Places to invest, other than in stocks...

[Ernie]

The question is sometimes raised, why wouldn't the average younger person invest in stocks, since that is one of the easiest places to get a good return on an investment, and have significant capital later in life to buy a house or have money to live on in old age.

Jesus says that where you invest, that is where your treasure is. So some people choose to do this and I admire those who do!

Some of us Anabaptists do not like investing in banks or other secular institutions as we would like to see our money used for purposes we feel good about or at least better about.

Some of us Anabaptist prefer to not invest in stocks, as we have problems with the corporate business model. The corporate business model often allows the folks who run the company to make large salaries. If they make bad decisions, many of them can walk away with large sums of money and not need to suffer along with all those who lost money as a result of their decisions. We also prefer to not invest in companies who will file bankruptcy at the hands of tax payers.

What are other reasons people may not want to invest in stocks?

What are other places to invest?

[Ernie]

One place that Plain Anabaptists can invest is with Anabaptist Financial. I'm mostly on board with the places they invest money, with the exception of growing tobacco. I don't understand why that loophole was allowed when AF began and as far as I know, continues to be a place where some funds are invested. I would be glad to know if it is otherwise. My guess is that AF didn't want to alienate too many Amish, but it just seems strange to me.

[JohnH]

One place that Plain Anabaptists can invest is with Anabaptist Financial. I'm mostly on board with the places they invest money, with the exception of growing tobacco. I don't understand why that loophole was allowed when AF began and as far as I know, continues to be a place where some funds are invested. I would be glad to know if it is otherwise. My guess is that AF didn't want to alienate too many Amish, but it just seems strange to me.

AF is a horrible place to get a loan though, particularly how they charge variable interest. You’re much better off loaning from a bank.

[Ernie]

Some time ago I worked for a non-profit Christian publisher that needed operating funds in order to do a large printing of Christian educational materials in order to get a good rate on printing. Without funds, the price per copy was going to be much higher. We found someone who was saving up funds to buy a house down the road and he was glad to see his money put to good use in the meantime rather than get used for unchristian purposes at a bank.
He bought thousands of books and every quarter the publisher paid him for any books that they sold. This gave him a good return on his investment, and greatly reduced the price per copy for the publisher.
It seems to me that the Christian community could be much more creative in helping Christians find Christian purposes for their investments.
Such arrangements...
1. Help the investor save up for a house or save up for some other need.
2. Keep the investor's funds from funding things that God is unhappy with.
3. Allow the investor to invest in the kingdom of God while at the same time saving up money for an actual need, a place to live.

[mike]

What are other places to invest?

Regular bank savings accounts? I think a lot of people are just too hooked on the idea that your savings has to be earning as much money as possible. Just put it in the bank and be happy with making a couple percent interest. There's a lot of investors in fraudulent Anabaptist-run investment schemes today that wish they had done that.

[Soloist]

Investment I can get behind would be investing into community members wanting to start a business.
You assume risk, if their company fails, you don’t make them destitute by still owing you money, but if their company succeeds you receive a portion of their profits.

This would allow the community to help front load members, wanting to start a business without borrowing from the bank.

Another investment, help someone build a house financially invest in it.
We need to stop thinking about investment as just making money. The point of the investment should not be about getting rich.

[Ernie]

Investment I can get behind would be investing into community members wanting to start a business.
You assume risk, if their company fails, you don’t make them destitute by still owing you money, but if their company succeeds you receive a portion of their profits.

This would allow the community to help front load members, wanting to start a business without borrowing from the bank.

Another investment, help someone build a house financially invest in it.
We need to stop thinking about investment as just making money. The point of the investment should not be about getting rich.

I think these are good option for people who are saving up for old age, and aren't really sure how much they will need when they get there, but would prefer to have a little extra than not enough. Some such folks would be willing to take some risk if they knew they were helping someone.

There are also folks who are saving up money to buy another business some day or another farm. These folks could take some risk if they have good priorities in life.

I was thinking more of younger people who know they want to buy a house in about 5 or 10 years, and can't really take much risk, or they won't be able to buy their own house.

But you are correct, there are both types of investors.

[JohnH]

I was thinking more of younger people who know they want to buy a house in about 5 or 10 years, and can't really take much risk, or they won't be able to buy their own house.

It would certainly be possible for various types of businesses to take on debt (or equity) investments like this with an expectation the person depositing it might expect to withdraw it on a shorter timetable. To lower risk, it could be spread around to multiple businesses (perhaps a few in the local congregation, and a few in another congregation), and then a mixture of both equity and debt type investments. And then just put some of the money in a bank, and keep some in cash stuffed in the freezer.

[GaryK]

One place that Plain Anabaptists can invest is with Anabaptist Financial. I'm mostly on board with the places they invest money, with the exception of growing tobacco. I don't understand why that loophole was allowed when AF began and as far as I know, continues to be a place where some funds are invested. I would be glad to know if it is otherwise. My guess is that AF didn't want to alienate too many Amish, but it just seems strange to me.

AF is a horrible place to get a loan though, particularly how they charge variable interest. You’re much better off loaning from a bank.

That hasn't been my experience. When I told my local banker what AF's interest rate was for a construction loan, he told me to go for it. The bank was close to a percentage point higher.

[Ernie]

I was thinking more of younger people who know they want to buy a house in about 5 or 10 years, and can't really take much risk, or they won't be able to buy their own house.

It would certainly be possible for various types of businesses to take on debt (or equity) investments like this with an expectation the person depositing it might expect to withdraw it on a shorter timetable. To lower risk, it could be spread around to multiple businesses (perhaps a few in the local congregation, and a few in another congregation), and then a mixture of both equity and debt type investments. And then just put some of the money in a bank, and keep some in cash stuffed in the freezer.

AF encourages person to person loaning in the spirit of Anabaptist mutual aid. They will even facilitate (for a fee) such arrangements. This is especially for those who find financials and contracts beyond their ability or knowledge and are looking for a simple process with no headaches.