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Savings Stewardship Theology Within this section, you will find a selection of papers regarding my thoughts and beliefs on savings, stewardship and socialism. To better assist you in finding a particular article, they are listed below in the order in which they appear: (1) Retirement Truth (2) 2009 - My Investment Thinking Perspective . . . (3) My Forthright Savings Theology (4) 2008 - Learning From The Year That Was (5) Conservatism and Christianity (6) Socialism's False Promises of Better Tomorrows (7) Discussing Socialism (1) Retirement Truth This is a true story you need to read, know, do and share A 49 year old pastor has an awakening He called asking, “what’s the bottom line? What must I do … for a real retirement? What will it cost? Can I afford it? How? I know what the Bible says in Timothy about the man that does not make provisions for his family.” He admitted he’s getting older. He has Bible-revealed Christian responsibility. President Obama’s redistributing the wealth of others is theologically and personally offensive to him. But, that wasn’t all. About 10 to 12 years ago his church put $2,000 into a mutual fund for him (probably when he opted out of Social Security). The current report shows that the $2,000 has now ‘grown’ to $1,200! His home is nearly paid for and he makes $35,000 a year, but, he has no savings, no retirement … even though he has been reading my papers for years. Further, he realizes time is very important. He asked again that I explain what he could do. I was clear, frank and factual. We conversed for about an hour. I related how I see the matter differently from 99% of insurance men and financial advisors, even those who are members in Christian churches. Thus, I stated what I believed we could and should do and how: (1)In retirement he needs an income equal to what he earns now just like if he died his wife would have the same need: $35,000 a year, or simply $3,000 monthly. That’s why he should now first have a minimum $150,000 of my recommended term Life insurance with a minimum 15 year level premium. First things first. (2)$3,000 monthly requires a minimum sum of $150,000 in productive investments. This means it is earning an average minimum of 3% monthly. (We made 9% in June 2009.) (3)Thinking that he likely has another 20 years to preach and earn an income, I recommended we be conservative and safer. Roll the $1,200 remaining into my recommended Roth IRA and plan on saving $100 monthly for 15 years with my anticipated but never-guaranteed nor promised 30% annual returns. All investing has risk, but no investing is more assured failure! We discussed the devastating, crippling and dishonest effects of President Obama’s and the Democrat’s Nationalization, tyrannical government and inflation on cash, cash savings, bonds, annuities, wages and the like. Thus, the urgent necessity of a God-blessed and prompt return to limited government under the Constitution, sound money, each man doing righteously and we rightly expecting our elected officials doing and living righteously under God and His Revelation. The Socialist revolution-racketeering by our politicians is evil and to be opposed. We likewise discussed that I did not recommend him refinancing his home to put large funds into his new retirement plan. This was his thinking to jump-start his retirement. My position: he is too young. He has time and can build a retirement. He will have term life insurance. He needs a home. Thus, the added risk was unacceptable to me under his circumstances. I did say that those who are maybe 60 and older, no income except Social Security and have substantial but unproductive real estate: home, ranch, etc., could refinance 20% of the ‘value’ with the funds placed in my recommended fund for useable income and payment of the 30 year loan. ●My thinking and estimation (not guarantees or promises): Each $100,000 would be expected to earn $24,000 of income annually. This would thus provide spendable income of about $17,200 and $6,800 to pay the 5.5% annual loan payments. Thus, true hope with obedience and faith in God’s Word. (2) 2009 - My Investment Thinking Perspective … First, let’s look at basic facts of money and honest expectations. Up front: the clear and defined first purpose of a life insurance policy or retirement program is to replace one’s income … thus morally and faithfully providing for the family. Since an average family’s annual income is about $45,000 or $3,750 monthly, check the chart to see how much money and what returns are factually required to reasonably and morally provide your replacement income without immorally voting for your politician to take your neighbors’ funds for your family’s benefit. Compounded Annual Investment growth of $1,200 at shown annual returns
The chart makes my conclusion: The Industry accepted average annual returns of 3% to 11% do not work. Government guarantees and safe assurances are misleading, blinding and futile. Thus, the real guarantee of 5 to 11% returns is that you are assured to need hand outs from your liberal politician if you settle for the low returns. The Bible is specific: it is a believer’s duty to make provisions for his family. In fact it goes on to strongly state, such a person failing to make provisions has denied the faith and is worse than an infidel! See 1Tim.5:8 Thus my commitment to meaningful and knowledgeable family stewardship using life insurance for the short term and productive investing for the longer term and later years plus warn of the continuing destructive consequences of inflation. Most financial advisors refuse to forthrightly address these known facts, circumstances and such pointed but basic questions. But, ignoring the truth and issues does not avoid adverse consequences. Wisdom, light, truth, righteousness, faith, and equity are all elements to be addressed and understood by both the investor and the investment advisor. Details and consistency in God’s orderly world: While family incomes vary, a family annual income of about $45,000 ($3,750 monthly) is usually about average except for a young married couple, a family persecuted or a family with significant past problems: medical, irresponsibility, lacking in wisdom, reckless …. Likewise, most families that seek to retire usually have expenses/expenditures in later years that are nearly equal to or even more than what they were making just before retirement or age 70. Thus, the frank, clear questions: ● What sum does it take to receive the $3,750 of minimum monthly income? ● How much must one invest annually to build that sum? And, ● How much can one withdraw monthly at retirement at 70 with the expectation that he/she may live to age 96 with honorable income… or another 20 to 30 years? Does anyone know? It is most important to remember, with 5% interest, it requires $900,000 in savings to receive the $45,000 of annual payout. The above chart identifies several average annual rates of return to give the best perspective of likely consequences for understanding choices and consistent practices. Consistent practices means that if we expect 5% returns while building the sum, then we are only honest and consistent if we frankly accept such expected returns after 20 years and also use the same maximum 5% returns for calculating our expected needs and returns after retiring. Secondly, I recommend a maximum monthly withdrawal of 75% of the monthly gains to allow offsetting inflation. Thus, if we gain 4% in a month, I only recommend a 3% withdrawal. Because the market is volatile and advisor gains likewise, I encourage a sum of twice the necessary amount as a prudent and safe position. Thus, for a $3,750 monthly withdrawal, a principal sum of $125,000 is the minimum required. The always usual and proper alerts: ● Destruction of paper money’s buying power (Inflation) is very real. With just 3 1/2 % inflation annually, 50% of the buying power is stolen in 20 years. ●Past performance does not assure future like performance. ●Financial goals and expectations are not promises and cannot be promised by man. ●There is risk of loss but expected maximum returns of 11% guarantee failure with growing dependence on immoral, Socialist politicians for takings from your neighbors. In conclusion, the born-twice and discipled believer’s faith is in the Creator God and His written Word. Taught to make provisions, we faithfully seek to do that with the honorable and moral means at hand. Our expectation of the government is of good order, moral laws rewarding and protecting the good under God and in the light of His Word that we may lead a quiet and peaceable life in all godliness and honesty.1Tim.2:1,2 We understand that trusting government for our daily bread is idolatry and the takings from our neighbors for redistribution is evil, covetousness and blind. In Having said all this, I proceed to serve those who prayerfully desire my services. Likewise, I charge the agreed upon monthly fee of .0013 which is approximately 1/12 of the 1½% annual fee of the sums in my care believing that a laborer is worthy of his hire. I identified this labor as the Psalm 23 Program because Psalm 23 is my bold and frank declaration of God’s mercy, grace and care for each of His children.
(3) My Forthright Savings Theology
Some pictures are worth more than a thousand words; such are these 2 charts. Most financial advisors and insurance people agree and concur that average annual returns will not and cannot exceed 5 to 11%. Thus, this first chart shows the factual sums required to produce the needed amount of income with specific low rates of return. Multiplying $900,000 by 5% gives the needed/ expected $45,000. So far, no problem, just a matter of known arithmetic like putting a 5 hole Ford spare tire on the Ford. But annual Savings required to build the necessary Principal Provisions…
Even without this second picture, most already realize that the required $450,000 to $900,000 are unlikely savings. The chart just gives the specific savings details. However, returns of 20 and 30% do give a glimmer of hope. So, the question: is 20 to 30% possible? But clearly, saving $26,000 annually isn’t possible! Nor is saving over $7,000 annually … for most. From extensive study and over years of experience and efforts, I believe 20 to 30% gains are very likely. Yes! Not a promise, not a guarantee, but likely. Factually, 5% of Americans are like Limbaugh with millions. They can ‘afford’ 5% returns since they already have $20 million or so in savings[1]. @ 5%, it will provide a nice $1 million of annual income. And $900,000 will provide the needed annual $45,000 before taxes and inflation. But, just 3.5% annual inflation devalues the paper dollar by 50% in 20 years. Thus, the grim reality of 5 to 10% returns even without considering taxes and inflation. The unstated but reality guarantee: none will arrive, not one. Check and ponder the figures again. Saving with low returns is factually futile; responsible, probable and likely arriving is impossible. Vainly accepting the worldly experts with letters after their names, their 5 to 11% maximum gains, usual flashy brochures and products, emotional assurances and rhetoric, the reality and future of the usual middle class family is still failure, dependence, more government and the need for Socialism! Thus, just as I do not sell $50,000 of whole life insurance for a dad to provide for a family ($50,000 won’t work and it is too expensive), I recommend $250,000 to $500,000 of cheap 10 to 30 year term. So, neither do I sell or recommend savings that are not likely to produce at least 20 to 30% of annual return. Believing that 20 to 30% is likely, I proceed to develop my Trend Analysis Program seeking to avoid and minimize declines and gain 2 to 4% monthly. As with all investments, no promises, but at least you are not trying to put a 6 hole Chevy wheel on your 5 hole Ford that will never work!
[1] I have no idea if Limbaugh has more or less than $20 million. This is an illustration. Below is a 2008 chart of the NDX100 daily changes with my marks and notations of likely market changes that could have guided my investment decisions … derived from other technical analyses sources. Remember hindsight is not the same as prognosis. However, the technical analyses factors do give such indications but to be used with cautions and experience. Following the traditional and usual Long Only, minimum trading investment model and procedures, an approximate net loss of 41.5% would have been experienced. Using Trend Analysis showing possible market change points such as the above with Dynamic funds that double the positive or negative market, assuming the market changes would have been done, the below results would have theoretically resulted.
Relying on the Trend Analysis, only 6 trades would have been consummated. But note the temporary volatility within each cycle and the net theoretical gains of about 143%. Plain arithmetic demonstrates that the usual industry accepted maximum average annual 11% gains do not and cannot provide a meaningful retirement sum for 90% of My goal and purpose is to provide net annual gains in excess of 30% annually. I have not yet accomplished such. But, I believe it is not only necessary for families but doable. Remember the usual required and proper cautions: Past performance does not assure like future performance; Goals and purposes are not promises; There is risk: money, capital and, principal have been and can be lost. God is faithful. (5) Conservatism and Christianity A growing multitude of church members feel and claim there are no definable moral and intellectual relationships, connections or standards between Christianity[1] and Conservatism[2]! But, do note, these are the same people who also make a multitude of self-contradictory claims that also contradict any meaningful claim of Bible-believing Christian conversion. Beware the person, by whatever claim or name, who asserts there is no truth or none know truth! Such seeming humbleness is nothing less than self-idolatry and an arrogant attack against the Bible. Several major twisted, self-exposing claims are: (1)nobody knows truth if there is truth; (2)none can judge another’s stated beliefs or deeds; (3)abortion, fornication and sodomy are private matters; (4)all men are born good; (5)education (meaning anti-Christian education) self-esteem and stuff are man’s greatest needs; (6)civil government is the ultimate law giver, (7)the voice of the people is the voice of god … and so on! Biblical Christianity and Conservatism are parts of the whole. Read the footnotes. Jesus told Nicodemus, a notable leader of the religious Jews, that he had to be born again. Christianity is supernatural and preaches, stands and depends on God’s written Word and unique, merciful and gracious supernatural act to deliver men from their darkness of sin, faithlessness, shame, maturity in evil and finally, their eternal righteous damning judgment … except one look to Jesus! Wicked, twisted, evil sinners do not need recovery; they need the Good News of redemption and the second birth. It is these unchanging, unequivocal, conservative doctrines of the Bible and absolute necessity of God’s gracious intervention that liberals and Socialists, by whatever many names and disguises in and out of the organized church, rail and rant against. Many foolishly rant: who is God to make the rules, particularly the rules that their thoughts, plans and deeds habitually and naturally violate! But such is only fallen human nature! Sinners sin because they are by nature sinners just as dogs bark because they are dogs! But, such revealed marvelous change only God can and does effect and then only in submission to and in Christ via hearing the Gospel. The result of every God-done conversion is a new holy person! Inwardly and outwardly, the believer has been forever changed, forever forgiven, forever redeemed, forever adopted! No longer is God perceived as a bully and the enemy. No longer His Word an offense and stumbling stone! No longer His people strange and quaint! No longer is the 6 days of creation only an option. Believers love their God’s Word though frequently reproving, rebuking and correcting. It is our delight, our chosen delight! It is Light, Wisdom, Salvation, joy, our true hope, our charter of life and freedom in Jesus! It’s true that many special issue conservatives are not Christians; but all Christians by the second birth are reborn conservative! Only the novice, the misguided and ineligible for leadership aren’t. While [1] As a twice-born traditional believer, I accept literal translations of the Bible as reliable translations: authoritative and true standards of the Christian faith to know, believe and live by. We know it is God speaking. [2] ‘Conservative’, according to the dictionary Webster’s Seventh New Collegiate Dictionary ©1971, “Tending or disposed to maintain existing views, conditions or institutions.” Capitalism is based on ‘You shall not steal’ and thus, private property.
(6) Socialism’s False Promises of Better Tomorrows This is not a nice paper. But then, Socialism is not a nice system; it is a delusion and nightmare. While claiming empathy for mankind and the noble goal of lifting its citizens to higher economic levels, it factually emerges as a living hell: a cesspool of fear, corruption and growing misery for the many while proclaiming good will to all. Factually ponder the manifest brutalities and gross failures of the past Consider well that Socialism is the complex Politics, Economics, Legislation and Jurisprudence of Atheism. Socialism uses many aliases and otherwise nice-sounding names: Liberalism, Progressivism, Humanism and Marxism. In theory and practice it matures into nothing less than the deceitful murderous dictatorship of the few. It spawns and builds upon class envy, class warfare, lies, deception and false promises for votes. Socialism focuses on and promises equality for the claimed downtrodden by the state’s control and redistribution of wealth. Suppressing truth and righteousness while claiming unlimited wisdom and exercising unrestrained power, Socialism evilly and destructively denies and criminalizes life, liberty and property for all who disagree. Socialists are willfully blind to the reality that government only redistributes wealth; government does not build wealth. By whatever name, claim or scheme, they continuously seek to regulate and redistribute other people’s property and affairs. But, every tax, every control and every regulation is a hindrance and impediment: a cost to productivity and the common welfare. Good government is limited with taxes few. Our educated Christian forefathers who bravely ventured to Today, not only is European civilization no longer Christian-religious but here in Christianity has not failed
(7) Discussing Socialism Contrary to usual church member opinions and beliefs that Socialism should not be discussed nor commented on in the pulpit, Socialism is a major Christian Biblical issue. It’s about right vs. wrong, good vs. evil, God’s will done vs. man’s arrogance. Socialism is not a dirty word but it is a nasty and immoral system and belief. To date, in Soberly consider the open Socialist planks in America in light of the 10 Commandments and the Great Commission: not just legalized murder of babies, but legalized thefts (Redistribution of income/wealth by government), covetousness, adultery, fornication, deceit, hate, unforgiveness, sloth and sodomy, idolization of government, more intrusive government, dishonest political promises, suppression of the Gospel not to mention slander and the supression of truth and facts by the media. More, consider further the growing numbers of in-name-only Christians and Christian organizations that by their other words and deeds deny Christ and the Bible except what they like at any given moment. These include the multitudes of usual preacher’s and lukewarm churchmember proclamations and acceptances of (1) Evolution’s random chance and circumstance vs. Creation, (2) there is no Holy God Who punishes evil and rewards good, (3) the dogma of various Psychological theories excusing sin rather than demanding repentance, faith, rebirth and glad discipleship, (4) the phenomena and desire for the Rick Warren/Robert Schuller church growth success programs opposing teaching Christian doctrine and (5) the Emerging Church self-confusing doctrine asserting there is no truth, the church is merely seeking and preachers are not needed! Remember, calling evil good doesn’t change God. Where there is no light, the people suffer. Without fear of factual contradiction, all history demonstrates that Socialism is a blight on any people. Note well the failures and miseries of the huge former Now, practically speaking, the Muslim radical wants to die killing unbelievers, Socialists seek glory with total kingdom power to control and govern according to their natural darkness and the dead-uncommitted-to-anyone/anything-beyond-their-narcissist-self just wants to be left alone. But, what says the converted and discipled Christian? As briefly stated in my paper: Socialism’s Illusions of Better Tomorrows, The Creator God has not left us alone, in darkness or without merciful, gracious and effective answers! As of old times, God has spoken to His people. It is the old time, ever fresh traditional Biblical Christianity! Exclusive but inclusive, dogmatic but inviting, required of all but often refused; ever holy and supernatural! Thus, obedience to the Great Commission was never more important. As we go, we are to be making disciples of all nations … baptizing them … teaching them to observe all things He has commanded. Why? He says so and all power is given unto Him.
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