1 Stewardship by Bob Chism, CAM by Bob Chism, CAM

2 Stewardship Opportunity 70% of consumers live from paycheck to paycheck The average family has to use a credit card to pay a $1,500 unexpected expense - is three years away from a planned repayment plan 37% of marital problems are financial based 70% of Americans die without a will or trust Nearly half (46%) of all Americans have less than $10,000 saved for their retirement 53% of Christians have not given to their church in the last month - church giving has not exceeded 3% as a portion of income in the last 40 years

3 Stewardship A 100% Concept Lifetime-God owns all things, we are His stewards. It is important that we use our assets to their fullest potential during our lifetime for self, family, business, and charitable interests. Eternal-And at death, we must have arranged for the transfer of our assets in the most efficient and effective manner to individuals or charitable interests who will continue to use them to reflect our Christian life-style.

4 Stewardship Finances God’s Way Concept of Cash Flow Margin Taxes (Income, Social Security, Medicare) Spending Guidelines Emergency Fund No Debt, except Mortgage Insurance Coverage Identity Theft Protection Investment Philosophy College Funding Early Mortgage Pay-off

5 Stewardship Finances God’s Way Cash Flow Margin “Never spend more than you earn” Always pay taxes and give charitable gifts first, then live on what is left. Dr Richard A Swenson Compound Interest is either a powerful Foe (Debt) Or Friend (Investment)!

6 Stewardship Finances God’s Way Taxes Income (Federal, State, City) No Maximum Social Security $106,800 Max (4.2% 2011[Holiday in 2011]; 6.2% 2012) Medicare $106,800 Max (1.45% 2011;1.45% 2012) Estimate your income tax withholding accurately, as refund checks are a poor investment!

7 100% of Benefits until % of Benefits until % of Benefits after “Best Estimate” (Without Any Change) SSA Annual Trustee Report National Academy of Social Insurance Stewardship Finances God’s Way Social Security Benefits

8 Stewardship Finances God’s Way Spending Guidelines Charitable Giving 10-15% Saving / Investing 5-10 Housing Utilities 5-10 Food 5-10 Transportation Clothing 2-7 Medical/Health 5-10 Personal 5-10 Recreation 5-10 Dave Ramsey’s FPU Refer to Your Spending Guide for additional Information.

9 Stewardship Finances God’s Way Emergency Fund Emergency Fund is to help avoid debt. $1,000 in bank (If income $20,000, $500) Three to six months expenses in savings Dave Ramsey’s FPU

10 Stewardship Finances God’s Way Stewardship Finances God’s Way Eliminate Debt Pray for Holy Spirit’s help and guidance. no more debt. Allow no more debt. Destroy all credit cards. Pay cash, sacrifice wants and desires until debt current. List assets to evaluate whether to sell for debt reduction. for debt reduction. Contact all creditors and arrange a repayment plan. The average family can be debt free in three years. Crown Financial Ministries

11 Stewardship Finances God’s Way Stewardship Finances God’s Way Transportation Drive Free Cars for Life What if you decided to stop messing with car payments? What if you invested that old car payment every month instead of giving it away to the bank? What if we showed you a six-year plan that would put you in free cars for the rest of your life? What if that plan also made you a millionaire? Watch Dave Ramsey’s video: media/flash/elearning/drive-free/player.html

12 Stewardship Finances God’s Way Insurance Coverage Life Disability Health Auto & Home Identity Theft Protection Long-Term Care Refer to Dave Ramsey’s Insurance Do's & Don'ts for additional information.

13 Stewardship Finances God’s Way Identity Theft Protection Purchase a plan that provides “full restoration” benefits which takes over all the work with creditors, government agencies, collectors, police, social security, etc. Make sure the plan covers all risks of ID Theft...not just credit related issues. Always order your free credit report from each credit bureau once a year. Take advantage of free consumer services to help reduce your risk. Enroll your entire family in a plan since children are prime targets of Identity Thieves. The Dave Ramsey Show Refer to Crown Financial Ministries Identity Theft Report for additional information.

14 Stewardship Finances God’s Way Investment Philosophy Begin with pre-tax savings [in 401(k), 403(b),TSP, Traditional IRA) and tax-free savings (Roth IRA, Roth 401(k)]. If your employer matches your contributions to your 401(k), 403(b), TSP, then invest up to the match. Next, fully fund a Roth IRA for you (and your spouse, if married). If that still doesn't total 15% of your income, come back to the 401(k), 403(b) or TSP. Dave Ramsey’s FPU Refer to Dave Ramsey’s Investment Philosophy for additional information.

15 Stewardship Estate Planning The Four P’s Estate Planning Family Conference

16 Stewardship Estate Planning People Inventory Stewardship Estate Planning People Inventory This section contains data on the people of your estate plan; family members (husband, wife, aged parents, adult children, grand kids), other individuals, and charitable organizations who are a part of your estate distribution.

17 Stewardship Estate Planning Property Inventory Provide Property Ownership Type! Accounts, Certificates, Funds Real Estate Life Insurance Retirement/Employee Benefits Business Interest Miscellaneous Assets Liabilities Federal Income Tax Information Vital Records

18 Stewardship Estate Planning Plan Inventory Will Durable Power of Attorney Medical Living Will Medical DPA Trust Letter of Instructions (LOI)

19 Stewardship Estate Planning Will Benefits Opportunity for your testimony as a preface Making sure your assets go where you want them to go Controlling assets while you are alive but incapacitated Controlling assets after death Providing provisions for a guardian of minor children Minimizing heirs emotional and financial burden Minimizing taxes and increasing the amount available for charitable donations Avoiding the cost and delay of probate

20 Stewardship Estate Planning Trust Benefits Manage money for an heir, too young or financially incompetent Provide continuity of management in the event of incapacity Require an heir to meet certain standards, such as being drug free or graduating from college, in order to inherit money Ensure that a person’s assets go to their children rather than the surviving spouse’s children from a previous marriage Assist a disabled child without disqualifying government assistance Reduce income taxes, providing income and leaving more Protect assets from creditors Reduce the cost and public exposure of probate Control the inheritance for a troublesome heir, while avoiding ill feelings toward the estate owner and toward those who inherit

21 Stewardship Estate Planning LOI Benefits The location of important papers and keys to lock box or containers Contact information for your insurance policies including Medicare Financial statement listing your accounts and any outstanding loans Persons to contact such as relatives, friends and advisers An obituary listing your name as you wish it written, including nicknames, place and date of birth, immediate relatives with noteworthy accomplishments Type of funeral preferred and any prearrangements made with the funeral home and/or minister

22 Stewardship Estate Planning Planners Inventory Name, Address, Telephone, Street Address Attorney Financial Planner Insurance Agent Human Resource Person Preferred Physicians Spiritual Leader

23 Stewardship Estate Planning Family Conference An opportunity to share personal testimony Minimize family anxiety about your wishes Smoothes the passing of estate assets Softens any inheritance discomfort or quilt Overviews basic documents & locations Creates opportunity to listen for concerns, particularly regarding any personal property Gives opportunity to response to requests

24 Stewardship Available Documents Your Family Budget Dave Ramsey’s Insurance Do's & Don'ts Crown Financial Ministries Identity Theft Report Dave Ramsey’s Investment Philosophy Your Estate Planning & Gift Guide Robert W Chism 1513 Eagle Ridge Drive Antioch, IL gonewbeginnings.org

Stewardship About Bob Chism Bob is the creator of New Beginnings (gonewbeginnings.org), a personal website dedicated to seeking, sharing, and serving second halfers. second halfers. He is Certified in Aging Ministries (CAM) by the Center for Christian Leadership, Anderson University School of Theology in Indiana. He is a member of Village Church of Gurnee in Illinois and Christ Together of Lake County Illinois as well as a contributor to CASA Illinois as well as a contributor to CASA Network and YES. Network and YES. Bob had a four decade career in finance& strategic planning, and was a Certified Public Accountant (CPA) in Ohio and Illinois. He is a graduate of Bowling Green and Northwestern Universities. Married 48 years to Karen June Bartel of Euclid, Ohio, he has five adult children, including two sons in laws, and seven grandkids.