Dear Chuck,
I am going home to have Thanksgiving with family I haven’t seen in years. I was recently diagnosed with cancer. Before I met Christ, I squandered money and relationships. I’m worried about how to relate to my family again. It could be very awkward for us all.
Prodigal Son
Dear Prodigal Son,
First, I am sorry for your diagnosis with cancer but very glad you are returning home this year. Thanksgiving is a perfect time to reflect on God’s goodness and to make amends with friends and family. Before you go, ask God to prepare your heart and those you will see. And, consider the following.
I don’t know how dire your diagnosis is. But, you must be looking back on your life and considering your future. This is very healthy and will reshape your entire perspective.
A funeral company in South Korea conducts living funerals “to help people appreciate their lives and seek forgiveness and reconciliation with family and friends,” says Jeong Yong-mun. He heads Hyowon Healing Center where more than 25,000 people have “died” to learn to live.
Teenagers to retirees are participating in these living funerals. They put on shrouds, take funeral portraits, write their last testaments and actually lie in a closed coffin for ten minutes.
Professor Yu Eun-sil, a doctor at Asan Medical Center, wrote a book about death. He believes it is valuable to prepare for death even at a young age.
The Healing Center attempts to communicate to people that they matter. That happiness is in the present and that someone would miss them if they were gone.
Jeong Yong-Mun says, “We don’t have forever. That’s why I think this experience is so important – we can apologize and reconcile sooner and live the rest of our lives happily.”
Larry Burkett, Crown’s late founder, who was diagnosed with cancer as well, said that “everyone should experience a verbal pronouncement of terminal disease”. He said that it quickly puts “everything into perspective.” Even in the midst of great hardship, I hope you have experienced that blessing from your diagnosis.
God, our Provider, is generous and merciful. The future He promises for those who have put their faith in Him grants hope. When the Prophet Jeremiah was grieving, he said:
But this I call to mind, and therefore I have hope: The steadfast love of the Lord never ceases;
his mercies never come to an end; they are new every morning; great is your faithfulness.
“The Lord is my portion,” says my soul, “therefore I will hope in him.” (Lamentations 3:21-24 ESV)
To avoid or root out bitterness, seek to mend broken relationships. Verbally forgive others and ask for forgiveness. Like Paul said:
Let all bitterness and wrath and anger and clamor and slander be put away from you, along with all malice. Be kind to one another, tenderhearted, forgiving one another, as God in Christ forgave you. (Ephesians 4:31-32 ESV)
Corrie Ten Boom, author of The Hiding Place, knew pain and suffering. And, yet she clung to the Lord. She said, In darkness God’s truth shines most clear. And: There is no pit so deep, that God’s love is not deeper still.
God loves you and nothing can separate you from His love. When you cling to this fact, you can be a vessel in the hands of God to be poured out for others.
Put on then, as God’s chosen ones, holy and beloved, compassionate hearts, kindness, humility, meekness, and patience, bearing with one another and, if one has a complaint against another, forgiving each other; as the Lord has forgiven you, so you also must forgive. And above all these put on love, which binds everything together in perfect harmony. (Colossians 3:12-14 ESV)
Regarding your comment that you have squandered your finances in the past, make a plan to be generous with your loved ones to demonstrate to them that you are no longer self absorbed with money.
In everything I did, I showed you that by this kind of hard work we must help the weak, remembering the words the Lord Jesus himself said: ‘It is more blessed to give than to receive.’ (Acts 20:35 NIV)
Perhaps you can take gifts or make an effort to supply food items for the Thanksgiving meal or contribute to the costs others have undertaken to be the hosts. Your generosity will speak volumes to your family.
I pray you choose to recognize that every day you have is a gift from God, available to be spent for His glory. May this event be a turning point for you and your family. There is no greater joy than when a prodigal returns home.
Happy Thanksgiving!
Originally published on the Christian Post, November 22, 2019
Dear Chuck,
I need your advice. My husband thinks we should get an installment loan to update our home. Although we can do a lot of the labor ourselves, we need materials, tools, and some professional labor to get what we both want. I would rather save for a year, but he has time in his schedule and would like to start over the holidays. Which approach is best?
Fixer Upper Fever
Dear Fixer Upper Fever,
With the impact of the wildly popular TV program, Fixer Upper, many people are looking to make significant improvements to their home.
I was just recently in Cape Town, South Africa hosted by a Christian couple who also have “Fixer Upper Fever”. They had several books by Chip and Joanna Gaines on their coffee table and the wife told me how she hoped to travel to Waco, Texas one day for inspiration and ideas for their home!
Let me help you with that fever. There are good ways to fix up your home; those would be additions that add value. And there are bad ways to fix up your home; those would be additions that do not add value but cost time and money.
But your question is not centered around what additions you want to make as much as how you plan to pay for your fixer upper dream come true: by paying cash or borrowing money.
I want to give you some insights into the ‘installment loan industry” before I give you my advice. Installment loans are borrowed funds that are repaid in equal parts over a set period of time. They are different from credit cards or revolving credit which varies monthly. In some cases, installment loans can be creatively structured to fit your time table.
Personal loans, auto loans, and home mortgages are types of installment loans. And, there’s a rise in online installment borrowing. Many of the same subprime lenders that specialized in payday lending are now promoting online installment loans.
Americans are becoming increasingly dependent on debt. We see it in the form of unsecured personal loans, mortgages, auto, credit-card, and student debt.
After the Great Recession, many payday lenders saw the “opportunity” to meet the needs of the working class through loans that side-stepped regulations. Over a period of five years, non-prime borrowers have accumulated approximately $50 billion on installment plans.
Those of us who studied and survived the subprime mortgage crisis hear alarms at the increase in debt among the less than prime borrowers. Payday loans are perceived to target America’s poor, but these online installment loans aim for the working-class who are struggling to keep afloat.
Granted, there are times when a loan is necessary. Emergencies hit when many are unprepared. People who can borrow from a reputable institution like a credit union get interest rates that are usually much lower.
Consider the pros and cons of installment loans:
Pros
Cons
Many Americans are unable to discipline themselves when it comes to credit and spending. They buy what they want, when they want, with no concern for the future. They do not realize the real needs that exist in the future and their lack of planning will be their demise.
When Jesus addressed the crowds about the cost of becoming a disciple, he gave some vivid illustrations. This was one: For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? (Luke 14:28 ESV)
I am very encouraged that you and your husband are considering paying for your home improvement with cash. This has many benefits that we often fail to consider:
Obviously, I think you should hold off until you can pay for the project in cash. However, it is a good idea to be on the same page with your spouse. I suggest you set time aside together and ask yourselves these questions.
Before you borrow, analyze whether you can comfortably repay it on time. Since I don’t know your complete financial picture, borrowing and starting now may have advantages to you and your family that I am unaware of. Just remember, there will be unexpected expenses in your future.
Living in peace together in your fixer upper is the best plan. Don’t voluntarily bring stress into your lives that could rob you of the freedom and abundant life God designed for you to enjoy no matter how convenient it might seem to start the remodel quickly.
I’d encourage you, and any couples wanting to get on the same page about their finances, to go through the Money Dates Crown offers. You can access them for a donation of any amount or for free! You’ll also gain access to a library of other resources and courses – check it out on Crown.org now!
Originally published on the Christian Post, November 15, 2019
Dear Chuck,
I want to replace my mother’s clunker and am considering financing a new one. My father died unexpectedly and I want her to hold onto what little savings she has. What would you do?
Taking Care of Mom
Dear Taking Care of Mom,
It is wonderful that you are helping your mom. Many widows feel vulnerable and alone. Unfortunately, they are often targets of scams or get ripped off when navigating unfamiliar financial choices, such as buying a car.
I understand your desire to see your mother in a safe vehicle. It would be helpful to know her age, but apart from that, answer a few questions before you decide that another vehicle is necessary. Is the clunker reliable? If so, is it safe? Does it have airbags, good tires, etc? How often does she drive? How much longer will she be driving? Are there better options for transportation available to her?
Our emotions can overrule logic. My dad bought my mom a new car in her later years. They always kept two new cars throughout their lives. Mom hardly ever drove but felt safer in a new model. When she passed earlier this year, she owned the car for two years and it had only 9,000 miles on the odometer. Dad ended up selling it to a family member at about an $8,000 loss.
As much as you want to help your mom, especially after a sudden loss, I would discourage buying a new vehicle.
I know how strong those emotions can be! When I open the door to a new car and breathe that new leather smell, my “want factor” jumps off the chart. The auto industry is extending loans to 72 or 84 months. The down payment may remain the same, but monthly payments drop and are a temptation for the most sober-minded buyer.
But, Oren Weintraub, president of AuthorityAuto.com, sees long car loan terms as a set up for a “vicious cycle of negative equity.” Dealers focus on selling you the monthly payment but the overall cost is ignored. Just because people qualify for a long-term loan doesn’t mean they should get one. In fact, the shorter the loan, the more quickly one can build equity in a car. Equity means someone could sell the car and have cash rather than owing money on it. Negative equity means if you sold the car it would not pay off the balance of the original note.
Facts About America’s Auto Loan Debt
I do not want to drive something off the lot that immediately depreciates. That’s why I buy used vehicles and pay cash for what I can afford. This allows someone else to pay for the initial depreciation, and pass along the savings to me. The higher registration fees have been covered too, because they are based on a car’s value and model year. And, used cars can be much less expensive to insure.
However, used cars may not have a warranty, which is acceptable when buying a model with a good reputation. Many vehicles today won’t need repairs until driven well over 100,000 miles.
Since I’m typically short on time and don’t have the know-how or tools for repairs, I only buy dependable vehicles that hold their value. One-owners with service records are my favorite and I’ve bought several.
I use Carfax to learn about the vehicle (service history, accidents, flooding, hail damage, retitled etc). VIN numbers (vehicle identification number) reveal things like failed emissions tests, rolled back odometers, flooding, number of owners etc.
My preference is to know why the owner is selling so I don’t buy at auctions or cars that were acquired by the dealer at an auction. And, I value the opinion of a trusted quality mechanic before purchasing.
Only buy used cars with clean titles. Some insurance companies will not offer a policy for full coverage on a rebuilt title. And, future resale can be affected.
For more tips, check out these articles at Edmunds:
100+ tips for Used-Car Shoppers
Your mom may need help managing her income and savings to ensure she will be adequately provided for in her remaining years. Your first priority is to help her budget whatever income and savings are available. Losing money on a new car, especially one that is financed, is a step in the wrong direction.
If at all possible, keep the clunker well maintained and running for as long as possible. Larry Burkett said: I drive a car till it turns to dust, then I sweep up the dust and ride on the dust.
We laugh at that, but if you discuss this logically with your Mom, you may discover that she wants to keep her clunker a little longer. In the meantime, you can save and find a reliable used car that can be purchased with cash.
Luke 14:28 says, For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it?
Encourage your mother to establish an auto maintenance fund in her budget to cover routine maintenance and repairs. Regular service prevents the cost of major repairs and is helpful for resale.
I advise people to start a new car account while driving their current vehicle. Simply deposit monthly payments on a future car to avoid the expense of financing one in the future.
God bless you and your Mom. I hope you are able to give her helpful guidance with this input.
Originally published on the Christain Post, November 8, 2019
Dear Chuck,
I keep reading about experts predicting that a recession is coming. What do you think? Although I am getting ready, what is your advice to help me ride it out?
Getting Ready
Dear Getting Ready,
Of course a recession is coming! They are inevitable; we just don’t know when or if we will even be here to experience it. Our nation has survived recessions in the past. Those who plan ahead typically weather them well, and even come out ahead!
Warren Buffet once famously said, “Predicting rain doesn’t count; building arks does.” I have some practical and Biblical advice that will help you.
A recession is simply a contracting of the economy or period of correction from over-expansion. Technically it means:
A rapid increase in the unemployment rate may indicate that a recession is in progress. Other red flags may occur like the current global recession in manufacturing, impacted by the trade war. Here is an article with a much more detailed definition.
Since we know two things – a recession is certain to come and opportunities will exist – I will give my advice according to the 4 P’s.
Anticipating a recession, we can set goals, make clear plans and escape emotionally-driven decisions made in fear. I like to say that planning is the antidote to fear. Since we have had lots of time to plan, (an unprecedented span of continuous economic growth since 2009), there should be nothing to fear when the correction occurs.
In Genesis 41, God reveals the meaning of Pharaoh’s dreams to Joseph with a plan on how to prepare for the future. They would have seven years of plenty followed by seven years of famine. They were to gather and store grain for Pharaoh as a reserve against the years of famine. Pharaoh saved 140% of the grain to prepare for the economic collapse. This goal was reached by saving 20% each year for 7 years.
If you have not been gathering and building your financial reserve, it’s time to begin.
Preparation will reduce fear and stress. Let the facts overrule emotions. God is sovereign and completely in control regardless of the economy. So, trust Him, stay or get active in a local Bible-believing church, and serve the body of Christ.
The name of the LORD is a strong tower; the righteous man runs into it and is safe. A rich man’s wealth is his strong city, and like a high wall in his imagination. (Proverbs 18:10-11 ESV)
Whoever trusts in his riches will fall, but the righteous will flourish like a green leaf. (Proverbs 11:28 ESV)
Recovery from recessions can take months and sometimes years. Try not to dwell in self-pity. Rather, choose to be grateful. Support your church and give to the less fortunate. Stay in the Word and look for opportunities to share the gospel during potentially difficult times.
Rejoice in hope, be patient in tribulation, be constant in prayer. Contribute to the needs of the saints and seek to show hospitality. (Romans 12:12-13 ESV)
Also, be patient to look for investment opportunities. As prices fall, this may be a great time to purchase more stocks, buy distressed real estate or invest in a business whose competitors are struggling during the recession. This is when wise stewards often make their biggest financial long term gains.
My friend, Rusty Leonard, of Stewardship Partners, was trained under the legendary investor, Sir John Templeton. He was taught that the best time to buy a public stock is at the point of peak pessimism and the best time to sell is at the point of peak optimism. How true it is; but we typically due the opposite as we get tossed about by our emotions.
Since no one knows exactly when either of these peaks occur, be sure to seek Godly wisdom before buying or selling anything of value.
Recessions are a time to exercise what we believe. Read the Word, pray for wisdom and discernment, listen to the Lord and trusted individuals, and take action.
We should all practice Biblical financial principles whether we experience a recession or not. When we plan, are prepared, avoid panicking and operate with patience, we can minister to those who are frightened and take advantage of new investment opportunities.
Originally published on the Christian Post, November 1, 2019
Dear Chuck,
I’ve been socking away money in a 401(k) account for years. I’ve tried to live like the ant in Proverbs. I have no plans to retire any time soon, but I may take some of the money to pay off credit card debts that accumulated during my wife’s health issues. I want to tithe on any money I withdraw. What is the rule for tithing on retirement accounts?
Tithing on 401(k)
Dear Tithing on 401(k),
Congratulations on ”living like the ant” and saving money for your retirement! The Proverbs teach us in two separate references that this is a habit of the wise. (Proverbs 6:6, 30:5). You now have some options, so let’s consider what is best for you.
I’ll make some assumptions about your age and income in order to offer practical advice, but obviously adjust based on your actual circumstances. We’ll assume that you are in your early 60’s, still healthy, enjoying your work and able to earn a full time salary well into the future.
I would not be quick to pay off a credit card using money in your 401(k). Most people are concerned with how to maximize a 401(k). There are rare situations where paying off debt with a 401(k) makes sense. It is important to know the facts.
Early withdrawals are subject to income tax plus a 10% penalty. And, the amount you take out of your account could put you into a higher tax bracket.
If you have a loan with an interest rate above 18%, borrowing might make sense. But calculate your interest costs versus tax penalties and have a knowledgeable person run the numbers before you decide to withdraw. I would only choose this option after you have considered the alternatives.
Hopefully, you have an emergency savings account apart from your 401(k). We recommend that this is 3-6 months of your monthly income set aside in a bank account that you can access without penalty. It would be my advice to use those funds to pay off your credit card debt, then set up a plan to rebuild it as your first priority. This will be far less expensive.
For anyone struggling with overwhelming credit card debt, I highly recommend Christian Credit Counselors. You start with a free debt analysis and their team of experts will help you reduce your interest rates, consolidate your payments, and create a payoff plan. Their proven process can get you out of debt up to 80% faster!
You should also consider these tips:
A 401(k) account is retirement money that you should avoid accessing. If you withdraw money once, you may be tempted to do it again. So, pray for guidance!
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. (James 1:5 ESV)
If and when you withdraw funds from your 401(k), you tithe a percentage of the earnings on your account, not the original deposited amount. This assumes taxes and tithes have already been paid on the principal amount. For instance, if you deposited $500 each month out of your salary for one year, a year in which you were already tithing on your gross income, you would not tithe on the withdrawal of $6,000 in your 401(k). However, if that money has earned $600 through investment returns, you would tithe on that portion only, if you withdraw more than you originally deposited.
Tithing is not a law, but a physical demonstration of our commitment to God. He established the tithe as a readily identifiable sign of our sincerity. It is a means by which we gratefully acknowledge our Provider. Please do not make tithing a legalistic requirement or treat it like a tax. God loves a cheerful giver. You are free to give all of your 401(k) as the Lord leads or to adjust your amounts according to your personal convictions.
For those trying to pay off debt, I recommend giving now even if only a dollar a week. God is more interested in our hearts than in any actual gift amount. Although there is no punishment if we fail to tithe, there is a loss of blessings. We should seek to honor God with our whole heart and acknowledge His ownership of all that we have.
I believe Scripture is clear that He established divine priorities for how Christians are to handle money. We are to give first and save second. This sounds like a habit you have established in your life.
Even those who live paycheck to paycheck and put all extra income towards paying off debt should attempt to cut other expenses and start giving. It may not be 10% at first, but a gift in any amount establishes a grateful heart and a stewardship mindset. It shows that we understand that all we have has come from the Lord.
Honor the Lord with your wealth and from the firstfruits of all your produce. (Proverbs 3:9 ESV)
Giving as the top financial priority actually helps people make better financial decisions and avoid materialism. Giving is good for your health and finances!
Thank you for your heart to honor the Lord. I hope you can pay off your credit card debt without having to access your 401(k). If you have to get into those funds, I trust the Lord will lead you to give cheerfully as you honor Him. Keep living like the ant and working as unto the Lord in all you do!
Originally published on the Christian Post, October 25, 2019.
Dear Chuck,
Giving is a problem for me. I’m playing catch-up for retirement and fear that giving will prevent my having enough for the future. How can I balance my desire to give with my need to be saving more?
In a Conundrum
Dear In a Conundrum,
Many American Christians find themselves in a similar dilemma; a lack of savings has caused a lack of generosity. Thank you for your transparent question as it goes right to the heart of the matter for all of us – the intersection of fear and giving.
Fear is a tactic of our enemy. He uses it to keep us in bondage and deprive us of joy.
It is common to worry about job security and whether we can pay the bills. We live with uncertainties, so we ask ourselves: will we be able to afford the cost of medical services, assisted living, or help our children with higher education? How will negative interest rates affect portfolios? Will the stock market crash?
There’s a growing mania for buffering ourselves against any possible future event. This causes us to believe that giving will bring harm to our financial well being and erodes our faith. But unless we depend on God, we’ll be like the man who built his house upon sand:
Everyone then who hears these words of mine and does them will be like a wise man who built his house on the rock. And the rain fell, and the floods came, and the winds blew and beat on that house, but it did not fall, because it had been founded on the rock. (Matthew 7:24-25 ESV)
Our faith must be rooted in Jesus Christ, not in material security. A stock pile of money, no matter the amount, can be substituted for the sand while Jesus is the rock in this illustration.
Fear of the future can drive us to many other problems as well:
So, I ask a simple question that our late founder, Larry Burkett, would often ask: Do you really trust God, or do you just say that you trust God? And I would add, can you willingly set aside your fear in order to obey what He says about giving?
James shouts a clear warning against locking ourselves inside the fortress of wealth. He wants us to overcome fear with faith and make giving to His Kingdom our top priority.
Come now, you rich, weep and howl for the miseries that are coming upon you. Your riches have rotted and your garments are moth-eaten. Your gold and silver have corroded, and their corrosion will be evidence against you and will eat your flesh like fire. You have laid up treasure in the last days. Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, are crying out against you, and the cries of the harvesters have reached the ears of the Lord of hosts. You have lived on the earth in luxury and in self-indulgence. You have fattened your hearts in a day of slaughter. You have condemned and murdered the righteous person. He does not resist you. (James 5:1-6 ESV)
Just as the love of money, not money itself, is the root of all kinds of evil, James is not saying that it is wrong to possess wealth.
But, as stewards, we have a responsibility to manage God’s resources. We either become rich towards self, piling up treasure in our fortresses of false security or we become rich towards Him, the only real source of protection. It is the war waged within every soul.
If you struggle with giving, literally being rich towards God, maybe you are controlled by money and fear of your financial future. Remember, the Bible is full of admonitions to give. It’s an act of obedience that demonstrates money has no power over us.
Maybe overwhelming credit card debt is what’s preventing you from giving right now. The burden and strain you feel from your debts can rob you of the margin to give generously and live with freedom. If you need help, I want to encourage you to contact Christian Credit Counselors. They’ve been our trusted partners for years and can help you pay off your credit cards the right way.
In his book Set Apart: Calling a Worldly Church to a Godly Life, Kent Hughes says: “Every time I give, I declare that money does not control me. Perpetual generosity is a perpetual de-deification of money.”
Giving is God’s plan to guard our hearts from the love of money and to put our faith into practice. We declare that our trust is in Him, not in our bank account.
No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money. (Matthew 6:24 ESV)
Fight with focused determination to win the battle within your soul. Life here is temporary, but what we give has eternal value. Consider Paul’s words to Timothy:
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)
I hope you will choose to give this week. And, begin storing up treasure in heaven! God will take care of you one day at a time. Your faith will ultimately prove of greater value than any amount of silver or gold you could have ever saved on earth.
Originally published on the Christian Post, October 18, 2019
Dear Chuck,
My best friend’s mother was a victim of financial fraud. She lost most of her retirement savings. I’ve read about Bernie Madoff and his Ponzi scheme but I’m concerned for the vulnerable people I know. What can I do to protect my family and those I love?
Afraid of Fraud
Dear Afraid of Fraud,
I hate hearing of another victim of fraud. Unfortunately, I have counseled numerous people through the years that have been scammed. We live in a day and time when dishonest people have more ways to access seniors, veterans, the military, even faith-based organizations for financial gain.
The Bernie Madoff scheme made international news a decade ago. He pled guilty to the largest Ponzi scheme in history after successfully swindling investors out of $65 billion. That was considered by some an “affinity fraud” as it was primarily a Jewish person using inherent trust to deceive others in the Jewish community.
I had friends who were deceived by Tom Petters. He was convicted of 20 criminal counts and sentenced to 50 years in prison for running a $3.65 billion Ponzi scheme. But, he relied on others to keep it going. The New Republic reported how an accomplice of his used donations to get to the hearts and wallets of those in Christian and political circles. It’s an educational article and worthy of your time.
Affinity fraud is insidious because it is built upon the assumption of trust through being a part of or affiliated with some common group or cause. Greed and lust for dishonest gain is at the root of fraud, but it is often hard to detect.
The SEC says affinity fraud exploits the trust and friendship that exists in groups of people who have something in common. Fraudsters use different methods to gain access to groups, often using key leaders to promote their scheme. Respected individuals make the scam more believable. Unfortunately, they may not realize an investment is a fraud until after they’ve recruited others.
Many investment scams are known as Ponzi or pyramid schemes, named for swindler Charles Ponzi who orchestrated one in 1919. Here is an important tip to help you keep your guard up: most ponzi schemes have some similarities.
Guaranteed promise of high returns with little risk
Consistent flow of returns regardless of market conditions
Investments are not registered with the SEC
Investment strategies are confidential or too complex to explain
Clients are not allowed to see official paperwork for their investment
Clients face difficulties removing their money
The Department of Insurance, Securities and Banking lists ways to avoid being a victim and recommends asking these questions before investing.
Basically, don’t allow greed to overrule logic. If it sounds too good to be true it probably is.
Upon hearing a presentation, do your homework, even if you know the person making an investment pitch. They may be a friend or respected individual. Regardless, research his or her background and the investment itself no matter how trustworthy the deal or the promoter may appear.
NEVER invest solely on the recommendation of someone from any group you belong to, in person or online.
Beware investments with “guaranteed” returns or those that claim to be risk-free. These are red flags!
Run from anything you’re told to keep confidential! NEVER give into pressure for any “sure deal.” Take 24 hours to pray, research and possibly report to authorities!
Recent affinity fraud schemes have been collected and described by the SEC. They include fraud that targeted Christians, military veterans, African-American investors, the Hispanic community, Cuban exiles, and others. The more you learn about fraud, the more equipped you’ll be at protecting yourself.
The Bible teaches: The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty. (Proverbs 21:5)
Any investment made in haste can be dangerous. Always pray, research, and consult wise counselors to reduce your risk of becoming a victim of affinity fraud. And, pass this information along to friends so they know how to protect themselves!
I counseled and encouraged a widow through a similar circumstance as your best friend’s mother. She invested her life savings in a “too good to be true” scam that promised great returns through her retirement years. It turned out she was one of hundreds of seniors this group had fleeced. Although devastated emotionally and fearful for her future, she relied upon God to work it for good. She went back to work, hired an attorney, and led a group of other victims to pursue justice. They were able to see the scammer prosecuted for his crime and over time recover almost 60% of their original investment which was remarkable considering most often victims experience a total loss.
Thank you for writing. Keep your guard up, ask the Lord for discernment and do not worry about becoming a victim. The Lord will guide you and watch over you even in the worst of circumstances.
Originally published on the Christian Post, October 11, 2019
Dear Chuck,
I have 3 teenage daughters. For years, my wife and I have prayed for Godly spouses for them. But, looking at the young men in the world today, we are beginning to pray more specifically. We’re asking God to provide husbands who are good stewards. Can you give us an idea of what we should look for in a suitor when the time comes?
Praying Mom
Dear Praying Mom,
What a great question! Many young people never consider their financial preparedness for marriage and typically start off under great pressure and stress. They find it difficult to understand each other’s perspective on money and suffer many challenges as a result.
Fox 5 Atlanta published an article last month on declining marriage rates. They cite a study that suggests a link between this decline and the lack of financially stable men. Interestingly, they state:
Not being financially stable is a major reason given by 41 percent of never-married adults who would like to get married in the future as to why they have not already done so.
Your prayer is a valid one! And, one that I hope more parents will adopt. In addition, we should pray that our children desire to be good stewards themselves regardless of whether they marry or not. We should model stewardship in our homes and teach them appropriately.
There are several things to look for in potential mates. Priorities reveal a lot. How do they use their time? What do they treasure? Are they grateful people or do they feel entitled? Do they have debt? If so, how much? What is their financial philosophy? Have they discussed their credit scores?
We all have a philosophy about money. It’s the compilation of our thoughts, ideas, plans, dreams, concepts, beliefs, and principles that together dictate our actions. God designed us to act upon what we believe. So, if we believe the wrong things about money, we are bound to behave wrongly as well. But, if we believe the right things about God, His plan, and His purpose for marriage and finances, it will change everything–from your credit score to your eternal rewards.
In marriage, philosophies must align with God and each other. A couple needs to speak the same financial language. They need to prioritize the same things. They need to have each other’s back.
Ideally, two people, regardless of their personalities, are bearing the fruit of the Spirit. They live in submission to God, desiring to be conformed into His image. They intentionally live by the Apostle Paul’s directive in Romans 12:2:
Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect.
That said, here are some basics for you and your girls to look for in potential mates.
I have counseled many couples on how to align their beliefs about money with God’s Word. This is the beginning point of finding common ground to truly become one. In my own life and marriage, it was 21 years before we realized that we needed a biblical philosophy of money. Once I learned God’s principles of finances, my wife and I were able to find agreement about spending, saving, giving and investing. We developed a unified way to make decisions together, to create a plan and goals, and eventually we started to function as a team, which led us to far greater results and joy in our relationship with God and each other.
This discovery of getting on the same page with God’s principles of stewardship was such an important part of our lives that we wrote a book about it. We share our pain, our mistakes and how God led two very opposite people to become one in the area where we struggled the most. Our book is called, Money Problems, Marriage Solutions. It is helpful for couples considering marriage or for those who, like us, have been married a long time but are struggling to work together on their finances.
It is wise to be praying now that God will lead your daughters to find a spouse that is a good steward. This will give you and your daughters peace that when the Lord answers this prayer, their financial future will be guided by the truth of God’s Word. In addition, I suggest that you concentrate on helping your girls become good stewards of their resources now. This will give them the ability to identify those that have similar beliefs and behaviors.
When they have understood and practiced these things, they will easily know if the person they are interested in is like-minded.
Originally published on the Christian Post, October 4, 2019
Dear Chuck,
I am burdened with the terrible things I hear in the news. I’ve become anxious and wake up worried in the middle of the night. I’m especially struggling with the fear of not having enough money in the future. I grew up in poverty and have worked hard to avoid that for my family. How can I feel more secure about the future in times like these?
Fearful
Dear Fearful,
Thank you for your honest confession. Many live in fear of their financial future but deny it and continue to silently struggle.
My father grew up in poverty as well. Like you, he worked hard to provide for his family.
We lived in a government housing project early in my life. But Dad worked long hours, went to college in the evenings, became a CPA, and made many sacrifices in an attempt to give us a secure future.
Statistics are grim and that breeds fear. Since nearly 40 million households have no retirement savings, The Employee Benefit Research Institute estimates a nationwide retirement savings deficit of $4.3 trillion. Society has instilled in us the idea that we need to make a financial plan before it’s “too late.”
People worry about job security and whether they can pay the bills. As Larry Burkett used to say, “the ‘what if’s’ will rob us of all joy.” What if I can’t afford the cost of medical services, assisted living, or help their children with a college education? What if negative interest rates happen and hurt my portfolios? What if the stock market crashes? These types of negative scenarios are endless.
Many Christians literally rob God and sometimes their families as they live in the cycle of fear and worry. The growing mania for buffering ourselves against any possible future event is straight from the deceiver. Jesus told us to build our house on rock (Himself) and not sand (the world).
Everyone then who hears these words of mine and does them will be like a wise man who built his house on the rock. And the rain fell, and the floods came, and the winds blew and beat on that house, but it did not fall, because it had been founded on the rock. And everyone who hears these words of mine and does not do them will be like a foolish man who built his house on the sand. And the rain fell, and the floods came, and the winds blew and beat against that house, and it fell, and great was the fall of it. (Matthew 7:24-27 ESV)
This parable points out the futility of placing our confidence in money. When our sand castle of affluence comes tumbling down – and it will – our faith had better be founded in the person of Jesus Christ – not in material security.
If you suffer any of these symptoms, I must ask a simple question: Do you really trust God? Circumstances are uncertain for all of us. God designed it this way so we would learn to become dependent upon Him.
Our thoughts impact emotions. We must choose to surrender our fear of the future each day. Otherwise, unrealistic expectations or “what-if” scenarios will cause you (or me) chronic anxiety. God is trustworthy and loves us beyond comprehension. He promises to work all things together for good for those who love Him and are called according to His purposes. (Romans 8:28)
In Hebrews, we read of those who surrendered their will and acted on faith in God. They were rewarded by Him – but not the world.
So, regardless of how well you’ve planned for the future, you must trust God with it all one day at a time.
I pray that these simple steps are helpful to you and that they help to put your worries at ease. But most of all, I pray that as you grow to trust God more and more every day, you become deeply assured of the security that you have in Him. Trust Him to be your provider and protector through life’s uncertainties. God is faithful even if all the money is lost. Ultimately, your faith (confident trust in Him) will prove of greater worth than silver or gold.
Originally published on the Christian Post, September 27, 2019
Dear Chuck,
I can’t wrap my head around negative interest rates. What does this mean for my savings accounts in the bank? Can you help me figure this out?
Confused about Rates
Dear Confused,
You are not the only one who finds this a challenge to understand. Simply put, it inverts the model that we have known and practiced for years: putting savings (money) in the bank to earn interest not to pay interest!
Negative interest rates have historically been used to combat deflation. Finance writer Justin Kuepper explains,
“…deflation causes people and businesses to hoard cash rather than spending and investing it, which reduces demand for products and services and puts downward pressure on prices. Lower prices can lead to reduced profits and less economic growth, which in turn leads consumers to hoard even more cash.”
The European Central Bank introduced a negative interest rate policy in 2014. The Bank of Japan did it in 2016. Bloomberg reports that negative rates have been available on short-term mortgage bonds in Denmark since May, but only recently made directly available to consumers.
Now, Denmark’s third largest bank is offering a 10-year fixed-rate mortgage at an interest rate of negative 0.5%. Other lenders there are offering 0% on a 20-year fixed-rate and 0.5% on 30-year fixed-rate mortgages.
Why is this seemingly upside-down practice gaining ground and may be coming to the US? Nervousness about the economy. There’s uncertainty in the US-China trade war, Brexit and a generalized economic slowdown.
Lise Nytoft Bergmann, the chief analyst at Nordea’s home finance unit in Denmark, reflects:
It’s an uncomfortable thought that there are investors who are willing to lend money for 30 years and get just 0.5% in return. It shows how scared investors are of the current situation in the financial markets, and that they expect it to take a very long time before things improve.
“The goal of negative interest rates is to put economic stimulus on steroids.” Policy makers and bankers are incentivizing you and I to stop saving and do more spending or investing.
Neuberger Berman for Seeking Alpha reports:
What we have learned so far from the short history of NIRP (Negative Interest Rate Policy) is mixed at best. Economies that implemented this policy approach experienced an initial bounce in financial conditions, economic activity and inflation dynamics, but the gains did not last long. Considering such middling results, we are left wondering whether we are witnessing the limitations of monetary policy…
John Tobey at Forbes reports that negative interest rates are already here as evidenced by the loss in the dollar’s purchasing power.
So, a $100,000 investment in July 2009 would have grown to $105,076 by July 2019. However, $1.00 in July 2019 dollars is worth only $0.823 in July 2009 dollars. That means the current $105,076 investment is worth only $86,480 in 2009 dollars, a purchasing power loss of $13,520.
I believe that negative interest rates means those that are trying to jump start the economy have very limited options remaining or this would never happen. However, there are always two sides of the coin to consider.
Pros:
Cons:
How will the government address future problems? How will negative rates impact taxes?
My friend, Jerry Bowyer, offers an informative look at Theories Driving Economics Today. It’s worth the read.
If our government could build consumer confidence we would see real economic stimulus. But, in light of America’s political and cultural polarization, questionable journalism practices, and fear that policymakers have very limited options at their disposal, that may be difficult to achieve.
If your financial institution implements a negative interest rate policy that impacts your existing savings, remember the following:
Regardless of what happens with interest rates and monetary theory, we must keep our eyes focused on the Lord, walking in humility, integrity, and faith.
Thus says the Lord: “Let not the wise man boast in his wisdom, let not the mighty man boast in his might, let not the rich man boast in his riches, but let him who boasts boast in this, that he understands and knows me, that I am the Lord who practices steadfast love, justice, and righteousness in the earth. For in these things I delight, declares the Lord.” (Jeremiah 9:23-24 ESV)
Originally published on the Christian Post, September 20, 2019
