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30 Years of Faith-based Investing With Chad Horning

FaithFi: Faith & Finance | Mar 4, 2024

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Show Notes

1 Corinthians 10:31: “So, whether you eat or drink, or whatever you do, do all to the glory of God.” Chad Horning is the president of Praxis Mutual Funds, an underwriter of this program and one of the oldest faith-based mutual funds in the country. 

 

WHAT DOES "FAITH BASED INVESTING" MEAN TO PRAXIS?

At Praxis, Faith Based Investing is all about letting your faith guide your investment decisions. It's not just about smart money moves; it's about aligning those moves with your Christian principles. This approach is key for those looking to ensure their investments reflect their values.

  • The idea here is to let your faith lead the way in how you invest.
  • Praxis champions the integration of faith and finances, aiming for your investments to mirror your values.
  • Essentially, the goal is to align your investments with your Christian values seamlessly.

 

HOW HAS FAITH BASED INVESTING EVOLVED OVER 30 YEARS?

Initially, it focused on avoiding investments in industries that conflicted with Christian ethics. Now, it's grown to include proactive impact through investments, like engaging in shareholder advocacy and investing in community projects. This evolution marks a shift from merely avoiding harm to actively doing good.

  • It started with steering clear of certain sectors.
  • Today, it’s about positive actions, making a real impact through where you invest.
  • Activities like international microfinance and expanding affordable housing exemplify this proactive stance.

 

WHAT'S THIS "DISTANCE FROM THE ACTUAL BUSINESS" CONCEPT?

This refers to the modern form of investing through stocks and mutual funds, where direct involvement in business operations isn't the norm. Despite this, the foundational Christian command to love one's neighbor as oneself still applies, guiding investors to choose businesses that uphold these values, even from afar.

  • Modern investing often means less direct involvement with businesses.
  • The principle of loving your neighbor still informs investment choices.
  • This wisdom encourages investment in businesses that respect and uphold neighborly love.

 

HOW HAVE FAITH BASED INVESTORS PERFORMED OVER THE YEARS?

You might wonder if prioritizing values over returns means sacrificing financial performance. Fortunately, the landscape has evolved significantly, offering a broad spectrum of faith-oriented investment options that don't compromise on returns. This growth means investors can remain true to their values without sacrificing financial success.

  • Prioritizing values doesn't mean sacrificing returns.
  • The variety of faith-oriented investment options has expanded significantly.
  • It’s entirely possible to support your family’s financial goals while making a positive impact.

 

WHAT'S ON THE HORIZON FOR FAITH BASED INVESTORS?

Looking forward, the industry is set to continue its evolution, offering an even wider range of products that cater to diverse Christian values and expressions. This expansion means investors can expect more opportunities to invest in ways that truly reflect their faith, from supporting ethical businesses to focusing on social justice.

  • Expect more diverse faith-based investment products in the future.
  • A convergence of interests between faith-based and traditional investors is likely, focusing on ethical business practices.
  • The future promises a broad spectrum of options catering to various expressions of Christian faith.

 

ANY WORDS OF ENCOURAGEMENT FOR THOSE CONSIDERING FAITH BASED INVESTING?

Faith Based Investing is a viable and impactful approach that you can adopt. When meeting with your financial advisor, consider discussing how to integrate your faith with your investment portfolio. The increasing number of advisors familiar with this approach is a positive trend, offering more support for those looking to invest according to their values.

  • Faith Based Investing is not only possible but impactful.
  • Discuss integrating faith into your investment strategy with your financial advisor.
  • The growing familiarity of advisors with Faith Based Investing means more support for aligning your investments with your values.

 

ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:

  • I'm retiring soon and noticed my Social Security projection doesn't include earnings for 2023; will filing for Social Security before filing my 2023 taxes affect my monthly check amount?
  • After inheriting some money, I'm looking for advice on how to invest it or put it in a safe spot to help it grow, considering we're already doing well with our current finances and have an emergency fund.

 

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
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