How to build a faith-based

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How to build a faith-based


By Jay Peroni, CFP®

Chief Investment Officer Faith-Based Investor, LLC




ƒ 15 years of financial services experience as a financial advisor

ƒAuthor of two books The Faith-Based Millionaire and

The Faith-Based Investor and 3 e-books.

ƒ An expert authority on the subject of "Faith-Based Investing.

ƒ Featured on Crosswalk,, ABC News, ChristianPF, Master Your Money, Morning Show

FamilyNet, and a host of other notable media. ƒMaster of Science in personal financial planning ƒ A Certified Financial Planner professional (CFP) ƒ A Qualified Kingdom Advisor from Kingdom Advisors ƒ Founder of


Why Faith-Based Investor?

ƒ Money management and financial planning from a Biblical perspective.

ƒ Founded on traditional American values and biblical principles.

ƒ Our commitment and focus is to help our clients prosper and plan without compromising their faith and values

ƒ We take a first class service approach and apply it

through integrity, hard work, quality service, and personal attention to details.

ƒ Our firm offers a paid-newsletter, portfolio management, and financial planning services.

A first class experience


What we will cover

in the next 60 minutes:



ƒ 5 Trends WRZDWFK«

ƒ 5 Investments RQRXUUDGDU«

ƒ 5 Traps to Avoid JRLQJIRUZDUG«


ƒ 12 Key Principles for Success


Right now, there is so much noise!




2012: What will election

results mean:


For the stock market?


For future taxes?


For the economy?


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?


5 Trends we are closely


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


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)


5 Traps to






Many are confused, sitting

idle, record amounts of

cash on the sidelines,

panic, fear!





How do you reach your

financial goals without

sacrificing your


Faith-Based Investor can help you find your way using a GPS System based on biblical principles.


Helping you grow wealth with a purpose!

Helping you protect wealth during uncertain times!

Helping you share wealth ZLWKPRUHRI*RG¶VSHRSOH


‡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)


‡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)


‡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



1. Save for emergencies

(at least 10%)


3 months of emergency funds (take home pay)

ƒ 3 months worth of non-perishable food and water

ƒ Rainy day fund ƒ Maximize yield

ƒ Diversify your savings ƒ Minimize taxes


2. Save for financial

freedom (at least 10%)

ƒ Look for growth

ƒ Watch out for taxes

ƒ Control investment costs ƒ Diversify your holdings ƒ Seek wise counsel

ƒ Invest consistently

ƒ Personalize your investments Growing


3. Develop a faith-based

investment program

ƒ Ask questions ƒ Decide: ZKDW¶VPRVWLPSRUWDQW" 2. Who will manage

3. Choose a reputable brokerage firm


Five questions to ask before


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?


Steps to build a

faith-based investment


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


Are your faith & values important

to you?


How should money be invested? ƒ What values are important?

ƒ What are you supporting? ƒ Does it matter?

ƒ Will it cost me something? Growing


What is the difference

between social responsible

investing and faith-based



Faith-Based Investments


Moral Screens

How much of your money do want supporting: ƒ Abortion ƒ Pornography ƒ Gambling ƒ Explicit entertainment ƒ Homosexual activism

ƒEmbryonic stem cell or fetal tissue research Growing


Social Screens

How much of your money do want supporting: ƒ Tobacco ƒ Alcohol ƒ Poor environmentalism ƒ Dangerous regimes ƒ Something else? Growing


Build your own mutual fund

ƒ Can contain up to 100 securities

ƒ Can contain stocks, ETFs and mutual funds ƒ You can have as many Folios as you like

ƒ Folios can be bought or sold in simple dollar amounts ƒ You can buy or sell fractions of shares in Folios

ƒ Automatic on-going investment contributions are easily setup

ƒ No commissions for buying, selling or modifying a Folio*

* With a fee-based account



4. Use multiple asset classes


Start or own a private company ƒ Domestic stocks

ƒ International stocks ƒ Bonds

ƒ Real estate

ƒAlternative investments (gold, oil, real estate)



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?



5. Have proper insurance coverage

ƒToo much insurance: wasteful ƒNot enough insurance: unwise steward

ƒ Insurance is a tool just like any other investment opportunity


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


Insurance Long-term care

What are your concerns?



6. Diversify your accounts

ƒ Asset allocation: minimize investment risk

ƒ Asset location: maximize tax efficiency

ƒ Proper liquidity: have access to emergency funds and maintain flexibility


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)


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





Asset Location:

Maximize tax efficiency



Maintain proper liquidity





7. Develop a proper estate plan


Wills ƒ Trusts

ƒ Life insurance and retirement account beneficiary planning ƒ Powers of attorney

ƒ Health care proxies ƒ Final wishes


8. Have multiple income streams

ƒ Wages ƒ Dividends ƒ Rental income ƒ Royalties ƒ Commissions ƒ Affiliate fees ƒ Licensing ƒ Interest ƒ Consulting fees Protecting


How are you protecting your income?



9. Give away at least 10%


ƒ Seek to automate giving ƒ Cash

ƒ Appreciated securities

ƒ Old cars, boats, and other property ƒ Business interests


10. Develop a

charitable giving


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


5. Create a lasting legacy for generations to come


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«


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.



Fortune magazine top 400

wealthiest people in world no happier than general population.

ƒ More money makes you more of what you already are.

ƒ True contentment comes living out your faith and values


success or happiness


Now what? ONE Decision!

How will you proceed going forward?

Do Nothing!



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


Have a coach/ financial

accountability partner



ƒ Financial accountability helps minimize costly mistakes

ƒ Even the most successful still use a coach ƒ Lack of accountability is a root of failure ƒ Find a manager/partner who has a vested interest and shares same faith/values.


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


FREE 30 Minute


%RRN\RXUDSSRLQWPHQWWRGD\/HW¶VVLW down and see how we may be able to create a faith-based plan for you!


Thank you for

your time!




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