Honing your skills

Traditional retirement planning focuses on these areas:

*Setting an expected date to retire
*Managing risk with investment assets to fund retirement
*Income projection from assets, pensions and social security

One neglected area of planning is honing your skills and abilities. A friend of mine who is also a financial advisor sent me a link to a Barron's article: Next, The Retirement Bubble

The article expresses some thoughts that I have been blogging about for a while- although in harsher terms. The idea of retirement that is so prevalent in American thinking is pure fantasy for most people working today. And that is not a bad thing.

The biblical model is clearly a model of productivity for the Lord as long as there is breath in your lungs and blood pumping to your heart. Jesus expressed this in John 9:4, "We must work the works of Him who sent Me while it is day; night is coming, when no one can work." This life on earth is day. Death is night. The works of God can mean many different things and it may not always be income generating.

But the truth is that most people are living longer. And assets are in decline overall due to the financial crises of the last nine years. Society cannot afford to pay people income for thirty plus years while they are not contributing to the growth of the economy.

If the trend continues, our economy will be in shambles. We would have a vicious cycle of large population blocks of active voters insisting on social security and medicare benefits that stay at the current levels or better. This would lead to unsustainable tax increases. That would lead to a sluggish economy and taxpayers fleeing the United States for economies that offer lower taxes and greater growth prospects.

The good news is that many forward thinkers on these issues believe that this outcome will be avoided. For example, the authors of The Fourth Turning- Strauss and Howe- believe that history is cyclical (a view I do not share entirely). In their view, the current crisis was caused by a 20-year cycle that was highlighted by apathy and addiction to leisure. This led to unsustainable levels of debt and a financial crisis.

Strauss and Howe believe that the next cycle will be one that values hard work and a return to productivity. This will lead to another cycle of prosperity down the road.

So what is the point of all this? Like the author of the article in Barron's, I believe that we are facing a reality that most people are going to dramatically rethink the idea of retirement. I promote the strategy of never retiring to a life of leisure to anyone who will listen. I believe it is a less stressful, more fulfilling life.

But I agree with the article that most people should consider a 3-5 year sabbatical instead of traditional retirement. And this is where honing your skills comes in. We should be on a constant path of personal growth. The economy rewards flexibility and adaptation to change.

What this means to me is that I need to constantly hone my skills as a financial advisor so that I am at the top of profession in terms of knowledge and wisdom. But it also means having a diverse enough set of skills so that if Congress passed a law tomorrow that was devastating to the financial planning profession, I would be able to transition into another productive career within a short period of time.

The idea that you work for a company for 30 years and retire at age 55 into a life of leisure for 40 years is dead. It was never a healthy thing. Pray for God to reveal your gifts. Use those gifts for God-glorifying productive work. If you have recently lost a job or you are facing the dread of an uncertain future, stay encouraged.

If you are in Christ, you have the power of the Holy Spirit in you. You have innovation, courage and perseverance at your disposal. Here are a few resources that can help you hone your skills and work towards a position of greater financial flexibility so that your time will be freed up to spend as God directs.

For He who began a good work in you will bring it to completion at the day you meet Christ,

Ashley Hodge

Freedom

There is something better than freedom. Don't get me wrong. I love freedom. I cherish it every day.

Freedom is not to be taken for granted. The fact that I can write this blog; invest my time today in the activities I choose; worship Christ freely; and pursue a career that I desire are all results of God's grace and the blood and sacrifices of those who came before me.

I was discussing the topic of freedom with my five year old boy yesterday. He asked me the question, "Did Jesus die on the cross for the devil, too?" Five-year olds ask the most complicated questions... I explained to him in the simplest way that I knew how that God granted all humans and angels free will.

Some angels chose to serve God. Some angels wanted to be like God and would not submit to His authority. The fates of these spirits have now been forever sealed. The angels are with God ministering to the needs of His people and are going to be with Him in the Kingdom of Heaven forever. The fallen angels (Satan and demons) are in constant warfare with the purposes of God and are doomed to darkness.

Freedom has a season and then our fates are sealed. Our time on earth is a time of freedom. Some people enjoy more freedoms than others. But all people have the freedom to respond to the revelation of God through creation and Christ. This life is a time of choosing. After death, our fates are sealed like the angels/demons.

Augustine called this the fourfold state of the will:

1. Pre-Fall Man (Adam/Eve in the Garden of Eden)

They were granted the power to sin and the power not to sin.

2. Post-Fall Man (All of humankind in a depraved state in need of a Redeemer)

Since the fall, we have the power to sin and we are unable to avoid sin.

3. Reborn Man (those who trust in Christ and are given the unlimited power of the Holy Spirit)

The reborn man is restored to the state of Adam and Eve. We have the power to sin and the power not to sin.

4. Glorified Man (After death, believers are sealed like the angels to a state of eternal obedience to Christ)

The glorified man is in a state of being able to sin and unable to sin.

To many people there is no worse idea in the world than to lose their freedom. Sadly, these people are often the ones who refuse to submit to God's authority. I was listening to a Francis Chan sermon this week. He recounted something J Vernon McGee said, "This is God's universe and He does whatever He wants. You can do whatever you want... when you get your own universe."

I thank God for freedom. But I especially thank God that one day I will no longer be free to sin and choose to rebel against Him. This is the most precious of gifts. Because His ways are always better than mine.

For His Glory,


Ashley Hodge

Refocusing on Stewardship Priorities

I feel like I have been wandering in the wildnerness lately- unfocused in terms of following the stewardship mandate that I acknowledge as truth. I read something by JC Ryle- my favorite author- this morning that struck a chord with me.

Ryle says, "Our hearts are like the earth on which we tread; let it alone, and it is sure to bear weeds." What a truth! Daily connection to Christ and the purposes that He has for us are essential for our growth. John Calvin said in the Institutes of the Christian Religion, "Man's nature is a perpetual factory of idols."

We fill our hearts and time with stuff. For me lately, it has been too many temporal pursuits and not enough focus on the eternal. But I am re-calibrating. Hopefully, some of these thoughts will be an encouragement for you to do the same or carry on in the path of biblical stewardship.

My four focus areas of stewardship are: money, abilities, time and health (MATH). Here are some thoughts on how to glorify God in the use of these resources.

1. Organizing your time and day

I have been guilty of living a reactionary life for the last year. This is not good for many reasons because growth is stunted. My new resolve is to block my time in this fashion each day:

5am- 8am: Spiritual growth (Bible study, prayer, reading); Fitness (cross fit training; basketball; weights)

8am- 1pm: focus on one task and doing it well. It might be reviewing client accounts; reading something important for my business; scheduling appointments; seeing two clients face-to-face.

The point is to have 4-5 hours where you are not constantly distracted by returning phone calls; checking email 15 times and aimlessly browsing the web or watching media.

1pm- 6pm: similar focus of one task.

This may include studying something in-depth; anything related to performing my calling more effectively would qualify in these time blocks.

6pm- 10pm (and weekends): family/relationships/projects

Invest time in my wife, kids and friends- constantly winning over their hearts. Improving our home or the organization of treasures (photos/ journals/memories).

2. Healthy habits

I love the way I feel when I am living in a disciplined way. Eating a calorie-restricted diet of whole foods; breaking addictions to certain foods/sodas; having a gameplan for exercise that includes improvement in strength and endurance.

3. Managing/eliminating distractions

Meditate on the rewards for living a life of stewardship. Focus the mind on the promises of God for becoming a better manager of money, ability, time and health. Realize that Christians are promised not only Heaven when we die physically. But we are called to redeem this fallen world with the authority and purposes of God. There is no time for waste in any form.

Here are a few passages of Scripture to encourage us to keep our minds on the rewards of faithfulness to God:

Philippians 3:13-16, "...But one thing I do: forgetting what lies behind and straining forward to what lies ahead, I press on toward the goal for the prize of the upward call of God in Christ Jesus. Let those of us who are mature think this way, and if in anything you think otherwise, God will reveal that also to you. Only let us hold true to what we have attained."

2 Corinthians 4:16-18, "So we do not lose heart. Though our outer nature is wasting away, our inner nature is being renewed day by day. For this slight and momentary afflication is preparing for us an eternal weight of glory beyond all comparison, as we look not to the things that are seen but to the things that are unseen. For the things that are seen are transient, but the things that are unseen are eternal."

I Peter 5:6-11, "Humble yourselves, therefore, under the mighty hand of God so that at the proper time He may exalt you, casting all of your anxieties on Him, because He cares for you. Be sober-minded; be watchful. Your adversary the devil prowls around like a roaring lion, seeking someone to devour. Resist him, firm in your faith, knowing that the same kinds of suffering are being experienced by your brotherhood throughout the world. And after you have suffered a little while, the God of all grace, who has called you to His eternal glory in Christ, will Himself restore, confirm, strengthen, and establish you. To Him be the dominion forever and ever. Amen."

Living under the rule of One King,

Ashley Hodge

Favorite Websites/Blogs

Here are some blogs/websites that I frequent relating to the stewardship of money/investing.

1. Carpe Diem: Economist Mark Perry gravitates towards the optimistic side of things. I like that. Chris Davis of Davis Advisors said a few years ago, "You sound smarter when you are pessimistic but history has tended to reward optimists."

2. Infectious Greed: Paul Kedrosky links articles of interest that relate to investing/managing money.

3. Hussman Funds: John Hussman gives excellent weekly commentary on his view of investing. He has compiled an impressive track record of conservative growth in a difficult decade to be a growth investor.

4. Greg Mankiw: Harvard professor's economics blog.

Less frequent posts, but I enjoy reading their commentary:

5. GMO: Led by Jeremy Grantham. This firm has compiled a good track record predicting asset class returns for 7-10 year periods.

6. Crestmont Research: Ed Easterling's research on stock market cycles.

7. Stewardship Partners: Rusty Leonard's quarterly newsletter highlighting his view of world markets and biblical stewardship principles.

It is a tough time economically. The future is always a mixture of difficulty and opportunity. No one sees the future clearly except our Lord. But wise counsel always helps in understanding some of the risks and possibilities of what the future has in store.

For God's Glory,

Ashley Hodge

Creation Care

Like anyone interested in stewardship, I consider caring for creation to be a top priority. I despise littering. I don't like waste. There is something fundamentally wrong with walking along a beautiful stretch of beach in the morning and seeing cigarette butts, soda cans and beer bottles all over the place.

Or visiting a national park and finding plastic bags and trash everywhere I look. When I see these things, I long for Heaven and a day when things will be continually cared for. There will be no more littering. No more spoiling God's beautiful creation.

The environmentalists would have us believe that as the planet grows wealthier, we are in greater danger of seeing our planet implode. They would argue that economic progress is environmental destruction. What say you evidence?

Mark Perry- an economic professor at the University of Michigan- has a blog called Carpe Diem that I read regularly. Today, he came out with some great charts and EPA based evidence that would indicate our environment is getting healthier as the population grows and people prosper.

http://mjperry.blogspot.com/2009/04/earth-day-2009-air-qualitys-better-than.html#links

Here is a good editorial piece in the NY Times that argues: the richer we become on Earth, the greener our planet will be.

http://www.nytimes.com/2009/04/21/science/earth/21tier.html?_r=2&ref=science

Finally an editorial in Investment Business Daily that urges us to have a day to honor capitalism for being responsible for a better Earth.

http://www.ibdeditorials.com/IBDArticles.aspx?id=325207473659451

This evidence fits perfectly with what I understand the Bible to reveal about stewardship and progress. We are not called as believers to re-pristination as many environmentalists would desire. Re-pristination is a belief that the Garden of Eden is ideal. We should shun technology, consumption, material blessings and live a life of austere simplicity.

But the Bible teaches something different. Genesis 1:28, "God said to them, 'Be fruitful and multiply; fill the earth and subdue it; have dominion over the fish of the sea, birds of the air, and every living thing that moves on the earth.'"

We are to improve on God's good Creation by using technology and resources in a way that improves life for all of God's creatures. The Bible starts with mankind in a Garden in Genesis and ends with mankind in a City in Revelation- Heaven or the New Jerusalem.

There has to be incentives and regulation that encourage good stewardship of the environment. But don't discount technological improvements as the basis for why this planet is not teetering on the edge of environmental disaster.

Looking Forward to a Perfect Planet One Day,

Ashley Hodge

Reflections on 40

I'm a reflective guy. Tomorrow I turn 40. The number 40 has a great deal of biblical significance. The number symbolizes a long period of time. There are many examples in Scripture: 40 days Noah was in the Ark; 40 years Israel wandered in the wilderness; Jesus was tempted in the wildnerness by Satan for 40 days, etc...

My prayer is that I have at least 40 more years left. I hope that the next 40 years are my best years for service to God and usefulness to my fellow journeyers.

Today I am reflecting on the lessons that I have learned in my previous 40 years. And how these lessons can help the years ahead be more fruitful.

1. The sweeter the sin, the bitter the taste in my mouth.

It's a line from a U2 song. It is true. Unfortunately, I have tried most of the sins that there are to try. The ones I haven't tried, I have thought about. The result is momentary pleasure and lifelong regret. Proverbs 14:12, "There is a way that seems right to a man, but its end is the way of death."

I have discovered that you can establish a good reputation and have a wicked heart. A line from a study in Romans has stuck with me the past month: Reputation is what people think about you. Character is what God knows about you. I need to always elevate the pursuit of godly character. Reputation will take care of itself.

2. Pursuing God has to be active.

God seeks us. The Bible makes this clear in many places. But feelings have to be trained. Those who wake up early to exercise know that many days the body tells us that we are crazy. If the body could speak, it would say, "Sleep in, this is insane. Why do you torture me this early?" But our minds know that many benefits come from exercise: endorphin rush, better health, less aches and pains in the long run, longevity, etc...

Wanting to spend time with God- at least for me- comes and goes in waves. There are many days I don't feel like praying. Many days I don't feel like opening up the Bible to receive daily nourishment. Many times where I struggle through a spiritually rich book. But my mind knows that James 4:8 is true, "Draw near to God, and He will draw near to you." I have discovered that we need a battle plan for growing closer to God rooted in prayer and study.

3. Stewardship is the path

I know that I was created for a purpose: to glorify God. I know that my soul and body will be resurrected to a destination: Heaven or Hell. I know that I deserve Hell because I have a sinful heart. Sinning comes easy. I know that Heaven is an unmerited gift of God's redeeming grace available only through the cross of Christ.

Overwhelmed by God's mercy, I know that stewardship of all that God has entrusted to us is the right path. I fall of this path so quickly. I have an enemy who wants me off the path of faithful stewardship. Because it is where the power of authentic faith lies. When we manage money, ability, time and health with a purpose of building God's kingdom, our lives have influence and power.

I know these things to be true. I pray that the next 40+ years are spent in faithful application of these truths.

4. Every discipline affects every discipline

I think I first heard this on a self-help tape. I have found this to be true. When we are disciplined in our spiritual lives, we tend to be more disciplined with health. When we are disciplined in these areas, we tend to be more disciplined with our tongue. Those disciplines lead to further discipline with money.

The chapter in the Bible that most speaks to me is Hebrews 12. Hebrews 12:11, "For the moment all discipline seems painful rather than pleasant, but later it yields the peaceful fruit of righteousness for those who have been trained by it."

There are many other lessons, but these stick out today. Birthdays are a time for reflection and an opportunity for renewal. Thank God for new opportunities and new chances.

Forgetting what lies behind and straining forward to what lies ahead, I press on toward the goal for the prize of the upward call of God in Christ Jesus- Philippians 3:13-14.

Life begins anew at 40,

Ashley Hodge

Scattershots

I was watching Jay Leno last night. He had Whoopi Goldberg on as a guest. They were poking fun at the lack of intelligence on the streets. Leno has a feature called Jaywalking where he asks easy questions and often gets dumb answers.

Leno says to Goldberg, "My favorite of all-time was: How was Mount Rushmore formed? The answer I got was erosion." Goldberg and Leno laugh at the stupidity of that answer.

Oh the irony. Our universities and society in general are filled with people who would scoff at the idea that erosion caused Mount Rushmore. But ask them who created this world and you might get answers equal to the erosion answer. What's crazier?

1. To look at Mount Rushmore and say that erosion formed this work of art?
2. To look at this world and not acknowledge an Intelligent Designer?

There is a good article out about values in the stock market by Jeremy Grantham. Grantham is a legendary investment figure who oversees GMO Global Asset Management. In 1998, GMO made predictions for asset returns over the next 7-10 years that ended up being as accurate as any forecasts I have seen. For example, GMO predicted negative returns for US stocks at a time when very few people were that bearish.

They recently released predictions for the next 7 years that were more optimistic. In his view, we are not heading down a black hole. Business will go on and brighter economic times are ahead. Here's the article.

What I am telling clients in regards to money...

1. Don't retire
2. Live like a pessimist
3. Invest like an optimist

Doomsday predictions are plentiful. And more are coming. Here's one that a friend/client showed me in the last few days. Wilkerson wrote a book many years ago called The Cross and the Switchblade which detailed his experience sharing the gospel to gangmembers in New York City. You always have to respect a man who has poured his life into serving the inner city with the good news of Christ. But...

There is a history with him of making apocalyptic predictions since the early 1970s that have never materialized.

It has me thinking though. What is prudent preparation for disaster/social unrest? Here is my list:

• 30 day supply of water
• 30 day supply of dry foods
• Weapons/ammo
• Shortwave radio
• Batteries/flashlights
• First aid kit
• 30 day supply of medications
• Copies of important documents

I don't think it is nutty to have these basic provisions. The odds of a long-term breakdown of our social order is minimal. The odds of a short-term disruption due to natural disaster (Katrina scenario), war/attack on a city or riots is also low. But the risks do go up in tougher economic times.

If I have to take my family on a camping adventure, we are toast. But if we had to hole up in our home for 30 days without access to electricity, water, transportation and groceries/supplies, we could make it work with a little preparation.

The fact that I am even writing this is probably all the indication that you need to know that we are close to an economic bottom :)

For God's Glory,

Ashley Hodge