In the heart of San Antonio, where traditions run deep and values are held high, a unique form of financial planning is gaining popularity. The concept is simple: aligning your financial interests with your deepest-held convictions: Biblically Responsible Investing (BRI).
Having accumulated over $500,000 of assets for investment, you may be looking for a more personalized type of financial planning that aligns with your Judeo-Christian principles vs. a more impersonal plan that does not reflect your values or beliefs.
BRI financial planning goes far beyond traditional planning services focused on numbers and ignores these values and beliefs. Your wealth should serve you and also reflect the values you believe in.
The Foundations of BRI Investing
At its core, BRI is an investment approach where decisions are made based on Biblical principles. This means aligning your portfolio with investments that resonate with Judeo-Christian values and avoiding investments that may conflict with these teachings. It’s not just about financial returns; it’s about ensuring your investments are morally and ethically sound.
BRI’s foundation can be traced back to the scriptures—many passages in the Bible reference money, possessions, and the ethical implications of our choices.
Hebrews 13:5: “Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.'”
This passage implies that contentment and trust in God’s provision should guide our financial decisions and investments.
Think of it this way: With BRI financial planning, you’re investing not just in stocks and bonds but in your beliefs, values, and the legacy you wish to leave behind.
October: A Time to Reflect and Plan
As the leaves change color and we embrace the beauty of fall, many might not be aware that October is not just about pumpkin-spiced lattes and sweater weather. October, the designated financial planning month, offers a gentle reminder to evaluate how well our investments represent our personal beliefs.
Ecclesiastes [5:10]: “Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This, too, is meaningless.”
This passage implies that a relentless pursuit of wealth can be unsatisfying while investing with purpose and meaning is to be valued.
This is the perfect time to sit down with a Certified Financial Planner (CFP ®) in San Antonio and review your financial strategy to ensure it aligns with your core values. Our team of financial advisors in San Antonio understands that you are looking for more than just returns; you want your assets to support businesses that reflect your values, especially when faith plays a pivotal role in your life.
The core elements of a BRI financial plan should:
- Focus on aligning your faith and values with companies that share similar principles.
- Stewardship planning, focusing on efficient management and responsible use of the resources entrusted to you
- Generosity and gifting strategies that align with the Biblical ethos of charity and benevolence
- Estate planning to ensure your wealth is transferred in accordance with your faith and values.
Small Business Owner? Listen to our podcast on: “The Faith, Freedom, and Financials of Small Business Impacts
Tax-Efficient Investing within BRI
It is possible to intertwine BRI principles with tax-efficient investing. Your goal should always be to maximize your capital while doing so as tax-efficiently as possible. It’s like a duet between faith and finance, both singing in perfect tune with each other.
Tax-efficient investing is about maximizing the growth of your wealth while minimizing the taxes that erode the value of your wealth. Remember, each dollar you save on taxes is another dollar diligently working toward securing your financial future so you can help others – future generations and causes you to believe in.
Following are five tax-efficient investment strategies for your consideration:
Tax-Advantaged Accounts: Maximize contributions to tax-advantaged accounts such as traditional IRAs, Roth IRAs, and 401(k) plans. Invest whenever you can in Biblically Responsible funds or securities, providing tax-free or tax-deferred growth, depending on the account type.
BRI ETFs and Mutual Funds: Consider investing in Biblically Responsible ETFs or mutual funds focusing on tax efficiency. These funds are structured to minimize taxable events while aligning investments with Christian values.
Tax-Loss Harvesting: Within a BRI framework, periodically review the portfolio to sell underperforming assets to offset capital gains when you sell appreciated assets. This approach maintains alignment with Biblical principles and helps reduce taxable income.
Gifting Appreciated Securities: Donating appreciated securities to charitable organizations can be a winning strategy. You can benefit from tax deductions while supporting causes that align with your faith. In most cases, the charitable organization you wish to support can sell the security without incurring taxes.
Diversify With Purpose: A well-diversified portfolio is a hallmark of any sound investment strategy. However, with BRI investing, diversification also means ensuring your investments are spread across sectors and companies that adhere to Biblical values.
How to Ensure Your Financial Planner Aligns with BRI Principles
When you’re seeking a financial planner who aligns with Biblically Responsible Investing (BRI) principles, you should consider a financial professional with the Certified Kingdom Advisor (CKA) certification. This certification demonstrates their expertise in aligning investment strategies with Biblical principles.
It’s also important that you understand their background, credentials, and experience. You should also ask specific questions that protect your interests:
- What are your years of experience, education, and relevant certifications?
- Are you a financial fiduciary (RIA or IAR)?
- How and what do you charge for your advice and services?
- Do you have any conflicts of interest that would impact our relationship?
- Do you have any compliance disclosures?
- How do you incorporate BRI principles into your investment advice?
- Can you provide examples of investments you recommend that align with BRI values?
Be extra cautious with planners who offer vague responses or demonstrate limited knowledge of the topic. Red flags include a need for more transparency or reluctance to provide BRI-specific resources.
An adage says, “Trust what you see, not hear.” When in doubt, ask planners for documented responses to your questions. All too often, verbal information is part of a planner’s sales pitch. By design, you have no record of what was said to you.
Ask for transparency – it’s your money!
On the other hand, a genuine commitment can be confirmed based on their active participation in BRI conferences, certifications, or affiliations with BRI-focused organizations.
Remember, your finances reflect your beliefs and the right planner will respect and understand that.
About PAX Financial Group:
At PAX Financial, we understand that financial planning isn’t a one-size-fits-all process. It’s about forging a plan that’s handcrafted to your unique circumstances. Together, we’ll dive deep, understand your aspirations and concerns, and craft a plan that helps you achieve your financial goals.
Why is a robust financial plan so critical?
- It provides a cohesive and clear overview of your long-term financial future.
- It acts as a personalized guide for different stages of your life.
- It helps you identify your financial goals and craft strategies.
Connect with the PAX Financial Group today to learn more about our BRI financial planning services.
