Larry Burkett - The Burkett & Blue Definitive Guide to Securing Wealth to Last: Money Essentials for the Second Half of Life

This book is designed to provide readers with a general overview of personal financial strategies. It is not designed to take the place of advice from a qualified financial planner or other professionals. Although legal, tax, accounting, investment, real estate, and similar issues addressed by this book have been checked with sources believed to be reliable, some material may be affected by changes in the laws and/or interpretation of laws since the manuscript for this book was completed. Therefore, the accuracy and completeness of the information in this book and the opinions expressed are not guaranteed to produce particular results. The strategies outlined in this book may not be suitable for every individual. If legal, accounting, tax, investment, real estate, or other expert advice is needed or appropriate, the reader is strongly encouraged to obtain the services of a professional expert.

ACKNOWLEDGMENTS

I specificially want to acknowledge and thank Larry Burkett for asking me to participate with him in this book. This book would never have happened apart from Larry's vision to see it happen. He has had more impact on the kingdom of Christ than almost anyone else in our generation and it is a privilege to coauthor a book with him. I, of course, also want to acknowledge Jeremy White for his ability to pull together the different thinking and writing styles that Larry and I possess into a book that communicates clearly the message that we desire to communicate. Lastly, I want to acknowledge my assistant, Sherry Lantis, who has kept me on track with so many things over so many years, including this book.

Ron Blue

My contribution to this book could never have happened without the help of others. Foremost, I want to thank the Lord for enabling me yet again to glean insights from the inexhaustible riches of His Word. And I want to thank Ron Blue and Jeremy White for lending their wisdom and technical expertise to this project. I am also grateful for the invaluable help provided by Deb Smith, my personal assistant, and Adeline Griffith, my editor.

Larry Burkett

Two of the pioneers in applying common sense, Biblical principles, and practical wisdom to personal finances are Larry Burkett and Ron Blue. They both inspired me in the 1980's to integrate the wisdom from the Bible to my professional background. In addition, to their teaching, my parents and grandparents lived out the practical, financial wisdom of living within their means, minimizing debt, and giving. I would also like to thank a great support team: Pam Estes, Sharon White, Chip Thomas, and Kris White.

Jeremy White, CPA

CONTENTS

INTRODUCTION

OR

You should have two financial goals in life: to make a little money first, and then to make a little money last.
UNKNOWN

Courage is not the absence of fear, but rather the judgment that something else is more important than fear.
AMBROSE REDMOON

Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy. Instruct them to do good, to be rich in good works, to be generous and ready to share, storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.
1 TIMOTHY 6:17-19

O ver the last thirty years, we have written many financial books between the two of us. They focus on the biblical principles of managing money. Because these biblical principles are God's timeless principles, they apply to all ages and stages of life.

So why write another financial book? Haven't we said it all before? We grappled with these questions because it is no easy chore to write. Believe us, we have other activities we prefer more than writingjust as you likely have other interests besides reading financial books!

Here is what we have observed during the last few years. In the United States of America, the most prosperous country in the world by any measure, we see financial fear. We see more fear in the age group of fifty and over. On a positive note we see more potential for God's Kingdom in this same age group. Our goal with this book is to help people with their fear, their worry, and their stewardship potential.

We regularly hear real-life examples from callers to Larry's Money Matters radio programs as well as from attendees at Ron's investment seminars. They show deep financial concern.

• A fifty-four-year-old manager at a Fortune 500 company has a recurring ulcer when opening his 401(k) statements each quarter. His 401(k), made up of company stock and growth mutual funds, has plummeted from $300,000 to $140,000. He figures he will have to work five years longer than planned.
• A retired couple is not as free as they had expected. They realize they are sandwiched between generations needing help. Their aging parents require in-home care and will use up all their resources if admitted to a nursing home. Their adult children need financial help after recent divorces.
• A married fifty-nine-year-old woman is anxious about debt. Previously debt-free, she and her husband borrowed $100,000 against their house to invest in the rising stock market in early 2000. He was going to make a killing in the market and retire sooner. Their stock portfolio is down to $40,000 while their mortgage is more than twice that much.
• A seventy-two-year-old widow has seen her income drop as interest rates drop on her bank certificates of deposits. She depends on the interest income to make ends meet. Now she is dipping into her principal and is afraid she will outlive her money.

These examples are why we write, why we speak, why we teach, and why we record radio broadcasts. We want to help.

Recent surveys show that help is needed. Seventy-four percent of baby boomers believe they are financially prepared for retirement. But 59 percent expect to carry debt of some form into retirement, and 46 percent have saved less than $50,000 towards retirement. The perception looks better than reality.