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In my experience, I’ve seen too many cases where an individual has invested the majority of retirement funds in one company or in one sector. Diversification (1 of 2) Back to Investing By: Tom Copland October 19, 2021 In my experience, I’ve seen too many cases where an individual has invested the majority of retirement funds in one company or in one sector. For “a season” these investments may do well, but inevitably every company and sector falls on bad times. This results in significant losses because the portfolio was not diversified in a manner that was consistent with God’s Word. Because no human can consistently predict the direction of any market (see James 4:13–15), it is important to diversify your assets into different categories of investments that will likely react differently to any given market condition. The Bible recommends this type of diversification. “Cast your bread upon the waters, for after many days you will find it again. Give portions to seven, yes to eight, for you do not know what disaster may come upon the land.” (Ecclesiastes 11:1, 2) At the time this was written, “Cast your bread upon the waters” was a metaphorical expression used in the grain trade that illustrated the potential successful prospects of a business investment (per Dr. Charles Ryrie’s study bible). In short, it is biblical to take some risk within one’s portfolio, however, verse 2 recommends diversifying your investments into 7 or 8 categories, because you do not know what disaster may come upon any particular company or sector. In 1999, I met with a client who had invested most of his money in 25 technology stocks. I recommended biblical diversification of his portfolio. He believed he was diversified because he owned 25 different stocks. I explained to him that generally, all stocks in any particular sector will react the same under the same market conditions. He made no changes and as a result, during the bear market (2000-2004), his portfolio decreased 70% in value! Biblical diversification is obtained by allocating one’s assets into different types of investments that will probably react differently to any particular market condition. Here are some examples: 1. During inflationary times (e.g. the 1970s), natural resource equities, commodities and real return bonds increase in value, while medium and long-term bonds do very poorly. 2. In a period of deflation (e.g. 1991-1995), medium and long-term bonds generally increase in value, while natural resource equities, commodities and real return bonds usually do poorly. Further, diversify your assets among several sectors of the economy and to appropriate countries, as generally, this will reduce the risk and volatility of your total portfolio. Many investors try to “time the market”—that is, they buy when they believe that the market is headed higher and sell when they believe the market is going lower. God says (and history shows) that no human can consistently predict the future value of any investment (Prov 27:1). Therefore, unless God specifically directs you otherwise [John 10:3, 4, 27], there is a need for biblical diversification in one’s portfolio because, under normal market conditions, if one category of investment decreases in value, generally another category will likely be increasing, thus reducing the volatility of your total portfolio. Over the long run, a well-thought-out biblically based portfolio should provide reasonable returns. In summary, it is biblical to take on a reasonable amount of risk within one’s investment portfolio. However, God recommends diversification. This will reduce the risk and volatility of your portfolio. See my next Financial Moment for suggested asset allocations. Previous Article Next Article More Topics Freedom from Financial Anxiety Read More Priorities Read More Counsel & Wisdom Read More

I listen to you almost every day on Faith FM. I have learned so much and you have been God sent to me. I was praying to God for help in understanding His law with regards to finance and God blessed me with the best teacher/mentor I could have asked for. Thank you Tom and God bless you. Back to Testimonials Faith FM Listener I listen to you almost every day on Faith FM. I have learned so much and you have been God sent to me. I was praying to God for help in understanding His law with regards to finance and God blessed me with the best teacher/mentor I could have asked for. Thank you Tom and God bless you. Ellyna Previous Next

I learn so much from your teachings. How you know the scriptures and how you apply them to our finances and to our daily living. Thank you so much. I appreciate all you knowledge that you share. Back to Testimonials Thank you so much. I appreciate all you knowledge that you share. I learn so much from your teachings. How you know the scriptures and how you apply them to our finances and to our daily living. Thank you so much. I appreciate all you knowledge that you share. Susan C Facebook follower Previous Next

Prayer and dependence upon God are required in order to develop a personalized and biblically-based investment strategy. It is well known that the past performance of investment provides no guarantee for its future performance. First, Pray and Depend on God for His Wisdom & Direction Back to Investing By: Tom Copland October 19, 2021 Prayer and dependence upon God are required in order to develop a personalized and biblically-based investment strategy. It is well known that the past performance of investment provides no guarantee for its future performance. The best investment today depends on future events, and since no one can consistently predict the direction of any market, it is critical to acknowledge our dependence upon God for his wisdom and his direction in respect of investing. Now listen, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.” Why you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, “If it is the Lord’s will, we will live and do this or that.” (James 4:13–15) Notwithstanding all the information available today, only about 15 percent of all professional money managers beat the relevant index (e.g., TSX 60 or S&P 500), and no one can consistently predict the future value of these indices. The same principle applies to real estate. For example, from 1985 until 1989, the value of Toronto real estate increased significantly. Many believed that it would never go down. However, from 1990 until 1995, the values dropped drastically anywhere from 25 percent to 70 percent. From a human perspective, this does not make sense, but God is not surprised. Proverbs 27:1 states, “Do not boast about tomorrow, for you do not know what a day may bring forth.” The good news is that our all-knowing God does know the future (Isaiah 46: 9,10), and he is willing to provide us with the wisdom that we need in investing if we ask in faith. James 1:5 states, “If any of you lacks wisdom, he should ask God, who gives generously to all without finding fault, and it will be given to him.” God has provided us with numerous investment principles/guidelines in his Word, the Bible. Biblical diversification (Ecclesiastes 11:1, 2) and minimal debt (Proverbs 22:7) are two examples. Please see my nine other Financial Moments regarding investing. In addition, I recommend Austin Pryor’s book Sound Mind Investing, available at soundmindinvesting.com. God will provide specific direction in respect of your investments. Psalms 32:8 states, “I will instruct you and teach you in the way you should go; I will counsel you and watch over you.” About three or four times per year, in dependence upon God, I spend significant time in prayer seeking God’s direction to review and adjust my investment strategy. By meditating on God’s Word and listening to God’s “gentle whisper” (1 Kings 19:11), I find God’s will in respect of the investments he has entrusted to me. This brings God’s peace and good investment returns. I encourage you to do the same and document what you believe God is telling you. But take note that if it is in any way contrary to God’s principles, then you have not heard from the Lord. Never forget that God is in control, and all riches come from him. Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything. Riches and honor come from you alone, and you are the Ruler of all mankind. (1 Chronicles 29:11, 12 TLB) In summary, it is critical to pray and depend on God for his wisdom and his direction in investing the money that God has entrusted to you. Previous Article Next Article More Topics Freedom from Financial Anxiety Read More Priorities Read More Counsel & Wisdom Read More

Thank you for your financial seminar I took for Singles last year. Your seminars are excellent biblical teaching that works and I am still using today. Thank you Tom and thank you God! Back to Testimonials God saved me $1000.00 by knowing the state of my flocks! Hallelujah! Knowing the state of your flocks will save you money. May God be praised! Thank you for your financial seminar I took for Singles last year. Your seminars are excellent biblical teaching that works and I am still using today. Thank you Tom and thank you God! P. H. Vancouver, Canada Previous Next

I am doing your 4 part financial online course. I am so blessed to be apart of this course. My financial situation is a burden to me and I am so encouraged by these sessions. I saw you on TV about a year ago and have blessed since.  Praying the Lord will continue to bless you abundantly as you help us with our financial situation so that we can have peace and joy as Children of God. Back to Testimonials My financial situation is a burden to me I am doing your 4 part financial online course. I am so blessed to be apart of this course. My financial situation is a burden to me and I am so encouraged by these sessions. I saw you on TV about a year ago and have blessed since. Praying the Lord will continue to bless you abundantly as you help us with our financial situation so that we can have peace and joy as Children of God. D.S. 18 Cloverlawn Street, Brampton Ontario, Canada Previous Next

In Ecclesiastes 11:1–6, God recommends the assumption of a reasonable amount of risk within your investment portfolio. Assess your Tolerance for Risk and Invest Accordingly Back to Investing By: Tom Copland October 19, 2021 In Ecclesiastes 11:1–6, God recommends the assumption of a reasonable amount of risk within your investment portfolio. “Cast your bread upon the waters, for after many days you will find it again” was a metaphorical expression used in the grain trade that illustrated the potential successful prospects of a business investment. God instructs the farmer, who is also an investor, to “sow your seed in the morning, and at evening let not your hands be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.” In addition, over-cautiousness is discouraged——“Whoever watches the wind will not plant; whoever looks at the clouds will not reap.” In Proverbs 31:10–31 the “wife of noble character” is involved in several equity-type investments. For example, in verse 16, “she considers the field and buys it; out of her earnings she plants a vineyard.” There are many other examples of investors in the Bible, such as the servants in the parable of the talents (Mathew 25) and Solomon and Job. In short, it is biblical to assume some investment risk. However, God demonstrates how to minimize your risk by diversifying your investments into seven or eight different categories, because you do not know what disaster may come upon any particular company or sector of the market (Ecclesiastes 11:2.) See my two financial moments on biblical diversification for further details. On “a macro basis,” the risk of any portfolio is generally reflected by its allocation between equities and safe investments such as Canada bonds/GICs, etc. The appropriate amount of investment risk that a Christian should assume will depend upon numerous factors, such as your age, when you will need the money, and your tolerance for risk. Assessing your tolerance for risk can be difficult. Generally, it is necessary to experience some good and bad markets before you will really understand your own personal risk tolerance. Certainly, if your present portfolio allocation is too volatile (i.e., the fluctuations cause you to be anxious) then reduce equities and increase short-term government of Canada bonds. In his book, Sound Mind Investing, Austin Pryor has an excellent questionnaire that can help you assess your tolerance for risk. (See soundmindinvesting.com.) Based on God’s investment principles, it is not appropriate for a Christian to be overly cautious (which may reflect a mindset of fear); nor is it appropriate for a Christian to be too aggressive (which often reflects an attitude of greed). Both extremes are outside of God’s will. Under normal market and economic conditions, generally, a conservative investor should have at least 20 percent in equities, while an investor with a high tolerance for risk, should not go beyond 80 percent. The average person may feel comfortable with an allocation of approximately 50% in equities. The types of equity investments within your portfolio (i.e., “blue-chip stocks” as opposed to “speculative stocks”) will also affect the level of risk you are assuming. In all cases, I strongly recommend that no debt be used for investments because God’s Word strongly discourages the use of debt (Proverbs 22:7). In summary, depending on God’s wisdom (James 1:5), assess your tolerance for risk and invest the money that God has entrusted to you [1 Corinthians 4: 2], according to his principles [Psalms 119:24] and his specific will [Psalms 25:12]. Previous Article Next Article More Topics Freedom from Financial Anxiety Read More Priorities Read More Counsel & Wisdom Read More

Howard Dayton, CEO of Crown Financial Ministries completed an in-depth study of the Bible and found that God’s Word contains 2,350 references to money and material things. In addition, 16 of the 24 parables that Jesus Christ gave us deal with money and material things. Back to Counsel & Wisdom From God's Word By: Tom Copland June 15, 2020 Howard Dayton, CEO of Crown Financial Ministries completed an in-depth study of the Bible and found that God’s Word contains 2,350 references to money and material things. In addition, 16 of the 24 parables that Jesus Christ gave us deal with money and material things. Clearly, God’s Word, the Bible, has a tremendous wisdom to assist you in making any financial decision. The psalmist makes the following comments regarding God’s Word: “Your statutes are my delight; they are my counsellors” (Psalm 119:24) and “Your word is a lamp to my feet and a light for my path” (Psalm 119:105). God’s Word was considered to be so important that God instructed Joshua, “Do not let this Book of the Law depart from your mouth; meditate on it day and night, so that you may be careful to do everything written in it. Then you will be prosperous and successful” (Joshua 1:8). In my experience, when people have got into financial difficulty, frequently it was because they have unknowingly violated one or more of God’s financial principles. Some examples include 1. no savings for an emergency (Proverbs 21:20) 2. taking on too much debt (Proverbs 22:7). 3. cosigning a loan, for which the Bible uses the term “striking hands in pledge” (Proverbs 17:18; 22:26, 27) 4. getting involved in a financial transaction they did not understand (Proverbs 19:2) and that was not biblically diversified (Ecclesiastes 11:1,2) Many times the financial stress could have been avoided by simply following the counsel and wisdom from God’s Word, the Bible. God promises great blessings to the believer who meditates on and follows his Word. Blessed is the man who does not walk in the counsel of the wicked or stand in the way of sinners or sit in the seat of mockers. But his delight is in the law of the LORD, and on his law, he meditates day and night. He is like a tree planted by streams of water, which yields its fruit in season and whose leaf does not wither. Whatever he does prosper. (Psalm 1:1–3 emphasis added) Blessed are they who keep his statutes and seek him with all their heart.” (Psalm 119:2) Solomon was the wisest man who ever lived. God gave him incredible wisdom and knowledge. At the end of his life, Solomon concluded, “Now all has been heard; here is the conclusion of the matter: Fear God and keep his commandments, for this is the whole duty of man” (Ecclesiastes 12:13). In the financial arena, the only way you can “keep God’s commandments” is to understand and implement God’s Word on finances. In summary, when faced with an important financial decision, it is absolutely necessary that you seek God’s counsel and wisdom by studying and implementing what his Word says on finances. If you would like to learn more about what God’s Word says on finances, I suggest that you visit the website of Crown Financial Ministries (Canadian site: crowncanada.ca, U.S. site: crown.org) and obtain some of the excellent materials available through this organization. In addition, if you are not already on my “Financial Moment” e-mail list, send an e-mail to thomas@copland-ca.com and I will send you, at no charge, a Financial Moment every two weeks. Previous Article Next Article More Topics Priorities Read More Stewardship Principle Read More Debt Principles Read More

I just wanted to tell you what a blessing you have been in my life. You have taught me to study scripture, always ensuring that my thoughts match scripture. As people, we are prone to seek an answer to match our opinion as opposed to finding out what scripture has to say first. Ever since taking Financial Management I have tried to make sure that I have scripture backing before I make an opinion on a matter. It has changed many relationships for the better. Thank you! Back to Testimonials You are a blessing I just wanted to tell you what a blessing you have been in my life. You have taught me to study scripture, always ensuring that my thoughts match scripture. As people, we are prone to seek an answer to match our opinion as opposed to finding out what scripture has to say first. Ever since taking Financial Management I have tried to make sure that I have scripture backing before I make an opinion on a matter. It has changed many relationships for the better. Thank you! L.S. ON, Canada Previous Next

As explained in my previous Financial Moment, God’s Word recommends the diversification of one’s portfolio into different types of investments that will likely react differently to any particular market condition. Diversification (2 of 2) Back to Investing By: Tom Copland October 19, 2021 As explained in my previous Financial Moment, God’s Word recommends the diversification of one’s portfolio into different types of investments that will likely react differently to any particular market condition. By the way, if you have absolutely no peace in investing in equities because of the related risks, then perhaps God is directing you to invest solely in very safe categories, such as the government of Canada bonds, GICs, etc. The return on “a very safe portfolio” will be very modest, and therefore you will likely have to save considerably more money to meet future needs, compared to an investor who assumes a reasonable amount of risk within biblical guidelines. There is no “perfect portfolio allocation” for all Christians. God’s Word provides general principles—not specific details. That’s why there is absolutely no substitute for spending quality time with the Lord in prayer, asking God for His wisdom (James 1:5) and His specific direction with respect to investing the money that God has entrusted to you. God has promised to direct us [Psalms 32:8, John 10:3, 4, 27]. Subject to God’s specific direction, and under normal market and economic conditions, the following asset allocation could be appropriate in order to achieve diversification. Cash, T-bills, MMFs, 10% GICs, bonds-short, medium, long–incl some real return bonds 40% Canadian equities (several sectors incl Cdn banks & resource stocks.) 20% U.S. equities (several sectors) 10% Real estate, REITs and related equities 5% International equities incl Emerging Markets & Europe 15% Total 100% Note the above is not intended to be a specific recommendation for anyone – just an example of a diversified portfolio. Be sure to obtain investment advice from a trusted advisor. Of interest, as of the date of updating this financial moment [March 27, 2010], my own personal portfolio allocation is predominately in cash. God has specifically directed me to take a very conservative position as I sense from the Lord that the economic “recovery” in the USA and Canada will be weak and short-lived. Again, the biblical principle is that we should generally diversify our portfolios in a manner that is consistent with Ecclesiastes 11:1, 2. However, since only God knows the future (Isaiah 46: 9, 10), then the only possible way to “time the market” with any consistency is in total dependence upon God for his specific direction (see John 15:5, John 10:3, 4, 27, Psalm 32:8). Over the years, I have seen a few situations where God has revealed the direction of markets to his children, but this is rare. God may not reveal the direction of the markets to you, but I do believe, based upon God’s Word [e.g.Psalms 32:8, James 1:5, John 10:3, 4, 27 etc.], that God will direct you as to how he wants you to invest the money that he has entrusted to you. In summary, God’s Word generally recommends diversification of one’s portfolio into different types of investments that will likely react differently to any particular market condition. Since no human knows the future (James 4:13–15), in order to obey God with respect to investing, it is necessary to pray and listen [John 10:3, 4, 27] for God’s specific Will with respect to investing the money that God has entrusted to you. Previous Article Next Article More Topics Freedom from Financial Anxiety Read More Priorities Read More Counsel & Wisdom Read More

Your program is very high quality and essential for today’s Canadian families. We are pleased to have posted it on our website. God bless. Back to Testimonials Very high quality and essential Your program is very high quality and essential for today’s Canadian families. We are pleased to have posted it on our website. God bless. Anonymous Previous Next

God admonishes us to obtain counsel. Proverbs 12:15 states, “The way of a fool is right in his own eyes, But a wise man is he who listens to counsel” (NASB), and Proverbs 15:22 states, “Plans fail for lack of counsel, but with many advisers, they succeed.” Obtain Biblical Counsel Back to Investing By: Tom Copland October 19, 2021 God admonishes us to obtain counsel. Proverbs 12:15 states, “The way of a fool is right in his own eyes, But a wise man is he who listens to counsel” (NASB), and Proverbs 15:22 states, “Plans fail for lack of counsel, but with many advisers, they succeed.” God recommends that we obtain biblical counsel from a godly investment adviser and God’s Word. Blessed is the man who does not walk in the counsel of the wicked or stand in the way of sinners or sit in the seat of mockers. But his delight is in the law of the LORD, and on his law, he meditates day and night. He is like a tree planted by streams of water, which yields its fruit in season and whose leaf does not wither. Whatever he does prosper. (Psalm 1:1–3) I believe that the following are excellent sources of godly biblical counsel. 1. First, and foremost, spend quality time with the Lord in prayer and ask God to reveal his counsel to you through the Holy Spirit. “But Jehoshaphat also said to the king of Israel, ‘First seek the counsel of the LORD.’” (1 Kings 22:5) God has promised that he will provide his counsel and direction in all matters, including investing. “I will instruct you and teach you in the way you should go; I will counsel you and watch over you.” (Psalm 32:8) 2. Meditate on God’s Word to ensure that any proposed investment is within biblical guidelines. “Your statutes are my delight; they are my counsellors.” (Psalm 119:24) For example, use minimal debt, or ideally no debt, as God’s Word discourages the use of debt (Proverbs 22:7). The use of debt increases the risk and the volatility of your portfolio. 3. In addition, before making any major decision, seek the advice of two or three godly investment counsellors/advisers. In my view, an appropriate definition for such a person would be as follows: a spiritually mature Christian who understands and applies God’s investment principles (Psalm 111:10), has a close personal relationship with God (John 15), has the necessary practical investment knowledge (Proverbs 24:3, 4) and habitually puts the interests of clients first (Philippians 2:3, 4. I believe that one of your investment counsellors should be your spouse (Genesis 2:24), even if he or she has limited investment knowledge. God, through his Holy Spirit, can give his peace or lack of peace to an objective spouse who is not emotionally excited about or biased against a particular investment. After obtaining the counsel outlined above, it is your responsibility to pray and ask God to give you his wisdom (James 1:5) in weighing that advice. Proverbs 14:15 states, “A simple man believes anything, but a prudent man gives thought to his steps.” In summary, before making any major investment decision, I recommend that you seek counsel, from God and his Word, two or three godly investment advisers, and from your spouse. Proceed only after God has given you his peace and his wisdom in respect to that particular investment decision. Previous Article Next Article More Topics Freedom from Financial Anxiety Read More Priorities Read More Counsel & Wisdom Read More