If you are a reader who prefers to skip a blog post on giving, I ask that you not disconnect so soon. I want to share with you an important question posed to me in a recent meeting that I believe all should consider. If you are willing to read on, I think you will discover an underlying reason why you don’t get jazzed about Living Giving. If you make it to the end, I bet you will walk away from this post with some insights of your own on this topic.

I am a new board member of the Riverbend Church Foundation. We partner with National Christian Foundation (NCF) to handle monies received from donors. Our chairperson asked us to meet with NCF to familiarize ourselves with their processes. I dutifully set up an appointment with Ryan, our local NCF representative. Our topic for this meeting was legacy giving. After Ryan explained how NCF works, he opened the door for me to share the Living Giving plan that God showed me in 2007. I shared my investment strategies with him and emphasized the joy I feel through giving and the evidence of compounding over the last nine years! I communicated my prayer that by God’s grace I will change the family financial tree for the younger generations.

My goal is to help family members serve the Lord freely without financial hindrances.

Ryan advanced the conversation by posing this question: “Think of a patriarch and/or matriarch in your family. What did they teach you about money and giving?” As I tried to absorb the question, he proceeded to answer it.

“Lee Ann, when I sit down with potential donors and ask this question, the majority shrug their shoulders. Their patriarchs were silent on money and giving,” he said. “Most donors I meet learned about money and giving on their own or through the church.”

I left the meeting reflecting on this question: Who was the patriarch or matriarch who taught me about money and giving? I learned about money and giving through my parents. My Mother and Dad embedded in me the importance of tithing at an early age. Giving is a spiritual act, first and foremost. Dad so strongly emphasized tithing (giving a tenth of my income) that it was “non-negotiable.” You ALWAYS write the Lord a “thank you” note to acknowledge God as your provider! No if, ands, or buts. If you don’t, you’re robbing God. If you do, God will pour out so much blessing on you, you won’t have room to store it (Malachi 3). Dad showed me this particular passage to point out that God invites me to “test Him” on this. This is the only place in the Bible God invites us to test Him.

Dad also modeled generosity to other Christian organizations. When I paid bills for him as his power of attorney, I saw money go to over twenty different Christian ministries. Dad wanted to give as many dollars as he could to help Christian organizations spread the gospel. However, Dad was generous to a fault. He didn’t care if his contributions were building debt on his credit card that he couldn’t pay in full the following month!

I also learned an unspoken family rule about money the hard way. I accepted a call to serve as a Christian counselor in Iola, Kansas, in January of 1994. Since I had been in graduate school and only worked part-time, I didn’t have any cash reserves to initially support myself. It would take at least six months to build a counseling practice in a city where I was unknown. Since this was a Christian ministry, I decided to send out letters to raise funds based on prior mission trip experiences.

In 1990 I traveled to Poland on a mission through my local church and Campus Crusade for Christ. Many of my friends used a template fund-raising letter developed by the organization. It’s a common practice, so I didn’t give it any thought. When I went to Kansas, I used the boilerplate fund-raising letter I had saved from the Poland mission trip packet. I promptly sent it out to my family and friends. I was unprepared for Mother’s disapproval when she called to express her displeasure that such a letter went out to our family members. She announced a rule: “You don’t ask your family for money. It’s up to you to earn it.” I embarrassed her by asking for financial help. Fortunately, other family members weren’t offended by it and gladly helped.

As I finished reflecting on Ryan’s question, I realized that I learned a range of ideas about money and giving. The most important lesson I learned is that giving originates with God. God made us in His image, and He is a giver. Giving is where joy resides. Learning to cultivate the habit of giving through tithing as a child was an integral part of my spiritual formation. But I also observed an unhealthy practice when Dad gave money through credit cards when he didn’t have the means to pay it.

I imagine we all learned both healthy and unhealthy views of money and giving as we grew up.

I am grateful that my parents laid the groundwork for giving at an early age. Some of you may not have been that fortunate. There’s a good chance that many of you didn’t receive any teachings on money and giving from a patriarch. Instead, you had to figure it out on your own. No matter what, we all need a healthy foundation to cultivate a heart for Living Giving. This conclusion leads me to another question.

How can I inspire people to engage in Living Giving if most people don’t have a sound framework to build toward legacy giving?

Maybe God showed me a new angle to consider for my book on Living Giving. Maybe the “problem” I need to solve in this book is the absence of a healthy biblical view of money and giving generously. There’s only one way to find out if this hypothesis is valid. Ask!

I decided to test drive this question with a couple of friends. One friend confirmed Ryan’s statistics. She was one of many who didn’t receive any teaching on money or giving from the patriarchs in her family. Another friend shared humorously a memory of seeing four tithe checks her parents made out to their church. The check stock was in a three-ring binder in full view. My friend wondered why these checks were still undisbursed. They said, “We don’t approve how the church is spending some of the money.” My friend learned that her parents attempted to control their church by withholding their tithe.

I am so glad you made it to the end of this post. I hope Ryan’s question has helped you gain insight into your own views about money and giving. I would love your help on this book project. I would like to collect data about the foundation you received (or didn’t receive) on money and giving.

• Would you be willing to answer what you learned about money and giving from your patriarch/matriarch?

• If the answer is “No one taught me about money and giving,” please share that as well. If it wasn’t your family who shaped your view of money and giving, then who did?

• If all you have is a snippet, I welcome those too.

The comment box is below if you’re willing to help. I look forward to your feedback!

Blessings,

Lee Ann

The post 5.13.16 Who Formed Your View About Money and Giving? appeared first on LAPenick's Blog.

You want to give generously and seek a way to make giving an integral part of your budget, empowering you to change the lives that God has placed in your circle of influence.

•But perhaps, giving has not been a priority for you, because you are strangled by debt.

•Or maybe the idea of giving in order to impact generations to come, feels like a futuristic fantasy.

•Or maybe you’re disappointed that you’re not where you want to be financially, which would allow you to give freely, without a second thought.

I can show you how to use your written budget as a tool to take dead aim at your Living Giving goals, starting with small sums of money.

I can show you how small amounts of money given on behalf of young family members can become large sums through compounding when they grow older—if you are willing to release small dollars now.

I can show you the strong biblical foundation for why we should do this. God wants us to multiply small seeds of money to help our families thrive financially for years to come.

I believe we are not leveraging the tools God has given us. We are too busy driving, barely looking beyond the hood ornament of our car.

Will you join me?

I am looking for a few men and women willing to join a pilot group on a Living Giving journey next year, as I write my book on this topic. I need a small group to test-drive what I’m teaching. Regardless of your level of income or debt, I can help you find a small starting point for building a financial legacy for your family. In return, I ask for your feedback, which will be invaluable.

Photo Courtesy @Shutterstock.com/Monkey Business Images

If you’re interested in joining this small group, you need to meet a few criteria:

Criteria #1: You are a Christian

Just as you excel in everything – in faith, in speech, in knowledge, in complete earnestness and in your love for us – see that you also excel in this grace of giving.
— 2 Corinthians 8:7

Since the principles underlying Living Giving are based on Scriptures, our group needs to accept God’s Word as our source of truth. Of course, anyone can achieve Living Giving regardless of faith orientation, but for now I prefer to work with a group who share a Christian worldview.

Criteria #2: You are willing to meet with me once a month during 2015

We will hold twelve meetings through my video conferencing program at a time we all agree upon. If you’ve ever participated in a webinar, then you have an accurate picture of the format. The meetings will not exceed an hour.

Criteria #3: You have a WRITTEN budget for your household

Since Living Giving is an intentional plan, we need to know our cash flow and how much discretionary income we have. It’s not enough to have your budget “in your head” or to have a “strong feel” for your cash flow. If you want to join this group, you are on the honors system regarding a written budget.

Criteria #4 – You are willing to give me feedback

I will be gathering information from you as we go along. For example, I will need to know what parts of the Living Giving plan may not be clear to you. I will want to know what obstacles you faced to start a Living Giving plan. I will want to know your successes! I will want to know how God showed up and perhaps prospered you when you stepped out in faith to give. Please know your finances will remain private. I will not ask you to disclose your income, level of debt, etc.

My promise to you:

•You will experience the extraordinary blessing of joy, stepping out in faith when you don’t believe you have the dollars to give.

•I have been practicing Living Giving for seven years and I can promise that the small seeds I planted have multiplied in such a way I can’t stop giving! This is not a concept. It works!

•Prayer will be a significant foundation for all that we do.

If the Lord is prompting you to join this small group, please email me or call me. If you have other questions that I failed to answer above, please let me know.

As a Christmas gift, to show my appreciation for all of my readers, I have included a link to download an Excel budget spreadsheet: Budget Template 2015. The formulas are already set up for you. You may tweak it to fit your needs. If you need help customizing the spreadsheet, I will be glad to assist you. This is my forte, so please take advantage of my offer!

Blessings,

Lee Ann

The post 12.19.14 Will You Be a Part of the Living Giving Journey? appeared first on LAPenick's Blog.

Are you looking for an opportunity to financially bless someone today? If so, let me suggest a dear group of people who need support: single parents. Who comes to mind when you read “single parents?” Maybe your neighbors or your colleagues or your family and friends? Maybe you?

I sympathize for single parents trying to raise children on a tight budget. Some of them were divorced against their will, while others left an abusive relationship. If you ask them what they worry about the most, they will tell you, “not having enough money.” It is no secret that women are more economically disadvantaged after coming out of a divorce. They feel anxious being the sole supporter of their family.

Let’s try to live in their moccasins for a minute. Imagine dealing with the daily obligations of preparing meals, keeping up with the house, helping the kids get bathed or dressed, and then working a full time job. These tasks are stressful enough with spousal support. Now imagine the added emotional stress you would feel if a medical bill arrived in your mailbox that you couldn’t pay. Some of these bills induce sticker shock. We are privileged when we can pay our bills from our cash reserves or our next paycheck. But many single parents cannot. I fear that we’re too busy to notice the financial pain single parents are experiencing.

Photo Courtesy @IStockphoto.com/killerb10

It saddens me that God has placed single parents in our lives, who are crying on the inside, but we’re not seeing it. They are financially hurting and wondering if they can make ends meet, while we dine at our favorite restaurants or engage in our favorite hobbies. How does God’s Word inform us to act when we see others needing help? Several passages come to mind:

Romans 12:8 Paul gives a list of spiritual gifts to his readers, declaring that if your gift “is contributing to the needs of others, let him give generously.”

Romans 12:13 Paul encourages us, “Share with God’s people who are in need.”

James 2:15-17 James tells us our faith is dead if we see a brother or sister without food or clothing and then say, “I wish you well; keep warm and well-fed.”

I John 3:17 “If anyone has material possessions and sees his brother in need but has no pity on him, how can the love of God be in him?”

I look to the above verses to strengthen my living giving vision of helping those who are financially stressed. Here is our graphic with today’s focus on helping single parents:

Graphic Courtesy of Chelly Drake

If you were a single parent, would you have the courage to ask for financial help? If you’re like most people, you wouldn’t dare ask. You might feel embarrassed, or ashamed, or worried that someone will think less of you. So how do we create a bridge to minister to our family or friends if they won’t ask for help?

First, pray for God to reveal a financial need so we can minister to them.

Second, listen for financial stress during conversations with single parents. My friends don’t come right out and say, “I can’t pay my medical bill.” Instead they say, “My doctor won’t see me until I pay my balance, so it may be a little while before I can make an appointment.” Or I will hear the stress in their voice when they say, “I can’t believe I have three bills due at once. It will be a miracle if I get them all paid.” Before the Affordable Care Act (ACA) came along, my friends who didn’t have health insurance would say, “I can’t afford to go the doctor or dentist.” Sometimes it can be difficult to come up with a $25 copay to see a doctor. In none of these scenarios did anyone ask, “Lee Ann, can you help me?” I take the initiative by asking, “Would you please let me help you with any medical bills you have?” Or “What bill is creating the greatest burden for you?” Or “Would it be okay for me to minister to you financially?” When I am direct, I don’t get turned down.

The Lord amazes me. He already knows the need of my friends and knows how to provide the resources to me to assist them with their medical bills. I have yet to miss the money that went to pay a medical bill for a single parent. Sure, the payment temporarily reduces my checkbook balance, but I promise you I do not miss it – and neither would you. In addition, my accountant informs me that by paying a medical provider directly, I can receive a tax deduction. That’s not the reason I give, but it’s a nice bonus.

I’m sure I sound like a broken record by now, but there is joy knowing that God has resourced us to help others. We have the privilege of being God’s conduit, while His generosity flows through us. When we reduce their financial stress by paying their medical bills, we are also giving them the gift of emotional rest. They are no longer losing sleep.

Would you prayerfully consider helping a single parent financially? In my last post, I suggested that you create a budget line item entitled, “Helping those in need.” This line item can be used for both the poor and/or single parents who need our help. With some gentle probing, I bet you will discover an opportunity to financially bless a single parent today. More importantly, watch your impact on them, and you will see how powerful your financial gift is to them. It will make you want to do it again!  

Blessings,

Lee Ann

The post 6.13.14 Let’s Bless Someone Today appeared first on LAPenick's Blog.

Recently I was sitting at a traffic light when I noticed an underprivileged woman on the corner holding a sign that read, “Anything helps. God Bless.” Because I was out of granola bars, I reached for a dollar in my wallet. When I rolled down my window, she flashed a smile of appreciation. As I handed her the dollar, I shared my standard pitch, “This dollar is not from me, but from Jesus. I hope you will spend it wisely.” Without skipping a beat she said, “Jesus is my Savior, and I am saving these dollars to pay next month’s rent.”

Photo Courtesy @ IStockphoto.com/eyecrave

I don’t profess to be an expert on ministering to the poor. I struggle with how to help them effectively as much as the next person. As Christians, I doubt we disagree about our duty to assist the poor, but how we go about it is another matter. Giving to the poor is part of my living giving vision.

Graphic Courtesy of Chelly Drake

I offer three biblical reasons why our living giving plan should include the poor.

#1: God said so.

“Give generously to him and do so without a grudging heart; then because of this the Lord your God will bless you in all your work and in everything you put your hand to. There will always be poor people in the land. Therefore, I COMMAND you to be openhanded toward your brothers and toward the poor and needy in your land.      — Deuteronomy 24:10-11

Throughout the New Testament, you will find passages in which God places high value on the poor.  Examples include “remember the poor,” and Tabitha “was always doing good and helping the poor,” and Cornelius “was God-fearing and gave generously to those in need.”

#2: Jesus expects us to remember how merciful He was to us, which should motivate us to be merciful to those in need without judging them. 

Luke 6:27-38: Jesus teaches us how to love the unlovable, i.e. love your enemies, do good to those who curse or hate you, and lend without expecting repayment. He even says “Give to everyone who asks you.” Why? He gives an admonition, “Be merciful, just as your Father is merciful. Do not judge, and you will not be judged.”

Jesus showed us mercy when we deserved to be condemned. When the poor need help, He wants us to demonstrate His mercy and generosity without judgment.

#3: Jesus believes that when we ignore the poor and needy, we have ignored Him. 

Matt 25:34-40: This passage describes Judgment Day. The first three verses describe Jesus affirming the righteous for giving Him food, water, and clothing when He was in need. The last four verses describe the righteous trying to recall when they gave Him these provisions. Jesus said, “I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.”

Jesus deeply cares for the poor. It is so important to Him, that we will be held accountable for our actions toward the poor on Judgment Day.

WHERE DO WE GO FROM HERE?

God expects us to take care of the poor, but I feel challenged by how to do this effectively. Don’t you? How do we give generously in a culture in which we are segregated by socioeconomic classes? How do we reach across those barriers when the primary times we cross paths with the poor are at a signal light or on a mission trip? How do we make meaningful connections with people in need? Moreover, how do we make this a part of our living giving plan?

Here are some opinions I’ve heard among Christians about how or how not to help the poor:

• If we give money to a homeless man, he is going to buy alcohol with it. How is that helping the poor?
• Handing money to a poor person is not solving the problem of poverty. We are rewarding their choice to panhandle.
• Communities have places set up to provide meals and shelter for the poor. We should encourage them to seek assistance there.
• When we give our tithe to the church, a portion of the money is sent to organizations that help the poor. Therefore, I am fulfilling the requirement to help the poor.

None of these points exempt us from looking the other way when a person is asking for help on the corner. When I read a passage from Deuteronomy about being “openhanded” or giving “without a grudging heart,” I can’t ignore my responsibility. Furthermore, if we adopt the premises shared above, we ultimately foster a pattern Jesus doesn’t favor – keeping the poor at a distance.

Of course, how I chose to help the woman on the street corner prevails as the least popular approach among the brethren! I typically have non-perishable food in the car to give away. However, this is the most obvious daily opportunity I have to create a meaningful connection with the poor. And if we are honest, giving a dollar doesn’t make a dent in our wallet when we don’t have food to give away. Why begrudge them? Who are we to judge them?

For those looking for an entry point, let me offer some ideas to help the poor as part of your living giving plan:

• Create a line item in your budget entitled “Helping Those in Need” and determine a set amount to give each budget cycle. Then be intentional by praying for the opportunity to serve the poor directly. Ask the Lord to reveal persons in need so you know who should receive the amount you’ve set aside to give. I have been doing this for the last five years, and it is amazing how God answers this prayer!
• If your church has a ministry to feed the poor, get involved. If not, then meet with the director of your local soup kitchen and volunteer to help serve meals. When you are finished serving the food, then sit at the table with them and make a connection. Learn a little bit of their story, and come back regularly so you can cultivate a relationship with them.

Photo courtesy @Istockphoto.com/jgroup

My friend, Barb, and I did this for over a year in Hutchinson, and five years later, we still share a friendship with a sweet woman named Bessie. She still calls us for prayer support, or when she’s lonely.

Bessie and me at IHOP.

THE REWARD FOR HELPING THE POOR AND NEEDY 

I invite you to implement one of these ideas. Let me encourage you with these passages from Proverbs:

• Prov 19:17 “He who is kind to the poor lends to the Lord, and he will reward him for what he has done.”
• Prov 22:9 “A generous man will himself be blessed, for he shares his food with the poor.”
• Prov 28:27 “He who gives to the poor will lack nothing.”

Here’s the bonus:God’s living Word is intended to be transformational, not informational. When we act on the information, the poor is blessed, but we are the ones who are transformed! Our hearts grow to be more like Jesus. Because we are made in His image, our generosity to the poor reflects Him. We share His joy when we tangibly make a difference in the life of another. It is my prayer that you will incorporate helping the poor in your living giving plan.

What is your greatest struggle to help the poor in more meaningful ways beyond sending money as a charitable gift? If you are helping the poor that includes connecting with them directly, please share a comment below on how you’re doing it to inspire the rest of us! 

Blessings,

Lee Ann

The post 5.30.14 Three Reasons Why We Should Give to the Poor appeared first on LAPenick's Blog.

Talking about life insurance is like putting lipstick on a pig. How attractive can it really be? Take the parachutes off your back and stay with me! I have always believed in utilizing insurance to protect family from catastrophic events such as a premature death, disability, or long term care. But I bet the majority of you have not thought about taking out life insurance on your infant, let alone how it can be a tool for living giving.

Today I want to expand your thinking about living giving for your own child, grandchild, or any young relatives through life insurance. I’ll share with you the big picture and possibilities without going into all the factors and variables. As I demonstrate the versatility of life insurance, I invite you to ponder the question at the center of the graphic below: “What is My Living Giving Lifetime Goal?” for utilizing life insurance.

Graphic Courtesy of Bill and Chelly Drake

Let’s assume you want to buy life insurance on your child or grandchild as soon as he or she is born. What kind should you buy? In order to carry life insurance throughout your child’s life, you need permanent life insurance, e.g. whole life, universal life, or variable universal life policies. Let me be clear, the goal of buying insurance is not for purposes of a death benefit (though that comes with the policy), but rather to provide for them later in life.

How is using life insurance a “living giving” approach?

• Because life insurance offers permanent protection as long as the premiums are paid, your gift builds equity (also known as cash surrender value) in the policy for your child or grandchild.
• By building the cash value in the policy, it can be accessed for a number of purposes, like funding your child’s college education, or supplementing their retirement income decades from now – tax free.
• By securing your child’s life insurance policy as soon as he/she is born, you are protecting the child’s future insurability over his/her lifetime. Once the policy is issued, coverage cannot be canceled as long as the premiums are paid. That’s a gift. And if you buy the policy with a Policy Purchase Option, you have the opportunity to incrementally increase the death benefit during certain windows of time, regardless of your child’s health situation. We take for granted that kids will be healthy, but conditions like diabetes or autism, for example, will preclude children from being underwritten.
• Finally, the ultimate goal is to transfer the ownership of the policy to your child. You are gifting the equity that has been built up over a long period of time that they can tap for retirement income or other expenses – tax free.

Let’s Do Some Math

Life insurance premiums are based on age. If you buy a policy on your child when she is young, you pay less in premiums. Let’s assume you’re buying a variable universal life insurance policy on your infant, and you can commit $500/year in premiums. Here is what $500/year in premiums can buy in ballpark figures:

• $68,000 for the initial death benefit.
• When your child is eighteen, the equity is approximately $12,000 (assumes about a 7%/year rate of return net of expenses), which can be tapped for college education expenses tax free.
• When your child is eighteen, the death benefit will have grown to approximately $80,000, though this is not the focus of this strategy.
• If you don’t need to tap the equity for college education, then let it keep growing. When the child is 65, the equity is around $400,000, which can be withdrawn tax free.
• When the child is 65, the death benefit has grown to approximately $500,000.

Here’s the punch line. Your living giving was $500/year in premiums from your child’s infancy to their age 65, or $32,500, but the resulting tax free gift grew to $400,000. This amount is your lifetime living giving goal for insurance assuming you are gifting for one child.

It is my prayer that as you read these posts, you are envisioning ways that you can practice living giving to change your family’s financial tree. As of today, I have covered living giving through 529 Plans for college education (Living Giving with 529 Plans), through Roth IRAs when your children start earning income (Living Giving Through Roth IRAs), and through life insurance. I hope your cumulative lifetime living giving goal is growing!

If you like the idea of living giving through insurance, contact your financial advisor or insurance agent to process it. They will gladly run an illustration for you at no cost for any scenario you want. 

Blessings,

Lee Ann

The post 5.16.14 Life Insurance for Infants? appeared first on LAPenick's Blog.

I want you to dream about changing your world financially, beginning with your family. I want to tap your desire to make a difference in the lives of your loved ones, for you to fully understand your ability to make a powerful financial impact in your lifetime, long before you die, through living giving.

If I told you that you could give over $2,000,000 to one child out of your current income, would you believe me? You have my blessing to be skeptical. However, if you’re willing to learn how to use basic financial tools during key timeframes, I think you’ll become a believer. I invite you to begin assessing your living giving lifetime goal today.

Let me introduce my living giving vision with a graphic:

To assist you in answering the question at the center of my graphic — “What is my “Living Giving Lifetime Goal?” — I will blog on each of the surrounding areas about giving. Today, I want to cast the vision for the section of living giving titled, “Roth IRAs for Kids or Grandkids.” I will assume for this illustration that you have two children. If you’re single, I will assume you have two nieces or nephews, or younger cousins.

A Roth IRA is an individual retirement account that offers a valuable future tax break: tax-free income in retirement. The dollars you contribute to the Roth IRA on behalf of your child are after-tax dollars, meaning you have already paid federal and state taxes on it. Whenever your child has earned income (like mowing lawns, paper routes, babysitting, waiting tables) in a given tax year, you are allowed to contribute the amount your child earns, but not to exceed $5,500/year, whichever is less. So if a child only earns $1,000 in a given tax year, you can only contribute $1,000.

The key to the “Tax Free Giving that Compounds Long Term” sections of my living giving model is to invest while your children are young so that their Roth IRA investment can grow and compound for many years. Let me share an illustration from Dave Ramsey’s course, Financial Peace University. I have shared it before, but it’s worth repeating. You can click the link to download this illustration to your desktop – Ben and Arthur Illustration from FPU.

In order to change your family financial tree through living giving, you have to invest during a certain window of time, and I don’t want you to miss it! When your children are between 19-26 yeas old, I want you to budget living giving for $2K/year. This assumes that your two children earn at least $2K/year through an employer. The reason I am calling this living giving is because you are letting them keep what they earn, while you “gift” their earnings into their Roth IRA. If you faithfully give $2K/year for eight years and the investment grows at 12%, compounded annually, then you will give your children $2,288,996 each when they are 65 years old. You will probably be in your late 80s or 90s, but this is why I marvel at this vision:

So if the only living giving you ever decide to do for your two children is a Roth IRA, and you do nothing else, then you should put $4,557,992 as your “Living Giving Lifetime Goal.” Many of us will never be able to leave an inheritance of this magnitude upon our death! But many of us can be intentional by budgeting $2K/year to fund our kids Roth IRAs when they are between the ages of 19-26. I don’t believe that $2K/year is “pie in the sky.” I think it is achievable if we plan to make it happen.

Let me push you to think some more. Many kids start working before they are nineteen. I was flipping burgers at Jack-in-the Box when I was sixteen and worked for my stepfather in his golf shop during the summers. If you want to reach the goal of funding $16,000 into a Roth IRA before your children reach twenty-six, consider opening a Roth when they start earning income. If your child is fifteen and works as a babysitter for a neighbor, then you can legitimately open a Roth at that time. It doesn’t matter if one year’s income is a total of $300. Open it! It’s a great way to get it started. If you start a Roth before they are nineteen, your living giving total has the potential to be significantly more than what I illustrated above.

Some of you might be thinking that $2K/year is still hard to contribute, especially if you have two children in the window of ages 19-26. Then try $1K/year, or $500/year.  But contribute something because you have a special window of opportunity to do your living giving while the investing timeframe is on your children’s side.

Today’s goal was to help you begin figuring out your “Lifetime Living Giving Goal” by focusing on the “Roth IRA.” I assumed you have two children; therefore, $4,557,992 is your first goal amount. I will continue to describe other ways to practice living giving in future blog posts. I pray that if the Lord is in this vision, He will grab your heart with these ideas and inspire you to implement them. I believe you will reap the real benefit of living giving, which is the indescribable joy you will experience – while changing your world in the process.

Does this living giving idea make sense to you? If yes, do you see yourself attempting it when the children or grandchildren enter into the ages of 19-26?

The post 5.2.14 Imagine Giving Over $2,000,000 While Alive appeared first on LAPenick's Blog.

Do you remember as a parent how difficult it was to save money to help your children obtain a college degree? Maybe you’re facing that challenge right now. Or perhaps you recall the financial struggle you endured to put yourself through college. I hear the frustration of parents regularly when they come to me for financial planning. The cost is so formidable they feel defeated before they begin to save.

Photo courtesy @ IStockphoto.com/diane39

Seven out of ten graduating seniors start their careers burdened with student loan debt. CNN Money reports that the average student loan debt is $29,400. None of us want to see our children enter the workforce with loan payments due. Moreover, the cost of college rises an average of 7% a year, while most workers are lucky to get a 3% cost of living increase. That’s in a good year. The number of students in need of loans continues to rise as well. It’s going to “take a village” to help our kids go to school in the 21^st century.

How can we help the younger generation save enough money to send their kids to college? I see living giving as the answer. Anyone with discretionary income can participate and make a meaningful difference in the lives of their loved ones!

Living giving is the biblical notion that God entrusts us with resources to be shared when we see others in need. We find the foundation of living giving in Scripture, which states that those who sow generously reap generously. We know that God, our “seed supplier,” will continue to provide more as we share more. We also experience joy when we bless others with His resources.

Perhaps you believe it’s the parents’ responsibility to save for their children’s education. Even if that’s true, it doesn’t change the fact that the cost of a good education is so out of reach that it’s going to take more of us to help. I invite you to engage the spirit of giving, and for the sake of our children, let go of that debate. I want you to taste the joy of releasing resources that are not ours to hoard, but His to give.

Let me introduce a wonderful college education savings tool, the I.R.S. 529 Plan, which allows anyone to open an account on behalf of a relative, friend, or themselves, using after-tax dollars while the earnings grow tax free. The owner of the 529 account maintains control of the purse strings, which means that you are not legally required to transfer the funds to the beneficiary. If the beneficiary never goes to college, the owner can rename the beneficiary to another relative who will likely go to college.

We can help our family members succeed in putting their kids through college through living giving. Here is the plan:

1)      As soon as a baby is born, contact your financial advisor to start a 529 plan and fund it with a portion of your discretionary income over the next eighteen years.

2)      Let the parents and extended family of the newborn know you’ve opened a 529 plan so that birthday and Christmas money can be deposited there to build the college fund.

You can open a fund for as little as $250 in some plans, or even $25/month as an electronic funds transfer. If monthly funding doesn’t appeal to you, you can invest a lump sum at any time or any level. Now let me put some numbers to this so you can see the power of compounding through your generosity as soon as a newborn arrives.

In the chart below, I’ve assumed that multiple family members helped to jumpstart a 529 plan upon the child’s birth, and then contributed to the 529 plan with birthday and/or Christmas money, either on a one-time basis, annual basis, or monthly basis.

(You may download this table with 15 seconds of patience: 529 Calculations )

If enough family members gifted $1,000/year to contribute to the 529 plan, there would be approximately $55,719 in the college fund. Or, if enough family members committed to a total of $100/month, there would be approximately $58,196 in the college fund. This amount would get most kids through a four-year degree plan at a public university, even with the average annual 7% inflation already factored into the calculation.

Here’s another idea to consider. What if you want to do some living giving for future grandchildren? Or what if your son has just gotten married and has indicated an interest in more education? Why not start a 529 plan for him and name him as the beneficiary? If he doesn’t end up pursuing a graduate degree, but instead starts a family, you can rename the beneficiary from your son to your new grandchild. This idea allows you to get ahead of the curve on funding for college education for a grandchild who hasn’t been born yet!

As you can see from the above tables, if you fund the 529 plan as soon as the baby arrives, you take maximum advantage of compounding in the stock market. If multiple family members choose to share their discretionary income, God will multiply His resources.

College education costs are not going down, nor is the stress mounting on young parents who want their kids to have the same opportunities for education as they did. It’s never too late to start saving! Every dollar counts, so let’s ask the Lord to help us bless our young family members who will likely go to college someday. We have only one life to give, so this is our chance to share God’s resources with others. May the joy be all yours!

   I would love your feedback on this idea. What do you like about it, or not like about it? I will embrace your thoughts as your contribution to make sure I have thought through my ideas well as I write my book!

Blessings,

Lee Ann

Here are the resources for today’s post, in case you’re interested in exploring these ideas further: 

http://money.cnn.com/2013/12/04/pf/college/student-loan-debt/

http://www.bankrate.com/calculators/savings/compound-savings-calculator-tool.aspx

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

http://www.irs.gov/uac/529-Plans:-Questions-and-Answers

The post 4.4.14 Are You Willing To Be a Part of the Village? appeared first on LAPenick's Blog.

Part 1 – A Good Place to Begin

I love to give to others.

I love to give to others because I see the difference it makes in their lives.

But really, I love the joy I experience when I give to others.

I love the vision of living giving the Lord has entrusted to me.

Living giving is a way of life, sharing our time and financial resources.

With regard to time, I Corinthians says, “You are not your own. You were bought at a price.” (6:19-20)

Living giving is a call to advance the kingdom.

Our life was created by God and FOR God.

How we spend our time should reflect this. 

With regard to financial resources, Acts 20:35 records Jesus’s words, “It is more blessed to give than to receive.”

We must share our resources and possessions generously while we’re alive.

Our culture focuses on saving for retirement and then handing the remainder to our beneficiaries when we die.

Our fear of running out of money creates a tendency to hoard.

Yet 2 Corinthians says, “And God is able to make all grace abound to you,

So that in all things at all times,

having all that you need,

you will abound in every good work.” (9:8)

DO YOU BELIEVE GOD?

Perhaps I should trust God more.

I have let fears become roadblocks in expressing my heart about living giving.

I fear that no one wants to read about financially giving that can change lives and family trees forever.

I fear that no one wants to read about giving our time to make a positive impact on others.

I fear that no one wants to read about sharing our talents and abilities to bring others along.

I fear that no one wants to read about living giving to see the possibilities of being generous, even when one is financially stressed.

I fear criticism from my Christian family who might accuse me and say, “This is all about Lee Ann.”

Consequently, I have blogged little on the topic of giving, avoiding going public with this vision. I have idled for two years.

I’m changing that today.

I’m going full throttle to write a book to share my vision of living giving that God has revealed to me.

I believe God has called all Christians to this way of life.

There is plenty of Scripture to support this.

I’m setting aside my concern that you think I’m looking for your applause.

The Lord knows my heart, so I am going to move forward in sharing it.

I believe that this biblically-based, life-changing message is too important not to share.

The decision to begin sharing the concept of living giving is freeing to me.

I want you to experience the joy of living giving.

I believe you desire to give.

I believe that adopting a living giving lifestyle will cultivate God’s character trait of generosity in you.

You won’t be giving in order to get a “thank you.”

You won’t be giving expecting anything in return.

You won’t be giving out of obligation, but out of joy in making a difference in the lives of others.

It’s unadulterated living giving.

This manifesto is my attempt to inspire and motivate Christians who share the desire to be a generous giver just like Him.

If this resonates with you, read on.

But before I begin…

Be prepared to be God-inspired.

And to become generous givers while you’re alive.

Because when you are finished reading my manifesto of living giving,

I am going to ask you to take your first step.

Start giving for the right reasons. 

Part 2 – Calling All Givers: A Manifesto for All Who Will Hear

Givers don’t give to get accolades.

This is the most important and only lesson every giver must learn.

Real givers don’t give for recognition.

They don’t give so that a building can be named after them.

They don’t give to seek approval from others.

They give because they cannot not give.

They give God’s resources under the authority of Jesus’s higher calling to generously give.

They are compelled to give.

To change the family financial tree.

To help others in their time of need.

To help the world around them.

To share with others because they can.

Real givers wake up every day wondering how they can give to make a difference in someone else’s life.

They will even pray daily asking the Lord to show them who they should help today. 

Their mindset is to look for ways to share God’s resources with others.

When God reveals the need, they make no excuses to avoid giving.

Questions of should we or how much they should give are irrelevant.

What is certain,

what cannot be ignored or discounted,

is that they give.

Real givers do not give with a need to hear “thank you.”

Nor do they seek accolades for their generosity.

Our human flesh wants this, of course.

This desire for our gift-giving to be acknowledged.

To be recognized as a generous giver.

But ultimately these fleshly desires corrupt the act of giving,

the pure desire to give because God’s resources are never ours to hoard, but His to give.

We must put to death the fleshly desires for recognition.

They have no place in God’s kingdom.

The true giver simply looks for every opportunity to give.

They are always ready to meet a need.

Whether the giving is acknowledged is not important.

Giving generously is the primary concern.

Real givers do not need inspiration or a push to give.

They know, without a question, that they cannot out-give God.

And that they will not run out of resources.

2 Corinthians says, “Whoever sows generously WILL also reap generously.” (9:6b)  

This picture does not reveal our resources being depleted.

2 Corinthians says, “Now He who supplies seed to the sower and bread for food

WILL also supply and increase your store of seed

and WILL enlarge the harvest of your righteousness.

You WILL be made rich in every way

so that you can be generous on every occasion.” (9:10-11)

 DO YOU BELIEVE GOD?

Real givers recognize that the Holy Spirit is their leader.

Acting upon the Spirit’s prompting.

Listening to the Spirit’s guidance.

Allowing the Spirit to lead.

The wisest givers call upon the Lord through His Spirit,

taking the time to learn how to share His resources generously.

They do this every day. 

There is no excuse to wait.

It’s a call to begin giving.

To honor God by sharing His resources.

To be available daily as His vessel.

Even without applause.

They give because God’s character trait of generosity grows within them to glorify God.

Because if they were not giving,

they would never know the joy that comes with it.

Of course, there is a great irony to all of this.

As givers unhook themselves

from the temptation to gain recognition,

they discover something.

The only reason they have anything to give is because God entrusted the resources to them!

Givers are helpless unless God supplies them in the first place.

They are liberated to give generously because they know the resources aren’t theirs.

And the Lord rewards generous giving.

Here is a paradox:

As we care less about being acknowledged for our giving,

we give more freely.

Recipients will acknowledge your gift when you’re not seeking attention.

They will aspire to give as well.

And thank God, not the giver, for the difference they make.

Some day. 

Until then, you and I are not excused from giving.

Part 3 – Where You Must Decide to Start

It’s time.

To embrace living giving boldly and know with certainty that the Lord will honor your generosity.

To seek ways to share God’s resources of money and time and abilities to minister to those around us who need us.

To examine your spending and look for ways to redirect dollars for a higher cause.

To stop worrying about whether you’re going to be short if you give.

And give as the Spirit leads you.

It’s time to begin.

This whole process of living giving is our opportunity to reflect God’s image.

Of glorifying God through His character trait of generosity.

God loves a cheerful giver.

Your part is to show up daily and give liberally.

WE HAVE ONLY ONE LIFE TO GIVE, SO GO GIVE. 

The real giver within you is waiting.

Part 4 – Taking the Next Step

This is the living giving manifesto the Lord has entrusted to me. Lord willing, there will be a book entitled, Only One Life to Give that will expound on the principles of living giving. I will share the variety of ways we can and should use God’s resources of money and time to advance His kingdom using His biblical principles.

The Spirit is stirring somewhere inside of you spurring you to give.

I believe this because you are made in the image of God, and He is a generous giver.

It’s up to you to respond.

It is my prayer that you will.

Blessings,

Lee Ann

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