This Faith in Finance podcast is underwritten in part by Praxis Investment Management. Since 1994, Praxis has offered investment products designed to meet the practical needs of everyday investors while supporting positive change through impact strategies that go beyond screening. Guided by faith values, Praxis strives to make a positive impact on the world. Learn more at PraxisInvests.com. What if your portfolio could help advance justice, compassion, and human flourishing?
I am Rob West. Aligning your investments with your faith isn't just about avoiding harm. but actively shaping the world around you for good. Stella Ty joins us to talk about how investors are putting their values to work in the marketplace. And then it's on to your calls at 800-525-7,000.
That's 800-525-7,000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, Stella Tai is the Stewardship Investing Impact and Analysis Manager at Praxis Investment Management, an underwriter of this program. Stella oversees how the company delivers faith-based impact. Through its investment practices, especially in support of underserved communities. Stella, great to have you back with us. Thanks for having me, Rob.
Stella, Praxis recently released its latest impact report that reveals how Christian investors can help shape a more just and compassionate world. Why is it important to lay that out in a report? That's a good question Rob Shaping a more just and compassionate world is something that's important to many investors, particularly those of faith. Our impact report is all about showing how Christian investors can spark real-world change. And we want to be open about where money goes.
and how it's used.
So each year We share how our seven impact strategies, which we call Impact Techs, are used to lift up underserved communities, to encourage responsible business practices. and to bring faith into financial decision making. The reason we share real stories of impact It's because we hope that these stories inspire others. to see their investments as powerful tools to make a difference. And when our faith matches our money, It's amazing to see what we can accomplish together.
Well, there's no doubt about that. And there are several interesting stories in this report. Stella, one involves shareholder advocacy with Nike. Talk about what Praxis is doing as you speak into a company like Nike. Praxis doesn't shy away from addressing task issues in large companies.
We're part of an investor coalition urging Nike to strengthen human rights protections in the supply chain. And as you may or may not know, Rob, Nike employs over 1 million people globally. including many in vulnerable regions.
So we advocate for binding labor agreements, for wage theft prevention, for greater accountability. And we are seeking to protect workers from exploitation. and ensuring that their dignity as God's children is respected. Yeah. That is powerful, Stella.
Let's talk about a few other stories, particularly around sugar. Companies like Coca Cola and Nestle have been a part of your engagement. What is Praxis concern here? Yeah. We believe in pressing for ethical improvements where the need is urgent.
These companies often source sugar from India, where child labor and wage theft. are ongoing issues. And so we push for third party audits. for transparency and ethical hiring so investors don't just make returns but help uplift the most vulnerable workers. For praxis.
Honoring the dignity of all people is central, and investor voices can drive real-world change. Stella, it is amazing what you are able to accomplish through the power of these investment dollars as you engage with the largest companies in the world. I suspect there's some listeners out there saying, I believe in these issues. I love that you're trying to address them. How does that work practically?
What does this look like? Yes, investors have a voice in the investments that they hold. If they're holding public companies, They do have a voice through shareholder advocacy and through proxy voting. And so we use that. power given to us by our investors to vote on their behalf through various coalitions.
Stella, that's amazing. If listeners want to check out this impact report, where can they go to get it? Sure. The report is on our website at praxisinvest.com and they can go there, they will find it. Excellent.
We're talking today with Stella Ty. She's Stewardship, Investing, Impact, and Analysis Manager at Praxis Investment Management, an underwriter of this program. When we come back, Impact in Communities and Positive Impact Bonds. That and much more with Stella Tai just around the corner. Following this interview, your questions today at 800-525-7000, stay with us.
We'll be right back. At FaithFi, we believe that money is a tool to advance God's kingdom. When you become a FaithPhy partner, you help more people discover the freedom of biblical stewardship and the joy of seeing God as their ultimate treasure. As a thank you, you'll get early access to our newest studies and devotionals, our quarterly Faithful Steward magazine, and the pro version of the FaithFi app. Become a Faith 5 partner with your gift of $35 a month.
or $400 a year at faithfy.com slash partner. We are grateful for support from Praxis Investment Management. Since 1994, Praxis has offered investment products designed to meet practical needs for everyday investors seeking to steward their assets consistent with their desire to promote positive social and environmental impact. Praxis aims to bring a faith-based approach to ETFs, mutual funds, multi-fund portfolio solutions, and money market accounts, reflecting their 500-year-old Anabaptist Christian faith tradition. More information is available at PraxisInvest.com.
Thanks for joining us today on Faith and Finance. Can investments really serve the common good?
Well, Praxis Investments says absolutely, and they're talking all about it in their new impact report. You'll find it at praxisinvestments.com. With me today, Stella Tai. She's Stewardship Investing Impact and Analysis Manager at Praxis Investment Management, an underwriter of this program. Stella, we're talking about some of the findings, some of what you're sharing in this impact report.
And I want to shift to something you call positive impact bonds. You made some new purchases this quarter. Tell us what stands out. Yes, we're excited to invest in the World Bank IDA program bond. which are focused on fighting extreme poverty with real measurable results.
We also added green and sustainable bonds from Freddie Mac. which expand affordable housing and environmental stewardship. These bonds enable communities to flourish. Thank you. New jobs.
cleaner air, increased access to healthcare and housing. all while providing competitive financial returns. And Praxis' commitment is to the inclusion of investments that create both economic and social value to the best of our ability. That's really exciting work, Stella. You know, there's also a beautiful community story in this report about a clinic in Miami.
I'd love for you to share that story. Sure. The story we share is about always keep progressing and this is a therapy center that serves children with special needs. With investment through our community investing partner, Calvert Impact, The clinic has expanded and is now helping over 400 families. This is Praxis' vision in action, where we see capital transforming lives and dollars becoming a source of care and hope.
Redemptive investing, I believe, is about fostering genuine human flourishing and not just financial gain. I love that term, redemptive investing. Stella, can you share some of the ways this is being accomplished in the industry and perhaps some of those companies you're partnering with? There are many players in the industry. And some that come to mind right away are what we call Community Development Financial Institutions, that's CDFIs.
Or even credit unions, community development credit unions. And especially with CDFIs, these are organizations that are in our communities all around the US.
Some of them work internationally. And their focus is on issues of serving the community. whatever the community needs are that are unmet so you might think perhaps small businesses that do not have access to capital. or support systems that really help them well. You might think areas of the country, whether it's urban areas or rural areas.
that don't have Access. the quality health care. And so these organizations are served at financing.
Some of those industries or sectors that are really hidden from view in the marketplace. Yeah. And is this taking place here in the U.S. and internationally? Give us a sense of the scope here.
Yes, yes. Alia, we talked about Calvert Impact. That's one of our community investing partners. And they are all over the US. There are many, many CDFIs and organizing entities that are helping CDFIs really.
access capital so that they can serve communities.
So if they are interested, they can go online and do a search and find CDFIs right in their own communities. Yeah. I think, Stella, this conversation really points to this larger momentum right now that's happening in what we call faith-based investing, where Christians are becoming aware that they can truly align their values as Christ followers with their deployment of capital. Are you and the team seeing that momentum? Yes, Rob, we are very excited.
I believe that Christians are naturally aligned with faith-based investing. Because scripture calls us to to care for our neighbor. To careful groups of people, that's widows, that's the Yeah. That's the foreigner. That's the often.
And any time that we have an opportunity where our investments or our finances can be aligned with our faith values, that's something that's really encouraging.
So we're definitely very excited about the industry.
Well, it's a concept that a lot of people are becoming increasingly aware of and I think very excited about. There's also an element, and we touched on it, related to proxy voting. Share with us why proxy voting you believe is also a spiritual issue. Yeah. For praxis, proxy voting is a form of stewardship.
It is an act of corporate discipleship really. And we vote on critical issues such as labor rights, climate action and executive compensation. And by voting our shares, we are speaking truth and speaking justice in the marketplace. Our faith calls us to love, mercy, and do justice. And proxy voting is really one way for us to turn conviction into corporate influence.
Yeah, that's exactly right. And I think a lot of investors don't realize the power they have to speak into some of the biggest corporations in the world that really are shaping culture in so many ways. And they've neglected the voice they can have. And proxy voting is certainly a powerful tool. I know you all use it very, very well to advocate on behalf of religious freedom and human flourishing.
Stella, what would you say to a listener today who wants to steward their investments this way, but they just don't know where to start? Where do they begin? Mm-hmm. Great question. I'd say Begin by asking if your investments reflect your faith value.
If you haven't already, seek a financial advisor that's a Christian who's familiar with faith-based investing. Even small changes can move markets towards justice. And I believe that every investor, whether big or small, can help shape a redemptive economy. Yeah. Stella, before we let you go, we've got just a little over a minute left.
I want to make sure that listeners get their hands on this impact report because I love that you and the team at Praxis do this every year. It really gives the investors just a practical look at the actual change and impact that's being made. When they download it, and I'd love for you to share where they can find it, what will they find in that impact report? Just describe what will be available to them. To find impact report go to praxisinvests.com And there's a couple different tabs.
So under Insights, you will find not just this impact report, but also. quarterly reports where we share how our funds are doing and how they're making a difference. And depending on what one is interested in, you will find. uh where we share about the impact of our different strategies so this community investing that i talked about whether it's the positive impact borns um the shareholder advocacy where we vote on behalf of our shareholders. All of that is in the report and we're really happy to share it publicly.
Excellent. And that website again? PraxisInvests.com. All right. PraxisInvests.com.
Well, our guest has been Stella Tai. She's Stewardship Investing Impact and Analysis Manager with Praxis Investment Management, a proud underwriter of this program. Stella, thanks for being with us. Thank you for having me. Folks, if you'd like to learn more, head to Praxis, P-R-A-X-I-SINVES.com.
All right, your calls are next. The number to get in on the conversation: 800-525-7,000. That's 800-525-7,000. I'm Rob West, and this is Faith and Finance, biblical wisdom for your financial decisions. Don't go anywhere, a lot more to come just after this break.
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Hi, Elizabeth. Go ahead. Hi. First, I'd like to thank you for your ministry. I accidentally found it and have just I feel like I've learned a lot.
I would like a trust to go into effect at my death to distribute money mon monthly I guess monthly to avoid a lump sum. because I have a child who would go through a lump sum Immediately and not wisely.
So, my question about that is: your administrator, how is the manager of this trust paid? Are they paid with each distribution? Are they paid monthly? Are they paid a percentage? How do they?
given income from the trust. Yeah. It varies, is the best way to say it. Let me explain.
So, the person who manages a trust is called a trustee. And their compensation is spelled out in the trust document. Generally.
So sometimes it's a flat fee or an hourly rate. More often, it's a small annual percentage of the trust's assets. commonly around one per cent.
So, you know, you could have an individual, you could also have a professional trustee, like a bank or a trust company. They tend to charge a little bit more. And sometimes, if you have a family member, they might waive payment. or take a very modest v But it, you know, there are a number of ways to do it. Again, it could be an annual fee, it could be hourly.
You know, it's often the percentage, and certainly with a professional trustee, it's typically a percentage. And a lot of that just generally comes down to how much is in there and the complexity of it. I mean, if you're talking, you know, writing a monthly check, you know, to an heir based on the trust document guidelines, then, you know, it's not going to really be a whole lot.
So it might be just a nominal annual fee for that person's time. But all that is spelled out in the trust document, and your estate planning attorney who sets it up. Based on the complexity and the size of it, could advise you on how to do it. And a lot of that, again, is going to come down to: is it somebody who's personally known to you or a family member, or is it a professional trustee?
Okay, great. Super.
Well, that answers my question. All right. I appreciate the help. Thank you. Absolutely.
You are so welcome, Elizabeth. Thank you for your call today. We appreciate it. By the way, stay on the line. I'm going to send you a copy of our new Faithful Steward magazine, and I think you'll enjoy it.
Hopefully, it'll be a blessing to you. Thanks for calling today. Let's head to Bill in Texas. Bill, go right ahead. Quick question.
I know you will run out of time, but I have a managed account With a broker here, a national broker. We live in Dallas. And It's a combination. I'm 71, retired. When we first started this, It was a result of an inheritance my sister and I from my father.
He had about Oh, eight hundred and fifty thousand dollars in a managed account and was split in half. My sister went her way and I went my way. And when we first started, my wife and I said a 50-50 balance would be. pretty conservative for us. I lean more on the conservative conservative end.
Just 'cause I'm retirement now and the stock market, I don't want you know Kind of risky.
So, and then over the last couple of years, the advisor moved it more towards a Oh, forty percent, forty two percent equities. the other fifty plus in uh bombs and cash, you know, cash account. Yeah. And so we use we use this and it's grown. We when it started Back in twenty eighteen, it had about four hundred thirty thousand.
Today, it has about four hundred twenty thousand. And how we use this is to support our retirement income.
So one thousand five hundred dollars a month goes into a cash account that has check routing privileges. We use that $1,500 a month to support to help supplement Social Security. We have a savings account with Fidelity and other things. I have annuity that pays four fifty a month, something like that. But My question for you is.
As far as this managed account I'm referring to, that one thousand five hundred comes to about four point two percent a year. And they say the four percent rule, I guess, is still pretty Pretty wise.
So that's about $18,000 a year we pull out of that. And, but we also have to go into that account for like.
sometimes our property taxes, about six thousand dollars a year. we have a wedding coming up, and we're the fa we're the parents of the bride and You know, we take on a lot of that cost traditionally. And so we'll pull that from this managed account too. But we've been blessed in the fact that no, it hasn't gone from four hundred thousand to six hundred thousand, but it still stayed at about the four hundred twenty, four thirty over the last six years, even though we've been pulling money out. And I'm just asking you, do you think that's is that a wise way to help supplement our retirement income?
Or is there other options we should think about? Yeah. No, I love everything you just said here because, number one, I think you're right. You're right there at that 4.2%, 4.3% range with $18,000 a year on $420,000. You know, I would say that that rate is still considered a safe starting point in retirement planning.
I think you've proven that out by the fact that you've been able to do that and take a little bit extra along the way for some other things as it has come up and basically generally preserve the balance, which was the goal, even with inflation and things costing more than they have previously. And I think you're right. I mean, I would have said a starting point on the mix at 70 years old. We used to use the rule of 100.
Now we use 110 because people are living longer. But 110 minus your age. Is what you should have in equities. That's 40%. And that's what you've got.
40% in equities, 60% in fixed income and bonds. The only thing I might consider is adding a little precious metal allocation, somewhere between 5% and 10% out of the fixed income portion. But I think you're on the right track. I love the plan. I don't have any issues with it whatsoever.
Thank you so much, Rob. I really appreciate your time. Absolutely. God bless you, my friend. Quickly to North Carolina.
Phyllis, you'll be our final caller. Go ahead. Hi. Yes, I was calling, I had a concern in regards to. Two.
I just turned 66 on yesterday. And I plan to follow for Social Security at 66, I think, in six months. Yeah. Still working, and I have a pretty good income right at $100,000 a year. My question is I would like to be debt-free 'cause I won't get a pension.
I planned my retirement and I was wondering would it be a good idea just to use the Social Security files for it? And use that over the next couple of years to pay off my mortgages. I have a. Have rental properties where I only owe 40,000 on one, the other one's paid off. My primary, I owe about $110.
Yeah. debt three upon retirement because my only income will be Social Security. and the income from rentals. Yes, very good.
Well, yeah, you certainly could do that. I mean, you're gonna lock in your full retirement benefit. You won't be able to increase that, which you would be able to do if you delayed it beyond full retirement age. If you have a positive cash flow with the rental properties, you could continue to pay. You know, as you are until you retire with them.
But if you really want to be completely debt-free by the time you retire, Taking this full retirement age benefit and then just putting 100% of that toward debt reduction makes a lot of sense to me.
So I'm on board with that strategy, Phyllis. All the best to you. And hey, by the way, happy birthday yesterday. We appreciate your call today. God bless you.
Big thanks to my team today: Devin, Sandy, Taylor, couldn't do it without them. We'll see you next time. Bye-bye. Faith in Finance is provided by FaithFy and listeners like you.
