FOURTH QUARTER | 2008 | WWW.KINGDOMADVISORS.ORG
ON PURPOSE
INTENTIONAL ADVISING FOR THE CHRISTIAN FINANCIAL ADVISOR
The
Giving
Journey Doing Work… or Celebrating a Call?
Transcending the Strategies Tactics, & Tools of Financial Planning Kingdom Advisor Profile • Tim Mohns
Welcome TO YOUR NEW OFFICE
Not what you had in mind for your practice? That’s OK. Neither did most professional advisors that first began to incorporate charitable giving into their work. But when you connect with The National Christian Foundation or one of our local affiliates, a wealth of innovative giving solutions are yours to offer. The result? Your clients’ generosity flourishes, and your practice becomes a ministry. With your influence, the world becomes your office, and you gain a whole new clientele ~ the poor, the spiritually hungry, the diseased, and the orphan. Now that’s remote access.
800.681.6223 | www.nationalchristian.com
C O N T E N T S The mission of OnPurpose is to deliver engaging content to Christian financial professionals so they are equipped to integrate their faith into their practices and serve their clients by delivering faith-based advice.
FEATURES e Giving Journey 4 Th 2,100 top advisors in the industry said that sm
37% of their clients want to make meaningful gifts to charity.
10
Doing Work…or Celebrating a Call?
16
Transcending the Strategies Tactics, & Tools of Financial Planning
For far too long the idea of having a “calling” by God in your life has been relegated almost exclusively to those in vocational ministry and missions. But why?
Start with a detailed discovery process that empowers the client to clearly articulate what they want to accomplish and why.
Giving Plan
7
How Do Christians Behave In Tough Times
8
ON PURPOSE
I N T E N T I O N A L A DV I S I N G F O R T H E C H R I S T I A N F I N A N C I A L A D V I S O R
KINGDOMADVISORS.ORG
Chief of Generous Givers
12
Ron Blue
Advisor Profile: Tim Mohns
14
Tony Stinson
How Much Would You Give…
21
Ron Blue Answers
22
Q
President Chief Operating Officer
Kristen Burnett Chief Financial Officer
Rob West
How might we counsel clients toward a proper biblical perspective of the current economic uncertainty and market volatility?
Editor in Chief
Scott Titus Editor
Kathie Wheat Editor
Kenny Ng Art Director
Q
How do you introduce to clients the concept of “setting a financial finish line”?
Kingdom Advisors 5605 Glenridge Dr., Suite 450 Atlanta, GA 30342 Tel: 404-497-7680 Fax: 404-497-7685
F E A T U R E
A R T I C L E
The
Giving
Journey
A new resource for growing givers “I had always thought of my wealth advisory practice as a ministry,” says Jeff Thomas, Sr. Vice President, Wealth Advisor, at Morgan Stanley in Houston, TX. “However, over the last few years I have felt called to be more intentional about having a deeper conversation with clients about what kind of legacy they want to leave.” Fortunately, there’s a new tool to help you: www.givingjourney.com. The concept behind the site and the accompanying brochure, The Giving Journeysm guide, has been developed over the past decade at several of America’s leading stewardship ministries, including Generous Giving and The National Christian Foundation (NCF). And now, along with Kingdom Advisors and Crown Financial Ministries, The Giving Journeysm is being offered as a comprehensive resource for growing givers in their spiritual journey of generosity.
Indeed, charitable giving has become one of the hottest issues for the affluent today. In a recent survey, 2,100 top advisors in the industry said that 37% of their clients want to make meaningful gifts to charity.1 If you can help your clients address this vital concern, you will serve a valuable role in their lives. But for many advisors, the question is not why they should do it, but how.
continues on page 6
PAGE4
|
ON PURPOSE
|
FOURTH QUARTER
|
2008
KINGDOMADVISORS.ORG
|
PAGE5
F E A T U R E
The
Giving
In addition to the journal entries, there are definitions and numerous resources for each stage. So the reader can begin to understand where they are on their own Giving Journeysm and determine the next steps to take. One of these steps includes seeking the advice of a professional advisor, and other action items revolve around charitable planning.
Journey continued from page 4
In The Giving Journeysm guide, you can follow in the footsteps of one giver as he relates the details of his personal experiences with giving throughout the years in his journal. Over the course of his life, he moves through four distinct stages of giving as he becomes an:
Maturing Giver,
Jeff goes on to comment on the role of the resources that are listed in the materials, “This will put a wealth of resources at my clients’ fingertips to move them from Emerging Givers to Giving Champions.”
Generous Giver, and finally
Derek V. Irish, CFP®, Sr. Financial Advisor and Principal of Ronald Blue & Co. in Houston, says that The Giving Journeysm will help him evaluate his clients’ needs in a new way. Derek explains,
Giving Champion.
|
ON PURPOSE
|
FOURTH QUARTER
Pam Pugh, NCF’s Vice President of Innovative Giver Services, introduced The Giving Journeysm to a group of advisors recently in Houston. Pam says, “The Giving Journeysm was well-received and advisors suggested a variety of ways they could use it.” Houston advisor, Jeff Thomas explains, “I’ve been actively looking for resources to build a toolkit for my clients that will help foster their spiritual growth. I have a number of high net-worth clients who are at different stages with their giving. The Giving Journeysm will work great because it meets them right where they are.”
Emerging Giver,
PAGE6
A R T I C L E
|
2008
G I V I N G
“The Giving Journeysm is a great tool to help me think through where my clients are with their giving. It has lots of useful resources to help give people a vision of where they can go with their giving. It’s just common sense but we’ve never had something like this.” Derek also likes the idea of being able to recommend specific resources for his clients. He says, “I think I’ll just lead them to the website. There’s so much good stuff there. The site has links to books, articles, stewardship organizations, and conferences. Or I could even go buy them a book, or get them a resource that The Giving Journeysm recommends.” The site also has a link to download a PDF version of The Giving Journeysm guide. And copies of the brochure can be ordered from NCF for free at 800.681.6223. In conclusion, Derek says, “I will use the The Giving Journeysm as a job aid for helping me disciple my clients. The biggest takeaway that I get from it is that it gives us a framework to talk about giving with clients, and a curriculum for teaching about generosity…as opposed to winging it, or doing nothing at all.” 1
source: CEG Worldwide, LLC
For more information, visit www.givingjourney.com or call The National Christian Foundation at 800.681.6223.
P L A N
Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. 2 Corinthians 9:7
In this simple sentence, Paul introduced the idea of a giving plan. We give by commitment and intention. A strategy of giving has been formed in the mind and heart of a Christ-follower. A giving plan begins with the settled conviction that what I have earned or what has been given to me is not mine, but God’s. Having said that, what percentage of the possessions God has entrusted to us does he expect us to give away? The Bible’s starting point is the tithe. And yet our goal remains to be working toward the day when our giving exceeds the simple tithe. Once we have determined the amount we intend to give, next we need to set our priorities in giving. Where shall my gifts go? Some believe that one’s primary gift should go to his or her spiritual community: the church. Beyond that priority, each generous giver must listen to the voice of God, and look diligently for opportunities. What organizations of service align with one’s sense of call? What is God saying to you? This is the beginning of a giving plan. These are the kinds of things that a person schemes out in his heart and mind. And according to that plan, he or she gives “cheerfully,” and not under duress. This is the kind of giving that God loves - and blesses. From best-selling author Gordon McDonald. For more generosity writings by Gordon, visit www.generousbook.com.
KINGDOMADVISORS.ORG
|
PAGE7
How Do Christians Behave In Tough Times?
BY CHUCK COLSON
Across America, hundreds of thousands are walking away from their homes—unable to make mortgage payments. Defaults and foreclosures are skyrocketing, as housing prices continue to decline. As a result of the sub-prime mortgage crisis, the economy is being hammered, credit markets around the world shaken. Before it is over, sub-prime defaults may reach two to three hundred billion dollars, and trillions may be taken out of the economy. Few of us will escape the repercussions—which leads to at least one important challenge: How do Christians behave in tough times? If you believe the “prosperity gospel” preachers, you need not worry; just pray, and God will shower you with blessings. Too many believers (like the rest of the culture) equate Christianity with the good life and the blessings of consumerism. Clearly, we have forgotten that Christianity has always been countercultural, thriving not in times of great prosperity, but in times of moral or economic bankruptcy. For example, after the barbarians sacked ancient Rome, missionary monks from Ireland saved Western civilization, establishing monasteries, copying and preserving the Bible and other classic works. Then, as I have written in my new book, The Faith, there is the example of the Christians in the third-century Rome, when plagues swept through the cities. The wealthy, including doctors, escaped to their country estates, abandoning the poor to their fate. But Christians, who believed each human is made in God’s image, risked their own lives to care for the sick. Many succumbed to the plagues themselves—but the Church grew strong on the witness of their sacrifice.
The result was that Christianity became the faith of the Holy Roman Empire, not because Constantine wanted it to, but because he could not resist it. Roman women flooded to Christianity because the Church gave them the dignity and respect due children of God— something pagan Rome denied them. And the same thing is happening today in the global South, where women are flocking to Christianity because church leaders are convincing men to stop spending their time in bars and stay home. The sub-prime mortgage crisis happened in large measure through moral failures. Wall Street invented mortgage-backed securities, which meant lenders could pass the risk of mortgages to anonymous investors. Mortgage lenders, who should have known better but were greedy for high commissions, lent money to people with shaky credit; house prices kept soaring, so it did not matter. Investors and lenders got wildly rich. Then the bubble burst. In the wake of the crisis, some of our neighbors are going to lose their homes, and all of us are going to see our homes decrease in value. A failing economy affects millions more. Christians should view these tragic events as a chance to demonstrate the compassion of the Church, helping neighbors who may have lost everything. We ought to be a witness to the world that when times get tough, Christians can be counted on to be merciful. Remember the Church in Acts 4: Members shared everything with others in need. The sad fact of human nature is that many of us never seek God until a crisis is upon us. Right now, there are millions of Americans staring down the barrel of financial ruin. When they ask where is God in all of this, I hope they will see Him in the loving acts of the body of Christ.
From BreakPoint, September 17, 2008, reprinted with permission of Prison Fellowship, www.breakpoint.org
F
E
A
T
U
R
E
DoingWork…
or Celebrating
PAGE10
|
ON PURPOSE
|
FOURTH QUARTER
|
2008
For far too long the idea of having a “calling” by God in your life has been relegated almost exclusively to those in vocational ministry and missions. But why? Is that fully biblical? Is it accurate with the way God works?
a Call? BY DR. BOB RECCORD
Something I read the other day stopped me in my tracks:
“There is nothing more exhilarating as getting out of bed in the morning, going back into the world, and knowing why. Enthusiasm is derived from the certainty that for this I was born, and I am doing it! It is a thrilling knowledge that I am fulfilling God’s intended purpose for me.” I don’t know who wrote it. It was just on a card someone gave me. But my question is… Do You Feel That Way? For the people I’ve discovered who do, there is a commonality. They have not been willing to settle for a career… they have discovered a calling. And that makes all the difference!
The answer requires that we take a closer look at the issue of calling. Biblically, the call of God is PRIMARILY to a person - Jesus Christ. It is a call by God, from God and to God. Far more than where we live, work, socialize or contribute to the common good, God focused on our relationship to Him through Christ. His central desire is that we become Christ followers who are reflecting that relationship where we live, work, socialize and contribute. Os Guinness in his book The Call says that answering the call of God is the chief reason for existing.
So, if we have responded to God’s call to a personal relationship with Him, does He have a call as to what we do with our lives on a daily basis? Yes! It has been referred to as God’s “secondary call” by John Calvin and God’s “particular call” by our Puritan forefathers. Regardless of the terminology, God guides and directs His people to places of impact day in and day out… just like being a financial advisor! And that means your focus in life and work is not merely to help people with financial decisions and planning, but to also be a reference and resource to them in spiritually related issues in their journey as well. After all, you cannot get to the core of people’s lives much more directly than via the avenue of a person’s finances. continues on page 12
KINGDOMADVISORS.ORG
|
PAGE11
DoingWork…
or Celebrating a Call?
Without question, God clearly indicates that He indeed calls some to vocational ministry and missions. And for that, we all are most grateful. But look around… that is only a small percentage of us who have decided to be Christ-followers. What about the rest of us?
Abel We would call him a rancher Noah A pretty fair designer/builder Abraham - A wealthy land manager and livestock owner Joseph The Prime Minister of an empire Moses Strategist, leader of a movement, foreign affairs specialist Gideon Farmer turned military leader
Take a minute and read Hebrews 11. Those in the faith community have often referred to this passage as “the Hall of Fame of Faith” of those God chose to use powerfully throughout the Old Testament to change their world. Take a few moments to scan the chapter, read the names and think about the people. Here’s the key question: How many were priests or prophets (the acknowledged “clergy” of their day)? The answer is shocking to the system, isn’t it? Only one - Samuel. (Granted it does say “and the prophets” but we are talking about those listed by name). Now, look at the background of some of the others!!
Add to these people like David and Daniel who were governmental leaders, Debra as a female military leader, Josiah as a head of state and Bazalel, a craftsman God called to help build the sanctuary, and you have men and women God embedded in the culture whom He used to change their world, right where they were. So what about you? You are a financial advisor who God has placed exactly where you are for eternal reasons. Who will be able to reach into the depths of people’s lives better than you? After all, it was Jesus who said, “Where your treasure is, there will your heart be also” (Matt. 6: 21). Because He understood
I am not commanding you, but I want to test the sincerity of your love by comparing it with the earnestness of others. For you know the grace of our Lord Jesus Christ, that though he was rich, yet for your sakes he became poor, so that you through his poverty might become rich.
CHIEF OF GENEROUS GIVERS The Bible is not easy on us when it comes to this business of generosity. We are instinctively selfish people. At first God set the bar low when it came to mandatory giving: a tithe, ten percent of one’s holdings. However, generous giving is another story. Generous giving starts when it hurts to give. When one moves in the direction of “poverty” in order to make someone else “rich.”
2 Corinthians 8:8-9 PAGE12
|
ON PURPOSE
|
FOURTH QUARTER
continued from page 11
|
2008
that in many ways, finances are “liquid personality.” And when you have a person’s trust relating to finances, you have their deep trust. So don’t be surprised, as your integrity and performance prove over and over that you can be trusted, that people will open up all types of areas of their lives to you. You, in many ways, may become a “pastor” figure to them. Not because of theological training, or a title/ position, but because of a relationship you create and a life of faith you demonstrate. And as that happens, you will discover that everyone has a common fear - that life could end and they haven’t made their life count. They surely want their money in order… and no one is better equipped to help them with that than you. But they also want their life and family to be in order. And that opens a huge door to you! And here’s the great news, you have the joy of assuring them that it’s never too late to live a life that matters.
Bob Reccord serves as the Chairman of Total Life Impact, Inc., an organization providing cutting edge Communication, Consulting and Coaching services to businesses, ministry organizations and individuals. He also served as the leader for the third largest Disaster Relief ministry in the nation, overseeing their growth from 13,000 FEMA trained volunteers to over 52,000 in 9 years and donations from $2 million to over $24 million. Heading one of the world’s largest mission agencies, Bob oversaw 5,300 mission personnel in North America and celebrated 14,350 churches launched between 1997 through 2006. He has authored eight books including Beneath the Surface with over 200,000 in distribution and Made to Count, focused on taking your faith to work. Bob states above all that his most prized accomplishments are being a husband and a dad. For more information about his ministry, please visit www.bobreccord.com.
So the question becomes, how do you best do that? A first step is to be absolutely sure of your own calling… and that you haven’t just settled for a career. My wife and I have taught on that issue to people in the work place across the nation. We are pleased to partner with Kingdom Advisors to offer a new course on how to maximize call of God available next year. We’ll also deal with principles that will aid you in general counsel as you deal with your clients regarding their life direction, decision making and desired destiny. We look forward to sharing the journey with you and helping you be the very best you can be!
By richness we are not talking about adding to someone else’s net worth. Rather we are talking about spiritual richness or the richness that comes from living the life that God intended for all (not just the privileged) to live. Jesus set the pace in his incarnation and his atonement at the cross. He went from wealth to poverty that we might go from poverty to wealth. That is our model. That is our call. Genuine Christianity compels the true Christian to become a generous person because the central act of our faith is an act of
generosity. “He became poor that we might become rich.” It cost Christ to transfer wealth-of-spirit to us. The generous giver knows and understands that giving does not begin until there is sacrifice in alignment with the sacrifice of Christ. Christ was indeed the chief of generous givers. From best-selling author Gordon McDonald. For more generosity writings by Gordon, visit www.generousbook.com.
KINGDOMADVISORS.ORG
|
PAGE13
A D V I S O R
•
P R O F I L E
Tim Mohns “Pastor” of Finance
A Kingdom Advisors Profile by Matt Bell Tim Mohns – Little did Tim Mohns know it when he lined up as wide receiver on his freshman football team, but teammate Todd Harper would end up having a strong influence on his life and career. Their hearts for Christ led both men into ministry. After college, Mohns became the director of youth and single adults ministry at Ginger Creek Community Church in Aurora, IL. He hoped to become a church planter. Harper joined the staff of Campus Crusade for Christ and then co-founded Generous Giving (www.generousgiving.org), a ministry that encourages people to experience the joy of generosity. Three years into his work at Ginger Creek, Mohns received a phone call that seemed to change his career path. His family’s financial advisor was on the line. Nearing the end of his career, he was looking for someone to mentor. He knew that Mohns was a man of integrity and also that he had a management/finance degree from Purdue University. Mohns clearly remembers the reaction of Ginger Creek’s senior pastor. Rather than focusing on the downside of losing Mohns, he saw it as an opportunity. “He said you’ll have the chance as an advisor to talk with people about some of the most personal issues in their life,” Mohns explained. “He said you’re going to become a pastor of finance.” Mohns set about learning the financial planning business, spending five years building a successful practice with Merrill Lynch. Then he and a partner opened an office of Raymond James in Naperville, IL and grew that practice to 130 clients with $150 million under management. On the surface of Mohns’ life, everything looked just fine. His practice was thriving. He, his wife, Rachelle, and their two children were enjoying a more than comfortable lifestyle. But Mohns was experiencing “a personal crisis.” He felt bored and questioned the purpose of his career. “I started to see my work as being at cross purposes with God. I was helping people achieve financial independence, which could make them feel independent from their need for God.”
PAGE14
|
ON PURPOSE
|
FOURTH QUARTER
|
2008
A call to his old high school football buddy, Todd Harper, pulled Mohns out of his funk. Harper suggested that Mohns consider joining the staff of Generous Giving. At the very least, he encouraged Mohns and his wife to attend a Generous Giving conference. Doing so in 2006 rocked their world. “Ever since I was making money, I was giving 10 percent to the church,” Mohns said. “Where I came from, that made you a giving hero. At the conference we met people who were giving away 50 and 90 percent of their income. Meeting them blew us away. We kept looking at each other and asked is this really real? Are people really doing this?” Attending the conference kindled two new passions in Mohns - to become much more generous as a family and to foster greater generosity in others, neither of which would require a career change. “We have an amazing platform of trust as financial advisors. Sometimes, if we’re courageous enough, our advice can go beyond mutual funds and insurance.” While he did not take a job with Generous Giving, he and Rachelle decided to cap Tim’s salary at the level that it would have been had he gone to work for the ministry - a more than 50 percent cut in pay - and then give the rest away. “I kept hearing about setting financial finish lines through Kingdom Advisors and other places. It started as an experiment, but we’re still there.”
While a fixed salary could have felt restrictive, Mohns says it’s been just the opposite. “I didn’t realize how fear based my mentality had been, how performance oriented I had been, worried about saying the wrong thing to a client. I have a new found freedom to speak truth into people’s lives, and that is huge. It has really impacted the relationships that I have with clients in a very positive way.”
Mohns says that encouraging greater generosity among his clients definitely does cost him something. After all, his revenue is based on assets under management. While his fee structure hasn’t changed, his paradigm has. “I truly believe that God is the provider. I don’t always know where or how he’s going to do it, but I believe he’s going to take care of me. I feel more secure in that than I ever have.”
As is often the case among generous givers, Tim says that he and Rachelle have received far more than the recipients of their gifts, starting with more unity in their marriage. “Now there is a sense of purpose and adventure that we’re in this thing together. Some of the best conversations we’ve had over the last couple of years are conversations about giving and the eternal investments we’re making in people.”
It was a sense of boredom that prompted Mohns’ call to his old friend Todd Harper, which led Mohns and his wife to attend a Generous Giving conference, which led to the generosity adventure they’ve been living ever since. As he talks about their experiences over the last couple of years, there’s no hint of boredom in his voice.
Part of their vision is to bring other couples together in generosity. To that end, they are sponsoring an upcoming weekend retreat on the topic of generosity for 10 couples at a suburban Chicago retreat center. They’ve also brought friends and clients to Generous Giving conferences, which has led to some quizzical responses. “One client worth about $12 million said if I take this advice what’s that going to do to you? What will you have to manage and make money from? I said to him that if God isn’t in this we’re both in trouble.”
“The sense of calling that I am experiencing now with this new mindset - it is a night to day change. I’m energized to come into the office on Monday. It’s a whole new ballgame for me. I feel like I’ve been born again…again.” In addition to supporting their church and other ministries, Tim and Rachelle maintain what they call a “giving war chest” - money that can be given as needs arise and as God leads. It is this type of giving that has led to some of their most thrilling experiences.
At the end of last year, for example, Tim and Rachelle felt led to give a sizable gift to their church. But they had less than half the amount that they wanted to give set aside. Still, they called the church and committed to giving the money. The very next day, Tim received a call from a client he had been talking to for over five years about using life insurance as part of his estate plan. The client said he was ready to go ahead. The commission from the insurance contract was more than enough to cover the gift to their church. Another time, Tim sensed God telling him to give a van to a pastor he had met only once before. So, he and Rachelle bought the van and drove it to the pastor’s apartment. When the pastor found out, he literally started shouting praises to God. It turns out that his car had just died. Mohns says that each time something like that happens, he and Rachelle look at each other and just laugh. “We say, ‘Oh my gosh, that’s ridiculous.’ We can’t believe that we even get to be a part of this.”
Matt Bell speaks and writes about w biblical money management full time. Matt’s first book, Money, Purpose, Joy, has just been published by NavPress. To find out more about Matt’s work, visit his web site at www.moneypurposejoy.com.
KINGDOMADVISORS.ORG
|
PAGE15
F
E
A
T
U
R
E
Transcending the Strategies Tactics, & Tools O
F
F
I
N
A
N
C
I
A
The oft-quoted French adage, “The more things change, the more they stay the same,” 1 seems to me so descriptive of the current state of affairs in the financial planning industry. Notwithstanding the advances in the field by pioneers like George Kinder and his Life Planning Institute, Carol Anderson and Money Quotient, the late Scott Fithian and his brother Todd’s continued work with the Legacy Companies, 2 and the generally more commoditized work of Mitch Anthony, I find it pretty amazing that the commitment to practice life planning hasn’t really captured the hearts and minds of most financial advisors. I suppose one could say I am just spouting opinion with little basis in fact. But current industry issues and practices, when held under the microscope of intense scrutiny, are positive indications of this assertion. Evidence abounds that the industry keeps its focus glued to the strategies, tactics, and tools of financial planning. The debate over FINRA’s (the Financial Industry Regulatory Authority) proposal to require brokerage firms to supervise entities not related to p Of course, this securities is one example. blurs the lines between broker/ dealer and registered investment adviser regulations, while
L
P
L
A
N
N
I
N
G
significantly muddying the waters of practice supervision within each and between the two. But at the core of this debate is the advice and implementation of financial products and services. In other words, it’s the specific solutions, tactics, and tools used in the financial planning process, all of which any prudent life planner would say are subordinate to the client’s mission, vision, goals, and values. We have a world focused on implementing specific strategies. There instead needs to be careful crafting of an over-arching strategy for decisions about the products and techniques that are part of the financial planning engagement. Let’s explore this distinction between financial planning strategies, tactics, and tools, and the mission, vision, values, and goals—the strategic nature of the life planning relationship.
What and Why of Planning When the foundation of the planning engagement begins with what is important to the client and why they are even doing what they are doing, the whole nature of the process changes. For example, leading with a preco preconceived notion that the client is like everyone else and wants to build up a huge retirement fund so tthey can coast in their golden years, wouldn’t it be important to determine from the outset what the vague concept of retirement means to them? And not only what it means to the client, but why is it important to them in the first place? Let the clien client clearly articulate what their vision for the futu future is and what is compelling about that vision according to their own value system. continues on page 18
PAGE16
|
ON PURPOSE
|
FOURTH QUARTER
|
2008
KINGDOMADVISORS.ORG
|
PAGE17
Transcending the Strategies Tactics, & Tools OF FINANCIAL PLANNING continued from page 16
This seems so obvious, but truly, what conventions are assumed to be the starting place of financial planning? Usually the focus starts with a relatively rational and logical assessment of the client’s present financial position and some sort of basic goal setting. After all, aren’t we really after the assets to manage or the financial products to sell? Wouldn’t it be better to start with a detailed discovery process that empowers the client to clearly articulate what they want to accomplish and why? It seems to me that would be a much more powerful way to positively affect the quality of life and not just the bottom line of their financial status. Let’s say in your discovery process you have a way to elicit a client’s mission, vision, values, and goals that encourages the client to envision a compelling present and future, one of total clarity. What would be characteristic of these four descriptors?
Mission. This is best considered using the terms “calling” or “life purpose.” Why do they feel or believe they are here in the first place? What activities, causes, or beliefs are they committed to that bring fulfillment in life and make them feel complete?
Who and How of Planning Only after the discovery phase is complete, and the client has identified problems or challenges to be tackled, can you move forward to think about and implement specific solutions. But it appears to me, after more than 20 years in this field, that most real-world practitioners and financial services companies have it wrong. Why? Because they lead with the who and how of planning: who’s going to do the planning, and how it is to be done from a quantitative basis. Any content analysis of industry advertising, literature, and Web sites leads the trained and untrained alike to assume that if you just find the best techniques, research reports, analytical technology, performance, and products, you’ve got all you need. You have a plan. Do you really? Does simply having the right strategies, tactics, and tools loaded and locked for rollout to the client make for a complete plan? Consider the following distinctions.
Vision. What do they envision for the future? What would their ideal life look like next year, three years from now, ten years from now, or more? This involves using imagination and the creation of a clear mental picture of the reality they want to create.
Values. What are the governing principles of their life? This would involve particular religious and moral beliefs. What impact do these have on their personal financial decisions?
Goals. This is where the transition begins toward the specific strategies, tactics, and tools. It is here we encourage the client to think about the specific and measurable financial needs that will fulfill an overall life strategy that supports these four core discovery elements. Setting goals facilitates the quantification that is achieved in the next stage.
PAGE18
|
ON PURPOSE
|
FOURTH QUARTER
|
2008
Strategies and tactics. Strategies and tactics are closely linked to methods or methodologies. So what if your methods assume that retirement simply means a person needs to calculate how much investment capital is needed at a specific age to fund a particular income for a set amount of years? Once this is done, it’s a simple exercise of dumping enough money into an investment plan on a consistent basis that maximizes return within the risk tolerance of the client, right? But a cookie-cutter approach is rarely optimal. continues on page 21
TA K E
Y O U R
P R A C T I C E
Kingdom Advisors Core Training provides a foundation for any financial professional who truly desires to integrate their faith into their practice, and understand a biblical basis for professional financial advice. This 16-hour web-based training will give you a greater understanding of the unique role that you have as a Christian financial professional, and the opportunity you have to see Kingdom impact personally, in the lives of your clients and in your community. Regardless of your financial discipline or firm size, Kingdom Advisors Core Training will give you the confidence to deliver biblical wisdom in financial advice and develop stronger client relationships.
Save 250
$
KingdomAdvisors.org/ TrainingHome.html
KINGDOMADVISORS.ORG
T O
T H E
N E X T
L E V E L !
“The course is absolutely life changing! I’ve been a Financial Advisor for 26 years, and my only regret is that I didn’t have this 25 years ago!” Gary Krings. Fairway, KS “It was the most valuable training I have ever been exposed to. Right from the 1st video I’ve been implementing things I learned.” Tim Jenkins, CFP®, Peterborough, ON “I just finished through the 20th module and can’t tell you how much I have learned through this process. I wish I could have done it 30 years ago… but it’s never too late. I’ve already started to apply the principles I learned in my business, church and family life, and I am starting to feel the positive impact!” Miguel J. Rodriguez, CPA, PFS, Plantation, FL “What an incredible blessing to have Ron Blue’s mentoring and training in this OnDemand format. I am able to review it over and over again to practice for presentations, to make it my own and to deliver it with confidence. What a blessing!” Deborah Warringer, CFP®, Sarasota, FL
C O M M I T T E D TO EX X C E LL L E NCE IN BII B LIC C A L LY R E S P ONSS I B L E I N V ESTING
S
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
4UFXBSETIJQ 1BSUOFST XBT UIF WFSZ mSTU 1SFNJFS $PSQPSBUF 4QPOTPS PG ,JOHEPN "EWJTPST BOE XF BSF DPNNJUUFE UP FYDFMMFODF JO #JCMJDBMMZ 3FTQPOTJCMF *OWFTUJOH 8F BSF FRVBMMZ DPNNJUUFE UP TFSWJOH $ISJTUJBO mOBODJBM BEWJTPST MJLF ZPV UP IFMQ DSFBUF ,JOHEPN XFBMUI VTJOH B ,JOHEPN BQQSPBDI JO PSEFS UP BDIJFWF ,JOHEPN HPBMT 7JTJU PVS BEWJTPS TJUF UP MFBSO NPSF BCPVU UIF SFTPVSDFT BWBJMBCMF UP ZPV IUUQT BEWJTPS TUFXBSETIJQQBSUOFST DPN $MJDL iSFHJTUFSw BOE VTF UIF SFHJTUSBUJPO LFZ TQ 'PS NPSF JOGPSNBUJPO PS BTTJTUBODF QMFBTF DPOUBDU .JLF ,VDLFM PS NLVDLFM!TUFXBSE TIJQQBSUOFST DPN
1MFBTF DPOUBDU .JLF ,VDLFM t Y t NLVDLFM!TUFXBSETIJQQBSUOFST t XXX 4UFXBSETIJQ1BSUOFST DPN
Transcending the Strategies Tactics, & Tools OF FINANCIAL PLANNING continued from page 18
Wouldn’t it be better to have clarity on what retirement really means for each client first? Let’s say their vision for the future includes striving for the eradication of AIDS. Wouldn’t they be better served by being encouraged to give to AIDS research or treatment all around the world today and not merely waiting until some future date? This could include, of course, the use of charitable trusts and other specific vehicles for the wealthy client in addition to current outright gifts of securities, property, or cash.
Tools. Abraham Maslow said, “If the only tool you have is a hammer, you tend to see every problem as a nail.” How often do those holding themselves out as financial planners operate under similar flawed thinking? They have the “best” mutual funds, asset management program, asset allocation models, insurance policies, hedge funds, asset protection trusts, and on and on. And they are equipped to go out and “hammer” these tools into anyone who breathes, as if everyone is the proverbial nail. For example, does everyone need life insurance? Some would say yes. I certainly would say probably not. Are all tools the right tool for every situation? Every financial planning professional needs to ask themselves if they are guilty of this line of reasoning. Are we forcing our rationales on our clients? Fundamentally, are thousands of us dispensing some form of financial advice, spending more time on strategies, tactics, and tools? Doesn’t it make more sense to spend more time empowering clients to seek maximum clarity about their mission, vision, values, and goals before we pull out our hammers and try to pound in those nails? I, for one, think so, if this profession is to move from merely being an industry that churns out the product to create demand in the absence of need. Michael L. Jones, ChFC, CFP®, is president of Lifetime Financial Solutions Inc. in Louisville, Kentucky. Michael focuses his practice on comprehensive Values Based Financial Planning™. Michael can be reached at advisor7@bellsouth.net. Reprinted with permission by the Financial Planning Association, Journal of Financial Planning, August 2008, Michael L. Jones, ChFC, CFP®, Transcending the Strategies, Tactics, and Tools of Financial Planning. For more information on the Financial Planning Association, please visit www.fpanet.org or call 1-800-322-4237.
How Much Would You Give if You Knew Jesus Was Coming Back in One Year? If your answer to this question is different than how much you are planning to give in the next year, I think it might be good to ask yourself, “Why?” Would the amount you give be different because with only one year left you would be willing to make significant, personal sacrifices since it would only be for one year? Is it that with only one year left, as the old hymn says, “the things of earth grow strangely dim in the light of his glory and grace”? Might it be that sending our financial resources on ahead seems much more appealing since we will be getting them all back in the next twelve months when we get to heaven? I think when you shorten the timeline of life, the world and our place in it seems to take on an entire new perspective and the real priorities of life literally explode within our consciousness. And these priorities seldom are the things that we are focused on in our daily routine. The tyranny of the urgent overrides the priority of the important. If you only had one more year to impact the Kingdom with what God has entrusted to you, would you be living and giving differently than you are? If so, it might be good to recalibrate your priorities to reflect an eternal mission instead of a temporal one.
Endnotes Mark “Plus ça change, plus c’est la même chose.” Attributed to Alphonse Karr, French journalist and novelist, 1808–1890. Les Guêpes, January 31, 1849.
1
2
Special thanks to The Legacy Companies of Boston, Massachusetts, and their Legacy Wealth Optimization System™ for the core concepts that contribute to these distinctions.
The author, E. G. “Jay” Link is both an ordained minister and the President/CEO of Kardia, Inc., a firm that specializes in assisting wealthy Christian families with the stewardship of all of their life resources. He is also the author of the book Family Wealth Counseling: Getting to the Heart of the Matter. Mr. Link may be reached via email at jlink@KardiaPlanning.com.
KINGDOMADVISORS.ORG
|
PAGE21
RON•BLUE
RON BLUE ANSWERS QUESTIONS F
Q
A
“How might we counsel clients toward a proper biblical perspective of the current economic uncertainty and market volatility?” First let me say that I believe this question will be with us five, 10, even 20 years from now. I’ve been in this business 40 years, and this question comes up every year. So it’s important to realize that when you talk about the uncertainty of an economy, remember that they are all uncertain. Years ago, I sat in my basement and asked the Lord, “What do I believe? What should I be telling my clients?” I realized there are just a few economic scenarios that really can occur. They are inflation, deflation, monetary collapse (which is inflation carried to the extreme), political change in terms of the political parties in this country, or revolutionary actions in other countries that really upset everything. Yes, we are experiencing economic uncertainty now in terms of the stock market and volatility. But if you think about the economic scenarios mentioned above, and then consider the Biblical principles related to investing, the answer becomes quite clear in terms of how to think ourselves and how to counsel our clients. One of the main perspectives that
PAGE22
|
ON PURPOSE
|
FOURTH QUARTER
|
Scripture offers us, and which Wall Street follows, too, is to take a long-term approach to investing. We should couple that with the important strategy of diversification, as well as the use of professional counsel when investing. Using those certainties as a guide, you can then ask your clients, “As an individual, how do you live? Do you follow the Biblical principles of living within your income, avoiding debt, building liquidity and taking a long-term perspective? Layer that with the understanding that God is in control, and God is the owner. Then ask yourself, given today’s economic uncertainty, what would I do differently?” I have always come to the conclusion that if I’m following Biblical principles, I wouldn’t do anything differently. Personally, I believe that we will always have economic uncertainty. The prognosticators generally take a short-term perspective, and as a consequence, they erroneously try to predict what’s going to happen day by day. No one can do that. So, if I’m solidly following Biblical principles when making my lifestyle and investment decisions, any type of economic uncertainty shouldn’t change what I do or how I counsel clients.
2008
•ANSWERS
FROM FINANCIAL PROFESSIONALS Q
A
How do you introduce to clients the concept of “setting a financial finish line”? Recently, I was talking to an advisor who leads the financial planning area for his firm’s clients, and he mentioned that he was developing a financial plan for a specific client. I commented that while an advisor can develop a financial plan, that plan is typically obsolete before it is even delivered to the client because of the dynamics of the marketplace, life situations and other circumstances. I told him that I think advisors need to be talking with our clients about financial planning as a lifelong process. If my mindset as an advisor is that I am advising my clients on an on-going lifetime journey, then I know that together we are going to see the dynamics, the facts, and the circumstances of this journey change over time. If a “plan” is in place, it will have to be adjusted constantly in order to meet these changing circumstances. If I am focused on planning – an on-going process – then regardless of the changes in specific circumstances, I can advise my client according to their “financial finish line.” In other words, as an advisor, I should recognize and remember that my clients are always asking themselves these questions, whether they verbalize them or not, “How much is enough? Do I have enough? Will it continue to be enough to last for all of the needs of the rest of my life?”
That’s why it is very easy to introduce the topic of “setting financial finish lines” with a focus on planning. I can simply ask the questions, “Have you ever thought h h about b how much is enough? Have you set a financial finish line for yourself? What are your goals? How will know when you have achieved everything that you want to achieve? How can I help you reach the point where you know you have enough?” I have found that these questions come up very frequently in client meetings, either because I ask the questions directly or because the client refers to them in general. In any case, it is a very easy topic to bring up and talk about. The discussion then becomes values-based, because the answer to the question is largely driven by the client’s values and their beliefs. In other words, if I’m 100 percent dependent upon God, I know I have enough and I am always going to have enough. However, if I’m not dependent on God and I am driven by fear or greed or some other motive, I’ll never have enough and I can never accumulate enough. Once you are able to help your clients understand their values and beliefs as they relate to money, then you can begin to set a financial finish line.
KINGDOMADVISORS.ORG
|
PAGE23
KINGDOM ADVISORS 2009 ANNUAL CONFERENCE As a Christian financial professional, you more than anyone know the extraordinary role that you play in the lives of your clients. At Kingdom Advisors, we are committed to equipping you to maximize the opportunity you have to realize Kingdom impact as you serve clients every day. Our 2009 Annual Conference, “Shine Through”, now in its 5th year, is your opportunity to join hundreds of other professionals from the Kingdom Advisors community to grow in your faith, network with other professionals and learn new ideas for your clients and practice. FEBRUARY 11 TO 13, 2009 • OMINI HOTEL AT CNN CENTER • ATLANTA, GEORGIA
Ron R Blue
Joseph J h Stowell
Bob B b Doll
• More than 15 breakout workshops on practice management, discipleship, investing, charitable giving, spiritual growth and more Kingdom Advisors 5605 Glenridge Dr., Suite 450 Atlanta, GA 30342
FIRST CLASS PRESORTED U.S. POSTAGE PAID PERMIT #3259 ATLANTA, GA
• The introduction of case studies to our breakout line-up
David D id Swanson
Dennis D i Rainey
Ravi R i Zacharias
• Network with committed Christian financial professionals • A special presentation from Bob Doll, Vice Chairman and Global Chief Investment Officer for Equities, on the current market and economic environment
These are just a few of the special events and sessions we have planned for you. Early registration is available today at www.KingdomAdvisors.org/2009
5605 GLENRIDGE DR., SUITE 450 • ATLANTA, GA 30342 KingdomAdvisors.org T: 404-497-7680 • F: 404-497-7685