Investing

[Mageduckey]

Not sure if this is more suited to the Off-Topic area.

I will soon be done with my freshman year of college.  I am hoping to get a summer job to acquire a 2004 Toyota Prius by next semester.  I was recently reminded about investing, and after some investigation went out and acquired a TD Ameritrade account.  I do not yet have the actual funds to begin investing, but I am hoping to start sometime in the next couple years during college (and if not by graduation, then certainly as soon as I get a job).

I've read several investment brochures, websites, etc., and know it is wise to invest earlier on in my life and then let the money stew to get decent returns without needing to invest more money.  Both my father and grandfather were bankers, and my dad is somewhat active in investing in the market, so choosing investments (primarily mutual funds, most likely) won't be a problem once I begin actually investing.

However, one of the goals for my life is to sponsor as many children in third world countries as I can (through an organization called World Vision).  With my projected starting salary (based on averages of probable career paths given my current major/minor combination), I can support 12 WV children with my allotted investment money from my first two years out of college (while I'm paying off student loans).  After my student debt is gone, I can support 24 WV children (12 more in addition to the original 12) each year with the money I would be investing.

If I invest, though, and wait a few years to start supporting children, my yearly returns would slowly build enough to cover any potential college costs for my own children AND start supporting WV children off the returns (without reducing my capital).  If I support the WV children straight out of college, I won't have the investments built enough to support WV children from just returns on investments.

So my question is, how do I choose between which children to support?  I mean, 12 (and then 24 two years later) children right out of college vs 24 children 6-8 years after graduation with the ability to slowly but steadily increase that count.  What right do I have to deny either group of children (which are all but guaranteed to be entirely different) support?  I have to choose, and the latter lets me help a greater quantity, but the former are still children in need of the support and the Gospel.  I realize this won't really be an issue for another 3 years, but it came up while I was planning out post-graduation financial situations and I can't get my mind off it.  Any advice is greatly appreciated.

[Rawrlolsauce!]

So my question is, how do I choose between which children to support?

Bear with me a second. I'm being totally serious.

Why shouldn't you sell everything you own to help the poor (besides the fact throwing money at poverty can't fix it)? Why shouldn't you devote your life to helping the poor? And by devote, I really mean devote, as in you sleep 4 hours a night and the other 20 are spent doing service projects (7 days a week). On what basis are you deciding "this is enough?"

IMO, the tl;dr is do whatever feel is right; nothing in philosophy makes sense when you think about it.

[Mageduckey]

The reason for taking the investments into account is because after only 6-8 years of actual investing, the returns (provided I can manage the money properly and get decent return rates) would then support more children than if I had put all the money into WV.  So it's an issue of help some sooner, or help more later.


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To use some actual numbers (without getting into costs/salaries/etc.; assuming no raises, since I really have no way to account for those):

Option 1: Don't invest.  Spend all extra money that isn't going towards a small savings account (unforeseen medical expenses, kid(s)'s college, donating, etc.) on supporting children.  From age 23 to age 30 (8 years), I support 12 children a year.  From age 31 to 70 (retiring; 40 years), I support 50 children a year.  That's a total of 2096 "life years" (number of children I could support in one year, which would obviously instead be worked to maximize benefit - think making a rectangle as close to a square as you can, optimizing the area).

Option 2: Invest for 8 years and put remaining money into a savings account, failing to support 12 children during that time.  I then use the expected returns to provide for 10 children each year from age 31 to age 80 (50 years - since it's market returns, retiring doesn't matter).  In addition, I use all money not being used to pay bills to support 50 children from age 31 to age 70 (retiring; 40 years).  That's a total of 2500 "life years".

Option 3: Invest for 8 years and put remaining money during those years into a savings account, failing to support 12 children during that time.  Leave returns alone and let capital grow unhindered.  Spend all money not being used to pay bills to support 50 children from age 31 to age 70 (retiring; 40 years).  At age 80, my investments will have climbed high enough to provide 3200 "life years".  That's a total of 5200 "life years".

As the option number increases, so does my overall impact on WV children.  But with each passing year that I don't put everything I have into supporting children, it is my fault if the children I would have sponsored die due to lack of support.  Either way, it's my fault if the children I didn't support, either because I started earlier and didn't have enough money to support more later or I started later to support more but miss out on the initial support opportunities, die due to lack of support.

*Disclaimer: Yes, I know this model does not take into account taxes, fees, raises, major financial/market "hiccups", etc.  It is merely a rough outline.

[jbeers285]

I believe your intentions are good and pure. My advice would be to seek the wisdom of God and contact an upper level member of WV and talk to them about your situation and see what they have to say.

That said dont forget that the more money you save will only leave you with a bigger quandary later. Because if this is your thought process saving your entire life and then willing all the returns to WV would actually produce the highest number of children for you to care for.

If it were me I would give what you can now rather then later. I do not believe in health and wealth theology on giving but I do believe when we are faithful over the little things God will give us more in order to give more. I don't mean this in a simply monetary fashion. I believe the same principle applies to our gifting and calling.

At some level I agree that "sell everything and follow me" is what Jesus told the rich young ruler but I believe we are also called to be stewards of what God has given us. Again I think your motives are good and if you maintain this heart for ministry God will use you in the ways that he has planned. Keep your heart soft and trust in Him. Allow Him to guide you, strength will rise as we wait on The Lord.

God Bless and while you determine the answer be in prayer for the children of the world and for world vision volunteers and workers.