Kingdom Advisors equips Christian financial advisors to bring their faith into their practice with the industry-recognized Certified Kingdom Advisor designation. We bring those advisors together with other industry leaders to form a vibrant network. And through that network, we give them the resources, tools, and encouragement they need to serve clients like you, helping you align your values with your financial decisions and investments. To learn more, visit kingdomadvisors.com. What if the greatest benefit of values-aligned advice isn't simply what happens to your portfolio, but knowing your financial decisions reflect what matters most?
Hi, I'm Rob West. New research shows that when financial counsel aligns with your faith, trust deepens, anxiety decreases, and success begins to mean more than investment performance. Sharon Epps is back to unpack what these findings mean for faithful stewardship. Then we'll take your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, we always enjoy our conversation with Sharon Epps. She's president of Kingdom Advisors, an organization that equips financial professionals to integrate biblical wisdom into the advice they provide and the way they serve their clients. Sharon, as always, great to have you back. Good to be here, Rob. Thanks.
Sharon, today we're taking a closer look at new research the Pinkston Group did with our team here at Kingdom Advisors, and the findings are fascinating, as you well know. And one statistic is particularly eye-opening, and this is where I'd like to start. While 81% of certified Kingdom Advisors offer values-based investing, Only 15% of their clients actually use it.
So let's talk about why that disconnect exists as a starting place.
Well, we don't know all the reasons for sure, but I think there are several. I think one thing is that there is a myth that I have to be satisfied with lower returns to invest my values. And that really is a myth, but the clients may not ask because of that. Second thing is, I think there are advisors that offer faith and value-led investments, but they think the clients are going to ask for it. And perhaps they are not sure how to bridge that conversation.
I also think that sometimes people are focused as they walk into their stewardship journey. They're focused on giving as their first stewardship lever. And this idea that my portfolio could be aligned with my values just isn't quite to the surface yet. And I think for all of it, education is the solution. Understanding what value screens mean, understanding what values investment is, and combining that with a discipline strategy.
Yeah, I think that's well said. I mean, clearly we're seeing far more awareness than ever before on the part of Christians. And what I'm excited about is that when Christians understand that their values can be reflected truly in a well-thought-out, diversified portfolio, they're in. They want to know more. And I think the idea that the advisors are bringing it up and Christians are coming along to this, let's call it a newer idea is really exciting.
But let's talk maybe for a second about the practical steps advisors and their clients can take. To close this gap that's been uncovered with intentionality so that their faith is reflected in their investments.
Well, first of all, I think the conversation needs to start with the values check-in or values discovery before we look at how our investments are doing. And so, as a client, I would ask your advisor, hey, are you clear on what's important to me? And as an advisor, the same thing on their side. I want to be clear about what's important to you. And I do just have to say here: if your advisor is not comfortable in that conversation, you may want to consider checking out a certified kingdom advisor because they've been trained to do that.
But as you continue the conversation, you want to provide some side-by-side comparisons of screened funds. If you're using that avoid strategy where you're screening out for things that don't align with your values to see and make sure that your returns are what you expect them to be and to debunk that myth I talked about on the underperformance, I think, as an advisor, as you're moving into this, one idea is to offer a pilot slip. Or just a test amount to the client where they're not moving 100% of their funds into values-aligned choices, but maybe they just start with 10% or 15% and watch together how they perform. And then finally, I think celebration is important: celebrating not only the financial returns, but the impact stories that have made a difference, not only in your portfolio, but also in kingdom purposes. Yeah, that's well said.
Well, we're going to head into this break here in just a moment, but Sharon mentioned perhaps a next step for you is to find a certified kingdom advisor in your area. And you can do that quickly and easily at findacka.com. There's more than 2,000 across the nation that have met the high standards to earn the gold standard and biblically wise financial advice, Certified Kingdom Advisor. Again, that website, findacka.com. When we come back, we'll continue to unpack this fascinating research about the difference between advice from a certified kingdom advisor and advice from a traditional advisor with Sharon Epps.
Don't go anywhere. We're just getting started. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com.
That's kingdomadvisors.com. Wondering who Faith and Finance recommends as a banking partner that aligns with Christian values? It's Adelphi Christian Banking, the trusted team you've known as Christian Community Credit Union. With high-yield checking, savings, VisaCash back cards, and a competitive money market account, your everyday banking helps advance the gospel. Visit faithfy.com/slash banking and use the code FaithFy.
Membership eligibility required. Accounts are privately insured up to $250,000. This institution is not federally insured. Mm. What sets a certified kingdom advisor apart?
Well, we now have empirical data that tells us just that. Sharon Epps is here today. She's president of Kingdom Advisors, and we partnered with Pinkston Research to do the largest study that's ever been conducted looking at the difference between the advice given by and the outcomes of a certified kingdom advisor and his or her client versus traditional advisors and their clients. And Sharon, fascinating data coming out of this study. I want to continue to unpack it.
One of the things the study suggests is around this idea that the benefits deepen over time. CKA clients who have worked with their advisor for more than five years report a 66% reduction in financial anxiety compared with 49% among those in shorter relationships.
So why does that sense of financial peace tend to grow over time in your mind?
Well, I think trust is cumulative. As the advisor gets to know you and your family more and you know the advisor more, you're building a story together and they're really a partner in that. And so the advisor, particularly a kingdom advisor that is giving biblical counsel, also helps you and holds you accountable for living out the values that you say you want to. I think the other thing is that long-term planning does perform better than reactive decisions. And we also know that that decreases stress.
I'm not constantly watching the market's ups and downs. I know that there's a long-term game plan and I have a financial advisor that reminds me we're in it for the long haul. I think also just having the opportunity to share scripture and prayer with your advisor reshapes your identity so that you totally understand that God's the owner and that you're the steward. And so you can say, God, what do you want me to do with your money? And that just relieves a lot of stress.
And then market cycles also help us see that the advisor's guidance is reliable. It reinforces peace, that even when things are down, there's a plan. We're working the plan and we're trusting God. Yeah, I think that's well said. Another interesting finding, Sharon, was that only 20% of CKA clients said fees are the primary factor in choosing an advisor.
Why do you think that was so much lower than traditional advisors' clients?
Well, while we all want to be good stewards in managing our money, I think the big thing is this idea of values alignment. And quite frankly, when our values are aligned, I expect better performance because the advisor is investing the way that makes a difference to my goals and to my objectives. And so the advice becomes more of a partnership. It's not just a commodity. I'm not just checking for the lowest price that I can get.
I think it also includes this idea of holistic planning. We are not only paying for an investment return, we're really having an accountability partner that's helping walk out the discipleship that we believe God's called us through using this tool of money.
Now, of course, we want our advisor to be transparent about their fees and we want to understand exactly where they're going and we don't want to be overcharged. But we can focus on the fruit of what we're doing and not just that singular expense. Yeah, I think that's exactly right.
Now, there was some data coming out of the study related to the next generation that was really encouraging. We're talking about younger clients ages 18 to 41, and 52% say shared values are extremely important.
So, what does that tell you about the future of the financial advice profession, Sharon?
Well, I could spend a long time talking about the next generation. And, you know, sometimes we talk about challenges in the next generation, but this is really a win and something we're really excited about. And that is studies show us that younger believers want alignment in their life and their money. And they want to be sure that it tells the same story. While older generations have tended to have this secular sacred divide and the younger generation is really not seeing money as something, quote, that valuable on their own.
They're seeing it as a tool, just like we teach. And so they're used to having personalization and choice in all the areas of their life. And they believe, well, For sure, that needs to be true in my investing too. My values need to be shown there because I get to show my values in the rest of my life as well. And so, if advisors are not paying attention to this values alignment conversation with the next generation, there's a real risk of losing them to those advisors that do.
I mean, the other thing is, it's a wonderful discipleship journey to help a younger client see the wisdom that comes from the Lord and their role as a steward. Yeah. There was a lot of data, Sharon, as well, coming out around advisors and really seeing their work line up with their life purpose. It was dramatically higher with the Certified Kingdom advisors versus the traditional advisors and really changing their scorecard where kingdom impact was the primary driver. That's something we would have hoped for.
And it was really encouraging, wasn't it? It was. And don't we all want an advisor who's excited to come to work on Monday and also is seeing the impact of the work that they do? And so for these advisors, we want to be clear, performance does matter. Their scorecard, though, is bigger.
They're looking at how are we helping our clients experience peace? How are we promoting generosity and kingdom growth? And so this certified kingdom advisor is helping you look to the Lord for direction and celebrates with you when success. Happens, and that success can be faithfulness to your purpose. And you can grow that story together over years and years.
And what a beautiful relationship and something special to celebrate. It really is. Sharon, we were also excited to see that clients of CKA's were twice as likely to say their giving had, quote, significantly increased since working with their certified kingdom advisor.
So, in addition to values alignment about investments and communication and family matters, they are moving toward a more generous life, aren't they? They really are. And that's a kingdom measure because if you think about it, many advisors are paid for assets under management, and yet they see the kingdom impact and encourage their clients to give, knowing that God's the one that provides. Yeah, really is. Sharon, just a minute left.
So for someone who's listening today and resonating with what you're saying, and perhaps they're saying, I want that kind of advice, what could they look for from a CKA even in that very first meeting?
Well, first of all, you want to have questions from the advisor, learning more about you and your values, not just the facts, but understanding what's important to you. You want to ask them questions about how do you integrate faith into your client counsel? How can we talk about it together? And then mostly pray about it and trust the Holy Spirit to direct you for the best advisor. Excellent.
And Sharon, if there's an advisor listening today who's a Christ follower and they're resonating with what you're saying, I'd love for you to speak to that advisor for just a moment about their opportunity as they engage with Kingdom advisors.
Well, we want to encourage you to join us because we are a group of committed advisors who want to help every advisor live in community and be equipped to confidently have these conversations. That's well said. Proverbs 19, 20, listen to advice and accept instruction that you may gain wisdom in the future. That's our heart's desire for everyone as they engage with an advisor who understands the heart of God and the counsel of scripture so that they can steward God's money God's way. Sharon, thanks for your time today.
Glad to be here. Folks, if you'd like to find a certified kingdom advisor in your area, head to the website findacka.com. That's findacka.com. Back with your questions after this, 800-525-7000. I'm Rob West, and you're listening to Faith and Finance, biblical wisdom for your financial decisions.
We'll be right back after this break. I was in ministry full-time and I was always looking for a way to integrate my faith with this new industry around money and finances. This is Mark. He is a Certified Kingdom Advisor. As a CKA, one of the best things I offer my clients is trust in knowing that they're working with a professional that understands their values.
And I think in all of the different challenges that clients go through, if we can go back to trusting in God, then He'll make the path straight. You can find an advisor like Mark at findaceka.com. We are grateful for support from Timothy Plan. Since 1994, Timothy Plan has shared good news with investors and advisors by offering faith-honoring mutual funds and exchange-traded funds. More information is at TimothyPlan.com.
The investment objectives, risks, charges, and expenses are contained in the prospectus and summary prospectus available at timothyplan.com. Mutual funds distributed by Timothy Partners Limited. And ETFs distributed by Foresight Funds Services LLC. Investing involves risks, including possible loss of principal. Great to have you with us today on Faith and Finance.
Let's head right to the phones to Ohio. Nicole, go right ahead. Hi, I just had a couple questions for you. I'm 53 years old. Me and my husband have our house paid off.
We are both working. We don't make a lot of money, but we have a very simple lifestyle. And we've been able to save up some money. We have about fifty thousand in our checking account. But we don't have any pensions or 401 or Anything for our future.
I was wondering what you would suggest. We do at this point.
Well, it's a great question, and we have to start somewhere. And I love the fact that you all have lived modestly, and you're not calling with a bunch of debt that you need to pay off. You've got money in the bank, and now we need to take this, position it in a way that's appropriate for your values and goals, and where God is leading you, and why stewardship.
So that's a good starting place. You've got $50,000 in the bank, and it sounds like this is the extent of your savings. Is that right? Correct, yes.
Okay, great. And what do you all typically spend in a month, a typical month? Total expenses. And Dash. Right.
I don't even know. Yeah, so that would be a good starting point is to really kind of lean into that. It sounds like you all are doing a lot of things right. But, you know, what we find is that if we don't have a budget, we don't give every dollar a job, there's some, you know, undoubtedly there's some leaks in the boat where money's kind of finding its way to places that maybe are not the best use of it. And that's what a budget is.
It's a way for you to say, let me look back over the last 60 or 90 days and see where every dime went. And then I'll categorize it and determine how much am I actually spending. And then I can ask the Lord, okay, Lord, where are you taking us? And what are our goals and our priorities? And then how can we make sure we're aligning our spending with those goals?
And that's where a budget keeps you on track to accomplish that on a monthly basis.
Now, things change and things come out of left field and we make course corrections along the way, but at least we know directionally where we're headed. But let's say, and I'm just picking a number, you all are spending $4,000 a month, then I would. Want you to have at least three, if not six months worth of expenses, not your income, your expenses in emergency savings, liquid, safe. and earning interest.
So if it's in fact 4,000 a month, and let's just use that number, that would be 25,000 basically, 24,000.
So that would be half of your 50. I'd probably leave in a savings account, not in checking where it's not earning anything, but in a savings account.
Now, where would you put that?
Well, you could use a local credit union. You could use our friends at Adelphi Christian Banking.
So, you know, Adelphi is the largest Christian banking solution in the country. They've been longtime partners of ours and a lot of our listeners use Adelphi for a few reasons. And this would be a great example of the kind of thing I would look for for you is, you know, they offer 4% a year on their money market. And you get up to $400 as a bonus by being a faith fight listener.
Well, so that would be a great example of, you know, if you took $25,000 and we'll call that your emergency fund, and you were to get 4% on that over the next 12 months, well, that's $1,000. And now all of a sudden, instead of $25,000, you have $26,000. And it's completely safe because it's insured and it's completely liquid, meaning you can get to it if the unexpected comes.
Now with the balance of the 25,000 That's where I think we can start to build some wealth. But let me ask first, do you either of you have access to a 401k at work? I know you said you haven't funded one, but you have do you have access to one? No, no, neither of us.
Okay.
Okay.
So then a great option would be for either of you to, or both of you, to open what's called a Roth IRA, R-O-T-H. And that's just basically an individual retirement account. where you put after tax dollars, which is what that 50,000 is, and it grows tax-free. Until you're ready to take it out, as long as you're at least 59 and a half when you do, and as long as the account's been open at least five years.
So that would be a great way for you to invest that money, let it start growing for you, and then add to it every year.
Now, if you're 50 or older, you could put in $8,600 into your Roth, and your husband could put in $8,600 into his Roth. And so that would take up perhaps a good chunk of the rest. And then we could turn around in January when it turns to 2027 and do it again.
So I think between you kind of moving the emergency fund portion, what I'm calling twenty five thousand, to a savings account and then starting two Roth IRAs with the balance, I think that could get you pointed in the right direction. Where to go to do the Roth IRAs? I'd probably go somewhere like Fidelity Go. Or the Schwab intelligent portfolios. These are essentially robo-advisors that take all the guesswork out of how to invest it.
And it's very inexpensive.
So you might, you know, it might cost you. One quarter of 1% a year for the fees, which is very low. And essentially, after you answer all the questions, it would automatically invest it for you. And then, anytime you add anything to it, it would reinvest that as well.
So that'd be my best kind of recommendation on where to go from here. If you wanna learn more about Adelphi Christian Banking, go to faithphi.com/slash banking. And if you want to learn about Fidelity Go or Schwab Intelligent, just put those in your search engine, it'll take you right there. Nicole, I hope that helps. We appreciate your call today.
Let's quickly go to Florida and talk to Connor, and this is where we'll finish it out. Go ahead, sir. This is a testimony and a question, so I just want to say, listen, anybody listening, if you tithe, God's going to bless you abundantly. And that's what has happened to me.
So I am a young professional. I became an attorney two years ago. I worked for a firm. And then I said, I think I could do this on my own. I'll have God's blessing.
And that's what I did. And now, Frankly, I'm making a lot more money. You know, praise God, glory to God, I'm humble. But it's so much that I honestly have no idea what I'm doing at this point. It's like.
forty, fifty, sixty thousand dollars a month. And it's my own business. I have an S Corp. And I'm 33 years old. I have a wife.
I have a child. My question is like Even with a lot of these tax machines and things that you can do to reduce the taxable income. I still feel like after an IRA, after if I open up my own 401k, after doing a lot of these other things, I'm still so much higher in the In the tax bracket, like, what do I do with this money besides build the business bigger? Brings me more income, which I don't know if I really even can handle at this point.
So that's sort of the short question of it.
Well, here's what I'd like to do. We just got our latest resource at FaithFi. It's our field guide: How Much Money is Enough. And it's going to deal with two things. It's going to deal with kind of the heart side of what is my role as a steward.
It's going to help you define enough for your lifestyle and your lifetime accumulation. And once you do that, now you can start accelerating your giving, which by the way helps with the taxes so you can do even more over time. I'm going to send you a copy. Once you work through it, call me back and let's talk about it. Stay on the line.
Big thanks to Jim, Tricia, Josh, and Dan. We'll see you next time. Faith in Finance is provided by Faith Buy and listeners like you.
