How to build a faith-based

Transcription

1 How to build a faith-based By Jay Peroni, CFP Chief Investment Officer Faith-Based Investor, LLC Rescue your finances!

2 12 Keys to Success

3 MEET JAY PERONI, CFP 15 years of financial services experience as a financial advisor Author of two books The Faith-Based Millionaire and The Faith-Based Investor and 3 e-books. An expert authority on the subject of "Faith-Based Investing. Featured on Crosswalk, TheStreet.com, ABC News, ChristianPF, Master Your Money, Morning Show FamilyNet, and a host of other notable media. Master of Science in personal financial planning A Certified Financial Planner professional (CFP) A Qualified Kingdom Advisor from Kingdom Advisors Founder of FaithBasedInvestor.com

4 Why Faith-Based Investor? Money management and financial planning from a Biblical perspective. Founded on traditional American values and biblical principles. Our commitment and focus is to help our clients prosper and plan without compromising their faith and values We take a first class service approach and apply it through integrity, hard work, quality service, and personal attention to details. Our firm offers a paid-newsletter, portfolio management, and financial planning services. A first class experience

5 What we will cover in the next 60 minutes: Opportunities 5 Questions 5 Trends 5 Investments 5 Traps to Avoid Solutions 12 Key Principles for Success 1 Major Decision to make now!

6 Right now, there is so much noise!

7

8 How are you feeling about the economy?

9 2012: What will election results mean: For the stock market? For future taxes? For the economy? For your personal finances?

10 5 Questions to ask about your finances: 1. Is your current allocation appropriate, and consistent, with your risk level? 2. Do you have an active strategy for both bull and bear markets? 3. Is your current plan in line with your faith and values? 4. How could the future impact your plan? 5. What financial planning opportunities are you missing out on?

11 5 Trends we are closely monitoring 1. Bond bubble: When will rates rise? 2. Inflation: how bad will it be? 3. US Dollar: How will our currency affect the future? 4. Emerging markets: how will other countries respond to current economic circumstances? 5. Domestic markets: when will the U.S. really start growing?

12 5 Investments on our radar: 1. U.S. Large Company Dividend Paying Stocks (think quality) 2. Precious Metals (gold and silver) 3. Other commodities (agriculture, oil, copper, steel) 4. Inflation protected assets (TIPs & WIPs) 5. Emerging market stocks

13 5 Traps to Avoid going

14 Many are confused, sitting idle, record amounts of cash on the sidelines, panic, fear! ONE BIG Question: What are you going to do about it?

15 How do you reach your financial goals without sacrificing your principles? Faith-Based Investor can help you find your way using a GPS System based on biblical principles. We follow 12 Key Principles!

16 Helping you grow wealth with a purpose! Helping you protect wealth during uncertain times! Helping you share wealth G. P. S.

17 Growing 1. Save at least 10% for emergencies 2. Save at least 10% for financial freedom 3. Develop a faith-based/values based investment program 4. Invest in multiple asset classes (stocks, bonds, real estate, commodities, a business) Protecting 5. Maintain adequate insurance (protect assets) 6. Diversify your accounts (protect against unnecessary risks, illiquidity, & excessive taxation) 7. Develop a proper estate plan (protect your beneficiaries) 8. Implement multiple income streams (protect your income) Sharing 9. Give away at least 10% annually 10. Develop a charitable gifting plan 11. Incorporate advanced gifting strategies (life insurance, trusts, donor advised funds) 12. Give away your time, talent, and treasure

18 Growing Wealth

19 1. Save for emergencies (at least 10%) Growing 3 months of emergency funds (take home pay) 3 months worth of non-perishable food and water Rainy day fund Maximize yield Diversify your savings Minimize taxes

20 2. Save for financial freedom (at least 10%) Growing Look for growth Watch out for taxes Control investment costs Diversify your holdings Seek wise counsel Invest consistently Personalize your investments

21 3. Develop a faith-based investment program Growing Ask questions Decide: 2. Who will manage 3. Choose a reputable brokerage firm

22 Five questions to ask before Growing 1. Where is your money going and what values are you supporting? 2. How much risk are you taking? 3. Is your money liquid and easily accessible? 4. What rate of return should you expect in this low rate environment? 5. How do you protect yourself from taxes and inflation?

23 Steps to build a faithbased investment program Growing Step One: It starts with you. Screening what issues are important to you? Step Two: Create a faith-based portfolio using stocks, ETFs, or mutual funds. Step Three: Decide on management

24 Are your faith & values important to you? Growing How should money be invested? What values are important? What are you supporting? Does it matter? Will it cost me something?

25 Growing What is the difference between social responsible investing and faith-based investing? VS. Faith-Based Investments

26 Moral Screens How much of your money do want supporting: Growing Abortion Pornography Gambling Explicit entertainment Homosexual activism Embryonic stem cell or fetal tissue research

27 Social Screens Growing How much of your money do want supporting: Tobacco Alcohol Poor environmentalism Dangerous regimes Something else?

28 Build your own mutual fund Growing Can contain up to 100 securities Can contain stocks, ETFs and mutual funds You can have as many Folios as you like Folios can be bought or sold in simple dollar amounts You can buy or sell fractions of shares in Folios Automatic on-going investment contributions are easily setup No commissions for buying, selling or modifying a Folio* * With a fee-based account

29 4. Use multiple asset classes Growing Start or own a private company Domestic stocks International stocks Bonds Real estate Alternative investments (gold, oil, real estate)

30 Protecting Wealth

31 Managing Your Risks Protecting #1: Business Risk #2: Investment Advisor Risk #3: Brokerage Risk #4: Political Risk #5: Currency Risk #6: Inflation Risk #7: Other Risks? HOW MUCH RISK ARE YOU TAKING?

32 5. Have proper insurance coverage Protecting Too much insurance: wasteful Not enough insurance: unwise steward Insurance is a tool just like any other investment opportunity

33 What are your concerns? Protecting Concern What if I get injured and anymore? What if I get hurt or a family member gets sick? What if I get into a car accident or my home is damaged? What if I pass away? Who will take care of my children? What if a loved one has to go into a nursing home? Solution Disability income Health care coverage Auto and Home Insurance Life Insurance Long-term care

34 6. Diversify your accounts Protecting Asset allocation: minimize investment risk Asset location: maximize tax efficiency Proper liquidity: have access to emergency funds and maintain flexibility

35 Protecting Asset Allocation: Minimize investment risks Bonds Alternative Investments Emerging Market Stocks Mid Cap Stocks Faith- Based Investor Large Cap Stocks Small Cap Stocks Real Estate 1. Large cap stocks 2. Mid cap stocks 3. Small cap stocks 4. Foreign stocks 5. Emerging market stocks 6. Bonds 7. Real estate 8. Commodities (gold, silver, oil, etc) International Stocks At Faith-Based Investor, we use 8 distinct categories

36 Example of asset allocation Balanced Portfolio (moderate risk) 5% Equity Protecting Equity 60% Alternatives 10% Large Cap 35% Gold 5% Small Cap 15% Silver 5% International 10% Fixed Income 30% 1-3 Year 10% 3-10 year 10% TIPs 10% Cash 5% Money Markets 5% 10% 30% 60% Alternative Investments Fixed Income Cash Allocation is for illustrative purposes only

37 Asset Location: Maximize tax efficiency Protecting Tax-free Taxable Tax-deferred

38 Maintain proper liquidity Protecting Debt Savings

39 7. Develop a proper estate plan Protecting Wills Trusts Life insurance and retirement account beneficiary planning Powers of attorney Health care proxies Final wishes Legacy planning

40 8. Have multiple income streams Protecting Wages Dividends Rental income Royalties Commissions Affiliate fees Licensing Interest Consulting fees

41 How are you protecting your income? Protecting

42 Sharing Wealth

43 9. Give away at least 10% annually Sharing Seek to automate giving Cash Appreciated securities Old cars, boats, and other property Business interests

44 10. Develop a charitable giving plan Sharing 1. Have a written plan of action on how you will bless others 2. Decide which charities, ministries, and organizations are dearest to your heart 3. Look at creative ways to give 4. Look at ways to give now and later 5. Create a lasting legacy for generations to come

45 11. Incorporate advanced gifting strategies Sharing 1. Irrevocable life insurance trusts 2. Donor advised funds 3. Charitable gift annuities 4. Charitable remainder trusts 5.

46 12. Give away your time, talent, and treasure Sharing Giving is not just money. How we use our time, talents, and treasures is a direct reflection of our faith.

47 success or happiness Sharing Fortune magazine top 400 wealthiest people in world no happier than general population. More money makes you more of what you already are. True contentment comes living out your faith and values

48 Now what? ONE Decision! How will you proceed going forward? Do Nothing! Make Major Changes!!

49 Financial Planning Checklist 1. Life Changes 2. Milestones 3. Health Planning Opportunities 4. Tax Planning Opportunities 5. Investment Strategy Changes 6. Family Protection Strategies 7. Retirement Planning Opportunities FREE CONSULTATION

50 Have a coach/ financial accountability partner Financial accountability helps minimize costly mistakes Even the most successful still use a coach Lack of accountability is a root of failure Find a manager/partner who has a vested interest and shares same faith/values.

51 Personal Asset Management 1. Avoid companies that violate your faith and values. 2. Seek out those companies that complement your faith and values. 3. Diversify your holdings. 4. Actively manage your portfolio* using FolioFN Cost: Fee-Based * Faith-Based Investor, LLC is a Registered Investment Advisor

52 FREE 30 Minute Consultation down and see how we may be able to create a faith-based plan for you!

53 Thank you for your time!