Watching, Waiting, Planning, Working with Matt Bell

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Learn more at soundmindinvesting.org Today, an hour, no one knows. Not even the angels of heaven, nor the Son, but the Father only. For as were the days of Noah, so will be the coming of the Son of Man.

Matthew 24, 36, and 37. Hi, I'm Rob West. Jesus made it quite clear that no one on earth knows the day or hour of his return, yet we're going to live as if he's coming back tomorrow. Does that mean we don't need to plan for the future? Matt Bell weighs in on that issue today, and then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is faith and finance, biblical wisdom for your financial decisions. Matt Bell is the managing editor at Soundmind Investing and underwriter of this program. Having Matt on the program is always an interesting and educational experience, maybe even more so today since we're talking in times.

Well, sort of. Matt, great to have you back with us. Great to be here, Rob. You know, Matt, the Apostle Peter also said that no one knows when Jesus will return. 2 Peter 3-10 reads, Well then, Matt, what should we be doing? Well, at least two very important things. We should continue to anticipate the Lord's imminent return, and at the same time, when it comes to money, we should stay busy managing it as good stewards.

And you know, that might sound like common sense, Rob, but a number of years ago we realized that not everyone agrees with that second point. At the time, we were in the middle of a promotional campaign. We had sent out several thousand letters to Christians explaining how we could help them set up a personalized financial plan based on biblical principles.

And while the campaign was successful, we added several hundred new subscribers. We'll never forget one man who returned our order card with a message that he wrote in bold red ink. I think he wanted to make sure we were paying attention. He wrote this, he said, The end times are at hand, and you want me to set up a plan? You have to love the heart behind that sentiment, of course, and we agree that we should live in a constant state of preparedness for our Lord's return.

But until he does return, this is really not an either-or choice. We should live in anticipation of his return, and we should live as good stewards, which includes planning for the future. Yeah, these are not mutually exclusive, but of course, planning for the future will often involve finances. So, what verses reassure you that planning is necessary when we look at God's Word?

Sure. So, one of the key verses that comes to mind is Proverbs 21 5. It says, The plans of the diligent lead to profit, as surely as haste leads to poverty. Another one, Rob, is Proverbs 22 3. That one says, A prudent man foresees the difficulties ahead and prepares for them.

The simpleton goes blindly on and suffers the consequences. But of course, the Bible also makes clear that we are to ask for God's guidance in this process and to trust him with the results. Proverbs 16 3, for example, says this. It says, Commit to the Lord whatever you do, and he will establish your plans. And Proverbs 19 21 says, Many are the plans in a person's heart, but it's the Lord's purpose that prevails. So, clearly, planning is an essential part of stewardship. I even think about 1 Corinthians 4 2 where it reads, Moreover, it is required of stewards that they be found faithful. So, it's this idea, Matt, that you cannot be a faithful steward without financial planning, right? That's right.

You really can't. I mean, planning, being intentional, proactive instead of reactive, it's how stewards are designed to operate. And you see this on full display in the parable of the talents. In his book, The Second Coming, I really like how pastor and author John MacArthur unpacks the lessons from the parable.

He talks about the three R's, the responsibilities we receive, the reaction we have to those responsibilities, and the reckoning we will all face. So, as for the responsibilities, the servants in the parable are entrusted with the responsibility to manage the master's wealth, not just to hold it until he returns. And of course, the master represents God, the servants represent us. They were empowered to act on the master's behalf to do something productive with what he had entrusted to them, and they were expected to do that. In terms of the reaction to those responsibilities, two of the servants were faithful. They embraced the responsibility they had been given. Out of their desire to serve the master, they invested his resources productively, generating a good return. They multiplied what had been entrusted to them. But the third servant was fearful. He just hid the master's resources until he returned.

That's exactly right. And as you said, there will be a reckoning that we'll face. We'll talk about that, the master's return right around the corner, and what financial planning should look like from the perspective of a faithful steward. We'll be back with much more.

Stay tuned. . Faith in Finance is grateful for support from Soundmind Investing. If you have money in an investment account, you know sometimes the stock market can seem like a roller coaster.

But it's possible to enjoy both profit and peace of mind as a do-it-yourself investor, no matter what's happening in the market. A short video webinar about that is available at soundmindinvesting.org. Financial wisdom for living well. Soundmindinvesting.org. . It's great to have you with us today on Faith in Finance. I'm Rob West.

With me today, my good friend Matt Bell. He's managing editor at Soundmind Investing and underwriter of this program. You can learn more and read all of their great content at soundmindinvesting.org. Today we're talking about watching, waiting, planning, and working as we anticipate the coming of Christ. We're to be good stewards and manage what God has entrusted to us. And before the break, Matt was talking about this requirement of being found faithful as stewards and the responsibility we have, the responsibility to receive because we've been entrusted with the master's wealth. And so then we're his money manager. The reaction we should have in talking about those servants who took what God had entrusted to them, the master in this case, and had put it to work. But Matt, you said that there's a third R, if you will, here, and that's the reckoning that we'll face.

Share that with us. Yeah, that's right, Rob. So upon the master's return, all three servants were required to give an account of what they did with what they had been entrusted with to the two faithful servants. The master said to each of them, well done, good and faithful servant. They made the most of the opportunity they had been given to serve the master, and the master then rewarded them with the opportunity to manage more of his resources. But the master called the unfaithful servant wicked and lazy.

He said the servant should at very least have put the money in a bank where it could have earned some interest. Yeah, exactly right. So perhaps then, Matt, to sum this up, we're to live like Jesus is returning today, but we plan like we're going to be here for a long time, right? Absolutely. The good steward looks forward to the return of the master, anticipates that his return could be imminent, could be any day. But as he waits, he also follows the master's instructions to put his resources to good use until he comes back. Yeah. Let's apply this to financial planning at a very practical level. So Matt, what should that look like from the perspective of being a faithful steward?

Sure. So in terms of day-to-day money management, the use of a budget or as I prefer, a cash flow plan can be hugely helpful. A lot of people are not crazy about the idea of using a budget, but I'll tell you, it is, I believe, the most powerful practical tool any of us can use to plan the appropriate use of the master's resources.

It enables us to be intentional in how you allocate your income across the priorities of generosity and saving and investing and spending. And then as we think longer term, as we plan for later years, we have some recommended tools on our website that people can use to build an investment plan and one that's built around a particular retirement date. You know, we kind of do some planning. We try to anticipate when that date may be and an anticipated estimated retirement budget. Now, of course, Rob, no plan will ever be perfect and few plans, as one wise person once said, will survive their first point of contact with the real world. So adjustments are always going to be necessary.

But the planning process itself is essential. And the way I think about it is that a person without a plan, they're just hoping and guessing and assuming everything is going to turn out OK. But a person with a plan, a plan based in prayer and built on a foundation of biblical principles, now that's a person who's more likely than not to be found faithful when the master does in fact return. That's well said, Matt.

Let's take that a step further. You know, for many believers, they're wondering, how do I find that right and appropriate savings goal? What is that lifestyle I'm supposed to live? And I appreciate that you said you need to bathe that in prayer and you need to seek some wise counsel. You need to turn to God's word. But what does it look like to set that financial finish line?

And how do I know if I'm accumulating too much? Yeah, it's a question that absolutely requires a lot of prayer and a lot of study of God's word and just meditating on the truths of God's word. And we see, you know, when we really understand and really embrace the idea that we're stewards of his resources, then we seek to understand his intentions for how we're to live. We're designed to live generously. The Bible in very practical and I think loving ways teaches us to maintain a reserve because things are going to happen. And so I think that's a loving thing that God's word encourages us to maintain a reserve. And then we're to save and to invest for the future, for the future that God puts on our hearts to be pursuing. So the question of how much is enough and how do we set a financial finish line, there's no one-size-fits-all answer for everybody. But I think that as we bathe these decisions in prayer, as we seek to understand and apply God's word to our lives in very practical ways, I think that God reveals those truths to us over time.

Yeah, that's helpful. You know, clearly we want to provide, but there's a fine line between provision and protection, which is God's responsibility. And we'll never insulate ourselves from the things of this world. And so we kind of have to live in the tension between provision and protection, right?

Absolutely. I mean, when the market goes a little crazy and it's natural for anybody to be a little fearful when the market drops quite a bit, but that's where we realize that our foundation is built on our faith in Christ and our trust in His provision. So we do the wise things.

We don't just throw our hands up in the air. We do the wise things. We plan. We invest appropriately. We avail ourselves of wise counsel. We sacrifice if that's needed in order to set aside money for the future. But ultimately, our trust is in God and His provision.

Yeah. One of the most tangible ways we demonstrate that, Matt, is when we hold God's resources and provision loosely with that posture of an open hand, which is where giving comes in. I know that's been a really important part of your teaching for a long time. Talk about just what we see in Scripture and on the heart of God with respect to generosity and really the responsibility we have as stewards in that area. Sure.

So I think it's a combination of things. I mean, the Bible lays out lots of principles, lots of specific teaching. And when it comes to generosity, we look in the Old Testament, we see that God started even the poorest Israelite in the Old Testament at 10 percent or a tithe of the increase. Any resources coming into our lives, that's the teaching.

That's kind of the starting point, the benchmark. But it's not supposed to be this rote adherence to kind of the rules and regs of Christianity, if you will. Ultimately, the Christian life is about relationship, not rules and regs.

And so the guidelines are helpful. We see that as a biblically historical starting point, but not the intended stopping point. But ultimately, our giving is not in order to follow the rules.

It's because of our love for Christ and because of our understanding of His love for us. As well said, Matt, you know, we live obviously in uncertain times. There's always uncertainty.

We know God is certain and can be trusted. And so let's finish today with, from an investment standpoint, how do we invest in light of the uncertainty, the challenges that are out there, and even some of the economic headwinds we're facing today? How does that factor into our decision-making? There's so much with investing that we cannot control. We can't control the market. We can't control world events that might drive the market. We can't control the inflation rate, the unemployment rate. There's so much we can't control. And yet there's so much we can control. We can control how much we're setting aside for the future. We can control our choices of the wise counsel we seek to avail ourselves of in order to build an investment plan for the future. We can control, to some degree, our emotions because emotion oftentimes drives people off course with their investment plan. So as we seek God's comfort, as we seek God's wisdom, we're trying, to whatever degree is within our control, to trust, to take a long-term approach to this, and to not let our emotions get the best of us.

Yeah, that's right. And it strikes me we can also turn down the noise of the world and turn up God's voice, which means we need to be in Scripture because here's the reality, folks. The way we handle money is a testimony to a world that's watching, and it's also a way we can point them back to Christ. Matt, I always enjoy our time together, and I appreciate you stopping by today. Thanks so much, Rob.

Really good to be with you. That's Matt Bell, Managing Editor at Soundmind Investing. If you'd like to read more on this topic, they have a great article called Watching, Waiting, Planning, Working at soundmindinvesting.org. All right, your calls are next. The number, 800-525-7000. I'm Rob West, and this is Faith and Finance. 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. Thanks for joining us today on Faith and Finance. We're taking your calls and questions today. 800-525-7000. Good call right now. Let's head to the phones. We'll head to Chicago.

Hi, Vanessa. How can we serve you? Hi, I have some questions, or actually, if you could offer some suggestions. I just recently came into an inheritance and I wanted to get some tips on investing. All of my savings is fine, my checking is fine, and I also have a 401k. So I don't just want to put that money into any of those accounts.

I want to do some investing. Yeah, yeah, very good. A couple of questions. So you said your savings is good, meaning you have three to six months expenses in an emergency fund? Yes, I do. Okay, and you're living on a budget within your means every month, so you're not going underwater, you've got a little bit of surplus every month?

Yes, I do. Awesome. And then with your 401k, do you know what percent of your income you're contributing currently? Actually, it's five percent now, and that's our max with the company that I'm with. It's five percent, so I'm matching, but they're matching with us for us, so yeah, so five percent.

We did have a financial company come in a couple of weeks ago, and I can't raise that, so I am going to raise that as soon as they get everything in place. I will be raising that percentage that comes out for the 401k. Okay, yeah, that would be good, because you can put in up to $23,000 for a 401k for the year 2024, and then if you're over the age of 50, you can go up to $30,500.

So you can put in quite a bit. I mean, you'd certainly want to max out at the very least the matching portion, but I like the idea of you putting in perhaps as much as 15 percent of your pay if you can. And I guess the next question related to that is, how do you feel like you're doing, or do you have a sense of how you're doing towards your ultimate retirement savings goal? Do you feel like you're on track, or do you know? I'm kind of on track, but this will definitely help me get in the inheritance. It'll definitely help, but I am going to continue to work, because I'm in, I guess I say perfect health, you know, so I intend to work until four retirement age.

I'm really close, though. Okay, what is your age currently? 63. Okay, and what do you have, if you don't mind me asking, in the 401k, and then what was the total of the inheritance? Okay, in the 401k, there's about $40,000, and the inheritance was over $200,000.

Okay, all right, great. Yeah, I think the key for you is to perhaps do some retirement planning. I mean, you could do some basic planning on your own. I'd recommend you connect with an advisor who can help you do that planning and determine kind of what your ultimate savings goal is for your retirement assets. Are you going to have anything other than your 401k, the inheritance and Social Security? Like, do you have a pension or anything like that? No, my company doesn't have a pension.

Yeah, so I love that you said you're in good health and you plan to continue to work. The key will be for you to work up that retirement budget so you can figure out, okay, here's how much I need to live on in retirement, whatever that number is, then you subtract from that what you'll get at Social Security, and I'd wait as long as you can to take that and that's good that you're going to continue to work. So that would allow that check to continue to grow. But then whatever is left with your total monthly need minus Social Security, that's got to come as a monthly income stream from the combination of the inheritance and the 401k. And the way we need to look at that is ideally, you would be able to pull no more than 4% a year. And that that 4% a year from your investments, plus Social Security would meet your monthly obligations. And if you can do that, and if you invest it properly, then you should be able to allow that that money to maintain its principal, and you be able to live off of the income, because the growth of the investments and the the income inside those investments will offset your withdrawal rate of 4%. Now, if you needed six or seven or 8%, typically, you're not able to maintain that in that season of life, because usually you get more conservative.

And that's where we could see those balances decline over time. And then the question would be, you know, are you going to outlive the money, but if we can build those assets to a point where you can just pull no more than 4% a year. So let's say we're talking 300,004% a year would be 12,000. So the question would be, is 12,000 plus Social Security enough for you to live on?

Or, you know, we could make that 400,000. You know, if we're planning on that growing plus what you're adding in your 401k, well, then you could pull 16,000 a year, that type of thing. But I think the key is to try to get as much into that 401k as possible. Because what we want here, Vanessa is we want that growing in a tax deferred environment.

The inheritance is great, and you can certainly take it and deploy it into the market. The only challenge is that as you invest it outside of a retirement plan, as you have profits in individual investments, you're gonna have to pay capital gains on them every time you sell them. Whereas inside the 401k, the taxes are not a factor while it's growing. And so you, you know, you or your advisor can buy or sell investments as much as you want.

There's never any taxes, the taxes paid when you take it out. And so that's why I would love for you to max out that 401k put that full 30,500 in this year, even if that means you've got to live off of a portion of the inheritance. Because what you're doing is you're systematically moving the inheritance from a taxable environment where it is today into a pre tax environment in the 401k. Does that make sense, though?

It makes a lot of sense. And especially considering I don't have any debt, any personal debt. So me continuing to live off of my income from my employment is fine. So I can definitely see myself doing that.

Yeah, that's great. The other thing I would recommend to you, Vanessa is I think you're in a great position to connect with an advisor for two reasons. Number one is you can do some more in depth retirement planning. So you know what your ultimate retirement savings goal is. And we don't need to over accumulate. I mean, if you can reach it before retirement, great, you can accelerate your giving, but you need to know what that is. So along the way, you'll know Am I on track ahead or behind? The second thing is, I think, having an advisor who can help you manage the money, not only selecting the investments inside the 401k from the menu that your employer gives you, but also helping you make the investment decisions for the inheritance.

It's a lot of money, and we don't want to just put it on autopilot. So to find a CCA to interview, I'd go to faithfi.com and click find a professional. Thanks for your call. Well, folks, we're about out of time today, we covered a lot of ground, you know, I love being invited into your stories each day, it's an incredible privilege. You want to be found faithful, you realize God is incredible. And boy, what a gracious gift he's given us starting with salvation before even the first dollar, we are rich, we have an abundance. But then beyond that he gives graciously differing amounts. But our charge is just to be found faithful to enjoy what he's given us. And to manage it wisely and to give it generously and to help others in need along the way.

I mean, what a privilege it is. Well, the whole goal of this program each day is just to help you do that come alongside you and say, you got this, you can do it. Maybe we've made some mistakes in the past. But going forward, let's make those wise decisions that align with the heart of God and the Council of Scripture. I hope you'll come back and join us tomorrow. We'll do it all over again. On behalf of my team today, Adam Sunneth, Pat Montague, Devin Patrick, Jim Henry, and the rest of the team here at Faithful, I'm Rob West. Hope you have a great day and we'll look for you back here again tomorrow. Faith and Finance is provided by Faith Buy and listeners like you.