040: Biblical Investing—Where Does Growth Come From?

Matthew 25:14  For the kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods. 15 And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. 16 Then he that had received the five talents went and traded with the same, and made them other five talents.

In the parable of the talents we read that the faithful servants doubled their master's money by trading. As we seek to increase the wealth God has entrusted us with today, where should we look?

 

In This Episode, We Look At:

Interest rates are very low in recent years and we certainly wouldn't turn the banks seeking to grow our money.

With the best savings account interest rates of around 1% and long-term inflation rates averaging 3%; the math is simple. An attempt to grow wealth through bank interest rates will result in the rapid reduction of buying power.

The Equities Markets

When planning for the future, investing money to increase its future value is not only logical, but almost necessary.

Investing certainly provides the potential for incredible growth of our assets. It also opens the door to potential pitfalls, snares, and destruction—mostly from investor behavior.

Growth comes from the markets themselves, not from investing gurus or by following suggestions from financial TV shows.

Emotions Can Work Against Us

Our instincts are to flee pain and pursue pleasure. This is wonderful when dealing with lions, and tigers, and bears (Oh, my!), but harmful when it comes to investing in equities. We expect volatility and endure it–not try to avoid it.

When markets move downward and the media highlights the fall, nervous investors are tempted to follow their fear and sell when values are down—thus suffering a loss.

Investing in equities (stocks) is a long-term discipline. It's helpful to know that the S&P 500 has a long-term expected rate of return of about 10%. Even with all the downturns in history, it has made up for down years to achieve this average.*

*For Educational purposes only. Seek the guidance of a licensed investment advisor prior to investing any of your own money.

Past performance is no guarantee of future results. Investing in stocks involves volatility and the potential of loss of capital.

 

Today's Resources and Links:

www.TimRosen.tv for more information on prudent investing.

 

One Thing You Can Do Today to Improve Your Faith and Finances:

Consider tuning out the media, especially when it comes to the stock market and the economy. You will normally not receive prudent answers to investing questions, nor receive peace of mind.

 

What Are Your Thoughts?

If you have a question or comment about today's topic, we invite you to share your thoughts.

Matthew 25:14  For the kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods. 15 And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. 16 Then he that had received the five talents went and traded with the same, and made them other five talents.

In the parable of the talents we read that the faithful servants doubled their master's money by trading. As we seek to increase the wealth God has entrusted us with today, where should we look?

 

In This Episode, We Look At:

Interest rates are very low in recent years and we certainly wouldn't turn the banks seeking to grow our money.

With the best savings account interest rates of around 1% and long-term inflation rates averaging 3%; the math is simple. An attempt to grow wealth through bank interest rates will result in the rapid reduction of buying power.

The Equities Markets

When planning for the future, investing money to increase its future value is not only logical, but almost necessary.

Investing certainly provides the potential for incredible growth of our assets. It also opens the door to potential pitfalls, snares, and destruction—mostly from investor behavior.

Growth comes from the markets themselves, not from investing gurus or by following suggestions from financial TV shows.

Emotions Can Work Against Us

Our instincts are to flee pain and pursue pleasure. This is wonderful when dealing with lions, and tigers, and bears (Oh, my!), but harmful when it comes to investing in equities. We expect volatility and endure it–not try to avoid it.

When markets move downward and the media highlights the fall, nervous investors are tempted to follow their fear and sell when values are down—thus suffering a loss.

Investing in equities (stocks) is a long-term discipline. It's helpful to know that the S&P 500 has a long-term expected rate of return of about 10%. Even with all the downturns in history, it has made up for down years to achieve this average.*

*For Educational purposes only. Seek the guidance of a licensed investment advisor prior to investing any of your own money.

Past performance is no guarantee of future results. Investing in stocks involves volatility and the potential of loss of capital.

 

Today's Resources and Links:

www.TimRosen.tv for more information on prudent investing.

 

One Thing You Can Do Today to Improve Your Faith and Finances:

Consider tuning out the media, especially when it comes to the stock market and the economy. You will normally not receive prudent answers to investing questions, nor receive peace of mind.

 

What Are Your Thoughts?

If you have a question or comment about today's topic, we invite you to share your thoughts.