Net Worth & Retirement Session 13 Session Summary: In this session, Ron Blue shares a Biblical perspective on net worth in contrast to a secular perspective. Ron discusses net worth as the sum of every financial decision that a person makes, which can be quantified and, therefore, measured on a periodic basis. Ron also discusses the importance of answering the question, How much is enough? and how Christian financial advisors can lead their clients in answering this question. I. Preview II. Perspective and Paradigms III. Principles and Precepts (Biblical Wisdom) IV. Processes and Understanding V. Personal Convictions (Biblical Philosophy) VI. Practice (Client Counsel) Session 13 Kingdom Advisors Training 1
I. PREVIEW To Know: 1. Every financial decision ultimately impacts net worth. 2. Net worth is the one number that can be and therefore measured on a period-to-period basis. 3. My net worth is the sum total of every financial decision that I have ever made. 4. The question How much is? can always be answered. 5. How much is enough? will change over time. To Believe: 1. How much is enough can be determined. 2. How much is enough for me? is the real question. 3. One cannot accumulate enough to feel financially a. Secure b. c. Successful 4. Net worth is always and only a measurement of God s and never a measurement of success or significance. To-Do Behavior: 1. Quantify your personal lines. 2. To be able to lead clients to answer the question How much is enough? for themselves personally. 3. To be able to use net worth to free up Kingdom financial resources. II. PERSPECTIVE AND PARADIGMS The World s Perspective on Net Worth: 1. Protection 2. 3. Hoarding 4. Time is an 5. No limit on accumulation 6. Mine Session 13 Kingdom Advisors Training 2
III. PRINCIPLES AND PRECEPTS Biblical Wisdom: Provisions vs. Protection But if anyone does not for his own, and especially for those of his household, he has denied the faith, and is worse than an unbeliever. (1 Timothy 5:8 NKJV) Where does wealth come from? Unless the LORD builds the house, they labor in vain who build it; unless the LORD guards the city, the watchman keeps awake in vain. It is vain for you to rise up early, to retire late, to eat the bread of painful labors; for He gives to His beloved even in his sleep. (Psalm 127:1-2 NASB) What does this mean? Do not weary yourself to gain, cease from your consideration of it. When you set your eyes on it, it is gone. For wealth certainly makes itself wings, like an eagle that flies toward the heavens. (Proverbs 23:4-5 NASB) Implications? Security vs. giving, etc....from everyone who has been given much shall much be required; and to whom they entrusted much, of him they will ask all the more. (Luke 12:48 NASB) Free to Enjoy Moreover, when God gives any man wealth and possessions, and enables him to enjoy them, to accept his lot and be happy in his work-this is a gift of God. (Ecclesiastes 5:19 NIV) Time is a Tool Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your will be also. (Matthew 6:19-21 NIV) Session 13 Kingdom Advisors Training 3
IV. PROCESSES AND UNDERSTANDING Implications: 1. Every spending affects net worth 2. Net worth is the sum total of every spending decision ever made 3. Delayed gratification 4. Growth in net worth is an objective measurement of progress in meeting long term objectives 5. Financial independence and are not the same thing Session 13 Kingdom Advisors Training 4
6. Primary determinants a. Lifestyle b. c. Taxes 7. Role of passive income 8. What are the implications of accumulating more than enough? a. Investing b. Giving V. PERSONAL CONVICTIONS Ron s personal convictions on Net Worth: 1. You cannot accumulate enough to financially secure, significant, or successful. 2. How much is enough will differ for every family and is a number that should be determined prayerfully. 3. How much is enough will change over time as change. 4. Net worth is always and only a measurement of God s provision. Session 13 Kingdom Advisors Training 5
VI. PRACTICE Client Counsel Objectives: 1. To lead clients to answer the question How much is enough? a. Quantitatively b. Emotionally c. 2. Hold Please take the time to complete your first pass at your own personal convictions related to this session on the Personal Convictions Worksheet. Session 13 Kingdom Advisors Training 6