Tuesday, December 23, 2008
Sunday, December 21, 2008
Peter's Christmas: Another Option
Around Thanksgiving, I posted some gift ideas for Peter. If you've visited the Amazon gift-list, you may have noticed that since then, Amanda has added some music in addition to the books. Don't miss that. But although Christmas is only a few days away, I'm writing tonight to provide you with a gift option that's a little bit bigger than toys, books, and cds.
Given Peter's general lack of wants, and given Amanda's and my current lack of means, another Christmas present you might consider is a monetary investment in Peter's future. It may well be that there may not be a better time to get into the market—Warren Buffet certainly thinks so. Since several of you have already contacted us about this, let me explain our position.
First, let me say that I'm very hesitant to present this option. Here's why: If Peter proves to be a fool, handing him a sum of money at 18 or 21 will prove to be a curse to him rather than a blessing. Even if Peter is an extraordinarily wise young man, handing him a sum of money at 18 or 21 may still prove to be a curse to him.
It is extremely important for a young man to learn to work and to provide for his own needs. It is good for him to learn that harvests only come after a long, hard summer with the hand set to the plow. This is the way God made the world, and it is meant to teach us about heavenly realities. It is good for a young man to have brushes with poverty, and to learn to rely on God, who provides richly for all of his needs. It is good for him to learn that man doesn't live by bread or mammon alone, but by every word that proceeds from the mouth of God. It is much better and more satisfying for any man to eat bread that he earned by the sweat of his own brow than it is for him to feast off of another man's dime.
On the other side of this is the blessed humiliation that comes with depending on the provision of others. It is certainly the case that those who would give their lives in service to God's people most frequently rely on the abundance of others to provide for their families. God made it that way for a reason. And it is a good and humbling discipline for any man worth his salt. In fact, if looking to the abundance of others in order to feed his family does not assault a minister's pride, and if he's not willing to work with his own hands to enable him to continue in ministry, he's probably a lazy free-loader who should never be entrusted with the care of any man's soul.
If God continues to lead Amanda and I on our current path, this is the environment that Peter will probably grow up in. If a young man growing up in this environment learns early that there is nothing a man has that God hasn't given to him, learns early the steady discipline of hard work, and learns the secret of being content in all circumstances, the financial provision of others may prove to be a tremendous blessing to him—one that enriches his life and enables him to do things for God's Kingdom and for his family that he would be otherwise unable to do. It might be a blessing that causes him to bow his knees to his Heavenly Father for such rich provision. There is no guarantee that Peter will be this kind of young man, though Amanda and I both pray and trust that God would use our feeble efforts to make him so.
But if you intend to invest financially in Peter's future, I want you to do it wisely and soberly, knowing that the physical investments you make will have spiritual consequences in Peter's life, whether for good or for bad. Of course, understand that money is just a tool. It is not evil. I'm not arguing that at all. If Peter turns out to be a fool, it won't be the money that corrupts him. God gives us amazing gifts every day that we turn to our own corrupt purposes. And some gifts are more dangerous (or risky) than others. That doesn't make the gift or the giver evil. If you choose to put money away for Peter's future, and Peter blows it on prostitutes and drugs, Peter will be the one who answers for it.
But I want each of us to deal with the reality that we're all materialists who don't really believe that it is better to be poor and godly than rich and wicked. We don't really believe that actions should have consequences, and that fools should learn wisdom by their failures. So we fork over billions of dollars to corrupt lending institutions and incompetent auto corporations in order to keep them afloat and spare ourselves some short-term difficulties. The reality is that what the United States government is doing right now is only a morality play of how we deal with our own wayward children. For us, it starts by not disciplining them as small children and it ends... does it end? In this way, we stamp our seal of approval on their folly and ensure that they never learn the lesson of the farmer: God is not mocked—whatever a man sows, that will he also reap. We teach them that there will never be a day of reckoning where every man will give an account to God for what he has done in this life. We teach that actions have no consequences. And we prove that we don't really love our children. This is what it now means to be Americans.
So, now that I've said that... If you're interested in investing financially in Peter's future, we have a plan. We've opened a UTMA account in Peter's name with Raymond James. At first glance, the UTMA may seem like a poor option when compared to a Coverdale, 529, or other options, so let me briefly explain the logic. The problem with education accounts is that although they provide great tax benefits, their usage is extremely limited. This is a huge disadvantage when you consider the trajectory of our nation toward socialized post-secondary education (what do you think subsidized loans are?). Think of it this way: If you have $20,000 of disposable assets and your options are to take a chunk out of your government subsidized student loans at .025% interest or to take a chunk out of your mortgage at 7% interest, which way would you prefer to direct your assets? I'd rather take a chunk out of the mortgage or pay cash for a car. If the money were invested in a 529, for instance, there wouldn't even be an option. It would go towards education. But since we have absolutely no clue what the education/home/auto markets will actually look like 18-20 years from now, it is better to keep Peter's assets as flexible as possible. The UTMA provides this freedom and flexibility, but it also presents its own problem: it does so without the tax shelter of standard education accounts. So our plan is to temporarily take advantage of the freedom and flexibility of the UTMA while taxes aren't an issue (it will take awhile before any income made off of this account is taxable), and to then transfer the funds over to a Roth IRA when Peter is old enough. This will provide Peter with the best combination of tax benefits and flexibility. Yes, we can actually do that.
For the especially curious, the funds that any individual invests in this account will be directed to a medium growth mutual fund with American Funds. American Funds is an old fund family with conservative principles, a disciplined approach to investment, an outstanding management structure, incredibly low average expenses, and funds that consistently best the competition by 1-2%. Although they have high front-end loads, after counsel and research, I personally think they're the best and most stable option in the current financial climate.
If you're interested in giving Peter a monetary gift, and you're comfortable with our investment strategy, you can email me at jacob[dot]mentzel[at]gmail.com, and I'll provide you with the details you need.
I'm writing this blog post from the home of Doug Ummel, our financial advisor. We've been house-sitting for his family all week, and it's been a wonderful get-a-way for Amanda and me. If you're interested in sound, biblical financial counsel, I couldn't commend a more wise and godly man to you.
Given Peter's general lack of wants, and given Amanda's and my current lack of means, another Christmas present you might consider is a monetary investment in Peter's future. It may well be that there may not be a better time to get into the market—Warren Buffet certainly thinks so. Since several of you have already contacted us about this, let me explain our position.
First, let me say that I'm very hesitant to present this option. Here's why: If Peter proves to be a fool, handing him a sum of money at 18 or 21 will prove to be a curse to him rather than a blessing. Even if Peter is an extraordinarily wise young man, handing him a sum of money at 18 or 21 may still prove to be a curse to him.
It is extremely important for a young man to learn to work and to provide for his own needs. It is good for him to learn that harvests only come after a long, hard summer with the hand set to the plow. This is the way God made the world, and it is meant to teach us about heavenly realities. It is good for a young man to have brushes with poverty, and to learn to rely on God, who provides richly for all of his needs. It is good for him to learn that man doesn't live by bread or mammon alone, but by every word that proceeds from the mouth of God. It is much better and more satisfying for any man to eat bread that he earned by the sweat of his own brow than it is for him to feast off of another man's dime.
On the other side of this is the blessed humiliation that comes with depending on the provision of others. It is certainly the case that those who would give their lives in service to God's people most frequently rely on the abundance of others to provide for their families. God made it that way for a reason. And it is a good and humbling discipline for any man worth his salt. In fact, if looking to the abundance of others in order to feed his family does not assault a minister's pride, and if he's not willing to work with his own hands to enable him to continue in ministry, he's probably a lazy free-loader who should never be entrusted with the care of any man's soul.
If God continues to lead Amanda and I on our current path, this is the environment that Peter will probably grow up in. If a young man growing up in this environment learns early that there is nothing a man has that God hasn't given to him, learns early the steady discipline of hard work, and learns the secret of being content in all circumstances, the financial provision of others may prove to be a tremendous blessing to him—one that enriches his life and enables him to do things for God's Kingdom and for his family that he would be otherwise unable to do. It might be a blessing that causes him to bow his knees to his Heavenly Father for such rich provision. There is no guarantee that Peter will be this kind of young man, though Amanda and I both pray and trust that God would use our feeble efforts to make him so.
But if you intend to invest financially in Peter's future, I want you to do it wisely and soberly, knowing that the physical investments you make will have spiritual consequences in Peter's life, whether for good or for bad. Of course, understand that money is just a tool. It is not evil. I'm not arguing that at all. If Peter turns out to be a fool, it won't be the money that corrupts him. God gives us amazing gifts every day that we turn to our own corrupt purposes. And some gifts are more dangerous (or risky) than others. That doesn't make the gift or the giver evil. If you choose to put money away for Peter's future, and Peter blows it on prostitutes and drugs, Peter will be the one who answers for it.
But I want each of us to deal with the reality that we're all materialists who don't really believe that it is better to be poor and godly than rich and wicked. We don't really believe that actions should have consequences, and that fools should learn wisdom by their failures. So we fork over billions of dollars to corrupt lending institutions and incompetent auto corporations in order to keep them afloat and spare ourselves some short-term difficulties. The reality is that what the United States government is doing right now is only a morality play of how we deal with our own wayward children. For us, it starts by not disciplining them as small children and it ends... does it end? In this way, we stamp our seal of approval on their folly and ensure that they never learn the lesson of the farmer: God is not mocked—whatever a man sows, that will he also reap. We teach them that there will never be a day of reckoning where every man will give an account to God for what he has done in this life. We teach that actions have no consequences. And we prove that we don't really love our children. This is what it now means to be Americans.
So, now that I've said that... If you're interested in investing financially in Peter's future, we have a plan. We've opened a UTMA account in Peter's name with Raymond James. At first glance, the UTMA may seem like a poor option when compared to a Coverdale, 529, or other options, so let me briefly explain the logic. The problem with education accounts is that although they provide great tax benefits, their usage is extremely limited. This is a huge disadvantage when you consider the trajectory of our nation toward socialized post-secondary education (what do you think subsidized loans are?). Think of it this way: If you have $20,000 of disposable assets and your options are to take a chunk out of your government subsidized student loans at .025% interest or to take a chunk out of your mortgage at 7% interest, which way would you prefer to direct your assets? I'd rather take a chunk out of the mortgage or pay cash for a car. If the money were invested in a 529, for instance, there wouldn't even be an option. It would go towards education. But since we have absolutely no clue what the education/home/auto markets will actually look like 18-20 years from now, it is better to keep Peter's assets as flexible as possible. The UTMA provides this freedom and flexibility, but it also presents its own problem: it does so without the tax shelter of standard education accounts. So our plan is to temporarily take advantage of the freedom and flexibility of the UTMA while taxes aren't an issue (it will take awhile before any income made off of this account is taxable), and to then transfer the funds over to a Roth IRA when Peter is old enough. This will provide Peter with the best combination of tax benefits and flexibility. Yes, we can actually do that.
For the especially curious, the funds that any individual invests in this account will be directed to a medium growth mutual fund with American Funds. American Funds is an old fund family with conservative principles, a disciplined approach to investment, an outstanding management structure, incredibly low average expenses, and funds that consistently best the competition by 1-2%. Although they have high front-end loads, after counsel and research, I personally think they're the best and most stable option in the current financial climate.
If you're interested in giving Peter a monetary gift, and you're comfortable with our investment strategy, you can email me at jacob[dot]mentzel[at]gmail.com, and I'll provide you with the details you need.
I'm writing this blog post from the home of Doug Ummel, our financial advisor. We've been house-sitting for his family all week, and it's been a wonderful get-a-way for Amanda and me. If you're interested in sound, biblical financial counsel, I couldn't commend a more wise and godly man to you.
Thursday, December 18, 2008
Christmas Tea
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A couple weeks ago, despite cold and snow, 50 or so women from our church gathered for a Christmas tea. All the babies under a year were coralled for a picture. There are 9 shown and another handful that weren't able to make it.
Friday, December 12, 2008
Correction!
Earlier in Jake's post about gifts for Peter this Christmas, he mentioned that Peter wears 9-12 month clothing. However, the little boy is growing like a weed and I'm afraid 9-12 wouldn't be of much use after Christmas. Your best bet would be either 12 or 12-18.
I can't believe our boy is getting so big!
I can't believe our boy is getting so big!
Thursday, December 4, 2008
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