There is a growing trend among many people in the U.S. to use their investments as an extension of their principles and values. Many of those people use faith-based investing to make a difference in the world while pursuing their goals for financial security, comfortable retirements, and legacies for future generations.
Using biblically responsible investing (BRI) can assist you in aligning your financial decisions with your beliefs while producing a sense of purpose for your investments. Working with a financial advisor in San Antonio who understands faith-based investing can make all the difference in guiding your investment journey.
As Matthew [6:21] states– “For where your treasure is, there your heart will be also.” This verse reminds us that our investments reflect our true values. By prioritizing faith-based investments, you place your “treasure” in companies with business practices aligned with your core beliefs.
Read our newest Quick Guide: Core-satellite Investing in San Antonio
What is Faith-Based Investing?
Faith-based investing, or biblically responsible investing, is an investment approach that balances traditional financial goals, like asset accumulation and preservation, with a commitment to ethical and moral business practices.
This strategy avoids supporting companies or practices that conflict with core Christian values, such as gambling, alcohol, birth control, and defense companies. Instead, faith-based investing focuses on directing companies whose ventures reflect positive values, such as stewardship, health care, and social responsibility.
Listen to our popular podcast, “Purposeful Planning- Using Reflection to Shape Your Future.”
Why Align Your Faith with Your Financial Goals?
Proverbs [13:11] states, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.”
Aligning your investments with your faith is more than selecting the right stocks, ETFs, or mutual funds. It’s about ensuring your financial choices contribute to a legacy of positive products, services, and business practices. As the Bible reminds us, our resources are entrusted to us to steward responsibly and ethically.
Making careful, faith-conscious decisions builds a solid foundation by simultaneously reflecting the pursuit of your financial goals and moral convictions. This means you do not have to choose one or the other. If the financial firm you work with understands faith-based investing, you have both. This is critical for creating a sense of unity between your financial future and your beliefs.
Here are a few examples of how faith-based investing might look in actual practice:
- You may exclude companies involved in industries that conflict with Christian values, such as gambling, pornography, birth control, or weapons manufacturing. This practice ensures that your assets do not benefit businesses with products or services you oppose.
- Consider directing your investments toward organizations or projects with a faith-based mission, such as Christian educational institutions or humanitarian aid organizations. These investments can have a tangible impact on promoting faith-aligned objectives.
How Faith-Based Investing Can Benefit You Financially
1 Timothy [6:10] – “For the love of money is a root of all kinds of evil.”
Faith-based investing in San Antonio supports the perspective that wealth should be considered a tool rather than an end-all, encouraging using your financial resources for positive results rather than personal gain.
Beyond spiritual and moral alignment, biblically responsible investing offers several financial benefits. With the guidance of a knowledgeable financial advisor in San Antonio, you can integrate these strategies with the goal of optimizing tax efficiency, minimizing risks, and maximizing rates of return.
“Aligning Your Beliefs With Your Financial Goals”- Don’t miss this important podcast!
Tax Benefits of Charitable Giving
Matthew [22:21]: “Render to Caesar the things that are Caesar’s, and to God the things that are God’s.”
This verse is often interpreted to mean that we are responsible for fulfilling our obligations. One way to support faith-based initiatives while reducing taxable income is through charitable giving to institutions you believe in.
Donations to qualified charities or faith-based organizations are tax-deductible, potentially lowering your taxable income by a significant amount. A financial advisor can help determine how to structure charitable contributions to optimize these benefits.
Here are a few examples of charitable giving strategies:
- You can donate appreciated stocks or other assets instead of cash. This allows you to avoid capital gains taxes while still receiving a charitable deduction for the fair market value of the assets. This approach can result in a greater giving capacity while minimizing taxes and preserving other assets for your personal use.
- If you are over 70 ½ years old, you can make a qualified charitable distribution (QCD) from your traditional IRA. This allows you to donate up to $100,000 directly to a charity or faith-based organization without it counting as a taxable income distribution. The QCD can satisfy your required minimum distribution (RMD) for the year, which may also reduce your taxable income significantly if structured properly when you rely on advice from a financial advisor in San Antonio.
- A Donor-Advised Fund can be beneficial if you plan to make regular charitable contributions on an annual basis. With a DAF, you can contribute funds to a charitable account and receive an immediate tax deduction. The funds can then be distributed over time to various charities, giving you flexibility in your charitable giving. A financial advisor experienced in faith-based investing in San Antonio can help determine whether a DAF fits your overall tax strategy.
Biblical Wisdom on Responsible Stewardship
Proverbs 21:5 – “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”
Biblically responsible investing encourages thoughtful decision-making rather than hasty or emotional choices. This wisdom can help you focus on long-term, sustainable growth aligned with your financial needs and faith-based principles.
If you’re ready to align your financial life with your faith, here are some actionable steps to help you get started:
- Define Your Priorities: Identify the values that matter most to you. Whether it’s environmental care, humanitarian causes, or faith-driven missions, clarifying your values will help guide investment decisions.
- Select Faith-Aligned Funds: Several mutual funds and ETFs (Exchange Traded Funds) are now dedicated to biblically responsible investing. These funds are designed to minimize investments in companies that engage in activities contrary to Christian values and focus on businesses that positively impact people and values.
- Consult with a Faith-Based Financial Advisor in San Antonio: Working with a financial advisor in San Antonio who understands biblically responsible investing can be invaluable. These firms can help ensure that your financial goals and investment choices align with your faith while optimizing your portfolio for tax efficiency.
- Integrate Charitable Giving: As previously mentioned, charitable giving is a powerful way to align your investments with your values. Whether through regular donations, QCDs, or DAFs, charitable giving can reduce your tax burden while allowing you to contribute to causes consistent with your faith and beliefs.
Consider Partnering With PAX Financial Group
Choosing the right financial partner for faith-based investing means working with a firm that genuinely understands and respects the importance of aligning one’s finances with core beliefs and values.
As a San Antonio financial advisor, the PAX Financial Group team delivers faith-based investing strategies to individuals and families.
We are dedicated to helping you integrate your values into your investment strategy, ensuring that each financial decision reflects what matters most to you.
With a team of experienced professionals in biblically responsible investing, PAX Financial Group offers tailored guidance, support, and solutions to honor your financial goals and faith.
Let us help you invest purposefully to pursue a future that balances financial growth with spiritual integrity. Connect with us today.
