April, 2012
Do we play Bible Hopscotch without realizing it. (As a way to avoid confronting the need to change)

One aspect of spiritual maturity is recognizing the difference between spiritual promises and proverbs or probabilities. Yes there is a thing some scholars call a “tension” within which we must live our life by faith.  

We live between the “tension” of the New Testament with Christ telling his disciples to set out without anything in their hands, and “Give us today our daily bread”. Does Jesus’ prayer example mean I should think only about today’s bread? Or are we to live also accepting King Solomon’s admonition to plan ahead?  Being a New Testament believer and “knowing” that God will provide for us may lead to behaviour Solomon would liken to a “sluggard” or fool. God created all the laws of the universe including the laws of economics and human nature. Our job is to discover them and properly use them. A temporary exemption to those laws is called a miracle. But do we have any right to assume a miracle, to meet our future financial needs, will occur when we need it?

There is a financial winter coming in our lives. One of the laws God created is that as our bodies deteriorate, earning an income is increasingly difficult. Sooner or later, we have to rely on what we have saved and other income sources.

Another law is that we will pass away meaning, if married, very likely one of us, will pass away before the other. Compounding that sad loss, the one left behind will face a great reduction in cash flow without a similar reduction in expenses. Both private pensions and government assistance are reduced or eliminated at that point. But the survivor will pay the same for taxes on their home, and about the same for heat, light and car expenses.

I encourage those over fifty to do two careful and honest reviews assuming one of you were to pass away this month and 10 years from now. If there is a shortfall, consider how you will cope. If not, there are many possibilities to consider including permanent life insurance. Organizations like SCA can be designated a partial beneficiary or secondary beneficiary if both pass away simultaneously.

When I get to heaven, I can no more tell God of my disappointment with Him for me running out of gasoline if I ignored my gas gauge, then I can complain about being impoverished in the future if I am spending now what He wants me to be setting aside for the future.  While we cannot predict the future, if we plan around what we do know, we satisfy the wisdom of both the old and new testaments.  I would be happy to chat with you concerning your needs, and you ask for me through the SCA office by calling toll-free 1.877.474.2689.

Sincerely,
Keith Neely
SCA Planned Giving

Special Note from Keith Neely – March 2012

Dear Friends of SCA:

The Planned Giving Department of SCA recognizes that helping people do better financially, can have great benefits for assisting Kingdom work.  One way of doing this is to educate supporters as to the government legislated financial benefits of life insurance financial products over similar bank ones. For example, funds entrusted to a life insurance company enjoy some guarantees and receive special tax consideration that banks are not able to offer in accordance with Canadian legislation. One important one: An organization such as SCA can be named as a beneficiary.  If you pass away, the funds go directly to your heirs bypassing probate and avoiding probate fees. This means heirs receive the funds in a couple weeks instead of a year or so and using an example of $200,000 of GICs, $2,500 of probate fees would be avoided. Yearly interest is also eligible for the pension credit if you are 65 or older.

Remembering that we are stewards, not owners of “our” money, many Christians avoid the stock market.  But there is a reasonable growth alternative.  According to the Dex Corporate Index, $100,000 invested in the stock market in 1982 would be worth $630,180 more if it were invested in the asset category called corporate bonds.  And, unlike the peaks and valleys of a stock market chart, bond growth has been pretty much level losing ground only in 2 years of the last 20 — 4% one year and 1% loss the other.   In contrast, the stock market lost 33% in 2008 alone. Unlike the value of a stock which can be driven up or down based on rumours or fear, a corporate bond consist of a promise in writing.  So why did we ever start investing in the stock market? In the past, individual investors were not able to easily acquire corporate bonds. Now that has changed through corporate bond funds.

Specifically, I found one corporate bond fund in particular that stands head and shoulders above the other 273 funds as rated by an outside organization. The fund purchased through a life broker contains guarantees that upon your death the principal amount, plus specific locked-in gains will remain 100% intact. You are able to invest through your preferred financial advisor or me. There is no guarantee for future results but the last 7 years, after fees were deducted, it has grown an average of 6.06 % per year. (2004-2010)

Please feel free to ask me to email you or mail you the exact fund information for you and your advisor to use.

Age 65 and need to build your own Pension?

One hundred thousand dollars in a savings account at 0% interest costs the owner about $500 month in lost purchasing power compared to obtaining 6% growth.  The same money in a fund that pays on average 6% a year for ten years would grow to $180,000. (Not guaranteed.)  For someone who is male and will be age 75 in 10 years, that $180,000 could be turned into an annuity of $1500 that is guaranteed income per month, for the rest of his/her life. (Caution is needed here as I am using today’s quotes to project 10 years.)  
Again, we are here to help you. Feel free to ask for specifics that you can take to your advisor.  Please contact the SCA Office and ask to have me give you a call, or alternatively reach me at the number below.  – I can help you, and you can help SCA International.

Sincerely,

B. Keith Neely, Investment consultant, Life Broker,

Professional Liability Insurance with Lloyds Underwriters, Regulated and licensed with the Financial Services Commission of Ontario #10114172.         

416-464-0445

What is “planned giving” and how does it impact a believer?

The “world” tells us almost every minute of every day through advertising to live for ourselves and live for the moment: There is no more to life than that. Against that constant barrage are the words, from scripture, usually from Jesus’ teaching reinforced by the apostle Paul that this world is not our real home.

Scripture very clearly describes that not only will our earthly possessions loose their value, but that our permanent home, heaven, can be enhanced by what we “send ahead” by way of our donations to the work of God on earth.

Deferment of earthly pleasures keeping our Heavenly home in mind is good “stewardship” of one’s possessions.

The phrase “Planned Giving” refers to taking steps now to establish a gift that will be given to our designated charity(ies) when we pass away. It is then that, depending on the needs of those we have left behind, most of us are able, unlike while we’re still living, to send far more ahead to a permanent heavenly reward than we are able to at present. As well, charitable receipt laws (under the income tax act) allow your gift(s) after you die to offset final income taxes otherwise payable.

While Planned Giving can get complicated because of the myriad of options, it can also be as simple, and as cost-free as calling your life insurance agent and asking him/her to make your preferred charity(ies) a partial or total beneficiary of your policy.

Planned Giving really needs to start in our heart. Once we have prayerfully realized we want to do all we can for the Kingdom and a particular charity through planned giving, we should contact that charity for an initial phone interview.

Here at SCA our volunteer planned giving person, Keith Neely, uses the phrase “Instant Planned Giving” to refer to the fact that allowing him to help you make some necessary and beneficial changes to your financial affairs at any age and stage of your life through life insurance products from an actual life insurance company, creates an ‘immediate gift’ to SCA by covering the cost of our “SCA Planned Giving department.”   A big savings to us at SCA in terms of expenses and still the full 100% of your future planned gift goes directly to SCA.

For example, one of the things that can be done now is to consider how an insurance company can provide you several advantages over a bank (including higher interest rates and a $2,000 pension credit for those 65+) when it comes to GIC’s.

How does “planned giving” help God’s Kingdom, SCA and other missions?

Planned gifts allow ministries to prepare for tomorrow and for future growth. Planned giving also provides financial stability to a ministry.  Knowing gifts are ‘coming down the road’ helps a ministry decide whether or not to meet a current need that arises or take advantage of a new ministry opportunity.  It also helps our staff realize that through His people, God will continue to provide for this ministry. It also helps us keep good staff through difficult times.

Sometimes planned giving gifts that provide an infusion of cash over and above the norm, at special times, allow us to do something (e.g., build or restore a deteriorating building at a camp) or reach out in a new way to those we want to serve that so far was only on our “wish list” or “in our dreams for the future”.   Or, planned gifts can provide for new computers, new promotional material such as a video, etc.  The list is endless.  But always, all money whether ‘current’ or ‘planned’ will be used to further the mandate of the mission and to reach directly or indirectly men, women, and children for Jesus Christ.

What can I give to SCA besides money or financial products?

Please contact us about anything you wish to give us. We can promise (because God does) a heavenly reward for your gift given with love and a pure heart, but depending on specifies, we cannot necessarily provide a charitable income tax receipt. If you are not sure, give us a call and we’ll look into it.  Recently, our President had a women offer to give us her deceased father’s heavy electrical tools.  Growing missions can use such things.  Others may want to make an extra apartment or second home available to the mission for use by the mission.  Stocks or shares in companies are also great assets to pass on to missions (for both the donor and the mission).  The list is endless.  Just ask us.

Can my corporation help with planned giving?

Absolutely.  Corporations or businesses have the opportunity to be involved in planned giving.  Any retained earnings as well as capital gains create tax problems that can be improved through permanent life insurance products and a charitable receipt.  Our Planned Giving Officer’s associates include advanced tax planning specialists to ensure maximum utilization of subsection 89(1) of the Canadian income tax act. As well, as per the concept of “Instant” planned giving, you are helping right now, not just in the future.

How can a “planned giving” review help you now and your family or estate, later?

Peace of mind, now. Although we enjoy the prospect of heaven, we often subconsciously (or consciously) choose to neglect planning now for giving later when we are promoted to heaven.  The result of such neglect can be financial chaos: If both you and your spouse are gone, all your earthly processions/investments are considered “sold” by the income tax act and usually as a result, some great amounts of taxes would need to be paid. As well, depending on your estate, family relations can be permanently damaged. Conflicting present expectations by your heirs that you are reluctant to resolve/clarify now will not be improved in your absence. We may be able to give you now some simple solutions for both taking care of your heirs and helping the Lord’s work after you’re gone.

Depending on where you are in the journey of life, you can help map the future: Looking at the lifestyle of your heirs, what would they do with their share of your estate? Will they use it to continue to support your preferred charity? Will they use it to build other aspects of the Kingdom? Will it be used for their pleasure only?

Our volunteer Planned Giving Officer encourages families to use financial products that function outside the will (“last will and testament”) so that your wishes can be carried out quickly, discreetly and without the added fees and delays of probate or the need to change your will. Here’s an example: One of your heirs may have been far kinder to you in word and deed than the others. By all means honour that person but why not do it in a way that will not allow the others to be resentful. This can be arranged without legal fees and without adjustment to your will. Or, you may not want your heirs to know how much you have given to charity or which charities. Again, this can be arranged if it is done outside your will through life-insurance company sourced financial products. (Just like banks, they have a variety of products but their products enjoy special privileges.) In contrast, bank-sourced products such as GIC’s and savings accounts go into your estate and are part of your will, which is a public document. Your affairs can be structured so that a bare minimum amount actually goes through your will and probate, if you choose.

Ideally one should do this planning as early in life as possible so that financial products such as life insurance can be affordably established to help equalize the share of your heirs (e.g. when only one heir is getting the family cottage) and to handle tax matters like capital gains. Did you know that permanent life insurance can be shown to be one of today’s best guaranteed “returns on investment” (ROI)? All your money comes back with interest. Naming SCA as the partial or full beneficiary will help offset or totally offset final taxes that would otherwise come from the estate. As an example: A 60 year old male, investing about $200 a month through a permanent life insurance policy will leave $100,000 and if he passes away at age 85, such investment will have provided an equivalent rate of return of about 4.4% after taxes.  And yes, there is a way to enjoy that investment money with his spouse even before he passes away.

Please prayerfully consider contacting us because a properly set up estate will increase the prospects of your heirs/family continuing to love and enjoy each other while increasing your heavenly reward. You will enjoy peace of mind after you have reviewed your plans and acted on what you have prayerfully considered.

Who helps SCA with “planned giving” initiatives?

If you would like some help in setting up your planned giving, or simply have a question about planned giving, please contact us. The role of our Planned Giving Officer Keith Neely is to listen to your wishes and draw in the necessary expertise, including your own current experts, such as a lawyer and accountant, as necessary, to meet your needs and answer your questions.

Please contact us as SCA today for a quote:

Phone: 1-877-474-2689
Email: keith@scainternational.org
Fax: 905-868-8007

Differences in Costs for Life Insurance Product Example

Almost everyone is paying too much. As a registered broker, I can do the shopping for you. Look at the difference at what you could pay between the highest and lowest insurance rate for identical protection and virtually the same product:

Rates are LOWER for females and especially healthy males.
These figures are based on 2011 data.