Savings & Investing Randy Rabon

1. Savings & InvestingRandy Rabon

2. “Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.“ - Charles Dickens, David Copperfield, Ch. 12 "Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this." - Dave Ramsey

3. Rules of Engagement • Keep your finances current. Never do anything that will jeopardize your financial freedom. This includes making purchases or investments. Do not depend upon some future event (such as a raise or potential sale) to meet an obligation. Sacrifice your wants and desires if necessary, but do not overextend yourself. “For which one of you, when he wants to build a tower, does not first sit down and calculate the cost, to see if he has enough to complete it?” (Luke 14:28) • Emergency Fund – What is this? Where should this money be? What is the best way to successfully save? • Short term savings – What is this? Where should this money be?

4. Rules of Engagement • Long term savings – What is this? Where should this money be? What is investing? What is reasonable risk? How does risk affect potential reward? • Avoid speculation. Seek God’s increase and avoid any speculative schemes” or unethical involvements. Many times those programs are not only unethical, but also illegal. The result of a Christian’s involvement will be a loss of witness, a loss of money, and a loss of credibility. Examples of such schemes are pyramid franchising, multi-level distributorships, unregistered stocks, promotional land ventures, and scores of other ventures. “Do not weary yourself to gain riches, cease from your consideration of it. When you set your eyes on it, it is gone. For wealth certainly makes itself wings, like an eagle that flies toward the heavens.”(Proverbs 23:4-5) • Retirement Savings – What is this? Where should this money be?

5. Long Term Retirement Savings & Strategies Ecclesiastes 11:2 says “Divide your portion to seven or even to eight, for you do not know what misfortune may occur on the earth.” •  Fidelity Investments • Vanguard  Consider Index funds – A good choice is Vanguard Extended Market. There is an ETF (Exchange Traded Fund) with the symbol VXF. Read carefully The Wealthy Barber, Chapter 4. It is superb!

6. Quotes “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas” – Paul Samuelson “Successful investing is anticipating the anticipations of others” – John Maynard Keynes“How many millionaires do you know who have become wealthy by investing in savings accounts?” I rest my case. – Robert G. Allen “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.” - Warren Buffett "The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton“Go for a business that any idiot can run - because sooner or later, any idiot probably is going to run it.” – Peter Lynch

7. Marriage Goals A result of putting Christ first in a marriage is not only staying together but growing together. Here are some great questions for married couples or for those who are considering marriage. • Do you think I handle money properly? • How could I better manage our money? • Do you think I am too frugal, too extravagant, or about right? Why? • Do you think I accept financial responsibilities well? • Do you think we communicate financial goals well? • What is your immediate financial goal? • What is your primary goal for this year? • What is your plan for our children’s education? • What is your retirement goal? • What do you think about tithing? Is it necessary? Where should it go? • How do you feel about giving in general? • Do you like the way we live? • What changes would you like to see?