Financial Freedom Isn't the End of the Story, It's Only the Beginning
We do not stop being stewards until we leave this earth to be with our Lord in heaven for eternity. To finish well, we each have a responsibility to thank God for His blessings by sharing them with our family, friends, and neighbors. We only receive God’s blessing of financial freedom by His unmerited grace. Our soul’s eternal salvation is all we are promised for our faith in God through Christ. Anything more than that is from God’s grace, blessing, and favor. This principle is summed up in Psalm 24:1-6 (NASB).
The earth is the LORD’S, and all it contains, The world, and those who live in it. For He has founded it upon the seas And established it upon the rivers. Who may ascend onto the hill of the LORD? And who may stand in His holy place? One who has clean hands and a pure heart, Who has not lifted up his soul to deceit And has not sworn deceitfully. They will receive a blessing from the LORD And righteousness from the God of his salvation. This is the generation of those who seek Him, Who seek Your face—even Jacob. Selah Psalm 24:1-6 (NASB)
How We Define The Blessing
There is great debate among Christians in the United States about “the blessing.” What exactly is included in “the blessing”? Some Christians believe the blessing is only eternal spiritual salvation and rewards in heaven, not including any temporal, material or financial blessing here on earth. Others believe God has a promised land of favor, relationships, health, possessions, and finances (prosperity) for faithful believers here on earth right now, as well as in heaven for eternity. They believe God’s temporal blessing and our status with God can be measured by how healthy and wealthy we are, and if we aren’t healthy and wealthy then we must have some kind of sin or lack of faith that prevents God from blessing us. These two extreme points of view of God’s blessing appear to be at odds, an either/or proposition.
It’s heartbreaking to see these two factions divide God’s Church and our nation. How can we justify either of these extreme positions to our brothers and sisters in Christ whose needs are not met and are suffering from famine and oppression in these United States right now? Why are they not healthy and wealthy right now, when they have done no wrong? Why do they have to wait for eternity to have enough food to eat, pure water to drink, clothes to wear, and shelter over their heads right now?
The issue is not whether we receive a blessing from God. The Bible clearly teaches that faithful believers and stewards will receive blessings. The issue is how we define “blessing” versus how Jesus Christ defined blessing. What is the blessing? And what does it have to do with our financial freedom?
How Jesus Christ Defined The Blessing
Thankfully, Jesus Christ made the answer simple, if we would only listen with discernment.
God’s blessing in eternity is salvation and relationship with Him through Jesus Christ and confirmed by the Holy Spirit (Revelation 3:20-22). God’s blessing here and now is anything we receive more than water, food, and clothes (Matthew 6:31-33). It could be tenfold, fivefold, or twofold. That is up to God. It is not up to us. We are to be responsible, grateful stewards no matter how blessed we are.
Therefore, if we are abundantly blessed by God according to His will, no matter how much or how little we have in this world, we can keep what we need to live and give to those who come alongside us and after us. We get the privilege of wisely choosing how to live, how to grow, and how to give. As faithful stewards, Christ told us to cultivate, invest, and multiply what He gives us in time, talent, and treasure. Ultimately, when we go to God to be with Him forever, we can’t take anything tangible with us, so we end up giving it all away to someone. The blessing of financial freedom carries with it a responsibility to leave a legacy to our children, our friends, our neighbors, and our communities. What does our lasting legacy entail?
Keep a Blessings Jar of Gratitude
Literally, get a jar and a stack of sticky notes, and every day count your blessings with at least one note in the jar. Blessings are not only financial, but they are also spiritual, physical, relational and emotional. Pull out the jar at Thanksgiving and share it with your family. Then start all over for another year.
Get Your Legacy Plans in Order
Make sure you have your legacy plans ready to go any time. This includes your legal will, powers of attorney (legal, financial, health, mental), healthcare directives, inheritance testament, and contact instructions (lawyer, doctor, financial advisor, etc.). Clearly explain your stewardship instructions to your estate executor and your children (if you are so blessed). This is not fun to think about. But it’s so much easier for you to think about and discuss with your spouse (if you are so blessed) now than for your spouse and children to have to decide what you would want them to do while enduring the trauma of losing you. Making it easier for your loved ones to recover after your death is a loving thing to do.
Decide if You Need a Trust
A trust is not only a tax shelter, contrary to popular belief. A trust does protect wealth from deceitful people as long as the trustees and executors are trustworthy. If you are financially blessed and want to ensure your children who are still minors will receive inheritance directly when you desire them to receive it, then you need a lawyer to help you create a trust with specific instructions and a faithful, trustworthy executor who will understand and follow your instructions. On the other hand, if you have prodigal children who will irresponsibly squander God’s blessings after you are gone, even if they are adults, then you can limit their access to the wealth through the trust. That could also restrict faithful children, so these financial restrictions are not an option to be taken lightly. Work through the possibilities with God and your spouse before something happens, and explain to your children exactly what you are doing and why you are doing it. They may or may not like it, but good stewardship and parenting means you talk about money now so they will not have to argue about it later. Set the rules, boundaries, and limits now so that everyone knows the level playing field.
Review Your Life Insurance
Life insurance is so important to provide for your spouse and family to live on the investment income from the insurance payout when you are gone. Get as much life insurance as you can because the initial payout is distributed to the beneficiaries tax free. For example, if you have a $1 million life insurance policy to your spouse, they can safely invest to earn 7% annually and supplement their living expenses with $70,000 each year without touching the principal (they will pay income tax on that $70,000 investment gain, which is why it’s an income supplement, but that income should cover most survival living expenses). Term, variable, whole, or other insurance products can be confusing. Start simple with term life early on and when you can afford more and better add that better insurance; you don’t have to cancel the term life. Insurance becomes part of inheritance after death.
Distribute Early Inheritance Gifts
You can distribute inheritance while you are still alive. The easiest way is to determine how to gift money to your children (and grandchildren, if you are so blessed) under the federal tax limit, which currently is $19,000 annually, per person to person. Think through how you can balance an annual gift with specific-need gifts. For example, you could give each child $10,000 a year and if one child needs help with an unexpected $1,500 car repair you could help with that and still stay under the federal tax limit.
Set up a Giving Account
Finally, determine how much you would like to continue to give to churches, missionaries, and non-profit organizations. You can do that through a Donor Advised Fund (DAF) so that the money invested in the fund grows through investing tax free, similar to a Roth Individual Retirement Account (IRA). If you are more than 70 years old, you can donate up to $100,000 to federally approved organizations directly from your IRA as a Qualified Charitable Distribution (QCD) that counts toward your Required Minimum Distribution (RMD).
More Legacy Planning Options
In a future blog post we’ll specifically discuss how to plan inheritance and giving options. Right now, keep your blessings jar full, get your legacy in order, decide whether you need a trust, make your stewardship directions clear, and review your life insurance. You can learn more about the spiritual basis for legacy planning and follow a step-by-step guide through the Set Your House in Order study by Compass Financial Ministry. If you have specific, unique issues and questions about leaving a legacy, a certified Christian financial counselor can help. Schedule a Discovery Call today to get started!
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