People with strong religious and spiritual faith may be wondering if their beliefs can integrate with their finances. It can! A CERTIFIED FINANCIAL PLANNER™ Professional specializing in Biblically responsible investing and faith-based investing in Texas can help you understand how.
Ask These Faith-based Questions When Selecting Your Ideal Texas Financial Advisor.
1. Be a good steward of your money and resources.
Money and resources by themselves do not create greed and wrong-doing. That’s what makes faith so transformational. The free will power within you determines how you perceive wealth and where you apply it. Being responsible and grateful for your assets and learning to give and receive is the pillar of good financial stewardship.
Taking good care of one another with what you are given matters most.
How can you apply this to your daily financial life?
It can include (but is not limited to):
- Applying yourself industriously to your job or profession
- Being mindful of what you have (tracking income and expenses faithfully)
- Setting goals for your financial life (buying a home or investing for your retirement)
- Giving to charity or organizations that help the less fortunate in your community
- Setting up estate and inheritance plans that pass assets to the next generations
A financial advisor who uses faith-based principles can help you manage your money month-to-month or help you realize your short- and long-term goals to live within your means. They can help you map out the financial livelihood of your family legacy. Faith-based firms in Texas can also help you diversify a portfolio after investigating what faith-based investments align with your truths.
2. Invest in accordance with your beliefs.
Investing strategies can vary dramatically among investors in Texas. Long-term financial goals, such as planning for retirement, may require strategic asset allocation. A faith-based financial professional can help you build and maintain a golden nest egg, providing you safety as a retiree.
Biblically responsible investing is in many ways a subset of social values investing (SVI), in which people invest only in companies that reflect their values. There are many ways to do this.
Mutual funds are one option: this is an investment vehicle that invests in the stock of many companies rather than just one. Many mutual funds have been set up that align with specific religious faiths and promise to follow the tenets of those faiths.
Screen for companies that participate in activities or sell goods contrary to faith-based beliefs and do not purchase them. Companies that are engaged in gambling, alcohol consumption, stem cell research, predatory lending, unfair labor practices, and more, for example, can be removed from your options.
Another method is to research companies that act in accordance with your beliefs. Some folks may feel that environmentally conscious products or practices fulfill the acts of good stewards of the earth. Others may want to invest in cruelty-free products that promote abundance and help the needy.
Faith-based financial planners will ensure that your investments fit your financial situation, meeting your criteria for reward and risk.
- Reward is the amount of appreciation an investment can reasonably expect to return, such as stock appreciation or bond/savings account interest.
- Risk is the chance that a given investment will drop in value, such as declines in the stock market.
Investment portfolios are usually divided between stocks, bonds, and cash instruments like certificates of deposit (CDs) to manage reward and risk.
Rest assured that all investments and wealth-building efforts are made in accordance with your beliefs.
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3. Consider the next generation in financial planning.
Faith-based investors may also want to consider their legacy. Providing for the next generation and community is integral to your financial life.
- A comprehensive financial advisor will discuss your plans for the next generation. Do you want to contribute to educational savings for them, for example?
- Comprehensive financial plans include providing for you and your family in terms of risk. If you have dependents, you may want to consider life insurance to provide for them in the event of your death. You should also consider having health insurance to ensure the continued good stewardship of your body. Your significant assets, such as your home, possessions, and vehicles, can be insured as part of good stewardship.
- Comprehensive financial planning includes estate planning: setting up a plan for your assets after you pass, either through a Last Will & Testament or a trust. Either method can ensure that your heirs will receive the assets of your preference. You can also leave assets to charity or community organizations as an act of goodwill.
Estate planning is crucial for good stewardship – it’s about giving. If you depart without an estate plan, your assets could be tied up in probate court for months or years. Your spouse or other dependents may have no way of accessing your assets until the court process is complete. Removing any confusion or family discord regarding inheritance is also an act of kindness.
DO YOU HAVE AN ABUNDANCE MINDSET? FIND OUT WITH PAX FINANCIAL GROUP, LLC!
How can I integrate my faith with my finances?
Contact a financial advisor in San Antonio to begin.
We are a team of CERTIFIED FINANCIAL PLANNER™ Professionals that specialize in faith-based investing. We focus on comprehensive financial planning to help individuals and families with investment management, retirement planning, estate planning, and insurance (health and life). We are fee-based and will never charge a commission.
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This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Biblically Responsible Investing(“BRI”) involves, among other things, screening for companies that fit within the goal of investing in companies aligned with biblical values. Such screens may serve to reduce the pool of high performing companies considered for investment. Investing involves risk. BRI investing does not guarantee a favorable investment outcome. PAX Financial Group has conducted due diligence for their Biblically Responsible Investing (BRI) process and proudly serves as each client’s advocate using fully vetted third-party specialists for the administration of BRI methodology. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product and should not be relied upon as such.
