Innocent Pastime or Dangerous Obsession?

Gambling and sports have been in the news lately. NBA referee Tim Donaghy is under investigation for conspiring with mafia types to affect the point spread on basketball games that he officiated.

It is no secret that gambling is huge business. Casinos seem to be on every corner. Nearly half of the US population buys at least one lottery ticket each year.

I was amazed when I did some quick web searches to discover that the 50% figure is consistently spread across all income and education levels. In other words, poor and uneducated people play the lottery as often as rich, highly educated folk.

If you channel surf cable or satellite television, you are likely to land on 2-3 poker programs. Some churches have been scrutinized for using bingo, poker games or monte carlo nights to raise funds for various ministries and agencies.

How should a Christian feel about gambling? Is it a fun diversion? Or does it ruin lives and therefore should be not only avoided but opposed?

I used to think it was the former- a harmless diversion. Before I came to strong anti-gambling convictions, I was an occasional gambler. I played a few hands of blackjack at casinos. I bet on sports games. I played my share of poker with friends. I bought a couple of lottery tickets. I bet on horses at the racetrack. It never really did anything for me. But I chalked it up to entertainment.

One trip I made to Vegas in 2001 was the turning point for me. I stared at the floor of a casino and felt tremendous sadness and empathy for what I saw. I saw thousands of people acting like addicts feeding slot machines as fast as humanly possible. There was no joy in their eyes. Just monotonous repetition and noise. From that point on, I have considered gambling to be a disease and not a fun little diversion.

I continued to play NCAA basketball pools until last year. Even though I occasionally won a pool, I enjoyed the tournament a whole lot more last year when there was nothing at stake. My disdain for gambling has recently extended to trying to avoid investing in any companies that profit from gambling.

Everyone has their hot buttons. You can make similar arguments against alcohol that I make against gambling. Alcohol destroys many lives. But I enjoy drinking wine and an occasional beer. Alcohol has some redeeming value when enjoyed in moderation. But the same cannot really be argued about gambling. I believe there will be alcohol in the new heavens and new earth but I doubt there will be gambling.

Jesus tells his disciples after sharing wine with them at the Last Supper in Matthew 26:29 , "I tell you, I will not drink of this wine from now on until I share it with you in my Father's kingdom." Alcohol is a good gift when used moderately. It can be terribly destructive when abused.

But gambling has no good purpose. Christ never mentions anything about the joys to be experienced from putting the financial resources that God has entrusted to you at risk through games of chance.

Hypocrisy you say! This is a man who makes his living from taking chances with investment money every day. True. But the investment markets use socially constructive methods to spread risk. It is a potential win/win proposition. Gambling is parasitic. It is almost always lose/win (as is network marketing where only 3% of participants ever turn a profit).

Other than writing this blog, I don't go around bashing people who gamble. I don't think it is healthy for Christians to be known only for what they are against. But gambling is a major issue with confessing Christians that is largely ignored from the pulpit. We should be taught to avoid gambling for four major reasons:

1. Gambling appeals to luck and chance disregarding the sovereignty of God.
2. Gambling violates the stewardship of money, abilities, time and health.
3. Gambling undermines a biblical work ethic and promotes materialism and a love of money.
4. Gambling destroys many lives and is potentially addictive.

Many biblical verses can be used as support to build a position of avoiding gambling. One of my favorite is Proverbs 12:11, "He who works his land will have abundant food, but he who chases fantasies lacks judgment." Gambling is investing for people who are really bad at math.

What do you think? Am I too hard on gambling? Your thoughts are welcomed.

For His Glory,

Ashley Hodge

A perspective changing book

Have you ever wanted one resource that explained biblical Christianity? Have you been confused by some of the subjects debated about the Bible? Have you wondered what the Bible teaches about God's sovereignty; free will; the age of the earth; baptism; the authority of Scripture; the attributes of God; sin; salvation; Jesus Christ; church and what will happen in the future? If so, you should purchase and read Wayne Grudem's Systematic Theology. You can purchase it here: http://www.amazon.com/SYSTEMATIC-THEOLOGY-Introduction-Biblical-Doctrine/dp/0310286700

I just completed reading this book. Many beliefs that I held prior to reading the book have been challenged and changed. I have read bits and pieces of other systematic theology books- Berkhof; Charles Hodge and John Calvin. Grudem's book is more concise and readable. I highly recommend the book.

It is almost 1200 pages which will scare most people off, but if you commit to read 100 pages per month, you can finish the book in a year. I studied it with a friend and we met for breakfast or lunch once a month to discuss.

Grudem is a Calvinist. He believes solidly in the doctrines of grace. He believes that God's control over all of creation and history is the building block for proper understanding of the Bible. But he is difficult to put in a box.

Most Calvinists believe many spiritual gifts (prophecy, tongues, healing, etc...) ceased at the closing of the canon (the Protestant Bible). Grudem believes that these spiritual gifts are still active today- not to be practiced in a sensational way but still in operation for the encouragement and building up of the church. He persuaded me on that issue.

He also changed my mind about the proper way to view the millenium debate. There are three major views within the Christian church on the return of Christ: premillenialism; amillenialism and postmillenialism. It can get confusing. But here's a web page that lays out the basics:

http://en.wikipedia.org/wiki/Christian_Eschatology

I have always leaned towards amillenialism, but with major reservations due to covenantal promises to the nation of Israel. One book started to sway me towards historical premillenialism: JC Ryle's Are You Ready for the End of Time? Grudem's Systematic Theology put the nail in the coffin on my amillenial beliefs for the time being. Historical premillenialism seems to be the more scripturally accurate view given the clear promises of God to Israel.

Grudem's discussion of the nature of the church also changed many of my perspectives. It is a challenging book. I hope many people read it and think about what they are reading. I will be working on an outline that I will hopefully post on http://stewardshipmandate.com/ in the near future.

For His Glory,

Ashley Hodge

What is a safe withdrawal rate?

It has been a while since I posted anything. My life has been in some turmoil the last 30 days. We have moved into a new home. It has been complicated by a wife with a broken leg and two children under 4 years old. Getting anything done during this season of life seems to move in slow motion.

But things are settling down, so I am looking forward to blogging again. This post will be rather short.

I just lost a client because I had told her that a safe withdrawal rate in retirement is 4%. In other words, you can feel reasonably confident that you will be able to live on your savings the rest of your life if you limit your withdrawals to 4% of principal.

This is not what she wanted to hear. So she went out and found someone who would promise her a higher withdrawal rate. She found that person. She was told that she could withdraw 8% and have no worries about running out of money.

There are plenty of "planners" who will tell people 8%. I like Dave Ramsey and think no one does a better job of motivating people to get out of debt. But Dave also teaches that you can withdraw 8% from your retirement savings. It's crazy talk and here are two reasons it is crazy.

1. To take an 8% withdrawal you will need to invest with a heavy emphasis on growth investments. Growth investments have averaged 8-12% per year over long periods of time. But it is never a smooth 8-12%. There are periods where you will have to absorb significant losses in order to get the high average returns.

If you invested your money in 1969 and withdrew 8% a year. You would have run out of money in 1981 (right before the bull market raged from 1982-1999). There are many other periods we can point to.

2. High expectations presume on tomorrow. For all we know, 4% may be a poor assumption. We could see periods of bad economic times that will blow away all of our best laid plans. But 4% has some historical prudence behind it. 8% is presuming that you will be withdrawing money during very good economic times. You will need a solid bull market to support this rate of withdrawal.

There is a story Jesus told in the Sermon on the Mount about a wise man who built his house on a rock. A foolish man built his house on the sand. The storms came to both men. One of the houses was able to withstand the storm. One house was destroyed by the storm. Although Jesus was not making any comments on wise financial planning here (Matthew 7:24-27), the lesson endures.

It is wise to expect storms and be prepared. Err on the side of conservative assumptions. It will allow you to sleep better at night.

For God's Glory,

Ashley Hodge