The World of Investing

Life is full of horizons. Some have to do with relationships, some with work, some with parenting, and some with financial decisions.

Investopedia has this to say about a financial horizon: “An investment time horizon is the period you hold an investment to reach specific financial goals. Whether you’re saving for a short-term expense, a medium-term milestone, or a long-term objective, understanding your investment time horizon helps you choose the best strategies. Learn the differences among short, medium, and long-term investments and optimize your portfolio to align with your financial targets.” – Investopedia

While this may be a good definition, it doesn’t encompass or capture some things about life that many investors ignore. The first is that you might not have a horizon that exceeds today. The second is that it probably doesn’t factor into the equation the things of eternity. Perhaps we would all do well to have spiritual binoculars.

If Today is the Last Day

Sometimes the horizon can be very short. If “this night” is the last night then you may want to think differently about today’s choices.

One example is from a question someone “in the crowd” asked Jesus. He asked Jesus to tell his brother to divide the inheritance “with me.” This is in Luke 12:13-21.

“Someone in the crowd said to him, ‘Teacher, tell my brother to divide the inheritance with me.’  But he said to him, ‘Man, who made me a judge or arbitrator over you?’ And he said to them, ‘Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions.’ And he told them a parable, saying, ‘The land of a rich man produced plentifully, and he thought to himself, ‘What shall I do, for I have nowhere to store my crops?’ And he said, ‘I will do this: I will tear down my barns and build larger ones, and there I will store all my grain and my goods. And I will say to my soul, ‘Soul, you have ample goods laid up for many years; relax, eat, drink, be merry.’ But God said to him, ‘Fool! This night your soul is required of you, and the things you have prepared, whose will they be?’ So is the one who lays up treasure for himself and is not rich toward God.”

If You Have Another Sixty Years

Obviously you don’t know how long you will live unless a doctor has said something like, “You have no more than a month before it is likely you will die.” In other words, you don’t know how long your investing horizon might be.

Sadly, many do not save or invest and enter “retirement” with little or nothing saved. They certainly may have eaten, drank and had some merriment during their sixty years of living, but they might not enjoy the last twenty or so years of living. Others do save and invest, but they don’t think long-term when the choose investments or investment advisors.

Two Priorities?

Perhaps there are two focuses that matter. One has to do with wise living today that considers what may be true in the future. That will help govern decisions and actions. The second is to remember that life doesn’t end when life on this planet ends.

The Bible and Jesus paint a picture of eternity that contrasts the blessings of living in accordance with God’s will and the grave consequences of turning away from Him. The promise of eternal life through faith in Jesus Christ is central to Christian belief, offering hope and assurance of a future with God. So perhaps the best investment with a long-term perspective is faith.

There is a famous chapter in the book of Hebrews. In chapter eleven verse six it says, “And without faith it is impossible to please him, for whoever would draw near to God must believe that he exists and that he rewards those who seek him.”

How to Identify a Follower of Jesus

They have a horizon with the long-term in focus: “Do not love the world or the things in the world. If anyone loves the world, the love of the Father is not in him.” 1 John 2:15

Five Minute Friday

This post is part of the weekly Five-Minute Friday link-up.

All scripture passages are from the English Standard Version except as otherwise noted.