybe some other episodes, the idea of maybe having some sort of ratio of, okay, well for every $1 that your heir has actually put away in their IRA and other actual retirement savings and assets, that they get $2 or $3 earned from their inheritance as a way to encourage them to actually show that they can be responsible. Bob (15:02): It’s kind of like the 401k match. Shawn (15:05): Yeah, exactly. For your parents. Bob (15:09): In hearing all this, this is a lot when you think about it, but again, just break it down to these three questions. Who owns it all? How much is enough? How much I can give away? And our financial advisors, with Christian financial advisors, can help you, and we’re fiduciary based. We don’t charge commissions. We can help you answer these three fundamental questions and we’ll guide you through that and we’ll guide you with scripture and we’ll guide you with prayer because we believe God owns it all, and all financial decisions for Christian are what, Shawn? Shawn (15:45): Spiritual. Bob (15:45): Spiritual decisions. That’s right. You’ve heard me say that. All financial decisions for Christian are spiritual decisions. So we’re easy to get ahold of. You can call or text us at (830) 609-6986 during a normal business hours or visit our website www.christianfinancialadvisors.com and you could schedule a free consultation that’s from there to start this process and discuss it. Shawn (16:14): And I would just encourage anyone listening, watching, that thinking about these three questions, coming at it from this perspective, ofwho owns it all? How much is enough? How much can I give away? It gives a lot of peace to people that follow this. Like Bob, for years now because you’ve been doing this longer than I have, but our clients that look at it this way, the stress and anxiety of what’s going on right now in the markets, what’s going on? What does the performance look like? Is it better, is it worse? A lot of those things kind of almost fade away, or at the very least, they’re much more muted because you’ve done the right things to know, “Hey, I don’t need to chase these returns. I don’t need to worry about a lot of this noise because I’m focused on the right things and we’ve done the work.” So that’s just something I think is very encouraging if you take anything away from this today, Bob (17:18): That was very well put and said, I’m glad you added that on. Shawn (17:23): Well, thank you so much for joining us today. As always, God bless and if you have comments, questions, or like Bob said, want to schedule a meeting with us, reach out and we’d love to hear from you. Take care. Bob (17:35): Take care. Bye. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 233 – Supporting Success: Navigating Your Child’s Education Supporting Success: Navigating Your Child’s Education Discover six biblical principles to help you steward your child’s education wisely—without breaking the bank or missing God’s unique calling for their life. More episodes >> How can Christian parents wisely navigate the rising costs of education while honoring their child’s unique, God-given design? In this episode of Christian Financial Perspectives, Shawn and Matthew share six Biblical principles for stewarding your children’s education—from discovering their strengths to choosing the right savings strategies. You’ll learn about state-funded programs, alternatives to traditional college paths, and smart financial tools like 529 plans. Whether you’re just starting to plan or already feeling the pressure, this episode offers practical guidance and encouragement to steward both your finances and your children’s futures with faith and wisdom. HOSTED BY: Shawn Peters CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Matthew Barrovecchio Shawn Peters Bible Verses In This Episode PROVERBS 22:6 Train up a child in the way he should go, and when he is old he will not depart from it. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you overwhelmed by the rising cost of education and wondering how to best prepare your children for their future without breaking the bank? Well, today we’ll explore six biblical principles for stewarding your children’s education from discovering their God-given talents to smart saving strategies that could save you tens of thousands of dollars. So let’s get some perspective. Welcome to Christian Financial Perspectives. I’m Shawn Peters, and today I’m joined by Matthew Barrovecchio. Matthew, we are tackling a topic that keeps many parents up at night how to wisely steward our children’s education. Matthew (00:44): Yeah, that’s right, Shawn. As Christian parents, we are in a position where we want to provide the best opportunities for our children while also being the best stewards of the resources that God has entrusted us with. And a key to approaching this educational process and decisions is not just with earthly wisdom, but also biblical principles. Shawn (01:05): And the great news is that there are more options and opportunities available today than ever before. Matthew, let’s start with what scripture tells us about training up our children. Matthew (01:15): Yeah, absolutely. So the foundation today is going to come from Proverbs 22:5, which says, “Train up a child in the way he should go, and when he’s old, he will not depart from it.” Shawn (01:27): I love that verse because it emphasizes training them in their way, not necessarily our way or society’s expectations. Matthew (01:37): Yeah, exactly. The verse is often misunderstood. It’s not saying train up child in the way that you want them to go, but train them according to their God-given design, their natural bent, and their unique calling. And when we do that, we’re going to continue to walk in the path throughout their life and help them along the way to fulfill what God has designed them to fulfill and be. Shawn (01:59): Yeah, that’s such an important distinction and it really sets the stage for our discussion today. We’re not just talking about funding education, we’re talking about partnering with God to discover and develop each gifts he’s placed in each of our children. Matthew (02:15): Yeah, absolutely. And so we’re going to do so through a few different principles. There’s six of them that we’re going to dive into. The first one here I have labeled as program awareness. So many parents don’t realize at the high school level and below there are significant education benefits that the states offer today. It’s not just about public school funding anymore. Shawn (02:38): Okay. So what kind of programs are we talking about? Matthew (02:42): Yeah, so many states now offer assistance for homeschooling, for co-ops, private schools, et cetera. For example, there are states that have tax credits and deductions or for education, some of them, Illinois, Indiana, Louisiana, Iowa, Oklahoma, Arizona offers scholarships up to I think $7,000 per student. And the great state of Florida has programs that redirect education funds from the state, and currently it’s about $8,000 per student per year. Shawn (03:17): Wow. That’s substantial. So parents really need to research what’s available in their specific state? Matthew (03:24): Yeah, absolutely. The programs differ from state to state, but they can significantly reduce the burden of providing quality education for your children, especially if you’re doing a homeschooling route or something that’s maybe not the norm via public school and not doing it. It’s like you’re leaving money on the table if you don’t investigate what your state does offer and try to take advantage of it. Shawn (03:46): And that leads us perfectly to your second principle, child awareness. Talk about what that means. Matthew (03:54): Yeah. Child awareness is about investing the time and attention to truly understand and know what your child’s strengths and God-given passions are. It’s not just about academic subjects, but understanding how God has designed them and wired them. Do they tend to be more hands-on learners? Do they excel in the more creative aspects of life? Are they natural problem solvers and all things to observe and consider? Shawn (04:22): And this requires intentional observation over time, doesn’t it? Matthew (04:27): Yeah, precisely. Yeah. We need to watch them play. We need to know what energizes them. We need to notice what makes them excited and what comes naturally to them versus things that they struggle with. Some of them naturally are entrepreneurs. The child that wants to do the lemonade stand several times in the summer, others are caregivers, others are builders, so on and so forth. Part of our job is to really discover these and nurture them, these God-given inclinations that they have. Shawn (04:57): Which brings us to point number three, and this might be challenging for some parents. Forget your expectations. Matthew (05:04): Yeah, exactly. So it’s probably one of the hardest ones for parents to adopt, especially in American culture and especially from an earthly perspective. But we need to have a plan that is according to the type of the career that the child wants and that the child’s passions aligned with and not pressure them down a path that we as parents want for them. So maybe someone’s a doctor and has always envisioned their child following in their footsteps, taking over the family business and sharing that passion with them. But God has certainly potentially called them in a different direction to be a teacher, a mechanic, or something else. Shawn (05:47): I think of my own father with my parents’ upbringing. His opportunities were a little more limited. So as I remember, he would always say he knew how to move dirt and farm, so that’s what he did. But he wanted myself, my brother, my sister, to have more of an opportunity. So if we decided we wanted to fall in his footsteps, he’d love to have us, but also if we wanted to pursue a completely different career, that he was happy that he was able to give us that chance. And it takes you real humility as a parent, doesn’t it, to be okay with not having your kid follow in your own footsteps? Matthew (06:26): Yeah, it does. It does. We have to remember that our children don’t belong to us. They belong to God, and he has a unique. Shawn (06:32): Well, they belong to God first. Matthew (06:33): Yeah, absolutely. Yeah. So he has a unique plan for them, for each of them individually, and our role is to help them discover that and to prepare them for that calling and not impose our own dreams or ambitions or maybe the calling that the Lord has on our life unto them. Shawn (06:54): Yeah. Well, your fourth principle is to go against the trend in a culture that pushes everyone toward four year colleges. What does that look like? Matthew (07:06): Yeah, yeah, great question. So it kind of aligns with the progression of these topics. We need to make sure that we are matching the education needs to the career that the child wants. So the truth is, this isn’t 1995 anymore. Not everybody has to go to a traditional four year college or university. My wife Ann and I, right, my wife Ann, and I have five children and I can say with confidence that likely up to four of them may not go to a traditional college or university just given where their passions are right now. And so it’s really something to focus on and over the course of time, make sure that you’re observing and stewarding your children in that way. The one big beautiful Bill act that was recently signed actually expands on eligible education expenses for 529 plans to include career training and apprenticeship expenses. So even in law and legislation now we’re starting to see things expand when we think about educational expenses. Shawn (08:12): That’s fantastic. So there are more legitimate pathways than ever before. Matthew (08:17): Yeah, yeah, exactly. Community college, at least for the first couple years, can be a very viable and cost-effective option. Trade schools can be very low cost as well, relatively speaking, to get the required education needed. Research shows that there is a correlation between graduating college and lifetime income and wealth, but interestingly enough, I wasn’t able to find any studies that shows that there’s a correlation that’s strong between going to a top private university or an Ivy League school. Shawn (08:50): I’m personally not surprised by that just because of some of the stuff that been reading myself and other research, but I’m sure it’s surprising to many people that are watching or listening. Matthew (09:02): Yeah. Well, I think it’s very career dependent as well. So if you want to be in the medical field, then going to a particular university could be beneficial. If you want to work for one of the top law firms in New York City, going to Harvard Law or something like that definitely would be helpful from a networking perspective to get you that first job. It can be critical, but for most of us, ultimately what’s going to result in success is your ability to work hard, do great in the job that you have, and that’s regardless of what school you went to. Shawn (09:33): Yeah, and like you mentioned with the community college and things like that, one of the things that I learned before I went to college, because I have an older brother, is that you don’t have to do all of your school at the school you’re wanting to graduate from. So if there is something with the networking or whatever the requirement might be, doing clep tests and summer classes or AP classes in high school, going to the community college for, like you said, for the first couple years, really, it’s just as long as your transfers, you transfer your credits and everything, you finish the last year or two at whatever that school is. Well, guess what? Your degree, your diploma is going to show from that school, not the community college. And that still at the very least, saves a lot of money. Matthew (10:19): Exactly. Shawn (10:19): Well, this leads us into your fifth point about opportunity. There are some unique opportunities in today’s economy, aren’t there? Matthew (10:29): Yeah, absolutely. There’s a fascinating trend right now. The baby boomer blue collar workers are retiring in massive numbers, and that will continue for at least a little bit while longer. And there’s a lot of younger students who really just want to learn coding, AI development, et cetera. Shawn (10:47): I know Mike Rowe from Dirty Jobs, he’s been, he has been pushing for this thing, and I know he’s tickled pink we’re seeing more of this boom in people. Yes, I know there’s a lot of younger students, but there’s also this other movement of kids saying, “Well, yeah, I want to go do stuff with my hands,” which is great, but it definitely creates an interesting dynamic in the job market. Matthew (11:15): Yeah, exactly. AI is going to replace a lot of traditional desk jobs that the baby boomers have held, and it’s I think, a good solution for, “Oh, what are we going to do when they all retire?” But it’s going to be a lot more difficult for AI to replace jobs like plumbers, electricians, HVAC technicians, which are very much needed in Florida and Texas and for the south, healthcare workers, et cetera. They need a physical presence in these jobs. Problem solving with real world environments and human interaction that AI can’t replicate. Shawn (11:48): There would have to be significant progression and advancement in robotics coupled with AI for that kind of stuff to really get touched anytime soon. So there’s actually great opportunity for the younger generation in these fields. Matthew (12:07): Oh yeah. Oh yeah. Tremendous. Tremendous. Yeah. Many of these trades already offer excellent income potential, and that’s just in my opinion, likely to grow potentially job security, satisfaction of working with your hands and to solve real world problems. Plus, there’s a lot of these trade programs that can be completed in just a couple years, maybe even less and less of a cost than the traditional college or university for four years. Shawn (12:32): Alright, well finally, let’s talk about the practical side, saving for education. There’s point number six. What’s your approach here? Matthew (12:42): Many people were waiting for us to get to this topic. That’s probably what they thought it was going to be about from the beginning. The key principle here is really anything with investing, do it early and do it often. You might’ve remembered, we did a podcast a little bit ago on the power of compounding. That principle really applies to education savings. The earlier you can start, the more time you have for your money to potentially grow, that could be even before the child is even born, you start saving in some kind of vehicle. Shawn (13:09): I believe the requirements on that, especially for 529, you have to have at least one kid, but for the second and the third and however many you have, as long as you already have at least one, you can still technically open up that account or even transfer to the second kid kind of thing. Right? Matthew (13:29): That’s correct. Yeah. But there’s several options as well. Right. So 529 plans… Shawn (13:33): Yeah, sorry, I didn’t mean to get into stuff, but what are the vehicles that parents should consider? Matthew (13:39): Yeah, so 529 plans, one of them, UPMA accounts, uniform transfer or gift to minored accounts is another traditional use. Just a plain vanilla joint account in the parent’s name that’s earmarked for college education is something else that can be used. Shawn (13:54): Yeah, like you said, even before the child’s born, especially with the joint account with the parents, well the parents can open as many joint accounts as they want. So that is definitely getting an early start though, if you open up a joint account for college before your kid’s even born. But I imagine there are some considerations about financial aid, correct? Matthew (14:14): Oh yeah. It’s crucial, and this has been somewhat of a moving target over the past few years, but being mindful of the impact of FAFSA applications and financial aid is really important. The account that is in the child’s name or in the parent’s name or the grandparent’s name can significantly impact the financial aid calculations. So the individual needs to plan accordingly and understand what the rules are and understand that there’s the potential for the rules to change between now and when your child goes to college or whatever education they pursue. Shawn (14:48): What happens if there’s money left over in 529 plan? Matthew (14:52): Yeah. Yeah, great question. Hot off the press. So recent provisions make having to fine tune and be really exact with 529 savings. There’s less pressure around it now. So leftover assets in a 529 plan can be moved to another child’s 529 plan. You could simply change the beneficiary, which has been in the place for a while now, but recently you’re now able to, under certain conditions and you have to meet certain criteria, but it can be rolled over to a Roth IRA for that child. Again, there’s different requirements. So you want to do your research, but account has to be open for at least 15 years. The assets that are being rolled over have to be in the 529 plan for at least five years. You’re limited every year to IRA contribution limits. There’s a maximum, I think it’s $35,000 lifetime for this. So a lot of criteria to meet, but it’s an option that wasn’t there prior. And I think it’s just speaking to taking the pressure off of this aspect and freeing up some of the possibilities if either A, you happen to save too much to a 529 plan, or B, the child doesn’t use all the funds that were saved. Shawn (16:09): So there’s flexibility built into these plans that many parents don’t realize. Matthew (16:12): Absolutely. Yep. Shawn (16:15): Alright, well Matthew, let’s bring this home with some practical steps for our listeners and viewers on how they’re taking this that they can take with them this week. Matthew (16:24): So first thing would be to research your state’s education programs. Don’t assume that what’s available, you might be surprised to change frequently, more and more states, it seems like each year are adopting things like this. And so you don’t want to miss out on potential benefits that are available to you. Shawn (16:39): Okay. Well that sounds like something they can do this weekend. Matthew (16:42): They could, absolutely. Yeah. So the second would be spending intentional time observing your children. You’re probably already doing this, but do this now with this topic in mind. What are the things that they get engrossed in where they just lose track of time? What are they natural gravitating towards? Yeah, exactly. Exactly. Shawn (17:02): Yep. Gotcha. So what do they naturally gravitate towards and start documenting those observations. Matthew (17:09): Yeah. Make note of it. Shawn (17:10): Got it. And for parents who are already feeling pressure about college prep, what would you say to them? Matthew (17:16): Hey, just take it. Yeah, yeah. James 1:5 says, if we don’t know what to do, we should ask God. Right? So if there’s any kind of question, we need to take a step back, find a place of silence before the Lord and pray about it. What is God’s unique plan for each child that is under your care? A career counselor could be someone who you might want to consider scheduling some time with to have aptitude tests to help identify natural strengths and interests of your child if those strengths and interests aren’t obvious. Shawn (17:50): Alright. And what about the financial planning side? Matthew (17:52): Yeah, if you haven’t started yet, start now. Even if it’s a small dollar amount each month, meeting with a financial advisor can be very helpful, of course, to discuss whether a 529 plan, an UPMA, or other vehicles makes most sense for your goals and situation. And remember, the goal isn’t necessarily to pay for everything. It’s to be a really good steward of what the Lord has entrusted you with and give your children the best foundation possible. Shawn (18:16): Amen. Well, Matthew, this has been incredibly helpful. And let’s recap those six principles for stewarding children’s education, if you don’t mind. Matthew (18:26): Yeah, yeah, absolutely. So program awareness is first, know what benefits are in your state. Second, understand your child and be aware of their unique gifts that the Lord has given them. Third, forget your expectations. Let God’s plan take the precedence and lead. Fourth, go against the trend. Match your education to your child’s calling, not what culture and community pressure might influence you to do. The sixth thing is recognize the opportunities that are in today’s economy, especially in the skilled trades. And lastly, save early and often in the right vehicles for your family situation. Shawn (19:02): Well, the heart of all of this is really trusting God with our children’s futures while being faithful stewards of the resources he’s given us. Matthew (19:11): Yeah, yeah, yeah, exactly. When we approach the education with this biblical wisdom and from a biblical worldview, we’re not just preparing our children for their careers, but we’re preparing them to be faithful stewards of God’s kingdom, whatever that calling might be. Shawn (19:28): Matthew, thank you so much for today. And for those of you watching or listening, if you’d like to learn more about Christian Financial advisors or you have questions about educational planning, please visit our website www.christianfa.com. You can also call or text us at 830-609-6986 during business hours. And as always, thank you so much for joining us and God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 232 – The Dangers of Large Inheritances The Dangers of Large Inheritances Learn about setting up an inheritance system that could stay in your family for 100+ years. More episodes >> If you are trying to figure out how to distribute your inheritance after your passing, then this is the episode for you! Bob and Shawn touch on key points on how a large inheritance can lead to a spending frenzy, a lack of understanding of how long it takes to build wealth, and more dangers when it is not distributed properly. Instead, a large inheritance has various steps and safeguards that can be put in place in order to have a better success rate so that it might last for several generations. The goal should be to pass on not just the wealth, but the wisdom and good money management habits that allowed the wealth to be built in the first place. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode PROVERBS 20:21 An inheritance claimed too soon will not be blessed at the end. PROVERBS 17:16 Of what use is money in the hand of a fool since he has no intention of acquiring wisdom? Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Bob (00:00): Give out a portion of it, but not all of it so that it goes right back into it and it grows. And this is the power of setting up an inheritance the right way. Shawn (00:21): Welcome back to Christian Financial Perspectives. My name is Shawn Peters. This is Bob Barber, and today we’re going to be covering “The dangers of a large inheritance”, which when you say it out loud, it kind of almost seems weird. What do you mean? How is a large inheritance dangerous? Bob (00:34): That’s right. Yeah. But scripture does talk about it for sure. Shawn (00:39): Yes. Proverbs 20:21, “An inheritance claim too soon will not be blessed in the end.” Bob (00:47): There’s an old saying, “shirt sleeves to shirt sleeves in three generations.” What does that mean? Well, generation one makes wealth. They create wealth. Shawn (01:02): Generation one creates wealth. Bob (01:04): Okay. Generation two, they don’t use it all, but they use a lot of it. But the time the wealth gets from generation one to two into the third generation, the third generation squanderers it all. And that’s what we mean by shirt sleeves to shirt sleeves in three generations. And this has been going on for hundreds of years. And it even happened in my own family because my great grandfather created a lot of wealth, owned thousands of acres, a big rancher, and then it went to my grandfather. And then my dad was not very good with finances. I mean, I loved my dad. He was a great godly man, but he was terrible with finances and spent it all, and then it starts over with me again. Shawn (01:56): So you’ve seen this play out in many families and even in your own… Bob (02:00): in my own family. Right. Shawn (02:02): Exactly. Your parents and grandparents. Bob (02:03): You haven’t seen it play out, but your dad has done an incredibly good job. Shawn (02:10): I would definitely say my dad would have to be in generation one in this type. Bob (02:14): Yes. So he’s created and you’re the second generation, and then your children, you need to be very careful. Your dad needs to be very careful, just like I do, about how we pass off and give the inheritance to the following generations. And that’s what we’re going to be talking about today. Shawn (02:34): Okay. So what you’re saying though is that this scenario doesn’t have to play out. Bob (02:40): It doesn’t have to. And if you study successful families over the generations, you’ll find them. One right here in Texas is the King family. The King Ranch. It’s one of the largest ranches, the largest ranch. Shawn (02:53): Most people have probably heard of that, especially if anyone watching or listening, King Ranch edition with Ford. Bob (02:59): Yeah, the King Ranch edition Ford truck. Yeah. Shawn (03:01): And now they’ve got the King Ranch edition for just about all the models. You get the Explorer, you get the Expedition, the truck, everything. Bob (03:08): And you think about the Rockefellers too, and families like that pass generations down for wealth for multiple generations and it stayed is they understand the concept of what I call the golden goose. The goose is laying the golden eggs. The problem with inheritances is that when you just divide it up… Shawn (03:32): So once the second spouse passes away, you divide it up amongst all the heirs instead. Bob (03:38): And what you’ve done is you taken the goose and just chopped it up. Yeah. And when you think about compounding, we have talked about the rule of 72 and compounding. It takes just as long for $10,000 to go to $20,000 as it does for 2 million to go to 4 million or 4 million to 8 million. So what happens is, is when you start chopping the wealth up and you just start distributing it out… Shawn (04:04): You have smaller and smaller principal amounts that can actually earn. Bob (04:08): That’s exactly right. So what happens is that wealth creates more wealth, and especially if all you’re bringing off of the wealth is the interest, don’t take the principal off, let the principal stay there and even of the interest that you earn, give out a portion of it but not all of it so that it goes right back into it and grows. And this is the power of setting up an inheritance the right way. I came up with basically what I feel are around 10 to 11 dangers of a large inheritance. Shawn (04:47): So some things to look out for. Bob (04:49): Right. Shawn (04:50): Or avoid. Okay. Well, number one, it can cause a spending frenzy. Many inheritances are spent within just two to three years of receiving. Bob (05:01): We’ve seen this right ourselves, haven’t we? Right here in our firm. Shawn (05:06): We can’t name any specific family names, but we have seen where there’s a large inheritance come through or some sort of mineral rights or something like that that’s found. And then we see some of the family ends up buying extra houses and boats and cars and everything else you can think of. And then eventually, the money starts to dwindle. Bob (05:27): Because they didn’t realize the cost behind all that. Shawn (05:30): Exactly. Bob (05:30): And maintaining that. Shawn (05:31): But not only that, but you’re pulling so much out that well now you spent not just the interest, but you spent a significant portion of the principle. So now each year it’s earning even less. And so then people within two to three years, they basically don’t have anything left other than a whole bunch of stuff they bought that’s expensive to maintain. And then you have others that don’t change their lifestyle too much and two to three years later, they have more now than did when they started. Bob (05:58): We’re going to be careful about giving a full explanation of them. I just want you to hear them and really take them in. Otherwise, this will ended up being an hour long program. So the second one is a large inheritance can cause speculative behaviors. It can be investing in day trading in the markets, or it could be a risky business venture. I’ve seen this a lot too. We’re going to go start this business now with this inheritance. Shawn (06:24): Like go a restaurant. Those are always successful. Bob (06:27): What is they say about 90% of ’em fail after two or three years? Shawn (06:30): Something like that. I don’t know. Bob (06:31): It’s a really high percentage. Shawn (06:32): Yeah. Bob (06:33): I’m always scared. I would be scared. So scared to start a restaurant. It’s so much work involved, too. Oh my goodness. Shawn (06:38): Another one, heirs with large inheritances can become a target of fraud and abuse by others. It’s very similar to when people win the lotto and then people find out that they won the lottery, and then it’s all of a sudden there’s cousins and long loss friends and uncles and aunts, all kinds of people that you’ve never heard of that all have a sob story or all have this great business deal. And I mean other times, even just actual crime, like people just trying to steal it. Bob (07:05): Yeah, that’s right. It can also distort the psychological power of ownership because receiving that large inheritance can cause a sense of accomplishment that can be lost in that transfer. I didn’t earn this. I didn’t make this. Shawn (07:19): But then what happens is, is that that money, that wealth, gives someone this false sense of that accomplishment or ownership and it’s like, “Oh, I know what I’m doing. I am not going to make mistakes.” Well, just because you have money doesn’t mean that you know how to make really good decisions. Bob (07:38): I’ve seen this play out where all of a sudden I’m smarter than everybody. Before I got the wealth, I wasn’t. But now I am, and no one can tell me what to do. I’ve learned it all. Shawn (07:48): The amount of money you have does not determine how good you are with money, especially if you received it and it wasn’t something you earned. Bob (07:57): Another point is the larger inheritance may not be taken seriously, not earned slowly over years and years. And prudence saving, we kind of said that, and it can compound many irresponsible behaviors like drug abuse. I mean, you think about how a large inheritance can buy many more drugs if somebody’s abusing drugs. Or, just if they have overspending habits, it’s going to make the overspending that much worse. So, that’s why it needs to be done in a wise way. Shawn (08:29): It can take away the incentive to work. Bob (08:30): That’s a big one, isn’t it? Shawn (08:31): If you have a lot of money, I’m like, well, why do I even need to work? I’ll just take it easy. Bob (08:35): Work appears in the Bible over 550 times where retire appears one time and it’s not in the context of the American retirement. Shawn (08:45): Yep. We’ve done an episode on that. Yeah, we have another one. It can create a sense of entitlement. Bob (08:50): It can make someone very boastful and pretentious. Shawn (08:55): An heir may not understand how long it takes to make the wealth they received, or that an inheritance can disappear in just a few years no matter how large. Bob (09:03): I think that’s a big one. Shawn (09:04): That’s something I have seen from the first time I worked with you for about five years, and then since I’ve come back, I’ve seen that multiple times myself that it doesn’t matter if it was $50,000 – $100,000 or a million and a half, the amount of time it takes for someone to spend through it if they don’t know how to handle it, they haven’t been equipped really. Bob (09:24): They didn’t realize how long it took to get there. I mean, it took mom and dad maybe 30 years to get there to get to that million and a half, and then it compounds and grows to 3 million. Shawn (09:33): I mean, how many clients Bob have you had that they made between $50,000 and $60,000, maybe $70,000 a year, and yet they have between 1 million and 2 million when they retire? I mean, obviously it takes a while to build up to that on that kind of an income, but you can spend that real fast. Bob (09:51): And then one of the last points I want to make this very important is if your heirs are not already wealthy and have not saved for many years, they may not be ready for that large inheritance. I mean, I’m pretty sure they’re not. Shawn (10:07): Especially as just a, “Yeah, here’s a lump sum.” Bob (10:09): We’ve given these points, so as we come down to… Shawn (10:12): We’re going to end there on all the negative stuff, right? Bob (10:15): No. Shawn (10:15): So what’s the answer? What’s the answer for a large inheritance? Bob (10:17): Number one, I think is set up the inheritance in using a trust or limited partnership like a family limited partnership and distribute it wisely and slowly, just like you earned it, you made it. Shawn (10:30): So how does someone do that though? If they’ve passed away and it’s gone into this, it’s within the trust. Bob (10:36): Well, you have to do this before you pass away. Shawn (10:36): So it’s set up, the instructions that have to be carried out are in the trust and limited partnership, right? Bob (10:42): That’s right. Shawn (10:42): And then you have an administrator that make sure that those rules and criteria are followed. Bob (10:47): And we’ll speak about that later. Number one, this is so important to emphasize too, keep your wealth together. Don’t take the golden goose and cut it up. Shawn (10:57): Which is why you needed number one. Have some we sort of set… Bob (11:00): We spoke about that in the beginning of the program. I mean wealthy families are wealthy years later, because they never took the goose and cut it up and distributed the wealth. They kept it together and then they gave out the earnings from the wealth to the heirs. Shawn (11:14): Part of the earnings. Bob (11:15): Part of. Shawn (11:16): Not all of it. Bob (11:17): Not all of it. Shawn (11:18): Another one have financial family financial meetings with your heirs before your death. Bob (11:25): I have that great book that was put out by the National Christian Foundation called Family. It’s “Family. Money.” and I would emphasize that everybody use that book. If you want to, you can give us a call and we’ll make sure to get one of those books, or we can send it to you in A PDF as well. But it lays out how to have a family meeting. This is so important that your heirs know how the wealth was earned. Shawn (11:49): Exactly, yeah. And have the conversations about what’s important too. Bob (11:53): Yeah. Equip your heirs with sound, financial principles and planning. Shawn (11:58): Teaching good money habits. Bob (12:01): That takes a long time. They need to have an excellent understanding of the wealth, how it was made, the story behind it, and I think this is a big one. The next one is very big, is have what we call pre inheritance experiences. Use the scripture…the scripture behind this, and we’ve talked about this scripture many times here is Matthew 25:14-30 talks about the parable of the talents where he gave one, three, and five. Then he came back and said, what’d you do with it? I think another good scripture that goes with this is Luke 16:10, “Whoever can be trusted with very little can also be trusted with much.” Shawn (12:42): So the idea here, Bob, is you’re saying, so with your heirs, give them something now. Bob (12:50): Right?. Shawn (12:51): Obviously don’t tell them that this is the pre inheritance experience test you’re putting them through, but give them, I think, what is it, $10,000 a year or whatever the number is now? Bob (13:00): Well, that’s like up to 14k or 15k now. Shawn (13:02): So there’s a certain amount you can give without causing a tax situation for whoever you’re giving it to. But give them that money and see what they do with it. Bob (13:11): Go back in six months to a year. Shawn (13:12): Do they reinvest it? Do they handle it wisely? Do they go spend it on much stuff they don’t need? Because that’ll give you a really good idea of whether or not they’re actually ready, if they can handle it. And number 7. Bob (13:25): Number seven is a really good one. Give it out slowly. You made it. And even match savings like they would do in a 401k. Maybe match the savings for your heirs and everything needs thought. Shawn (13:37): I guess it depends on how much you have and your heirs have. But let’s say you’ve done a lot better than they have so far. Maybe you have a one to two or one to four where for every dollar that they’ve put away into a retirement specific account, whether it’s their own 401k or an IRA, something like that, that you basically match for from their inheritance, that when you pass away that that’s something they have access to. Bob (14:03): And all this can be put into a trust. And you know what? I’ve put it all in my personal trust. Shawn has seen it. We’ve gone over it. I have all of this laid out, and your children and your heirs have got to understand how money works. The first thing that they’ve got to inherit is wisdom. If they don’t have wisdom, they’re not going to be able to handle this well. Shawn (14:26): Think of it as like a toolbox, Bob. Bob (14:27): Yeah. Shawn (14:28): If you give your heirs this really nice toolbox with all the tools they could possibly want, but they don’t know how to use them, chances are they’re just going to break something. Bob (14:45): Shawn, why don’t you read that scripture ahead for us there in relation to this? Shawn (14:48): Yeah. Proverbs 17:16, “Of what use is money in the hand of a fool since he has no intention of acquiring wisdom?” Bob (14:57): Yeah. Boil down to these last thoughts. Ensure your children and grandchildren are taught how to use good money management habits, saving investing habits. Shawn (15:06): I mean, you worked for wealth, saved for it, took possible chances to get it, and sacrificed, so you respected the wealth. Shouldn’t your heirs learn to do the same? Bob (15:17): One of the things that we’re doing, too, with our trust is we’re going to assign a corporate trustee after Rachael and I pass, not a family member, because a corporate trustee has a fiduciary duty and legal obligation to carry out the rules of the trust. If a family member is a trustee, they could be guilted by another family member into bending the trust rules. Shawn (15:36): Persuaded. Yeah. Bob (15:37): Exactly. A trustee’s not going to do that. Shawn (15:39): Which is good. Bob (15:40): Just remember, wealth in the hands of a fool compounds foolishness, but wealth in the hands of the wise compounds wisdom. So if you want to learn more how to set up a large inheritance for success for the following generations… Shawn (15:51): You can call or text our office at 830-609-6986. Schedule a phone online or in person meeting with us. You can also contact us through the website www.christianfinancialadvisors.com. As always, thank you so much for joining us and God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 231 – Financial Wolves in Sheep’s Clothing Financial Wolves in Sheep’s Clothing Check out some of the top signs to look for in predatory financial advisors aka wolves in sheep’s clothing. More episodes >> Have you ever been approached by someone offering financial returns so great that it must be too good to be true? Bob and Shawn discuss the patterns and tactics that these financial wolves may use to lure you and your finances into unwanted territory. Some of these tactics include the ever famous “free, luxury steak dinner” to entice you and peak your interest. However, these financial advisors can be just like “wolves in sheep’s clothing” when it comes to their manipulative tactics that they use. Many of the products they promote are rarely benefiting the consumer, and they actually benefit the advisor more than the client. When you begin to look through the minefield of promises that really sound too good to be true (because they usually are), you begin to see a pattern. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode GENESIS 25:30-34 He said to Jacob, “Quick, let me have some of that red stew! I’m famished!” (That is why he was also called Edom. ) Jacob replied, “First sell me your birthright.” “Look, I am about to die,” Esau said. “What good is the birthright to me?” But Jacob said, “Swear to me first.” So he swore an oath to him, selling his birthright to Jacob. Then Jacob gave Esau some bread and some lentil stew. He ate and drank, and then got up and left. So Esau despised his birthright. MATTHEW 7:15-20 Watch out for false prophets. They come to you in sheep’s clothing, but inwardly they are ferocious wolves. By their fruit you will recognize them. Do people pick grapes from thornbushes, or figs from thistles? Likewise, every good tree bears good fruit, but a bad tree bears bad fruit. [18] A good tree cannot bear bad fruit, and a bad tree cannot bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. Thus, by their fruit you will recognize them. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): They try to get you to, “Well, don’t talk to anybody else. This is a limited time deal.” Basically everything that they can to get you to sign as quickly as possible. Because if you run it by someone who cares about you and kind of knows what they’re doing, they’re going to see through this, they, they’re going to advise you. “No, this isn’t a good idea.” (00:18): Welcome back to Christian Financial Perspectives. I’m Shawn Peters. I’m joined today by Bob Barber and today we are going to be covering financial wolves in sheep’s clothing. And before we really get into any scriptures or anything else, I noticed, Bob, that you brought some stuff for show and tell. And for those listening, we’ll make sure to describe what he’s got. But what you got here? Bob (00:48): Now, Shawn, I know that you like to eat a lot. So Shawn (00:52): How do you know that? Bob (00:52): Hold yourself back when I show you this. Okay? Shawn (00:54): Have you personally seen that and can testify? Bob (00:57): Y’all know Shawn is my son-in-law. So I’ll never forget the first time he came to eat at our house and he went and started in a clock position and he went all the way around and he ate everything on his plate. And then he looked up and he says, “Can I have another plate?” And we said, “Yeah, no problem.” Shawn (01:12): And you realize that’s one of the few ways to get me to stop talking is to make sure I’ve got food in front of me. Bob (01:18): So I want you to picture this if you’re listening to our podcast, but if you’re watching our YouTube channel, okay, Shawn, you see this? Shawn (01:25): Oh, come on Bob. It’s almost lunchtime. Don’t be doing that. Bob (01:28): Isn’t this just a picture of a beautiful steak? And lemme… Shawn (01:33): It’s one of those fancy steaks where you don’t get as much, but I guess it tastes better. Bob (01:37): Here’s another one. Shawn (01:39): Oh, that looks good, too. Bob (01:41): I know. I know. Shawn (01:41): It looks like maybe that was that salmon on some fried asparagus sticks. That looks good. Bob (01:47): It is really good. You’re invited to a complimentary event for retirees or soon to be retired. I get these, Shawn. Shawn (01:57): If I bring someone over 60, can I go get a free one? Would they let me in? Bob (02:03): I don’t know. When you open it up and you start seeing some things in here anyway, if you can’t see this, just picture a beautiful steak. Shawn (02:11): Think the big six by nine postcard. Maybe it opens up to a larger piece. But pretty much all you really see on it is, “Oh, look how good that entree looks.” Bob (02:21): Now Shawn, I remember the first time I met you, too, we went to the Olive Garden. You had a bunch of bowls of soup. Shawn (02:26): I had a few. Bob (02:27): Yeah, you had a few. Shawn (02:28): It was double digits. Bob (02:29): Yeah. They were betting on how much you were going to have. Shawn (02:32): Hey, I finished that last bowl so that guy would win the pool. Bob (02:36): I think about the steak and how they send you this. You get these invitations with these beautiful pictures of steak in them. Then I thought about soup and I thought about my wife can make really good stew. And this brings me to a scripture. Shawn (02:51): We actually have a scripture about stew or soup. Yeah. So Genesis is 25:30-34, “He said to Jacob, ‘Quick, let me have some of that red stew. I’m famished.’ That is why he was also called Edem. Jacob replied, ‘First, sell me your birthright.’ ‘Look, I’m about to die,’ Esau said.”… By the way, a little dramatic. Bob (03:11): Yeah, I know. Shawn (03:12): Anyway, “‘What good is the birthright to me?’ But Jacob said, ‘Swear to me first.’ So he swore an oath to him selling his birthright to Jacob. Then Jacob gave Esau some bread and some lentil stew. He ate and drank and then got up and left.” So Esau despised his birthright over some food. Bob (03:32): Do you see how food can… Shawn (03:34): It’s that short term. He was so focused on his short-term needs and gratifications that he gave up his birthright for a bowl of stew and bread. Bob (03:45): That’s what they’re trying to do here, Shawn. Shawn (03:46): Yeah, exactly. It’s exactly the same thing. They’re trying to get people to come in and when you get one of these in the mail and it’s all about, look how great this food looks. Well what happens is you then go in and you have this obligation, this sense of obligation. You don’t want to be a mean rude person by taking advantage of this free meal. So you’re like, “Well, I have to hear ’em out.” And again, I mean that is one of the most fitting scriptures I feel like we’ve had in a long time for how close the parallel is to today. It’s still food and it’s still trying to get someone to basically sell their long-term success and future for a nice meal, a one-time nice meal. Bob (04:27): As I think about financial wolves in sheep’s clothing, a wolf knows the power of words and emotions to manipulate others. And they use fear to fuel insecurity. And then what do they do? They pounce. And we want to protect you from that. There’s another scripture here I’d like you to read for us, Shawn, from Matthew 7:15-20. Shawn (04:51): Yeah, I’m not going to read quite the whole thing. It is a good scripture, though. “But watch out for false prophets. They come to you in sheep’s clothing, but inwardly, they’re ferocious wolves.” By your fruit you will recognize them.” And then I’m going to jump down to 18. “A good tree cannot bear bad fruit and a bad tree cannot bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire.”… And there’s the important part… “Thus by their fruit, you will recognize them.” Bob (05:19): So we’re going to go over a lot of disguises that these financial wolves use because the first disguise is right here. Shawn (05:26): You could say financial wolves or predators. Bob (05:29): Yeah, they use free steak dinners. By the way, this invitation is a very nice invitation. I know because I’ve had companies approach me, we’ll send out 10,000 of these for you and you’ll get a quarter percent return and we’ll get 25 to 30 people there. That’s like, how much is that going to cost? Well, the mailers are going to cost about a dollar a piece. Shawn (05:52): And we also send mailers out. And the thing is, the more you send out the cheaper it actually is. So sending out 10,000, it’s maybe a dollar a piece. But then think about it, you get one person that does a hundred thousand dollars annuity of some kind or something like that and it’s a 10% commission. There you go. You’ve completely paid for the entire thing. And that’s with one person. Bob (06:14): Yeah. It’s not just the cost of these, but just even the kind of steak places that they’re advertising. Those are $70 plates and you have a couple, so they’ve got a lot of money invested in you before they even talk to you about what you’re going to do with the financial. Shawn (06:33): They send out these free steak dinner invitations or salmon, whatever, but it’s a nice steakhouse kind of a deal just to lure you in. And then they say you will pay nothing for their services, which is such a lie. Bob (06:46): That is just so interesting how they say that. And the reason they say that is say, you’re not paying anything for our services. The company that we place you with is paying us. But yet, if you want to get your money back, so if you put say a hundred thousand dollars in, you want to get your a hundred thousand dollars back. Oh no. Well, we could only give you back 90,000 of that. Why is it you can only give me back 90? Shawn (07:08): Well, because we paid the guy who sold it to you 10 grand. So effectively it’s that surrender fee is going to be based on the surrender time period and what the commission was. So for example, if there’s a 10 year surrender period and you’re trying to get the money back a year later and they say they’ll only give you 91,000, well that was because – that’s how you know it was a 10% commission because that’s when they paid out. Bob (07:35): 9 to 10 right in there. And the company’s going to make this back too because once they get you in, they’ll promise you these rates. And then we’ve seen, I’ve had, I don’t know how many, I can’t even count how many have come to us after this has happened. And they’re like, the next year I’m making 2% or 3% they’re not making at all. And I said, that’s the company’s keeping the other. Shawn (08:02): There’s a lot of hidden fees. There’s the, which we will get into it. Bob (08:06): This is the third point I want to point out is that these financial wolves represent companies that they’ll put fictitious values on paper. So you’ll open up the paper and you’ll say, ah, it says it’s worth 110,000. I put in 100,000. Shawn (08:23): I just barely started six months ago. Bob (08:26): Or they’ll say a 10% bonus. But then again, if you want to liquidate that, they’re not going to send you that. So, that’s a fictitious value. That’s not a real value that can be liquidated. Shawn (08:37): So you can look at it as at 110,000 in this case value a year later if you want to withdraw it, well guess what? You’re going to get 91. Bob (08:43): Or 92 or something like that. Shawn (08:45): Yeah, 92, they’re not going to give you the full 10,000 bonus. They’re going to take out 8-9% for your surrender penalty. And so yeah, it’s just a fictitious number. I believe the other word for that is a lie. It’s false. Bob (08:58): These companies, they pay very high commissions. And so there’s a real incentive for these financial wolves to sell these types of products. Shawn (09:07): They’ve only got to sell a few to make good money. Bob (09:08): We just mentioned about the upfront bonus. Shawn (09:11): Again, they’re fictitious. It’s just a draw in. Bob (09:14): It’s only as good as the paper it’s written on, though. Shawn (09:16): When we were recording this, at least we are shortly coming off of Memorial Day and I saw these advertisements for the prices for, I’m not going to name the place, but it was this type of resort that said like, “Oh, it’s 30% off. They’re doing memorial day sale.” And then when you look at the final price, everybody’s commenting on the post because, especially all the locals, that’s the same price you’ve had for the last year and a half. The prices that you just raised the price and then said it’s a discount of 30%. So it’s kind of like the same idea. It’s nonsense. Bob (09:52): I know it really is. Another one is they’ll promise you an interest rate. And this is what I’ve seen a lot, too. And they don’t really disclose this and you got to think about this. They’ll say, well, you’re making a 7% return on your money, but not really because what they’re doing is they’re promoting it as an interest rate, but it’s just a return of your own money. Shawn (10:19): So a return of your principal. Bob (10:21): Return of principle. So if you look at it deep, let’s say they’re going to give me back 6% a year, that’s what they’ll say. They’re going to give me back 6%. Shawn (10:28): So on 100,000 you should be getting 6,000 in income. Bob (10:31): Right. Shawn (10:31): Right. Bob (10:31): That’s your own money. They’re giving you back your own money. Isn’t that nice of ’em? So be careful of that. They’re just giving you back your own money and they disguise it like it’s an interest rate. Another thing that you really want to be careful of is how they’ll promote these unreasonable fixed returns. Shawn (10:54): So they’ll disclose something that looks more like a normal interest rate of some kind and let’s say they do the 6%, but yet you look at interest rates of what’s actually comparable and paying. And you can look that up for free. I mean just Google interest rates so you can kind see what the market looks like. Well, if they’re promising you 6% and you’re looking at rates and they’re between 3-3.5%, okay, well something’s up. That’s way too big of of a gap. Obviously there is some sort of string attached. Bob (11:25): You’ve got to be careful of letting your own greed get in there. I remember Bernie Madoff and people were making 10% or 12% year after year after year no matter what the market was. And then they found out it was the biggest Ponzi scheme in history. Shawn (11:38): Well, it’s one of those where it’s so good and then people get caught up in the – effectively you stick your head in the sand and it’s so good that I don’t want to look too closely at it. Even if in the back of your mind you’re like, something’s off, something’s wrong this, but you’re like, but I don’t want to rock the boat. I don’t want to look too close and then I don’t get to enjoy this return. And I think that’s what happens. It’s like that psychological effect. Bob (12:04): You’ve got to be careful. Another thing that they’ll do is they’ll promote that you’re going to get stock market like returns, but then when you look at the fine print. Shawn (12:12): Without risk. Stock market like returns without risk. Bob (12:15): But then when you look at the fine print, they put a cap on it. And we’ve seen this many times, too. So the stock market in good years, our aggressive growth fund, we’ve had a year where it went up 18, 20, 25%. Shawn (12:29): Yeah, just in one year. Bob (12:29): In one year. Now it doesn’t do that every year, but. Shawn (12:31): No. And some years it might be down quite a bit. Bob (12:35): Well, it’s going to go up and down, but here’s what they’ll do. They’ll promote it and they’ll say, well, you’re never going to have a down year. You’re only going to have an up year. But then the up year is capped. Shawn (12:44): At say, 5% . Bob (12:46): No. If you’re lucky. Shawn (12:48): Yeah, I mean it could be 2%. Bob (12:51): And they have different ways of doing this point to point or monthly average. And they do all these different formulas. And when I look at these, what I’m seeing is about a 2% or 3% return overall seems to be the average. Some of ’em may be 5%, but if the market’s making 10% or 12% and they tell you we’re investing in the market and they’re giving you 5%, where’s the other 7% going? Shawn (13:15): To them. Bob (13:16): That’s high expenses. Shawn (13:17): See, the thing is when you’re looking at these returns and you’re looking at the cap that you hit on this product you’ve invested in, the issue is that they know that if they lock you into say that minimum of five years or that minimum of 10 years without incurring massive penalties, they know that by capping an investor at 2% to 5%, even though they have to bear the full downside in a down year, they know that over a longer period of time, especially 10 years, they’re going to make out like a bandit on average. So the little 2% to 5% they had to pay you and you didn’t participate in the downside, they’ve more than made up for it. Not to mention all the other fees. Bob (14:02): I would invite anybody to go back and look at the past podcasts we made one several weeks ago, or maybe it was about a month ago. We talked about the history of the markets and what are the history of the markets as a common theme? It always goes on to newer highs. It recovers and goes on to newer highs. And then I say this last one, it’s just be very, very cautious of all the manipulative sales tactics that these financial wolves use. They use a lot of them. They’re taught them. And also… Shawn (14:31): They try to get you to not leave without signing. Especially at that dinner. They try to get to not get, yeah, or get an appointment. They try to get you to, “Well, don’t talk to anybody else. This is a limited time deal.” Basically everything that they can to get you to sign as quickly as possible. Because if you run it by someone who cares you and kind of knows what they’re doing, they’re going to see through this, they’re going to advise you, “No, this isn’t a good idea.” Bob (14:58): And the last thing I want to mention today, besides these high commissions that these companies offer these financial wolves to represent their products, they have top producer conferences, they have vacations. Shawn (15:11): If uou sold a certain amount. Bob (15:13): Four star resorts, they get big year end bonuses if they sell a certain amount of their product. They give them expensive gifts like a set of golf clubs. And the list just goes on and on. Man, we’ve got to be careful how we walk around after this. We’ve really exposed today. I mean, hopefully there’s not one waiting out at the door for us to hit us, but you just got to be so careful of all these manipulative sales tactics that they use. And next time you get one of these free steak dinner seminars, throw it in the trash. Shawn (15:51): Or recycling if you’re a recycling. Bob (15:52): Yeah, exactly. Shawn (15:54): It depends on where you’re located. Bob (15:56): That’s where it belongs. And don’t get sucked in to their manipulative ways. Shawn (16:04): Yeah. Don’t try to capitalize on the $1 they spent to send you that postcard and throw away your future because of it. Bob (16:12): I hope this has been helpful for you today. We’re a fiduciary fee-based advisor. No one pays us but you. We’re paid by you. Everything’s disclosed upfront. Shawn (16:22): And we’re only paid for what we do. So any client that if one of you listening now are not a client and you decide to become a client and two and a half months later you’re like, this isn’t for me. Well then you get refunded that last half of the month for the quarter. We only get paid a quarter of the year. Bob (16:39): Whatever the value is that you see, that’s the value you get. There’s no games here. We play straight. It’s right up front. If you’d like to learn more about our services, you can give us a call at 830-609-6986 or you can text that number and we would invite you also to go to our website to www.ChristianFinancialAdvisors.com. Whatever you do, look for a fiduciary fee-based advisor. Stay away from commission-based. That can create a huge conflict of interest. That’s all for today. Shawn (17:10): And one final thing, if anybody is trying to convince you to do something and they don’t want you to talk to someone that you trust or to get advice, second opinion, if you will – run, don’t walk, run. Because anyone that is actually being a fiduciary, anyone that’s acting in your best interest, but obviously maybe they’re still in business, but they’re not trying to take advantage of you, they’re not going to be scared for you to talk to somebody else or to get advice from someone else. So, thank you as always for joining us and God bless. * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 230 – Are YOU An Emotional Investor? Are YOU An Emotional Investor? Learn about the potential downfalls when it comes to using your emotions to make investment decisions. More episodes >> Many have succumbed to the common pitfalls of emotional investing. In this episode, Shawn and Matthew provide some quick, Biblical guidance for avoiding making emotional decisions when it comes to your finances. Unfortunately, emotional investing can lead to poor financial decisions, which in turn can lead to trouble sleeping and being OCD about constantly checking market values. Instead of letting emotions guide our decision making, especially when it comes to the ups and downs of the market, it can be important to take a step back and take a long-term, disciplined approach to investing. HOSTS: Shawn Peters and Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Matthew Barrovecchio Shawn Peters, Operations Director Bible Verses In This Episode PROVERBS 3:5-6 Trust in the Lord with all your heart, and lean not on your own understanding. In all your ways acknowledge him, and he will direct your paths. PHILIPPIANS 4:6-7 Do not be anxious about anything, but in every situation by prayer and petition, with thanksgiving, present your requests to God. ROMANS 12:2 Do not conform to the pattern of this world, but be transformed by the renewing of your mind. EPHESIANS 4:19 Having lost all sensitivity, they have given themselves over to sensuality so as to indulge in every kind of impurity, and they are full of greed. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Matthew (00:00): You also don’t want to accumulate cash over the course of months and years just waiting for this opportunity to buy the dip, right? Shawn (00:18): Welcome back to Christian Financial Perspectives. My name is Shawn Peters. I’m joined today by Matthew Barrovecchio, and today we’re presenting this episode which was written by Bob Barber, “Emotional Investing: Are you an emotional investor?” Well, you may be susceptible to emotional investing if you do any of the following or can identify with the following. The first one can’t sleep well when markets are down. Matthew (00:42): Yep. That’s not a good one. Second one would be checking account values during times when the market is very volatile, which if you’re doing that, please stop. Shawn (00:52): Day traders do that. But if you’re a long-term investor, you shouldn’t be doing that. Matthew (00:56): Bingo. Shawn (00:57): Number three, fear of losing everything despite being diversified properly. Matthew (01:01): And then fourth, getting caught up in the media financial hype. Shawn (01:04): Yep. By the way, those media sites, when they’re talking about that stuff, their goal is to get you to keep reading more articles, to keep watching more of the videos. It’s just a whole thing. Effectively, it’s a financial media entertainment. Matthew (01:18): Emotion evokes action and that’s what they want. Shawn (01:20): Exactly. Matthew (01:21): But that’s not what we want. Shawn (01:21): Before we go any further, then we’re going to start with two scriptures for our foundation for today. Matthew, you want to go with the first one? Matthew (01:28): I’ll read both of them actually. Proverbs 3:5-6, “Trust in the Lord with all of your heart and lean not on your own understanding. In all your ways, acknowledge him and he will direct your paths in them.” And then the second one is one of my favorites, Philippians 4:6-7, “Do not be anxious about anything, but in everything with prayer and petition and thanksgiving, present your requests to God and the peace of God, which transcends all understanding, will guard your hearts and minds in Christ Jesus.” Shawn (01:55): Understanding financial emotions. First we’re going to hit you with definition of emotions. Matthew (02:00): From Webster. Shawn (02:00): Exactly. “Instinctive or intuitive feelings as distinguished from reasoning or knowledge.” Matthew (02:07): Finances and emotions. They don’t go together. It’s like oil and water. They don’t mix well Shawn (02:11): Nope. If you do shake them really hard, they’ll kind of sort of mix for just a bit and then separate. Matthew (02:17): So over the long term, they are separated. We have a quote here by Charlie Munger, the late and great Charlie Munger, “Be fearful when others are greedy and be greedy when others are fearful.” And so the idea here, first off, is I don’t want you to be greedy nor fearful. Shawn (02:34): In the traditional sense. We’re not saying greedy. Matthew (02:36): Correct. Right. But the idea, and this is something we’ll talk about over the next minute or so, is don’t feel like you have to run with the crowd. Don’t run with the herd. Right. There is this idea or this concept or this temptation to look at what everyone else is doing and follow. When reality, we should not be doing that. We should be sticking with whatever our objective plan is. Shawn (03:01): That’s right. That’s right. It kind of reminds me of Warren Buffet every time he’s in the news, it’s pretty much never about how much money he’s made. It’s almost always Warren Buffet is buying such and such stock in whatever industry, and it’s down 20%. It’s down. They talk about how down it is and he’s buying it. I mean, he’s been doing this for longer than I’ve been alive, and yet every time he does the same thing. Yeah. When the assets are down, he’s buying. When everybody else is running for the hills, he’s moving assets and the stuff that’s on sale. Matthew (03:35): Right. Contrarian. Shawn (03:35): So that’s kind of that idea, I guess, of when everybody’s being greedy. He’s one of those people that’s backing away. And when everybody is running away, well, he’s going to jump in. Yep. Matthew (03:44): Absolutely. Shawn (03:45): The financial media emotion game. So the media, all right. And there’s a lot of different forms of it. Matthew (03:56): I love the word game here. That’s really what it is. Shawn (04:00): So the media, number one, loves chaos and uses scare tactics. Matthew (04:04): And so they do that. And we have to remind ourselves, especially as Christians, we don’t serve a God of chaos. We survey God of order. Shawn (04:12): That’s right. And number two, the media creates political instability. It doesn’t matter which side of political aisle you’re on, but they definitely do that. Most of the news organizations at this point, it’s like their legal name has entertainment typically in it. Matthew (04:28): It’s true. Shawn (04:28): It’s not so much the news. It’s the financial entertainment news. Matthew (04:33): This third one, using dramatic language is something that they often do. Markets are falling off a cliff. If you look at the top of some of these financial websites, the headlines, the quick snippets, what they know you’re going to see first, it is always language that is either one extreme or the other. Right. And when you look under the hood, it’s usually not as dramatic as they make it seem. Shawn (04:56): Yeah. The headlines tend to be click bait. They effectively want you to click through to look at the article, except the fact that the statistics show that most people aren’t going to click through. So number four promotes FOMO – Fear of Missing Out. Matthew (05:12): I feel like we’ve heard about this one before. Shawn (05:13): Oh, yeah. Matthew (05:14): Yeah. Shawn (05:14): We’ve covered this one before, right. Matthew (05:15): Exactly. Yep. Number five, quotes returns from market bottoms and tops and never the long term. So again, it kind of goes back to one of the ones we just spoke about a moment ago when it’s talking about numbers and where we are. Again, it’s highlighting the extremes, again, to invoke emotion. Shawn (05:34): Yeah. They’ll talk about, oh, it’s 20% off the high, but when you look at it on the last couple years or something, it’s still like, oh, we’re still up 30%. Matthew (05:45): Well, and that’s… bingo. So we can look at where we’ve been so far this year up to this date, and you look at, yeah, we’re coming off of all time highs early this year in January, but when you zoom out and look at longer term, let’s just say since the year 2000, you realize coming off of the all time highs or being down from the all time highs, for the investor that’s been investing for the long term, you’re still very much positive, right. Shawn (06:15): Exactly. (06:16): And number six, the media creates a constant game of comparing returns. Matthew (06:21): And so we just did a podcast. Shawn (06:23): Yes, a previous episode. Matthew (06:24): A podcast episode on comparing with your neighbor. And so this is just another highlight of don’t do that. But it’s difficult because in this day and age, we are surrounded in this world with constant comparison. And that transcends the… Shawn (06:40): I mean it like it’s sometimes hard to resist doing that because we are just inundated with information. Matthew (06:48): Bingo. Shawn (06:48): From so many different sources. Matthew (06:49): Correct. Yeah. It transcends the financial topic. Shawn (06:53): On combating all these various information sources that we’re hit with all the time. A biblical response comes from Romans 12:2, “Do not conform to the pattern of this world, but be transformed by the renewing of your mind.” So some practical wisdom, why don’t you hit us with the first one, Matthew. Matthew (07:09): Yeah. The more emotional that the market is, the more you should consider buying versus selling. And now I think that there’s certainly some truth to this. Of course, you want to buy low and sell high when stocks are on sale. You want to put yourself in a position where you’re taking advantage of that. But there’s also a discipline component to this as well, which is I’m going to talk about here with number two and three as well. So staying disciplined towards your long-term risk tolerance. And then the third thing here, don’t accumulate excess cash just to time the market. Shawn (07:44): You’re never going to time the market perfectly. Even if you are going off of this emotions or you’re trying to buy low and you’re trying to sell high, well, you’re never going to quite hit the top of your bottom. Matthew (07:55): And so that’s the key, right? So while certainly in a volatile market, you want to put yourself in a position where if you’re making a move, right? You’re putting yourself in a position where you’re buying stocks on sale, but at the same part, you don’t want to put yourself in a position where you are doing that and extending your risk tolerance way higher than it should be (08:20): Because that’s not what you should be doing long-term either. You also don’t want to accumulate cash over the course of months and years just waiting for this opportunity to buy the dip, right? Because as you said a moment ago, you don’t want to market time. Well in that kind of situation, you have to market time successfully at least twice. You have to know when do I stop investing monthly with the disciplined approach and start holding on the cash, and then I’ve accumulated this cash, when’s the right time for me to say, “Oh, this is as low it’s going to get,” it’s impossible to do. And so individuals will often be better off if they just stick with their discipline plan and invest along the way Shawn (09:06): Be diversified properly, and be fully invested in whatever that diversification is, whatever that strategy is. Because remember, it’s not about timing the market. It’s time in the market. That’s what makes people the most successful. Matthew (09:20): Bingo. Shawn (09:20): So in conclusion. What’s that first one? Matthew (09:24): Yeah, declare war on emotional investing. I think this can be very much a spiritual battle as well. So that scripture, Romans 12:2 for y’all that are watching, and this might be something that you struggle with. I feel like that’s a really good scripture to memorize, meditate on, pray about. Shawn (09:47): Think like a buyer, not a seller, so be looking more for those buying opportunities and not constantly worried about, “Oh, I need to make sure to sell at the right time.” Because again, if you’re not talking about short term within the year, you’re talking longer term. You don’t need to be thinking like a seller right away. And you shouldn’t be selling your entire portfolio anyway, even when you get into retirement and you’re getting further along. Matthew (10:11): Good investors put their emotions aside and really just focus on the long-term. So again, it’s not about timing the market, it’s about time in the market. Combat the temptation to have a trader’s mentality with everything that you’ve been inundated with in the world, especially in the media. And just don’t pay attention to what your neighbors are doing. Focus on the disciplined approach and what’s right for you over the long term. Shawn (10:33): And also avoid the herd mentality when everyone is buying at high prices. Matthew (10:37): Right, exactly. Shawn (10:38): It can go nowhere but up. Matthew (10:40): Right. Shawn (10:41): It can go either way. Matthew (10:42): Exactly. Exactly. And a lot of times that’s predicated upon greed, and that’s not something that we want to subscribe to either. Shawn (10:51): We’ll close today with Ephesians 4:19, “Having lost all sensitivity, they have given themselves over to sensuality so as to indulge in every kind of impurity, and they’re full of greed.” Matthew (11:01): There we go. Shawn (11:04): Thanks as always for joining us. God bless and hope to see you next time. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 229 – The Flaws of Comparing Investment Returns The Flaws of Comparing Investment Returns Stop comparing investment returns to others and start doing this instead. More episodes >> “The grass is always greener on the other side” is a famous phrase that far too many people succumb to, especially when it comes to comparing their financial situations and investment returns to others. Shawn and Matthew highlight the importance of not comparing your investment returns to others since every financial situation is unique based on household, expenditures, goals, and more! They cover why each investment portfolio is unique, and why investors should focus on the importance of understanding one’s financial goals and meeting those. Some key questions to consider after listening are: “Who owns it?”, “How much is enough?”, and “Are your next stewards chosen and prepared?” HOSTED BY: Matthew Barrovecchio CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Shawn Peters Matthew Barrovecchio Bible Verses In This Episode EXODUS 20:17 You shall not covet your neighbor’s house… or anything that belongs to your neighbor. HEBREWS 13:5 Keep your lives free from the love of money and be content with what you have. I Timothy 6:10 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. MATTHEW 6:19-21 Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. [20] But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. [21] For where your treasure is, there your heart will be also. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:18): Welcome back to another episode of Christian Financial Perspectives. My name is Shawn Peters. I’m joined today by Matthew Barovecchio. Today we’re going to be covering the flaws of comparing investment returns. This was written by Bob Barber, who cannot be here with us today, but we are stepping in together in his stead. And we’re going to start with a couple opening scriptures. I’m going to start with Exodus 20:17, “You shall not covet your neighbor’s house or anything that belongs to your neighbor.” Matthew (00:45): Fantastic. And then another one we have here, Hebrews 13:5, “Keep your lives free from the love of money and be content with what you have,” -=which is obviously very important. And when we’re talking about comparing, Shawn (00:58): Exactly, comparing investment returns, that’s it. Probably a good one there. So our core message today, comparing investment returns with others is fundamentally flawed. Doesn’t matter who you’re comparing to because everyone’s financial situation is unique and we’re going to give you some reasons why. So key differences between investors. Why don’t you take the first one? Matthew (01:20): Yeah, different financial foundations. So when we talk about all that goes into one’s situation, we’ve got different time horizons, they have different net worths, they have different debt levels and goals with that debt, different cashflow needs, like expenses. So, all of those things are influences amongst investment returns. Shawn (01:41): Alright? So it’s kind of your financial foundations, if you will. Number two, different personal circumstances. So age, health conditions, family size, and specific family needs. So obviously whether you’re in your twenties or fifties or seventies, obviously that’s going to change a little bit on your personal circumstances, your health conditions, you could both be in your seventies, but if one person has minor health conditions versus more expensive ongoing chronic conditions, that’s going to make a big difference if you have a son or daughter or grandkid maybe that you’re helping with. But if you’ve got someone that’s special needs, whether that be mental, physical, they’re obviously going to change what you might need to consider from one investor to another. Matthew (02:27): So all very different. Third one here is different goals and values. So this covers investment objectives, giving goals, tithes/offerings, and giving, like that different moral beliefs and estate plans and the investment objectives. I think of those is really the key one that we need to focus on because amongst that, you can talk about risk tolerance and the result of how you have your portfolio set up, which when you’re looking to compare investment returns, you want to make sure that you’re doing it apples to apples, which again, everyone’s is different. So don’t compare. Shawn (03:04): Exactly. Number four, different asset allocations. So real estate, business interest, and risk tolerance levels within that allocation, because the allocation’s going to be different from one investor to another. If someone is capable of handling a 20% drop and their response, if anything, is, “Stay the course,” or, “Hey, I have some extra cash, I want to go and invest now.” Okay, they’re going to have potential higher long-term returns because they’re able to handle a higher level of risk versus someone who, hey, if it drops more than 5% in a six month time period, they’re freaking out. Matthew (03:40): Right, exactly. Shawn (03:41): And again, there’s nothing wrong with either investor, but that is definitely part of that. And what goes into the asset allocation. Matthew (03:49): Right. Yep. Last one here, different portfolio types. So conservative versus moderate versus aggressive. Comparing these makes zero sense. They’re not the same. They’re not the same. Someone who is more conservative oriented should not be in an up market looking at the S and P 500, as an example. Shawn (04:11): That’s not what they’re invested in. Matthew (04:12): Not what they’re invested in. Precisely. Yep. Shawn (04:14): Exactly. So the real question with all this then is how much is enough? Matthew (04:20): That’s right. Yep. So there’s three critical questions that as Christian investors we should be focused on. First off, who owns it? Shawn (04:29): God owns it all. Matthew (04:30): God owns it all. In 2 Chronicles 29, it tells us how much is enough, and then are the next stewards chosen and prepared? So this concept of how much is enough is something I want to spend a moment on. Shawn (04:43): But before we do, can you answer real quick, are the next stewards chosen and prepared? Just for those watching this? Matthew (04:48): What does that mean? Shawn (04:49): Yeah, just real quick, what that means. Matthew (04:50): Yeah. So the summary here is looking at multi-generational perspective. So individuals who are in a position where their investment portfolio is going to outlive them, they have more than they need in order to live the remainder of their lives. And so, where are those assets going? Who’s going to inherit those assets? And are those individuals who will be receiving them prepared? Now, that can oftentimes be family members, children, grandchildren. Sometimes it’s a charitable organization, a Christian organization. You may assume that your local church or some other Christian organization has the wherewithal to accept a large donation. But you probably want to check and make sure first. Shawn (05:41): Just because if you’re intending on donating. Matthew (05:43): Yeah, exactly. Shawn (05:45): Okay, great. So how much is enough? Matthew (05:46): Enough? Yeah, how much is enough? This is a real critical question because it’s not about investment returns only, it’s not about how much are you making in your portfolio, because that’s just one of several components. The real question is, are you on track to meet your investment goals? What’s your probability of success? How much is enough from an earthly perspective, very much focused on will you have enough assets to last you the remainder of your life. From an eternal perspective, it has the focus of capping what you need and then maximizing your generosity above and beyond that. But it really brings to light all of the different things that go into one’s true measure of success, which is will you meet your goals? So investment returns is just a part of that. The other side of the coin can be expenses. Shawn (06:40): Right. Matthew (06:41): So if we’re going to talk… Shawn (06:42): Because to answer that question of are you going to be successful? What’s the probability of success in meeting your goals? Well, yeah, you got to know what are the expenses now? What are the expenses you expect in retirement? And so if you’re comparing returns, which we’re saying you probably shouldn’t be, that’s kind of the point here. But if you are, well, why not also compare monthly expenses and budget to whoever you’re comparing to with your neighbor? (07:06): Because if your expenses and your budget are significantly lower than your neighbor, well then again, does it really matter if they may or may not be getting better returns? Yeah, no, it doesn’t. It doesn’t matter. And another one would be charitable giving. What’s the difference between, are they giving a lot more than you? Are you giving a lot more than them? Matthew (07:28): And it sounds silly, like, oh, why would I go to my neighbor and talk about how much I’m giving, right? Shawn (07:34): That’s right. But then why would you also compare to how much they’re making? Matthew (07:36): Bingo. Exactly. Shawn (07:37): They’re two sides of the same coin. Matthew (07:38): Exactly. That’s exactly it. Shawn (07:39): So do you have some examples of this from you’re over 20 years in working with clients? Matthew (07:44): Yeah, absolutely. So I’ve seen clients who have say $400,000 in their investment portfolio, and they are fine. They’re not stressed out because their expenses are such that they’re barely drawing from their portfolio and their assets that they’ve accumulated are going to outlive them. So this, how much is enough topic is very real. (08:07): Are the next stewards chosen and prepared is very much a question that we dive into. On the flip side, I’ve known individuals who have over $2 million in their investment portfolio, and they’re stressed to the max because their expenses are such that they probably aren’t even going to make it to age 80 before they run out of money. And so, this idea of chasing investment returns and comparing it to others is one, not even the question; two, it’s not even the full picture. It’s one of multiple things. So it really comes back to the heart issue behind it and making sure that we are not coveting, making sure that we’re not allowing the earth that we are surrounded by to influence us to align with the American culture, which is very much focused on greed and fear and wealth, wealth, wealth. Shawn (09:00): Right? Yeah. So in conclusion, stop comparing and coveting. Matthew (09:05): Stop it. Just stop it. Shawn (09:07): Focus on your unique probability of success rather than how you measure against others. I know when we’re doing financial planning with clients that you put in good data, you get good reports out, and we can run all the fancy things, the Monte Carlo analysis, and like, oh, there’s a 20% probability of you falling here. Oh. And it’s like you kind of look at those different scenarios and say, Hey, what’s your probability of success? Matthew (09:29): Bingo. Shawn (09:29): And so, okay, you did the work, so stop comparing and coveting. And in closing, just to draw from two different scriptures, one Timothy 6:10 where it talks about, “For the love of money is a root of all kinds of evil.” And then in Matthew 6:21, “For where your treasure is there your heart will be also.” Now, that’s not the full scripture for each of these, but just those are the two I think we should close with. Matthew (09:53): Sounds great. Shawn (09:53): Any final words? Matthew (09:54): No, I think it’s fantastic. Shawn (09:56): Yep. Alright. Thanks so much. Well as always, thanks for joining us and God bless. Matthew (09:58): Yep. God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 228 – Lessons Learned from the History of the Stock Market Lessons Learned from the History of the Stock Market Learn about the repetitive cycle of past market crashes and recoveries over the past 50 years. More episodes >> One quote you may have heard before is that, “History is doomed to repeat itself.” Bob and Shawn take this quote to heart as they discuss the various times in history that the stock market has plummeted and then come back, thus repeating itself over and over again. They look at some of the most famous “crashes” of the last 50 years, break down their causes, and then discuss the after effects of the market. Some of these famous events include: 1973-1974 oil embargo Black Monday in 1987 And the market volatility during the COVID-19 pandemic   Despite significant market drops during these events, the past markets have consistently recovered and gone on to reach new highs in the following years or months. Bob and Shawn caution against panicking during market downturns and highlight the importance of staying invested through market cycles. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode ECCLESIASTES 1:9 What has been will be again, what has been done will be done again; there is nothing new under the sun. ECCLESIASTES 3:1-8 There is a time for everything, and a season for every activity under the heavens: a time to be born and a time to die, a time to plant and a time to uproot, a time to kill and a time to heal, a time to tear down and a time to build, a time to weep and a time to laugh, a time to mourn and a time to dance, a time to scatter stones and a time to gather them, a time to embrace and a time to refrain from embracing, a time to search and a time to give up, a time to keep and a time to throw away, a time to tear and a time to mend, a time to be silent and a time to speak, a time to love and a time to hate, a time for war and a time for peace. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): So Bob, here’s a question for people who are following along with this on the markets. How much do the markets typically drop if nobody’s selling? Bob (00:08): I think that would be zero. Shawn (00:11): Oh, so really it only starts dropping if you have a bunch of people panicking and selling? Bob (00:18): That creates panic. Shawn (00:18): Yeah. Welcome back to Christian Financial Perspectives. My name is Shawn Peters. This is Bob Barber, and today we’re going to be doing history lessons of the markets. And in Ecclesiastes 1:9 it says, “What has been will be again and what has been done will be done again. There is nothing new under the sun.” And Bob, I know you had something you wanted to say on this. Bob (00:48): Well, I’ll tell you what, when you’re thinking about history lessons of the markets, it’s kind of like the weather. Shawn (00:52): Okay, what do you mean by that? Bob (00:54): It’s beautiful and sunny one day in the markets or the weather’s beautiful and sunny one day, then the next day you have a big storm, and then the next day it’s beautiful and sunny again. Shawn (01:04): Sometimes on the same day. Bob (01:06): People ask me, nowadays, you could definitely tell I’m the older guy doing this. They go, “What’s the stock markets going to do?” I say, “Well, what’s the weather going to do?” And they go, “Well, yeah, I hadn’t thought about that.” Because stock markets act about like the weather do. Shawn (01:21): There’s instruments you can look at, there’s things you can kind of see if you can get an idea of what it might do, but it’ll still surprise you. Bob (01:29): And how often is the weatherman correct? Shawn (01:31): I think, what is it like 50% of the time? Bob (01:33): Yeah, exactly. So how often are economists correct? Back in ’22 when they were raising interest rates seven times they kept saying recession, recession, recession. It never came. But everybody just, and now we’ve had the tariffs and saying the same thing. No one knows until it’s happened. It hasn’t happened until it’s happened. Shawn (01:52): The only economist I know that are right a hundred percent of the time are the ones that document the history of the economy. Bob (01:58): Yeah, that is true. That’s exactly true. Shawn (02:00): Just 2020 hindsight, right? Bob (02:01): Investors should always consider financial history during market downturns because that’s where you start to think, oh no, it’s bad weather today. It’s a bad market today, and the markets, the media loves it, Shawn.The media just goes into a frenzy over it. Shawn (02:20): It’s all part of normal market cycles. Bob (02:23): Exactly. Shawn (02:23): We’ll say it one more time for emphasis, but Ecclesiastes 1:9, “What has been will be again, what has been done will be done again, there is nothing new under the sun.” Bob (02:33): So I thought today what we would do is we’re going to take a quick look back at the last 50 years. Shawn, I’m 63 now in June, and I can remember all of these things that we’re going to talk about. There’s so many more besides these four or five we’re going to talk about. But everyone… Shawn (02:56): We don’t necessarily record our episodes like Joe Rogan for three to four hours. I mean, feel free to let us know in the comments if you’d like us to talk longer, but we don’t usually go that long. So you had to narrow it down a little bit. Bob (03:09): This first one, we’re going to go back 50 years and we know what we’re going to do is we’re going to bring it up to some of the latest events, but there’s going to be a common theme that you’re going to see through every single one of these events. Alright? First, we’re going to start with the 1973-1974 oil embargo. And Shawn read what happened then? Okay. Shawn (03:30): Well, as you know Bob, I was totally around. Well, I wasn’t even born yet on that one. So the 1973 oil embargo led by Arab members of OPEC was primarily caused by the United States support for Israel during the Yom Kippur war. Bob (03:47): I was going to see, that’s why I had you read that. I wanted to see if you said that right. Shawn (03:50): I believe I said that right. Bob (03:52): Yeah, I think you said it. Shawn (03:52): Yeah. The US decision to resupply the Israeli military after the conflict began triggered the embargo as a form of retaliation and political leverage. Bob (04:01): Now everyone my age, Shawn, remembers this and the reason we remember this is because we couldn’t get gasoline for our cars. Shawn (04:10): Is that when you see the pictures of everybody lined up down the street up to the gas stations? And it was ration of how much you could get. Bob (04:18): My dad’s office was right behind the gas station and he knew the gas station owner very well. So the gas station owner would say, you come down at this certain time, I’m going to make sure that y’all get your cars filled with gas. I mean, it was a crazy, crazy time. And because of that, it triggered a major market downturn. Stocks dropped during this time as much as 45%. Shawn (04:43): From their previous highs? Bob (04:44): Yes. Shawn (04:44): Wow. Bob (04:45): Yeah, that’s a lot, Shawn. Shawn (04:46): Yeah, that’s a big drop. Bob (04:46): That’s a whole lot. I mean, it was a very radical time. I was 11 to 12 years old. Shawn (04:54): The markets never recovered from there, right? Sarcasm for anyone who didn’t pick that one up. No, they recovered. They completely went on to new highs. Bob (05:04): They completely recovered and went on to new highs. Okay. Shawn (05:08): Yeah. Bob (05:09): So we’re going to fast forward. There was a lot of things that happened during the 70’s, but we’re going to fast forward, what is this, about 12 or 13 years? Shawn (05:15): It’s Black Monday. Bob (05:17): Black Monday is very well known. I’d been in the business then for three years. I remember this very much so. Shawn (05:26): I was almost one. I hadn’t quite hit my first birthday. Bob (05:29): So you probably don’t remember it, but I bet your dad does. Shawn (05:31): No, I don’t remember it other than from studying it in history. Bob (05:34): So by the way, these first two, anybody that’s younger and listening, just go ask your parents. Okay, they’ll tell you. But the markets dropped 20% in one day and that became known as Black Monday. And it wasn’t caused by just a single event when that happened, but it was a combination of factors. Shawn (05:53): Okay. Alright. He wants me to read through it from my experience of going through it. Bob (06:00): Right, exactly. Shawn (06:00): Exactly. Yeah. So the crash was not caused, as Bob said, by a single event, but by a combination of factors including rising global interest rates, a US trade deficit, a declining dollar and inflation concerns. Bob (06:13): Does that sound like today? Shawn (06:15): I hear a few of those sound like maybe we’ve gone through this before. Bob (06:20): Yep, yep, yep. Shawn (06:23): Okay. Almost like history repeat itself. Bob (06:26): Scripture is saying. Shawn (06:26): Like Ecclesiastes said. Bob (06:27): The weather get sunny and then it gets stormy and it comes back again. Shawn (06:31): And what has happened will happen again. Bob (06:33): Okay. Shawn (06:34): So Black Monday was a perfect storm of economic pressures, market structural issues and psychological factors that combined to create catastrophic market crash. Bob (06:43): Don’t you love that. Psychological factors. And boy, the media back then, we didn’t have the internet. Shawn (06:49): So Bob, here’s a question for people who are follow along with this on the markets. How much do the markets typically drop if nobody’s selling? Bob (06:59): I think that would be zero. Shawn (07:01): Oh, so really it only starts dropping if you have a bunch of people panicking and selling. Bob (07:06): That creates panic. Shawn (07:07): Yeah. So… Bob (07:09): So, what happened after Black Monday, like it did with the oil embargo? Shawn (07:12): As you all know, we don’t invest in the stock markets anymore. Sorry. It went on to new highs in the following years after it recovered. Bob (07:21): Completely recovered and went on to new highs so far. Shawn (07:25): And so far, that’s two separate times that if you didn’t sell in either these situations, would you have more or less money now than you did before? Bob (07:34): More. Shawn (07:34): Right. Bob (07:35): Yeah. Each time it recovered. Shawn (07:36): It’s not a real loss until you sell it. Bob (07:38): So, so far we’re two out of two, aren’t we? Shawn (07:40): Yep. Bob (07:40): Yeah. So now we’re going to get up to the early 90’s. We’re going to push forward five or six years. So we had the recession of the early 1990s. Most people don’t even remember this, but I do because I was in the business and we saw this recession peak out in about 1992, and it was caused, again, by a combination of factors. It was a weak economy, loss of consumer and business confidence, psychological, again, due to the oil price shock of 1990, that was triggered by Iraq’s invasion of Kuwait. Now I remember this very well. Shawn (08:14): Me too, I just turned four and I was following this along really close. My dad had to keep taking the paper back from me because I wouldn’t let him read it. Bob (08:23): Now the markets didn’t drop 45 or 20% this time. Shawn (08:27): But still, I mean it was still a significant…18% is not nothing. Bob (08:32): Yeah. Dropped 18% from July of 1990 to October of 1990. Okay. But… Shawn (08:39): In the following years, the markets recovered and went onto new highs. Bob (08:42): New highs. We can nearly say this repeat and repeat and repeat. These are history lessons, right? Shawn (08:48): That’s right. Bob (08:48): Okay. So fast forward, we come to 2000, 2002. Shawn (08:52): Yep. Stock market, internet bubble. Bob (08:54): The internet had been invented. Who by? Shawn (08:56): It was Al Gore, right? Bob (08:57): Yeah. Right. Shawn (08:58): He also invented pants, if I remember correctly. Bob (09:00): So the internet had been invented and we had all these new companies coming out. I remember America Online and there was a Commodore computer, and then there was Apple was just, I remember the little bitty Apple about this big. Shawn (09:13): Yeah, AOL was my first exposure to logging in as well. Bob (09:17): Google hadn’t even come along yet. I mean, they were just barely coming along. Shawn (09:21): It was like “Ask Jeeves” was one of them, too. Bob (09:23): Yeah. Shawn (09:24): The old school search engine. Bob (09:25): We had, what was it? I remember another one was Lycos was another one. So anyway, we had. Shawn (09:31): It was like Netscape two or something like that. Anyway…But then also it was the World Trade Center bombings, 9/11. Bob (09:37): During that time. So between 2000, 2002 was a chaotic time. Shawn (09:41): A lot going on. Bob (09:42): And we had this dotcom bubble crash, which was very big. I mean, the NASDAQ fell over 75% during that time. Shawn (09:54): Well, it was a combination of factors. So including overvaluation of technology, stocks, the failure of many dotcom businesses to generate substantial revenue or profits, even profits, and a shift in investor confidence. Bob (10:07): People were investing in these businesses that hadn’t made a single dime and they were just pushing them up, up, up. Shawn (10:11): Yeah. Yeah. It was crazy. The value of a lot of those companies was just the idea of what they might be worth. And it wasn’t based in any fundamentals, not making revenue or not anywhere close to making a profit. I mean, that’s not sustainable. Bob (10:25): So the NASDAQ dropped over 75%, Shawn. Shawn (10:31): During that time. Yeah. Bob (10:31): So you were about 14 at this point? 14,15? Shawn (10:35): Let’s see. Somewhere around there. Yeah. Bob (10:37): Yeah. I don’t know if you were paying attention to this or not. Shawn (10:40): Oh, of course. Yeah. Bob (10:40): Hey, you were just about a couple years away from going to college. You wanted to major in finance. So… Shawn (10:48): Well, at the time, I dunno if I had made that decision, but originally I wanted to go into maybe something with being an attorney. So I wasn’t quite to finance yet. So I think I missed being able to eagerly watch this. Bob (11:00): I’m glad I saw the light. Otherwise, you’d be on TV saying, “Call me if this happens.” Okay. So it dropped, NASDAQ dropped over 75%. S&P was down, I think over 50%. Shawn (11:11): And the Dow dropped 25%. Bob (11:12): Remember the Dow’s only 30 companies and they’re the biggest ones. But what happened again? Shawn (11:18): Well, once again, in the following years, the markets recovered and went on to new highs. Bob (11:22): It recovered all that 75%, every single bit of it. So far, we’ve talked about four out of four, I believe. Is this the fourth one? Shawn (11:33): I wasn’t counting. I think it was 4. Bob (11:34): I think it’s four out of four so far. Shawn (11:35): So far 100%. Bob (11:37): 100% it’s recovered. Shawn (11:38): So next one. Bob (11:40): Now it is. We’re getting up there where everyone remembers this. This is when you started working. Yeah. You were working. Shawn (11:44): Yeah, I started working with you in 2008. So it was a great time to join your industry. Bob (11:50): I remember you were the green kid on the block. You were just joining us and we’re watching watching the whole market crash. Shawn (11:57): Yeah. I’m thinking, is this normal? Is what you deal with on a regular basis? No, every once in a while. Bob (12:03): Like Lehman Brothers crash. I mean, it was crazy. Shawn (12:08): 2007-2009 real estate bubble mortgage crisis. And so 2008 stock market crash. So this is the first one that I legit was following now that I’m working in the industry. Part of the Great Recession was primarily driven by the bursting of the US housing bubble fueled by lax lending practices. Bob (12:28): Exactly. Because you remember, you could just get a house, could go get a mortgage Shawn (12:33): As long as you’re breathing. Bob (12:33): As long as you’re breathing, you could say, well, I think I worked there. And they’d give you a mortgage. Shawn (12:38): And then also there was very predatory mortgage practices, people getting into mortgages that they shouldn’t, like the one, the adjustable rate, someone thinking, oh, I can afford this. And then a year later, a couple years later, it just would pop up so much and then they’d have to foreclose on the house. And a lack of regulatory oversight. This, in turn, led to a crisis of confidence in financial institutions. It’s almost like a very consistent. It’s always something that causes a loss of confidence. That’s almost always the reason for these starting. Bob (13:10): Do you think we ever learn by our mistakes? What has will be again. Shawn (13:13): I mean as a group, as a public, I feel like we don’t, but there are people that I think learn from the lessons, just not a general public, unfortunately. Bob (13:23): So you realize those, the people in their twenties, Shawn, I mean you’re going to be 40 here in a year or so… Shawn (13:30): I dunno what you’re talking about. Bob (13:32): But they don’t remember this necessarily. And the S&P, the Dow, NASDAQ, they all dropped over 50%. Shawn (13:40): Yep. Bob (13:42): Oh my goodness. Once again… Shawn (13:44): In the following years, the market’s recovered to go on to new highs. Bob (13:48): We’re learning a lot about history. Shawn (13:49): I know it’s repetitive, but hopefully we’re getting the point across. Bob (13:53): Every single time. These are such good history lessons. Shawn (13:57): I believe the only thing that changes…there’s two things that change each time. Alright. The thing that’s new, the exact percentage of how much it drops, and then the overall combination of causes, whether it’s one major one or multiple things that all kind of lead to people losing confidence and people start selling off. Bob (14:19): Look at the last couple of them. Shawn (14:21): Okay. In 2020, COVID-19 pandemic. Bob (14:23): Everybody remembers this one. Shawn (14:24): I mean, as the pandemic began to spread in March of 2020, government officials around the world shut down economic activity, panic triggered by the economic consequences and uncertainty led to a stock market crash that included the three worst point drops in US history to that date. Bob (14:38): I remember some of those days. I mean, my goodness, the market was down 10 or 12 one day and up 10 or 12 the next. It was crazy. This is what the crazy one was. And you remember we went in and we bought energy, crude prices even went below a dollar a barrel in the Spring of 2020. How insane is that?That’s just insane. I mean, this is not, you know it’s not going to last. Shawn (15:06): No. Bob (15:07): And so we’re just like, let’s go in and buy energy. Buy, buy, buy. And we did and we had a very big return. Shawn (15:14): What’s so crazy to me in looking back at this one is yes, it dropped really quickly, but also how fast it actually came back to at the levels it was before the drop and then continued to went on to hit new highs, period. New highs, not just highs for the year, but a new high, period, by the end of the year. Bob (15:36): No, this one was super fast. I mean the S&P 500 dropped over 30%, down 26%. Bam. It came back. So again, the common theme. Shawn (15:45): Just coming back to the levels before the drop was over maybe a few months. Bob (15:49): So we don’t need to say in the following years here. It recovered in months. The market went on and recovered to new highs. Shawn (15:55): In the following months , it went on to recover. Bob (15:56): And then another very recent one, just a couple of years, I noticed these are kind of getting tighter, is that there’s a lot you’ve had to put up with a lot in the last four or five years. You’ve got the COVID-19, then we had 2022, which I call the interest rate crisis, and there was all this fear of recession that never happened. Shawn (16:18): The fear of what where we might have a recession. Bob (16:21): Just like we’ve had with the tariffs. So the Fed raised interest rates seven times that year. And I mean we were at 0% interest. Shawn (16:33): They were trying to fight inflation. Bob (16:35): Yeah. They were trying to stop it. So it was soaring inflation they were trying to combat. Exactly. And those interest rate hikes, concern of a global recession. We had the invasion of the Ukraine during that point too, which disrupted some of the global supply chains. And NASDAQ dropped over 32%. Dow dropped over 20%. Even bonds were down that year. But that was because interest rates had never gone up that much in one year. When you go from 1% to 2% and you’ve raised interest rates 100%. But again, just within months and the following years, the markets did what? Shawn (17:14): Completely recovered and went on to new highs. Bob (17:16): I really see in a pattern here. This year… Shawn (17:19): What pattern? Bob (17:20): Markets always go on to new highs. They recover and go on to new highs. And so all the day traders are just driving themselves crazy and they just need to stick around. Shawn (17:31): This year, as of the recording of this, unless you’re watching this in, I don’t know, 2026 and beyond, but this year the tariffs, so NASDAQ dropped over 20% in just a few months, the S&P 500 went into correction territory. Will the markets once again recover and reach new highs? Bob (17:47): You know what, Shawn? By the time we’ve made this, I mean not by the time we made it, we’re making it right now. Shawn (17:51): By the time this is published. Bob (17:52): By the time this is published, it might’ve already recovered. But even if it hasn’t, it’s a great history lesson to learn because the common theme for all of this is that the markets always recover. Now we always have to make the compliance statement that… Shawn (18:09): Sure, past performance is no guarantee of future results. Yeah, okay. Bob (18:12): But the question you always have to ask yourself, is it really different this time? Shawn (18:17): Yeah. Now obviously what we can’t say is, like I said before, how much is it going to drop over what period of time? And then how long is it? Months? Is it a year, two years? How long before it comes at least back to where it was before the drop. That’s what we don’t know. Bob (18:35): Well, one thing we do know is we know that God’s word never changes. Shawn (18:40): That’s right. Bob (18:41): It’s always the same. And we do know we’re going to end up on this scripture. So, go for it, Shawn. Shawn (18:47): All right. Ecclesiastes 3:1-8, “There is a time for everything and a season for every activity under the heavens. A time to be born and a time to die, A time to plant and a time to uproot, a time to kill and a time to heal. A time to tear down and a time to build. A time to weep and a time to laugh, a time to mourn and a time to dance, A time to scatter stones, and a time to gather them. A time to embrace and a time to refrain from embracing, a time to search and a time to give up, a time to keep and a time to throw away. A time to tear and a time to mend. A time to be silent, and a time to speak. A time to love and a time to hate. A time for war and a time for peace.” Bob (19:30): No matter what, during the good times, you always have to be understanding that the bad times will come. And during the bad times, you’ve got to be understanding that the good times will come back. They always do. Do you need a Christian based financial advisory firm to guide you through all these crazy landmines and ups and downs? We at Christian Financial Advisors are here to help you do that. We focus on long-term biblical principles and biblically responsible investing. And we can be reached by phone or text during business hours at 830-609-6986. Or you can reach us through our website www.christianfinancialadvisors.com. We’ve helped hundreds of Christian families in their financial stewardship journey for over 30 years. Shawn (20:13): That’s right. And we love to be able to help you because we know that, “Plans fail for lack of counsel, but with many advisors, they succeed.” And so don’t fret. Don’t be anxious about what the markets are doing today or tomorrow. Trust in the Lord and plan for the future. It makes me think of Joseph. God gave him the vision. He saved not just Egypt, but the entire surrounding area by planning ahead and knowing that, “Hey, we do right in the good times and plan for when times aren’t as good, we’ll be prepared.” Bob (20:46): That’s right. Shawn (20:47): So contact us. As always, we’d love to hear your thoughts, comments, suggestions. You can comment, you can text us, you can email us. And as always, God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 227 – Christian Stewardship and Investing Christian Stewardship and Investing Learn the definition of Christian stewardship and how we can be better managers of the blessings God has entrusted us with. More episodes >> One of the biggest stressors as humans probably has to do with our finances. Almost everything requires a payment, and treating finances in a way that glorifies God is just another add-on that Christians may have, something Christian Financial Advisors calls “Christian Stewardship”. Bob and Shawn discuss Christian stewardship and its relevance in today’s society. Christian stewardship is the belief that everything we have, including our time, talents, and resources, is a gift from God to be used responsibly and for His glory rather than only for personal gain. We are his managers of the money, gifts, and blessings that have been bestowed upon us. So how exactly does a Christian honor God with their finances? Biblically responsible investing is one way of showing Christian stewardship. Christians can invest in companies that demonstrate Christian values and avoid companies that violate those values, regardless of investment returns. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode PSALM 24:1 The earth is the Lord’s, and everything in it, the world, and all who live in it. HAGGAI 2:8 ‘The silver is mine and the gold is mine,’ declares the Lord Almighty. JAMES 4:17 If anyone, then, knows the good they ought to do and doesn’t do it, it is sin for them. 2 CORINTHIANS 6:17 Therefore, “Come out from them and be separate, says the Lord. Touch no unclean thing, and I will receive you. ECCLESIASTES 5:10 Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless. 2 TIMOTHY 1:7 For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind. EXODUS 20:3 You shall have no other gods before me. I TIMOTHY 6:10 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. HEBREWS 13:5 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. MATTHEW 6:21 For where your treasure is, there your heart will be also. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): If in your heart you don’t see the importance of the stewardship aspect of the biblically responsible investing side of it, your heart is not in it. Welcome back to Christian Financial Perspectives. My name’s Shawn Peters. This is Bob Barber, and today we have a very awesome topic that is both deep, but one that we feel is very important. Bob (00:32): We’re talking about Christian stewardship today and investing. Shawn (00:37): I know Bob in particular has spent a lot of time preparing for this episode and we are going to do our best to cover it in a way that number one, glorifies the Lord, and number two, that is done so in a way that is loving because sometimes the truth can be hard to hear, but we don’t want to be presenting this as well as us being prideful or as us trying to say like, “Oh, we’re holier than thou,” like a Pharisee kind of a thing. But it is something that’s important that we want to make sure that we get out there and that at the end of this episode, I would say whether you agree with us or not, that’s not really on us. That’s going to be something between you and the Holy Spirit. And we hope that this will bless you. Bob (01:27): Shawn, in developing this as sometimes the programs that come to me in 10 or 15 minutes, I think in this next 20 or 30 minutes you’re going to be listening to me. This took a lot of time, maybe 30 to 60 hours. I mean, because I was trying to say it in such a way that like you say, is loving, but in the same way, at the same time truth, truth can be dividing. I’m trying to lay the foundation here for you is first we got to talk about what is a steward. And as I looked at different definitions, I had one I came up with, it’s basically like a manager. So Shawn, I’ll let you read what is a steward, the definition I came up with. Shawn (02:12): So we’ll lay some of that framework and foundation for you here. So the definition of a steward, “A steward is responsible for managing anything entrusted to their care. This includes managing property, resources, finances, planning, organizing, staffing, leading, and making wise decisions.” So that’s a steward. But today we’re talking about Christian stewardship. Bob (02:34): Which adds another layer. Shawn (02:37): “Christian stewardship is the belief that everything we have, including our time, talents, and resources, is a gift from God to be used responsibly and for his glory rather than only for personal gain.” Bob (02:50): That’s the big thing right there. Shawn (02:52): Okay. Stewardship includes handling, finances, investments – are what we spend our time on, the gifts that we have, things that maybe you’re very talented or good at. That’s where that talent comes in, possessions and relationships. Bob (03:05): It’s looking at the manager and the steward from a biblical perspective. And then what goes into all this as the other part of the foundation is God’s ownership. The core principle behind Christian stewardship is the understanding that God owns everything, he owns it all and that we are managers, we’re stewards of his creation and all the resources. I mean this is everything. Shawn (03:34): Arguably that is the pillar because why Christian stewardship? Why talk about it? Why is it even a thing? Well, because starting with number one, God’s ownership. If God owns everything the earth is the Lord’s and everything in it, which is one of our scriptures we have today. Well, from that foundation then it’s a natural progression that, well of course we would be Christian stewards because none of it actually belongs to us. We’re simply managing and trying to do a good job with what God has entrusted to us. Bob (04:08): That’s hard for people to hear in America. “What do you mean this is not my stuff, this doesn’t belong to me?” He says in scripture it belongs to the Lord, it’s his. And like you say, we’re managers of it, but he gives us a lot of responsibility like an owner would in a restaurant or in a construction business or any business. The owner gives the manager a lot of responsibility and that manager is also held accountable Shawn (04:37): That’s right. Bob (04:37): So his responsibility and accountability and Christian stewards are responsible. We’re responsible for caring for and managing God’s gifts wisely and responsibly, knowing we will be accountable to how we use them, these things that God has given us to manage. Shawn (05:00): It makes me think, too, at Christian Financial Advisors, I’m the operations director, so we’re not a 50 or 100 person firm right now. So, effectively whether you want to say operations director or chief operating officer or whatever you want to call it, at the end of the day there are certain things that Bob, you give me as responsibilities and I have some discretion. However, when it comes to what I’m doing, I always have to think, okay, well would Bob be okay with this? Is this something that aligns with Bob’s values and priorities as the owner of the business? And so that’s kind of the same idea of everything that God has entrusted to us. Well, he’s the big “O” owner. Bob (05:47): Because when you say that… Shawn (05:48): Because he actually owns it. Bob (05:49): Yeah, exactly. Because when you say that, that pressure on me comes to, wait a second, God owns this. And that’s why we want to operate Christian financial advisors from a biblical worldview because God owns it. Shawn (06:03): It does help me a lot that you are trying to align your stewardship of the business with what the Lord wants because then me aligning myself with what you’re trying to do, at least there’s not a conflict. If I was working for a boss who was not a believer, who wasn’t a Christian, that might be hard because there might be some times where, well, this is something that’s important to the person who owns this business even though God owns it all. But what about when there’s a conflict of, well, I know this is what the Lord would want me to do, but that’s not necessarily what the person I’m working for wants me to do. Bob (06:38): So I came up with, there’s four examples by the way. There’s a lot more examples of stewardship, but I came up with four main examples because this is going to go into what we’re talking today, which is about Christian stewardship and investing, but the first example is stewardship of finances, and that involves using our money wisely, giving generously, and investing with biblical principles. Shawn (07:02): That’s right. That’s right. And number two, stewardship of time. So prioritizing God’s work and using time effectively to serve others and advance his kingdom. Bob (07:12): Number three is the stewardship of talent, using our abilities and skills to serve God and to serve others. Shawn (07:20): That’s right. And then number four, stewardship of the environment. Caring for the earth and its resources, recognizing that we are responsible for protecting God’s creation. And when you look at these four primary areas, I guess you’d kind of say these are kind of covers most of it. Obviously, we could go into a lot more detail within each one of these, but when you’re looking at, well, when you’re wanting to be generous, when you want to do more for the Lord’s kingdom, that doesn’t always mean that if you don’t have a certain amount of dollars, you don’t have a certain amount of money, that you can’t be a good steward, that you can’t be generous because you have time, you have your talents, you have just, Hey, what are things you could do to help care for the earth and resources, not as a worship or elevating to almost idolatry the world. No, no, no. We’re doing a good job of this again, because the Lord made this. It belongs to him. Bob (08:18): Right. Shawn (08:19): I want to take good care of it. Bob (08:20): That’s why Christians should be should be… Shawn (08:22): We should the weirdest green nuts or environmentalists on the planet for whatever reason we’re not. Bob (08:27): It’s so funny because, and that’s something that we’re going to be talking about, which is biblically responsible investing is taking care of the environment. You don’t want to trash the environment because that’s what God made for us. Shawn (08:37): It’s out of respect for the creator and the one who owns it. Bob (08:41): And he made the creation for us. Shawn (08:43): I always think of it as if you’re house sitting for somebody, are you going to trash the place and put holes in the wall and maybe do some remodels for the way you, well, hold on. If you’re supposed to be housing, you’re supposed to make sure when they come back it looks at least as good as when they left. Not worse. Bob (09:04): Biblical basis for stewardship is found in many scriptures such as the command to work the land. Shawn (09:10): Genesis 2:15. Bob (09:12): And the Parable of the Talents, which we’ve had an entire program and you could go through our archives and look for that. We spoke strictly about the talents, I think Matthew… Shawn (09:21): Matthew 25:14-30. It’s a really good one. Again, that’s a fantastic example, too, of how with stewardship, not everyone is the same. We’re all entrusted with different things, whether it be different amounts of actual financial resources or talent or how much time we have on this earth. And so what it comes down to, though, is no matter how much or how little that you are entrusted with by the Lord, it’s do the best that you can to honor him. Bob (09:51): So here we get into Christian stewardship and investing. We’ve laid the foundation for it now and Christian stewardship and investing today is known as biblically responsible investing. Shawn (10:03): And some people call it faith-based investing. Bob (10:06): They do. Shawn (10:06): But we want to be specific. We mean the Bible. Bob (10:08): So this is just one form of Christian stewardship is how we invest those resources that God has given us. So there’s kind of a definition here of biblically responsible investing. I’ll let you go over that, Shawn. Shawn (10:23): So some examples include investing in companies that demonstrate Christian values while avoiding companies that support services or produce goods that violate them, regardless of how good the investment returns may or may not be with biblically responsible investing. Bob (10:38): As we’re going through this and we talk about the returns and biblically responsible investing, sometimes biblically responsible investing returns will be better, sometimes it will be worse. The main thing is this is not about the returns, this is about obedience. Shawn (10:52): Bob, we were talking a little bit in preparation for this, but there is a command for us to go and make disciples of all men. (11:00): But to do that, people have to come to faith in Christ first. They have to receive the Holy Spirit. We can’t really get into the real discipleship and learning more arguably advanced concepts. If someone hasn’t accepted Christ as their savior and has the Holy Spirit, they can’t really move on to that other stuff. They’re missing that first piece. Well really that’s when we say that the returns whether they’re better or worse. Okay, we certainly talked about that. We’ve talked about in other programs, but what it comes down to is if you’re watching this, if you’re listening to this, if in your heart you don’t see the importance of the stewardship aspect of the biblically responsible investing side of it, your heart is not in it. The rest of that conversation is kind a moot point because we’re not in agreement on that foundation and therefore whatever you do in any kind of comparison to secular versus biblically responsible, you’re kind of starting from a negative, I guess. Bob (11:59): You’re itching me to go, I want to get into this. So the biblical basis for biblically responsible investing and stewardship, believe it or not, it’s found in hundreds of scriptures, but we’re not gonna’ going to read all of them now. So we’ve already shared one with you, which is Psalms 24:1, “The Earth is the Lord’s and everything in it and all who live in it.” The second one is that kind of goes along with that Psalms 24:1 is Haggai 2:8, “‘The silver is mine and the gold is mine,’ declares the Lord Almighty.” He’s saying all the money is his because that was used as the monetary exchange back then. Shawn (12:35): And then we have James 4:17. Bob (12:37): Which goes under BRI again. Shawn (12:38): That’s right. “If anyone then knows the good they ought to do and doesn’t do it, it is a sin for them.” And 2 Corinthians 6:17, “‘Therefore come out from them and be separate,’ says the Lord, ‘Touch no unclean thing and I will receive you.'” Bob (12:52): So this is the basis for biblically responsible investing. It really is calling for separation from the way the world does it. This is God’s ways, not man’s ways. Okay. Christian stewardship and investment returns. Another great scripture I think is very important when we talk about that investment returns is Ecclesiastes 5:10 says, “Whoever loves money never has enough.” That’s the main thing there. “Whoever loves wealth is never satisfied with their income, As this too is meaningless.” You see Christians stewards need to be extremely careful of investment returns becoming an idol. So we’re going into a different part here. We we’ve talked about stewardship and investing and now we’re talking about investment returns because I’ve seen in my years of doing this, Shawn, in America, investment returns become a form of an idol to somebody. When I looked up the definition of idolatry, it’s the worship of anything that’s made by human hands and minds, which is many times behind investment returns. Shawn (13:55): Yeah. Well, and Bob, as you’ve seen in over three decades of working with clients, I mean you’ve had clients that have been with you for over 30 years. Bob (14:04): Yes. Shawn (14:05): And many, many that have been with you for 20 and somewhere more or less than that, but you’ve had a lot of longterm relationships. Bob (14:13): I’d say average about 25 years. Yeah. It’s been a long time. Shawn (14:15): And correct me if I’m wrong here, but have you not noticed that the actual potential investment returns are almost never really that important? Because what it comes down to is that planning and making sure that you’re saving and investing enough and that chasing the returns, not only is it not going to make you wealthy, but it also isn’t really the most important thing for that planning for that long term, and therefore being a good steward. Bob (14:43): Yeah. We’ve mentioned that we’ve had programs that investment returns is not what is behind the majority of wealth. Shawn (14:50): That’s right. Bob (14:51): It’s not about investment returns, but if we obsess over those investment returns or lack thereof, and we start becoming fearful again, it’s becoming an idol. 2 Timothy 1:7 tells us, “For God has not given us a spirit of fear, but of power and of love and of a sound mind.” And we should not fear ever. When markets are down, it’s interesting when the markets are way down, the phone’s not ringing off the hook here, but I remember talking to Matthew when he was with another major secular firm. He said, man, Haywood gets so many calls and people would be so mad because we know who owns it and we’re not putting the investment returns as an idol in putting this above God because Exodus 23, which is the first commandment, “You shall have no other gods before me.’ So we’re not going to make investment returns our god. Shawn (15:52): That’s right. God cares much more about how we invest and what’s in our hearts, the why, than the returns we make on this earth, whether good, bad or average. Because remember, God owns it all. So what does it matter to the Lord if you made a little bit more here or a little bit less here or somewhere in between because he already owns it all anyway. How do you have more than 100%? Bob (16:18): Now, this is going to be an interesting one, too, as we’re talking about stewardship investing, you realize investments should be viewed as tools for stewarding God’s resources, not as objects of worship. Shawn (16:30): That’s right. 1 Timothy 6:10, “For the love of money is a root of all kinds of evil. Some people eager from money have wandered from the faith and pierce themselves with many griefs.” Bob (16:41): I don’t mean to be adding or taking away from scripture when I say this, but in this passage, if you took the love of money and just replaced it with the love of investment returns because investment returns can create more money. Shawn (16:54): It’s still the same. It’s helpful for the concept. Bob (16:56): It’s meaning it’s the same, it’s the same meaning. The question, and the question always is, how much is enough If you make 7% over 6% or how about 8% over 6%? At what point do we as Christians ever sell out our Christian values for possibly a better return if it’s even available? And not that it’s going to be that with biblically responsible investing, but remember some years, sometimes two years or three years, it may be better with secular investing and doing it God’s ways and then the next three years it may be better with biblically responsible investing because as you know, biblically responsible investing focuses more on the midsize companies versus the mega caps because the mega caps get so woke on us that it’s very hard for us to invest a lot in the mega caps and when the market is relying on three or four companies to push it up that don’t fit our scenario. Shawn (17:51): And also that one year versus the other, it comes down to investment philosophy as well. Because you’re looking for companies that, keep in mind, we say biblically responsible investing. For those who haven’t seen some of our other programs, that doesn’t mean we’re only investing in Hobby Lobby and Chick-fil-A, like openly Christian companies. Bob (18:09): Which those two aren’t even public, so we couldn’t. Shawn (18:10): Exactly. Yeah. But it’s more so of, well, no, these are companies that simply are aligning with biblical principles and values. They’re not violating those things. They’re treating people well. They’re producing good products. And so just think about it logically. Okay, well those companies that do that are also going to be far less likely to get into trouble from chasing stuff just for the sake of greed or trying to abuse people or vendors. And so it just depends on the year which one did better or worse. Bob (18:41): We’re getting kind of to the end. I had a couple more scriptures in here. There’s so many. Hebrews 13:5 warns us to, “Keep our 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.'” Again, you can replace that love of money with the love of returns. It’s basically the same thing. Shawn (19:01): That’s right. And Matthew 6:19-21. I won’t read the whole thing, but it reminds us about where to store our treasure and why. And specifically in verse 21, it states, “For where your treasure is there your heart will be also.” Bob (19:12): As we come to the conclusion in obsessing over investment returns actually reflects a materialistic worldview that aligns with the world’s priorities, not god’s. Shawn (19:25): That’s right. Matthew 6:24 warns, “No one can serve two masters. You cannot serve both God and money.” Pursuing wealth above all else leads us to neglect God’s kingdom and justice. Bob (19:37): This next little saying, I’m going to say I’ve got it from a friend of mine that’s really strong, very deep into the biblically responsible investing movement. He said, “The pursuit of better and better returns over proper stewardship of God’s resources can cause us to forget that the internal value of our lives is not found in wealth, but in the kingdom of God.” Matthew 6:19-21 teaches that we should store up treasures in heaven, not on earth where they’re temporary. Christian stewardship and biblically responsible investing are very different from the world’s ways. It’s a clear choice here. God’s ways or man’s ways. So I hope this has helped you today. We’ve gone into quite a journey. It took a little bit longer than normal, but remember, biblically responsible investing is just another way of aligning your faith and your life with the biblical worldview. And if you’re interested in learning more, Shawn, give them all our contact information. Shawn (20:38): Sure thing. You can call our text us at 830-609-6986. You can also visit our website, www.ChristianFinancialAdvisors.com, and some other areas of Christian stewardship we’ll be covering the future, Christian stewardship and financial planning, Christian stewardship and possessions, Christian stewardship and estate planning, Christian stewardship and giving, Christian stewardship and spending, Christian stewardship and financial advice, and Christian stewardship and saving. As always, thank you so much for joining us. If you stuck around this long, go ahead and give us a like or drop us a comment on if you have a preference for another topic you’d love to hear us cover. And yeah, hope you join us for the next one. God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 226 – Why Rental Home Income Isn’t Worth The Hassle Why Rental Home Income Isn’t Worth The Hassle Learn why rental home income isn’t as much as you think it is. More episodes >> Have you ever considered rental house income as an extra source to add to your finances? Things may not be as easy as they seem, as rental homes are often not delivering the expected returns for investors, especially in high property tax areas like Texas. Bob and Matthew cover the estimated yield income from a rental home property in comparison to other investment choices. If rental income is something you’re interested in delving into a little more, a better alternative to rental homes may be to invest in a diversified portfolio of publicly traded real estate investment trusts (REITs). Not only can they provide higher yields of over 5% with more liquidity, they are also much less time and hassle than owning individual rental properties. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Matthew Barrovecchio Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you dreaming of real estate investing but concerned about landlord hassles? Many investors are surprised that rental homes aren’t delivering expected returns in today’s market. We’ll break down the real numbers behind rental properties in Texas and reveal a simpler alternative with better yields and less headache. Let’s get some perspective. Matthew (00:27): Hi, welcome to our program today, Christian Financial Perspectives. My name is Matthew Barrovecchio and I’m here with Bob Barber. And we’re ready to talk about something that Bob has a lot of experience in and is very passionate about – why rental home income is not worth the hassle. Tell me more. This is very interesting to me. Bob (00:48): Well, it is interesting to a lot of people because they’ve heard their whole lives how great rental homes are. You’ve got HGTV always pushing it, and to me, when I looked at it, and I’ve been down the road, by the way, I’ve owned rental homes. My dad owned like 40 of them. Matthew (01:09): You’re speaking from experience. Bob (01:11): A lot of experience and actually growing up in it and having to clean up after people with the way they left them. Alright? But the income from a rental home is, like you say, it’s just not worth the hassle anymore, especially here in Texas where we have high property taxes and a few other states do as well. And we’re going to prove that today, and I’m going to use some typical examples of homes here in the Austin, San Antonio area where we are, but other areas may have a higher price than this, but also the rent will be higher, so it will all kind of measure out the same. Matthew (01:49): Correct. Yeah. Yeah. The principle still applies nationwide, likely. Bob (01:53): Yeah. So I took a typical, if somebody’s going to says I want to go out and buy a rental home, a lot of times it’s a retiree because they like the income, say, I want to buy the rental home, and the income’s not the problem many times, but it’s the net income after all the taxes, insurance, the maintenance. So I picked a typical three bedroom, two bath, two car garage, single family home that’s about 2000 to 2200 square feet. Like I say, in the Austin/San Antonio region, which our whole region is about 4 or 5 million people. I mean, we’re big, and a lot of people are moving to Austin and San Antonio so they know what we’re talking about. But a home like that in some areas can be gotten as low as $350,000 today. (02:39): Which may surprise a lot of people that are, because we’re nationwide. Somebody might say, well, I can get that for 150, or some might say that would cost me a million dollars. But several years ago, that was about a 100k more when interest rates were so low. But since interest rates have been driven up so much, the higher interest rates have pushed the prices down very much around here. I found that – so you went and you buy this home for $350,000. I found that the typical rent for this home is $22,800/year. Right at, I mean, about $1900 a month is what you can rent it for. Matthew (03:18): Okay. Bob (03:18): So $22,800 a year. Now, right now you think, well, that’s a pretty good income on the $350,000 investment. Matthew (03:26): Yeah, it’s not quite 10%, but it’s getting close to it. Bob (03:29): But that’s not at all the whole story. Matthew (03:30): It’s not? Bob (03:34): I like it because isn’t it, there’s the old saying, it’s not what you make, but it’s… Matthew (03:38): What you take. Bob (03:39): It’s what you keep. Matthew (03:40): Oh, okay. Bob (03:41): It’s what you keep. It’s not what you make, but what you keep. Matthew (03:44): Okay. Bob (03:44): And in my research, the property taxes on this price of home in Texas, the property taxes run about $7,000 annually. Now, we’ve always looked at a lot of properties in Colorado because we always go there, but they have a state income tax, but the property taxes, there may be only a thousand dollars. So it’d be a big difference, but the home prices would be higher. So you’re stuck in this same thing. But here in Texas, the property taxes would average around 7k. Since insurance has gone up so much. We’ve all watched our homeowners insurance really skyrocket nationwide. Matthew (04:18): We’ve seen that in Florida a lot. Bob (04:20): So now that’s around $3,000. So immediately you’ve got $10,000, just the property taxes and insurance driving that $22,800 gross income. Matthew (04:35): Yeah, down by almost 50%. Bob (04:37): Exactly. Yeah, exactly. You take just that number and not what your time is worth. Not anything breaking, not a client moving out on you. Many time, renters will maybe stay in for two years and then there’ll be a month where it goes empty or two months while you’re finding another tenant, that gets that down to a 3.6% annual yield. So you with me? Matthew (05:00): I am. Money markets today are paying higher than that. Bob (05:04): They are, yeah. Yeah. CDs are right at about 4%. So why in the world would you want this risk of one property? Also, if you lose… Matthew (05:16): Not diversified. Bob (05:16): If you just lose one month’s rent or you have a water heater go out, or we had a hail storm here about a month ago, got to replace the roof, you would have the deductible. Every single time I talk to somebody who’s owned a rental home, they always say, yeah, we just had to do this and this and this. It’s always something that they had to do to that rental home, that knocks that yield even lower. I mean, you’re down in the 2.5% to 3% range, and no one really ever thinks of this. If you’re financing at today’s rates, you’re negative cash flowing. Matthew (05:56): With rates at what? 6-7ish percent? Bob (06:00): About 6-6.5 %. Matthew (06:01): Yeah. Bob (06:02): Right now you can get maybe a 5.5% loan at a 15 year loan, but then your payments are going to be higher paying ’em to pay it back in a shorter period. So what’s the alternative? I mean, you might like real estate. Real estate does produce income. I believe a good alternative to this, and I’ve fallen into this myself, is commercial real estate where you have triple net leases. What does that mean? The tenants are paying all the taxes, all the insurance, all the maintenance. Anything goes wrong. I was just telling you in my office building that I own, we just had to replace a toilet in the building. We just had to replace a faucet. Anything that goes wrong with that building, I get to pass that cost on to the tenants. There’s no such thing. I mean, maybe there is in some areas, but I’ve never heard of a triple net lease for a rental home, where you go back to the tenant and you say, “Hey, I had to replace this roof. I need to ask you to pay for the cost of this.” No, that’s not flying. But in a commercial situation, it does. But even at that, you’ve got to be careful about buying a commercial building because you’re putting all your, what did your mom always say? Don’t put all your eggs in one basket. Matthew (07:18): Yeah. I mean, think about just over the last five years, how commercial real estate and real estate in general has changed, right? By taking on that additional risk of putting all your eggs in one basket, it’s a huge risk, especially if the dynamic changes in the market. Bob (07:33): You’ve got one market, one area, one type of real estate. Matthew (07:36): Think about malls as an example. Bob (07:40): I think there’s an easier way, much easier way. Matthew (07:44): Tell me more. Bob (07:45): Okay. The easier way is owning commercially, commercial real estate traded through a real estate investment trust, and a real estate investment trust, what it does, is it goes in and it buys lots of different properties in many different categories. Now, you can have just a real estate investment trust. It just focuses on industrial buildings. You could have one that just focuses on offices. You could have one that just focuses on apartments. You could have one that just focuses on data storage that they’ve come out with those recently. When it comes to owner real estate trust, there’s also two areas I want to caution my listeners and those that watch us on YouTube, and that’s owning a privately traded REIT. Don’t get yourself caught in owning a privately traded real estate investment trust. Matthew (08:42): Why? Bob (08:43): Because they can pull the rug out from under you. And what I mean by that, that’s an old country boy saying – pulling the rug out from underneath you – is they can categorize, I mean, redo what the share price is per share without any notice, and you just get this letter in the mail, you bought into that privately traded REIT at $10 a share, and all of a sudden you get a letter, it says it’s worth $7 a share. Now you’re like, I dropped 30% in value. Matthew (09:16): How did that happen? Bob (09:18): Where a publicly traded real estate investment trust is daily traded in the markets. You always see the price. If it starts dropping, you see it and you know it. It’s very transparent. A privately traded REIT isn’t. In my earlier days, years. I mean, this is 15, 20 years ago when I did do commission-based products. We sold REITs back then. Real estate investment trust that were privately traded. About half of them did well, half of them didn’t do so well, and they got those letters. And so I would caution anybody against that. Matthew (09:56): Okay, Bob (09:57): So the answer to all this is putting together a good portfolio of publicly traded real estate investment trust between industrial and retail. It can be things like owning a Walmart and a Target, maybe an HEB here in Texas or Kroger. Matthew (10:16): Maybe an HEB in Florida someday. Bob (10:18): Yeah, you’re hoping that, right? There’s REITs that focus on lodging and resorts and hotels, office buildings, residential apartment homes, warehouses, healthcare. We’ve got all these listed here, even cell phone towers, timber land, farmland REITs, there’s even REITs that just buy outdoor advertising signs. That’s a good cash flow, all kinds of REITs. And we put together a couple years ago, because we had some clients that own rental homes. They’re like, I’m tired of these things. And when I pointed out to them… Matthew (10:52): “Get me out.” Bob (10:52): Yeah, the returns. So we put together a diversified portfolio of publicly traded real estate investment trust with a minimum investment of $100,000 to go into this. And it’s 30 different types of REITS within it. Matthew (11:09): 3-0. Thirty. Bob (11:12): 30. Yeah. Across all the different sectors. And the yield of that is over 5.25-5.5% even today. Remember what we were just talking about? With a rental home, that yield is going to be somewhere around 2.5 – 3%. So this gives you a better yield. It’s 100% liquid daily. There’s no title company you have to go to. There’s no closing cost. What you see is what it’s worth. If you decide you want to sell your real estate investment trust portfolio today, it’s sold within minutes. Matthew (11:46): And you’re not spending time on calls or maintenance or anything like that, Bob (11:51): None of that. We call it mailbox money, by the way. I personally have our portfolio, and of course I have to buy that after everybody else buys it or else it would be front running. So I buy behind everyone, but I’ve owned it for several years now and I really like the dividends that come from it. And I’ve had some very nice appreciation. Now you can have depreciation too, because it’s going to move with the markets, but it’s a long-term hold, and that’s the way I would look at it. So if you’d like something like this, it just kind of perks your interest and you’re like, I like the idea of getting income from rental property. This is really a good alternative to owning a rental home. Plus you just have so much more diversification and liquidity. Matthew (12:42): Right. Yep. That’s great. That’s great. And for the individual who wants to be in a rental home because they like working with their hands, go get a handyman job. Do things around the neighborhood. Bob (12:56): Exactly. You’re going to make more money. Matthew (12:58): Right. Bob (13:00): If you’re interested in this, give us a call. Our number is 830-609-6986. You can call or text that during business hours, and you can also find us on the web www.christianfinancialadvisors.com. Any last words you’d like to share? Matthew (13:13): No sir. Alright, grace and peace. God bless you. Bob (13:15): Alright, thanks. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 225 – Ten Traits of an Orderly Financial Household Ten Traits of an Orderly Financial Household Instead of getting overwhelmed, hire a fee-based, fiduciary-driven financial advisor and planner to help get your financial household in order! More episodes >> Do you ever feel like your household isn’t in order, especially when it comes to your finances? This is something many people struggle with, and why it’s important to have a trusted financial advisor by your side to walk you through the steps of getting your finances in proper order. Bob and Matthew discuss 10 of the areas that they see people struggling with the most when it comes to organizing finances. From choosing the proper insurance for your house and health to having an up-to-date estate plan, there are several important areas of discussion in today’s episode. If you are looking for help with putting your financial household in order, our fee-based, fiduciary-driven financial advisors and planners are here to help. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Matthew Barrovecchio Bible Verses In This Episode MALACHI 3:10 “Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” PROVERBS 3:9 Honor the Lord with your wealth, with the first fruits of all your crops; PROVERBS 30:25 Ants are creatures of little strength, yet they store up their food in the summer; PROVERBS 21:5 The plans of the diligent lead to profit as surely as haste leads to poverty. PROVERBS 22:26-27 Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you struggling to bring order to your family’s finances? Many households miss key elements that create true financial peace. In this video, we’ll uncover 10 biblical traits of an orderly financial household – from emergency funds to estate planning. These principles will help you honor God with every dollar. Let’s get some perspective. Matthew (00:27): Hi. Welcome to our program today, Christian Financial Perspectives. My name is Matthew Barovecchio and I’m here with Bob Barber. And we’re going to talk about the 10 traits of an orderly financial household. Bob, tell us more about how you came up with this topic. Bob (00:44): It’s years, years and years of experience, Matthew, and seeing what is the ingredients that make a financial household successful. And this is pretty easy for me. I mean, I came up with these 10 in probably 15 minutes, that quick because I just see these traits in orderly financial households over and over. Matthew (01:14): I love the word orderly in the title. Our God that we serve is a God of order. Bob (01:19): That’s right. Matthew (01:20): He is not a God of chaos. And so I think right off the bat, it’s an encouragement for me and should be an encouragement for everyone here, that this is all rooted in the God that we serve. So it’s exciting. Bob (01:31): And speaking of that, we always want to focus on biblical principles here because this is Christian Financial Perspectives and we are different. We’re a different financial program, not based on a secular worldview, but a biblical one. And that’s why this first one is so important. Matthew (01:49): Perfect segue. Bob (01:50): Yeah, go ahead. I’ll let you go into this first one. Matthew (01:53): No, it’s great. Yeah. So right off the bat, number one trait, a focus on giving tithes and offerings. Bob (02:00): Yes, exactly. Malachi 3:10 says, “ring the whole tithe into the storehouse and see if there’s not enough room for it,” that you won’t have enough room for it. “And I will throw open the heavens and blessings so much that you won’t have enough room for it.” And I’ll protect you as well in this scripture. Matthew (02:20): Amen. Bob (02:20): I’m kind of quoting it off the top of my head right now because it’s not in front of me, but it’s just bring the whole tithe into the storehouse and see if there’s not room enough for it that you will not have enough room to maintain it all. And I’ve also noticed when people tithe, it’s the craziest things like your car doesn’t break down as much. You don’t have the air conditioning breaking down in your home as much. It’s just the weirdest thing actually. And it’s the one place in the Bible where God says, “You can test me.” Yes. We should never test God. But in this, God says, test me in this, in that scripture, there’s another one in Proverbs 3:9. It says, “Bring the first fruits of what you’re producing and see if your barns,” because they were using barns back then, “Would not be overflowing with so much abundance, you won’t have enough room for it.” So these really play into an orderly financial household, because everything comes behind this when you first do this. Matthew (03:24): Precisely. Tithe is biblical, but God also wants our heart. He’s worried about our heart. Right? He loves a cheerful giver. Bob (03:33): That’s what it says over in the New Testament. God loves a cheer giver. Matthew (03:37): Amen. So there are times in one’s financial journey where giving to the degree that one feels the Lord is directing them to or guiding them to is an act of faith. Bob (03:51): Yeah, it is. Matthew (03:52): But Hebrews 11:6 tells us that, “Without faith, it’s impossible to please him.” Bob (04:01): And we should not have a spirit of fear, which is I think that’s in 1Timothy 6:7. Matthew (04:06): I think somewhere in there. Bob (04:08): That God does not give us a spirit of fear but of sound mind. So by not tithing, does that revolve around fear that God’s not going to provide the rest? Matthew (04:20): Yep. Giving breaks the power of money. Bob (04:22): It does. Matthew (04:23): And it puts mammon and a lot of what we revolve the American culture around in its place and elevates the Lord, right? Bob (04:32): Takes away the idols. Because mammon is an idol. Money is an idol. Remember they built the golden calf as an idol while Moses was up there getting the 10 commandments, they go build a golden calf – made out of gold, made with human hands, the same thing. So it is the good starting point. Matthew (04:51): Yeah. Amen. Amen. All right. Let’s move on to number two. We could probably spend another 30 minutes on that one. Bob (04:55): We could. Matthew (04:55): All right. Number two, having a sufficient emergency fund for your situation. Bob (05:01): I’ve seen this play out so much. When my wife got cancer, gosh, it’s been eight years ago now, I can’t believe, which is, praise God, she’s still here. She’s doing great. And still cancer free. Having that emergency fund, it saved us, Matthew. I mean, we had at that point, six to nine months in money market, CDs, cash, and I’d been listening to Larry Burkett, anybody that’s listening, that’s an old name. That’s who Dave Ramsey learned everything, learned so much from, and he’ll say that he’ll give a lot of that credit to Larry Burkett. But that emergency reserves… Matthew (05:40): It’s important. Bob (05:41): It is. And I mean, when I’ve had to buy a new car or I’ve had to… air conditioning breaks down, that’s expensive nowadays. Having that emergency fund there, or you lose a job, there’s all these different things. Matthew (05:56): So everyone’s situation is different. So it’s really important to tailor one’s emergency fund around their specific needs. Bob (06:04): That’s right. Matthew (06:06): I tend to stratify this into two areas. So number one, protecting against income shocks. Income shocks. Bob (06:15): Which would be losing your job. Matthew (06:16): So these are for the individuals who are working, and if I lose my job and I need… Bob (06:21): Or you get a disability… Matthew (06:21): Or something, correct, and I need to bridge the gap between job A and job B for a period of time, I have something there and available to meet expenses. This is where the whole idea of having three to six or maybe nine months of expenses set aside comes from. For many people though, they’re retired. So this idea of income shocks really isn’t applicable. So then the other thing that an emergency fund should be focused on is protecting against expense shocks. (06:49): And this is for everybody. So I often have people think about it this way, look around your home, think about the things that you own. What’s the most expensive thing that could break that if it broke, you needed to replace it or repair it pretty quickly. A medical emergency is another thing that would fall into that category. And of course, that’s different for everyone’s, dependent upon the coverage that they have, but that’s just a very quick and simple way to think about the income shocks and expense shocks and how much objectively one should have in their emergency fund. Bob (07:27): Just a few days ago, we had a big storm here, and there was a lot of hail. And I can think about how many roofs might’ve been damaged from that. As I was hearing this coming down, I was thinking, oh my goodness. And the deductibles pretty high now because there’s been so much hell damage to roofs around here. Matthew (07:40): Yeah. Goodness. Bob (07:41): Yeah. So boy, you better be ready for that. That’s a big expense. Or like you say, the AC breaking down can be, Hey, I want to share the scripture before we go to number three. Matthew (07:50): Please. Oh yeah, sorry. Bob (07:52): Behind the reserves is look at Proverbs 30:25 and it looks at, “Ants are creatures of little strength, yet they store up their food in the summertime.” The summertime is when they’re harvesting and they store that up. Yeah. Number three. Matthew (08:05): Number three. A reasonable budget where monthly expenses are tracked. Bob (08:09): This is easier than ever today with all the software programs that can link up and even some banks even have within their apps now. You can do budgeting, but yeah, you want to make sure you’re accurate too, right? Matthew (08:24): Oh, absolutely. So you’ve done programs before on budgeting without counting? Bob (08:30): Oh yeah. That’s the approach that Rachael and I use. And the budgeting without counting the numbers is probably one of the easiest ways for most people, because most people are not, they don’t like that extreme details, what I’ve noticed. But by learning to live on the same amount each month, it just becomes a mindset after a while. Matthew (08:52): So setting the budget is one thing. Tracking it is another. So just one thing that’s worked well for Anne and I, my wife, is we have a vast majority of our monthly budget just set on autopilot. It just automatically comes out. We don’t have to think about it, no intervention. But when you go to the grocery store or you do something extra. Bob (09:12): Or you buy eggs nowadays. The eggs went up double the price, but that kind of blows your budget. Matthew (09:20): It can. Especially with five children. Absolutely. So we have a text that we have ongoing, going back and forth – this much for home expenses, this much for extra. Extra would be taking the kids out for a donut or whatever. And every two weeks we get a replenishment and we’re constantly texting each other back and forth as we spend. So we know, hey, when one of them hits zero, we’ve got to wait for it to be refilled. And that’s just an example of something where you can use technology but track it easily. The best budget and the best tracking mechanism is going to be the one that works for you, the individual. Bob (09:58): That’s true. Tthere’s so many different ways. Matthew (10:00): Whatever you going to stick to, that’s going to be the one that’s best. Bob (10:05): I’m the old fashioned guy. I still use Quicken, which was probably the first budgeting software that was made, but I know now there’s mint and just so many other, even the right capital who we use can do that for you. Right. Matthew (10:17): All right. You want to read this scripture as well? Bob (10:20): Yeah, absolutely. “The plans of the diligent lead to profit is surely as haste leads to poverty.” I think this scripture really goes into why budgeting is so important. The word haste and we just do things out of not thinking about it, not using wisdom, that can lead to poverty, because you and I have both seen where people don’t budget and the budget gets out of hand and they’re spending, there’s a problem when you’re spending more than you have coming in, you start to get our government. Matthew (10:51): Right, right. Yeah. Not good. Bob (10:54): Yeah. Matthew (10:55): Alright. Number four, no high interest consumer debt on depreciating assets. Bob (11:00): You notice I said on depreciating assets, I’m not against borrowing money, but it does say in Proverbs 22, “Do not be a man who strikes hands in pledge or puts up security for debts because if you lack the means to pay, your very bed will be snatched out from under you.” Now, that’s a pretty tough scripture. Your bed will be snatched out from underneath you. See, if you are borrowing money on depreciating assets, then it’s worth less many times than what you owe. Or an appreciating asset like real estate and a loan to value of 50% loan to value or 60% loan to value. You’re not getting in an upside down position. I’m hearing right now because of vehicles that cost so much right after covid. Remember, all the shortage of vehicles, the majority of people were upside down in their auto loans. And that’s a depreciating asset. And Rachael and I, we don’t owe anything on our automobiles. Now, I know it’s hard today because automobiles cost so much money. Matthew (12:10): They can. Bob (12:10): But hey, buy a 3-year-old automobile, don’t buy that brand new one. Matthew (12:13): Absolutely. Yeah. Yeah. That two to three year, pre-certified, that’s the sweet spot. Yeah, absolutely. Okay. Number five, a diversified portfolio of non-qualified and qualified accounts and added to monthly if you’re still working, especially if you’re getting a match by the employer and you have a retirement plan in place. So this is all around saving. Bob (12:37): Every orderly household I’ve seen does this. And yeah, so if you’re saving 500 a month, put 250 in a qualified plan, 250 in a non-qualified plan, because you want, you don’t want everything to be in your 401k or your IRA. Matthew (12:50): Correct. Bob (12:50): You want this cash reserves, and that can be in a conservative or a moderate type balanced portfolio that’s building up over time. Matthew (13:02): So for those of you who have an employer plan, taking advantage of whatever they match, first and foremost, is a big deal, right? Because where else on earth can you get “free” money? Bob (13:13): Get 100% return right off the bat? Matthew (13:15): Pretty much, right? Bob (13:16): Yeah. Matthew (13:16): But then from there, it is important to consider the different types of accounts that you can save in because by just like we want to diversify our investment portfolio, we want to diversify the accounts that we are investing in to diversify the tax treatment of the growth of those accounts because it just puts us in a better position to be strategic and optimize withdrawals and retirement. Bob (13:42): You say diversify several times. Ecclesiastes 11:2 says, “Give your portions of seven or eight because you do not know what disaster may come upon the land. And that’s why you want to diversify with that.” Matthew (13:51): Amen. Bob (13:51): Number six, so many people do not have, but an orderly household will, they’ll have a well thought out written estate plan in place, wills and medical power of attorneys, financial power of attorneys for if you’re married and one of you becomes incapacitated. If you’re not married, if you became incapacitated, who’s going to make those decisions for you? So you have to have a trusted person that you can trust to make those decisions for you. And it needs to be in writing and in good documentation. And boy, you see, I’ve met people that don’t have this in place what chaos that causes. Matthew (14:32): Yeah, I would agree. It’s a very foundational and important thing, but agreed, surprised by how many individuals we meet with and they don’t have a will, a trust, they don’t have anything in place. Bob (14:49): Well, we met just with one yesterday, a very prominent businessman, and they’re talking about doing an estate plan when I’m like, I’m glad you’re talking about it, but I was surprised to find out they didn’t have one yet. Matthew (15:01): So while we’re not the individuals to draft up these estate planning documents, that’s what an attorney is for. We definitely can help with a lot of the preparation and upfront dialogue to help our clients determine what their wishes are so that they’re most prepared or best prepared, rather. Bob (15:19): We’ll do a whole other program on estate planning. And I’ve taken my example from my personal estate plan and really taught that to a lot of people. Number seven is having your insurance coverages in place and life insurance, health insurance, disability, auto, home, all that. By the way, these commercials that are out there, they make a joke of it. You should never buy insurance based on price. It should be based on coverage, shouldn’t it? I mean, because when it comes time that you need it, you’re going to want the coverage. Matthew (15:49): Correct. Bob (15:51): But I am amazed at how much it’s pushed to be buying on price. Matthew (15:56): Number eight, a focus on saving for higher education, particularly in plans that are geared towards that for children and grandchildren’s future, their educational future. Bob (16:09): Yeah. We see that over and over in an orderly household. And this doesn’t necessarily mean a college education as we know today. A trade school is a fantastic option for a child today, and we need so many more electricians and plumbers and welders. The trades are, I think, the future of what we need more than anything. Matthew (16:30): I agree. So I think this is really an important one where understanding the passions of the children or grandchildren that you’re saving for and gearing the savings amounts and vehicles towards the education that’s going to be required is really important. We have five children, as you know, and as I mentioned earlier, I’m very confident that at least two of my five children will not go to a college or traditional university, more of a trade school. And that’s just because of what their innate passions and interests are in. And so that’s very different. Bob (17:14): That’s okay. And that’s great. Matthew (17:15): It’s actually, it’s actually… Bob (17:17): But it is drilled into my generation. You’ve got to have that 4 year. Matthew (17:19): Mine as well. Mine as well. I mean that’s why millennials with college debt is pretty prominent. Bob (17:26): And even many are not even using their degree. Matthew (17:28): Unfortunately. Correct. Yeah. Bob (17:30): So let’s get to these last two. These last two are as we end up sound, financial principles in an orderly home are modeled by the parents and they’re taught to the children and grandchildren. Rachael and I want to teach our grandchildren, and we’ve already started that by paying them a quarter here or a nickel here for different things that are done and teaching them math as well. I mean, my 6-year-old grandson was already starting to add and subtract triple digits. Matthew (18:07): Yeah. Bob (18:08): We just sit around and talk about math and he likes it like his grandpa. Matthew (18:13): Yeah. My grandparents, Nick and Ann, my parents, Mike and Cindy, they’re the whole reason why I’m sitting here with you, right. Growing up where sound financial principles was a regular topic in the household is where my interest for finance came from. Bob (18:31): Getting back to that first one we talked about today with the tithe, I am old fashioned, but I still believe it’s good to put that check into the offering plate, which by the way, many churches don’t do the offering anymore and I think they need to bring it back. That’s just me. Alright, last one. So important. Matthew (18:48): Having a financial plan that’s in place that integrates everything that we’ve talked about over the last 18, 19 minutes. Bob (18:55): All these areas that we discussed, for the average person, are not top of mind. They’re confusing, they’re difficult. But that’s why looking at hiring a coach, a fee-based financial advisor, not commission-based, because when they’re commission-based, there could be a major conflict of interest because the only way they’re paid is by selling you something. But a fee-based financial advisor, financial planner can come alongside you and help you integrate all of these areas. Matthew (19:32): Yep. I hear you say often do what you do best, and delegate the rest. And so we practice that here. But this is a great example of, for someone who is not in the financial planning profession themselves, like hiring a professional to think about all of the holistic components of it is very important. Bob (19:53): We hire CPAs to do our taxes. We hire doctors or dentists for healthcare, lawn maintenance companies. I’ve got one now. I just couldn’t get my yard right. We were talking about this last night, doing the fertilization and things like that. So it makes sense to hire a fee-based advisor to help you with your financial health and household, right? Matthew (20:15): Yep. And so Christian Financial Advisors, we do just that, right? So we’re fee based, fiduciary driven using biblical principles and the wisdom that the Lord has provided to build financial plans and help people on their stewardship journey. So to learn more about how we can help you, you can give us a phone call at our office, (830) 609-6986 during regular business hours. Or you can visit us www.christianfinancialadvisors.com to learn more about how we approach this to honor God and schedule an appointment. So thanks so much for watching today. God bless y’all. Have a great day. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 224 – Understanding Investment Risk, Reward, and Time Understanding Investment Risk, Reward, and Time Learn about different investment portfolios based on risk, reward, and time. More episodes >> Investment risk vs reward vs time is a great topic that allows us to better understand how the market works when it comes to timing and longevity. Bob and Matthew divide various investment styles up into 5-6 portfolios, with comparisons between investment portfolios and driving speeds. These include: Cash and cash equivalents Ultra-conservative Conservative Moderate or balanced Growth Aggressive Growth The higher the risk, the higher the possible reward, but it’s also extremely important to keep in mind your time horizon when it comes to choosing an investment portfolio. Emotions can lead investors to make poor decisions, so professional guidance from fee based advisors, like Christian Financial Advisors, is valuable to help maintain a long-term perspective and disciplined approach. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Matthew Barrovecchio Bible Verses In This Episode ECCLESIASTES 11:2 Divide your investments among many places, for you do not know what risks might lie ahead. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Do you know where your investments fall on the risk scale and more importantly, why it matters? From ultra conservative to aggressive growth, understanding the relationship between risk, reward, and time can make the difference between investment success and failure. We’ll break down the essential principles that every investor needs to know. Let’s get some perspective. Matthew (00:29): Hi, welcome to Christian Financial Perspectives. My name is Matthew Barrovecchio, and I’m here with founder of Christian Financial Advisors, Bob Barber. And we’re going to cover a very foundational topic today, Bob. Bob (00:47): We are, but it took me, I think I’ve been working on this one, the subject today for probably a couple months where sometimes Matthew, I’ll work on a topic that we cover, it can come out in 15 minutes, but this one is a very difficult one to talk about, and as you were looking at it before, definitely the “glazed, deer in the headlights” look can happen here. Matthew (01:17): Absolutely. Bob (01:18): But I think it’s important that anyone that’s hearing this, especially if they’re trying to do investing on their own, listens because they don’t understand truly what we’re going to be talking about. Most people don’t, and when they try to go do things on their own, I see that. Matthew (01:38): Yeah. Yeah. It can be, I’ll use the word “dangerous”. Bob (01:42): Yeah, yeah. It can be dangerous. That’s a very good word. Matthew (01:46): Yeah. Wonderful. So the title is “Understanding Investment Risk, Reward and Time”. Bob (01:53): Time, yeah. Hey, that reminds me of, was that Jeopardy? Matthew (01:58): It wasn’t, but it could be. It could be, Bob (02:02): Yeah. Matthew (02:03): Alright, scripture Ecclesiastes 11:2. Bob (02:06): It talks about giving your portions to seven or eight in Solomon’s warning of this, one of the richest men that ever lived in the world, if not the wealthiest, spread out your risk, “Give your portions of seven or eight because you do not know what disaster may come upon the land.” Matthew (02:23): And so what’s the investment principle here? Bob (02:26): It’s diversification. Matthew (02:27): Bingo. Bob (02:27): Like my grandma used to say, don’t put all your eggs in one basket. Matthew (02:33): That’s right. Yep. All right, so let’s take a look at this. I think the topic we’re going to talk about primarily to start is risk. And you frame this as a scale of zero, which is zero being the lowest risk and a hundred being the highest risk. Bob (02:48): And you could think of it like driving from zero miles per hour all the way up to a hundred miles per hour. And you know that the faster, if you get up to a hundred miles an hour, it’s dangerous. Matthew (03:01): Yikes. Bob (03:01): Yeah. Yeah. I mean, if you have a wreck at that point, it could be fatal. Driving 50 or 60, it can be one of the safest ranges. As you know though too, if you drive 15 or 20, somebody’s going to hit you from behind most likely. Matthew (03:17): There’s risk there as well. You could run out of gas. You don’t get there in time. Bob (03:22): That’s a great way to say it. Run out of gas, you could deplete your portfolio. All of this, these risk scales really run from zero to a hundred. And when you are looking at portfolios to diversify in and put your money in, I’m the portfolio manager here, and I put together these portfolios based on modern portfolio theory, and I put together these five portfolios and all of them come under a risk number. I explain this to our clients all the time so they understand where they fall in the risk scale, which is important and they like hearing it, but they also like to say afterwards, I’m sure glad you’re managing this for me. Matthew (04:07): Yes, sir. Yep. Before we get to those five, the first one is this range of zero to 20. This is more of your what we call cash, cash equivalents, real short time horizon. So tell us more about that. Bob (04:20): Money market accounts, you don’t have any volatility there. It’s just very low returns, but also there’s no volatility at all except you’ve got the risk. You’ve got a risk, don’t you? You’ve got a risk of not keeping up with inflation. For as long as I’ve been doing this, I remember a guy saying years ago, years and years ago, he says, “I call that going broke safely,” because of what inflation is deteriorating the purchasing power when all of your money is in that cash. But that’s good for emergencies. You want a good six to nine months of cash reserves. Matthew (05:07): Potentially. Yeah. So having that’s great. So having enough in there to serve the purpose of the goal of the emergencies. But the key there, and I feel like many people tend to fall into this category unintentionally, you have too much, probably have more than they need in there, and that’s where you need to reallocate potentially. Bob (05:31): But on the opposite end of that, the very opposite end of 80 to a hundred on the risk scale is your aggressive growth, and they could have too much there, too. Matthew (05:39): Absolutely. Bob (05:40): If they really don’t understand the risk behind it, the time that’s required there. So we got these five portfolios. I’m going to mention ’em real quick. Matthew (05:50): Let’s do it. Bob (05:51): Ultra conservative, zero in stocks, conservative, moderate or balanced – that’s where most people fit – growth and aggressive growth. That’s the five portfolios that we put together here along with a complete separate other one that we call real estate only. It’s just a real estate portfolio. Okay. Okay. Matthew (06:10): So let’s start with the ultra conservative. Tell us more about that. Bob (06:14): I put this on a risk score out of that 100 of 25 to 35, and the returns of an ultra conservative are just going to be a little bit better than what you would get in that cash. You have a little bit of volatility and you need to expect – look at a one to three year time horizon because the more you go up on the risk, the more time that you’ve got to allow it to do its thing. Matthew (06:40): Sure. Okay. The way that we look at this though is the ultra conservative portfolio, is that 0% equities, 100% bonds. Is that correct? Bob (06:49): Yeah, fixed income bonds, it can have cash in it, too. And it depends on where the interest rate movement is. When interest rates were rising up so much a few years ago, we had a lot of cash, but we had a lot of floating rate in there as it floated up, as the rates went up. But it has zero stocks, none at all. Use this over time. If they’re going to go on that vacation in two years, this is a great place to put that. A little bit more risk than just cash in the bank. But it’s a great place. And all these are 100% liquid. Every one of these portfolios, 100% liquid, because we’re a fee-based advisor. So there’s no sales charges in or out of these. Matthew (07:28): So likely not for someone who is saving for something 20 years from now, but for two years or something like. Right. Bob (07:34): Yeah. Right. Perfect. Matthew (07:35): Okay. Alright. The next one is conservative. Bob (07:38): And this is where we step up a little bit. We’ve got a risk score here. Think of it again like you’re driving Matthew (07:43): Speed limit. Bob (07:43): 36 to about 44 miles an hour. So you’re getting a little bit more risky. You’re getting some more volatility. Matthew (07:50): You’re in the neighborhood. There’s speed bumps, there’s beware of children crossing…but not on the highway. Bob (07:57): And this can have up to a 20% stock exposure in it. But that stock exposure is more in the large mega cap companies, more of your established companies where an aggressive growth will have more smaller companies and more aggressive companies. This is a typical time horizon of three to six years. So you’ve got to give it that time because it’s going to have more volatility. Every one of these we were talking about, you get more and more and more volatility, right? Matthew (08:28): So it’s the risk and reward, the higher the risk, the higher the potential reward and vice versa. Bob (08:34): Yeah. We want to say that potential, potential reward, correct. Because there’s no guarantees. Matthew (08:37): Absolutely. Yeah. Yep. Okay. Now middle of the road. Bob (08:42): Middle road is by far the number one for retirees. Matthew (08:46): Portfolio for retirees generally. Bob (08:48): And I look at what we manage on a bell curve and our moderate, our balanced portfolios are really it’s way up here. That’s the majority of what we manage. And then we taper off on the side, ultra conservative on the side of aggressive, (09:05): But moderate is where a lot of people feel comfortable. In a perfect world, it’s going to be a 50/50. You’re going to have 50% in stocks, 50% in fixed income bonds and cash equivalents. That’s going to be overweighted or underweighted depending on where the economy’s going or where we feel it’s going. And that’s going to be based on hard data. Makes sense? Matthew (09:30): Yep. Makes perfect sense. Bob (09:31): And so like I say, about 45 to 65, I like to drive about 60 to 65 when I get up around 75. And here in Texas, down in south Texas where I drive the speed limits can get 75 and 80 miles an hour. I get where I don’t feel comfortable at that. It just feels too fast. Matthew (09:50): Yeah. Yep. Yeah. And so I’ll pause for a moment because an underlying theme, especially for conservative and moderate, and as we continue with the remaining two is when you look under the hood, we’re not going to go into details on this now, but when you look under the hood, you mentioned mega large cap, there’s going to be medium sized companies, there’s going to be small companies, there’s going to be companies in all different sectors. Bob (10:15): All of these portfolios… Matthew (10:16): Coming back, coming back to Ecclesiastes 11:2, the diversification puzzle, so to say, is not just this macro stocks versus bonds that we’re talking about, but the reality is there’s several sub components to it that really matter. Bob (10:30): Very much matter. And there’s 11 sectors, and I like to see that you’re diversified across all 11 sectors and all of these portfolios when it comes to stocks and the different sectors for bonds, which is short term, midterm, long-term, high quality, low quality, whether we call high yield. So all that plays into this, and this stuff just swims in my head every day, and I’ve been doing it for so long. I understand portfolio theory, as you would say. Matthew (11:01): Perfect. Bob (11:02): So now we get into our last two. Matthew (11:04): So we’ve got our growth and aggressive growth is what we call ’em. Bob (11:08): And time horizon, you better really, in my opinion and what I’ve seen over the years, this is a 10 year time horizon or more. Matthew (11:16): For which one? Bob (11:17): For both of them. For growth and aggressive growth. Aggressive growth could even be longer. 12, 13 years because the volatility is like a rollercoaster ride Matthew (11:25): Can be. Bob (11:26): And the growth portfolio, it’s never 100% invested in stocks. It could be up to 80%. And we try to keep it at that with 20% in fixed income. But then the aggressive growth and the aggressive growth you’re getting all the way in. I mean, you’re 98-100%, and you better have a stomach for it. You better understand that there’s a lot of volatility that’s going to happen there. Matthew (11:49): Yeah. So what did we speak about earlier? We spoke about speed limit going too fast. You go a hundred miles an hour, yikes, y’all might wreck. But then there’s risk on the other side of going too slow. You might run out of time, you might not make it there in time, might run out of gas. So in my experience, what I have seen is if individuals put themselves in a position to where they are taking on more risk than they should be, then ultimately when things don’t go well in the markets, they react… Bob (12:25): They get emotional Matthew (12:26): And they don’t react back to where they should be. They react beyond what they should be. So they try to correct a bad decision by making another bad decision. So this could look like someone who growth or aggressive growth is way too risky for them. And instead of going back to where they should be, they go all the way to ultra conservative, which is not where they should be at. Bob (12:50): They go from one extreme to another. Matthew (12:51): Bingo. Exactly. Bob (12:53): Matthew, tell people how long you’ve been doing this now. Matthew (12:55): Yeah. So, I’ve been in the financial services industry for 20 years and in this role as an advisor for eight years or so, and living through 2008, 2020, and 2022, some not so great years and some great years. And so I’ve seen it. Bob (13:13): You’ve seen this. Matthew (13:13): I’ve seen it all. And I’ve seen some great situations and some not so great situations where individuals have reacted. And a lot of times people need our help to protect them against themselves. Bob (13:28): They do. And emotions have no play in it. Now we’re going to do a program in a couple of weeks. We’re going to talk about how you can use your emotions to actually invest, but that’s actually going against them. So when everybody’s buying, you’re selling. And when everybody’s selling, you’re buying. Matthew (13:41): Oh, interesting. Bob (13:41): That’s what Warren Buffet does. Matthew (13:43): I look forward to that. Bob (13:45): Yeah. So there’s really a conclusion to all this is that it’s hard to do on your own. And I’ve met many that have tried to do it on their own. And when I start talking about all the different portfolios and the risk and reward, they really don’t – you can see the glaze, the glaze gets in the eyes and understanding investment, risk, reward, and time, and understanding the difference also between an investor and a trader. The media is so good about calling an investor. I mean, they call a trader an investor, and it’s not true. Investors think in the long run, and I wanted to just go to some of these people writing this, go, “What are you doing? You’re doing a disservice,” because investors are not going to be concerned about the day to day movement. Matthew (14:39): Correct. Right. They’re not going to allow fear and emotions to drive the decisioning, which is why a foundation to all of this, and a lot of what we do, everything we do is taking things from a biblical worldview, not a view that is of this world, especially American culture. Bob (14:58): And when you get out there and you try to start day trading, you’re in a different league. And those that do it and are successful at it, they have full research teams behind them. And I always like to use the analogy, if I got out there and tried to play – I’m Texan – so if I tried to play with the Houston Texans, I’d get hurt bad. Matthew (15:17): Sure, me too. Bob (15:20): I’m not going to get out there with those big football players. And when somebody tries to do day trading, they try to get out there with the true pros and they have the technology. They may be successful at it for a time, but I never have met any personally that have been successful at it over a long period of time. Matthew (15:40): If you’re going to take on a side hustle, that’s not the one, right? Bob (15:43): Yeah. That’s correct. Matthew (15:45): So it’s great. Hey, a good investor never allows emotions day-to-day news to drive their decisioning. And we can help, Christian Financial Advisors can guide you through the maze that is the risk reward, trade off, and help you create a well thought out portfolio. So give us a call by reaching our office. So you can text us at 830-609-6986. Or you can go to our website, www.christianfa.com, and click a button to schedule an appointment. Bob (16:17): Thanks. You did great with helping bring this complicated subject. Matthew (16:21): Well, teamwork. Bob (16:22): Teamwork. There you go. Matthew (16:23): You, me, and the Lord. (16:25): Praise God. All right. God bless y’all. Have a great day. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 223 – 3 Ways to Uncover ‘Free’ Money 3 Ways to Uncover ‘Free’ Money Discover 3 ways to enhance your investments for various life stages. More episodes >> Free money? Sounds too good to be true! However, Bob and Matthew discuss several ways that you can earn free money without compromising your values. This isn’t a “get rich quick” scheme, but rather using your investments in wise ways in order to build wealth over time while remaining content and glorifying God. Some of these strategies are best for retirees, while others are better suited for younger investors. Sit back and listen as we discuss 3 ways to uncover “free” money. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Matthew Barrovecchio Bible Verses In This Episode 1 TIMOTHY 6:6-8 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. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Would you like to discover three smart ways to get free money without compromising your values. From employer matching contributions to tax efficient giving strategies, we’ll show you how to maximize opportunities that could put extra money in your pocket while staying true to biblical principles of stewardship. Let’s get some perspective. Bob (00:26): Hello, this is Bob Barber. Welcome to today’s program for Christian Financial Perspectives. It’s all about getting free money. How about that one? I bet you don’t hear that very often. How to get free money. But you can blame this on Matthew. He’s the one that wrote this. Okay. He wrote that one last week and Matthew’s taking some of the pressure off of me. I normally write all of the programs and Matthew, I appreciate that. Matthew and I were joking because I always want to introduce Matthew and then I don’t want to say his last name. So if I say it and I get it twisted wrong every time, it’s Barro- Vecchio, Matthew (01:05): Barrovecchio. There we are. Bob (01:06): And why can I not get this right after a whole year saying this? Matthew (01:08): I have no idea. Yeah, you’ve been practicing too. Getting closer. Bob (01:12): I was asking Matthew. I said, so Matthew, when you were in school, did your teachers ever get it right? And you said, yeah, they finally got it right, but it wasn’t the first week. Matthew (01:20): It took a few years Bob (01:23): And then he was telling me about a girl that had a name. We can’t mention her name here for privacy reasons, but it was very close. So if this long drawn out, Matthew is from Pennsylvania. I’m from south Texas, so if you’re getting mixed up, you hear my twang and we’ve got the two sides coming here. Matthew, so you wrote about three ways to get free money. Now, who would not want to hear about getting free money? Matthew (01:50): That’s great. There’s not, there’s few places in the world where this can be found. Bob (01:57): So you picked a scripture to go with this free money, right? What is that? Matthew (02:01): 1 Timothy 6:6-8, “But godliness with contentment is great gain, for we brought nothing into this world and we can take nothing out of it, but if we have food and clothing, we will be content with that.” So you may say, wow, that doesn’t really go with free money. Bob (02:17): Yeah, I’m wondering how this goes with this. Matthew (02:19): Yeah. So as we go through all of these, what you’re going to see is that they’re all tiny things that you can be doing. This is not going to be, again, a get rich quick scheme or anything like that. It’s going to be things that you can do to further build blocks towards your wealth. And so it’s going to be something that hopefully will breed satisfaction and breed more to glorify the Lord and contentment as well. Bob (02:53): And I’ve noticed with these three strategies, one really fits the saver. One’s going to fit the retiree, and one’s going to be right in the middle. Matthew (03:01): That’s correct. Bob (03:02): I had a hard time with that middle one, but we’ll talk about it. Matthew (03:04): I did a little bit as well. Bob (03:06): We’ll talk about it. Okay, so what is the first way to free money? And when I see this, I’m like… Matthew (03:12): Of course! Bob (03:12): Duh. Right? Because people miss this one. They miss it constantly. Matthew (03:16): It’s an employer plan match. So if you have a 401k, a 403b or another savings plan, making sure that you are, as long as your monthly budget allows you to, contributing at least up to the match that your employer provides, you’re essentially getting free money. One way to look at this is that when you make a contribution, if they’re making a dollar for dollar contribution, it can be seen. It’s not technically, but it can be seen as almost a hundred percent return right away on your contribution. Bob (03:46): You are. Matthew (03:46): Because you’re getting that. Bob (03:47): I believe that. I mean, if you’re in say, an income of 100,000, let’s take an even number and you’re getting a 4% match. You put in 4,000, they’re putting in 4,000. So you don’t have to make anything and you’ve made 100% return. Or like you say, it’s like giving you free money. Matthew (04:03): Absolutely. And so over the course of time, when you look at the paycheck by paycheck, you say, oh, is it really that much? Maybe it’s not even $100 depending upon, but over the course of time, taking full advantage of the employer match and maximizing that, again, goes back to one of the programs from a few weeks ago around the compounding interest impact. This is one way in which you can further facilitate that, especially for those who are younger, earlier in their career. Because the sooner you get these monies in the account working for you over the long term, it can be very impactful. Bob (04:42): Most people have a 401k or a TSP plan or a 403b. There’s also simple IRAs and the 3% match seems to be the most common. But I’ve met some clients, they have a 6% or 7% match. Matthew (04:57): I spoke to someone recently, 8%. Bob (04:59): 8%. Matthew (05:00): And I said, are you sure? And they said, yeah. Like, goodness. Bob (05:02): Wow, I hope you’re putting in 8%. Matthew (05:04): Yeah, praise God for that. Bob (05:05): Yeah. Yeah. So what’s the second one, which is one I had a hard time with that Matthew (05:11): I did as well. Bob (05:11): Shawn does the program with me too, and we’ve talked about this and I have a hard time with this, but here it goes. Matthew (05:18): Ready? Bob (05:19): Okay. Matthew (05:19): Credit card rewards. So disclosure here, if you or your spouse have had any history of issues with debt or credit card debt that took you a while to pay off, this may not be for you, right? This is something that takes obedience and a very disciplined approach. Discipline, Bob (05:44): Extremely discipline. Yes, it is possible. I mean, I know we’ve gone on a lot of free vacations and even gotten goods for free because we’ve never carried a credit card debt. We pay it off every single month. Every month. Matthew (06:01): So here’s the strategy, the idea here, assuming that you have the discipline and this isn’t going to cause issues, the strategy is finding those things that are reoccurring month over month that are automatic – streaming services, utility bills, water bill, things that are going to be around the same amount and you don’t actually do anything. They just automatically come out of your bank account, your checking account, probably. The strategy is putting those kinds of things on a credit card with rewards that are going to be in line with something that you could enjoy or use in your budget. For some people it might be free groceries. For other people, it might be just a percentage back. Others it might be travel rewards or something of the like. And so the idea is get it set up to where on a monthly basis it’s going through the credit card, you’re getting those rewards. Again, not going to happen quickly, but over time you will build those rewards and the credit card, you go ahead and you put it away somewhere safe, out of sight, out of mind. Bob (07:08): That’s what I like. Matthew (07:09): You don’t want to use this, you don’t want to use this for anything where you’re going to have that credit card in hand. The idea is to set it and forget it and have the payment be automatic. So you don’t even have to go in and make the payment every month. It just automatically happens. And once you set it up. again, you can set it and forget it, but you’re racking up those rewards little by little over the course of time. Bob (07:31): And put a limit on that credit card, right? Matthew (07:34): Yes. Right. Elaborate on that. Bob (07:35): Yeah, depending on what those average bills that you’re talking about, your utilities, and by the way, I just found out we were talking about this, that utility company that we use for our home in Rockport, Texas on the coast, you can even out your bill and basically I could never use the amount of electricity they’re going to offer, they’re offering me, but the bill stays the same every month. So if you’re in an area that has competition for utilities, you can do that. But let’s say all that total’s up to be $1400 a month for all of those recurring bills that you have. Set your limit at about $1600 that way you cannot go over it. Matthew (08:20): So you want to give yourself a little bit of buffer because things may… Bob (08:24): Bills go up and down. Matthew (08:25): It could, but yeah, calling the credit card company and setting a limit down from what they probably had it at by default, it just further protects you. Bob (08:36): You knew this was a hard one going by me, was putting that in the desk drawer or even just cutting it up. Matthew (08:41): You could. Absolutely. You could cut it up, shred it, and be done with it. Absolutely. I dunno if I’d recommend that. I think putting it somewhere safe, because who knows, you might need the number, but… Bob (08:51): I know we have used rewards for many things over the years. Matthew (08:56): Well, and that’s it. You mentioned vacation. Again, this isn’t paying for cruises around the world or anything like that, but we have probably annually paid for a long weekend where we get lodging and most of the food for free for our family of seven, and it’s a nice treat. Bob (09:14): So these first two that you’ve mentioned are available just about to anyone? Matthew (09:20): Correct. Bob (09:21): And this third one that you’re going to mention is available to retirees, more for retirees. Matthew (09:27): That’s right. Bob (09:27): But if you’re not a retiree and you’re listening to this, maybe you have a friend that needs to listen to this, kind of what we call free money, right? Matthew (09:35): Yeah. So if you’re at least 70.5 years old and you have a pre-tax IRA, then facilitating your tithes and offerings and giving through the qualified charitable distribution provision or QCD, is the strategy here. So many people use their income from Social Security or their bank account, or maybe they’re working still to facilitate their offerings and their giving to their church or local organizations, et cetera. For those who are over 70.5, you can take a distribution from a pre-tax IRA, and as long as the check is made payable not to you, but to a qualified 501c3 organization, (10:27): It comes out tax free. So I’ve worked with many individuals to simply redistribute in their budget that they’re giving. So, running their giving through the qualified charitable distribution, especially those who are 73 or older now and have require minimum distributions. This is a great way to satisfy the IRS requirement while also giving to an organization or a church that you would give to otherwise. And so where’s the “Free money.” It’s in the tax savings. By doing the, giving through the QCD provision, you now have given that tax free and the money that you would’ve used otherwise to do that giving now is available for something else, particularly the tax savings, either to go back into your budget or to even give more, maximize generosity to the kingdom work. So it’s a very simple idea that many people don’t think of, but it can be very powerful, especially when, again, for many of us to most of us, the goal here is to maximize generosity for his glory. Bob (11:33): We’ve been using this strategy in a huge way with our clientele here at Christian Financial Advisors for years. Now, one of the things, the way that I talk about this is… so they’re going to give cash money. They’re used to giving cash money to their charities of their choice. They give it out of the IRA, but then I’ve talked about them taking that cash that they were giving because they’re still giving. They’re just repositioning and saving that and putting that back into account and saving that over time. Matthew (12:08): Absolutely. Bob (12:08): It’s a wash, but you’re better off because you’re saving so much on your tax. So basically you don’t take money out of an IRA and then go give it to a charity if you’re above 70.5. You need to take it directly from the IRA to the charity. Matthew (12:23): So logistically, just an important point on the logistics of this, don’t try to do this on your own. This is where if you work with us, you want to call us, or if you have a financial institution you work with, you want to call them. Because a key piece for the IRS regulation is making sure that the check is payable not to the individual, but to the organization. Which usually, you need to call someone at the financial institution where your IRA is at in order to make sure that gets right. Bob (12:50): We have clients, it’s like a little shopping list nearly, and they give us this and they say, we want this much to go to this charity, this much to go to this. Matthew (12:57): Praise God. Bob (12:57): Yeah, no, it’s great. And we help them do that. Matthew (13:00): Yeah. Amen. It’s wonderful. So yeah, those are three ways in which you can experience free money and hopefully there’s one for everybody. Bob (13:09): If you need any help with this, of course, we’re always available by calling us at 830-609-6986 during business hours. Again, 830-609-6986. You can text that number as well. Or you can go to our website and hit the contact tab and our website is www.ChristianFinancialAdvisors.com. Thanks for listening. God bless y’all. Bye. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 222 – Tax Efficient Asset Location Tax Efficient Asset Location Navigate the various nuances of asset allocation and how it works. More episodes >> This episode covers the in depth topic of tax-efficient asset location, which involves strategically placing different types of assets (such as stocks and bonds) in various account types (such as taxable accounts, Roth IRAs, and traditional IRAs) to minimize the overall tax burden on investment returns over time. Bob and Matthew break this down into various key points of asset allocation, asset location, how exactly it works, is asset allocation for everyone, and what is the advantage? Asset allocation is not a “one size fits all” strategy, and it can require analysis and understanding from a certified financial advisor. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode PROVERBS 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you placing your investments in the right types of accounts to minimize taxes? Smart asset location could help you keep more of your investment returns over time. We’ll explore how strategically positioning your stocks and bonds across different account types can lead to better tax efficiency in your portfolio. Let’s get some perspective. Bob (00:27): Welcome to Christian Financial Perspectives. This is Bob Barber, the host of this program today, and we have a very unique program that we’re going to bring to you that Matthew has put together most generously. And we had some really good discussion about this before. It was kind of a little bit of hot discussion going back and forth. It wasn’t hot, but I mean it was like, what about this and what about that? But today we’re going to be talking about tax efficient asset location and Matthew put this together. So I’m going to put Matthew on the spot today. Matthew (01:00): Yep. That’s great. Bob (01:01): This is a unique idea I’ve heard about, but you want to bring it to our audience. Matthew (01:07): Yep, yep. I think it definitely can add value to clients’ portfolios long term. Bob (01:13): Yeah. Matthew (01:14): So let’s get into the verse. Proverbs 13:11, “Dishonest money dwindles away, but whomever gathers money little by little makes it grow.” I feel like this really, especially the second part of that exemplifies this. This is not a get rich quick scheme or anything like that. This is one of the building blocks for building long-term financial wealth and of course we’re going to look at it from a biblical perspective. Bob (01:43): So you mentioned asset location. What do you mean by asset location? Matthew (01:48): Yeah, so asset location is essentially the strategic placement of putting certain types of assets in certain types of accounts. Okay. Bob (01:57): So what do you mean by certain types of assets? Matthew (02:00): Yep. So stocks versus bonds and then the different account types that one may have a Roth IRA being one, a pre-tax IRA being a second, and then any non IRA account being a third. That can be a joint account, an individual account, a trust account, et cetera. And all three of those different types of accounts are taxed differently. And the two different types of assets, stocks and bonds are known for two different things. Generally, one friend come one for price per share increase, which we’ll talk about. This asset location strategy is really about concentrating the assets in proper places, locations, to take advantage of and optimize the tax efficiency of the portfolio, which over the course of time can be very beneficial. Bob (02:52): So somebody that would be in a high tax bracket would definitely be interested in this. Matthew (02:58): Absolutely. The impact can be for anyone who has, and we’re going to talk about this, who is this for? But for anyone who has different types of accounts, there’s going to be some benefit. But yes, absolutely. Individuals who have larger balances, the impact will be larger. Absolutely. Bob (03:17): Is it still a strategy for somebody in a lower tax bracket? Matthew (03:20): It absolutely can be, yes. Again, the marginal impact, incremental impact may not be as significant, but it’s a step in the right direction and a positive nonetheless. So why wouldn’t you do it? Bob (03:35): Absolutely. I agree with you because I just had a brainwave about something. Sometimes the capital gain tax can be zero depending on what your income is. It can be, right? Matthew (03:43): Yeah. Bob (03:44): So it looks at that income to determine whether you have to pay 0%, 15%, 20%, and of course if you’re in a real high tax bracket, you could be paying 23.8% in long-term gains. But still that’s better than an income tax bracket, which can be at 35% – and if you’re in a state with state income tax could be you could be at 40%. Matthew (04:09): You could be. Bob (04:11): Some places like California, you might be at 45%. Matthew (04:14): Yeah, yeah. Bob (04:15): Alright. Matthew (04:15): So just one point before we move on to who is asset location really for, I want to talk about asset allocation, right? Individuals from the beginning might be thinking, wait, don’t you mean asset allocation not location. Now they’re two different things. So while asset location is important, asset allocation continues to be the most important thing in one’s portfolio. So the location strategy or concepts that we’re going to talk about takes a backseat to making sure that your overall stock to bond ratio in your portfolio is being met because that is the strongest determinant of risk over the long term. And so we want to make sure that we’re… Bob (04:56): And how much risk can you take, right? Matthew (04:58): Exactly right. Bob (04:59): Yeah. So you say is this for everyone? It can be really. Matthew (05:07): It can be. So let’s go through some primary examples though. The first is you have to have multiple account types. If you only have a rollover IRA, then you only have one account and there’s no asset location opportunity. But for someone who has a Roth IRA, a taxable account like an individual or a joint account, a pre-tax IRA, now you have different types of accounts that are taxed differently and you can take advantage of those differences in the taxation law. Bob (05:41): Well the reason you and I had such a good discussion before this was because I fit that scenario and especially because we sold some family land for a sizable amount, I have a sizable amount that is not in an IRA, it’s outside of an IRA and I’m scared to death the time to ever sell anything because I’m in such a high tax bracket for that. So this tax efficiency is extremely important for me. Yeah. Matthew (06:05): We already touched on the second thing here, which is having a large enough account balance to make it meaningful. So certainly there can be an advantage for anyone who has different types of accounts, but for an individual who says has $100,000 in a joint account and then has a Roth IRA with $2,000, there’s an asset location opportunity, but it’s not going to be significant compared to someone who has a more even distribution amongst different types of accounts. Bob (06:37): Meaning that like $300,000 in non IRA accounts like a joint account and $300,000 inside of an IRA account. Matthew (06:47): Correct. Exactly. Bob (06:47): That’s a real scenario that would work here. Matthew (06:51): That is a recipe for allowing this to be more prevalent and have a larger impact. Bob (06:56): What are some other things that you point out here? Matthew (06:59): So I’d say the other big thing is the psychological impact. So for some individuals, this may not work for them simply because they are uncomfortable with having certain accounts in their portfolio more aggressively invested than others, right? So there needs to be an understanding that asset allocation of the overall portfolio is top priority, but underneath that you can have different accounts invested more aggressively or more conservatively and the individuals psychologically need to be okay with, hey, this account is performing differently than that account because they’re invested differently. Bob (07:39): I want to point something out there then. Okay. Because I’ve been through so many cycles with how long I’ve been in this business. You’ve heard me probably mention the bucket strategy. And the bucket strategy is where you have your different buckets of money and where one bucket is for your aggressive account and that’s going to be the most volatile, have the most up and downs like a rollercoaster ride, in another bucket, more conservative. And I’ve actually helped some people by taking a moderate portfolio, a balanced portfolio, and dividing it up and saying the aggressive portfolio is a long term, let that ride. And then you have your other money over here that is in the least aggressive and it’s helped them with the psychology of the markets. Does that make sense? Matthew (08:29): Absolutely. Yeah, that’s great. That’s great. So yeah, the individual needs to be comfortable with that. If this is going to be something that keeps someone up at night, don’t do it. It’s not worth it. It’s not worth the stress. Bob (08:42): Like I was saying, I’ve actually, it’s helped with people not keeping up at night by doing this kind of strategy. Matthew (08:47): It’s great. Alright, so how does it work. Now let’s get to the details finally. How does it work? Bob (08:52): Okay. Matthew (08:53): All right. So first, bonds, what are bonds known for primarily? Bob (08:57): Their interest. They produce interest. Matthew (08:59): Interest income. Exactly. So where can you put bonds? You can put them in an individual account or let’s say an IRA, Roth or Pre-tax. If you put bonds who are known for interest in an individual account, you are going to pay taxes at ordinary income rates every year in which those interest payments are distributed. If you instead have your bonds insulated in an IRA pre-tax, ultimately you’re going to pay those same ordinary income taxes on the interest, but not until you withdraw. So on the bond side of the equation you are paying the same tax, but by putting your bonds in the pre-tax IRA, you actually have more control on when you realize the tax. It’s not until you withdraw. So that’s one side of the equation. Let’s talk about stocks now. What are stocks known for? Bob (09:55): Well, they’re known for equities. They’re known for their capital gains. I mean you want capital gains as much as you don’t like to pay the taxes on ’em, you want capital gains. Matthew (10:05): So price per share increase, capital appreciation, right? So if we put stocks in a pre-tax IRA and you have it grow when you pull it out, you’re going to pay tax at ordinary income rates, which is what you pay when you would do a withdraw from a pre-tax IRA. If you instead concentrate your stocks in the individual account or what we call it… Bob (10:31): Or joint account, yeah. Okay. Matthew (10:32): You are going to pay, as long as you hold onto it for over a year, you’re going to pay long-term capital gains on that same capital appreciation, that same price per share. Bob (10:43): Which are much lower than the income tax rate. Matthew (10:45): Every taxable income level is lower than the ordinary, right? So you put bonds in your pre-tax IRA gives you more control, okay? You put stocks in your non-qualified individual accounts, take advantage of lower tax rates through the long-term capital gains. And it’s, it’s a great strategy. Bob (11:04): Why isn’t every accountant talking to their clients about, especially if they’re in a high tax bracket scenario. But if you’re in a low tax bracket scenario, like I said earlier, and my lights kind of went on after we’ve talked about this today before we made the program, is that, wait a second, really you can be at a point where you don’t have to pay any capital gain tax depending on if your income’s low enough, your long-term capital gain tax can be as low as 0, 15%. So it can actually be very, very low. So I can see where this scenario could work for maybe somebody that they have $100,000 in a non-qualified account. Matthew (11:46): And there are certainly situations where this strategy may not be exactly the best strategy for certain individuals, but as a general rule, this is the approach people would strongly consider taking. Bob (11:59): Now you remember one of the arguments I was talking to you about? Well this means though that do you have to, if you buy that set of stocks and that unqualified account, I feel like I’m nearly forced. I got to hold it at least a year so I have that lower tax bracket. But in a situation where the economy is starting to go south and it’s going to go farther south, it is still better to do the right thing asset allocation wise and take those gains. I’ve heard some people say I don’t want to sell any because I have to pay taxes on the gains. Well, there’s a saying, I always come back at ’em. We can wait for all the gains to go away and you won’t have to pay any taxes. Right? Matthew (12:41): Right. Exactly. That’s exactly it. So going back to something I said earlier in the conversation, right? Asset allocation is still a primary consideration here. Bob (12:50): So this has to be looked at each person individually to see where they fit with this. This is an individual tax strategy. Matthew (13:00): Correct. Bob (13:01): But I think a lot more people could do it than we both maybe realize. The more that we talk about it and I could see where we’re going to look at my portfolio more like this and do this with it. Matthew (13:16): So let’s look at a simple example just to illustrate it. So let’s say we have an individual with $200,000 in their overall portfolio and they’re targeting hypothetically 60% stocks, 40% bonds. Let’s say that they just happen to have a joint account with their spouse of $120,000 and a pre-tax IRA worth $80,000. Well I did this intentionally. The math works out perfectly. (13:41): You can put the $120,000 joint account in equities and stocks. The 80% IRA pretax IRA, in bonds, you maximize the asset location while also simultaneously for the overall portfolio meeting the asset allocation to make sure that your risk level of the overall portfolio is what it should be. So that’s a very simple example. Individuals may say, well what if it’s not so straightforward? What’s the process? I’d say the process you would want to follow is going to be putting your stocks as much as you can in the non-qualified accounts, putting your bonds as much as you can in your pre-tax IRAs. And if one fills up before the other, then the pour over goes into the other account with the Roth IRA being in the middle, right? So if you fill up a joint account per se, a non-qualified account, and you still have more stocks to meet your asset allocation strategy, then you put stocks in your Roth, putting the bonds in the pre-tax IRA, and then the overflow into the Roth as well. So that’s just an overall process and you can kind of think of it as if you have three cups and you’re pouring equities into the non-qualified cup and bonds into the pre-tax IRA cup. Once one of them gets filled up, it kind of goes into the Roth IRA cup. Bob (15:10): You know why I’m grinning, I just think about this as my wife was listening to this. She lost you by the way about three minutes ago. But the bottom line is you could help, can help anyone to figure this out. Matthew (15:22): Absolutely. Bob (15:22): Because it’s on an individual basis and do this through software programs, and we can show the actual tax savings that could be there. All right. Matthew (15:31): Sounds good. Bob (15:32): Okay, well I think that’s going to finish up for today. This is a very interesting subject that I think all of you need to look into. And if you’d like to give us a call at (830) 609-6986 during business hours that you’d like to talk about this or you can also text that number and just say, I’d like to talk about this strategy, or you can go visit us on our website and there’s also, there’s a contact tab on our website which you could actually set an appointment and by going to www.ChristianFinancialAdvisors.com. I think that’s going to do it for today. Matthew (16:05): That’s great. God bless y’all. Bob (16:06): Thanks. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 221 – The Power of Compounding Interest The Power of Compounding Interest Your Impatience May Be Costing You Hundreds of Thousands of Dollars More episodes >> Learn about one of the most powerful mathematical formulas that has been around for hundreds of years when it comes to investing – The Rule of 72. Bob and Matthew break down compounding interest and how it works through the unique mathematical formula of the Rule of 72. The Rule of 72 truly shows the power of compound interest and how it can dramatically impact long-term wealth building. Investing must have a long-term perspective by avoiding distractions. By just being patient and not removing money periodically from your investments, the Rule of 72 demonstrates how money can double in value over time at a given rate of return. How else can you enhance your investment portfolio? By starting young and investing early, as discipline is crucial. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barrovecchio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode 2 CORINTHIANS 9:6 Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. PROVERBS 14:24 The wealth of the wise is their crown, but the folly of fools yields folly. ECCLESIASTES 9:11 I have seen something else under the sun: The race is not to the swift or the battle to the strong, nor does food come to the wise or wealth to the brilliant or favor to the learned; but time and chance happen to them all. PROVERBS 3:9 Honor the Lord with your wealth, with the first fruits of all your crops; Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Matthew (00:00): Did you know that Einstein called compound interest the most powerful force in the universe? Whether you’re 25 or 55, understanding the simple math behind this wealth building could dramatically change your financial future. We’ll explore how time and consistency can transform modest savings into significant wealth, and why waiting or withdrawing can cost you way more than you think. Let’s get some perspective. Welcome to Christian Financial Perspectives. I am Matthew Barrovecchio, joined by Bob Barber, and today we’re going to talk about the power of compounding interest. Bob (00:45): A pretty exciting subject for me. As you know, I’m kind of a math nerd, and when I heard this as a kid, it started absorbing into my mind. But I’m really seeing the power of compounding now at my age of 62. So today is a great program for young and old alike, and I really want everyone to get in touch with this because compounding is extremely powerful and I’ve got some great scriptures to go with it. And then we’re going to quote some geniuses from the past too about what they said about compounding. Matthew (01:23): That’s great. There’s power in the name of Jesus, and there is power in compounding interest. So let’s take a look at what the word says here. So 2 Corinthians 9:6 says, “Remember this, whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” Bob (01:42): What do you think of that scripture? Matthew (01:43): I mean, that’s a promise straight from the Lord, and it’s encouraging. It doesn’t necessarily mean that if we sow monetarily, we will reap monetarily. It doesn’t mean that if we sow in this lifetime, we will reap in this lifetime, but we have an eternal perspective. Bob (02:00): But there is a scriptural principle behind sowing and reaping. Matthew (02:04): Absolutely. Bob (02:04): It’s very clear in this scripture. Matthew (02:06): Proverbs 14:24 says, “The wealth of the wise is their crown, but folly of fools yields folly.” It’s a tongue twister. Bob (02:19): Okay. So as you look at this and you think about this, this will make a lot more sense as we get into the compounding and how the wealth of the wise is their crown. The wise, there’s wisdom in compounding. This’ll make sense. You just got to stick with me on this, all right. Matthew (02:35): Let’s do it. Ecclesiastes, a lot of wisdom in this book, 9:11, “I have seen something else under the sun. The race is not to the swift or the battle to the strong, nor does the food come to the wise or the wealth to the brilliance or favor to the learned, but time and chance happen to them all.” Bob (02:56): A key word, okay, time. In Ecclesiastes, it talks about there’s a time for everything. It’s not always about now, it’s about the future. And then Proverbs 3:9, “Honor the Lord with your wealth, with the first fruit of all your crops.” So as we’re talking about compounding, we’re talking about honoring God with that as well. Now, I’m going to make a switch, and we’re going to look at some worldly men, and one of them is Albert Einstein. Ever heard of Albert Einstein? Matthew (03:31): His hair is different than mine. Bob (03:34): His hair is very different… Matthew (03:35): Very different than mine. We did not go to the same barber, no pun intended, Bob Barber. Bob (03:41): That is true. It’s interesting that he’s a brilliant man. Many people knew him as a brilliant man. He said one of the most powerful forces in the universe is compound interest. And he referred to it as one of the greatest miracles known to man. Matthew (03:57): Miracles around us. That’s great. Bob (03:58): And then Benjamin Franklin, what a hoot he was. And he was fascinated by it. And he built this legacy. He left just $4,000, which was a lot back then. He left it in a trust for Boston and Philadelphia. Later, that turned from 4,000 to six and a half million dollars. That’s compounding. Matthew (04:20): Didn’t you tell me the other day that he was intentional within the trust to make sure that it couldn’t be touched for like a hundred years or something? Bob (04:27): Yes, exactly. Yep. He sure was. And then who’s the modern day, the modern day financial guru that we were thinking in the worldly sense? Matthew (04:35): Shawn Peters? No, not him. Bob (04:38): Warren Buffett. Yeah, Warren Buffett, yeah. And one of the three things he said that wealth has been a combination for him of living in America, some lucky guesses and genes in compound interest. So we’ve got scriptures that show sowing and reaping and wisdom. And then we’ve got some very smart worldly men as well that says compound interest is amazing. And it is, and it really comes down into the rule of 72. Matthew (05:06): What is that? Yeah, tell me. Bob (05:09): Tell you, huh? You know what the rule of 72 is? Matthew (05:11): I do. Bob (05:12): But okay. So the rule of 72 is a mathematical rule that when I learned it in school, I thought, man, this is really cool. People think, man, you are a math nerd. But the answer is, if you take a certain rate of return and you plug it into the number 72, and then that will tell you how long it takes for a dollar to double to $2 or 100,000 to double to 200,000 or a million to double to a 2 million. What’s interesting in all of these scenarios is a dollar to double to $2, it takes the same amount of time at a stated rate of return as it takes for a million to double to 2 million. That’s the power of what I see in the rule of 72’s. And you got to understand the rule of 72’s to understand compounding and how that works. So always in my head, I can go 2, 4, 8, 16, 32, 64, 128, 256, I double this because that’s the way my mind thinks about math. But let’s just assume a reasonable kind of, maybe a moderate to growth portfolio, 7% return. Matthew (06:34): Over a long period of time. Bob (06:35): Right? Yep. So 7 goes into 72 about 10 times, right? Matthew (06:39): A little less, but yeah. Bob (06:40): So yeah, it’s actually… Matthew (06:43): A little more rather. Bob (06:44): It’s what? Matthew (06:45): A little more than 10? A little more than 10. Bob (06:47): Yeah. But it’s like 10.2. Okay. We can get technical here, of course, but at 10 years it’s saying if you have a stated amount of money and you don’t touch it, you don’t withdraw. Just leave it there. It’s going to double. Matthew (07:01): Yeah. So the don’t touch it piece and the time aspect is really important because what could happen, and we’ve seen this in investment principles across in our careers and in our experience of stewarding people, but let’s take the concept and apply it to this is, okay, compounding interest is going to work over the course of say, a 40 year career, but a couple years into it, if it’s not working out exactly how one thought it would, they abandoned the strategy, they abandoned the principle. And that’s exactly the opposite of what we want to do. You want to stay steadfast, trust the math, trust the process, and focus on the long-term is a good recipe for success in this. Bob (07:47): So I think you have a real good example of this that you’re going to go into in a minute. But yeah, it is so hard to think about compounding. Cause the time and when you’re in your younger years, you can get so easily sidetracked of all the things that are hitting you right now. So it takes a lot of discipline. But discipline is how wealth is obtained by discipline and doing the same thing and being very consistent in your life and following those biblical principles. Matthew (08:14): There can be a lot of distractions, including financial FOMO, which we’ve talked about a podcast before. And so we want to stay steadfast. All right, so let’s take a look at an example. If we assume 7%, which for a moderate portfolio, stocks, bonds, mixture over the course of a 40 year career, it’s reasonable roughly, Investor A invests 3000 every single year for the first 10 years of their career. And then starting in year 11, invests no more, right? So the 30 years after, they don’t invest anything. Bob (08:52): So they put $30,000. Matthew (08:53): 30,000 in. Bob (08:54): 3000 a year. Matthew (08:55): Three grand in for 10 years, and then just allow that to continue compounding interest. Bob (09:00): Not putting another penny in? Matthew (09:01): Nothing else. Okay. Alright. Investor B does the exact opposite. They don’t do anything for the first 10 years starting in year 11. For year 11 through year 40, they do the same $3,000 each year. Who do you think has more money at the end? Bob (09:17): Well, I think investor B would, wouldn’t he? Because he’s been investing for 30 years versus 10 for the first one. Matthew (09:26): Yep. So many people would think that, but that’s obviously based on… Bob (09:30): I knew that’s not the case. Matthew (09:33): So at the end of the 30 year career, you have investor A who has about 30,000 – 35,000 more dollars in this example than Investor B. Again, while they only invested 30,000 of their assets versus investor B who invested a total of 90,000. Bob (09:52): Oh, okay. So the Investor B had to invest three times the amount to get to the same. Oh, actually he had less. Matthew (10:00): He had about 30,000 – 35,000 less. So again, investing early and investing often and staying disciplined to the plan is really this key to success with compounding interest. And so for our younger investors, hey, every little bit counts. So it can be very powerful over the course of your lifetime. Bob (10:23): But there are two things that can really hurt the compounding effect. Matthew (10:28): Kind of just spoke about the first one. What are they? Bob (10:30): Well, number one is, yeah, you did speak of it. The cost of waiting, because the younger you are, the more time is on your side and waiting is tremendously costly. I want to explain something real quick too here that you didn’t share an example, but I’m going to give an example is that at my age, 62, we meet a lot of investors. I mean, they’ve been investing in a 401k, they’ve been getting a match, and they retire and they have a million dollars and they’ve been consistent, 30 years they’ve been investing. It’s possible, very possible today, and it happens all the time. So they have a million dollars. So you realize if they don’t touch that million for six or seven, eight years, it’s going to double or 10 million. And we can’t say for sure. But we say it can. Right? And it has in the past. So when I look at this and think about the cost of waiting, I look at the cost of waiting as taking a million and it going to 2 million, and that person that’s waiting to save $200 or $300 a month, (11:45): That’s what they’re waiting. You can get that just from not buying an expensive coffee every day. Or you can get half of that and then your employer’s going to match the other half with the 401k match. That’s costing them $7,777 a month. And all I’ve done is taken a million and divided it by 10 years, divided it by the month, bought it all the way down 7,000. So for every month you wait to save $200 or $300, it’s costing you $7,000… Matthew (12:18): Wow. That’s pretty powerful. Bob (12:21): …Later down the road. That’s very, very powerful. The second example I see that blows compounding is the cost of withdrawing to go buy a depreciating asset like a car. I mean, a car today costs $50,000, a nice one, 40-50k. You buy one of those trucks we drive right here in Texas, you’re talking 80,000 to 100,000, but let’s say $50,000. When you are withdrawing $50,000 from a portfolio, now you’ve taken that part that can no longer, that 50 can no longer turn into a hundred, turned into 200, let’s say over a 20 year period. And I always like to ask the question, if you buy a $50,000 car today, you’ve hurt your portfolio by $200,000 in the next 20 years, what’s the car going to be worth in 20 years? Or the truck? Matthew (13:18): Right. Very little. Bob (13:19): Very little. It’s 20 years. It’s probably in the, where they take cars when they die. I dunno that much about all that, but that’s probably what it is. The power of compounding is just simple math, right? Matthew (13:36): That’s it. Very simple. Bob (13:37): If you can understand this concept, I will say at 62 years old, and I’ve been disciplined, it kind of blows my mind every day to see what’s happening, to see how it was just so small amount that was doubling at first, but now it’s getting bigger and bigger. If you put it on a graph, if you’re listening to the podcast, you can’t see this, you’re on YouTube, it just kind of goes like this. It feels like it’s going straight up. Matthew (14:06): It’s the momentum. Bob (14:07): It’s the momentum. The momentum is building so strong. And I think that’s why you ever heard the term the rich get richer? Matthew (14:15): Of course. Bob (14:15): Yeah. Matthew (14:16): And again, it’s very simple, but it’s very powerful and it’s staying disciplined to and focused on that. And like we said earlier, not getting distracted. Bob (14:24): Yeah, exactly. Well, that’s going to do it for today for our program on Christian Financial Perspectives. I hope you’ve learned about compounding and the Rule of 72s, probably might be the first time you’ve ever heard this before, but if you’d like to give us a call. Matthew (14:37): Yeah. So if you want to hear more about how compounding can help your situation or apply to your situation, call us or text us at (830) 609-6986 or visit us online at our website, www.ChristianFinancialAdvisors.com. God bless you, and we’ll see you soon. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 220 – The Parable of the Talents: What It Teaches Us About Stewardship The Parable of the Talents: What It Teaches Us About Stewardship Are you wisely using what God has blessed you with? More episodes >> The parable of the talents in Matthew 25 teaches powerful lessons about stewardship, trust, and making the most of what we’ve been given. This week, Bob and Matthew break down the parable of the talents, including ways that the servants may have invested, how long they invested, and what principles they might have used when choosing how to invest their talents (like how Christian Financial Advisors uses Biblically responsible investing). Key lessons from this parable and our podcast episode include: Stewardship: We are accountable to God for how we use the resources and gifts He has entrusted to us. Faith vs. Fear: The parable contrasts the servants who acted in faith versus the one who was paralyzed by fear, highlighting the importance of trusting God rather than succumbing to anxiety. Growth and Accountability: The master rewards the servants who grew their talents, emphasizing the need to be productive and make the most of what we’ve been given. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Matthew Barroveccio Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode MATTHEW 25:14-30 – The Parable of the Talents Matthew 25:14-30 14 “For it is just like a man about to go on a journey, who called his own slaves and entrusted his possessions to them. 15 To one he gave five talents, to another, two, and to another, one, each according to his own ability; and he went on his journey. 16 The one who had received the five talents immediately went and did business with them, and earned five more talents. 17 In the same way the one who had received the two talents earned two more. 18 But he who received the one talent went away and dug a hole in the ground, and hid his master’s money. 19 “Now after a long time the master of those slaves came and settled accounts with them. 20 The one who had received the five talents came up and brought five more talents, saying, ‘Master, you entrusted five talents to me. See, I have earned five more talents.’ 21 His master said to him, ‘Well done, good and faithful slave. You were faithful with a few things, I will put you in charge of many things; enter the joy of your master.’ 22 “Also the one who had received the two talents came up and said, ‘Master, you entrusted two talents to me. See, I have earned two more talents.’ 23 His master said to him, ‘Well done, good and faithful slave. You were faithful with a few things, I will put you in charge of many things; enter the joy of your master.’ 24 “Now the one who had received the one talent also came up and said, ‘Master, I knew you to be a hard man, reaping where you did not sow, and gathering where you did not scatter seed. 25 And I was afraid, so I went away and hid your talent in the ground. See, you still have what is yours.’ 26 “But his master answered and said to him, ‘You worthless, lazy slave! Did you know that I reap where I did not sow, and gather where I did not scatter seed? 27 Then you ought to have put my money in the bank, and on my arrival I would have received my money back with interest. 28 Therefore: take the talent away from him, and give it to the one who has the ten talents.’ 29 “For to everyone who has, more shall be given, and he will have an abundance; but from the one who does not have, even what he does have shall be taken away. 30 And throw the worthless slave into the outer darkness; in that place, there will be weeping and gnashing of teeth. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Matthew (00:00): Have you ever wondered what you would do if someone trusted you with millions of dollars to invest? The Parable of the Talents teaches us powerful lessons about stewardship, trust, and making the most of what we’ve been given. We’ll explore this timeless story and its surprising modern day value equivalence. Let’s get some perspective. Hi, welcome to Christian Financial Perspectives. My name is Matthew Barrovecchio and I’m joined here with my good friend and founder of CFA, Bob Barber. And today we’re going to be talking about the parable of the talents as described by Jesus in Matthew 25. Bob (00:47): I am very excited about this today, Matthew. We’re going to take off in the next few weeks, and we’re going to really just, we always talk about scriptural guidelines for finance, but we’re going to get to some of the parables and what they mean. And Jesus spoke on stewardship more than any other subject in the Bible. As a matter of fact, a lot of the Biblical scholars will say he spoke on stewardship more than heaven and hell combined. So this parable is a very famous parable. It’s a very long parable. So without further ado, we’re going to get into this and I’m going to let you do the reading like I normally let Shawn do the reading. Matthew (01:27): Absolutely. Bob (01:27): Okay. And so yeah, if you’re wondering, who’s this, Matthew? Well, Matthew is with our firm and he’s been meeting with our clients for a year and comes with a lot of experience in the financial services business and loves the Lord. And if you want to try to pronounce his name, go for it. How do you say it again? Matthew (01:44): Barrow-vekk-ee-owe. Bob (01:45): See Barovecchio. I’m getting better. It took me about a year. Matthew (01:49): It’s actually the first time you said it correctly. Bob (01:52): Alright. All right. Read Matthew 25:14-30 for us. Matthew (01:56): Here we go. Verse 14, “For it is like a man about to go on a journey who called his own slaves and entrusted his possessions to them, to the one he gave five talents, to another two, and to another one, each according to his own ability. And he went on his journey and the one who received the five talents immediately went and did business with them and earned five more talents. In the same way, the one who had received the two talents earned two more, but he who received one talent went away and dug a hole in the ground and hid his master’s money. Now after a long time, the master of those slaves came and settled the accounts with them. The one who had received the five talents came up and brought five more talents saying, master, you have entrusted five talents to me. See, I have earned five more talents. (02:48): His master said to him, well done, good and faithful servant. You are faithful with a few things and I will put you in charge of many things. Enter the joy of your master. Also, the one who had received two talents came up and said, master, you entrusted two talents to me. See, I’ve earned two more. His master said to him, well done, good and faithful servant. You were faithful with a few things and I will put you in charge of many things. Enter the joy of your master. Now, the one who had received one talent also came up and said, master, I knew you to be a hard man, reaping where you do not sow, gathering where you do not scatter seed. And I was afraid, so I went ahead and I hid your talent in the ground. See, you still have what is yours. (03:35): But his master answered and said to him, you worthless and lazy slave, did you know that I reap where I did not sow and gather where I did not scatter seed? Then you ought to have put my money in the bank and on my arrival I would’ve received my money back with interest. Therefore, take the talent away from him and give it to the one who has 10 talents, for to everyone who has more shall be given and he will have an abundance, but from the one who does not have even what he does have shall be taken away and throw that worthless servant into the outer darkness. In that place there will be weeping and gnashing of teeth.” Bob (04:15): This reminds me of some of the scriptures that you read in Proverbs. It is not messing around here. And I did a lot of research and you did the research too, and so did Shawn about what is a talent and what was considered a talent. I think we came along with somewhere, one talent could be the amount of money that a normal person would take to make 20 up to a lifetime. So when he’s giving a talent, I think of it as what you’re doing with your life as well. But it is a monetary amount too, and it’s a lot. I mean it’s a whole lot. It can be anywhere today. I mean it could be from $500,000 on up to 3 million. It could be anywhere in between. We really don’t know, but we know it’s a lot and there are multiple interpretations in my research of this parable of the talents, it’s not just about investing. Matthew (05:14): Agreed. Agreed, yeah. Yeah. Jesus is talking about the kingdom of heaven and when he’s returning in this parable and he uses money because he knows that we understand that. But as you said a moment ago, and we’re going to review now, there’s many other lessons to be learned from this. Bob (05:33): What’s the one that you see? Matthew (05:34): Yeah, I think the biggest one is the first one we have listed there around stewardship. There are so many things that the Lord has entrusted us with, whether it is things that we can see and touch like our family or our possessions, but it’s also the gifts that he has instilled in us and are we using what he’s given us to glorify his name? Bob (05:57): Absolutely. Yeah. Another one is that interpretation that a lot of people see on the surface about investing, but it’s the idea of growing what has been entrusted to us. Everything comes from God, the earth is the Lord’s and everything in it. Psalms 24:1 says that, so what are we doing with what God is giving us? And then that third one is… Matthew (06:20): Accountability. Bob (06:21): Yeah. Very accountable. Well, my goodness. I mean you see what the guy did with the one talent, the master was upset, right? Very upset. Matthew (06:31): Well, it’s interesting because in the scripture it talks about how the master gave each according to their own ability. And so the master knows what they are skilled in and his response is holding them accountable for you didn’t use all your gifts and everything that I’ve given you or that I know that you can do in order to produce for me. Bob (06:58): Kind of going with the talent is maybe a lifetime of income. So what did you do with the life that God has given you? And boy, at the very end of that, throw ’em out. I mean, that was pretty tough words. Again, it reminds me of a lot of the things in Proverbs and that comes to another area is consequences. There are consequences when we’re given responsibility for us to do something good with it and not just to go throw it in the ground and do nothing with what this life that God is giving us, right? Matthew (07:34): Yeah. I think it’s easy for us to criticize the one talent servant. Bob (07:39): Yeah, it is. It is. But we could all fall in the same realm. Matthew (07:43): Well, that’s it. I think a big part of the parable is for us to look at ourselves and to see, hey, what are we doing between now and what the Lord wants us to do before he returns? And a lot of that requires us having faith and not subscribing to fear, which we will talk about here in a moment or so. Bob (08:04): This is all about building the kingdom of God and how are we working with what God has put us here on earth to do. Now this gets in again, we get to the end here what we were just speaking of is what was a talent worth? And as we say, it was worth a lot, a whole lot. And if you go do your own research, you’re going to find this that the numbers are outstanding, but this parable, like we said, it’s not just about financial stewardship. I think it’s important that one of my emphasis in this entire passage is he gave each according to their ability, so he’s not going to give us more than we can handle. Right? Matthew (08:46): Amen. One of the things that again really stuck out to me is this concept of fear versus faith, right? The one talent servant really was fearful and he allowed that to drive his decision on what is he going to do with this money. I just happened to be studying through Romans right now, and Romans 8:5-8 talks about how we really should be submitting our whole minds to the Holy Spirit and thinking of things that are righteous, not thinking of things that are sinful or of this earth. And this is really a great example of how it’s obvious that the servant was subscribing to fear, not subscribing to faith in God and allowing the Lord to work through him. We know from Romans 8, we know from Hebrews 11:6 that it’s impossible to please God without faith. And so it’s a much better outcome when we follow the five talent and the two talent servants and do what we know that the Lord is calling us to do, even if it’s uncomfortable and even if it’s beyond what we can see and understand. Bob (09:59): The one that got the two, one that got the five came back and said, look, I’ve doubled it. How long do you think that was between the time because the master went away and when we’re thinking about a talent, we’re thinking about a lifetime as well. You have a guesstimate. I have a guesstimate. I’m just wondering. I’m going to put you on the spot here. Matthew (10:18): I have a feeling I know what your guesstimate is, so I’m not going to piggyback off of it. I’ll let you say. Bob (10:23): Well, we’re going to cover this in the next few weeks about compounding and the Rule of 72, and God calls for us to handle money in a Biblical way. So I don’t believe they gambled it. I don’t believe they went and invested it in organizations that would tear down the kingdom of God. I think that probably somewhere around the 7 to 10 year mark is when that master came back and had seen what he had done because just based on my scriptural knowledge of investing in what it says in the Bible and the rule 72s, it takes about 10 years for something to double. (11:04): 10 to 12 years. So I think it was that amount of time. It wasn’t the next day, it wasn’t the following year. So he gave them ample time to do something with what was given to them. And like I said, I don’t think they would take anything and put it immoral ventures because 2 Corinthians 6:17, it says, “Come out and be separate. Touch no unclean thing, and I’ll welcome you.” So this gets back to Biblically responsible investing and the importance behind doing it the right way. And I also think that they invested across many different ventures because Ecclesiastes 11:2 says, “Give your portions of seven or eight because you do not know what disasters may come upon the land.” And there’s some other scriptural guidelines in here, too. And also that when we do invest, we need to ask for wisdom. Proverbs 1:7 speaks of asking for wisdom, and James says the same thing. Matthew (12:03): “If any of you ask wisdom, you should ask God.” Get on your knees. Bob (12:08): And that it wasn’t about timing anything, timing any kind of market back then. Proverbs 13:11 says, “Dishonest money dwindles away, but who gathers money little by little makes it grow.” So I think they used very wise scriptural principles if you are looking at this from the investing point of view. Matthew (12:28): Yeah, the last thing about the time in the market versus timing the market, again, going back to my comments earlier about fear. We all know what happened in 2008. We all know what happened in 2020, and you and I have been serving in this capacity for long enough to unfortunately have experienced individuals who emotionally just subscribe to fear and abandoned their long-term financial plan. And we know that unfortunately, that doesn’t put them in the best chance for long-term investment success. So there’s also an investment lesson here of not allowing panic and other things that the enemy wants to use to derail us, but rather focusing on the long term and what the Lord wants for us. Bob (13:19): Well, I think we’ve done a pretty good job of speaking about the Parable of the Talents. I would invite you to go to God’s word and read about this. There’s so much rich information and guidelines in God’s Word. It just is exciting to me to always bring Biblical guidelines of finance when very few are talking about it today. If you would like to contact us, you can give us a call at 830-609-6986. You can call or text that number during business hours, or you can reach us on the internet at www.christianfinancialadvisors.com. Matthew (13:56): So thanks for watching. God bless you, and we’ll see you soon. [CONCLUSION] That’s all for now. We invite you to listen to all of our past episodes covering many financial topics from a Christian Perspective. To make sure you don’t miss any of Bob’s upcoming episodes you can subscribe to Christian Financial Perspectives on iTunes, Google Play Music, Spotify, or Stitcher. To learn more about integrating your faith with your finances, visit ciswealth.com or call 830-609-6986. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 219 – Financial Wisdom from the Bible: 10 Principles to Guide You Financial Wisdom from the Bible: 10 Principles to Guide You Check out these Biblical stewardship principles that have directly shaped Christian Financial Advisors. More episodes >> This is one of the most personal podcast episodes that you may hear from Christian Financial Perspectives, as these scriptures are what have directly shaped Christian Financial Advisors and the business we are today. Because of this, Bob and Shawn have many scriptures to share that have to do with 10 Biblical principles that the business has used to guide our financial advisors (and personal finances) when it comes to Biblically responsible investing. From being good stewards of our financial resources and creation because “God owns it all,” to sharing exactly what the Bible has to say about hard work and savings, you will hear some great stewardship principles on finances. Most are pretty straightforward, but you may just have your eyes opened with these financial wisdom tidbits straight from the Bible! HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode PSALM 24:1 The earth is the Lord’s, and everything in it, the world, and all who live in it. PROVERBS 22:7 The rich rule over the poor, and the borrower is slave to the lender. 2 CORINTHIANS 9:7 Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. MALACHI 3:10 Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it. PROVERBS 14:23 All hard work brings a profit, but mere talk leads only to poverty. PROVERBS 6:6-8 o to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest. PROVERBS 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow. PROVERBS 21:20 The wise store up choice food and olive oil, but fools gulp theirs down. HEBREWS 13:5 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. LUKE 14:28 Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? MATTHEW 22:19-21 “Show me the coin used for paying the tax.” They brought him a denarius, and he asked them, “Whose image is this? And whose inscription?” “Caesar’s,” they replied. Then he said to them, “So give back to Caesar what is Caesar’s, and to God what is God’s.” PROVERBS 10:9 Whoever walks in integrity walks securely, but whoever takes crooked paths will be found out. EXODUS 20:16 You shall not give false testimony against your neighbor. EXODUS 20:17 You shall not covet your neighbor’s house; you shall not covet your neighbor’s wife, or his male slave, or his female slave, or his ox, or his donkey, or anything that belongs to your neighbor. MATTHEW 6:19-21 Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal; for where your treasure is, there your heart will be also. ECCLESIASTES 11:2 Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land. 2 CORINTHIANS 6:17 Therefore,“Come out from them and be separate, says the Lord. Touch no unclean thing, and I will receive you.” MATTHEW 25:14-30 In this parable, a master entrusts different amounts of gold to three servants before going on a journey – five bags to one, two to another, and one to the third. While the first two servants double their master’s money through investments, the third servant buries his portion out of fear; upon the master’s return, he rewards the productive servants with greater responsibilities and punishes the unproductive one by taking away what he had and casting him out. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you looking for timeless principles to guide your financial decisions? With over 2000 scriptures addressing money management, the Bible offers practical wisdom that has stood the test of time. We’ll explore 10 essential Biblical financial principles that can transform how you handle money. Let’s get some perspective. Welcome back to another episode of Christian Financial Perspectives. My name’s Shawn Peters, and this is Bob Barber. And today we’re going to be covering 10 Biblical financial principles to follow. And in the next 15 minutes or less, we will discuss these 10 principles that are timeless, true, and transcendent. Bob (00:46): Shawn, I’ve never met anyone hurt by following Biblical financial principles, but I sure have met many harmed by not following them. Shawn (00:58): Amen to that. Bob (00:59): And with over 2000 scriptures on stewardship, Biblical stewardship, it is very hard to pick just 10. Shawn (01:06): Yeah. Bob (01:07): We could be here all day long talking about this easily with that many scriptures. Shawn (01:10): But we won’t. We understand no one wants to be here that long. Bob (01:14): So in this short time. And then like I say in the next 15, hopefully we can get through this in 15 minutes. Shawn (01:18): I think we can, we’ll keep it on 15 for y all. Bob (01:20): We’re going to cover the ones from experience that I’ve seen that are some of the most important Biblical financial principles to follow. Shawn (01:28): That’s right. That’s right. Alright Bob, well why don’t you get us started. What’s number one? Bob (01:33): I think number one is truly the foundation for it all and that is what I call ownership. And you’ve heard me talk about this many times, Psalms 24:1, “The earth is the Lord’s and everything in it and all who live in it.” And this is the foundation… Shawn (01:49): And all who live in it. Bob (01:50): Yeah, the world. Shawn (01:51): Everything. Bob (01:52): Yeah. Everything is a good way of everything. And this is the foundation for stewardship that God owns it all. And once you really come to this realization that God owns it all, then the rest of this makes so much more sense. Shawn (02:05): Yeah, yeah, that’s right. Number two, debt. Bob (02:08): Yeah. We’ve talked about this over and over. Proverbs 22:7 is the scripture that goes with this, “The rich rule over the poor” [are the banks. The banks rule over the poor] “and the borrower is slave to the lender.” You can’t get any more clear than that, can you? Shawn (02:25): Yeah, yeah. That is, I mean, straight to the point. Bob (02:28): So when you get in high debt, what’s happening? Shawn (02:33): You’re becoming a slave. Bob (02:34): You’re becoming a slave to the lender and we are not to be a slave to anyone. Shawn (02:39): And keep in mind, debt isn’t inherently wrong. Bob (02:43): I didn’t say debt was evil. Shawn (02:45): But you do want to keep in mind that, I mean Proverbs 22:7, “The rich rule over the poor and the borrower is slave to the lender.” So you need to be very careful what you’re borrowing, when you’re borrowing, and looking at are you putting money on a credit card that you can’t pay off? Is this something happened that you weren’t prepared for? Was this a systemic issue? Which many times it is. It’s where people are just not, you’re looking at your finances and wondering why they’re out of whack. Well, if you don’t manage them properly, you don’t make sure you’re spending less than you bring in, you’re going to get into this problem. And so avoid that debt for things like that. Bob (03:28): We want to say again, debt is not a sin and I’m not against responsible debt. It’s very difficult for anyone below 40 years old or even below 50 to go buy a home today and not borrow. Shawn (03:41): You don’t buy a home without borrowing some money at least. Bob (03:44): And my dad used to say, whether you rent or whether you buy, you pay for the place you occupy. Shawn (03:50): We’ll have to do a whole episode if we need to on why you can’t buy a home for cash anymore. But yeah, so debt just be responsible with it, I guess is a good way to cover that one. Number three, giving and tithing. Bob (04:02): You’ve heard me say me again many times, giving it breaks the chain of materialism, but I think it’s important that you not be giving from a point of guilt. 2 Corinthians 9:7 says, “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” There’s a starting place for everyone. And maybe that starting place is just a hundred a month right now and then you get to 120 a month or maybe it’s just $10 a week, just little bits at a time. And then Malachi 3:10 goes with the tithing part, “Bring the whole tithe into the storehouse that there may be food in my house…” And you realize in scripture this is the only place that says this…”Test me in this, says the Lord Almighty, and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be a enough room to store it.” Shawn (05:07): That’s right. Think of giving, again, the reason why we kind of did them in this order, God owns it all. So if God owns it all, when it comes to giving, you’re not holding onto it tightly, but you’re willing to let it sit on your hand. And so if the Lord is directing you and guiding you like, “Hey, I want you to give some of this up.” It’s okay because it didn’t belong to you in the first place, and he is faithful to take care of our needs. Bob (05:33): When we said the debt was the second then we went to giving was because debt takes away from giving. Shawn (05:38): That’s right. That’s right. Bob (05:39): Yeah. Shawn (05:40): Number four, working and saving. Bob (05:43): Proverbs 14:23, “All hard work brings a prophet, but mere talk leads only to poverty.” Working is good. Shawn (05:53): And it existed before sin entered into the world. So we know it has always been part of God’s plan for creation. Bob (06:00): This is the fourth principle, is that working and saving you look at Proverbs 6:6-8. I’ll have you read that scripture. That’s always a funny scripture. Shawn (06:10): I was going to ask, do I get to read something today? Bob (06:11): Yeah, you get read that. Shawn (06:11): So Proverbs 6:6-8 is, “Go to the ant, you sluggard, consider its ways and be wise. It has no commander, no overseer or ruler yet it stores its provisions in summer and gathers its food at harvest.” Bob (06:25): It works and he saves. Shawn (06:25): Works and saves up. Yeah. Bob (06:28): At the same time. And then another one that goes along with this. Shawn (06:32): Speaking of that, I think it’s amazing. There are certain ant species that actually are farmers. They don’t just gather and prepare ahead of time, but they actually cultivate and grow different types of fungi inside their colony for extra food. Bob (06:48): You would know this because you come from a farming family. Shawn (06:51): It’s just a really cool science thing. And then Proverbs 13:11, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” That is one of the most direct, but definitely not the only ones, that goes against the idea of get rich quick. (07:06): And it really hurts my heart how much content and stuff there is out there of all these supposed influencers that most of them are literally faking it and trying to act like they’re, oh, they’re already wealthy and they know what they’re doing and they sell people on this idea of the course that they want people to sign up for. Oh, if you invest in this thing or getting this new particular cryptocurrency or whatever the latest fad is that you’re going to be able to get ahead. And it’s all lies because it goes against what God’s word says all the time. It’s not flashy, but as we see in Proverbs 13:11, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” Bob (07:50): You remember we did the podcast last year, what was it? The 10 traits of Christian Millionaires. Shawn (07:56): That’s right. Bob (07:57): And if we could put that, which one that was, I don’t know which one that was. Shawn (08:01): We’ll find it, put it in the description. So by the time you’re listening/watching this, it’ll be in the description for you. Bob (08:06): But most all of them did not get wealthy by huge big investment returns. Shawn (08:13): No, it’s very, very rare. Bob (08:14): Yeah. It’s by following Biblical, these Biblical principles, right here, which we get into number five. Number five, overspending. Proverbs 21:20 says, “The wise store up choice food and olive oil, but the fools gulp theirs down.” Proverbs never is…it’s just right to the point, isn’t it? Shawn (08:37): I feel like it’s as close to plain English on some wisdom and principles as you’re going to get. Bob (08:41): Yeah, yeah. Shawn (08:42): Hebrews 13:5, “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.'” And that’s another one, too. Again, it says from the love of money. Because again, a lot of times people talk about like, “Oh, money is the root of all evil.” No, no, no. The love of money is the root of all evil and all kinds of evil. And a big part of that is because, well, if you love money more than you love God, you’re going to put it ahead. You’re going to serve it instead of God. Bob (09:15): Creating… Shawn (09:15): And God already owns all the money in the first place. So you’re putting the creation on the throne of the Creator. Bob (09:22): Again, you’re creating overspending, which is this principle and the second part of that scripture and it says, “Be contempt with what you have.” And here in America it’s always, you need more, you need this newer, you need this better. And it’s always just a little bit more. That’s right. You’ve got to ask yourself the question, “How much is enough?” Shawn (09:44): The drive – a little bit more, a little bit more – when it comes to the materialism and the consumerism of wanting to get a little bit more, buy a little bit more, own a little bit more things. It’s actually a perversion of something that is actually a really positive thing, whereas our reflection of being made in God’s image and that God is a Creator God and so He created, but then you look at, okay, wine and bread and there’s all these things that were made by mankind who discovered a way to take things that God had originally made and make something new from it that didn’t previously exist. So if you’re not careful, that drive can turn into consumerism and materialism. But that drive to a little bit more to make things a little bit better is actually a reflection of God’s nature. You just have to be careful with where it’s focused. Is it getting things to get things or is it, “Hey, I just want to take good care of what God’s entrusted me. I want to make this a little bit better. I want to make my kids’ lives better,” whatever that case may be. So anyway. Bob (10:51): This next scripture really warns us also about overspending is Luke 14:28, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the costs to see if you have enough money to complete it.” Shawn (11:03): I think it’s a great scripture for retirement planning, too. Bob (11:06): It is. Shawn (11:06): Like, okay, well if you want to retire at X, whatever the age is, you have to plan ahead. Am I on track to make that? Because if you’re just chasing returns all the time, it’s not going to matter. You need to plan ahead and figure out what you actually need. What’s the target? Bob (11:18): Yep. Number six. Shawn (11:19): Not cheating on taxes. Bob (11:22): This is a big one. I’ve met Christians even that said, they’ll say, “Well pay me in cash.” And I’ll say, “Why do you want me to pay you in cash?” “Well then I don’t need to report it.” I’m like, wait a second. Shawn (11:32): Well, as a Christian, you absolutely should still be reporting it whether you technically can get away with it or not. Bob (11:39): And Matthew 22:19-21, if you’ll read that one for us. Shawn (11:42): Sure thing. “‘Show me the coin used for paying the tax,'” was Jesus talking, “They brought him a denarius and he asked them, ‘Whose image is this and whose inscription?’ ‘Caesar’s?’ They replied. Then he said to them, ‘So give back to Caesar what is Caesar’s and to God what is God’s.'” Bob (11:58): It’s absolutely critical as a Christian that we pay our taxes fairly. Shawn (12:03): That’s right. Bob (12:05): My good friend Ron Blue, he always says, that’s God’s provision. Shawn (12:07): That’s right. If you’re not paying any taxes, you’re not making a whole lot of money. My dad always told me growing up, always pay your taxes. Don’t try to cheat on your taxes, but pay as little taxes as you have to. There’s no sense in paying more than you have to, but pay what you owe. Bob (12:24): Alright, number seven, we got three more. Three more honesty. And that goes into paying the taxes. Shawn (12:29): That’s right. Bob (12:30): Proverbs 10:9, “Whoever walks in integrity walks securely, but whoever takes crooked paths will be found out.” When you’re honest, you never have to worry about, what did I say? Because every time you lie, you have to have to say another lie to make up for that lie. Shawn (12:49): Yep. Bob (12:50): That’s right. So it ends up going down a slippery slope. It’s given to us in the 10 Commandments in Exodus 20:16, “You shall not give false testimony against your neighbor,” which is again, not lying and being honest about everything. Shawn (13:06): That’s right. Number eight, coveting. Exodus 20:17, “You shall not covet your neighbor’s house. You shall not covet your neighbor’s wife or his male slave or his female slave or his ox or his donkey or anything that belongs to your neighbor.” Bob (13:20): This is the last commandment of the 10 commandments. And it’s such a Biblical financial principle because we cannot start looking over and comparing. And when you get into that game again, it’s a game of greed and coveting and God calls for us. And that is a strong Biblical financial principle. Shawn (13:41): Number nine, hoarding. Kind of goes right, right off of a coveting, really. Bob (13:44): It does. Shawn (13:45): To not just over store up and, “Oh, I want more. I need more.” And so number nine, hoarding. Matthew 6:19-21. Would you like me to read that one, Bob? Bob (13:57): You go for it. Shawn (13:58): Okay. “Do not store up for yourselves treasures on earth where moth and rust destroy and where thieves break in and steal, but store up for yourselves treasures in heaven where neither moth nor rust destroys and where thieves do not break in or steal. For where your treasure is there, your heart will be also.” Bob (14:14): Amen. And the last one. We’re not going to get a whole lot into that because the last one today we’re going to say is investing. Shawn (14:22): That’s right. Bob (14:22): We’re going to give you some Biblical principles and then next week we’re going to have a complete program on the parable of the talents. But investing Ecclesiastes 11:2 says, “Invest in seven ventures. Yes, in eight, for you do not know what disaster may come upon the land.” This is a warning given to us in scripture that when it comes to investing, we need to be very careful about putting all our eggs in one basket, as the old saying goes. Shawn (14:46): So two examples on that. One, if you’re investing in the markets, that doesn’t mean you work with say, two advisors that are both investing you in the S&P 500 index. It doesn’t mean if you’re investing in real estate that you have more than one single family home. If anything, that real estate is not diversified. Number one, it should be different types of properties. But I would argue even more so if you only have the real estate, you’re still not really that diversified. Bob (15:13): Right. Shawn (15:14): It needs to be different kinds of investments. Bob (15:18): Across many different sectors. That correct. We always emphasize about what we call Biblically responsible investing here, and that’s 2 Corinthians 6:17 is a great scripture of that is, “‘Come out from them and be separate,’ says the Lord, ‘Touch no unclean thing, and I will receive you.'” Speaking of being careful how we do invest, and we’ll speak more about this in our next episode. In the next episode, like I said, it’s going to be taken from Matthew 25:14-30, which is going to go deep into investing, looking at the parable of the talents, which is a very long scriptural passage, and it needs to be broken down and talked about. Shawn (15:55): That’s right. So that’ll be next episode, right, Bob? Bob (15:57): That’s correct. Shawn (15:58): All right. So hope you tune in for that one. As always, thank you so much for joining us. God bless. And if you have any questions or comments, feel free to leave those comments on the video or you can call or text us at (830) 609-6986 or visit our website, www.ChristianFinancialAdvisors.com. Thank you and God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 218 – Values Over Location: How To Choose Your Financial Advisor Values Over Location: How To Choose Your Financial Advisor Why proximity is not greater when it comes to the quality and values of a financial advisor. More episodes >> Within the past 5 years, our world has truly transformed the way individuals can receive personalized financial advice, making location no longer a barrier. With advancements in video conferencing, digital documentation, and secure online access, values based financial advisors, like Christian Financial Advisors, can give personalized financial guidance without the need for in-person meetings. Even if you do live close to your financial advisor, the convenience, ease of communication, and extended adviser availability are benefits of the shift to online financial advice. Finding an advisor that aligns with your values and needs is more important than geography, as technology enables advisers to serve clients nationwide, and Christian Financial Advisors is here to help you with just that! HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode 2 CORINTHIANS 6:14 Do not be mismatched with unbelievers; for what do righteousness and lawlessness share together, or what does light have in common with darkness? Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you limiting your search for a financial advisor just because of where you live? In today’s digital world, you shouldn’t have to compromise on finding an advisor who truly understands your values and aligns with your financial goals. We’ll explore why location no longer matters when it comes to getting expert personalized financial guidance, and how technology has transformed the way you can receive financial advice that matches your specific needs. Let’s get some perspective. Welcome back to another episode of Christian Financial Perspectives. I’m so glad that you’ve joined us. My name’s Shawn Peters. I’m joined as always by Bob Barber, and today we’re going to be covering a very interesting topic, one that’s kind of close to my heart because it’s going to be covering a little bit technology stuff, but the shift from local to online personal financial advice. And before we get too far into this, I do want to go ahead and share the scripture we have for this episode 2 Corinthians 6:14, “Do not be mismatched with unbelievers for what do righteousness and lawlessness share together or what does light have in common with darkness?” Now, the reason why that scripture was chosen by Bob for this is the idea of picking a financial advisor that happens to be nearby but may not be the right fit for your needs and in alignment with your values versus finding an advisor that geographically maybe as far away from you, but within a “click” you can connect with that advisor and not just be online like a robo-advisor or tool, but actually get online personal financial advice. Bob (01:41): That’s correct, Shawn. And this scripture really does go with it. And I have seen such a paradigm shift in my 30 plus years in this business. When I first got into it, it was all about I’m going to sit across the desk from you, and that’s the old school. Shawn (01:59): So people would just choose someone based on who happened to be nearby to where they lived and really didn’t go into, well, what experience and skills or specialization do they have? What kind of team do they have to serve them? It’s just, well, they’re nearby, they’re downtown, and so I guess I’ll go talk to them. Bob (02:18): Which was hard for us because we were Christian focused from the very beginning. And of course our town is full of a lot of Christians, but you realize we serve that “Christian within the Christian” that really has a Biblical worldview. So then I started going on Christian radio and that really made a difference because now we were able to get the word out across San Antonio, Austin, Houston and Corpus Christi in our area, which I was on for eight years. But I’ve seen this change go from that local advisor to online advice, which was very big in the late 90’s, early 2000’s. And now I’m seeing the shift of going to online advice, but it’s personalized, very personalized, which we’ve become that a lot because of you, Shawn. You are very dedicated to technology and the need for having an advisor sit across the desk from you versus online. There’s really no need anymore because of the tools that have been available to us. Does that make sense? Shawn (03:24): No, I think so. And for those who aren’t aware, but my background was working with Bob for what was about five years or so, right out of college. And then the Lord had a very circuitous path, if you will, on working here at the firm longterm because he called me into working in tech, website development, app development, things like that. And so coming back to work with Bob in 2020, my perspective was very different than right out of college and working with you. And I kind of approach things, my personal philosophy, if you will, but especially here at the firm, technology is never meant to replace the human connection. The intent is never to remove that you never talk to a real person, you never have a conversation. Bob (04:11): Well, like I said, always high tech and high touch. Shawn (04:13): Exactly. High tech and high touch. Because ultimately, what you want for the technology is to bridge the gap between people who are looking for someone like you and being able to connect and maximizing the amount of human touch. And so the things that can be automated or moved to technology instead of an individual person having to manually type in or do some of that stuff, great, do that because then it gives us people more time with people, even if you may geographically be very far away. So, we have for today’s program, five reasons a local financial advisor may not be the best choice and cover those and talk about a little bit of the shift. Bob (04:59): These are reasons I thought about this. And first, they just may not have the experience or the qualifications that a person might need. And that second is they may not specialize and most don’t as an example, such as Biblically responsible investing, we specialize in Biblically responsible investing and Christian-based financial advice based on a Biblical worldview. Shawn (05:22): That’s right. Bob (05:22): There’s not a lot of advisors that do that. I mean there is a couple thousand now through Kingdom Advisors, but when you compare with the industry as a whole, oh, when you compare the industry, the country, yeah, it’s very small. So where does a Bible believing Christian that believes that God owns it all? Where do they go? Because their local advisor may not provide that. A local advisor may not be able to get the experienced, qualified staff because they could be limited by location unless they’ve grasped technology like we have, they may not be the technologically advanced. And also, I just got an invitation this morning for another workshop and I could tell this was a commission-based advisory. It said it right in there, there are conflicts of interests with coming to this workshop, yet they said it was fully educational. And that be that local advisor may be only commission-based, which creates a conflict of interest to that. So there’s this shift that’s going on that I’ve seen, like I said, from local to online, personal financial advice where location really just no longer matters, Shawn, and that we’ve grown and grown from across the United States. Shawn (06:35): I would say just honestly in the last couple years alone, 60-70% at least of our new clients have come on board are not even within two hours drive. Most of them. Bob (06:47): Maybe not even in Texas. Shawn (06:48): Yeah, I’d say only about half of those are even in Texas. And so Bob, let’s get into some reasons of why we say no location no longer matters. What would you say is the first thing? Bob (07:02): Well, I think the first thing with the technology, because technology goes along with all this, is the ability to have face-to-face online meetings. And you’ve introduced me to where basically with the click and within seconds we can be having a face-to-face online meeting with anyone, anywhere, regardless of location. Shawn (07:22): And the client or potential client who’s wanting to speak with us doesn’t have to download anything either. Bob (07:27): And we do the personal financial planning online as well in real time. And investing has become so easy because of this, how we can talk directly with someone just like they are sitting across the desk. Shawn (07:42): Exactly. Bob (07:43): Yeah. Shawn (07:44): So, what would you say is the second reason? Bob (07:46): Second reason is definitely convenience, convenience, convenience. I could say that three times just because it has become so convenient for someone to conduct business actually from their home. Shawn (07:59): Yeah. Bob (07:59): Okay. Because if they just have a decent internet connection and a tablet or Shawn (08:05): You don’t have to worry about traffic or planning for the actual, even if traffic isn’t bad, planning for the 20 plus minutes each way. Bob (08:15): At a minimum. I mean we’re in New Braunfels between Austin and San Antonio, and if you’re coming from Austin, you’ve got to figure out a half day coming down here and back or San Antonio’s the same way. And many of you across the nation may be the same way. I mean if you live in a large city and you just want to go across town and back, it could be an hour. Shawn (08:35): That’s right. Bob (08:35): Cause of traffic. Shawn (08:36): The other convenience with that is not just technology from our clients and potential clients being able to communicate with us, but one of our advisors who worked at a large firm that, I won’t mention the name, but he had worked there for about 20 years and since joining us, he is in the office physically one week a month on average, but the rest of the time he’s working in Florida remotely. And so because of that, we actually have slightly extended hours now because one of our advisors is on east coast time zone versus central time zone. And one night a week he is extending those hours even further and it allows people who, maybe it’s after work. I know for a lot of people, if you have a career, it’s hard sometimes to meet with an advisor between eight and five. And so that’s kind of what the other convenience things that us embracing the technology to bring on staff from other places also opens up some opportunities for us as a firm to be more available to people, again, through technology. Bob (09:41): And a third reason is communication is so easy today. I mean with a smartphone, text messaging, email just makes it so easy to communicate with the financial advisor and their team. We monitor, all of us are monitoring the emails and the text messages here. So as soon as the text message comes in, we answer right back. Shawn (10:02): One of us sees it. Bob (10:03): Yeah, one of us sees it. Hey, did you see that one go through? They’ll point something out to me if I’m not looking at it right then. Shawn (10:08): Exactly. “Hey Bob, check this out.” Bob (10:09): I’ll immediately get one of the team members saying, “Bob, did you see that text?” I’ll say, “Well, no I didn’t. I’ve been busy for the last 15 minutes.” “Okay, well you need to go look at that.” Shawn (10:19): Alright, what would you say a fourth reason would be? Bob (10:21): By far, you’ve helped so much with this, Shawn, and this has been how easy documentation is today and how that because of Digitize and things like DocuSign, this secure documentation has taken the place of paper. And I look at this too, this is much safer. As an example, if you’re going to mail forms through the traditional mail. Traditional, I guess snail mail, there’s the danger of that being stolen and somebody getting into your mailbox and getting that mail. But this wonderful digital documentation just makes it so fast and so easy to bring somebody on board. And when there needs to be anything signed, it can be done through DocuSign. Shawn (11:10): And what about our fifth reason? Bob (11:12): I love this one, direct deposit, remote capture, withdrawals can all be done today by account to account, as long as those accounts are exactly the same, they have to be awarded same social security numbers, same addresses, same everything. And even I like the idea of how who we use allows ATM withdrawals from any ATM. So you can go to, most people have a local ATM, within a mile of where they live. So you could do the cash withdrawal, also really again, why does your advisor have to be down the block from you? Your ATMs down the block from you. Shawn (11:51): And 6th reason. We’ve got eight total. So bear with us. We’re almost there. Bob (11:54): Electronic storage. Shawn (11:55): Yep. Bob (11:56): This is a big one we use. It’s very easy to see all the forms that you’ve signed anytime of the day. We use what’s called a digital vault, and that’s becoming very mainstream. It’s 24/7. Shawn (12:07): It’s quick and easy. If a client needs something for a bank loan or verification or just anything that we get signed, we always share a copy of that right there in the vault. Number seven. Bob (12:20): Secure online access. Shawn (12:21): Kind of goes right into number six. Bob (12:22): It does. That’s been around for a long time. But it’s still nice to know that with your advisor, you can go online anytime and there’s transparency, you can see all the holdings, you can see what the values are. So you’re never in doubt, “What is my advisor doing?” It’s all laid out right there through online. Shawn (12:39): And speaking of the online ease of use, number 8. Bob (12:42): Appointments, you can go right online to an advisor’s website and just make the appointment anytime. You could do that at eight o’clock at night and make your appointment with your advisor the next day or two or three days from now. Shawn (12:54): Exactly. No back and forth of, “Well, what about this time? Do you have anything on this date?” Bob (12:58): Yeah. The bottom line to all this is that you look for somebody that’s technologically advanced today. Shawn (13:04): Yeah. Bob (13:05): And like I said, we’ve gone from one extreme, from the local advisor to the online. Now, a lot of your local advisors like us, we’ve adopted all the technologies available to us to make it where location just really no longer matters. Shawn (13:21): So using the technology as a way to bridge that geographical gap, if you will, or that barrier to entry. And so that way, you can connect personally with a local advisor even though that local advisor may not be locally to you. Bob (13:40): Yeah, that’s true. It may not be physically local, but you can still get that same local, personal advice. And around here, we’ve all got the same phone systems. We were in a chat room altogether during the day, so you and I, when we want to talk, it’s just as easy for me to talk to you through an online chat… Shawn (14:04): Whether you’re here at the physical office or you’re at your home office or you’re at your office on the coast. It’s always the same communication. And so it’s also nice for disaster situations, too. If we had an issue with the local office, not a big deal. We all have laptops. You just go to the nearest place that has electricity and internet. Bob (14:25): Shawn, it just really comes down to if you’re choosing an advisor just solely based on location today, you’re nearly cheating yourself of a superior of personal experience that you could have with an advisory team that fits you. And speaking of the advisory team, that fits you too, Shawn. I like it that location does not limit us to getting the brightest and best minds from around the nation. Shawn (14:53): That’s right. Bob (14:54): That you don’t have to live right here where we are, we’re headquartered in New Braunfels between Austin and San Antonio. Like I say, we’ve got Matthew, that’s all the way in Tampa, Florida. And then Theresa that works with us, she never comes into the office. She might as well be in another state. Shawn (15:11): Because every once in a while she notarizes something. Bob (15:12): Yeah. Yep. Shawn (15:14): Pretty much it. So once again, 2 Corinthians 6:14, “Do not be mismatched with unbelievers. For what do righteousness and lawlessness share together or what does light have in common with darkness?” Here at Christian Financial Advisors, we can technologically serve Christians with Biblically responsible investing in Christian-based financial advice regardless of their location. We do serve many local believers here in our area and is new Braunfels Texas’s oldest financial advisory firm. Bob, you’ve been in the industry for a long time, been in the industry here. Bob (15:49): One of the oldest in Central Texas, actually. Shawn (15:50): That’s right. So we just encourage you that when you are looking for an advisor, don’t settle for an advisor that just happens to be nearby geographically. Find the one that has the right team and tools to serve you, and one that aligns with what’s important to you, your values, and what you’re actually looking for. And with that, thank you as always for joining us and God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 217 – 10 Steps to Making Wise Financial Decisions 10 Steps to Making Wise Financial Decisions Are you asking yourself these questions before making that next, large, financial decision? More episodes >> Are you struggling with an upcoming decision that may cost a lot financially? Many of us come to this point when it is time to purchase a new car, new house, make renovations, or anything else that can put a damper on your bank account. Finding a way to navigate the minefield of the pros and cons of a big financial decision can be confusing and stressful! This is why Bob and Shawn discuss 10 steps – or questions to ask yourself – before making a decision that is financially large. Will you go into a debt that you can’t dig out of or is it something that seems like a passing whim or fad? All of these questions and more are discussed to help you the next time you need to make a wise financial decision. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode ECCLESIASTES 3:1 There is a time for everything, and a season for every activity under the heavens JAMES 1:5 If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you. PROVERBS 14:29 Whoever is patient has great understanding, but one who is quick-tempered displays folly. PROVERBS 21:5 The plans of the diligent lead to profit as surely as haste leads to poverty. PROVERBS 22:7 The rich rule over the poor, and the borrower is slave to the lender. PROVERBS 3:5-6 Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight. LUKE 14:28 Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? PHILIPPIANS 2:4 Not looking to your own interests but each of you to the interests of the others. 1 CORINTHIANS 10:23 I have the right to do anything,’ you say—but not everything is beneficial. ‘I have the right to do anything’—but not everything is constructive. 2 CORINTHIANS 9:7 Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. PROVERBS 24:27 Put your outdoor work in order and get your fields ready; after that, build your house. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Are you facing a major financial decision and unsure of the right path? In today’s episode, we’ll explore 10 steps to making wise choices guided by Biblical wisdom and practical insights. Discover how to align your finances with your faith and make decisions that honor God. Let’s get some perspective. Welcome back to Christian Financial Perspectives. My name’s Shawn Peters. This is Bob Barber. And today we’re going to be covering 10 steps to making wise financial decisions. And for this, it’s going to be covering for anyone if you’re dealing with a major financial decision and what you should do. Now, Bob put this together. So today we’re going to have some scriptures as always, but we’re going to be a little bit different format and we’re going to kind of let Bob do most of the talking. Bob (00:51): Really, Shawn, I’m always having such a hard time getting in there. Shawn (00:55): Hey, believe it when you see it. Okay, so I did say that was the goal. So feel free to call me out in the comments. Bob (01:03): So let me tell you, I want to tell you first though, before we get into this because about these 10 steps to making wise financial decisions. When I wrote this, I wrote this pretty quickly and I wrote it just a few months ago because I was dealing with a major financial decision. We haven’t made it yet, actually, because one of the things is going to be exercising patience. But I was thinking as I was looking at this major financial decision, what are some things I need to think about before making it? And this is where I came up with it and as I was writing this down I thought, wow, this would be a great program. Shawn (01:38): Yeah, yeah, for sure. So for our first scripture, we’re going to go with Ecclesiastes 3:1, “There is a time for everything and a season for every activity under the heavens.” Bob (01:49): Exactly. Shawn (01:50): Yeah. Well you don’t worry though, we’re not going to list all of the different time for this and a time for that. We’d be here for a while. Bob (01:56): We’re not. Shawn (01:57): Bob, what are some examples of specific major financial decisions that kind of brought this to mind? Bob (02:03): Well, one is we were actually looking at a vacation home in Keystone, Colorado because we go there every year. We’ve been going there every year for 40 years and we’ve been renting and as I become semi-retired, we’re going to be spending at least two or three months up there. And I’ve looked at what it would cost, what we’re going to pay in rent every single year and we’ve thrown away a lot of money over the years in rent and would this be a good decision? And it has to do with selling another piece of real estate, and so I’m really looking at this from the perspective, is this wise or not? Or should we just keep renting and actually getting nothing, no return on our money. And I looked at the last 20 years of returns and it’s a good 6% return and it’s all tax deferred. Shawn (02:54): Is that 6% from rental income potentially or is that mostly appreciation? Bob (02:58): That’s just appreciation and I looked at it from that point of view, but before I would make a big financial decision, which we have not made that decision yet. I thought I’ve got to think about this first. Shawn (03:08): For those tuning in, you mentioned a potential property, but do you have some specific example? Bob (03:15): Oh, a car. A car is such a major financial decision today. If you’re going to buy a new home, do something like a big remodel. Down in South Texas, we’ve got our big farmers and ranchers that buy a tractor that cost a hundred thousand or more. Shawn (03:28): Oh yeah, yeah. Depending on the tractor, it could be a lot more. Bob (03:30): These are all big decisions that… Shawn (03:34): Maybe RV, boat, some people can buy planes. Bob (03:38): They do. We have some clients that have bought some planes. We sure do. And a matter of fact they said it’s cheaper to rent than to buy in that case. Shawn (03:44): Yeah. Bob, what’s the first step? What’s step number one? Bob (03:47): Step number one, I believe for a Christian, is you’ve got to pray about it. You’ve got to ask the Lord for wisdom. Seek out his word and pray about it. And if you don’t have a peace about this at all, don’t do it for goodness sakes, right? Shawn (04:01): Yeah. Bob (04:01): I mean I feel like that’s the Lord stepping in and saying this is not a wise decision. Now sometimes God just may be silent on this and this is where you need to turn to scripture, but I really think you need to use wisdom nd James 1:5, I know you pulled that one up. Read that for us. Shawn (04:18): It was actually we were both working on this and we both Bob (04:21): Came up with that. Shawn (04:22): That was our first one we both came up with. So James 1:5, “If any of you lacks wisdom, you should ask God who gives generously to all without finding fault and it will be given to you.” Bob (04:32): You’ll be shown that. And if you ask for that wisdom, God will give you that wisdom and immediately. Shawn (04:38): But be open to it might not be the answer you wanted. Bob (04:40): Exactly. Shawn (04:40): He might say no. Bob (04:43): And if he does say no and really the step one, in my opinion, if you do not feel a peace about this and God’s saying this is just not something within my will, you need to stop right there. You don’t need to go to any of the other steps I’m going to mention today. Shawn (04:57): Exactly. So stop there if you don’t get past this one, but if you do, we’ll go to the rest of them. So Bob, what’s step two then? Bob (05:05): Step number two is using patience. You’ve got to be patient. Don’t let your emotions get involved and think about it when they think about “it.” I’m putting the “it”, whatever it is, whether it’s buying that new car, buying a new home, buying maybe a second vacation home because you go to the same place every year, which Rachael, like I said, we’ve been going to Keystone for 40 years now every year. “It” is going to be there and you have a tendency, as an example in our case, you see maybe a property you like, you really, really like, but the timing’s not there yet. Don’t get ahead of yourself because maybe that will not be there, but there’ll be another one that will come along. Then many times by waiting and being patient, God is showing you something and you’ll notice… Shawn (06:02): Not letting your emotions dictate. Bob (06:04): Exactly. You’ll notice we found some properties we like, but we’re like, it’s not timing yet. I have a feeling if we’re patient and we wait on God, when the property does come along, it’s going to be so much better. Shawn (06:16): Amen. So alright, next is step number three. Bob (06:23): Well, look at really the good and the bad long-term consequences of the financial decisions or the decision. Example: will it be worth more or less in 10 years. Now in the case of an rv, no it’s going to be much less. Shawn (06:41): RV or a car is definitely going to be worth less over 10 years. Bob (06:44): Real estate has a long record. I mean basically history itself, real estate, unless it’s just really a bad spot… Shawn (06:54): Or you just time it really really bad. Bob (06:54): It’s never gone down in value. Shawn (06:55): Maybe you bought it a super, super peak time and then it just so happened that it was a short term drop 10 years later. Bob (07:06): But usually 10 years is enough time and real estate keeps right with it. At least inflation, something like that. But you think about these other big decisions, will it be a good long-term decision? And that’s very important. Shawn (07:20): For this. We have Proverbs 21:5, “The plans of the diligent lead to profit as surely as haste leads to poverty.” Bob (07:26): Yes. Yeah. Shawn (07:27): It’s a good one. Alright, so what’s the next step, Bob? Bob (07:30): Is it going to put you in debt? That’s a big one. Shawn (07:33): Step number four, will it put you in debt? Bob (07:35): And give you an unwanted burden that you just didn’t want and you cannot handle? And emotions can get you there. You’ve got to be careful of that, getting in that debt and don’t ever buy based on monthly payment. When you go buy a car, how much can you afford per month? Think about it because that could be anywhere. They could say, well you could say, well I can afford $300 a month. Well we can charge this person 15% interest then because based on what they’re going to spend. So look at that debt and it can last for so long, too. So quickly you can get in debt and then it can take so long to get out of it. Shawn (08:19): Yeah, that’s true. Bob (08:19): Yeah, “The rich rule over the poor and the borrower is slave to the lender.” Proverbs 22:7. You’ve heard us say that one on this program many times. Shawn (08:31): All right, so what do you do next? What’s step number five? Bob (08:34): Well step number five is are you sure you’re going to be happy with the financial decision that you made six months from now or are you going to be happy with it in the long term? You’ve got to pull back and pull those emotions back and say am I going to be really happy I made this decision? Shawn (08:52): That’s a good one. Definitely a good perspective. And for that we’ve got Proverbs 3:5-6, “Trust in the Lord with all your heart and lean out on your own understanding. In all your ways. Submit to him and he will make your path straight.” So what’s step number six? Bob (09:10): Okay, so we’re halfway through. Shawn (09:11): Yep. Bob (09:11): Step number six, is it going to lower your cash reserves to a dangerously low level in order to purchase this? And when I say dangerously low, is it going to lower your cash reserves to less than six to nine months of living expenses? Don’t do that. Don’t get close to that edge of that cliff. And most people will say, are you kidding? I don’t even have six to nine months of cash reserves. Well then you don’t need to be making this financial decision. Shawn (09:39): I would say then stop here, build up your cash reserves, then come back later. Bob (09:43): Exactly. That’s right. Shawn (09:44): And for this we have Luke 14:28, “Suppose one of you wants to build a tower, won’t you first sit down and estimate the cost to see if you have enough money to complete it?” I know we’ve used that a few times. That’s also a good one. So what’s step number seven, Bob? Bob (09:59): Well step number seven was another one I put in here and I thought about because I know in this case we were looking at real estate and I thought about how much time will this take and will it positively or negatively affect those that you love around you? And will you have to devote so much time to “it” that it would take away time from those that you care about? In other words, if we buy something in Keystone, Colorado and we’re down here in Texas, how much time is that going to take? That’s why I wouldn’t want to buy a home. I would want to buy, say a condo, that takes care of everything so that I don’t have to do anything. Set up automatic bank draft for the electric payment. Utility payment, things like that. Shawn (10:45): The things you are involved in you can do remotely, more or less. Bob (10:48): Yeah. Shawn (10:49): That’s a good point. And Philippians 2:4, “Not looking to your own interests but each of you to the interest of the others.” So you’re making this point in step seven of, it’s not the financial aspect of it, but it’s like you said, the positive or negative of how is it going to affect the people around you, the people you care about. Yeah, but that’s important. Bob (11:10): It is. It’s very important. And I don’t think most people think about that when they do the financial stuff. Shawn (11:15): It’s not purely a financial decision. Bob (11:17): Yeah. Shawn (11:18): Wow. So thinking about how it will affect those close to you. Alright, what next, Bob? Bob (11:22): Well we got step number eight and is something bad going to happen if you don’t make this financial decision at all? Most of the time, really, there’s nothing that’s bad going to happen. In other words, is it totally a voluntary transaction that’s one that you just don’t have to do? Now think about this. We were thinking about even a big remodel, you’re remodeling to put new types of colors in your…you are going from a formica countertop to a granite countertop. Okay? Granite is much nicer. Or stone countertop, much, much nicer. Shawn (11:57): Or maybe you’re going from the white or black plastic looking appliances and you want to get all new black stainless steel. Bob (12:03): Right, exactly. Shawn (12:04): Well I guess the question then, is something bad going to happen if you don’t upgrade the appliances or you don’t upgrade the countertops? No, you just don’t get the newer looking thing or the nicer looking. Bob (12:16): But it’s an important thing to think about when you’re going to make a financial decision. In other words, you’re doing this voluntarily. No one’s forcing you to do it. And you’ve got to think about that. And I used that actually when I was talking to a realtor up there about this property. I was saying, this is a voluntary transaction, I don’t have to do this. Shawn (12:37): Yeah, there’s no real urgency. Bob (12:39): Don’t put pressure on me. I don’t have to do it. It’s voluntary. Shawn (12:42): That’s a good point. Bob (12:43): Yeah. Shawn (12:45): First Corinthians 10:23, “I have the right to do anything you say, but not everything is beneficial. I have the right to do anything, but not everything is constructive.” Bob (12:55): You picked that scripture, that’s a really good scripture to go with that one. I like that. Shawn (12:59): There’s a lot of good scriptures. I found there seems to be a lot of really good wisdom. Bob (13:02): There’s scripture for everything. You’ve got it. Shawn (13:05): Alright, so just stopping for a minute to determine is this necessary or voluntary? Is it a good idea? Alright, so step number nine, what is it Bob? Bob (13:15): Well, could it affect your long-term giving goals, especially if it’s going to put you in debt. Is that going to affect those giving goals and God wants us to be a cheerful giver and if it’s going to create a burden where you can no longer give, X that one out. Shawn (13:35): Well it’s like the live, give, owe, grow kind of thing where if you take on too much of what you owe, then it’s going to have to pull from something else. Bob (13:46): That’s right. And in this case where we were looking at that property, again, the ongoing financial burden of just the taxes, insurance, and maintenance, well we can easily get enough in rental income renting it just two or three months out of the year, especially during ski season, to pay for all that. I’ve already figured all that out there. So it wouldn’t be an additional financial burden because I’m using one piece of real estate to buy that real estate. Shawn (14:10): So at least it’s not going to negatively affect your giving goals. Bob (14:12): You’ve got it. Shawn (14:13): For this one we have 2 Corinthians 9:7, “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion for God loves a cheer giver.” So considering the effect on giving is a great way to stay grounded in what is and isn’t important. Alright, so what’s final step, Bob? Step number 10. Bob (14:32): The final step is can you “try it on?” Now, in our case we’ve been going again, we’re using that example. We’ve been going to the same place during the summers for nearly 40 years. So we’ve tried it on. Shawn (14:48): And you still like that area. Bob (14:49): We love it, especially because the weather’s so nice in June, July, and August and September compared to Texas where it’s so hot. But we’ve been able to try that on. But let’s just say somebody goes up there only one time. Shawn (15:06): And they feel like they fell in love with the area, for example. Bob (15:09): Yeah, you need to try it on more. Shawn (15:12): Or they went on one RV trip where they rented an RV for two or three days and then they decide I want to live in an RV now. Which is a little different. Bob (15:20): Yeah, it sure is, but I like at least there you’re trying the RV, okay, before you just go buy it, go rent that RV four or five times. You can rent a boat. You can borrow a boat before you go do that or a certain car. You can go rent that kind of car. I drive a Nissan Pathfinder. When we were on vacation recently, they were renting Nissan Pathfinders. You could rent one for a couple weeks to see if you like it or not before you go buy it. Shawn (15:50): It’s not a bad idea. Then if you rent it for a few weeks, then you get through that new feeling and, “Oh you know what? Oh, I don’t like the seat doesn’t come up as much as I wanted,” or, “Oh, this doesn’t have as much room to get in the back,” or something like that. Bob (16:06): Well I know your wife, my daughter, she drove our Nissan Pathfinder and she didn’t like it. It felt kind of like she was sitting lower. She wanted something where she could just sit a little higher. Shawn (16:18): And it was this weird combination that I wouldn’t have noticed. I drove it and I thought it was fine, but for her and just where she’s sitting, bringing the seat all the way up the shape of the dash is where she kind of felt like she couldn’t see over it as good. But that was something that had we just drove it one time real quick, might not have noticed. Bob (16:38): Exactly. Driving it a few times helped that. So try it on before you make that big financial decision. Shawn (16:44): And for this we have Proverbs 24:27, “Put your outdoor work in order and get your fields ready. After that, build your house.” Bob (16:52): So in the conclusion here, Shawn, I thought about this, we need to put this in some kind of a little handout because everybody needs to look at these 10 steps before making a large financial decision like buying that next new car or buying that next new home or doing that big remodel. You need to look at all these steps, you need to think about every one of them. And I think it will keep you from making an unwise financial decision. Shawn (17:20): Alright, well thanks for joining us as always, and hope this was helpful to you. God bless, and we’ll see you next time. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.

Click below to listen to Episode 216 – Goal Setting Ideas for 2025 Goal Setting Ideas for 2025 Learn about the importance of setting up clear, intentional goals that are also written down. More episodes >> Have you started setting goals and resolutions for the upcoming new year? Whether they are big or small, setting an intention for the year is a great way to start off 2025. Bob and Shawn discuss various ideas for goals for the new year, as well as the importance of writing down your new year’s resolutions. Setting clear, intentional goals that are written down can increase success rates tremendously, and Harvard business studies have shown just this. Bob and Shawn also recommend setting up categories for your new year’s resolutions, like physical, mental, relational, spiritual, financial, and even charitable goals. HOSTED BY: Bob Barber, CWS®, CKA® CO-HOST: Shawn Peters Mentioned In This Episode Christian Financial Advisors Website Bob Barber, CWS®, CKA® Shawn Peters Bible Verses In This Episode PROVERBS 16:3 Commit to the Lord whatever you do, and he will establish your plans. Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call. SCHEDULE AN APPOINTMENTDid you enjoy this episode? Sign up for email updates and never miss an episode. EPISODE TRANSCRIPT Shawn (00:00): Only about 60% of people make New Year’s resolutions or set goals, but only about 8% successfully achieve it. Welcome back to another episode of Christian Financial Perspectives. I’m Shawn Peters. This is Bob Barber, and today we’re going to be doing our annual episode that we typically do on goal setting. So these are goal setting ideas for 2025. And to start this off, we’ve got Proverbs 16:3, “Commit to the Lord, whatever you do, and he will establish your plans.” Bob (00:40): Shawn, this is one of my favorite programs. We do it at the beginning of every year. I want to start today’s program with kind of a comment or a saying that I’ve heard for many years when it comes to goal setting. And goal setting is one of my favorite things to do, and I’m a big goal setter and look at my goals constantly. But I want you to think about this question or comment. Have you heard the definition of insanity? One of those definitions is doing the same thing over and over and expecting different results. Shawn (01:16): That’s right. Bob (01:17): Now, the reason I say that for today is because if you’ve not set goals and you’re not writing them down, but you’re expecting different results, you’re not going to get them. Because life is a lot like this. As humans, we expect different results from doing the same thing repeatedly, but it’s not going to happen. Shawn (01:36): Nope, nope. What’s going to happen is the same thing that’s typically happened each time. Bob (01:41): And it’s interesting to me how some people excel in many things across many areas, while others don’t seem to excel in most anything. But yet, you could take two people with the same intelligence, the same physical attributes, same type of upbringing, and one’s going to excel over the other. And I believe a lot of it has to do with goals. Shawn (02:09): Not a promotion or anything of any particular companies or products. But I’ve heard in different media outlets that attack Elon Musk because he sets these goals and then the company doesn’t deliver on it. But what’s interesting is if you look back, there’s a lot of things that at the time people thought, “Oh, there’s no way they’re going to hit that target.” There’s no way you’re going to hit that goal. And then they hit it or exceeded it. And I think again, it comes back to that. Okay, well yeah, maybe sometimes he overshoots. But it’s a good example of he sets goals not just for himself, but he tries to set these goals for his company, big goals for his own companies. And then people are like, okay, well we have a target. Let’s try to hit that. Let’s try to hit that goal. But if you didn’t set any goals at all, well, how do you even know if you were successful or not? Bob (02:59): There’s an old saying that I’ve used for many years, and you know that what is it you aim for? Shawn (03:05): If you aim for nothing, you’ll hit it every time. Bob (03:06): Yeah, exactly. If you don’t have a target out there to hit, you’re not even going to hit it at all because you have nothing to aim for. Shawn (03:15): So I guess the question then, Bob, is do you want to hit some of your goals most of the time or do you want to always have 100% accuracy? If you want 100% accuracy, then just don’t set any goals. Bob (03:28): We’re going to point out later, I got my goals right here. Shawn (03:30): I forgot to bring mine, but I was actually really happy for this last year. I had a few things that I think maybe I was overshooting or I had that I thought, “Oh, within a year I’ll be able to hit this.” And I didn’t quite hit it, but I hit about 60% of my goals, which compared with a lot of the statistics, it is actually really good. Bob (03:52): It is. I look at mine, they’re on my mirror. I’ve got a set in my car. Shawn (03:56): What’s a mirrah? Is that the thing? You look at yourself? Bob (04:00): Somebody’s listening from north and they go, what is,,, Shawn (04:04): That’s the reflective glass that people have in… Bob (04:06): sometimes my southern accent gets me. Okay. Shawn (04:10): Alright, well, it’s a new year. 2025 is here. So let’s discuss how to make this year different. Bob (04:16): I want to say I love the mission statement of the Christian men’s fraternity that was started by Pastor Robert Lewis in Arkansas many years ago, and this is a good one. I’m going to put this one on my goals next year. It’s reject passivity, accept responsibility, lead courageously, and invest internally. I love that. I think that’s a good one to go with the goals. I just wanted to mention that because that’s part of it right there. And one of the ways to do this is to write down your goals. You’ve got to put them in front of you every single day. Shawn (04:55): And be able to see them in multiple places definitely helps as well. So most people never set solid goals for all of the different areas of their life and write them down so that they can see them. But 2025 can be different. Bob (05:11): That’s right. You got it. Shawn (05:12): And we have a formula for this. So for those of you who have not seen one of our goal setting programs before, there are a lot of different categories from spiritual to mental, physical, relationship, financial goals. Since this is Christian Financial Perspectives, we obviously want to make sure you include some of those spiritual goals, things like that. Bob (05:34): And financial. Shawn (05:35): Examples of financial goals could be giving to more worthy causes, saving more for an emergency fund. Bob (05:43): Shawn, I’m amazed at how many, even my retirees, they don’t have the emergency fund. I mean, that’s a good goal for retirees because they will end up using their old 401k rollover as an emergency fund, and that’s not what you’re supposed to do. You should have an emergency fund that’s set aside of three to six months of expenses in a local bank account, and it doesn’t have to be making a lot of interest. Shawn (06:07): If you’re not currently in retirement and you still have an income and you are looking at, “Well, should I open up this investment account or should I add to the…” okay, the question I would ask you is, “Do you currently have an emergency fund of at least six months of necessary expenses in some sort of savings account?” If the answer is yes, then you may proceed to try to answer the question of what kind of investment account you should open. If the answer is no, don’t even consider putting money in that investment account. Get your emergency fund up to at least that six months. I would say 12 months on the high side then, okay, now if you have extra each month, now you can look at different investment options. Bob (06:47): Another good example would be just getting out of debt. I mean, get rid of that credit card debt this year and next beyond that, once you get rid of the credit card debt, get rid of the auto debt. I mean, when you think about it, automobile is depreciating and at the same time you’re paying interest. I mean, you’re just going downhill with that. And then a very big goal for a lot of people about debt is getting rid of mortgage debt eventually. And that’s nearly an impossible goal, but it’s not impossible, but it’s hard to do because homes cost so much today. Another one… Shawn (07:20): Investing more for the future, which again, you’ll notice that we have giving than your emergency saving for emergency fund, getting out of debt. Now we get into the investing side of it, which I would argue if maybe you have a car loan and most people have a mortgage, it’s okay if you’re obviously starting to invest, but that credit card, get rid of that balance. If you’re carrying a balance, get rid of that because the fees on that are just so high. If you don’t have your emergency fund and you’ve got a bunch of credit card debt you’re trying to pay down, you shouldn’t be looking at putting money into an investment account. Bob (07:51): You should get rid of that first. Shawn (07:51): And the final one. Bob (07:53): Now, if you have a 401k where they’re going to match you up to 6%, put $50 in it. Shawn (07:58): And that would be the exception. You don’t move out on that company match. Bob (08:02): The last one that we’re mentioning as far as financial goals, but it’s really part of all of it, is getting a complete financial plan in place, and that should be one of your main goals financially for 2025. So we’re going to give a couple more examples, and we’re not going to get into examples for all of these,. Shawn (08:21): Like spiritual goals. Bob (08:22): Yeah. Shawn (08:22): Okay. So some spiritual goals could be enrolling in a small group Bible study, spending more time alone with God in prayer and meditation, getting back involved in your local church if you’re not in one, and reading the Bible daily. And I would say for the prayer, meditation, and reading the Bible daily, our Kingdom Advisors group that we were in recently, Ron Blue was talking on the video and he was talking to, I think it was a doctor or something who just said, “I just don’t have any time. I’m so busy.” And Ron asked him this many years ago, Ron asked him, “Well, what are you doing in the morning before you wake up?” He said, “Sleeping.” He goes, “Okay, so sleep 10 minutes less. Start there.” Bob (08:59): Yeah, that’s true. That’s true. It’s interesting that one of these goals is getting back involved into your local church. Do you know, Shawn, there’s still a very large percentage of people that have not gone back to church since Covid? Shawn (09:10): Yeah. Bob (09:11): They got out and they never got back in that habit. And I think that’s a great one. Another example for 2025, of course, this is the one that while all the gyms are so busy and about to be very, very busy, physical goals, we’re coming out with this on the last day of the year. First day of the year is the physical goals. And some of it can be as simple as just taking a daily walk. I’m amazed at how many people don’t exercise today. So just a simple start with 5 minutes and 10 minutes. Shawn (09:39): And that one would cover, as some of the kids say, “Go out and touch grass.” Bob (09:44): Yeah. Shawn (09:45): Or concrete. If you don’t have a whole lot of grass where you’re at, you can walk. Bob (09:48): On the grass versus a computer. iPhone. Okay, do something aerobic three to five times a week. I put this one, the new one in here this year, playing pickleball three times a week because pickleball is so big. Shawn (10:01): Yeah, I’m not into pickleball yet. Bob (10:03): Golly. It’s big. And some people really like the cream you, by the way. Shawn (10:08): Another one could be weightlifting, maybe weightlift two or three times a week. You know what, if you don’t get out other than maybe the daily walk, you don’t go to a gym, do a daily walk and just overall, eat healthier, balanced meals. Bob (10:20): That’s a really good goal. That’s a really good goal. Especially after all the Christmas holidays and all that junk food. So there’s other areas, we’re not going to give a lot of examples, but there’s relationship goals. This is one that I have. There’s professional goals. There’s the charitable and giving goals, how you want to help charities, not just financial, but giving of your time, talents, and treasures. But the main thing is with these goals is that you’ve got to write them down on a piece of paper and look at them every day of the year. Now those of you that are listening, you’re not going to be able to see this, but those of you you’re watching on YouTube, this is what I do. This is about the size of it right here. These are my goals. I I write them down very small, like 10 point, and I’ve got spiritually, physically, medically, all of them. Shawn (11:09): You also, Bob, you’ve gotten a little bit longer on your stuff, but one of the things that I would encourage our viewers and listeners for each of these categories, don’t try to pick five things for every category. I’m going to work out this much. I’m going to eat this. I’m going to do that. Maybe just for each of the main categories, pick one goal so that way it’s easier to write that down. And you have in each of these main categories, you’ve got something you can try, especially if this is your first time trying to do this method. You don’t have to do everything all at once this yea. For physical, pick one goal that you can stick with. For spiritual, pick one goal. For mental, for work. Keep it simple. Now Bob’s a little more advanced. He’s got multiple…he’s been doing it for a long time. Bob (11:53): And I put one this morning, I saw it. I have one on my mirror in my closet where I get dressed. So when I’m putting on my shirt and looking in the mirror, making sure I’ve got it on right, I’ve got the buttons right. I see my goals. When I brush my teeth, my goals are right there, again, by my mirror in front of my sink. When I get in my car, there are my goals. When I open up my desk drawer, there are my goals. I’m seeing them all the time all year long. Shawn (12:24): Which is extremely helpful. Bob (12:25): It really is helpful. Shawn (12:27): We’re going to hit you with some numbers as we get closer to the end of this. Research has shown that only about 60% of people make New Year’s resolutions or set your goals, but only about 8% successfully achieve them. A famous Harvard business study, business school study, from years ago found that 83% of people do not have any clearly defined goals. And of the 17% that did, only 3% of them write them down. Bob (12:57): You hear that? Out of a hundred people? Shawn (12:58): Only 3%, only 3% that even had goals wrote them down. Bob (13:04): Does that mean if you’re listening to us, only 3% is going to write? I hope it’s higher than that. Shawn (13:08): Well, that’s obviously from when they did the study. And so hopefully, we’ll have a higher percentage. But when Harvard concluded the study, the 3% that had written their goals down, this is some of the interesting facts on this. So that 3% that wrote their goals down, they were earning on average 10 times more in income and tended to be in better health and have happier marriages compared to the other 97%. Bob (13:33): Wow. That’s the reason why it’s so important to write those goals down. It’s like a blueprint in looking at it. Shawn (13:41): Put copies all over, like Bob said, closet, mirror, from when you’re brushing your teeth in the car, in your desk drawer or something like that. Just have it in multiple places once you set it up. But the overall form for this, we have spiritually and then you list, okay, well what’s the goal that you want to accomplish physically, financially, relationally, mentally, professionally, and charitably? Bob (14:06): And there you go. We hope that helps you a lot. I know Jenna is probably flashing one of those up on the screen where you can see that goal form. If you want a copy of the goal form, give us a call. And we want to help you to have a good prosperous 2025 in all areas of your life, not just financial, but relationally and spiritually and physically, all those different areas of your life. We hope that you have a good 2025. We’re looking forward to it. I’m looking forward to it. And if you want to give us a call with any help that you may need with this or any other thing, give us a call at 830-609-6986. You can also text that number as well, or find us on the internet www.christianfinancialadvisors.com. Shawn (14:48): And as always, you can always hit us up in the comment section as well. So thank you so much for joining us and God bless. [DISCLOSURES] * Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.