Crisis to Wealth & Worth
January 5, 2017
Big Picture Thinking
Your present circumstance, even though unwanted is an opportunity to consider WHAT REALLY MATTERS to you.
Yes, you are moving forward tracking your expenses and getting out of debt. Eventually you’ll be putting money aside. Do you want greater motivation? Consider what you value.
What are your long term goals?
Philanthropy – Serving – Traveling – Family Needs – Education
Knowing what is important to you motivates you to start putting even a little money aside to reach your goals.
1. Pay God and yourself first.
Then modify your life spending for the rest.
Proverbs 13:11 “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”
2. Choose wisely where to deposit what you save.
Deposit only in what you understand. After all, you are the STEWARD of this for God. Oversee, keep tabs, and know what is happening. No one will look out for your best interests like you will. Review program 2 for places to invest your money.
Ecclesiastes 11:2 “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.”
3. Choose a financial advisor carefully.
Here are questions we need to ask.
How, and how much are you paid? Fee based or percent of portfolio
What are your credentials? Because someone has knowledge of personal finance does not mean they are ethical or have integrity. Read here the Red Flags for Financial Fraud. (link)
- Then remember to:
- be cautious in choosing a friend or relative
- never commit to someone who talks down to you
- require that they get previous approval from you for moving money
- consider a fee based CFP while getting started
- ask for names of clients with circumstances similar to yours that you may contact.
Tell your money where to go or you’ll wonder where it went.
4. Rebuild on purpose.
I Timothy 5:8 Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.
Estate planning is a loving act. Wills and Trusts are your tools to direct your wealth to those you love.
If you don’t have a will or trust, someone you do not know (your state and judges) will determine where your assets go. They will determine who will rear your children if they are under age. They do not share your values and no provision will be made for the organizations you love as well.
Having no will requires your assets to go through probate–expensive and time consuming.
Will: A document, also known as a last will and testament, which directs the transfer of a decedent’s property to others, often naming an executor to administer the decedent’s estate.
Trust: A document which establishes a trust to which you can transfer property, naming a trustee who distributes the property in accordance with your instructions in the trust, after you die.
Consider giving while you are living so you know where its going.
$14,000.00 approximately can be given to a family member per year.
Talk about your wishes and your goals with family members. It may be a bit difficult to get started, but is a loving way to care for them later on in their time of loss.
You are on an exciting and important journey. Your prayers for wisdom will be answered.
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.
Red Flags of Financial Fraud
Definition: wrongful or criminal deception intended to result in financial or personal gain: a person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities:
“You must act ‘now’ or the offer won’t be good.”
If an “opportunity” appears too good to be true, it probably is.
Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes.
Be careful of any investment opportunity that makes exaggerated earnings claims.
Exercise due diligence in selecting investments and the people with whom you invest, in other words, do your homework before investing your money.
Consult an unbiased third party—like an unconnected broker or licensed financial advisor—before investing.
Get advice from a variety of resources, not just friends and family.
Affinity fraud is a form of investment fraud in which the fraudster preys upon members of identifiable groups, such as religious or ethnic communities, language minorities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or successfully pretend to be – members of the group.
Fleecing the flock is a common description for swindling people who trust you.
Churches and religious affiliation groups are not exempt from those affinity fraud folks.
Widows are especially vulnerable in their time of grief. Many lack confidence in their financial know how and relinquish decisions to those who do not have their best interests at heart.