March 24, 2009
Most financial advisors lead people to produce financial plans that are fraught with risk.
Are you gambling with your financial security?
When it comes to “Protection,” such as insurance, financial advisors typically choose to offer plans in which you end up paying the highest premiums for the lowest benefit – exactly as the insurance companies like it. Using these plans people usually expose themselves to way too much risk in every single area of their insurance. One’s insurance should be a solid foundation that protects your financial house from ruin. Most people I first meet think they have their’s well taken care of, but as they become more educated end up changing almost every single decision they had previously made. Read the rest of this entry »
March 23, 2009
Almost all financial advisors recommend that you invest your money in the stock and bond market, usually through mutual funds, although it could be through wrap accounts, managed accounts, or in individual stocks and bonds.
The emotional rollercoaster of the stock market
All of these options are subject to the schizophrenic, emotional roller coaster of the markets. As you know well, the value of your accounts can go down because of something that has nothing to do with the value of the underlying company. And these negative years hurt far more than the positive years help. So no one does as well as the average return of the investment they are investing in.
Why expose yourself to these risks?
We here at Kingdom Calling are hesitant to take on any of this market risk. Many of our clients pulled money out of the stock market before the serious crash began as they were being educated in stewardship. Some have just recently started looking at the market, but with new eyes. Read the rest of this entry »
March 21, 2009
Financial advisors encourage you to be miserly and have the smallest possible impact on the world. This is the same financial advice given in most churches, either because that advice is coming from lay people or from church members who are practicing “traditional financial planning.” And for a lot of folks it’s not horrible advice, because most Americans, and most Christians for that matter, have a terrible spending problem. So the advice is to scrimp and save.
What has your money done for you lately?
Now, saving is important. And not wasting your money frivolously is important. But if that’s where most of your focus goes, you can’t focus on being more productive. If such frivolous spending is a problem, then it needs to be addressed (and sometimes we spend considerable time with clients on this), but once there’s a reasonable amount of discipline here, there is far more that can be accomplished by focusing on producing more with what we have.
So where financial advisors encourage hoarding, Kingdom Calling focuses on cash flow, so your assets can actually send you money instead of giving you only paper gains. Think about it: you can’t eat a paper gain, but you can definitely be hurt by a paper loss. Read the rest of this entry »
March 20, 2009
If you’ve been reading this blog for some time, you may remember me asking the following questions:
Are you in control of your money?
1)Does a bank, or other financial institution want all of your money or just some of it?
2)When you make more money in the future, do they want that too?
3)Do they want to give your money back to you soon or a long time from now?
4)When they do give it back, do they want to give it back all at once or over a long period of time?
Do you remember, or know the answers? Read the rest of this entry »
March 19, 2009
My years as a traditional financial advisor, before I questioned the status quo and began focusing on stewardship, taught me a lot. One of the most salient things I gleaned in those years was that fact that your standard financial advisor can’t, over time, really help you out-perform the market. But they may well help you under-perform the market. In fact that outcome is far more likely.
Do you feel like you're not going to make your dreams a reality?
I also realized that when you’ve acquired “enough” assets to reach your current “goals,” financial advisors will routinely encourage you to be less efficient moving forward. They won’t tell you this, of course, but that’s typically what their recommended course of action “says.” So one of the great products that a relationship with a financial advisor can offer you – is a shiny new glass ceiling for you, your money and your dreams. Read the rest of this entry »
March 18, 2009
I feel sorry for most of the common people I hear about who have lost wealth, lost their way, or both in the financial storm we’re currently weathering.
You are your best ally
“Why cry for those whose fault it is?” I’ve been asked. Certainly these people were at fault.
One can throw blame upon many right now, and that’s not my goal. What’s more important is what has been lost. And I’m not talking about money. That’s easy enough to get back. The worst thing that happened to those who followed the direction of a financial advisor to their present state, is their forfeit of power and self-direction.
This forfeit occurred the first time money and trust were handed to a financial advisor. Which is why the FA/client model is such a bad idea. It teaches you to follow others and their direction, not you and yours. Read the rest of this entry »
March 17, 2009
Kingdom Calling cannot and does not try to predict the future.
Trying to predict the financial future can be misleading
If you’re working with a financial advisor that does, it’s probably time for you to question your direction.
Instead, Kingdom Calling tries to plan for every contingency while focusing on maximizing the efficiency of your plan. By doing so, we are able, in most cases, to grow your wealth far beyond what any financial advisor considers possible.
Kingdom Calling focuses on Cash Flow and Velocity, as opposed to Hoarding. In doing so, we employ the same effective growth strategy employed by the wealthy and most successful financial firms (those who practice sound principles), while simultaneously staying true to the word of God.
Financial planning is really quite simple: plug-in an assumed rate of return, inflation percentage, number of years until your retirement or goal, and an assumed amount of money you will “need” at that time. Then leather-bind the 200 page plan so it looks weighty, important and worth the price.
The problem with this method? Read the rest of this entry »