A Case for Optimism

"For I myself am an optimist. It doesn't seem to be of much use to be anything else," Winston Churchill.

I have been reading several articles lately on how gloomy the mood is in America about the future. A recent Washington Post survey found that 75% of Americans are unhappy about the direction of our country.

Let's think about this gloominess for a minute. Imagine a person who was living in 1800 coming to America in a time machine. He/she finds:

• Economic prosperity unimaginable to someone living in 1800: air conditioning; heating; dishwashers; ovens; televisions; computers; cars; airplanes; the Internet, etc...
  
  
• Life expectancy of around 80 years versus 35 years.


• Less than 1% of infants dying in childbirth versus 30% of infants dying in childbirth.


• Freedom. No slavery. No religious witch hunts. The ability to practice a mulititude of faiths and beliefs without fear of death or imprisonment.


• The ability to travel safely from California to New York without fear of death by disease or lawlessness. For that matter, the ability to travel almost anywhere in the world without huge risk to life.

The list could be pages long. We have a huge case of ungratefulness and excessive complaining disease in this country. I am hopeful that the national mood will change. I believe that the future strength of our nation depends on it.

Christians should be living by example with a foundation of optimism and hope. I have three reasons why I believe an optimistic outlook is called for:

1. The future is extremely bright.

From a biblical perspective, we are called to be optimistic. God has revealed some things about our eternal home- Heaven. We can point to a multitude of verses on this issue, but perhaps none as powerful as Revelation 21:3-4:

"Now the dwelling of God is with men and He will live with them. They will be His people and God Himself will be with them and be their God. He will wipe every tear from their eyes. There will be no more death or mourning or crying or pain, for the old order of things has passed away."

The hope of a resurrected, perfected body in a resurrected, perfected earth is our hope. This hope is an anchor to the waves of trials that toss us around and attempt to make our minds and focus unstable.

I am optimistic about life because I am optimistic about God. Am I optimistic about human nature? No. But a quick view of history shows an amazing story of God working through time and human stewardship to bring about incredible progress. Every period of history had its share of potential problems that were going to derail the planet and doom civilization. And yet God has restrained evil and promoted good to give us a partial glimpse of eternity where evil will be non-existent and good will be natural.

For this reason, I am optimistic about the future. God will do some great redemptive works through humans. His common grace causes the sun to shine on the righteous and unrighteous. We often look at the future and all we see are problems. But the future always holds difficulties mixed with opportunity. It is our job to focus on the opportunities and how we can participate with God in redeeming creation.

2. I believe there will be significant reform in energy, education and health care and these reforms will usher in a new era of economic prosperity.

There is an old saying in economics: "there is no better cure for high prices than high prices." People always have a tendency to think that prices that have risen in the past are going to continue rising at a similar rate. But then innovation occurs. Scale happens. Prices fall. The personal computer and mobile phone are two examples.

We have some bright minds in America. The economic incentives are in place. I expect mind-boggling innovation in the areas of energy, education and health care. The potential for greater efficiency at lower prices in all three industries is huge. These three industries have the potential to revolutionize the US economy for the better.

Of course, all three industries could be screwed up worse than they already are through excessive government intervention and waste. But history is on my side here. The world is moving towards greater personal responsibility and freedom. It will be hard for a society to go against that trend and remain competitive long-term.

3. Optimism attracts opportunities

I am not talking about self-help silliness here. The book of Proverbs is full of this truth. "Without vision, people perish"- Prov 29:18. "As a man thinks in his heart, so he is"- Prov 23:7. A friend of mine- Gary Randle- says, "God takes care of the birds of the air. But they don't sit around on wires with their mouths open. They go looking for worms."

We should always maintain an optimistic view of God's ability to provide for our needs no matter how dark the situation looks. God often works His greatest miracles in our lives at our times of greatest despair and weakness.

I watched a movie a few weeks back called "The Mist". It was a Stephen King film. I don't recommend the movie. It is a depressing film. Basically, an army experiment goes bad and infests a town with human sized insects that kill anyone in their path. One group holds out for a long time in a grocery store and then makes a daring escape in a car to drive out of the mist. They run out of gas.

The situation looks so dismal and bleak that they agree to have the main character kill everyone in the car rather than being eaten by these insects. He has enough bullets to kill everyone but himself. After he kills his friends and young son, he walks out of the car to meet his grisly fate. But then the cruel irony sets in. He is rescued within minutes. If only, he hadn't given up. If he would have persevered to the end...

I think the lesson is good there. Never, ever, ever, ever give up. Persevere even when odds look dismal. God is with us. Romans 8:31, "If God is for us, who can be against us?" We should be overflowing with hope, faith and optimism.

As always I preach to myself first.

For His Glory,

Ashley Hodge

Lessons Learned

I have just passed my 15th year of being in the financial advisory business.

God has been gracious to teach me some things along the way.

I want to share some lessons learned that relate to personal finance. These are lessons that we should all revisit often.

Like all wisdom in life, we need to have these concepts pounded into our minds and hearts on a regular basis. Our natural inclinations are to do foolish things with the resources that God has entrusted to us.

Proverbs 14:12, "There is a way that seems right to a man, but its end is the way to death."

Here are five lessons that I have learned along the way that if followed will help you become a better steward of financial resources.

1. Wealth is most often accumulated through hard work, patience and discipline.

Proverbs 21:5, "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty." I have read that 50% of Americans believe that winning the lottery or suing somebody are the two top methods of obtaining wealth.

In 15 years of being a financial advisor, I have had a few clients who have experienced a financial windfall through a large inheritance or lawsuit. I have never had a lottery winner as a client. But I wouldn't expect the results to be any different. The vast majority of sudden wealth is depleted within 10 years. The amount doesn't matter.

The habits that are required to obtain wealth are the same habits that are required to maintain wealth. They include:

• Spend less than you make
• Work harder than the average person
• Save on a regular basis
• Be a patient investor- sticking to a plan despite current economic climates

One example of many is a client that I have had for 14 years. She was a school teacher who never made more than $35k per year. But she was frugal, a hard worker and a saver. And she has over $1 million invested with me. Less than 15% of that money came from inheritance. The rest is from personal savings and compound interest over the years.

2. Invest like an institution to enjoy better results over time.

There are three reasons why institutions generally perform better than individuals over time:

• Follow an investment policy (philosophy) with discipline
• Avoid emotional extremes
• Properly diversify to reduce large losses

A recently released study by Dalbar showed that institutions averaged 10% per year from 1997-2006 and individual investors averaged 6% per year during that same time frame. On an investment of $100,000 the difference is having $259,000 at the end of 10 years or having $179,000.

Most institutions follow a strategy that includes assets such as: stocks, bonds, real estate, absolute return, commodities and currency investments. They spread the risk and don't allocate a huge percentage to any one area. Each of these assets has its advantages/disadvantages. But a properly diversified portfolio can help an investor manage inflation and principal risk.

3. A simplified, organized life leads to less stress and greater effectiveness.

I was talking with one of my clients last week who had made the decisison to downscale housing by purchasing a house that was 1/2 the cost, 1/3 of the yard and less square feet. I asked her if she ever regretted that decision? Her answer, "It was the best decision I made. I have much less stress and things to worry about."

That has been my common experience in talking with clients over 15 years. Simplicity is the better path. Ecclessiastes 7:29, "God has made us simple, but we seek out our own complexities."

Speaking from personal experience, organization is key. I went through a random line-by-line audit of my tax return in 2006. I considered myself fairly organized before the audit, but there is nothing like a full line-by-line audit to expose the weaknesses in your organizational plan.

The audit turned out fine. But I spent probably 40-50 hours preparing and locating documents that were needed for the audit. Since that experience, I have started some new organizational processes. In addition to being ready for an another audit if it ever occurs, I have seen some fruit from these efforts.

For example, I update a mileage log daily. By measuring this regularly, I have noticed that my business mileage has decreased some. I start to question the wisdom of making trips that I wouldn't have questioned in the past. Some of this probably has to do with higher gas prices. But I am convinced the biggest factor is better organization.

The more important things you measure, the greater your success will be with those important things. I believe the key is to determine what is important to measure and focus on and to get rid of everything in your life that is unimportant.

Henry David Thoreau's quote has always stuck with me, "Most people live lives of quiet desperation, but I have chosen to live deliberately." Better organization leads to greater awareness. Greater awareness leads to better decisions. Better decisions leads to less stress and greater effectiveness.

4. Work until your mind and/or body quit working.

Very few people can afford to fully "retire" from paid work in their 50's or 60's. If you can't live on a 4% income stream from your accumulated assets, you probably can't afford to quit working.

I am convinced that biblical wisdom encourages leading a productive, others focused life until we die. Jesus said, "We must work the works of Him who sent Me while it is day; night is coming when no one can work"- John 9:4.

If you are in a strong financial position to make working for pay optional, you should still consider how to use your time and resources to positively affect others. If you are worried about not saving enough for "retirement", you should consider working for pay at something you enjoy and not trying to place high assumptions on your financial assets to perform above expectations.

I read this week that 27% of Americans believe that they can pull 10% per year from their retirement assets (Investment News, USA Today). You would have to be fully invested in growth assets and have a raging bull market for the next 30 years to make that doable which is likely pure fantasy.

My experience is that the people with the highest expectations are the most likely to pull out in panic when we have a bad stretch. So keep your expectations low and work as long as you can. Several studies on happiness have shown that one of the keys to happiness is low expectations.

5. Reduce or eliminate debt and build up cash reserves

When things are going well for you economically, there will be a temptation to buy things- a boat, vacation home, art, etc... But wise people make sure the basics are taken care of before purchasing luxuries. Two of those basics are:

Eliminating all debt. Romans 13:8, "Let no debt remain outstanding except the debt to love one another." You can make some financial arguments for certain debt- low interest mortgage; education; investment/business loans. But debt can lead to unexpected disasters as we have seen with the credit crisis on Wall Street this past year. You are better to strive towards a debt-free lifestyle.

Building up cash reserves. There are plenty of online banks competing for your cash with attractive FDIC-insured yields. You should strive to keep at least a year's worth of expenses in a cash account. Not only does this provide help in times of unexpected financial emergencies for your family. But it also puts you in a position to help others in need.

Obviously, you can take this to an extreme where you hoard money. Our trust should never be in our net worth. It should always be in the God who controls the future. But saving for disaster is a biblically wise goal. One example of many in the Bible is Joseph feeling led to store 20% of the grain for seven years of abundance in preparation for a great famine that was coming.

Hopefully, you have been reminded of some important ideas to concentrate on if you are reading this. I heard a sermon last week where the preacher said, "We never, never, never, never, never, never, never, ever outgrow our need to hear the gospel preached to us over and over." Our hearts are prone to wander. Likewise, we never outgrow our need to be reminded of financial wisdom.

It is probably my greatest motivation for keeping this blog. To remind myself of what I know in my heart to be true, but occasionally lose sight of.

For His Glory,

Ashley Hodge

Salvation- Process or Transaction?

I won't do this topic justice in a short blog. But this has been on my mind a lot. How are we saved from our sins? All Christians will affirm that we are saved by trusting in Christ.

Is this a process or a one-time faith transaction? I would say both. Before I am labeled a Protestant heretic let me explain what I mean.

The key to rightly understanding salvation is to understand the difference between justification and sanctification.

Here is my understanding- with the help from theologians- of the difference:

Justification is an act of God's free grace where He pardons all of our sins. He accepts us as righteous in His sight only because of the sinless perfect sacrifice of His Son- Jesus. This can only be received by faith. No amount of good works can make us justified in God's sight. It is the great exchange: our sinfulness for Christ's righteousness. Justification is the work of God the Son in saving us.

Sanctification is the work of God the Holy Spirit in perfecting us to the image of His Son. This will never happen fully on this earth. But sanctification is a process whereby we are being made holy. We are dying to sin and living to righteousness more and more as time goes by.

1. Justification works for us; sanctification works in us.
2. Justification removes the guilt of sin; sanctification removes the stain of sin.

3. Justification transfers to us the righteousness of Christ; sanctification works in us the righteousness of Christ.

4. Justification is a one-time transaction; sanctification is a process.

For me, I have always been troubled by the teaching that salvation is walking an aisle to receive Christ, saying a prayer or doing a deal. It did not square with the reality that many who repent of sin in an emotional state show no signs of a changed life afterwards.

Many verses seemed to contradict the idea that once you say a prayer who are forever eternally secure despite contrary evidence from the life you live.

I never was comfortable with a more Catholic understanding of salvation either. I knew good works were important, but how could we ever be good enough? The best of lives are still miserably sinful when compared to the standard of Christ.

For me, understanding a balanced view that salvation is a conversion event and process makes more sense. I never want to take anything away from the work of God. I believe this is 100% God's work and never rests on me.

The greek word for faith- pistis- gives a connotation of continuing faith. In other words, we are not saved only by a one time faith but a continuing faith in the promises of God. This makes sense of many biblical passages including Colossians 1:21-23:

21 And you, who once were alienated and hostile in mind, doing evil deeds, 22 he has now reconciled in his body of flesh by his death, in order to present you holy and blameless and above reproach before him, 23 if indeed you continue in the faith, stable and steadfast, not shifting from the hope of the gospel that you heard, which has been proclaimed in all creation under heaven, and of which I, Paul, became a minister.

How are we saved?

1. God the Father adopts us

2. God the Son justifies us

3. God the Holy Spirit sanctifies us

All the work of God by faith alone. But our faith must be continual in His promises.

For His Glory,

Ashley Hodge

We are Sinking in Debt, Right?

If you listen to the media, you would tend to believe that America is a nation on the brink of financial disaster. The average American family is deep in debt and there is no hope for this country so we are told.

Do a google search under "consumer debt" and you will find all types of alarmist scenarios. A question needs to be asked: Is that accurate?

I don't think so. I am going to lay out some reasons why.

I want to start by saying that getting debt free is an admirable goal. I encourage my clients to do so and am working to do so personally. Romans 13:8 instructs us to let no debt remain outstanding except the debt to love one another.

The Christian who is debt free can be in a position of less stress when poor economic times come. He/she is also in a strong position to help others who need financial help if all debts are paid. But of course it is nearly impossible to eliminate monthly obligations. If you live in a home or apartment, you will have to pay for utilities. If you drive a car, you must pay for gas and insurance. The list goes on.

Aside from the biblical call to be a pilgrim on this earth and not entangle yourself with lots of financial obligations, is this country in a terrible financial situation? I say don't believe the mainstream thought on this issue.

Here are the facts:

1. The US debt as a percentage of GDP (Gross Domestic Product) is 37%. This ranks us 65th out of 126 nations included in the CIA World Factbook. Japan by comparison has debt that is 194% of their GDP. They have problems. We are not a nation drowning in debt.

Chuck Bentley- CEO- of Crown Financial Ministries sent out a newsletter highlighting this fact. Chuck also presented a chart that compares our current debt level to 1946 when we were at 122% of GDP. Chuck's conclusion, "Our ultimate preparedness is to avoid fear or panic, reduce our vulnerability created by debt and remain dependent on Christ who is the never-changing constant in an ever-changing economy."

2. The Net Worth of Americans is increasing, not decreasing. Sure, it will decline some during recessions as it did from 2000-2002. But we remain in a strong financial position as a country. It would take a whole lot of bad scenarios for many years to reverse that. Debt matters. But debt/asset ratios are more important.

3. Debt can often be an effective utilization of money especially in a low interest rate environment. Consumer debt on depreciating assets or no assets is foolish (credit cards, auto loans, etc...). Debt to expand businesses or increase future income may be wise stewardship. Obviously, it should be entered into prayerfully. But it is wrong to say all debt is evil.

For example, one of the most proven ways to help impoverished countries raise their standards of living is to provide access to loans for businessmen/women. These are often called micro loans. The lack of capital in these countries often dooms them to poverty. When access to banking services is provided, the countries tend to be on a road to greater prosperity provided that there aren't corrupt governmental influences to impede business.

Ken Fisher wrote an article a year ago making the case that our nation is not in enough debt. I don't agree with that conclusion. But his point that stock markets perform best when budget deficits have been highest is certainly interesting.

The point is, our nation is not on the brink of financial disaster. You may sound smarter when you are pessimistic. But you have certainly been rewarded for being in the optimist camp over time as the US economy has continued to disappoint its critics and climb upward over many walls of worry.

For His Glory,

Ashley Hodge

Quick Hits

Lots of topics on my mind. I am finding it more difficult to take the time to blog as much as I have in the past. But here are some topics that have been swirling around in my head:

Prudent Bear Fund Mailer

The Prudent Bear fund is a mutual fund that invests with the conviction that stocks are overpriced and going to fall in value. It uses shorting strategies to take advantage of falling stock markets. This fund did very well from 2000-2002 when the markets performed poorly. But from 2003- 2006 lost a lot of money.

I remember receiving a mailer in late 2002 promoting the fund and thinking, "This is probably the beginning of a bull market." In hindsight, this was correct. Well, I received another mailer from the Prudent Bear fund in February of this year. Is this a market bottom?

You can do pretty well as an investor if you avoid buying funds that are being advertised heavily at the moment.

Student Debt

This was a disturbing set of statistics that was posted on a Baylor University sports board that I frequent. The average student indebtedness at graduation of some large Texas universities:

Baylor: $33k

TCU: $24k

A&M: $19k

SMU: $17k

Rice: $16k

UT: $14k

Since only 1/2 of the students that graduate have debt, you can pretty much double these figures to get a better picture of what some students are facing after graduation. I was stressed because I had $8k in debt after graduating from Baylor. But I was able to wipe that out my first year of work after college. $60k would be a much tougher task.

Eliot Spitzer

Spitzer- the governor of NY- and one of the most unpopular men on Wall Street was caught paying for sexual services in a prostitution ring. I have not been a fan of Spitzer for two reasons:

1. He always seemed like a publicity hound. He did things to further his political career and did so behind the guise of rooting out corruption.

2. His "desires" to help the small investor have actually hurt the small investor. Wall Street firms have been forced to turn away clients with less money because it is unprofitable business. More rules and regulations has a tendency to make things more confusing. And this is not a good thing for anyone except attorneys.

I have great compassion for what Spitzer and his family are going through. Spitzer has three daughters 13-18. To see your dad's picture all over the news in a negative light has got to be extremely hurtful to them for years to come. It is a great reminder to me that we should live our lives with such a healthy fear of God that our actions would not bring shame to God or our families.

I am thankful that many sinful things I have done in the past were never "news". God is graceful. This grace should lead us on a path of increasing holiness and decreasing sinfulness.

Oprah's the New Age Cult Leader

No one does more to promote the new age worldview than Oprah Winfrey. Oprah is one of the most influential figures in our society. When she recommends a book, it sells millions. Most of the books she recommends follow the same New Age transcript: Jesus is good. Buddha is good. Muhammad is good. The Universe is good. Secularism is good. We just need to take what works for us and discard the rest.

What is so troubling for the Christian is the number of professing Christians that buy into this nonsense. We lack a good foundation of why we believe what we believe in Christianity. So when someone comes along peddling New Age nonsense, Christians become susceptible.

From Gary Zukav to the Secret to Oprah's latest fad- Eckhart Tolle (author of New Earth), the pick and choose your religious beliefs is a thriving business.

Baylor Basketball

It appears the Baylor men's basketball team is headed for their first NCAA tournament since 1988- my freshman year at Baylor. Scott Drew- the coach at Baylor- has done an amazing job. He took over a program coming off the worst scandal in college basketball- a player murdered (Dennehy) by another player (Dotson) and a coach (Bliss) who tried to cover up a lot of things.

If ever a program seemed like it had a bleak future it was Baylor men's basketball. But Drew- a positive, energetic guy worked recruiting hard and convinced some good players to come to Baylor. Five years later, Drew and his assistant coaches have built a very strong program.

It is what I love about Spring- the reminder of resurrection. What appears dead- trees, grass, Baylor basketball- comes to life again. Just like our bodies will be raised from the dead when Christ establishes His kingdom on earth as it is in Heaven.

For His Glory,

Ashley Hodge

5 Keys to Financial Happiness

I saw some feature clips from a 60 Minutes episode on the topic of happiness this past week. They interviewed a professor at Harvard named Tal Ben-Shahar who has studied happiness for years. What I found so compelling about the story was that so many biblical themes were present although they were never credited to the Bible or Christian beliefs.

Denmark was given the honor as the happiest country. Why? Humility, contentment, low expectations. I found that interesting and extremely consistent with what the Bible teaches.

Ben-Shahar gave 5 keys to happiness that included the following:

1. Simplify life
2. Exercise regularly
3. Embrace the gamut of emotional experience
4. Be grateful daily for what you have
5. Continual growth- the good you see appreciates as you practice appreciation

The topic inspired me to come up with my own happiness list from my 15 years of experience as a financial advisor to many families. These are my own personal observations as to what makes people truly happy in this life.

1. Simplify

I wholeheartedly agree with Ben-Shahar here. One of my favorite verses in Scripture is: "God has made us simple, yet we seek out our own complexities"- Ecclesiastes 7:29. Walden was wise when he urged, "Simplify, simplify, simplify."

I don't believe in radical simplicity that makes life more difficult- like the Amish for example. I respect their choices to do what they do. But give me computers, electricity, air conditioning, etc... any day. But I think we need to constantly evaluate what makes us truly happy and be in a continual process of uprooting the weeds that choke our devotion to God and our general happiness.

My wife- Amy- has been a huge help to me in learning to say "no" to good things. Too many "good things" in your life will lead to the inability to be great in anything. So we need to prioritize, simplify and get rid of unnecessary stuff.

Financially, this is huge. You ask yourself what brings me the most fulfillment in life? Are there things I own that I am not using that I can get rid of?

I remember talking with a college friend of mine Eric after he and his wife sold or gave away most of their possessions to spend 3 years as missionaries to Russia. Eric commented that there was something liberating about owning so little. He could feel the stress decreasing. Most of us have experienced this after giving away or selling some possession- it is a good feeling to have less to care for.

2. Reinvent Retirement

My observation is that people who are happiest in their "retirement" years have some or all of these traits in common:

• Ability to limit withdrawals of investment income to 4% of principal base.
• Working part-time as long as the mind and body allows productive work.
• Finding purpose in the 2nd half of life. Using time and abilities towards helping others- whether it is family or community.
• Lower stress because they keep expectations modest.

They make sure their houses are built on rock and not sand. So when the storms of life come, they have a firm foundation.

Retirement is undergoing a big makeover due to baby boom generation. I think most of the changes are healthy. Thirty years ago, people retired at age 65 and then died in their 70's on average. Today, people are living into their 90's routinely. More money is needed to sustain longer life spans. Rising costs to social security and medicare put these programs at risk in the future.

A person who retires at 60 and never works again is in danger of running out of money unless he/she has saved a lot of money. The road to less stress is to work as long as you are able to in a job that brings great fulfillment. Very few people can work in jobs for 50-60 years that they don't enjoy. But as Mark Twain said, "The secret to life is to make your vocation, your vacation." When you find that kind of satisfacation and joy, you can work until you die.

So you see lots of new ways of doing "retirement". Many people take 5 years off from the workforce and then launch a new career. Some incorporate new educational training after 50. The goal should be financial freedom and not traditional retirement. Traditional retirement is a very unbiblical notion. The Bible encourages us to do productive work until the day we die- John 9:4.

3. Yale Model of Investment Allocation

I am surprised that more investors don't implement this type of investment strategy. Traditionally, we are told about investing in stocks, bonds and cash. The Yale Model (or multi-asset class model) encourages a broader amount of diversification. The idea is that if you mix different types of asset classes into your investment portfolio, it is possible to achieve greater returns with less risk.

How is that possible? David Swensen- the portfolio overseer for Yale University's huge endowment fund- explains his methodology in several books. You can read a recent Smart Money article about this investment philosophy here.

The Yale Model proposes that you spread out your investment risk among many categories of investments: fixed income; domestic (US) stocks; foreign stocks; absolute return investments; private equity; real estate; commodities; cash.

Five years ago, the opportunity to invest in many of these areas was only available to millionaires. Now, there are a multitude of options available that are attractive to small investors. Diversification is important because no one really knows what the future holds- Ecclesiastes 11:2. It is wise to devise a plan that balances inflation risk and principal risk.

4. Capture the Sweet Spot of Insurance

I see many people that are terribly underinsured. If disaster strikes, they will be in trouble financially. I also see others who rely on insurance as if it takes the place of God. They spend a fortune on insurance to attempt to eliminate many risks.

Life is full of risks. You simply cannot insure every risk. But you can manage these risks by having the sweet spot of insurance. What do I mean by this?

Here is my brief philosophy about certain types of insurances- obviously these are all generalizations so you should speak to a competent professional about your personal needs:

• Health: I believe most people should consider a policy that covers expenses over $5000 per year. Anything under $5000 per year should be paid for out of pocket or through a health savings account.
• Life: the most critical need for life insurance is for the 20 years when families are raising children. Term insurance is a cheap way to protect the family from financial catastrophe if a spouse were to die during this time.
• Disability and long-term care: the sweet spot of disability/long term care insurance is a policy that covers a percentage of your income/expenses for 5 years. The odds that you would need help past 5 years are low. If you are disabled during your working years, you would have access to social security payments.
• Home/Auto: As I feel about health insurance, I believe that you should insure some worse case scenarios: a wreck that totals your car; fire destroys your home; flood; etc... High deductibles will likely save you money over the years because these disasters usually don't happen to you over the course of a life with great frequency.

5. Have an ongoing organization plan

The Lord told Hezekiah to set his house in order for he was going to die- 2 Kings 20:1. We will all die. If we are unorganized, we are leaving a burden to our family to settle things. I urge all my clients to keep a list of important phone numbers on one sheet of paper so that a family can handle affairs quickly if there is a sudden death.

I recently went through a full line-by-line random IRS audit on my 2006 tax return. I keep pretty good records. But I promise you that this audit process was painful enough to encourage me to keep better records going forward. I have now systemized everything that has anything to do with my expenses and taxes. The audit was a blessing in that regard. It has led me on a path of greater accuracy and organization.

Life is so busy. Organization takes time. But the rewards are worth the effort. I have read that lack of organization leads to an average of 30 minutes per day searching for items that should be easy to find.

Greater organization leads to a happiness circle. Because the more you simplify, the more organized you will become. The more organized you become, the more you will resist adding more crap to your life.

I firmly believe that happiness is attainable. There are some fundamentals that we need to practice daily whether it is dealing with our finances or our lives in general. The answers can be found in God's Word. If you practice these principles, you will have greater peace and live a happier life.

For God's Glory,

Ashley Hodge

Recession? What Recession?

I am no trained economist. But I enjoy reading economic reports and attempting to make sense of the dismal science that is economics. It is a difficult profession because there are so many moving parts. Just when you think you have something figured out, along comes some information to re-adjust your view.

If you read the news and listen to the media, you would believe that the economy is heading off a cliff. Massive unemployment; foreclosures; bankruptcies and layoffs are just around the corner we are being told. But the eye test is telling me something different. In the last 30 days, I hosted three client dinners at fine dining restaurants- two in the Dallas/Fort Worth area and one in Atlanta.

I was surprised by what I witnessed. Three restaurants on weeknights absolutely packed. My clients' businesses seem to be moving along well and some of those are construction related. Maybe it is different in Atlanta and Dallas than in other parts of the country. But it definitely doesn't feel like a recession to me.

This brings me to the point of this blog. Economists tend to have loads of book smarts. But sometimes that becomes a hindrance to seeing the good things that are taking place daily. I believe that the more degreed a person becomes, the more pessimistic they become. I have no scientific studies to back this up. It is just an observation.

A lot of the opinions about the economy coming out of the top academic institutions have been pessimistic for the last 20 years. And more often than not, they have been wrong. I was attending an investment conference in the Spring of 2007 and one of the money managers made this comment, "You sound a lot smarter when your pessimistic. But history usually rewards those who lean on the side of optimism." I believe this quote has a lot of wisdom behind it.

You protect yourself from being a wild-eyed fool by being overly cautious. When you predict the sky is falling, one day you will be right (at least to a small degree). But history tells a different story. Progress, innovation, rising standards of living, wealth creation carry on despite the walls of worry that they have to overcome.

Optimism is not a foolish philosophy. Especially, if your hope is planted in the promises of God. He created this world good- Genesis 1:31. The Fall (sin) has seriously marred His perfect creation- Genesis 3. God has promised to redeem mankind and this world from the effects of sin by initiating a new Kingdom through His Son- Christ- Isaiah 65; Revelation 20.

The story of God is that He has given mankind a stewardship responsibility to not only care for the earth but to improve it- Genesis 1:28. This should give us great hope that tomorrow will be better than today. Recessions tend to be mostly mental. They snowball into significant economic downturns if people start living out of fear versus continuing to go about their daily responsibilities. If everyone takes the responsibility of stewardship seriously, we will work hard each day to make this world more like our eternal home.

For God's Glory,

Ashley Hodge

Avoiding Two Extremes

I took a seminary class last year called Apologetics. One of the assigned books to read was a book called Constructing a Life Philosophy: Opposing Viewpoints. It is an interesting read because it contains short essays from a variety of life philosophies- Atheism, Islam, Judaism, Buddhism, Hinduism, Secular Humanism, Liberal Christianity, Conservative Christianity, etc...

One of the essays that I found most interesting was called Challenging the Idea of a Life Plan by Charles Larmore. Larmore argues that the good life cannot be achieved by following a life plan. He points out that the human experience reveals that happiness is often the result of unanticipated events.

This went against the grain of everything I thought to be true. I am a financial planner by trade and I like to fool myself into believing that I can take the uncertainty out of life by managing risk or behavior appropriately. I am a huge goal-setter and often get annoyed by events that sidetrack me from achieving goals.

But the reality is that as I reflect upon my life, I have to admit that Larmore is correct. Planning is good. There is great satisfaction in dreaming big dreams and watching those dreams come true in some form. I believe that what you measure tends to improve over time.

But planning can become an idol. We can easily put our hopes in Monte Carlo simulations (a tool financial planners use to predict investment outcomes based on historical scenarios) or some crazy notion that we have control over what happens to us.

Proverbs 16:9 instructs, "The heart of a man plans his way, but the Lord establishes his steps." There are two extremes to be avoided in this area:

1. We should not be passive about life. A fatalistic view that life just happens is irresponsible. God has entrusted us with talent, financial resources, time and health. Hiding these resources in a hole of fatalistic apathy will likely meet with the same result as the slothful servant who hid his talent in the ground- Matthew 25:25-30.

2. We should not be planning zealots. We can easily get puffed up with false pride when things go our way. We can have fake pity on the poor saps who just keep having waves of adversity- probably because they don't set goals. God's path for each of us is mysterious. There will be unexpected trials and blessings along the way that seem to come out of nowhere.

The whole book of Ecclesiastes covers this topic. One of my favorite verses in that book is Ecclesiastes 7:14, "In the day of prosperity be joyful, and in the day of adversity consider: God has made the one as well as the other, so that man may not find anything that will be after him."

My word to myself: Set lots of goals; strive for holiness; seek discipline. But be joyful always; give thanks in all circumstances. Embrace structure in some form. But have a good glass of wine along the way. Life will always be a balance between what we plan and the unexpected good and bad that comes our way. The unexpected is often our greatest source of happiness, change and growth.

For His Glory,

Ashley Hodge

2008 Stewardship Goals

I am looking forward to this year. What a great time to be alive. We enjoy so many of God's blessings that past generations could only dream about. We have an awesome responsibility before us as we prayerfully consider how to allocate God's resources.

I have set some goals for stewardship in 2008 that I want to share with the hopes that it will help one person make some decisions in regards to stewardship that will have long lasting effects on their life.

As I get older- 38- I am more cognizant of my sinfulness each day. Even though I have some small victories to be thankful for in stewardship, I have many struggles where I have lost ground. The Christ-honoring life is an ideal that I fall short of in many ways.

But I know from the truth of God's word that perseverance in striving for the goal- Philippians 3:12-16- is the noblest of pursuits. Every year a new theme strikes me as I read God's Word. In 2007, the theme was perseverance. Verses about perseverance seem to jump out of every book in the Bible. The first 3 chapters of Revelation are filled with references about overcoming; conquering; the one who endures.

The persecutions and temptations are different than what the early church experienced. But the command still lives: "Therefore since we are surrounded by such a great cloud of witnesses, let us lay aside every weight and the sin which clings to us so closely and let us run with endurance the race that has been set before us."- Hebrews 12:1

Faith is a learning process. We must learn to trust His promises. And we must learn not to rely on our own understanding of the events that bring into question the meaning of it all.

Here is a review of my 2007 stewardship goals- with comments on how I did in relation to them in red. And then 2008 goals.

Goals for 2007

Money

1. Live on less than $8000/monthly for housing, auto and living expenses- fell short of this goal. Lifestyle on those items was closer to $9k/month.
2. Give over $25,000 for Christian work; Save over $25,000- was able to achieve both of these goals.

Abilities

1. Pray for clients daily. Pray for every client at least once per month- fairly consistently prayed for 5 clients per day which allowed me to pray for my client base each month.
2. Upgrade stewardship resources; offer free version of book through pdf file and create audio version that will be available at no cost. Read 12 investment/financial books- recently revised http://stewardshipmandate.com/ which will allow me to update information more easily. Did not revise book or create audio version as planned. I read only 4 investment/financial books in 2007.

Time

1. No technology from 6pm- 5am. Use this time for family; devotions; relationship building; reading; projects and sleep- did a miserable job at this goal; watched too much television in the evening.
2. Average 3 hours per day of spiritual growth; 40 hours per week of focused work; two hours per day playing with, instructing and loving on our kids- averaged 2 hours per day of spiritual growth activities- prayer, Bible study, reading, meditation; 35 hours per week of focused work; didn't keep track of time spent with my kids playing, reading, instructing. I doubt it was a focused 2 hours per day though.

Health

1. Average less than 300 calories per day of cola and processed foods. Discipline in eating foods that are healthy- did a terrible job at this goal. I gained 8 lbs in 2007 and I doubt it was muscle. Cola intake increased which is disappointing.
2. Exercise at least 4 hours per week; sleep at least 6 hours per day- I was able to accomplish both of these goals.

2008 Goals

Money

1. Spend less than $10,000/month on housing, auto and living expenses.
2. Give over $40,000 to Christian work. Save $40,000 towards financial freedom goal.

Abilities

1. Pray for 5 to 6 clients per day; use this as an opportunity to review these 5 to 6 clients needs, portfolio and goals so that every client is being reviewed prayed for monthly.
2. Revise Stewardship Mandate book online; write 2 blog entries per month- one general entry and one entry that is a work-in-process update of Stewardship Mandate. My goal here is to have this be a more collaborative effort of anyone that has valuable input into how to become a more effective steward so it is not just my ideas.

Time

1. No technology from 6pm-4am three nights per week. Use this time for relationships- family, neighbors, connecting with friends, etc...
2. Average 2 hours per day of spiritual growth activities- Bible study, prayer, fellowship with other believers; 40 hours per week of focused financial planning work; 2 hours per day of focused time with kids- playing, instructing.

Health

1. Fast on Mondays by having no soda, saturated fat or processed foods on this day. Cut soda intake to less than 18oz per day.
2. Play basketball 3 times per week; lift weights 2 times per week; sleep on average over 6 hours per night.

I pray that you will think through and commit to some stewardship goals in 2008. I pray that 2008 is a year of prosperity, joy and spiritual growth for everyone.

For God's Glory,

Ashley Hodge

Getting Rich off Taxpayers

I had taken a hiatus from blogging as I have worked with Will Nielsen- my web development friend to improve the site. Hopefully, I will have the new site up and running before 2008.

Also, I was chosen (as any Calvinist believes) for a full line-by-line 2006 tax audit by the IRS. That was a lot of fun. It consumed some of my time that I would be writing blogs and reading.

One subject that has received some media attention lately is the escalating salaries of college administrators. I have written about the disparity in CEO and worker pay before. This is a problem in corporate America.

The companies that seem to do well on many levels have some reasonable strategy for creating stakeholder value- being good stewards over the money and people that have been entrusted to them. Many of these stewardship-minded companies have a written policy that the CEO will not earn more than 40 times the salary of the average worker or something to that effect. The average CEO earns 364 times the salary of the average worker.

Although there is public outrage over the greedy actions of corporate executives, the wealth generated usually has some tie to profitability of that corporation. This is not the case in the halls of academia. There was an article written in World magazine recently about the escalation in pay for college presidents. The average compensation for a college president was over $400,000 in 2006-2007. That figure doesn't seem too outrageous.

But the salaries are escalating fast. Many public university presidents are receiving over $700,000 per year in salaries and bonuses. I will grant that this is not an easy job and that there is probably a great need to pay these men and women well. But doesn't it seem excessive to pay someone over $700,000 per year when the incomes are being supported by taxpayers/state funding?

The President of the United States only makes $400,000 per year. Senators and Congressmen/women bring home about $200,000 per year.

Over 81 presidents of private universities earned $500,000 or more in 2006. Where is the equal outrage for the excessive pay of college presidents that the media gives to CEOs and ministers?

For His Glory,

Ashley Hodge

Greater Scrutiny for Non-Profit Abuses

It may be troubled times ahead for many of the highest paid leaders of megachurches. Senator Chuck Grassley has sent letters to six highly visible televangelists requesting a detailed explanation of how funds are being accounted for. You can read the letters here.

I think this is a good thing. It may result in jail time for abusers of the public trust, the attorneys and financial advisors who helped facilitate the unethical and illegal behavior.

The problem of using non-profit organizations as personal ATM machines is so vast that I am sure many abusers will continue to get away with squandering resources that were intended for ministry or public good type charitable actions.

But if there is not greater transparency and a restoration of public trust, I fear an outcome will take place in the next 20 years that will not be positive for those who desire to give financially to the work of Christian ministries:

The tax code may be changed and religious institutions will no longer enjoy tax-free status. This would mean that contributions to churches and ministries will be no longer be tax-deductible. An increasingly secular nation will encourage lawmakers to take away the tax-free status of all religious organizations. There will be plenty of examples to point to where tax breaks are given and the money is used in a similar fashion to a country club.

Right now, believers have an unprecented opportunity to get resources in the hands of good stewards- and there are many out there who do things the right way. The amazing wealth generation of the United States economy over the last 100 years and the favorable tax code treatment of contributions to Christian-based work have given Christians an opportunity to influence people by showing Christ's love through financial generosity.

Hopefully, the inquisition by Senator Grassley will lead to sweeping reformation in the non-profit sector. Hopefully, there will be greater transparency and less waste. Hopefully, there will be enough evidence of more good than harm coming from the use of tax-free status. If that happens, perhaps the tax code will be left alone for a while. God is in control of all of that and will use whatever means He desires to accomplish His purposes. But the help from Uncle Sam certainly doesn't hurt.

For His Glory,

Ashley Hodge

Basketball highlights

There are lots of serious topics swirling around in my head. Lately, I have been working on an updated, improved version of http://stewardshipmandate.com/ which should go live in the next week.

I take a break from my serious side, to list my top 7 basketball videos from You Tube- I could not limit to 5. I love the game. Some of these are awe-inspiring; others funny. A tribute to some of my favorite players growing up:

1. Jim Carrey's portrayal of a weird pick-up basketball player in Cable Guy. I love the line, "Oh, I see we were playing prison rules, huh?"

Cable Guy

2. "Pistol" Pete Maravich- the original "Showtime"

Maravich

3. Len Bias- tragically died of a cocaine overdose within 48 hours of being the 2nd pick in the NBA draft. This tragedy was the beginning of the demise of the Boston Celtics- who have not been good sense this happened. Bias was my favorite player in high school. I wish I could have watched him for many more years.

Bias

4. Nerf Dunking Contest- this is genius. Funny stuff! Reminds me of my high school and college days.

Nerf Dunking

5. Michael Jordan- wow! What can you say? Is this guy human?

Jordan

6. Larry Bird- he wasn't called Larry Legend for nothing.

Bird

7. Baylor University Basketball highlights- okay apologies to Magic Johnson for choosing this over you. But I have some excitement over Baylor's basketball potential this year. They have 4 players that have played together for 3 years and I think this could be a breakthrough year for them.

Baylor

Disclaimer: some of these videos are best viewed without any sound. Not what I would pick for the music choices...

All things for God's glory (including recreation),

Ashley Hodge

The Need for Muscular Christianity

One of my heroes is JC Ryle. I want to emulate him in many ways. I have read several biographies about him and I am amazed at the kind of life and influence that he had. He was married 3 times and buried each of his wives. Two of his wives were very ill and bed ridden for many years in the prime of their lives. This placed a large burden on Ryle- not only to provide income, but also to take care of children- one of whom was disabled. But Ryle did not complain.

He endured many hardships- poverty (family went bankrupt); caring for family members that were ill; and attacks by critics. Despite his trials, he preached thousands of sermons; wrote over 20 books; and probably led thousands to Christ in his life. His most famous writing is Holiness. It is one of the classic books of the Christian faith. But you cannot go wrong reading anything that he wrote. In fact, if you want a terrific tool to study the gospels, you should buy his Exposition of the Gospels series. You can obtain it here at a bargain price:

One of JC Ryle's beliefs was that we needed a more muscular form of Christianity. He was a bishop in the Anglican church (modern day Episcopal). The term muscular Christianity was coined in the 19th century as a reaction to the effeminate leanings of the Anglican church in the 1800's. Men were dropping out of church life. The church became more and more irrelevant to men. There are similar problems and conversation in the church today.

Ryle believed that we needed a more strenous form of Christianity and that men needed to step up and be tough/tender leaders. Tough exterior with tender hearts. Ryle's belief was that we needed to train our bodies physically so that we could serve God with vitality; protect the weak; defend what is true and subdue the earth as stewards of God's resources.

The muscular Christianity movement spawned many good things- including the YMCA and a sport that I love- basketball. I have been meditating on the need in my own life to be tough and to instill that toughness into my son and daughter. We need tough men and women who will live and die by convictions and values but who also have the humility to be broken and shaped by a transforming God.

Here are four values that relate to the need for muscular Christianity that I wish to reinforce daily in my life and the life of my family:

1. Embrace discipline in all areas of life. But specifically discipline in the areas of spending; giving; saving; eating; exercise; sleeping; time management and reading. I can improve in every one of these areas. Being a muscular Christian means to me that I need to exercise daily the spiritual disciplines that will lead me into a more Christ-like life.

2. Do all things without complaining- Philippians 2:14. There is nothing more unattractive that a discontent heart. To be a muscular Christian means that I will look for joy in all circumstances- I Thessalonians 5:18- and will put to death my ungrateful, complaining nature.

3. Embrace and persevere through trials. Life is tough. It is tough to keep a good attitude many days. We have financial, health, relationship and marital problems to work through. It never goes as smoothly as we envision in our minds. I have found the secret to being happy is to have very low expectations of this life and very high expectations of the heaven that God has promised to those who love Him.

4. Fight daily. I like and admire fighters. My wife is this way. She has incredible health challenges to deal with, but she is a fighter. We have enemies to face- sin; death; illness; worldliness (consumerism- the god of this age); evil. These enemies will plow us over if we don't go on the offensive. We need to aggressively fight these things by being obedient to the will of God. Of course, death will conquer each of us physically. But if we fight with the power of God's Spirit, we will be able to say with Paul: "O death, where is your victory? O death, where is your sting?"- I Corinthians 15:55.

We need a more vigorous, muscular Christianity. We need some JC Ryle's in this age to lead us by example in applying the truths of God to life and leading our families into a kingdom which cannot be shaken.

For His Glory,

Ashley Hodge

Famous Last Words

"I will never, ever drive a mini-van." These were the words spoken by my wife- Amy- back in 1999 when we were dating.

It was such a rich quote that I decided to write it down and save it for the ages. Fast forward 8 years and sure enough we are purchasing a mini-van for our family of four- the Honda Odyssey.

It has been my secret mission ever since 1999 to have my wife's words come back to haunt her. Not really. But I am having plenty of fun with her about it.

Actually, what I want to write about today is what to do with used cars. If you are able to do so; you should consider gifting your used vehicle to charity. Not every family is in a position to do this. But I have some reasons to recommend this course:

1. When given to the right charitable organization, the vehicle can be a life-changing gift to a needy family. I chose to give our 2000 Infiniti I-30 to Cornerstone Assistance Network in North Richland Hills, TX. This organization is constantly in need of reliable cars because they serve single mothers, reformed drug addicts, prisoners, people with financial hardships, etc...

In my situation, I have a car worth around $5000 as a trade-in according to http://edmunds.com. If I traded that car into a car dealership, I might have received that amount. But it would have been a battle. New car dealerships make their large profits on underpaying for trade-ins and selling you lots of stuff you don't need in the F&I (Finance & Insurance) office. But what happens to your car after that?

It might be sold at auction. This is the best outcome you can hope for.

In reality, it is often put on a tote-the-note lot and sold to a person with bad or unestablished credit. The car is likely marked up $2-$5k and the interest rate on these loans is 15% plus. In other words, your car contributes to a great problem. You are helping those who prey on the poor.

2. You do receive a tax benefit for giving the car away- if you itemize your deductions. You will receive either the fair market value of the car if it is used by the charity. Or you will receive a deduction equal to the what the car is sold for at auction if the charity sells the car. If the car is worth over $5,000, you will need to get a certified appraisal to back up your deduction claim.

The IRS puts out a publication that outlines the rules to follow in this area:

http://www.irs.gov/pub/irs-tege/pub4303.pdf

If you must sell your car due to financial necessity, there are some other options to consider besides trading it in to a car dealership where you will often not receive a good outcome.

Another option: you could sell the car yourself at a reasonable price. If you are dealing with someone who might buy their cars at a tote-the-note type car lot, you could even finance the deal. Charge 6% instead of 15%+. Sell the car for $500 over trade-in value instead of $3k over trade-in value. You are taking some financial risk here if you choose this option. The person who buys the car from you might not make the payments. But you are helping someone in need obtain a deal that they could not obtain otherwise.

This blog is not meant to make anyone feel guilty if they routinely trade their cars into dealerships. Nor is meant to indict all car salespeople as dishonest. I sold cars for a year right out of college. I know honest, hard-working salesmen. Unfortunately, those with high integrity get lumped into the poor reputation that the industry has due to the poor practices of some.

There are honest car salesmen who do not contribute to the predatory practices that take advantage of the poor and needy. If you find such a person, by all means sell them your car. My greater concern is for the practices that appear to be widespread in the industry dealing with used cars worth under $10k.

There are over 300 verses in the Bible that relate directly to God's concern for the poor. Proverbs 29:7, "The righteous is concerned for the rights of the poor; the wicked have no such concern."

For His Glory,

Ashley Hodge

Does God Miraculously Heal the Sick?

This is a question I have been wrestling with. My wife was diagnosed with Charcot-Marie-Tooth- a neuro-muscular disease that has slowly ravaged her body. Her muscles have atrophied. Her nerves have died. It sucks. There is really no good spin to put on it.

We are not without hope, however. I know that one day God will resurrect her body with a perfected, resurrected body that is like Christ. This is the hope of Christianity. Though we are now subject to death, disease and the curses of the Fall; one day we will not be subject to these enemies. Christ will return. The curses will be removed. And we will all experience life as it is fully intended.

But she is only 38. She likely has 50+ years to struggle through this disease. Will God heal her? I pray for it daily. I pray for the gift of healing. I have seen people cured from diseases that defy medical explanation.

It is a great burden to me. I have two friends who have babies that have bleak medical prognosis due to diseases that are likely to cut their lives short. I have many clients and friends suffering from chronic pain, cancer, heart defects, neurological disease, brain tumors. I cry out to God for their healing daily.

After studying the topic, I have come to the following conclusions. I am all ears if anyone has something to add to the discussion.

1. Jesus gives us a foretaste of the perfect health that will be ours for eternity by healing those who are diseased.

In the pages of Scripture, Jesus healed. We are told several places in Scripture that we are healed by the wounds of Jesus- Isaiah 53; I Peter 2; Matthew 8. Jesus explains a prophecy about Him in Isaiah 61 in Luke 4:17-19:

"The scroll of the prophet Isaiah was handed to him. Unrolling it, He found the place where it was written: 'The Spirit of the Lord is on Me, because He has anointed Me to preach good news to the poor. He has sent Me to proclaim freedom for the prisoners and recovery of sight for the blind, to release the oppressed, to proclaim the year of the Lord's favor."

Jesus proclaims His purpose is to set free, heal and comfort the afflicted.

Wayne Grudem in Systematic Theology gives four purposes for healing:

• Authenticates the gospel message by showing that the kingdom of God has come.
• Brings comfort and health to those who are ill, demonstrating God's mercy to those in distress.
• Healing equips people for service as physical impediments are removed.
• Healing provides opportunities for God to be glorified as people see physical evidence of His goodness, love, power and presence.

After reading Grudem's comments on the gift of healing, it is interesting to note the common methods used in healing during the period when the New Testament was written. These miracles are most frequently accompanied by the laying on of hands. If you do a study of miracles in the New Testament, you will see the laying on of hands prominent in nearly every miracle.

Another method was to anoint with oil- Mark 6:13; James 5:14-15. Anointing with oil seems to be symbolic for the Holy Spirit's power to come and heal the sick.

2. It is right to ask God for healing.

Jesus healed those who were sent to Him and did not say, "It is good for you to remain ill." Jesus came to deliver us from evil. Sickness, disease and death can be used for God-glorifying purposes. But they are evil at the root. Paul calls death our last enemy- I Corinthians 15:26.

Grudem says that we should seek all medical remedies to curing disease. But we should never rely on medicine alone. God also expects us to pray and seek healing from Him. God has ordained doctors, nurses and medicines to be used in the healing process. Grudem gives this advice for advising people in relation to praying for healing:

"We can tell people that God frequently heals today and that it is very possible that they will be healed. But that we are still living in an age when the kingdom of God is 'already' here but 'not yet' fully here. Therefore, Christians in this life will experience continued healing (and many other answers to prayer), but they will also experience continuing illness and eventual death. In each individual case it is God's sovereign wisdom that decides the outcome and our role is simply to ask Him and wait for Him to answer."

3. God will often not heal us in this life.

This is a hard truth for those who are sick to accept. We should eagerly pray for and expect healing. But we must also wait patiently for the true healing to take place- the redemption of our bodies. For we know that all things work together for good with those who are called according to His purposes- Romans 8.

That good may manifest itself in this life through material abundance, healing, easier relationships, etc... But that good may be put on hold. We may experience poverty, suffering, illness, hard and bitter relationships. Hebrews 11 teaches that some are rewarded for faith in this life and some live in caves and are sawed in two. All of these reasons are mysterious to us. But God has a plan and a path for each of us.

In every circumstance in life, we should give thanks and praise God that He knows what is best for developing our character and soul better than we do. Because eventually, we all will physically die. But we are not without hope. God will redeem those who love Christ. He will raise our lifeless, sick, diseased and dead bodies from the grave and will restore us to perfect health and vitality.

Do I believe the gift of physical healing exists today? Yes. Do I pray for that gift? Yes in this sense: that God's power would flow through my prayers and hands as I pray for people. I believe that God does grant this gift to people in different measures. Have I ever seen somebody instantly healed from blindness, terminal cancer, paralysis? No. I have heard stories that seem hard to discredit. But I have never witnessed it with my own eyes. Personal observation and experience tell me that God does not habitually heal people in this dramatic fashion.

These miracles seemed to occur more frequently in the pages of the New Testament. Isn't the same authority and power available to His followers today? I know the arguments that say no. The miracles were to establish the authority of the church and New Testament. But there are too many clear passages in Scripture that would seem to contradict the belief that miracles have ceased in this age and were only for a previous time.

I want to differentiate this gift from quacks like Benny Hinn or others who peddle this "gift of healing" in a flashy and unscriptural way. When did Jesus ever gather a crowd together, sell tickets and parade people up on stage and then ask for "love" offerings? Never. Jesus healed because He cared. But He also told many whom He healed not to tell others about it. He didn't want His life to be a circus and to deflect any attention from the power and glory of God.

For His Glory,

Ashley Hodge

The Ones Who Are Sent

One of the themes that has been dominating my thoughts lately is the idea that all Christians are called to be missionaries. A few may feel God's urging to go overseas to a foreign land and culture. But the vast majority of us are sent to be missionaries to our families, clients, co-workers, friends and neighbors.

The New Testament is filled with Jesus' commands that followers of Christ are sent to teach and live His message. "Therefore go and make disciples of all nations.., " Matthew 28:19.

"As you have sent me into the world, I have sent them into the world," John 17:18.

"The harvest is plentiful but the laborers are few. Ask the Lord of the harvest, therefore, to send out workers into His harvest field." Luke 10:2

In the past, it has been very easy for me to ignore these commands and to be busy doing spiritual things. Going to church and getting involved in good programs have led to passive participation on my part. As I look at my life, I am frustrated at what little effect I perceive that I have had on others. I know Christ as a result of faithful men and women who did not ignore the call of God to proclaim and reinforce His message to me. They sought me, just as God sought me.

I want to share with you some of my thoughts and practical ways that I am trying to be faithful to God's call on my life to be sent: proclaiming Christ in actions and words.

1. I feel a burden to be a missionary to my family. I am troubled reading the statistics. 90% of kids who are involved in youth ministries drop out of any church related activity by their sophomore year in college. Only 4% of 16-31 year olds have a Christian worldview based on answers to a survey of questions about beliefs.

The church in America is in trouble. 80% of the giving comes from those 55-years and older. I think Barna is right that the institutional church may lose half of its members by 2030 if these trends hold (I am praying that they don't and that we have another Great Awakening in this country).

Unless there is a dramatic change, it is likely that my kids will grow up in a culture that is thoroughly humanistic and where faith in God is looked at as weak or irrelevant. So first and foremost, I am a missionary to my family. I establish spiritual habits with my kids- prayer, reading the Bible, talking about God regularly, etc... where they see authenticity and consistency in daily life.

2. I feel a burden to be a missionary to my neighborhood. My family recently moved into a new home in Hurst. The neighborhood is new and this is a plus for building relationships. People seem a little more open to community. We had some good believing friends- the Chang's- that moved in across the street. We have talked about starting a home fellowship and potentially allowing it to become a church plant in our neighborhood. We had our first meeting last night. We have four couples- including my family and the Chang's- who have expressed interest.

For now, we are focusing on building relationships, prayer and preparation. I printed out a map of my neighborhood and started filling in names of families as I meet people. Hudson- my 3-year old- and I walk in the evening on weekdays and mornings on weekends. This has lead to many conversations. I pray for my neighbors. I don't believe God has placed me here by accident and I am excited to see what He will do in this neighborhood.

3. I feel a burden to be a missionary to my clients. I have a practice that is probably 60% believers and 40% unbelievers. I like that. I hope that my clients identify me as a Christian by the concern I have for them and the service I provide. I am surprised that I don't drive more of them away with my material on http://stewardshipmandate.com. I pray that doors are open to share the hope that is within me and that my clients make progress in their relationship with God.

I pray for 5-6 clients a day. Every month I pray through my client base. I know that my clients are not clients of mine by accident. God has a purpose in everything. I want to be available to how He might use me in building a relationship with my clients.

My heart is not where it should be on any of these things. But I thank God that it is further along than it was. Deeper faith in God daily. Life transformation. Service/usefulness to others. These are my goals. Jonathan Edwards once said, "My aim is to do the maximum amount of good to the maximum amount of people." I pray that this becomes my aim also. Lord, prune me so that I will bear much fruit for Your kingdom.

For His Glory,

Ashley Hodge

Bare Necessities

One of my 3-year old son's favorite movies is Jungle Book. In that movie, there is a song called The Bare Necessities. Being the strange person that I am, I tend to analyze and think about lyrics to almost every song I hear.

God seems to be reinforcing an old message to me in many ways: simplify, simplify, simplify. I just finished reading a book called Simple Church. This book makes the claim- backed up by research- that churches with simple processes and purposes grow. Most churches stagnate because they get caught up in doing good things. But those things distract the focus and the church becomes ineffective as a result. The same is true in business. As Clint Eastwood said in a Dirty Harry film, "A man has to know his limitations."

The last verse of The Bare Necessities reads:

And don't spend your time lookin' around
For something you want that can't be found
When you find out you can live without it
And go along not thinkin' about it
I'll tell you something true
The bare necessities of life will come to you

Look for the bare necessities
The simple bare necessities
Forget about your worries and your strife
I mean the bare necessities
Old Mother Nature's recipes
With just the bare necessities of life

We have a tendency to make life more complex than is necessary don't we? I was struck by a fact that was released over the weekend. The United States is arguably the wealthiest, most technologically advanced nation in the world. But our life expectancy is 42nd among nations. This means 41 nations have longer life expectancies for their citizens than the US. There are reasons for this: overindulgence and stress would be high on my suspect list.

I am beginning to re-evaluate everything in my life (again) with the goal of returning to a more strategic simplicity. Ecclesiastes 7:29, "God has made man simple; but man seeks out many complexities."

I am thinking about the implications for stewardship. I feel called to make whole-life stewardship my purpose in life. My vision is to help others make progress in becoming better stewards of money, abilities, time and health in order that God would be glorified through a transforming life.

My method for promoting this has been too complex. I have encouraged clients and friends to set goals for making progress in stewardship. Some have participated in this exercise. The focus or lack of focus I should say has been on setting a large amount of stewardship goals- somewhere between 10-25. What has happened in my own life is that this number is way too large to focus on and therefore accountability to these goals has been low.

My renewed simple concentration is to set four goals for making progress in daily stewardship of the Lord's resources. One goal for each letter in the MATH acronym (Money, Abilities, Time and Health). These goals will be my focus for six months. Hopefully, at the end of six months they will become such entrenched habits that I can move on to another set of four goals. But if they are not, I will continue with these original goals until they become part of my daily life.

Soren Kierkegaard said, "Define your life forward and live it backwards." We all need a transformation process to shoot for. The Lord is in the transformation business. Paul says, "He who began a good work in you will carry it on to completion until the day Christ returns"- Philippians 1:6.

The goals of every Christian should be:

1. Deeper understanding and relationship with God (Father, Son, Spirit).
2. A transformed life into the image of Christ.
3. A commitment to the mission of God to redeem others. We are to be ambassadors for His kingdom on earth as it is and will be in heaven.

We make it more complicated than it should be. Everything else is noise. Simplify, simplify, simplify.

For His Glory,

Ashley Hodge