Biblical Truth & Practical Application
At The Life Financial Group, we believe it’s important for believers to have every aspect of their lives transformed by the application of Biblical truths. This includes the way money is viewed, managed, and invested. We believe all things belong to God, including our money, and we should exercise Biblical stewardship over all our resources. These 6 Rules of Investing have helped us and our clients honor God through our investing habits.
1. Maintain A Disciplined Approach to Investing
All financial investments have a degree of risk, and therefore, The Life Financial Group works with clients on an individual basis to determine their level of risk. This is determined by considering the client’s age, investment experience, resources, and goals among other factors. Our goal is to reduce risk using appropriate asset allocation and diversification. Of course, diversification and asset allocation can not guarantee a profit or protect against a loss, but it can increase the likelihood of success.
2. Look for Track Records Longer than Ten Years
Ideally, we want to use investments with a proven track record. This means we need to evaluate the historical performance of the investment, but also the experience of the investment manager. Remember, past performance is not a guarantee of future returns, but it may give you an idea of what is ahead.
3. Reduce or Avoid Investing in “Sin Stocks”
We believe it is important to invest in funds which are not offensive to the Christian worldview and provide excellent growth opportunities. Clients are encouraged to consider the moral and ethical considerations of investing which align with their convictions, and where possible, we seek to avoid alcohol, tobacco, pornography, and casinos.
4. Keep Your Investing Easy to Understand
As wealth managers, we are passionate about our clients having a basic understanding of how their money is invested. Investing does not need to be overly complicated, and we encourage our clients to continually learn as they grow in wise stewardship. We meet with our clients’ families on a regular basis to help them stay organized while keeping their financial affairs in order.
5. Avoid Redemption Fees and High Annual Expenses
At Life Financial Group, we realize our clients need to be able to access their funds whenever they need them. This means that we seek to minimize and avoid accounts with long surrender penalties, stiff redemption costs, and high annual expenses. We also realize there may be a time and place where some portion of a portfolio may need to be invested for a three to five year holding period. This is why we work hard to help our clients maintain ample reserves of available cash in an insured savings account that pays interest.
6. Use Independent, Third-Party Research
Most importantly, independent research and objective literature are important when evaluating the merits of an investment. Third-party, independent, and unbiased research reports will provide helpful information which may not be included in the selling company’s literature.
