The. Stewardship. Lifestyle. Seminar. Applying God s Word to Everyday Life SAMPLE OF OUR 58 PAGE WORKBOOK

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1 The Stewardship Lifestyle Seminar Applying God s Word to Everyday Life

2 What s a Christian Worldview? As Christian Financial Advisors we strive to use the Scriptures to help our families make smart and godly choices. This relates to their marriage, children, tax and estate planning and all areas of their financial lives. What do we base our choices and decisions on? Many of us follow the examples or leadership of others. We are influenced by music, television, movies and friends. A recent nationwide survey completed by the Barna Research Group determined that only 9 percent of born- again believers in Americans had a biblical worldview. Barna s survey also connected an individual s worldview with his or her moral beliefs and actions. Barna says, Although most people own a Bible and know some of its content, our research found that most Americans have little idea how to integrate core biblical principles to form a unified and meaningful response to the challenges and opportunities of life. 1. WHAT S A WORLDVIEW? Whether conscious or subconscious, every person has some type of worldview. A personal worldview is a combination of all you believe to be true, and what you believe becomes the driving force behind every emotion, decision and action. Therefore, it affects your response to every area of life: from philosophy to science, theology and anthropology to economics, law, politics, art and social order everything. Someone with a biblical worldview believes his primary reason for existence is to love and serve God. For example, let s suppose you have bought the idea that beauty is in the eye of the beholder (secular relative truth) as opposed to beauty as defined by God s purity and creativity (absolute truth). Then any art piece, no matter how vulgar or abstract, would be considered art, a creation of beauty. 2. WHAT S A BIBLICAL WORLDVIEW? A biblical worldview is based on the infallible Word of God. When you believe the Bible is entirely true, then you allow it to be the foundation of everything you say and do. Do you have a biblical worldview? Answer the following questions, based on claims found in the Bible and which George Barna used in his survey: Do absolute moral truths exist? Is absolute truth defined by the Bible? Did Jesus Christ live a sinless life? Is God the all-powerful and all-knowing Creator of the universe, and does He still rule it today? Is salvation a gift from God that cannot be earned? Is Satan real? Does a Christian have a responsibility to share his or her faith in Christ with other people? Is the Bible accurate in all of its teachings? Did you answer yes to these? Only 9 percent of born- again believers did. But what s more important than your yes to these questions is whether your life shows it. Granted, we are all sinners and fall short, but most of our gut reactions will reflect what we deep-down, honest-to-goodness believe to be real and true. (continued on inside back cover) 1

3 The Truth About Wealth The Apostle Paul told Pastor Timothy to Command those who are rich in this present age not to be haughty, nor to trust in uncertain riches but in the living God, who gives us richly all things to enjoy 1 Timothy 6:17 When Jesus said, Do not lay up for yourselves treasures on earth: (Matthew 6:19), the term lay up did not simply speak of having possessions, but of your possessions having you. Lay up could be better translated hoard or stockpile. Jesus was not saying it was wrong to have things. He was warning against becoming materialistic letting things become more important than God. God created us to love people and use things, but a materialist loves things and uses people. There is nothing wrong with having possessions and a successful career. The apostle Paul wrote, Command those who are rich in this present age not to be haughty, nor to trust in uncertain riches but in the living God, who gives us richly all things to enjoy (1 Timothy 6:17). God can bless a person. In fact, we read in the Bible of those who had wealth, such as Abraham, Job, David, Joseph of Arimathea, Mary, and Barnabas. Jesus did not extol poverty as some great virtue. In fact, only one time did He tell someone the rich young ruler to sell his possessions and give to the poor. I think it was because that man was possessed by his possessions. Because when Jesus said, If you want to be perfect, go, sell what you have and give to the poor, and you will have treasure in heaven; and come, follow me (Matthew 19:21), the Bible says that he went away sorrowful. It was a test to see weather God was more important to him than his things. Money is not the root of all evil; the love of it is. The problem with wealth is not in having it. It is how we get it. It is how we guard it. And it is how we give it. What will be your legacy? Will you be known as a wise and generous person or a worrier, a hoarder afraid of not having enough thus trusting in your wealth? It s so easy and natural to begin trusting in the resources you have accumulated over the years. We need to be reminded to focus our love, time and attention on our God and Savior rather than our gold, silver, house, toys and trinkets. While we protect and value our stuff we understand it is God who is in control, not the political leaders, terrorists, governments, etc. Life is choices; choices have consequences, make the right choice! Choose to make a difference. The LIFE Financial Group, Inc. Serving the Christian Community Since

4 Table of Contents What is a Christian or Biblical World View?... Inside Cover (front & back) Sunday School A Biblical Call to Proactive Parenting...5 Four Quarter Method of Stewardship...8 The Surprise Package Company Sunday Morning Worship: Haggai Priorities from a Biblical World View Sunday Afternoon Workshop Cash-Flow, Budgeting and Debt Elimination Creating a Spending Plan that Works Debt Elimination...19 Sunday evening Worship: 1 Timothy A Biblical Call to Wise Stewardship Monday evening Workshop Financial, Tax and Retirement Planning Benefits of Starting Early (Help Your Grandchildren?) Key Strategies of Investing Rationale for Owning Gold Planning for that BIG Expense Affording Retirement Sample Cash Flow Worksheet Avoiding Costly and Dangerous Mistakes in Retirement (Optional Sr. Luncheon) Tuesday evening Workshop Legacy & Estate Planning What Makes an Estate Plan Christian? Estate Planning with a Biblical World View Personal Review Meetings (Monday and Tuesday) Links to Download Various Forms Speaker Bio Copyright 2012 by The Life Financial Group, Inc. All rights reserved. 2 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

5 The Stewardship Lifestyle Seminar To Worship and Glorify God through the Wise use of our Wealth Dear Friends, Did you know that there are over 2000 verses in scripture dealing specifically with finances and planning? For over thirty years, Roy Russell and his team of dedicated, Christian financial professionals have been putting to use their training and experience in the financial field to assist fellow believers all over the world in addressing the need for faithful Biblical stewardship in their lives. As part of a holistic Biblical worldview, family and finances come together as instruments for great good in the hands of believers as they seek to honor God in all things. A more thorough understanding of our personal and family finances, including investments, insurance, income taxes, debt and estate planning will allow us as believers to be more faithful stewards of all that God has entrusted to us. But it cannot stop with an understanding of our finances alone. We must study, understand, and apply God s word to our whole lives, including our finances, each and every day. The Stewardship Lifestyle Seminar is an information- and application-rich program that will provide individuals and families with the knowledge and understanding of God s word and their personal finances that will make it possible for them to be the good and faithful servants Jesus calls us to be (Matt 25:23). As Roy has often said, instruction without application often leads to frustration. It is for this reason that the Stewardship Lifestyle Seminar provides not only a Biblical foundation but a wide variety of practical information and application on all manners of financial topics, from basic budgeting to estate planning. A local Christian attorney will be available as they discuss wills and trusts, and a CPA is also available for any tax-related questions. The Life Financial Group is a fee-based Financial Advisory firm, but they will waive the normal $350 fee for personal reviews while at your church. I hope you will take advantage of this personal review session Roy and his team will provide a specific list of issues that need to be addressed to better plan for your future. Come to the Stewardship Lifestyle Seminar with an open heart and open mind, and you ll be blessed! Pastor Paul Caughill High Point Baptist Chapel Giegertown, PA

6 Key Elements Laying a foundation of biblical principles that teach wise stewardship as a lifestyle Providing qualified financial and legal professional to provide tax and financial counsel and prepare legal documents based on a Biblical World View Offering personal review sessions for believers who desire help with investing, estate planning, household budgeting and/or getting out of debt Schedule SUNDAY Sunday School: A Biblical Call to Proactive Parenting Morning Worship: Priorities A Biblical World View - Haggai 1 Workshop - Budgeting and Debt Evening Worship: A Biblical Call to Wise Stewardship 1 Timothy 6 MONDAY Personal Financial Checkups from 9am to noon (60- to 90-minute sessions) Lunch Fellowship (optional) Senior s Group 12pm to 1:30pm Personal Financial Checkups from 1:30pm to 4:30pm (60- to 90-minute sessions) Dinner at Church 5:30pm to 6:30pm Workshop - Financial Planning, Tax and Retirement Planning 6:30pm to 8:30pm Personal Financial Checkups from 8:30pm to 9:30pm (60-minute sessions) TUESDAY Personal Financial Checkups from 9am to noon (60- to 90- minute sessions) Lunch Meeting (optional) Local Pastors Fellowship discuss Pastors Taxes Personal Financial Checkups from 1:30pm to 4:30pm (60- to 90-minute sessions) Dinner with family from Church (optional) 5:00pm to 6:30pm Workshop Legacy & Estate Planning (Wills, Trusts and Probate), Biblical World View 7:00pm to 8:30pm 4 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

7 A Biblical Call to Proactive Parenting Tools TO TRAIn Your CHILDREn Principles without Application lead to frustration Train up a child in the way he should go; even when he is old he will not depart from it. Prov. 22:6 1. Who learns more - the Student or the Teacher? Why? A. Parents who incorrectly react to a need or a problem often cause conflict. To be proactive you must plan Teach your children and grandchildren (Deuteronomy 4:1-9; Ephesians 6:4). Act differently than the world and the people around you (Romans 12:2; Ephesians 4:17). Look ahead and prepare for upcoming dangers (Proverbs 22:3). B. Examples of proactively training children Balancing a checkbook can they make deposits? Write checks? Balance the account? Securing their first job what do they expect? What will they hear, see and do? Buying the first car who buys it? Makes payments? Pays for insurance and upkeep? Planning for college is it optional? What type? Who pays? How do they pay? Wedding expense is there a limit? Receiving gifts or an inheritance will it be misused or mismanaged? How much is enough? 2. Three Ways our Children Learn (Seeing, Hearing, and Doing) We remember: 10% of what we read 20% of what we hear 30% of what we see 50% of what we both see and hear 70% of what we say 90% of what we both say and do Active learning requires that we are involved in the learning; we need to see it, hear it, and do it to really get it!! A. Your children learn by watching others Seeing it (reading and watching others) 1. They are influenced by peer pressure (Luke 12:15). a. The world s philosophy from the god of this world? b. Biblical Priorities from the God of the universe? 2. They often misunderstand the deceitfulness of wealth (Mark 4:19). 3. They must understand credit card dangers (Revelation 3:14-20). a. Credit card use builds the Me first mentality-buy now, pay later...self sufficiency. b. A typical family has 10 cards with an average debt balance of $8,000. c. Credit card studies indicate that 34% more money is spent when plastic is used. B. Your children learn by the priorities you establish Hearing it Listening or Auditory (preaching & training) 1. Are you keeping these lifestyle priorities in order? a. Your faith salvation, sanctification, preventing stagnation b. Your family spouse, children, parents, peers c. Your finances give, save, spend, offerings and luxuries d. Your future a Christian s will The LIFE Financial Group, Inc. Serving the Christian Community Since

8 Priorities FROM a BIBLICAL WORLD VIEW Misplaced Priorities Haggai 1:1-14 and Luke 12:15 21 The goal: embrace Biblical priorities, challenge & encourage each other. 1. Are Priorities Important to God? A. Diagnosing Misplaced Priorities (Haggai 1:1-4) 1. Lost focus and the Temple lay in ruins 2. Their focus was on themselves and their comforts 3. They were not rich towards God B. The Consequences of Misplaced Priorities (Haggai 1:5-11) 1. Here we learn that when we edge out of God s priorities, life stops working for us. 2. God says, Consider your ways There is a cause-and-effect relationship between Israel s misplaced priorities and the problems that they re experiencing in the book of Haggai. 3. Poor economy, crop failure, overall discontentment C. The Solution to Misplaced Priorities (Haggai 1:12-15) 1. People began with reevaluation, with seeking God s guidance on where their priorities were out of line 2. They were distracted by the busyness of life and did not take time to honor God. 3. God resists the proud but gives grace to the humble 2 Peter 3:15 How should we prioritize the financial choices we make? Here are several Timeless Truths when properly applied will revolutionize our lives and align our priorities with Scripture. These are not new but their applications may surprise you as we review a principled guideline for handling 100% of God s money. 2. Let s Examine Five Timeless Truths A. God is a God of order, sequence, and priority. It s the very nature and Character of God. 1. Seen in creation itself (Genesis 1). In the beginning God He brings order out of disorder. 2. Demonstrated in the New Testament church (1 Corinthians 14:40 But all things should be done decently and in order. ). There is a plan. 3. Illustrated in the wisdom of Proverbs (Proverbs 24:27 Prepare your work outside; get everything ready for yourself in the field, and after that build your house. ). 4. Are we orderly? Kitchen, garage, bedroom and basement? Finances? B. God has deemed the family as the foundation stone of His plan for mankind. The family is key, and Satan wants to destroy it. 1. Instituted by God in the earliest moments of human history (Genesis 2). 2. Confirmed through New Testament truth - 1 Timothy 5:8 without a plan we have denied the faith (the Word of God). 3. Established as the key to passing divine truths through the generations. Deuteronomy 6:4-9 teach them diligently talk of them when you sit in your house, and when you walk by the way, and when you lie down, and when you rise. The LIFE Financial Group, Inc. Serving the Christian Community Since

9 C. God wants our life choices to bring glory to Him. It s all about our Testimony. 1. Lived out through the lives of Noah and the patriarchs (Gen. 6 Numbers). 2. Commanded through Paul to New Testament Christians (1 Corinthians 10:31...do all for the Glory of God Do you go into debt for the glory of God?). Average family carries over $7,000 in credit card debt. 3. Presented as the will of God for all believers (1 Peter 2:15 For so is the will of God, that with well doing ye put to silence the ignorance of foolish men D. God wants His people to help those who are less fortunate. 1. Established in the third or charity tithe of the Mosaic system (Exodus Deuteronomy). Three tithes: Levitical, Festival and Charity. 2. Confirmed in New Testament truth (James 2:15-17, 1 John 3:17-18). 3. Manifested as God s love in us (1 Corinthians 8-9). E. God wants to bless His people who obey. 1. Illustrated in His nation s provision (Deuteronomy 6-8 Blessing & Curse). 2. Given by God for his children to richly enjoy (1 Timothy 6:17). 3. Promises to share His riches with His children throughout time (Rev. 21:7). 3. Application of Financial Priorities to the Christian Steward Overlay of Financial Application A. GIVING Returning to the Lord that which is His is the first financial priority and privilege. 1. Honor the Lord with the first fruits (Proverbs 3:5-9). 2. Every tithe is the Lord s (Leviticus 27:30) It is holy unto the LORD. 3. they gave themselves first to the Lord (2 Corinthians 8:5). 4. Give and it will be given unto you Luke 6:38 5. Have you robbed God in tithes and offerings? Malachi 3:8-11 Tithing isn t the ceiling of giving; it s the floor. It s not the finish line of giving; it s just the starting blocks. Tithes can be the training wheels to launch us into the mind-set, skills, and habits of grace giving. Ironically, many people can t afford to give precisely because they re not giving. If we pay our debt to God first, then we will incur His blessing to help us pay our debts to others. (Haggai 1:9-11). Giving is a step of obedience just as baptism is a step of obedience. B. SAVING Setting aside to protect one s family is the second financial priority & privilege. 1. Precious treasure and oil are in a wise man s dwelling (Proverbs 21:20). 2. In the house of the righteous there is much treasure (Proverbs 15:6). 3. If anyone does not provide for his own household, he hath denied the faith... (1 Timothy 5:8) Saving in order to protect your family must become a conviction, not a convenience. It cannot be I ll save if there is extra. Rather, I must set aside reserves before I pay my first bill. 14 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

10 C. SPENDING Being timely, honest, and just with creditors is the third financial priority and privilege. 1. Pay to all what is owed to them taxes revenue (Rom 13:7a give everyone what you owe him). 2. The wicked borrows but does not pay back (Psalm 37:21). 3. Purpose of Work: so that you may walk properly before outsiders and be dependent on no one. 4. (1 Thessalonians 4:12). It s about our testimony! Being timely with creditors is vitally important, but the wise steward first honors the Lord and protects his family with savings. We must choose to live at a level of consumption that is lower than our income. D. OFFERINGS Being mindful and generous toward the needs of others is the fourth priority and privilege. 1. Only they would that we should remember the poor (Galatians 2:10). 2. On the first day of the week, each of you is to put something aside and store it up (1 Corinthians 16:2). 3. your abundance at the present time should supply their need, so that their abundance may supply your need, that there may be fairness. (2 Corinthians 8:14). 4. Give and it will be given unto you (Luke 6:38) 5. 2 Cor 9:6-11 Sow little reap little 6. Don t be Stingy: God says, Whoever closes his ear to the cry of the poor will himself call out and not be answered. (Proverbs 21:13). In Isaiah 58:6-10, God says that His willingness to answer our prayers is directly affected by whether we are caring for the hungry, needy, and oppressed. Want to empower your prayer life? Give. 7. What s the Purpose of Prosperity? God prospers us not to raise our standard of living, but to raise our standard of giving. After managing well the first three responsibilities, financial freedom now allows freewill offerings. God asks that I consider the circumstances of others before I spend on personal pleasures. Are there individuals, mission efforts, or other ministry works I should assist? E. LUXURIES Rightfully enjoying God s abundance is the fifth priority and privilege. 1. The Lord blessed the latter days of Job more than his beginning. (Job 42:12). 2. God, who richly provides us with everything to enjoy (1 Timothy 6:17). 3. What do you have that you did not receive? (1 Corinthians 4:7) Now that I ve considered my obligations and opportunities to the Lord, my family, creditors and others, I am free to enjoy the great blessings God has richly given. Choosing to be rich toward God demonstrates wise stewardship AND is a testimony to the world. It is required in Stewards that they be found faithful. (1 Corinthians 4:2) The LIFE Financial Group, Inc. Serving the Christian Community Since

11 Creating a Spending Plan that Works DO I REALLY NEED A BUDGET? Budget is often treated like a four-letter word. However a budget is simply a spending plan a tool to help you make the best possible use of your resources. Budgeting is not necessarily about getting out of debt, but it is about wise stewardship, and this applies to everyone, from the Janitor to the CEO. Budgeting = Planning = Wisdom. It is required in Stewards that they be found faithful 1 Cor 4:2 I. PRINCIPLES TO UNDERSTAND Proverbs 27:23-27 A. Your purpose on earth is to glorify God (Matthew 5:16). B. A Wise man builds his house upon the rocks (Matthew 7:24-27). C. God rewards those who diligently seek Him (Hebrews 11:6). D. Everything you have belongs to God (Exodus 9:29; Psalm 24:1; 1 Corinthians 10:26). E. God is your provider (Deuteronomy 8:18). F. You must honor God with everything He has entrusted to your care (Proverbs 3:9-10). G. The husband is to bear the emotional burden for the family s finances (1 Timothy 5:8) H. You are accountable for your stewardship (1 Corinthians 4:2; Romans 14:12). I. Tithes, offerings, and giving are the will of God (2 Corinthians 8:5). J. Financial success comes through hard work (Proverbs 10:4; 22:29). II. THE BUDGET WORKSHEET A. Record your income 1. List gross income for both spouses from your jobs. 2. Subtract all deductions to arrive at your net spendable take-home pay. 3. List all other forms of income: social security, investment, pension, rents, etc. B. Prioritize your spending. See Priorities from a Biblical Worldview (pg ) notice that these are sequential priorities. Giving comes first than savings than spending and so forth. 1. Give this is our 1st priority and privilege a. Start at 10% of your income to your local church b. Any giving above 10% or any ministries other than your church falls into the offerings category. 2. Save our family is the 2nd priority (Goal: 10% of income) a. Emergency Fund: If you have debt, save $1,000 and proceed with debt snowball (see Debt Elimination, pg. 18). If you are already debt-free, start by setting aside 3-6 months living expenses. b. Short Term: These are funds that you expect to need over the next 12 months (taxes, insurance payments, vacation, Christmas and birthdays, etc.). Add the value of all these bills and then divide by 12. Set up an automatic savings plan to put that amount into savings monthly until needed. c. Long Term: This is for large expenses like education, marriage, automobile, retirement, etc. If your company offers a matching 401k, take full advantage of the match. Above that, consider saving in your IRA or Roth IRA. You may want to contact The Life Group or another advisor to discuss your options. 3. Spend on living expenses or needs a. Housing: you should not spend more than 25% of your take-home pay on mortgage or rent 16 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

12 b. Groceries: consider paying for groceries in cash. This may prevent overspending. Also, plan out a weekly meal plan and then shop to fill the plan not the pantry. c. Insurance: consider paying your insurance premiums annually if possible. Many insurance companies charge less for this. d. Personal Allowance: to avoid overspending on things like coffee or buying lunch at work, give yourself a weekly or monthly allowance (i.e. $10 or $15 a week). e. Debt Payments: If you have debt (other than your primary mortgage) we recommend that you follow the debt snowball (see Debt Elimination, pg. 18) 4. Offerings for the needs of others come before luxuries. a. Giving to your local church beyond 10%, Faith Promise Missions b. Those in your community that are in financial need. (See The Surprise Package Company, p. 9 ) 5. Luxuries - Enjoy the fruits of your labor (eating out, vacations, hobbies, Cable TV, etc.) III. BUDGETING Tips A. Visualize your cash flow. Understand that peaks and valleys will happen. This helps you see the need to set aside funds for those difficult times. B. Use a saving method. 1. Envelope system 2. Money market-automatic bank transfers. This is usually the best option. C. Budgeting tools that help you. 1. Quicken, other computer programs (Excel), etc free online budgeting and cash flow monitor 3. Our Spending Plan Worksheet see page 36 D. Record your actual expenses as you pay your bills (tracking). This will provide the information you need to make next year s budget E. Stick with it! This is the only way to measure your money and avoid future debt. Biblical Stewardship is a lifestyle that displays wisdom in your choices. F. Establish Accountability If married, work together with your spouse. If single, find an accountability partner. National Household Spending Averages Category Percent of Spending Food 13.9% Clothing 4.2% Housing 23.3% Personal 11.4% Medical 19.7% Transportation 8.9% Other 18.6% Total: 100.0% Source: Statistical Abstract of the United States: Table 677 IV. WHAT If It DOESN t WORK? A. Try to determine God s reasons: Do I really need it or Is He testing my faith? Did I misspend the funds He provided? 1. Have I violated the financial principles found in God s Word? Give and be financially blessed... Proverbs 11:24 Scorning correction (Pride brings poverty)...proverbs 13:18 Planning leads to profit, haste to poverty...proverbs 21:5 Stinginess Listen to the cry of the poor...proverbs 21:13 Get-rich-quick schemes... Proverbs 28:19 The LIFE Financial Group, Inc. Serving the Christian Community Since

13 Debt Elimination: Free to Serve The wicked borrows but does not pay back, but the righteous is generous and gives Psalms 37:21 I. Debt Elimination STARTS IN THE HEART! A. Acknowledge your sin of poor stewardship, if necessary. If we confess our sins, he is faithful and just to forgive us our sins and to cleanse us from all unrighteousness. (1 John 1:9). B. Acknowledge your need of help. God is our refuge and strength, a very present help in trouble. (Psa 46:1). Let us then with confidence draw near to the throne of grace, that we may receive mercy and find grace to help in time of need. (Heb 4:16). C. Make a commitment to the Lord to be a godly steward. I appeal to you therefore, brothers, by the mercies of God, to present your bodies as a living sacrifice, holy and acceptable to God, which is your spiritual worship. (Rom 12:1) II. DEBT ELIMINATION REQUIRES CHANGE! A. Determine where you are financially. Debt is a worldwide 1. List all of your debts. epidemic. In order to 2. Inventory your assets. protect our families from it, 3. Complete a household budget. we must change the way we a. Identify your income sources and amounts. treat money. It all starts with b. Identify your financial obligations. an acknowledgement that B. Stop going into debt. Stop the financial bleeding! God owns all things and When you re in a hole, know when to stop digging! that the way we handle C. Start using a disciplined spending system: money reveals who 1. Envelopes or what we worship. 2. Savings Account for annual bills (taxes, insurance, vacation, Christmas, exc.) -Tim Russell a. Add up all these expenses, divide by 12 and set that amount aside monthly. b. Withdraw from account when bill comes in to avoid debt. 3. Electronic Tracking (Quicken or Mint.com) Most debt problems are a result of overspending, rather than lack of income. D. Establish accountability. 1. If married, start with your spouse 2. Close friend or pastor who you can confide in 3. Christian Financial Advisor E. Develop a repayment plan. 1. Reduce your expenses. a. Most debt problems are a result of overspending, rather than lack of income b. Eliminate luxuries and excess spending (i.e. cable TV, eating out, impulse spending, and coffee on the way to work ) c. Sell unnecessary assets (EBay, Craigslist, yard sale) The LIFE Financial Group, Inc. Serving the Christian Community Since

14 A Biblical Call to Wise Stewardship 1 Timothy 6 The goal: Doing the Will of God as it relates to our Finances Your personal stewardship affects more than your immediate family. Does your pastor have any business speaking to you about your private financial matters? Who wrote 1st Timothy? To whom was it written? It was Timothy s God given responsibility as a pastor to minister the Word of God to those who had wealth regarding the exercise of personal stewardship. 1. WHAT IS STEWARDSHIP? A. A Manager or Overseer of someone else s estate Joseph Gen 39:4; 43:19 Pastors Acts 20:28 B. The care for and use of all entrusted to us C. We are Managers of God s Estate: Psalms 24:1 i. Must be Faithful 1 Cor 4:1-2 ii. Must be Accountable Rom 14: WHY HEAR A MESSAGE ON STEWARDSHIP? A. Lack of teaching Acts 20:27, 1 Tim 6:17 It s often limited to just tithing or fund raising. Stewardship is not simply tithing B. Most Financial Advisors teach how to build and protect wealth and pass it on to your children, often to their harm. Few provide guidance or wisdom from Scripture. Psalm 1:1 1 Timothy 6: As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of richest, but on God, who richly provides us with everything to enjoy. 18 They are to do good, to be rich in good works, to be generous and ready to share, 19 thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life. C. Our nature selfish and impulsive Mark 4:19 Indebtedness can make you a slave to an unwanted master - Proverbs 22:7 D. Families are destroyed from mismanagement over 90% of marital problems are related to finances. E. Families can be torn apart over estate disputes - We will be held accountable for our choices 3. HOW SHOULD YOU FUNCTION AS A STEWARD? A. What does money do to your Attitude? 1 Timothy 6:17 As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of richest, but on God, who richly provides us with everything to enjoy. Even though the congregation may be intimidating, the pastor is commanded to teach the biblical responsibility of stewardship and exhort his congregation to practice it with eternity in view. The LIFE Financial Group, Inc. Serving the Christian Community Since

15 A lot of folks are relieved and thinking, Not me, I m not rich Can you answer the question; how do you define wealth? Defining Wealth on a Global Scale Research finds that assets of just $2,200 per adult placed the household in the top half of the world s wealthiest. To be among the richest 10% of adults in the world just $61,000 in assets is needed. If you have more than $500,000 you re part of the richest 1%, the United Nations Study has found. (Source: Dow Jones Financial Advisor Service January 2007) It looks like we are all back in the ball game! 1. Do not be high-minded or arrogant. Don t have a high esteem of self. Are you part of the upper middle class? 2. Do not trust in uncertain riches. Do not let wealth be your source of dependence or confidence. Did you pray today, Lord, give us today our daily bread.? NO, why? Because it was already in the refrigerator or cupboard. 3. Do keep your trust in the living God. God gives us richly all things to enjoy, so trust Him. B. The right Activity with your wealth 1 Tim 6:18 They are to do good, to be rich in good works, to be generous and ready to share 1. Work good deeds. Engage in the work, get involved 2. Become rich in good works it s a learned behavior. 3. Be ready to distribute to others a. Proverbs 11:25 Whoever brings blessing will be enriched, and one who waters will himself be watered. b. Proverbs 11:24 One gives freely, yet grows all the richer; another withholds what he should give, and only suffers want. c. Proverbs 19:17 Whoever is generous to the poor lends to the LORD, and He will repay him for his deed. 4. Be willing to share (from koinonikos, meaning to partner or fellowship). 5. Consider Christian School or Camping ministry They both are labor-intensive but not revenue-intensive. The Christian workers are grossly overworked, under-paid and quickly burned out. We then find another group of dedicated believers and put them through the same meat grinder. C. What will stewardship Accomplish? 1 Tim 6:19 thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life. Also seen in 1 Tim 6:12 1. Lay-up treasure in store for yourself - Matt 6:19-20 Self-serving? 2. John 17:3 Seize the truth of your salvation, lay hold to this truth! 3. Matt 6:21 Your heart follows your money Focus should be on the future, your future in Heaven with your God. 4. The time to come is also called the Bema Seat or Judgment Seat of Christ where we will be judged for our Stewardship and Service. This is not the Great White Throne Judgment where the unsaved are condemned. 4. WHY IS STEWARDSHIP SO IMPORTANT? A. On a Personal Level 1. It affects everyone in the church - 1 Corinthians 12:12 the body is one and has many members 2. You will give an account 1 Corinthians 4:2, Romans 14:12 3. How you leave your estate is as important as how you managed it while you were living. This is your final act of stewardship. 22 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

16 Financial, Tax, and Retirement Planning I. Financial Success comes from obeying Scripture and applying priorities to our choices. Life is choices; choices have consequences; make the right choice! Financial Freedom is a choice, not a dream. Anyone can be financially free. You choose how your life is going to look and you re responsible for making it happen. No one is going to do it for you. Financial freedom is not only your choice, it is your responsibility. A. As God s Money Manager, my Financial Responsibilities are: 1. First to the Lord 2. Second to my family 3. Third to my creditors 4. Fourth to others or to God s work (Sacrificial giving) 5. Fifth to rejoice in God s rich blessings B. Remember the Priorities of God and then Family 1. Both Testaments urge wisdom (Prov 21:5, 22:3 James 3:13) 2. Both Testaments urge family protection (1 Tim 5:8, Prov 21:20) II. Short-Term Saving A. Short-term savings is always a priority over Long-term investing B. Remember If you don t earn interest, you will pay interest! C. Short-Term, liquid Cash Savings for emergencies and opportunities 1. Saving short-term is wise 10% of your monthly income is a good place to start 2. Find the bank that offers the best interest rate on savings accounts a. What kind of interest are you getting from your local bank? b. Internet banks often have better rates check 3. Remember Proverbs 21:20 The Wise not the Rich have savings! 4. Build and maintain a cushion for opportunities and emergences. Set a goal of several thousand dollars (3 to 6 months earnings is wise) D. Let s look at some real life facts: The Personal Savings Rate has been in an overall declining trend for several decades. 50% of Americans have less than one month of savings saved for emergencies 61% are living paycheck-to-paycheck III. Long-Term Saving and Investing A. Six Rules for Investing Providing for your family and avoiding debt is wise! I Tim 5:8 family provision is commanded Pr 13:11 he who gathers money little by little... Pr. 21:20 the wise have reserves... Pr. 22:3 the prudent look ahead... Pr. 21:5 planning results in plenty... Pr. 22:7 borrower is in bondage Invest conservatively, within different asset classes. 2. Look for a ten-year track record of the fund manager (not the fund). 3. Reduce or avoid investing in sin stocks. 4. Keep it simple! 5. Minimize or avoid surrender & redemption fees. 6. Use independent, third-party research like Morning Star Publications. NOTE: Investing is not like gambling. We typically invest with our head using logic or reason but often sell out of fear or emotion. Like farming it takes time and patience to reap anything of value. Lottery tickets and Casinos are gambling and not wise. 24 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

17 15.0 Personal Saving Rate (PSAVerT) Source: U.S. Department of Commerce: Bureau of Economic Analysis (Percent) Shaded areas indicate U.S. recessions research.stlouisfed.org B. Where is wisdom? 1. From our experience with families just 26% of adults surveyed think they could accumulate $200,000 in net wealth in their lifetime. Questions for you to answer % said a lottery win would be the most What are your rules for investing? practical strategy for accumulating several hundred thousand dollars. 3. But if you save $200 monthly from age 30 to 65 and earn an average of 9% per year you will How do you display wisdom? have over $500,000. C. Where can we find $200? 1. Reduce: Eating out once per month or per quarter How will you find $200 each and every month? 2. Buying lunches and snacks 3. Buying coffee, soda and bottled water 4. Overall Consumption! 5. Avoiding tax-refunds 6. Extra work = extra income Stocks - Ownership Bonds - Debt Mutual Fund - Container REIT - Real Estate D. Most Common Investment Terms: 1. Stocks: Ownership in a public company by purchasing common shares of the company. A round lot of stock is usually 100 shares. For proper diversification you need to purchase a variety of stocks in different sectors and asset classes of the market. Generally you should start with $50,000 to build a portfolio. The LIFE Financial Group, Inc. Serving the Christian Community Since

18 5. Annuities: These are best used by people needing tax deferral on account growth and/or a guaranteed lifetime income. Annuities provide specific guarantees 2 and can be issued by insurance companies or non-profit organizations. Distributions made prior to age 59 ½, have a 10% tax penalty similar to an IRA. Annuities are contracts which will contain detailed information regarding risks, expenses, charges, withdrawal provisions and related benefit riders. Investors should read and study the contract carefully before investing. a. Four Types of Annuities: i. Fixed rate Annuity ii. Variable Annuity 3 iii. Indexed Annuity iv. Charitable Gift Annuity Often issued by non-profit organizations b. Common Benefits of Insurance Company Annuities i. Living Benefits: Some provide a guaranteed income benefit regardless of the market. Some are as high as 6%. ii. Death Benefits: Some provide an increasing guaranteed death benefit regardless of investment performance. iii. Investing in an annuity can defer or postpone income taxes. There is the possibility of reduced income tax, if an investor is in a lower tax bracket when they start taking withdrawals and distributions from an annuity. c. Common Drawbacks with Insurance Company Annuities i. They can be expensive ii. The various Guaranteed Living Benefit Riders and Death Benefits have added costs. 4 iii. They can be very confusing iv. Some have long surrender penalties v. They are not a good investment to pass on to your children tax problems! If the beneficiary is a non-spouse, all gains are taxable at the beneficiaries highest tax bracket. This can be disastrous if your children or other heirs are in a high tax bracket already. A great option to avoid future tax problems is to add a charity or your church as a beneficiary to the annuity. They are tax-exempt. d. Gift Annuity i. A gift annuity is a contract under which a charity, in return for a transfer of cash or other property, agrees to pay a fixed sum of money for a period measured by one or two lives. A person who receives payments is called an annuitant or beneficiary. The contributed property becomes part of the charity s assets, and the payments are a general obligation of the charity. The annuity is backed by all of the charity s assets, not just by the property contributed. ii. Potentially pays an income, for life (earnings & principal). Usually set from 6% to 9% based upon age. iii. Great income tax savings for those who itemize deductions iv. Can be issued by your local church or favorite ministry. Can be used to fund a scholarship or other goals of the donor. v. Ideal for gifts of $25,000 and above where the donor needs current income and plans to provide for ministry at their death. 2 Guarantees are based upon the claim-paying ability of the insurance company. 3 Variable annuities are subject to market risk and only suitable for long-term investing. Investors should consider the investment objectives, risks, charges and expenses of the variable annuity and underlying investment options before investing. For complete information on fees and expenses, please read the prospectus carefully. 4 Living Benefit Riders may not be suitable for all investors. 28 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

19 AN EARLY START How $6,750 Can Grow to Over $1 Million This table shows four ways to accumulate approximately $1,000,000 in a tax-sheltered account by age 65. Investor A contributes $2,000 at the beginning of each year for forty years (ages 25-65); Investor B, $2,000 a year for only seven years (19-25); Investor C, $2,000 a year for only five years (age 14-18); and Investor D, even smaller sums from age 8 through 13. investor A investor B investor C investor D year-end year-end year-end year-end Age Invest Value Invest Value Invest Value Invest Value 8 $0 $0 $0 $0 $0 $0 $500 $550 9 $0 $0 $0 $0 $0 $0 $750 $1, $0 $0 $0 $0 $0 $0 $1,000 $2, $0 $0 $0 $0 $0 $0 $1,250 $4, $0 $0 $0 $0 $0 $0 $1,500 $6, $0 $0 $0 $0 $0 $0 $1,750 $8, $0 $0 $0 $0 $2,000 $2,200 $0 $9, $0 $0 $0 $0 $2,000 $4,620 $0 $10, $0 $0 $0 $0 $2,000 $7,282 $0 $11, $0 $0 $0 $0 $2,000 $10,210 $0 $13, $0 $0 $0 $0 $2,000 $13,431 $0 $14, $0 $0 $2,000 $2,200 $0 $14,774 $0 $15, $0 $0 $2,000 $4,620 $0 $16,252 $0 $17, $0 $0 $2,000 $7,282 $0 $17,877 $0 $19, $0 $0 $2,000 $10,210 $0 $19,665 $0 $21, $0 $0 $2,000 $13,431 $0 $21,631 $0 $23, $0 $0 $2,000 $16,974 $0 $23,794 $0 $25, $0 $0 $2,000 $20,872 $0 $26,174 $0 $28, $2,000 $2,200 $0 $22,959 $0 $28,791 $0 $30, $2,000 $4,620 $0 $25,255 $0 $31,670 $0 $34, $2,000 $7,282 $0 $27,780 $0 $34,837 $0 $37, $2,000 $10,210 $0 $30,558 $0 $38,321 $0 $41, $2,000 $13,431 $0 $33,614 $0 $42,153 $0 $45, $2,000 $16,974 $0 $36,976 $0 $46,368 $0 $49, $2,000 $20,872 $0 $40,673 $0 $51,005 $0 $54, $2,000 $25,159 $0 $44,741 $0 $56,106 $0 $60, $2,000 $29,875 $0 $49,215 $0 $61,716 $0 $66, $2,000 $35,062 $0 $54,136 $0 $67,888 $0 $72, These $2,000 are hypothetical $40,769 scenarios based $0 on the stated $59,550 contribution $0 amounts and $74,676 an assumed annual $0 10% rate $80,244 of 37 return. The $2,000 numbers stated $47,045 do not reflect $0 any particular $65,505 investment and $0 are not $82,144 implying any guarantee $0 that $88,269 you will 38 $2,000 $53,950 $0 $72,055 $0 $90,359 $0 $97, experience $2,000 the same $61,545 result. Past performance $0 of any $79,261 investment cannot $0 be assumed $99,394 or guaranteed $0 into the $106,805 future. 40 With $2,000 any investment, $69,899 consider any $0 and all objectives, $87,187 risks, sales $0 charges $109,334 and expenses before $0 investing. $117, $2,000 $79,089 $0 $95,905 $0 $120,267 $0 $129, $2,000 $89,198 $0 $105,496 $0 $132,294 $0 $142, $2,000 $100,318 $0 $116,045 $0 $145,523 $0 $156, $2,000 $112,550 $0 $127,650 $0 $160,076 $0 $172, $2,000 $126,005 $0 $140,415 $0 $176,083 $0 $189, $2,000 $140,805 $0 $154,456 $0 $193,692 $0 $208, $2,000 $157,086 $0 $169,902 $0 $213,061 $0 $228, $2,000 $174,995 $0 $186,892 $0 $234,367 $0 $251, $2,000 $194,694 $0 $205,581 $0 $257,803 $0 $277, $2,000 $216,364 $0 $226,140 $0 $283,584 $0 $304, $2,000 $240,200 $0 $248,754 $0 $311,942 $0 $335, $2,000 $266,420 $0 $273,629 $0 $343,136 $0 $368, $2,000 $295,262 $0 $300,992 $0 $377,450 $0 $405, $2,000 $326,988 $0 $331,091 $0 $415,195 $0 $446, $2,000 $361,887 $0 $364,200 $0 $456,715 $0 $490, $2,000 $400,276 $0 $400,620 $0 $502,386 $0 $539, $2,000 $442,503 $0 $440,682 $0 $552,625 $0 $593, $2,000 $488,953 $0 $484,750 $0 $607,887 $0 $653, $2,000 $540,049 $0 $533,225 $0 $668,676 $0 $718, $2,000 $596,254 $0 $586,548 $0 $735,543 $0 $790, $2,000 $658,079 $0 $645,203 $0 $809,098 $0 $869, $2,000 $726,087 $0 $709,723 $0 $890,007 $0 $956, $2,000 $800,896 $0 $780,695 $0 $979,008 $0 $1,052, $2,000 $883,185 $0 $858,765 $0 $1,076,909 $0 $1,157, $2,000 $973,704 $0 $944,641 $0 $1,184,600 $0 $1,272,920 Total Investment $80,000 $14,000 $10,000 $6,750 Investment Gains $893,704 $930,641 $1,174,600 $1,266,170 Investment Gains 11-Fold 66-Fold 117-Fold 188-Fold The LIFE Financial Group, Inc. Serving the Christian Community Since

20 What a Difference Planning Can Make! SAVING For 10 Years Amount Needed: BorroWING 10-Year Loan $14,160 $42,960 $25,000 Total Cost 1 Total Cost 2 We can save $28,320 by prefunding a future obligation instead of borrowing to pay for it equal monthly payments of $122 assuming a 10% net return equal monthly payments of $358 assuming a 12% loan rate. A portion of each payment may be tax deductible, effectively reducing the net after tax cost of the loan. These are hypothetical scenarios based on the stated contribution amounts and an assumed annual 10% rate of return. The numbers stated do not reflect any particular investment and are not implying any guarantee that you will experience the same result. Past performance of any investment cannot be assumed or guaranteed into the future.with any investment, consider any and all objectives, risks, sales charges and expenses before investing. The LIFE Financial Group, Inc. Serving the Christian Community Since

21 Percent Purchasing Power Year Index Increase of the Dollar F. What will inflation do to your nest-egg? (Base) n/a $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ 0.15 Source: U.S. Bureau of Labor Statistics, Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): U.S. City Average, by expenditure category and commodity and service group. Purchasing power of the dollar is rounded off to the nearest cent. Wisdom (or common sense!) dictates that we need to save money for planned and unexpected expenses. This ranges from buying a house, repairing and replacing a car, college costs and weddings. (see p. Page 39 for 10-year graphic) However, the largest and most important expense will be in our golden years. Most of us will eventually retire; some unwillingly due to medical concerns others due to layoffs. Social Security income is very limited and not sufficient to cover basic living expenses. It must be supplemented either through continued employment or through investment earnings. Money must be invested to grow quicker than the cost of living inflation. Therefore accounts earning less than inflation will likely severely limit your retirement options. A goal or rule of thumb should be earning an average return of between seven and nine percent annually. Some years you may likely earn far more which can offset those years where your portfolio loses value. I wish we had a retirement plan that didn t require matching six numbers. In 2012 it takes over $200 to buy what $100 did in 1987, just 25 years ago. Going back to 1967 it takes $687 today to buy $100 worth of goods. Another way of saying this - $100 then is now worth less than 15 cents. Inflation is simply a fact of life and must be expected. The danger comes with high prolonged inflation. Fortunately we have not experienced this in America. We are likely to experience some of this hyper-inflation in the years ahead due to our poor fiscal policies. When we experience inflation the worst place to have your money is in cash and bonds. They can quickly lose purchasing power. Some stocks, real estate and commodities on the other hand can still grow in an inflationary economy. We must remain diversified and have proper asset allocation. 42 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

22 Cash Flow Worksheet/Spending Plan Give First, Then Save, Pay Your Bills, Give Sacrificially, and Then Enjoy Luxuries Gross Income Current Goal Month 1 Month 2 Total Husband Wife Total Income Expenses Current Goal Month 1 Month 2 Total Giving: Tithe (Goal 10% of Gross) Saving: Short Term (Goal = 5%+ Savings Account) Long Term (Goal = 5%+ Invested) Spending: Taxes (Federal / State / Local) Housing (Mortgage / Rent Payment) Real Estate Taxes Home-Owner s / Renter s Insurance Heating (Gas / Fuel Oil) Groceries Electricity Phone (Home) Phone(s) (Mobile) Internet Water / Sewer Trash Removal Education Cash Allowances (Personal) Cash Allowances (Children s) Insurance Premiums (Health / LTC / AD&D) Auto Insurance Auto Repair Gas / Other Auto Expenses Child Care Clothing Gifts (Birthdays / Weddings / Christmas) Other Debt Repayments: Auto (Loan Payment / Lease) Equity Loan Credit Card - Credit Card - Personal Loans Doctor, Hospital, Dental Bills Bank Loans Student Loans Offerings: Giving above the tithe Luxuries: Pets / Hobbies / Subscriptions Eating Out Vacation Cable / Satellite TV Other Total Expenses Surplus or <deficit>/cash Flow The LIFE Financial Group, Inc. Serving the Christian Community Since

23 Avoiding Costly and Dangerous Mistakes in Retirement - Senior Luncheon Discussion 1. Retirement Income: Keeping up with the cost of living a. How much will you need? b. Can you stay retired? c. Social Security benefits after the first death? d. Other sources of income? 2. Banking: CDs? (some call them a Certificate of Deprecation) a. How much is enough in short-term liquid savings? b. Money Market Accounts c. What about Internet Banks? 3. US Savings Bonds: No longer earning interest? a. Where to keep, when to sell, how to title? b. Income taxes and Probate c. All bonds issued prior to 1983 (as of 2013) are no longer paying interest. EE Savings Bonds fully mature in 30 years. 4. Investing: Reduce or avoid taxes? a. Mutual Funds and Individual Stocks b. Keeping risk low while striving for growth c. Buying or Selling Coins Gold and Silver? d. IRA, Roth IRA and other Retirement plans e. Should I consider an Annuity? f. Dangers of an Index Annuity! 5. Insurance: How much is enough? a. Do I still need Life Insurance? b. Long-term Nursing Care Insurance c. Medical Insurance (Medicare, Medicaid, PACE and PACE Net) 6. Real Estate: Should I consider a Reverse Mortgage? a. Scams and getting help with maintenance b. Retain the home, downsize or relocate to a retirement community? c. What to do with Timeshare vacation homes? d. Problems with multiple houses or rentals 7. Taxes: Are you exempt from filing? a. You can minimize the taxes due b. Homestead housing credit c. What to keep and how long to retain your tax records 44 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

24 8. Debt: Remember If you do not earn interest, you will pay interest! a. Buying your next car? b. Still have a mortgage? c. Credit cards? 9. Estate Planning: Out-dated documents a. What is a Christian s Will? b. Do I really need a Power of Attorney? What is HIPAA? c. Understanding Probate and attorney s fees d. Do I need a Living Trust? e. Keeping family informed 10. Final Expenses: Pre-planning or Pre-Paying Funeral Expenses a. Average Costs: $7,500. Comparison shop. b. Guaranteed vs. non-guaranteed funeral c. Federal Trade Commission 6 Recommendations. Prepaid funeral plans often stacked against consumers according to Wall Street Journal 7 d. Insurance Policies sold by funeral home: usually a very bad option e. Medicaid Planning: Irrevocable bank account paid to funeral home 11. Procrastination: Delaying until tomorrow what you should do today a. Not planning for the future (Proverbs 22:3) b. Damage of inflation and rising cost of living c. Annually reviewing and updating your portfolio d. Ask questions, learn, work with a Trusted Advisor who shares your faith 12. Other Potential Problem Areas: a. Identity theft b. Disabled spouse or problem child c. Loaning or giving to friends and family d. Dealing with telephone or direct mail solicitors Maybe it s time to work with a Trusted Financial Advisor Call us at (610) or speak with the presenter The LIFE Financial Group, Inc. Serving the Christian Community Since

25 What Makes an Estate Plan Christian? A Biblical Perspective to Designing Your Will or Trust Estate Planning is likely the single most important act of Stewardship that many of us as Christians will ever undertake, whether we are nearing the end of our lives and mainly focused on getting our affairs in order, or perhaps in middle age and contemplating approaching retirement, or even younger couples with growing families with seemingly little of life s financial resources. Estate planning boils down at its core to a process of determining to whom, how and when we will transfer the stewardship of what God has entrusted to us when the time comes when we cannot serve as the steward ourselves. As believers we understand that God is the owner of all that He has entrusted to us and that we seek to arrange our affairs in a way to please the Lord who has created and owns all that we see. We are faced with a number of fundamental considerations like how much is enough for my children, when should they receive an inheritance and how much of that should be an outright gift of capital (or cash) vs. an income stream that could be made available over a number of years. Do they have the training and wisdom to manage the money to honor the Lord or will they simply pay off their credit cards just too slowly dig another hole of debt and be in worse shape five years later? What kind of eternal impact do I want to make to ministries that have been important to me and my loved ones over the course of our lives? For we must all appear before the judgment seat of Christ, that each one may receive what is due him for the things done while in the body, whether good or bad. 2 Cor. 5:10 What kind of tax and probate strategies need to be adopted to be assured that there is the smallest amount possible lost to estate taxes, income taxes, lawyer s fees and probate? The Bible says that planning is a sign of wisdom. Proverbs 21:5 and 22:3. Leaving money or other resources to your local church, Christian college or other God-honoring ministry may be your final act of stewardship. Download our Estate Planning worksheet to use with your local attorney or one of our recommended Christian attorneys. It may be found in our download section on our website. Go to Feel free to call with any questions at (610) or visit our offices at 978 Ben Franklin Highway (East), Douglassville, PA The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

26 Estate Planning from a Biblical Worldview He is no fool who gives what he cannot keep to gain what he cannot lose. ~ Missionary Jim Elliot who was martyred by the Inuit Indians in South America Part One: Leaving a Legacy I. The Treasure Principle A. Where is your treasure? 1. IRAs, 401(k), stocks, mutual funds, annuities, real estate 2. Or do you have a different perspective? B. What will last? 1. Finite Perspective Farmland, houses, gold, investments these things will perish! 2. Infinite Perspective Fix your eyes not on what is seen, but on what is unseen. For what is seen is temporal, but the things which are not seen are eternal For we walk by faith, not by sight. 2 Corinthians 4:18, 5:7 + Col 1:16 II. The Reward Principle When we invest money now in God s kingdom, we will receive great rewards later in heaven. Invest my money where? How do I do that? A. What does Jesus expect? Jesus said, Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal; but lay up for yourselves treasures in heaven For where your treasure is there will your heart be also Matt 6:19-24 B. Three Questions: 1. If you had enough money what would you do differently? 2. If the doctor said you only had 3 years to live what would you do different? 3. If you were to die tomorrow what would be your greatest regret? C. The Bible states that we will be judged for our Stewardship and our service to the Lord. We believe that God prospers us not to raise our standard of living, but to raise our standard of giving. During this discussion remember that The Bible says that in the multitude of counselors there is wisdom. Talk with your children, your pastor, accountant and/or attorney and seek wisdom. Roy Russell nor the presenters from The LIFE Financial Group, Inc. are attorneys and this is intended to be informational only and should not be construed to be legal advice. You should consult with a licensed attorney regarding any legal issues. This is why we usually bring a local Christian attorney to assist with our presentations. The information that we provide about taxes is general in nature and only intended for informational purposes. Each person s tax situation is unique and you should consult with a competent tax advisor regarding the tax impact of any gift or other transaction. The LIFE Financial Group, Inc. Serving the Christian Community Since

27 III. Application: Ways to Raise your standard of giving Often-overlooked Ideas A. Give frequent flyer miles to the church if your airline permits B. Give Matching Gifts or Challenge Grants encourage others to give 1. A $5,000 Challenge Grant encouraged over $30,000 in gifts 2. Can be used for Mission projects, Christian schooling, etc. C. Assign rebates to the church D. Eliminate eating out for a period a real sacrifice for some E. Do extra work for a specific project purpose driven employment F. Have yard sales or re-sale items on e-bay to fund a specific project G. Give collectibles: coins, gems, guns, books and take tax deduction H. Software licenses cheaper upgrades than buying new I. Give shares of stock or a mutual fund to ministry as your tithe 1. Stock Splits, Inherited Stock, Life Insurance Company Stock 2. Examples include Met Life shares & Prudential shares J. Donate land, personal residence or other real estate! 1. Examples include a Bargain Sale, a Life Estate, or an outright gift 2. Real estate is then protected in the event of needing long-term care K. Set up a Charitable Remainder Trust; A CRT has the potential to Turn appreciated assets into a monthly income 2. Avoid capital gains taxes & take a sizable income tax deduction 3. Direct to various ministries at your death you can maintain control L. Purchase a Gift Annuity 1. An investment contract providing specific benefits issued by Christian ministries 2. Invest $25,000 or more in the Lord s work and receive a monthly income for life and a generous tax deduction for those who itemize M. Fund a Life Insurance Policy 1. $50,000 gift can provide up to $300,000 scholarship fund (based on age and health) 2. You can give old policies no longer needed to the church 3. Consider adding or changing beneficiaries to include your church and/or other ministries N. Start your own Family Foundation Open a Donor-Advised Fund w/ $5, Money is invested and has potential to grow until given away, can protect privacy; grown children can be subsequent advisors 2. Contribution tax-deductible when added to Foundation 3. Easy to change beneficiaries no attorneys needed & no separate tax return 4. No Estate Tax, No Income Tax and No Probate/Lawyers Fees O. Name a ministry as the final beneficiary of your IRA, annuity or 401(k) plan 1. This is wise tax planning Retirement plans are usually fully taxable to your children, family and friends but tax-free to charity, your church and various ministries 2. You should list your spouse first then add ministry along with your children 3. Communicate your plans to your family, be an example to your family 4. Easy to change or update as needs change for the cost of a postage stamp P. Give through your will or trust 1. Why limit the charitable gift to a tithe? It all belongs to God 2. Most common way of gifting to ministry at death 3. Updates and changes may become necessary as things change 4. Seek competent legal counsel; it s too easy to make a mistake doing it yourself. 48 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

28 Estate Planning from a Biblical Worldview Part Two: Planning Your Estate I. TERM DEFINED: Christian Estate Planning: Planning for the management and disposition of your property while you are alive (including if you become incapacitated) and after your death; and plan your health care if you become unable to take care of yourself based on Biblical principles and personal convictions. i.e. Christian Education II. THE NEED: We find that less than 50% write a will and leave their family in distress. How should we show love? By preparing and planning. Prov 22:3 Why? - Because, no man has power over the day of his death. Ecc. 8:8 III. BASIC PLANNING (WRITING A WILL) IS OFTEN NEGLECTED Estate planning is confusing. I don t want to think about death. I don t think I have a large enough estate. The topic is too overwhelming. The Lord is coming soon who cares? I don t know who to name as guardian. IV. GOD EXPECTS US TO PLAN Be a blessing to your children... Proverbs 13:22 An inheritance is to be expected... Proverbs 19:14 Planning leads to profit... Proverbs 21:5 The foolish man doesn t save... Proverbs 21:20 The foolish man doesn t plan... Proverbs 22:3 We should know our net worth.... Proverbs 27:23-24 V. WHO NEEDS AN ESTATE PLAN? Most adults should have an estate plan, regardless of the value of their estates. An estate plan is necessary to name the beneficiaries who will receive your property after your death. If your estate has substantial value, a good estate plan can assist in preserving your property for your heirs and reducing or eliminating federal estate taxes. Everyone should also designate the person who is to manage their financial affairs, care for them and make health care decisions in the event they become incapacitated. VI. WHAT DOCUMENTS ARE INCLUDED IN AN ESTATE PLAN? Last Will & Testament Power of Attorney for Financial Matters Power of Attorney for Healthcare Living Will (often included in Health Care Power of Attorney) Living Trust and Pour-Over Will (useful to avoid Probate & necessary in some states) The LIFE Financial Group, Inc. Serving the Christian Community Since

29 A. What is a Last Will and Testament? The Will is a legal document in which you identify the beneficiaries (people and/or ministries) who will receive your property after your death. The Will also names a person to be your personal representative to administer your estate. Your personal representative (Executer) manages your affairs and is responsible to see that your property is distributed as provided in the Will. The Will may also name the guardian(s) of your minor children, the trustee(s) of property that belongs to minor children and make specific distributions according to your wishes. Customizing your Will - Add your convictions, what s important to you? Take the time to do it right, make it count. What should it include? Your Testimony and Challenge to the heirs Charitable Planning for Ministry why limit the gift to a tithe? Provisions for Your Children at specific ages Did you forget to include any of your children? Christian Schooling or College? Guardian, Trustee & Executor Did you provide for backups? What age are they to receive the money? Proper Witness s (spouse & beneficiaries cannot witness) Memorandum listing personal assets (changed and updated by you) Self-Proving Affidavit validates that the Will is the original B. What is a Power of Attorney? This document grants one or more people the power to manage your financial affairs if you become unable to do so. The holder(s) of your power of attorney have the legal power to make binding decisions that affect your money, property, and other assets, including, paying your bills and spending your money. Without a power of attorney, your family may be required to obtain a court-supervised conservator to manage your financial affairs which is expensive and time consuming. A power of attorney terminates on your death. C. What is a Health Care Power of Attorney? This document names a person to make healthcare decisions (including mental health care decisions) for you if you are unable to make those decisions for yourself. It may contain the language of a Living Will also called an Advance Directive. D. What is a Living Will? A Living Will is a document in which you may declare that if you are in a terminal condition, you do not want your life to be prolonged and do not want life-sustaining treatment, beyond comfort care, if that treatment would serve only to artificially delay the moment of your death. E. What is a Living trust? A Living or Revocable Trust is a document containing provisions for who should manage one s financial affairs in the event of disability; who should administer the trust estate upon death; and how the trust estate should be divided and distributed after death. This Trust 50 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

30 The LIFE Financial Group, Inc. is a full-service financial advisory and wealth management firm. We teach biblical principles of stewardship along with practical applications. Roy L. Russell, CFP and President Estate Planning, Wealth Management, Tax and Advisory Services since 1978 Roy is the president and founder of The LIFE Financial Group, Inc. As a Certified Financial Planner TM and an Investment Advisor Representative for Geneos Wealth Management, Inc. (Member FINRA/SIPC), he is responsible for overseeing more than 100 million dollars of invested assets for clients around the country. Roy and the staff also actively minister in conservative Bible preaching churches around the country with their three-day Stewardship Lifestyle Seminars. Maranatha Baptist Bible College has also developed a relationship with Roy and his staff to promote financial literacy in their supporting churches. In addition, Roy is a graduate of Planned Giving Institute through the College of William and Mary in Virginia. He has taught workshops on pastors taxes and oversees the tax department at The LIFE Financial Group as well as managing his personal donor advised charity called the Institute for Biblical Endowment, a public charity though WaterStone Foundation. Roy oversees their Tax Department as they prepare taxes for families around the country. In addition to the normal preparation they specialize on giving tax counsel to reduce your tax liability in the coming years. 100% of the profits from the Tax business go back into ministry. We focus on Missions and Christian Education. He has been married for more than 30 years and has four grown children and 10 grandchildren. Roy s many hobbies include photography, sailing on tall ships, travel, waterskiing, hiking and building things for the grandchildren in his wood-working shop. He and his wife Lana attend High Point Baptist Chapel in Geigertown, PA. OTHER STAFF: There are a dozen staff members who participate in one way or another with our Stewardship Lifestyle meetings. Speakers in addition to Roy Russell will vary based on location and time of year. All profess Christ as Savior and are active in their own local church and are highly trained in financial matters. ATTORNEY: We strive to include a qualified and experienced Christian attorney to our meetings. He or she is not affiliated with us in any way. We have interviewed the attorney weeks ahead to be sure of background and qualifications. In lieu of the attorney paying us a fee for participation in these meetings we have negotiated a discount for the document preparation for the entire church. The LIFE Financial Group, Inc. Serving the Christian Community Since

31 NOTES: Our Mission Statement We exist for the sole purpose of providing professional, Biblically sound financial services, counseling and education to the Christian community. We work to build up the church by teaching, counseling and motivating believers to better manage their resources. I am the LIGHT of the world John 8:12 Our Goal To motivate individuals in applying God s principles to: Develop priorities, Give generously, Get out of debt, Invest wealth carefully, Instruct their children and grandchildren in the basics of finance, and to Include the Lord s work in their Wills and Trusts. 58 The LIFE Financial Group, Inc. Serving the Christian Community Since 1978

32 (continued from inside front cover) 3. How DOES A BIBLICAL WORLDVIEW Get DILUTED? Here is the big problem. Non-biblical worldview ideas bombard us constantly from television, film, music, newspapers, magazines, books and academia. Because we live in a selfish, fallen world, these ideas seductively appeal to the desires of our flesh, and we often end up incorporating them into our personal worldview. Sadly, we often do this without even knowing it. For example, Christians would agree with 1 Thessalonians 4:3 and other Scriptures that command us to avoid sexual immorality, but how often do Christians fall into lust or premarital and extramarital sexual sin? Is it simply because they are weak when tempted, or did it begin much earlier, with the seductive lies from our sexualized society? 4. WHY DOES A BIBLICAL WORLDVIEW MATTER? If we don t really believe the truth of God and live it, then our witness will be confusing and misleading. Most of us go through life not recognizing that our personal worldviews have been deeply affected by the world. Through the media and other influences, the secularized American view of history, law, politics, science, God and man affects our thinking more than we realize. We then are taken captive through hollow and deceptive philosophy, which depends on human tradition and the basic principles of this world rather than on Christ (Colossians 2:8). However, by diligently learning, applying and trusting God s truths in every area of our lives whether it s watching a movie, communicating with our spouses, raising our children or working at the office we can begin to develop a deep comprehensive faith that will stand against the unrelenting tide of our culture s non-biblical ideas. If we capture and embrace more of God s worldview and trust it with unwavering faith, then we begin to make the right decisions and form the appropriate responses to questions on abortion, same-sex marriage, cloning and even saving, investing and debt. Because, in the end, it is our decisions and actions that reveal what we really believe. Do not conform any longer to the pattern of this world, but be transformed by the renewing of your mind (Romans 12:2). Life is choices; Choices have consequences, Make the RIGHT choice! Please remember us in prayer and tell others about our work within the Christian community. Can we prepare your income taxes next year? Remember, all profits from our Tax business go back into ministry with the focus on Missions and Christian Education

33 God has greatly blessed us here at The LIFE Financial Group, and because of this, we want to give back to our churches and communities. For many years, we have taught Biblical principles regarding the appropriate use of money and possessions to our clients. This private training has grown into a nation-wide ministry of preaching and teaching. Here s some of the feedback that we have received from Pastors and others working in Christian colleges around the country: If We Only Heard This 20 Years Ago As an educator at a bible university for the past 30 plus years I was challenged to think through my life s role as a Steward having a responsibility to God, my family and to His church. God brought Mr. Roy Russell across my path at a critical time of decision. He has been a blessing to my family in ways that I had not considered. He helped me to reevaluate my priorities and set my financial house in order. Thanks to his ministry of teaching and applying the Word my life has been challenged in a greater way for God s glory. YOU HAVE BIBLICAL STEWardsHIP raised TO A new level When the word stewardship is used it s usually in reference to tithing. That isn t the case with the Stewardship Lifestyle Seminars. Roy Russell and his team of financial advisors have been trained in God s Word as it relates to true Stewardship. While they encourage, they also correct errors found within many families. Sometimes that s hard to take since they are dealing with such a sensitive topic. But for those seeking to apply godly wisdom, their life will never be the same. The tools provided to train up the children are exceptional! This seminar is extremely beneficial for people of all ages. YOUR encouragement WAS BEYOND BUdgeTING and WENT ON TO STrengTHEN THE MARRIage and THE FAMILY Mr. Roy Russell and his team of advisers came to our church with the intent to minister to our people demonstrating a commitment to love them by steering them to walk in the truth in regards to financial principles of stewardship. Planning should not come after a collision on an icy road but in preparation to avoid the slick conditions of economic hard times. Thanks to ministry of The LIFE Financial Group we see God s people safely navigating through God s Word and gaining practical wisdom. I especially enjoyed seeing how our families were able to use The Four Quarter Method of Stewardship and The Surprise Package Company with their children. THere WAS SO MUCH USEFUL INFORMATION and SO LITTLE TIME For over three decades Roy and his team have challenged Believers around the country to think outside the proverbial box. He brings Scripture to life and teaches with conviction about priorities. From Sunday school and morning worship through the Tuesday evening workshop about writing a Christian s Will the sessions are packed with practical tools and great techniques to manage all of God s money, not just the tithe. Many wish they could easily extend their time at the church beyond the three days. There s so much take in that some have described it as drinking from a fire hydrant. We are happy to provide names and contact information for churches andpastors around the country if interested. Please call us at (610)