Dear Chuck,

My wife and I have lived frugally from the day we married. As a result, we have no debt, except for low monthly house payments. Could you give me some advice on proper goals for our long-term investing?

Senior Investors 

Dear Senior Investors, 

Congratulations on your good stewardship. It is a joy to offer you counsel from a Biblical perspective, with a few tips of my own. 

Goal setting is a necessary prerequisite to effective investing. Each of us is expected to wisely manage the money God puts in our hands. However, we are warned not to make money the object or purpose of our lives. 

“Do not toil to acquire wealth; be discerning enough to desist.
When your eyes light on it, it is gone,
for suddenly it sprouts wings, flying like an eagle toward heaven.”

(Proverbs 23:4–5 ESV)

We should seriously pray, seek wise counsel, and decide where we want to end up financially. Although money should not be an end in and of itself, it is a tool to be used to accomplish short and long-term goals. 

Perspectives on Investing

Seekingalpha.com defines long-term investing as a strategy of buying and holding investments for a period of over 10 years. They list the following benefits:

• Cost savings – Infrequent trading helps reduce fees and commissions.
• Time savings – It does not require frequent research or trading, so the investor saves time in the long run.
• Tax advantages – Accounts such as IRAs and 401k plans grow tax-deferred, allowing for greater growth over time.
• Compounded growth – Growth is accumulated through reinvesting dividends, capital gains, and interest.
• Risk/return – Dollar-cost averaging over many years smooths out short-term fluctuations. 

A Gallup poll conducted in April shows that Americans rank the best long-term investments as follows:

• 36% – Real estate
• 22% – Stocks or mutual funds
• 18% – Gold
• 13% – Savings or CDs
•  4% – Bonds
•  3% – Cryptocurrency

Risk

A general rule is that the closer you get to retirement, the less you should put at risk. Diversify, for we cannot predict the future. As King Solomon wisely penned in Ecclesiastes: 

• “Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.” (11:2 ESV)  
• “In the morning sow your seed, and at evening withhold not your hand, for you do not know which will prosper, this or that, or whether both alike will be good.” (11:6 ESV)

A certain level of risk is involved. In Matthew 25, the stewards put their master’s money to work and were commended. How you pursue your long-term goals will ultimately depend on your temperament and your personal tolerance for risk. 

Avoid Procrastination 

According to a 2023 Bankrate survey, more than half of working Americans think they’re behind where they should be with their retirement savings. More than one in three say they are “significantly behind” on their retirement savings. One in four have not contributed to retirement in over a year. Only 16% feel they are ahead of where they should be in contributing to their retirement plan, including 6% who feel “significantly ahead.” 21% feel they are right on track. “Compared to our survey about a year ago, there has been no progress on this front. Those closer to retirement age are among those feeling this sense of urgency the most,” said Mark Hamrick, Bankrate Senior Economic Analyst. Check out Bankrate’s retirement plan calculator. 

Here are several reasons for investing that need to be determined before setting goals:

• Funding education for children/grandchildren.
• Saving for retirement needs. 
• Inheritance provision for family, church, and specific organizations.

Goals must:

• Conform to Biblical principles. (Proverbs 24:3–4)
• Be written down. 

As you establish goals, check your motivation, and consider the following:

• Are you actively seeking to honor the Lord with your money?
• Do you have a vision for how and where God wants you to use this money?
• Do you know why you are investing?
• How do you plan to prepare your family to manage their inheritance?
• Have you determined which organizations will wisely steward the funds you want to give them? Do they have good management and a solid mission statement, vision, and legacy? How are they impacting the Kingdom? 

The most important thought to consider is how to invest in eternity. Don’t let the things of this world dim your vision of your eventual destination.

“Do not lay up for yourselves treasures on earth,
where moth and rust destroy and where thieves break in and steal,
but lay up for yourselves treasures in heaven,
where neither moth nor rust destroys and where thieves do not break in and steal.
For where your treasure is, there your heart will be also.”

(Matthew 6:19–21 ESV)

Store up treasures in heaven. It is the one investment that guarantees rewards!

“As for the rich in this present age, charge them not to be haughty,
nor to set their hopes on the uncertainty of riches,
but on God, who richly provides us with everything to enjoy.
They are to do good, to be rich in good works, to be generous and ready to share,
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.”

(1 Timothy 6:17–19 ESV)

Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.

This article was originally published on The Christian Post on July 12, 2024.