Do this + Lesson 3 - adjustments for volatility, and life stages.
Lesson 1 due yesterday. Lesson 3 due Monday before class.
Financial independence planning – an inverse relation.
EQ 04/29 – What is the relationship between Time, Money and Rate in financial investing. Which would you value most?
Note – you will do all these calculations on the same spreadsheet, so you can easily copy and paste and use formulas.
Lesson 1
Find:
- Desired annual income.
- Total amount needed.
- Make 30 year plan.
o i =p * r * t or Ammount = p + (p*r)
o the first year at 10% you can make p *1.10 = Amount 1.
o Use Amount 1 as "p" to find Amount2 >> which would be how much you've accumulated by the second year.
o Do this patterns for 30 years.
Read
Matthew 6:19-21
Treasures in Heaven
19 "Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. 20 But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also.
1- 1- Look at your 30 year plan. How much do you have to have stored up to be financially independent? Should you really do this plan and save all that money? Answer this question.
Read:
Matthew 25:14-30
New International Version (NIV)
The Parable of the Bags of Gold
14 "Again, it will be like a man going on a journey, who called his servants and entrusted his wealth to them. 15 To one he gave five bags of gold, to another two bags, and to another one bag,[a] each according to his ability. Then he went on his journey. 16 The man who had received five bags of gold went at once and put his money to work and gained five bags more. 17 So also, the one with two bags of gold gained two more. 18 But the man who had received one bag went off, dug a hole in the ground and hid his master's money.
19 "After a long time the master of those servants returned and settled accounts with them. 20 The man who had received five bags of gold brought the other five. 'Master,' he said, 'you entrusted me with five bags of gold. See, I have gained five more.'
21 "His master replied, 'Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master's happiness!'
22 "The man with two bags of gold also came. 'Master,' he said, 'you entrusted me with two bags of gold; see, I have gained two more.'
23 "His master replied, 'Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master's happiness!'
24 "Then the man who had received one bag of gold came. 'Master,' he said, 'I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. 25 So I was afraid and went out and hid your gold in the ground. See, here is what belongs to you.'
26 "His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? 27 Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.
28 "'So take the bag of gold from him and give it to the one who has ten bags. 29 For whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have will be taken from them. 30 And throw that worthless servant outside, into the darkness, where there will be weeping and gnashing of teeth.'
Footnotes:
Matthew 25:15 Greek five talents … two talents … one talent; also throughout this parable; a talent was worth about 20 years of a day laborer's wage.
2- 2- Does this passage sound contradicting to the previous passage and answer you gave on the previous question? How?
3- 3- How can you honestly follow both of these Biblical principles? How can you not store up treasures on Earth and be a good steward of what God has entrusted you?
4- 4- If your investments goes down 5%, how much does it have to go back up for you to have your original principal again? What if it goes down 10%, 20%, 30% and 50%. Make a chart.
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