DISCLAIMER

I am not a registered investment advisor with the SEC. Nothing in this video, should be taken as legally binding investment advice, in the same way that SEC licensed stockbrokers can advise their clients. I am not “selling” any stocks or OTC penny stocks as a broker in this video. The purpose of chapter 5, is only to offer guidance to those who are interested in educating themselves, about self-directed investing and Biblically Responsible Investing (BRI).

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UPDATE: 10/23/22 – Treasury bonds that mature in 30 years are the best thing to put into your IRA for retirement. The 5% annual growth will be long-term and you won’t have to think about selling them until you’re in your 60s. Not treasury bills, as most of these are short-term and mature their interest growth in just a few years, same thing with treasury notes. In Larry Burkett’s time, in the 1990s, treasury bills were really expensive. Now treasury bonds, bills, and notes can all be bought through Merrill Edge or Fidelity for $100 a piece (see Michele Cagan, Investing 101, p. 68).

Fidelity Investments (established in 1946, and originally Peter Lynch’s employer, coincidental last name, and of no relation to the co-founder of Merrill Lynch,) is the main online broker of a Roth IRA that accepts Timothy Plan’s mutual funds and Inspire Investing’s ETFs. TD Ameritrade also takes them, but they’ve only been around since 1975, are financially weaker, and have suffered security breaches.

THE SELF-DIRECTED ROTH IRA INVESTMENT PORTFOLIO: Roth IRAs should consist of 20% treasury bonds that mature in 30 years and 75% BRI mutual funds, such as the Timothy Plan “Israel Common Values” mutual funds (TPAIX, TPCIX, TICIX) and high-return or “blue chip” individual oil stocks and other industry growth stocks (AMR, OXY, DVN, CF, VLO, EOG). 5% should remain in your Roth IRA as unspent cash (see Don Underwood and Paul Brown, Grow Rich Slowly: The Merrill Lynch Guide to Retirement Planning, p. 257). Individual stocks can be screened for low P/E ratio, price, market cap, industry, sector, etc, on finviz.com. Enter any stock ticker into Google and it will show you the stock chart along with the expected 1-year and 5-year returns. I’d say, don’t purchase anything that won’t give you at least a 40% return in 5 years (unless it’s treasury bonds). A 40% return every 5 years is considered normal for the top performing secularly managed mutual funds (for example: VSMPX, VFIAX, FXAIX). These are not BRI funds, but they are what the world would consider to be normal, healthy performing examples of mutual funds. All mutual funds and stocks should be plugged into inspireinsight.com to confirm that they are ethically “clean” according to BRI and ESG standards.

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OLD-TIME INVESTMENTS SINCE THE 1600s

Gold Coins (2% to 5%): moneymetals.com, apmex.com. (Canadian Maple Leaf AND/OR cash in the Roth IRA; Fidelity allows you to buy these as well).

Farmland, lots, and rental properties: acretrader.com, landwatch.com, landsearch.com, zillow.com.