Faith and Finances

401(k)s are not perfect, but they do provide a way for workers to begin their investing journey toward retirement. They can be complex and many books have been written about 401(k)s. In today's episode, we are going to simplify it for you.

What, exactly, is a 401(k)?

It is an employer-sponsored retirement plan and by "employer-sponsored" we do not mean that it is completely funded by the employer. This is a program through you can contribute a set portion of your earned income into investments, automatically, which means you do not have to rely on your memory to contribute.

In traditional 401(k) plans, your financial contributions come out of your paycheck without being taxed, so every dollar contributed is credited to your investment account.

These "pre-tax" contributions actual allow for more of your money to be invested without hurting your budget. For example, when you earn $100 you do not take home $100. Because of taxes, you take home something closer to $70 to $75. So if in your budget you can afford to part with $75 to invest for your future, you can have $100 going to work for you. From your paycheck, $100 is contributed, before taxes, which would have been $75 (take-home).

Now, if the employer offers a matching contribution of 50%, you would have $150 invested for the "cost" of $75. (Your $100 plus their $50), that's a pretty good deal.

Against The Grain -by Tim Rosen. Chapter Two provides additional wisdom and guidance in managing your 401(k).

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

Bob Lotich started SeedTime (formerly ChristianPF) in 2007 with a passion to help fellow believers learn how to manage their money wisely. His personal mission (and the SeedTime mission) is to make, save, grow, and give money to benefit others.

Bob's vision and success in paying off debt in order to fund God's kingdom.

Bob has a "radical" plan to increase his giving to match his age, as a percentage. Not only has he done this (with God's help and, he's in his thirties) but he and his wife, Linda, have paid off their mortgage all while giving almost a third of their income to the Lord's work.

SeedTime - Bob's Blog and website

Bob's Facebook

Bob's Twitter

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

Great things can happen, with a plan.

How often do we simply hope that our finances will improve, but lack a clear action plan?

The fallout from not having a financial plan.

The various levels of plans.

Creating a plan at the income level: Career progression, furthering education.

Creating a plan for today's cash flow: Do you have a savings goal? How will you reach that goal? Do you have debt to eliminate? Create and commit to a plan to eliminate that debt.

Creating a plan to generate future income. How much income will you need in the future? We talk about how to plan and invest to achieve a future income goal. Seeking expert counsel is often recommended.

Must-answer questions: How much do you need to invest now, in order to create the future income you will need?

What is the proper way to invest for your personal situation?

The Total Money Makeover - by Dave Ramsey

Against the Grain: Avoiding the Financial Pitfalls of Conventional Wisdom - by Tim Rosen

Multiply: What the Bible Teaches About Saving, Investing, and Planning for Your Future - by Tim Rosen

Creating financial plans helps us to faithfully steward the money God has blessed and entrusted us with.

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

Kevin Folger was the second of only two pastors in Cleveland Baptist Church's 60+ year history. This year, rather than retiring (which many men in their sixties do), he is transitioning to another ministry.

Pastor Folger also prepared for such a time by planning for and preparing the pastor who would succeed him at Cleveland Baptist.

An uncommon but needed practice in ministry, succession planning.

How God burdened Kevin's heart early on for people in Asia.

What Kevin is now doing in the Lord's service through SLC-Asia.

SL-ASIA.com

@KevinFolger - Twitter

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

When you were growing up, you may have been encouraged to "learn from your mistakes." There is certainly wisdom there, but when it comes to money, there are mistakes you do not want to learn from - you want to avoid them.

Some money mistakes can be so devastating that there is no recovery, or they may require years to recover from.

Today we review five money mistakes that others have made and that you can avoid.

1. Using funds from your 401(k) for today's expenses or "emergencies."
2. Waiting too long in life to begin paying yourself.
3. Operating without a budget
4. The new car habit.
5. Allowing lifestyle creep.

Tim's Blog has many helping posts on these issues.

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

Niranjan Sundararaj recently retired after working nearly 27 years for American Express International.

He has an incredible story of God's grace, mercy and guidance in his life, that is sure to encourage you.

From being severely injured in a terrorist's bomb blast in Sri Lanka to taking his family to live in Sydney, Australia, and now at a time when others would retire, Niranjan is just getting warmed up, spear-heading a massive effort to reach the Lost in the 10/40 window.

God's hand on Niranjan's life during times when circumstances made no sense.

How God used Niranjan's professional experience in traveling all over Asia to prepare him for greater things later in life.

The vision for, and the need to reach the Lost in the 10/40 window, and you can be a part.

Spiritual Leadership Conference - Asia Website

Niranjan's Facebook Page

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

The culture we live in equates being rich with happiness and fulfillment.

Michael Norton is a Harvard Business School professor who has studied the connections between happiness and wealth.

Mr. Norton says the research regularly points to two central questions that people ask themselves when determining whether they are satisfied with something in their life: Am I doing better than I was before? and, Am I doing better than other people?

If you and I, as Christians, look to money and wealth for fulfilment, we will never find it.

Riches do not always equal blessings.

Psalm 37:16 "A little that a righteousness man hath is better than the riches of many wicked."

Some ungodly people are very rich; don't envy them.

Psalm 49:16 "Be thou not afraid when one is made rich, when the glory of his house is increased; For when he dieth he shall carry nothing away: his glory shall not descend after him."

Michael Norton's Study, in The Atlantic

If the Lord provides wealth for you, determine to be rich toward God and not to yourself. Luke 12:20-21

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

Dean Miller is a pastor, a sought after Youth preacher, and evangelist. Dean had pastored Central Baptist Church in Hattiesburg, MI, for thirteen years, then God brought change in Dean's life and ministry. This type of change makes people nervous. It makes other pastors nervous.

How Dean responded to a prompting from God on his heart. How would he know it was really God's will to leave his current church and pastor a new church?

How would his current congregation respond?

I believe what you will learn from Dean Miller will encourage you and challenge your faith at the same time.

You will learn how to respond when you feel God is bringing change in your life.

Dean Miller's Facebook Page

Front Range Baptist

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

The Holocaust Museum in Washington, D.C. has exhibit rooms that are built slightly off-center, the floors slope a tad, and the walls are not "plumb." The intended effect is to make the visitor feel a little disoriented, to give just a hint as to how the Jews felt being taken from their homes and herded into a strange place.

Feeling off-balance isn't pleasant, we crave balance in most areas of our life.

We often find ourselves out of balance in our finances, and many remain in that state more than they care to.

The needs and wants of today consume our time and resources, often leaving plans for our future in the dust.

Yet we age, and there is no slowing down that process, and there will come a time when we will need income but cannot earn it any longer.

There is a biblical process by which we can strive for financial balance and honor the Lord in the process.

Perfect balance may be unattainable. Our lives will be a series of adjustments "back to center." Don't get frustrated, there will be seasons when you are thrown off balance. Remember the biblical principles to work back to center.

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter

We all experience struggles of some nature. Sometimes they are physical, sometimes, spiritual, and of course, financial.

Struggles are part of life.

Some struggles are self-inflicted.

A struggle is not necessarily an indication of God's punishment for sin. Many struggles are Father-filtered with the purpose of strengthening our faith and dependence on God.

Even children can learn and grow through struggles. Though it may be difficult, there are some struggles which we should allow our children to work through (age appropriate, of course)

The fixed heart is the secret of courage. G. Campbell Morgan

"…not be afraid of evil tidings: for his heart is fixed, trusting in the Lord." Psalm 112:7

Bible Steps: Receiving God's Financial Promises and Provisions - Free book download

If you have a question or comment about today's topic, we invite you to share your thoughts.

Podcast on Facebook

Tim Website or Twitter

Troy Twitter

Matt Website or Twitter