www.faithbasedinvestor.com
How to build a faith-based
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By Jay Peroni, CFP®
Chief Investment Officer Faith-Based Investor, LLC
www.faithbasedinvestor.com
www.faithbasedinvestor.com
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
www.faithbasedinvestor.com
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
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What we will cover
in the next 60 minutes:
Opportunities
5 Questions WRDVNEHIRUH\RXLQYHVW«
5 Trends WRZDWFK«
5 Investments RQRXUUDGDU«
5 Traps to Avoid JRLQJIRUZDUG«
Solutions
12 Key Principles for Success
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Right now, there is so much noise!
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www.faithbasedinvestor.com
2012: What will election
results mean:
For the stock market?
For future taxes?
For the economy?
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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?
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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
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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)
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5 Traps to
Avoid
going
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Many are confused, sitting
idle, record amounts of
cash on the sidelines,
panic, fear!
ONE
BIG
Question:www.faithbasedinvestor.com
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.
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Helping you grow wealth with a purpose!
Helping you protect wealth during uncertain times!
Helping you share wealth ZLWKPRUHRI*RG¶VSHRSOH
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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)
Growing
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)
Protecting
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
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www.faithbasedinvestor.com
1. Save for emergencies
(at least 10%)
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
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2. Save for financial
freedom (at least 10%)
Look for growth Watch out for taxes
Control investment costs Diversify your holdings Seek wise counsel
Invest consistently
Personalize your investments Growing
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3. Develop a faith-based
investment program
Ask questions Decide: ZKDW¶VPRVWLPSRUWDQW" 2. Who will manage3. Choose a reputable brokerage firm
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Five questions to ask before
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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?
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Steps to build a
faith-based investment
program
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
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Are your faith & values important
to you?
How should money be invested? What values are important? What are you supporting? Does it matter?
Will it cost me something? Growing
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What is the difference
between social responsible
investing and faith-based
investing?
VS.
Faith-Based Investments
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Moral Screens
How much of your money do want supporting: Abortion Pornography Gambling Explicit entertainment Homosexual activism
Embryonic stem cell or fetal tissue research Growing
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Social Screens
How much of your money do want supporting: Tobacco Alcohol Poor environmentalism Dangerous regimes Something else? Growing
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Build your own mutual fund
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
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4. Use multiple asset classes
Start or own a private company Domestic stocks International stocks Bonds
Real estate
Alternative investments (gold, oil, real estate)
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www.faithbasedinvestor.com
Managing Your Risks
#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? Protecting
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5. Have proper insurance coverage
Too much insurance: wasteful Not enough insurance: unwise steward
Insurance is a tool just like any other investment opportunity
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Concern What if I get injured and FDQ·WZRUN 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
What are your concerns?
Protectingwww.faithbasedinvestor.com
6. Diversify your accounts
Asset allocation: minimize investment risk
Asset location: maximize tax efficiency
Proper liquidity: have access to emergency funds and maintain flexibility
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Asset Allocation:
Minimize investment risks
Faith-Based Investor Mid Cap Stocks Large Cap Stocks Real Estate Small Cap Stocks International Stocks Emerging Market Stocks Bonds Alternative Investments
At Faith-Based Investor, we use 8 distinct categories
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)
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Example of asset allocation
Balanced Portfolio (moderate risk) 60% 30% 10% 5% Equity Alternative Investments Fixed Income Cash 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%
Allocation is for illustrative purposes only Protecting
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Taxable
Tax-free
Tax-deferred
Asset Location:
Maximize tax efficiency
Protectingwww.faithbasedinvestor.com
Maintain proper liquidity
Protecting
Savings
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Protecting
7. Develop a proper estate plan
Wills Trusts Life insurance and retirement account beneficiary planning Powers of attorney
Health care proxies Final wishes
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8. Have multiple income streams
Wages Dividends Rental income Royalties Commissions Affiliate fees Licensing Interest Consulting fees Protecting
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How are you protecting your income?
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www.faithbasedinvestor.com
9. Give away at least 10%
annually
Seek to automate giving Cash
Appreciated securities
Old cars, boats, and other property Business interests
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10. Develop a
charitable giving
plan
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
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11. Incorporate advanced
gifting strategies
1. Irrevocable life insurance trusts 2. Donor advised funds
3. Charitable gift annuities 4. Charitable remainder trusts 5. $QGPDQ\RWKHUV«
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12. Give away your time,
talent, and treasure
Giving is not just money. How we use our time, talents, and treasures is a direct reflection of our faith.
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Fortune magazine top 400wealthiest 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
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success or happiness
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Now what? ONE Decision!
How will you proceed going forward?
Do Nothing!
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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
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Have a coach/ financial
accountability partner
'RQ¶WJRLWDORQH 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.
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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
* Faith-Based Investor, LLC is a Registered Investment Advisor Cost: Fee-Based
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FREE 30 Minute
Consultation
%RRN\RXUDSSRLQWPHQWWRGD\/HW¶VVLW down and see how we may be able to create a faith-based plan for you!