ECCLESIASTES – WEALTH
Introduction
Jon: We’ve spent this fall unpacking lessons from Ecclesiastes. By reputation, Solomon is considered one of the wealthiest men who have ever lived. It’s probably impossible to quantify his wealth in modern terms! As we’ve seen, Ecclesiastes holds a treasure trove of insights regarding everything from understanding life’s purpose, to navigating relationships, to living wisely.
Well, if there is one area of life most people could use some help in, it’s with “finances.” I’m intending the word “finances” to be like a broad umbrella.
(1) Maybe you need to help managing money—like day to day, month-month. There is incredible financial pressure, especially on young families today.
(2) Maybe you need help pursuing true riches—but what are true riches?
a. For some true riches might include certain achievements, accumulating certain possessions.
b. For others true riches wouldn’t be material at all—but more relational and spiritual. For instance, ask yourself? If you had to choose, what riches would you most prefer—Financial riches? Material riches? To be Relationally rich—surrounded by love? Or to be Spiritually rich—knowing fully God’s love in Christ?
(3) Maybe you need help managing or being a good steward of acquired wealth. This past year I turned 50. Lara and I have saved carefully our whole lives for our later years. But we’re also saved to one day to bless the Kingdom of God. We’ve tithed our income 10% but at our passing we’ll be able to give whole life savings away. But to who? And how? Solomon says futility is not having an estate, or will, or exit plan.
(4) But I’ve also become my mother’s caregiver—which means I’m in charge of her welfare—which further means I have to manage her wealth well to ensure her long-term welfare. I made a promise to Mom and Dad to serve them well. **And beyond even this is the desire to be a good steward, and faithfully discharge the trust given me by God Himself.
This morning, I want to do something different. Today, I’ve invited Rick and Jan Schramm to the stage to help us reflect on some of Solomon’s teaching about wealth. Rick and Jan have been leaders at Lakeside for decades. Rick was one of the Elders when I was hired, so if you are looking for someone to tar and feather… I can’t say enough about the generosity of Rick & Jan. They have helped propel ministry of Lakeside to new heights by simply being good and faithful stewards. They have also blessed countless organizations, people, and especially my own family. From the day I’ve met Rick and Jan I’ve never made a major financial move without seeking their counsel. They are filled with wisdom shaped by God’s word and also everyday life.
Jon: Could you guys briefly share about your financial background, and the unique perspective it’s given you about wealth?
Rick: I worked for 3 financial institutions over my 42-year career. While I was often a commercial lender, I also collected a lot of debt. I’ve had the painful task of foreclosing on farms, homes, and businesses.
Jan: I worked for 40 years at different community banks. I started out as a drive-up teller and finished my career as a Treasury Management Specialist for Commercial clients assisting with their cash flow needs and preventing and minimizing fraud or risk.
Jon: Let's talk about the word “wealth" for a moment? How do most people view wealth or riches, maybe to their own detriment?
Rick:
• Our nature is to make decisions about a person’s wealth, based upon appearances – which subdivision do they live in? ¬-the make, year, model of their vehicle? -is their wardrobe from Goodwill, or Niemen Marcus? This is a serious error. The story is told of the founder of Walmart, Sam Walton – he would go into one of his stores in his bib overalls and few had any idea he was the person signing their paychecks. Proverbs 13:7 “One person pretends to be rich but has nothing; another pretends to be poor but has abundant wealth.”
• Another trap we fall into is assuming individuals have full ownership of their perceived wealth. My dad taught me this at a young age, I was in my upper years of high school and we were driving about 3 miles west of our house; I made a comment by pointing out this particular farm family had a lovely farmstead. My dad responded by saying, “Is it theirs, or the banks?” I doubt I took the conversation further. My dad wasn’t “trash talking” the neighbor and predicting financial doom. He was simply saying, we don’t know how much is debt capital and how much is equity capital.
Jan:
• Another thing we see is a tendency to think discussing wealth and money is taboo. We’ve had two young couples from Lakeside get married over the past six months, we’d certainly encourage them to discuss with their parents & other senior advisors, about what lessons they have learned about finances through their marriage.
• Similarly, but slightly different – there is a tendency for one person in a marriage to be the “money guru.” When instead, both spouses need to fully understand their finances – where each account is invested, the website, passwords, & any person of contact. Too often, with the passing of one spouse, the other spouse is left clueless as to the household’s finances.
Jon: In Ecclesiastes 2 Solomon lists all the things he's “amassed.” It’s quite an impressive list, from a worldly perspective. Should Christians “amass" wealth? How much is enough? How much is too much? When does it become a spiritual hazard?
Rick:
• “Amass” does have a negative connotation. It implies accumulating for accumulation’s sake, for selfish reasons.
• We prefer the Biblical idea of “Saving to Provide." In Proverbs 13:21-22 Solomon says, “Trouble pursues the sinner, but the righteous are rewarded with good things. A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.” So, we are called to not only provide for our immediate family, but generationally.
Jan:
• There is something even greater that inspires our “saving.” Saving enables us to serve God. 2 Corinthians 9:10-11 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 enriched in every way so that you can be generous on every occasion, and through us your generosity will result in thanksgiving to God.” We are called to save in order to meet the needs of others – our church, church missions, disaster relief, local organizations that provide food and shelter to our community.
Jon: In Ecclesiastes 2:18-19, Solomon laments what happens to wealth after a person dies. He says in part, “I hated all my work that I labored at under the sun because I must leave it to the one who comes after me. And who knows whether he will be wise or a fool?” Life is so fleeting, how do we pass the baton on? What is a good exit strategy?
Rick:
• Solomon wonders “who will come after me– who gets my toys, when I’m gone?” There are a lot of practical things we can do to ensure wealth is handled wisely after our passing. Following second service today, there is a seminar & lunch to discuss estate planning. It is important to meet with an attorney to prepare a will, designate a guardian for any minor children, and prepare a power of attorney for health care and a power of attorney for finances. At some point, it probably makes since to add a payable upon death provision to your checking & savings accounts. As an alternative, there may be a need to add an adult child to a parent’s account in order that funds are accessible, in the event the parent can no longer write checks or is challenged with dementia or Alzheimer’s. Also having your funeral arrangements decided and paid for is a great relief to those left behind. This is likely a better alternative to just adding your child or heir as a party to your checking and savings.
Jan:
• Beyond the technical aspect, you need to have a good understanding of your heirs and transparency about your wishes, with your heirs. In essence, the passing of your wealth should not destroy an heir or divide your heirs or children. If an heir has a dependency issue or is a poor steward, extra thought should be given as to how the inheritance might actually be detrimental and what can be done to avoid this. You should also go to great links to discuss your estate plan with your heirs and discuss any inequities – don’t permit your estate plan to be a wedge between your heirs.
Jon: In Ecclesiastes 7:7, Solomon says “Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: Wisdom preserves those who have it.” I take that verse to say that money isn't enough to put a roof over our head, and shelter us from harm. We most need wisdom! Is there anything else you guys would like to say to our congregation about regarding wise stewardship of finances?
Rick:
• Sure:
Make tithing a part of your life. I learned this from my parents, starting with my paper route. And, we have made this a priority of our marriage. I Timothy 6:17 says, “Instruct those who are rich in the present age
not to be arrogant or to set their hope on the uncertainty of wealth, but on God, who richly provides us with all things to enjoy.” Wealth, for wealth’s sake, should not be our pursuit. God doesn’t need our tithe, he wants our heart & our obedience. There are many scriptures that vividly demonstrate God’s desire to generously provide, reward, and supply His faithful followers (Proverbs 3:9-10, Luke 6:38, Malachi 3:8-10). In Malachi 3:8-10, it says, “Will a man rob God? Yet you are robbing me! How do we rob you? you ask. By not making the payments of the tenth and the contributions. You are suffering under a curse, yet you – the whole nation – are still robbing me. Bring the full tenth into the storehouse so that there may be food in my house. Test me in this way, says the Lord of Armies. See if I will not open the floodgates of heaven & pour out a blessing for you without measure.” Wow, what a vivid example – heaven’s floodgates can’t contain God’s blessings for us. And, how many times in scripture does God say “test me in this way”? He’s basically saying, “Bring it on” – let me show you my provisions for you.
Jan:
• There is a saying, tithe 10%, save 15%, and live on the rest. This is a great principle to live by. So how do you save? Saving needs to be automatic – you have to take it off the table, first. Don’t save what is left after spending; instead, spend what is left after tithing & saving. I realize it’s easier said than done, but - you need to live below your means – which means you can’t carry a credit card balance. When you save, take advantage of the tax code and any employer matching. For example, participate in any employer 401K or Roth 401K, flexible spending account for health care or flexible spending account for child care.
Rick:
• Wealth is created by understanding a financial statement. Other than marrying into it, or inheriting it, there are 3 ways to increase net worth or wealth: 1) put more money into the financial statement (live below your means and save), 2) purchase assets that increase in value vs. depreciating assets, 3) pay down debt quickly. Unfortunately, as a society we do the reverse, 1) don’t save, 2) we purchase assets that decrease in value, 3) we maintain credit card & vehicle debt.
• So, what asset should you buy that will increase in value? Many people will tell you “buy the biggest house you can afford.” This is poor advice, especially locally. Instead, buy a nice house in a safe neighborhood. As a society, we don’t want homes to increase much. The reason being, our children will be priced out of housing. We have been back in Springfield for 37 years – our house has an annualized increase in value of a staggering 2% (& this is after a new roof, fence, & remodeling). So back to the question, if not a house – then what asset increases in value? Corporate stocks – and no you don’t need to be a stock picker – just purchase a mutual fund that mirrors the S&P 500 (it holds the 500 largest market weighted stocks). Over the past 50 years, the annualized return for the S&P 500, with dividends reinvested, is approximately 12%. So again, if we would have put more cash flow into a larger mortgage or house, we would have a missed opportunity cost of 10% (12%, less 2%).
Jan:
• Take some time to educate yourself about personal finances & taxes. We strongly encourage families to take Financial Peace, offered by the church. Read Proverbs, read the book The Millionaire Next Door, books by Dave Ramsey, & the book Take God at His Word – Experience the Power of Giving, by Dr. Kregg Hood.
• I mentioned you want to have a basic knowledge of taxes. If you do, you realize there are three “buckets”: 1) assets that are taxed, like a savings account, 2) assets that are tax-deferred, like an IRA or 401k, 3) assets that are tax free, like a Roth 401K. The more you can save in the tax deferred, or better yet, the tax free “bucket,” the more wealth you create.
Rick:
• Proverbs 22:7, states, “The rich rule over the poor, and the borrower is slave to the lender.” From our professional experience, this is definitely true. As a society, we quickly add lenders to our financial payroll. Debt becomes the quicksand that hinders wealth creation and generosity. Households with credit card debt, vehicle debt, and a large mortgage, have severally limited their opportunity to be generous and to save. Therefore, it is best to limit debt to only a moderate home mortgage.
Jon, we’ve enjoyed the opportunity to share with you today and if anyone has any questions, they are more than welcome to visit with us.