For many individuals and couples, faith is a guiding principle for all aspects of their lives, including financial decisions. Spiritual stewardship takes the values they hold dear and reflects them in their investments, helping them align their investments with their core beliefs.
Biblically responsible investing is an approach that prioritizes financial results alongside spiritual integrity. It ensures that your hard-earned savings support causes and companies consistent with your values.
The Bible contains numerous calls for stewardship and wise resource use. One particularly powerful passage is 1 Peter [4:10], which says, “Each of you should use whatever gift you have received to serve others as faithful stewards of God’s grace in its various forms.”
This verse reminds us that our resources, including our financial ones, are gifts we are meant to manage responsibly, impacting our personal lives and the greater good.
At PAX Financial Group, our team of San Antonio financial advisors is committed to applying Judeo-Christian values to ensure that your portfolio reflects your faith and financial goals.
The Importance of Stewardship in Investing
Think about this: it’s not just about the numbers on your investment statements. Equally important is knowing that your wealth is invested in ways that reflect your values and faith. For example, if you believe smoking is hazardous, you may not want to invest in tobacco companies.
Biblical stewardship is the deep understanding that we are caretakers of the resources that are entrusted to us by God. In the context of investing, it means managing money in a way that honors God and reflects His teachings.
Ask yourself this:
- Does my wealth support what I believe in?
- Are my investments promoting values I hold dear?
You can hear more about this topic on one of our recent podcasts, “Aligning Your Beliefs with Your Financial Goals,” in which we discuss integrating your faith into financial decisions while using your wealth to foster positive change.
Aligning Your Investments with Personal Values
There is a cultural shift toward growing wealth to reflect your values and beliefs. Using faith-based investing, you can create a portfolio that avoids industries conflicting with your principles, such as gambling, tobacco, or alcohol. Instead, your investments can be directed toward sectors like technology, renewable energy, or healthcare, which often align better with long-term growth and ethical considerations.
Faith-based investing doesn’t have to mean sacrificing diversification or potential returns. Even with exclusions, it’s possible to maintain a well-rounded portfolio that balances geographic and asset class exposure. While some may worry about limiting investment opportunities, many have found that aligning their financial strategies with their beliefs brings more significant purpose and personal fulfillment.
Giving with Impact: Using a Donor-Advised Fund
Another way to express your stewardship is to use charitable giving to give back while optimizing your tax situation. One tool to consider is donor-advised funds (DAFs).
With a DAF, you can contribute appreciated investments—such as stocks—and immediately benefit from a tax deduction. This also avoids capital gains taxes on the donated assets.
Once in the fund, the resources grow tax-free and can be distributed to causes that align with your values, whether a faith-based nonprofit, a local ministry, or another meaningful organization.
This approach supports causes close to your heart and reduces your taxable income in the years contributions are made, making it a win-win for your finances and your generosity.
Planning a Faith-Based Legacy
Think of how hard you’ve worked to create a lasting legacy for your loved ones and causes you care about. Now, imagine if you didn’t have a documented plan that lays out how you want your assets to be transferred once you pass. Without a comprehensive estate and legacy plan, your efforts could get tied up in expensive probate for years, exposing your loved ones to potential legal expenses and taxes. Estate and legacy planning is a powerful way to combine financial stewardship with charitable giving.
Is a Charitable Remainder Trust (CRT) Right for You?
Another strategy toward financial stewardship is to consider using a Charitable Remainder Trust (CRT) as part of your estate or legacy plan if you want to balance economic needs during your lifetime with meaningful charitable giving.
A CRT is particularly effective if you have highly appreciated assets, such as stocks or real estate, that you wish to sell without triggering significant capital gains taxes. It can also be beneficial if you’re looking for an additional income stream during retirement or seeking to reduce your taxable estate to lessen the burden on heirs.
A CRT is worth considering if you want to support causes that align with your values, secure tax benefits (such as an immediate charitable deduction), and ensure that your wealth continues to make an impact after your lifetime.
This is where the services of a San Antonio financial advisor can be of assistance so you can align your financial stewardship, estate planning strategy, and philanthropic priorities.
Practical Strategies for Faith-Based Investing
In a recent PAX podcast episode, we shared practical tips for people interested in faith-based investing. If this fits your beliefs, here are a few actionable strategies you can use to begin incorporating faith into your investment decisions:
- Charitable Contributions through Your Portfolio
Giving is central to spiritual stewardship and can be woven directly into your investment strategy. By setting up a donor-advised fund (DAF) or making qualified charitable distributions (QCDs), you can use investment earnings to support ministries, charities, or other causes aligned with your faith. This way, your investments grow wealth and contribute to causes close to your heart.
- Tax-Advantaged Accounts for Faith-Based Goals
Another way to practice stewardship is to use tax-advantaged accounts aligned with your long-term faith-based objectives. For example, a health savings account (HSA) can allow you to save and grow funds tax-free for future health expenses, support health-related missions, and ensure you have resources for medical needs in your late retirement years.
- Legacy Planning and Wealth Transfer
Spiritual stewardship extends beyond our lifetimes. Legacy planning allows us to pass on our values and wealth to the next generation. By setting up trusts or other legal instruments, you can ensure that a portion of your wealth is directed toward faith-aligned causes, establishing a legacy of generosity and responsibility.
Closing Thoughts
1 Corinthians 4:2 – “Now it is required that those who have been given a trust must prove faithful.” As stewards of God’s resources, we are entrusted with managing wealth in ways that reflect our commitment to faith.
At PAX Financial Group in San Antonio, we help you align your financial life with your spiritual values. We guide you through biblically responsible investing strategies with a personalized approach. Let’s work together to create a portfolio that reflects your values, supports your faith, and builds a lasting legacy.
Connect with us to learn more about our faith-based investment services.
