INTRO:
“The prudent see danger and take refuge, but the simple keep going and suffer for it.”
-Proverbs 27:12
stew•ard n. 1.One who manages another’s property, finances, or other affairs. 2: a complete lifestyle, a life of total accountability and responsibility acknowledging God as Creator and Owner of all.
Once one chooses to become a disciple of Jesus Christ, stewardship is not an option.” - Unknown
Biblical Reference: (Mathew 25:14-30) Parable of the Talents… God takes stewardship Seriously!!! In (Proverbs) there are countless scriptures that Deal with Money, Foolishness, Work Ethic, Laziness, Wealth & Prosperity, Diligence & Faithfullness.
TOO BAD OUR CULTURE AND OUR GOVERNMENT HAVE BEEN IGNORING THEM….WE ELECT OFFIFICIALS AND LEADERS AND EXPECT THEM TO BE GOOD STEWARDS… BUT THEY DON”T EVEN KNOW WHAT THAT MEANS.
Wisdom: wis•dom n. 1: The ability to discern or judge what is true, right, or lasting. 2: A wise outlook, plan, or course of action. 3: the trait or ability to utilize knowledge and experience with understanding, common sense and insight 4: the quality of being prudent and sensible
Biblical Reference:
(PR 21:20) 20 The wise have wealth and luxury, but fools spend whatever they get. – NLT
(PR 14:8) 8 The wisdom of the prudent is to understand his way: but the folly of fools is deceit.—KJV
Prudence: pru•dence n. 1: Careful management to economy. 3: attentiveness to possible hazard, caution to danger or risk. 5: discretion in practical affairs 6: knowing how to avoid embarrassment or distress
Synonyms: prudence, discretion, foresight, forethought,
These nouns refer to the exercise of good judgment, common sense, and even caution, especially in the conduct of practical matters. Prudence is the most comprehensive: Discretion suggests wise self-restraint, as in resisting a rash impulse Foresight implies the ability to foresee and make provision for what may happen: Forethought suggests advance consideration of future eventualities
Biblical Reference:
(PR 27:12) 12“The prudent see danger and take refuge, but the simple keep going and suffer for it.” — NKJV
(PR 14:15) 15 Only simpletons believe everything they are told! The prudent carefully consider their steps.-NLT
(PR 14:8) 8 The wisdom of the prudent is to understand his way: but the folly of fools is deceit.—KJV
Understanding: un•der•stand•ing v. tr.
1: To perceive and comprehend the nature and significance of.
2. To know thoroughly by close contact or long experience with
3. To have understanding, knowledge, or comprehension.
4. Characterized by or having comprehension, good sense, or discernment.
Biblical Reference:
(PR 23:23) 23 Buy truth, and do not sell it, Get wisdom & instruction and understanding. –NASB
(PR 3:4-6,9-10) -4 So shalt thou find favour and good understanding in the sight of God and man. 5 Trust in the LORD with all thine heart; and lean not unto thine own understanding. 6 In all thy ways acknowledge him, and he shall direct thy paths …9 Honour the LORD with thy substance, and with the firstfruits of all thine increase: 10 So shall thy barns be filled with plenty, and thy presses shall burst out with new wine. — KJV
“If a person gets his attitude toward money straight, it will help straighten out almost every other area in his life.”
-Billy Graham
Annuit Coeptis - "May God have favor on our undertaking" - In reference to the All seeing Eye of God overlooking the structures of Man... Unfortunately, MAN doesn't seek GOD first before undertaking projects or dealing with money, MAN says, "I WILL do ____ , and God please Bless it" Instead of "God, what will you have me do, so that I am walking in your will and it will be Blessed"
Making Money Is American.
we put "IN GOD WE TRUST" on our money, but most times it is MONEY that is the god we trust.
American’s Attitude towards MONEY is pitiful: we put “IN GOD WE TRUST” on our MONEY, but Money IS the god we trust.
How Important is This?
62% of all seniors retire at or under $10,000 a year income.
50% retire at or below the poverty level
55% of people worry about money “always”
80% of divorced couples report money as the #1 problem leading to divorce
What are the Biggest Problems People Face Today?
1. Longevity
2. Aging Baby Boomer Population
3. Long Term Care
4. Healthcare
5. Market Downturns
ELDER KENIEVAL does not look to positive about his lack of PLANNING for retirement, given the impending RETIREMENT GRAND CANYON JUST LISTED is IN FRONT OF HIM!!
. LONGEVITY: Longevity is the number one risk facing retirees today.
Unfortunately, most people don’t even realize it… It Is A Real Danger.
Social Security is in trouble Pension Plans are draining companies financially.
– Current Average Life Expectancy in the U.S. has risen to 84-male and 87-female. A 65 yr. old has a 25% chance of living to age 94 or beyond
– Many people are living longer in retirement than they live working, this issue is the number one factor that affects everything else. People are simply Living Longer than ever before…
2. Aging Baby Boomer Population
– Approx. 78 million people will begin moving into the Social Security system, beginning in 2008.
Just 3 yrs. from now!
“…Social Security and Medicare face long-term financing gaps that could fuel huge budget deficits and stop the economy in it’s tracks…”-Alan Greenspan
Those 78 million will be forced by the IRS to begin taking RMDs when they turn 70 ½. This applies to those with 401K’s or IRA’s.
*NOTE: I GAVE THIS SEMINAR IN 2005
1986 Erissa Laws changed from Defined Benefit to Defined Contribution.
401K : Many People not saving enough
What is an RMD ?
– Required Minimum Distribution (RMD)
– Account Value ÷ Life Expectancy = RMD
Problem:
More Taxes + Higher Tax Rate + SS Tax = UGLY
Many people take RMD + 30% and find that their account depleted by their mid 80’s, this assumes a 5% return many are invested in Stocks and Mutual Funds. A market downturn can make it run out even sooner.
*HELLOOOOO : RECENT ISSUES ARE PROOF I WAS RIGHT
3. LONG TERM CARE:
– 43% of all people over the age of 65 will need care at some point in their lifetime.
– The avg. length of a stay in a nursing facility is 2-1/2 yrs.
– 83% of all people who go into a nursing facility end up at poverty level within
one year.
– This affects virtually every senior in America, yet few have done anything about it
4. HEALTHCARE: Assumption: People can retire comfortably on 70% to 80% of your pre-retirement income.
Reality: Sky-rocketing health care cost means you’ll probably need 100% of your current income. “Out of pocket” expenses are topping $11,000 a year. Large companies are expected to reduce health care benefits by as much as -40%.
Health care costs are rising 14% annually. They need to have saved $163,000 using a 5% medical inflation rate to $702,000 using the current 14% rate (just for medical expenses alone)… … This doesn’t even take into account Long Term Care…
5. MARKET DOWNTURNS:
– Market downturns at the beginning of retirement (65 – 75) can significantly reduce how long a retiree’s nest egg will last.
– This fact gets ignored when retirees estimate how long their money will last using an average rate of return.
– Most people do not first consider the recovery of their principal before investing in vehicles that put their assets at risk.
When does -30+43=0 ?
$100,000 – 30% = $70,000
$70,000 + 30% = $91,000
$70,000 + 42.8572% = $100,000
A 30% downturn at the beginning of retirement requires a 42.8572% return to recover. The average mutual fund return is 4.5% per year over time. There are more funds than companies to invest in. It would take 10 years without another negative market of average returns just to get back to where you started if you suffered this kind of loss… each loss is even tougher to recover.
A 30% downturn at the beginning of retirement requires a 42.8572% return to recover.
Two-Thirds of Brokerage Firms Continued to Recommend Failing Companies
Among the 30 brokerage firms that covered companies filing for bankruptcy between September 1 and December 31, 2002, 66% continued to recommend that investors buy or hold companies right up until the day that company filed for Chapter 11.
What’s Wrong with Mutual Funds? Most people don’t even know what they have invested their money in, let alone have any control over their own money. He says that it comprised of“GOOD PEOPLE IN A BAD SYSTEM.”
– Arthur Levitt ( Former SEC Chairman for 17yrs and 17yr Wall Street Broker and Author of ” Take On the Street: What Wall Street and Corporate America Don’t Want You to Know. What You Can Do to Fight Back.”
2/3rds of all Brokerage Firms continued to recommend and even sell stocks of failing companies, even up to the day they filed for Bankruptcy… A problem that WALL STREET has is that 1. if your Broker knows that a company has problems and he tells you to move money – it’s called insider trading – U and He goes to Jail 2. If he doesn’t know what is going on inside the company, and they fail… you still LOSE … Still wanna play thatInvesting without Education IS gambling!
The THEE Legged stool of RETIREMENT, (Pensions are GONE, 401(k)’s are losing value, and Social Security has no security and is already broke)… So how will you plan for and fund your RETIREMENT? .. go ahead an INSERT YOUR LIFE SAVINGS FACE UP… and PULL THE LEVER.
Warren Buffet: didn’t buy 1 stock in the stock market from 1992-2002 He Said “…stocks were too expensive”
Worlds Greatest investor Couldn’t find anything to invest in, yet millions of first-time investors and their advisors did. Nov. -11 ‘02 Fortune
“The prudent see danger and take refuge, but the simple keep going and suffer for it.”
-Proverbs 27:12
“Listen to counsel and receive instruction, That you may be wise in your latter days.”
- Proverbs 19:20
WHAT CAN YOU DO? DEFENSIVE ASSET PLANNING.
– People need to make certain they don’t run out of money in retirement, even more important than investment planning.
– Trillions have been lost in retirement dollars in the bear market. Meanwhile, Wall Street says, “Ride it out, stay focused long term, the market will come back.”
– Some do not have the time to wait for the stock market to climb back…whenever that might be.
What Should YOU Do? PUT GOD FIRST… Then seek to Understand HIS ways concerning money, Be Prudent, Sensible, Understanding, Be a Good Steward.
You need an investment strategy that encompasses three main goals:
1. Protect retirement savings.
2. A contractually guaranteed level of income, regardless of lifespan.
3. Make certain they don’t run out of money while in retirement.
What Does a Doctor Do When You Go To The Emergency Room?
Stabilizes The Bleeding (the losses).
That’s What You should Do Financially.
Most Financial Plans Are Not Designed Against Loss.
Most are not constructed so that people never run out of money in retirement.
Most plan designs do not consider the effects of income taxation.
Most people are not absolutely certain of these things, they need to be educated.
“The prudent see danger and take refuge, but the simple keep going and suffer for it.”
-Proverbs 27:12
“Listen to counsel and receive instruction, That you may be wise in your latter days.”
- Proverbs 19:20
WHAT CAN YOU DO? DEFENSIVE ASSET PLANNING.
– People need to make certain they don’t run out of money in retirement, even more important than investment planning.
– Trillions have been lost in retirement dollars in the bear market. Meanwhile, Wall Street says, “Ride it out, stay focused long term, the market will come back.”
– Some do not have the time to wait for the stock market to climb back…whenever that might be.
What Should YOU Do? PUT GOD FIRST… Then seek to Understand HIS ways concerning money, Be Prudent, Sensible, Understanding, Be a Good Steward.
You need an investment strategy that encompasses three main goals:
1. Protect retirement savings.
2. A contractually guaranteed level of income, regardless of lifespan.
3. Make certain they don’t run out of money while in retirement.
www.catalistfinancial.com
FAILING to PLAN your Retirement is PLANNING to FAIL in Retirement
If you are WISE, PRUDENT, and UNDERSTAND what you are doing, you are exercising GOOD STEWARDSHIP and will MAKE IT OVER THE GRAND CANYON of RETIREMENT. WOOooooo HOOOooooo!!!!
Which ROAD will you take : WISDOM or Foolishness.
Bottom Line:
Matthew 6:33 (King James Version)
“But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.”
There is a LOT to worry about, and to be concerned about, but if YOU seek God first and not things, if you put your TRUST in Him instead of Money, and if you are a faithful steward over what you have been given, then he will bless you, protect you, keep you safe.
Matthew 6:1-4 – Giving to the Needy
1″Be careful not to do your ‘acts of righteousness’ before men, to be seen by them. If you do, you will have no reward from your Father in heaven.
2″So when you give to the needy, do not announce it with trumpets, as the hypocrites do in the synagogues and on the streets, to be honored by men. I tell you the truth, they have received their reward in full. 3But when you give to the needy, do not let your left hand know what your right hand is doing, 4so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you.
Mathew 6:19-34 – Treasures in Heaven
19″Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. 20But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. 21For where your treasure is, there your heart will be also.
22″The eye is the lamp of the body. If your eyes are good, your whole body will be full of light. 23But if your eyes are bad, your whole body will be full of darkness. If then the light within you is darkness, how great is that darkness!
24″No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.
Do Not Worry
25″Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? 26Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27Who of you by worrying can add a single hour to his life[b]?
28″And why do you worry about clothes? See how the lilies of the field grow. They do not labor or spin. 29Yet I tell you that not even Solomon in all his splendor was dressed like one of these. 30If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you, O you of little faith? 31So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32For the pagans run after all these things, and your heavenly Father knows that you need them. 33 But seek first his kingdom and his righteousness, and all these things will be given to you as well. 34Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.
FOR MORE BIBLE SCRIPTURES ON MONEY: CHECK THIS OUT: NOTE ON MONEY – CLICK HERE
FOR A PERSPECTIVE IN DEPTH ON THE HEALTHCARE ISSUE AND SOCIAL INSURANCE / WORLD VIEW IMPACT on OUR ECONOMY, CHECK THIS OUT: NOTE ON SOCIAL INSURANCE & OUR ECONMY: CLICK HERE
