God’s ways of handling money are so different than the world’s way. Isaiah 55:8-9 tells us, “For My thoughts are not your thoughts, neither are your ways My ways,” declares the Lord. “For as the heavens are higher than the earth, so are my ways than your ways.”
There was a classic example of this recently when General Motors announced that it wants to get out of the pension business. They are offering 42,000 GM retirees two options: they can either take a lump sum amount now, or GM will shift the pension to Prudential Insurance Company.
What stunned me was the advice given by a financial planner who works with these retirees. He said that one way for pensioners to make sure they’ll have enough income to provide for their futures, is to take their mortgage free homes and saddle them with a new 15- or 20-year home mortgage. With 15-year loans now averaging a little over 3 percent in interest, the retiree could invest that money, and hope to beat the rate they are paying on the loan.
The article ended by saying: Of course, they would have to be able to make their monthly payments – and live with the risks of betting the house on their investments – but those are questions for another day.
Think about this. Retirees encumbering their mortgage free homes in the hopes that their investments would beat the interest rate they are paying on a new mortgage. Forget the risk that they have obligated themselves to a higher cost of living. Forget the risk of investing in a time of tremendous economic uncertainty. Forget that Proverbs 22:7 warns us, “The borrower is servant (or slave) to the lender.”
Don’t forget the importance of learning what the God of the universe says about handling money . . . and practicing what He tells us.