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S. Truett Cathey, "It Was My Pleasure..."

9/8/2014

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Today, as I reflect on the life and death of S. Truett Cathey, founder of Chick-Fil-A, I am reminded why I have chosen to do business in an entirely unique, almost un-American, way. I am also encouraged by the countless number of people who are choosing to follow in Mr. Cathey's footsteps.

I am thankful for the life of Mr. Cathey, for his unyielding pursuit of being in business without becoming like the business world. His commitment to do business with the highest biblical standards was, and is, rare in the American economy. So many forget that God wants us to be Christian in our business endeavors too. Not, Mr. Cathey. 

Most American food chains would tell you that they couldn't survive without Sunday business, yet Chick-Fil-A does. I am told that virtually every mall lease requires all mall stores/vendors to be open on Sundays. Malls across America have consistently made an exception for Chick-Fil-A. Why? Because Chick-Fil-A has consistently demonstrated that they could produce more business in six days than the mall's other stores could in seven. God blesses obedience to His word. God has obviously blessed Chick-Fil-A.

So, what does a Godly business look like? First, it is courageous - daring to be different. It treats it's employees fairly and maintains high standards for their conduct and appearance. It is kind, serving each and every customer and vendor, with respect, courtesy and joy. It maintains the highest standards of quality for both it's product and it's service. It gives back to the community around it, in purposeful and meaningful ways. And, most importantly, it reflects Godly character to a lost world, pointing people to Him.

I am told by those who knew Mr. Cathey, that he consistently modeled Christian character in both his personal and business life. Can a business be Christian? We will leave that up to you to decide, but nobody can argue that Mr. Cathey's business didn't reflect his belief in God.

In the early hours of this morning, S. Truett Cathey heard his Master say, "Well done My good and faithful servant." I can just imagine Mr. Cathey's response... "It was my pleasure." 

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One Semi-Politician's Comments on Values...

8/13/2014

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Dr. Ben Carson is being courted as a potential GOP candidate for President in 2016. This is not intended as an endorsement of him as a candidate because there simply is not enough information to form such an opinion at this time. This is, however, a close look at a statement Dr. Carson recently made regarding the source of his strength.

Dr. Carson was asked, "From where do you expect to draw the most support." His answer was candid and priceless, "Honestly, I don't care." Of course, his answer drew a round of laughter from The National Press Club, to whom he was speaking, but he followed that statement by saying, "I'm serious. As long as I have the support of God, that's what matters to me." It would appear Dr. Carson is more concerned about what God thinks of him than he is the image he creates with the media, which is in and of itself a value.

Tying in to yesterday's blog post, Dr. Carson went on to say that the reason America rose to such a prominent place in the world as quickly as it did was because we live by Godly principles such as, "loving your fellow man, caring about your neighbor, developing your God-given talents to your utmost so that you become valuable to the people around you, and of having values and principles that govern your life." Carson went on to say that if we can regain those attributes, we will truly be One Nation.

Over the last 20-30 years, we've been told that we can't exercise our beliefs and values in the public square. Furthermore, it would appear, based on results, that the current system isn't working. My question for you as readers is, would a return to these values return America to the right track? If so, how do we begin to change the culture of business, government, education, and more to accept values and beliefs that are right and good? That isn't intended as a rhetorical question, how do we do it? What steps need to occur in order to get us back on track?

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Is Gold Set to Crash? The Answer...

9/28/2011

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As gold has soared, there has been much speculation as to when the gold bubble will burst.  And, with its recent slide, many wonder if its already bursting. 

Is gold overvalued?  Taking into consideration its historic pricing in inflation-adjusted dollars, gold is actually nowhere near its previous highs.  At its inflation-adjusted peak in 1980, gold was trading at about $850/ounce.  Based on today’s prices, one would assume that gold is trading at multiples over its historic highs.  In reality, gold would have to reach almost $2,420/ounce to match its inflation-adjusted 1980 high.  

With such widespread uncertainty in the world economy and a deepening concern over the stability of the world’s major currencies, investors are turning to gold as a safe haven.  As a result, gold's prices have skyrocketed.  That being said, is there really any reason for investors to feel any better about the world markets and economy?  In fact, the current pullback is likely no more than a brief respite before the next shoe drops on the economic news front.

Since President Nixon removed the US Dollar (USD) from the gold standard in 1971, our currency has been manipulated by the Federal Reserve to the point of near worthlessness.  Over the 24 months proceeding September 2011, the USD lost as much as 31% against the currencies of Japan, Switzerland, Australia and Canada, and lost more than 20% to the much maligned Euro in the last 18 months alone.  There's no realistic reason to believe this devaluing isn't going to continue.

With the USD and other major currencies in a tailspin, investors are turning to gold as a trusted store of value and the increased demand has driven its prices northward. 

So, will gold's trend continue?  Adjusted for inflation, it would appear there is more room for growth.  Any significant trend downward would depend largely on the world’s economic powers exercising good stewardship.  Given their track record, I’d bet on gold!
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Solutions to Health Insurance Cost

9/8/2011

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Guest Blogger: Nick Smith [email protected]

There’s one thing no one is telling you about our current healthcare problems…
Whether you’re working for a large corporation, running a small business, or happen to be unemployed, there’s a good chance you are paying more for healthcare than you should. 

So what is the solution?  I could get really boring and impress you with a bunch of insurance jargon, but instead I’ll sum it up this way.  Over the last 10 years, Congress has passed several laws and tax incentives that could easily decrease your out-of-pocket healthcare expenses by $2,000 to $8,000 annually.  For a variety of reasons, most health insurance agents have not taken the time to adequately understand these changes.

We believe that the key to fighting extreme health insurance costs is YOU, the American consumer, who throughout history has been able to adapt and overcome all types of obstacles. We believe that with the right tools and knowledge everybody can play a role in busting up the currently broken system. 

As we launch new consumer health insurance solutions, we have made some commitments.  We are dedicated to busting up the “old school” approach of the greedy, commission-focused insurance agent. We will team with businesses and individuals, providing them with the knowledge and innovative resources they need.  Together, we will become the solution to out-of-control health insurance costs.
                                                                                                                                                                                                   
ABOUT NICK: Nick Smith, founder of Smith Health, has spent much time and energy learning the nuances of the health insurance industry, as well as the intricacies of the laws and IRS regulations that govern it.  Nick’s innovative solutions for driving down costs aren’t winning many fans in the insurance industry, because they put the client’s needs ahead of the agent’s.  Discover how Nick can help you control the cost of your healthcare.

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More Games at the FDIC...

6/23/2011

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It appears the FDIC is playing games again...

In this recent Press Release from the FDIC, Director Sheila Bair pointedly touts the banking industry's strong profitability in the first quarter of 2011.  She then goes on to explain the reason banks were showing those profits.

Bair reported that bank profits for the quarter were $29 billion, or $11.6 billion over the same period a year earlier.  Sounds pretty strong, right?  Here is Bair's explanation for the spike in profitability.

"The industry shows continuing signs of improvement, though there is a limit to how far reductions in loan-loss provisions can boost industry earnings."

How did they do it?  A reduction in their loan-loss requirements - that is the  amount of money banks set aside to cover bad loans - from $51.6 billion in the first quarter of 2010 to just $20.7 billion - a decrease of $30.9 billion.  This decrease in loan-loss provisions returns banks to pre-2008 levels.  Is anybody honestly naive enough to believe loan defaults are back at 2007 levels?

ALL of the industry's first quarter 2011 profitability is directly attributable to this reduction in loan-loss provisions.  In fact, absent this balance sheet gimic, the industry would have lost almost $2 billion for the quarter - compared to a $17.4 billion profit a year ago.  Actual revenue fell by 3.2%.  This marks just the second time in 27 years that bank revenues have seen a decrease.

What's worse, each of those banks now face increased risk, with less than half the reserve to cover those losses.  As defaults pick up again, banks will have significantly less in reserve to cover those losses, creating an even greater rate of bank failure and... you guessed it - more bailouts.

More from the FDIC

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    Stephen R. Arnold
                                E-Mail

    About the author...

    Stephen Arnold is the Founder of Storehouse Advisory Group, a Tennessee-based financial planning and investment advisory firm specializing in Biblically-Responsible Investing. 

    Storehouse Advisory Group is registered with the Securities Division of the Tennessee Department of Commerce and Insurance.

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