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 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 »