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The Steward vs. The Hoarder: Two Ways to Hold Wealth

ST. CROIX INSIGHTS

The Steward vs. The Hoarder: Two Ways to Hold Wealth

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
Back lit silhouette of male farmer standing in cultivated soybean field in summer sunset, selective focus

There’s a story in Gospel of Luke 12 that doesn’t get talked about enough in financial planning circles.

A man’s land produces an abundant harvest. More than he ever expected. And his response? Build bigger barns. Store it all up. Then sit back and enjoy the good life.

God’s response? “You fool. Tonight your life will be demanded of you.”

That’s a hard passage. But Jesus Christ told it for a reason. And it contains one of the most important financial lessons you’ll ever learn.

There are two ways to hold wealth. You can hoard it, or you can steward it. And the difference between the two isn’t just a matter of generosity—it’s a matter of the heart.

The Hoarder’s Viewpoint

The rich man in Luke 12 wasn’t evil. He wasn’t a villain. He was just, like most of us, trying to secure his future. His instinct was to accumulate, protect, and insulate himself from uncertainty.

Sound familiar? It should. Our culture is wired for exactly this. Save more. Protect more. Build bigger barns. Retire with enough cushion that nothing can touch you.

Now, I’m a Certified Financial Planner (CFP®). I believe deeply in saving, in planning, in building real financial security. That’s not the problem. The problem is when accumulation becomes the point. When the number in the account becomes the thing we trust most.

That’s hoarding. And it quietly cuts us off from both generosity and peace.

The Steward’s Viewpoint

A steward holds things differently. Not loosely, but openly. They plan carefully, yes. They save wisely. But they never mistake management for ownership.

The steward’s defining question is: How does the Owner want me to use this? Not: How do I protect as much as I can for as long as possible?

Ron Blue, one of the wisest voices in Christian financial planning, puts it simply: money is a tool, not a goal. The steward uses it as a tool—for family, for generosity, for kingdom purposes—and doesn’t let it become a trophy or a security blanket. God’s our true provider for us believers.

And this is where financial planning, done well, becomes something much deeper than numbers on a page.

As an advisor, my role isn’t just to help you accumulate more. It’s to help you align what you have with what matters most. Together, we can build a plan that reflects stewardship in very tangible ways:

  • Creating a thoughtful giving strategy so generosity is not an afterthought, but a core part of your financial life
  • Structuring your investments in a way that aligns with your values and long-term purpose
  • Designing a legacy and succession plan that prepares your heirs not just to receive wealth, but to handle it with wisdom, humility, and a sense of calling
  • Clarifying priorities so your financial decisions are driven by conviction, not fear

Because stewardship isn’t accidental. It requires intentional planning.

Which One Are You?

Here’s a diagnostic. Not a judgment—just an honest look in the mirror.

When you get a financial windfall, what’s your first instinct? Protect it, deploy it, or spend it?

When you think about your financial plan, does it include a giving strategy, or just a saving strategy?

Does your financial plan reflect your values, or just your fears?

And maybe the most important question: if someone looked at your financial life from the outside, would they see evidence of trust in God, or just self-protection?

A Different Kind of Security

The beautiful irony of stewardship is that those who hold wealth with an open hand tend to experience more peace, more joy, and more fulfillment than those who grip it tightly. Because they’ve stopped carrying a burden that was never theirs to carry.

True financial peace doesn’t come from having “enough.” It comes from knowing you’re using what you’ve been given the way it was intended. That’s stewardship as we are only managers for a short time.

That’s the kind of planning I want for my clients. Not just financially sound, but spiritually aligned. Not just prepared for retirement, but prepared to live and give with purpose along the way.

Matthews 25:21 is what I’m working toward and I want to help others to succeed with:

”Well done, good and faithful servant. You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness.”

How cool is that?

Remember, the barns are temporary.

The impact is not.

 

There’s a story in Gospel of Luke 12 that doesn’t get talked about enough in financial planning circles.

A man’s land produces an abundant harvest. More than he ever expected. And his response? Build bigger barns. Store it all up. Then sit back and enjoy the good life.

God’s response? “You fool. Tonight your life will be demanded of you.”

That’s a hard passage. But Jesus Christ told it for a reason. And it contains one of the most important financial lessons you’ll ever learn.

There are two ways to hold wealth. You can hoard it, or you can steward it. And the difference between the two isn’t just a matter of generosity—it’s a matter of the heart.

The Hoarder’s Viewpoint

The rich man in Luke 12 wasn’t evil. He wasn’t a villain. He was just, like most of us, trying to secure his future. His instinct was to accumulate, protect, and insulate himself from uncertainty.

Sound familiar? It should. Our culture is wired for exactly this. Save more. Protect more. Build bigger barns. Retire with enough cushion that nothing can touch you.

Now, I’m a Certified Financial Planner (CFP®). I believe deeply in saving, in planning, in building real financial security. That’s not the problem. The problem is when accumulation becomes the point. When the number in the account becomes the thing we trust most.

That’s hoarding. And it quietly cuts us off from both generosity and peace.

The Steward’s Viewpoint

A steward holds things differently. Not loosely, but openly. They plan carefully, yes. They save wisely. But they never mistake management for ownership.

The steward’s defining question is: How does the Owner want me to use this? Not: How do I protect as much as I can for as long as possible?

Ron Blue, one of the wisest voices in Christian financial planning, puts it simply: money is a tool, not a goal. The steward uses it as a tool—for family, for generosity, for kingdom purposes—and doesn’t let it become a trophy or a security blanket. God’s our true provider for us believers.

And this is where financial planning, done well, becomes something much deeper than numbers on a page.

As an advisor, my role isn’t just to help you accumulate more. It’s to help you align what you have with what matters most. Together, we can build a plan that reflects stewardship in very tangible ways:

  • Creating a thoughtful giving strategy so generosity is not an afterthought, but a core part of your financial life
  • Structuring your investments in a way that aligns with your values and long-term purpose
  • Designing a legacy and succession plan that prepares your heirs not just to receive wealth, but to handle it with wisdom, humility, and a sense of calling
  • Clarifying priorities so your financial decisions are driven by conviction, not fear

Because stewardship isn’t accidental. It requires intentional planning.

Which One Are You?

Here’s a diagnostic. Not a judgment—just an honest look in the mirror.

When you get a financial windfall, what’s your first instinct? Protect it, deploy it, or spend it?

When you think about your financial plan, does it include a giving strategy, or just a saving strategy?

Does your financial plan reflect your values, or just your fears?

And maybe the most important question: if someone looked at your financial life from the outside, would they see evidence of trust in God, or just self-protection?

A Different Kind of Security

The beautiful irony of stewardship is that those who hold wealth with an open hand tend to experience more peace, more joy, and more fulfillment than those who grip it tightly. Because they’ve stopped carrying a burden that was never theirs to carry.

True financial peace doesn’t come from having “enough.” It comes from knowing you’re using what you’ve been given the way it was intended. That’s stewardship as we are only managers for a short time.

That’s the kind of planning I want for my clients. Not just financially sound, but spiritually aligned. Not just prepared for retirement, but prepared to live and give with purpose along the way.

Matthews 25:21 is what I’m working toward and I want to help others to succeed with:

”Well done, good and faithful servant. You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness.”

How cool is that?

Remember, the barns are temporary.

The impact is not.

Do I Need a Financial Advisor?

ST. CROIX INSIGHTS

Do I Need a Financial Advisor?

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
couple shaking hands with a financial advisor

The uncertain job market, the government shutdown, a shaky economy, and news of possible tariff refunds may leave many Americans feeling whiplash from the nonstop headlines about money. If you feel like you’re floundering, unsure what financial steps to take, where to invest, or how much to save, hiring a financial advisor may be a smart move.

The U.S. economy is no stranger to ups and downs, and financial advisors bring professional experience and training to help manage expectations and make a plan. They can point out opportunities to act quickly and, just as important, areas where patience is prudent.

Sometimes financial decisions are complicated. Whether you’re new to making big financial choices or you’re an experienced saver who wants a second opinion, you may benefit from working with an advisor.

What Does a Financial Advisor Do?

A financial advisor can provide a wide range of services, including:

  • Financial planning: Retirement, taxes, savings, estate planning, and insurance.
  • Investment and wealth management: Building and managing a diversified portfolio.
  • Guidance through life transitions: Marriage, divorce, career changes, death of a spouse, inheritance, starting a business, and more.
  • Behavioral coaching: Helping you avoid emotional decisions that can hurt your long-term financial outcomes.

Some clients hire advisors for one-off, a la carte services, while others engage them for comprehensive, ongoing planning.

Financial Advisor Fees

Costs vary depending on the advisor’s model and the services you request. Common fee structures include:

  • Fee-only: The advisor is paid directly by the client (typically via assets under management, hourly, or flat fees) and does not earn commissions on product sales.
  • Commission-based: The advisor earns commissions on products they sell (for example, certain insurance or annuity products).
  • Fee-based (hybrid): The advisor charges both fees (e.g., for planning) and may receive commissions for product sales.

Each model has pros and cons. For example, an annual flat fee might cost less than ongoing AUM fees if your portfolio grows large, but a flat fee may require a bigger upfront payment. No matter the model, I would seek to understand the advisor’s potential conflicts of interest and biases.

Why You May Need a Financial Advisor

You might benefit from professional advice if any of the following apply:

  • You’re unsure how to plan properly for retirement or if you’re on track.
  • You’re unsure where or how to invest your hard-earned money.
  • You’re facing a major life change.
  • You want to minimize taxes and protect wealth.
  • You don’t have the time or desire to manage your finances yourself.

I recently read an article in The Wall Street Journal about a 75-year-old retired university professor who was well-educated and respected in her own right. But when her husband died, she quickly became overwhelmed by all the financial responsibilities dropped into her lap. Her husband had managed all aspects of their finances. She had little interest in investments while he was alive, and they’d long procrastinated involving her. Weeks after her husband’s death, she contacted a financial advisor whom she found in her husband’s email account. With professional help, she got everything under control and, a year later, feels comfortable managing her finances.

This story stresses the importance of both partners being involved in the household finances. If the idea of investments and planning for retirement overwhelms you or your partner, reaching out to a financial advisor can be beneficial for your present and future. I’ve personally seen this firsthand, and how overwhelming the financially non-involved spouse becomes when they are thrown into the financial lead with little to no background or understanding of your family’s financial situation, let alone a basic understanding of Finances 101.

When You Might Not Need a Financial Advisor

An advisor isn’t necessary for everyone. You may be fine without one if:

  • You have a simple financial situation (no debt, single income, basic 401(k) plan).
  • You enjoy managing your own investments and are disciplined.
  • You are adept at using low-cost tools and understand the basics of budgeting and asset allocation.
  • You’re in an early stage of wealth building and prefer to DIY until complexity increases.

How to Decide if You Need an Advisor

Perhaps some of the things highlighted in this article resonated with you, yet you’re still unsure. Finances are a personal matter. Hiring an advisor means putting trust in someone else with your money and spending that hard-earned money on that person’s professional guidance.

The following step-by-step approach may help you decide:

  1. Define your goals and pain points.
  2. Evaluate your time, knowledge, and comfort level.
  3. Research advisor options and fee structures.
  4. Meet with one or two advisors for a consultation.
  5. Make an informed choice, even “not yet” is a valid answer.

A financial advisor can be a valuable resource, but it’s perfectly okay to wait. Most advisors offer free consultations before you decide to hire them—take advantage of that opportunity and ask plenty of questions. Remember, working with a financial advisor doesn’t have to be a lifelong commitment. If you find that it’s not the right fit or no longer necessary, you can always part ways. You also don’t need to be wealthy to seek professional guidance. Your financial well-being deserves thoughtful care, so take your time and make the decision that feels right for you and your family.

 

The uncertain job market, the government shutdown, a shaky economy, and news of possible tariff refunds may leave many Americans feeling whiplash from the nonstop headlines about money. If you feel like you’re floundering, unsure what financial steps to take, where to invest, or how much to save, hiring a financial advisor may be a smart move.

The U.S. economy is no stranger to ups and downs, and financial advisors bring professional experience and training to help manage expectations and make a plan. They can point out opportunities to act quickly and, just as important, areas where patience is prudent.

Sometimes financial decisions are complicated. Whether you’re new to making big financial choices or you’re an experienced saver who wants a second opinion, you may benefit from working with an advisor.

What Does a Financial Advisor Do?

A financial advisor can provide a wide range of services, including:

  • Financial planning: Retirement, taxes, savings, estate planning, and insurance.
  • Investment and wealth management: Building and managing a diversified portfolio.
  • Guidance through life transitions: Marriage, divorce, career changes, death of a spouse, inheritance, starting a business, and more.
  • Behavioral coaching: Helping you avoid emotional decisions that can hurt your long-term financial outcomes.

Some clients hire advisors for one-off, a la carte services, while others engage them for comprehensive, ongoing planning.

Financial Advisor Fees

Costs vary depending on the advisor’s model and the services you request. Common fee structures include:

  • Fee-only: The advisor is paid directly by the client (typically via assets under management, hourly, or flat fees) and does not earn commissions on product sales.
  • Commission-based: The advisor earns commissions on products they sell (for example, certain insurance or annuity products).
  • Fee-based (hybrid): The advisor charges both fees (e.g., for planning) and may receive commissions for product sales.

Each model has pros and cons. For example, an annual flat fee might cost less than ongoing AUM fees if your portfolio grows large, but a flat fee may require a bigger upfront payment. No matter the model, I would seek to understand the advisor’s potential conflicts of interest and biases.

Why You May Need a Financial Advisor

You might benefit from professional advice if any of the following apply:

  • You’re unsure how to plan properly for retirement or if you’re on track.
  • You’re unsure where or how to invest your hard-earned money.
  • You’re facing a major life change.
  • You want to minimize taxes and protect wealth.
  • You don’t have the time or desire to manage your finances yourself.

I recently read an article in The Wall Street Journal about a 75-year-old retired university professor who was well-educated and respected in her own right. But when her husband died, she quickly became overwhelmed by all the financial responsibilities dropped into her lap. Her husband had managed all aspects of their finances. She had little interest in investments while he was alive, and they’d long procrastinated involving her. Weeks after her husband’s death, she contacted a financial advisor whom she found in her husband’s email account. With professional help, she got everything under control and, a year later, feels comfortable managing her finances.

This story stresses the importance of both partners being involved in the household finances. If the idea of investments and planning for retirement overwhelms you or your partner, reaching out to a financial advisor can be beneficial for your present and future. I’ve personally seen this firsthand, and how overwhelming the financially non-involved spouse becomes when they are thrown into the financial lead with little to no background or understanding of your family’s financial situation, let alone a basic understanding of Finances 101.

When You Might Not Need a Financial Advisor

An advisor isn’t necessary for everyone. You may be fine without one if:

  • You have a simple financial situation (no debt, single income, basic 401(k) plan).
  • You enjoy managing your own investments and are disciplined.
  • You are adept at using low-cost tools and understand the basics of budgeting and asset allocation.
  • You’re in an early stage of wealth building and prefer to DIY until complexity increases.

How to Decide if You Need an Advisor

Perhaps some of the things highlighted in this article resonated with you, yet you’re still unsure. Finances are a personal matter. Hiring an advisor means putting trust in someone else with your money and spending that hard-earned money on that person’s professional guidance.

The following step-by-step approach may help you decide:

  1. Define your goals and pain points.
  2. Evaluate your time, knowledge, and comfort level.
  3. Research advisor options and fee structures.
  4. Meet with one or two advisors for a consultation.
  5. Make an informed choice, even “not yet” is a valid answer.

A financial advisor can be a valuable resource, but it’s perfectly okay to wait. Most advisors offer free consultations before you decide to hire them—take advantage of that opportunity and ask plenty of questions. Remember, working with a financial advisor doesn’t have to be a lifelong commitment. If you find that it’s not the right fit or no longer necessary, you can always part ways. You also don’t need to be wealthy to seek professional guidance. Your financial well-being deserves thoughtful care, so take your time and make the decision that feels right for you and your family.

Why Work with a Certified Kingdom Advisor?

ST. CROIX INSIGHTS

Why Work with a Certified Kingdom Advisor?

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
A depiction of the crucifixion of Jesus Christ, three crosses on a hill. Imagery intended to represent the crucifixion and resurrection of Jesus Christ celebrated on Easter sunday. Horizontal image with copy space.

The Bible talks about money—a lot. In fact, 2,350 verses address money. Clearly, God cares about how we manage the resources He entrusts to us. After all, we came into this world with nothing and we leave with nothing.

And yet, money is often treated as a taboo subject. We tend to avoid conversations about finances with friends and family. But as a Certified Financial Planner®, I see things differently. I believe money is not only worth talking about, it’s necessary if we want to live with intentionality and purpose. I believe if we talked about it more, fewer people would be struggling with it.

My clients come to me with a variety of financial possibilities: building wealth, managing money more wisely, protecting their families, or creating a legacy that lasts beyond their lifetime. Helping people reach those goals is a privilege. But what excites me even more is when someone says, “I want my financial plan to reflect my faith.”

That’s where a Certified Kingdom Advisor® (CKA®) comes in.

What is a Certified Kingdom Advisor?

A Certified Kingdom Advisor is a financial professional who has completed specialized training to integrate biblical principles into financial planning. The program, created by Kingdom Advisors, equips advisors to approach money management from a biblical perspective. Straight from scripture.

It recognizes that money is more than math—it’s a heart issue. Scripture reminds us that we are stewards of God’s resources, and stewardship is about aligning money with values, purpose, and eternal impact.

Why Work with a CKA?

Not everyone is a Christian, and even among Christians, not everyone is interested in weaving faith into their financial life. That’s okay! I welcome clients of all backgrounds, without judgment.

But if you are someone who wants your financial plan to reflect your faith, working with a CKA can make a meaningful difference. Here’s how:

1. Values-Based Investing

A CKA can help you invest in a way that aligns with your biblical values. This may mean avoiding companies whose practices conflict with your beliefs, while seeking out investments that make a positive impact.

2. Stewardship & Financial Decision-Making

Stewardship goes beyond budgeting. It’s about viewing every financial decision through the lens of God’s ownership. A CKA helps you create a plan that ensures your money serves God’s purposes, not just your own comfort.

3. Generosity & Legacy Planning

Many believers want their legacy to extend beyond their family, blessing ministries, charities, or future generations of faith. A CKA helps design kingdom strategies so your giving can be intentional, tax-efficient, and impactful. But it’s not all about tax savings, after all!

4. Biblical Wisdom with Professional Expertise

CKAs are held to the same professional standards as other financial advisors, but they are also trained to provide counsel grounded in biblical wisdom. This dual approach helps ensure your plan is both financially sound and spiritually meaningful.

I earned my Certified Kingdom Advisor designation in the summer of 2025, and I consider it the most important designation I’ve achieved to date. For me, it represents more than letters after my name. It means that when you sit down with me, you’re not only providing financial advice, but also guidance that respects and reflects your faith. My goal is to help you manage God’s resources in a way that brings peace, purpose, and joy.

Money is not just about numbers. It’s about what (and who) we value most. If you’ve ever wondered how to connect your faith with your finances, working with a Certified Kingdom Advisor may be the bridge you’re looking for. Reach out if you’re interested. I’d be honored to chat.

 

The Bible talks about money—a lot. In fact, 2,350 verses address money. Clearly, God cares about how we manage the resources He entrusts to us. After all, we came into this world with nothing and we leave with nothing.

And yet, money is often treated as a taboo subject. We tend to avoid conversations about finances with friends and family. But as a Certified Financial Planner®, I see things differently. I believe money is not only worth talking about, it’s necessary if we want to live with intentionality and purpose. I believe if we talked about it more, fewer people would be struggling with it.

My clients come to me with a variety of financial possibilities: building wealth, managing money more wisely, protecting their families, or creating a legacy that lasts beyond their lifetime. Helping people reach those goals is a privilege. But what excites me even more is when someone says, “I want my financial plan to reflect my faith.”

That’s where a Certified Kingdom Advisor® (CKA®) comes in.

What is a Certified Kingdom Advisor?

A Certified Kingdom Advisor is a financial professional who has completed specialized training to integrate biblical principles into financial planning. The program, created by Kingdom Advisors, equips advisors to approach money management from a biblical perspective. Straight from scripture.

It recognizes that money is more than math—it’s a heart issue. Scripture reminds us that we are stewards of God’s resources, and stewardship is about aligning money with values, purpose, and eternal impact.

Why Work with a CKA?

Not everyone is a Christian, and even among Christians, not everyone is interested in weaving faith into their financial life. That’s okay! I welcome clients of all backgrounds, without judgment.

But if you are someone who wants your financial plan to reflect your faith, working with a CKA can make a meaningful difference. Here’s how:

1. Values-Based Investing

A CKA can help you invest in a way that aligns with your biblical values. This may mean avoiding companies whose practices conflict with your beliefs, while seeking out investments that make a positive impact.

2. Stewardship & Financial Decision-Making

Stewardship goes beyond budgeting. It’s about viewing every financial decision through the lens of God’s ownership. A CKA helps you create a plan that ensures your money serves God’s purposes, not just your own comfort.

3. Generosity & Legacy Planning

Many believers want their legacy to extend beyond their family, blessing ministries, charities, or future generations of faith. A CKA helps design kingdom strategies so your giving can be intentional, tax-efficient, and impactful. But it’s not all about tax savings, after all!

4. Biblical Wisdom with Professional Expertise

CKAs are held to the same professional standards as other financial advisors, but they are also trained to provide counsel grounded in biblical wisdom. This dual approach helps ensure your plan is both financially sound and spiritually meaningful.

I earned my Certified Kingdom Advisor designation in the summer of 2025, and I consider it the most important designation I’ve achieved to date. For me, it represents more than letters after my name. It means that when you sit down with me, you’re not only providing financial advice, but also guidance that respects and reflects your faith. My goal is to help you manage God’s resources in a way that brings peace, purpose, and joy.

Money is not just about numbers. It’s about what (and who) we value most. If you’ve ever wondered how to connect your faith with your finances, working with a Certified Kingdom Advisor may be the bridge you’re looking for. Reach out if you’re interested. I’d be honored to chat.

Risk Tolerance vs. Risk Capacity: A Missing Piece in Investment Conversations

ST. CROIX INSIGHTS

Risk Tolerance vs. Risk Capacity: A Missing Piece in Investment Conversations

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
laptop showing investment portfolio changes

In my work with clients, I’ve noticed a common theme in investment conversations: most people have heard of risk tolerance, but very few have ever discussed risk capacity. And that’s a problem—because only looking at how you feel about risk can leave serious blind spots in your financial plan. Let’s explore the difference and why this conversation is so critical for long-term success.

Risk Capacity vs. Risk Tolerance

To invest confidently—especially during volatile markets—it’s important to understand both your emotional response to risk and your actual financial ability to withstand losses.

Risk Tolerance

Risk tolerance is your emotional ability to handle investment volatility. Some clients tell me they’re fine watching their accounts drop temporarily. Others admit even a 5% dip makes them uncomfortable and nervous. These are honest and important feelings, and we always take them into account.

We typically assess risk tolerance through conversations and questions—but feelings can change over time and even with wisdom gathered over the years. When markets get choppy, even the most confident investors can start second-guessing their choices.

Risk Capacity

Risk capacity, something that’s not talked about too much, is your ability to financially handle market downturns—can your goals, timeline, and cash flow truly support your investment strategy? This is where the conversation often deepens in my meetings with clients, and math gets involved. And let’s not forget emotions at times.

For example, if you’re planning to retire in the next three years, you may not have the capacity to take on high volatility, even if you’re emotionally okay with it. On the other hand, if you’re 30 years old with decades until retirement, your capacity might be higher than you realize.

When I work with clients, we evaluate both together: What you can handle emotionally and what you can handle financially. The balance between those two is where your real risk profile lives.

Why Risk Capacity Is So Often Overlooked

Risk tolerance feels more personal, so it gets more attention. But ignoring risk capacity can lead to costly mistakes—especially during down markets.

Let’s say you’re comfortable seeing your investments drop 20%. That’s great in theory. But if you’re also planning to withdraw a large amount to buy a home or fund a major life event in the next year, that paper loss could become a real setback. That’s where proper planning and expections come into play. When are you going to need various funds?

Time Is Your Friend—If You Have It

Markets move in cycles. Over time, they’ve always recovered from downturns (that’s what history has proven so far!). But the key word is time.

For long-term investors, a market drop is often just a bump in the road. But if you need to tap your investments while the market is still down, that “bump” can become a permanent detour. Selling at a loss can derail plans—not because the market failed, but because the timing didn’t line up with your needs.

Investment strategies should align with both your comfort level and your financial timeline. It’s not just about returns—it’s about when you’ll need the money.

Cash Is King

One of the most effective ways to reduce your portfolio risk and protect your goals is to maintain strong cash reserves.

In practice, this means having enough in savings to weather a downturn without needing to dip into your investments. Most advisors recommend having three to six months of cash on hand. Personally, I prefer one to two years’ worth. Whatever the amount, your cash reserve acts as a cushion—giving your long-term investments the space and time they need to recover.

I often tell clients: Cash may not be exciting, but it’s one of the most powerful tools in your financial toolkit. It lets you be patient when others panic—and patience is often what separates long-term success from short-term regret.

Cash allows your investments time to recover. It gives you greater risk capacity: time. Time for your investments to recover during down periods.

Remember the old saying: past performance is not a guarantee of future results.

Because when you run the math, you might recover from market downturns in a year or two. Cash gives you that time.

Bringing It All Together

Investing isn’t just about knowing your risk tolerance or chasing returns—it’s about aligning your strategy with your life.

When we work together, we focus on building a plan that’s grounded in both what feels right and what works financially. That includes planning for the unexpected, preparing for market fluctuations, and making sure your investment strategy supports your real-world needs and the possibilities ahead in your life.

If it’s been a while since you’ve reviewed your risk profile—or if recent market swings have made you second-guess your strategy—this is a great time to revisit the conversation.

Understanding your risk capacity alongside your risk tolerance can give you clarity, peace of mind, and a more resilient investment plan. If you’d like to talk through how this applies to your personal situation, I’d be glad to help. Contact me today.

 

In my work with clients, I’ve noticed a common theme in investment conversations: most people have heard of risk tolerance, but very few have ever discussed risk capacity. And that’s a problem—because only looking at how you feel about risk can leave serious blind spots in your financial plan. Let’s explore the difference and why this conversation is so critical for long-term success.

Risk Capacity vs. Risk Tolerance

To invest confidently—especially during volatile markets—it’s important to understand both your emotional response to risk and your actual financial ability to withstand losses.

Risk Tolerance

Risk tolerance is your emotional ability to handle investment volatility. Some clients tell me they’re fine watching their accounts drop temporarily. Others admit even a 5% dip makes them uncomfortable and nervous. These are honest and important feelings, and we always take them into account.

We typically assess risk tolerance through conversations and questions—but feelings can change over time and even with wisdom gathered over the years. When markets get choppy, even the most confident investors can start second-guessing their choices.

Risk Capacity

Risk capacity, something that’s not talked about too much, is your ability to financially handle market downturns—can your goals, timeline, and cash flow truly support your investment strategy? This is where the conversation often deepens in my meetings with clients, and math gets involved. And let’s not forget emotions at times.

For example, if you’re planning to retire in the next three years, you may not have the capacity to take on high volatility, even if you’re emotionally okay with it. On the other hand, if you’re 30 years old with decades until retirement, your capacity might be higher than you realize.

When I work with clients, we evaluate both together: What you can handle emotionally and what you can handle financially. The balance between those two is where your real risk profile lives.

Why Risk Capacity Is So Often Overlooked

Risk tolerance feels more personal, so it gets more attention. But ignoring risk capacity can lead to costly mistakes—especially during down markets.

Let’s say you’re comfortable seeing your investments drop 20%. That’s great in theory. But if you’re also planning to withdraw a large amount to buy a home or fund a major life event in the next year, that paper loss could become a real setback. That’s where proper planning and expections come into play. When are you going to need various funds?

Time Is Your Friend—If You Have It

Markets move in cycles. Over time, they’ve always recovered from downturns (that’s what history has proven so far!). But the key word is time.

For long-term investors, a market drop is often just a bump in the road. But if you need to tap your investments while the market is still down, that “bump” can become a permanent detour. Selling at a loss can derail plans—not because the market failed, but because the timing didn’t line up with your needs.

Investment strategies should align with both your comfort level and your financial timeline. It’s not just about returns—it’s about when you’ll need the money.

Cash Is King

One of the most effective ways to reduce your portfolio risk and protect your goals is to maintain strong cash reserves.

In practice, this means having enough in savings to weather a downturn without needing to dip into your investments. Most advisors recommend having three to six months of cash on hand. Personally, I prefer one to two years’ worth. Whatever the amount, your cash reserve acts as a cushion—giving your long-term investments the space and time they need to recover.

I often tell clients: Cash may not be exciting, but it’s one of the most powerful tools in your financial toolkit. It lets you be patient when others panic—and patience is often what separates long-term success from short-term regret.

Cash allows your investments time to recover. It gives you greater risk capacity: time. Time for your investments to recover during down periods.

Remember the old saying: past performance is not a guarantee of future results.

Because when you run the math, you might recover from market downturns in a year or two. Cash gives you that time.

Bringing It All Together

Investing isn’t just about knowing your risk tolerance or chasing returns—it’s about aligning your strategy with your life.

When we work together, we focus on building a plan that’s grounded in both what feels right and what works financially. That includes planning for the unexpected, preparing for market fluctuations, and making sure your investment strategy supports your real-world needs and the possibilities ahead in your life.

If it’s been a while since you’ve reviewed your risk profile—or if recent market swings have made you second-guess your strategy—this is a great time to revisit the conversation.

Understanding your risk capacity alongside your risk tolerance can give you clarity, peace of mind, and a more resilient investment plan. If you’d like to talk through how this applies to your personal situation, I’d be glad to help. Contact me today.

What Is a Financial Plan, Really?

ST. CROIX INSIGHTS

What Is a Financial Plan, Really?

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
calculator, money, and calendar to illustrate taxes and the IRS 10-year rule
Most people think of a financial plan as a set of numbers—spreadsheets, budgets, retirement targets, investment balances. And while those are important, a true financial plan is much more than that.

A financial plan is really a life plan.

It’s about mapping, planning, and living out your values and dreams. It’s a process of putting those dreams out into the world—wanting clarity, and actively seeking it. Whether you’re navigating personal milestones, professional goals, or future ambitions, a financial plan is meant to support the life you truly want to live.

That’s why the first and most important step in creating a financial plan isn’t about numbers—it’s about values and goals.

Take time to define what matters to you—both personally and professionally. What are your goals? What do you want your life to look like in 10, 20, or 30 years? When you get clear on your “why,” the rest of your financial decisions gain direction and meaning. Your values become the compass that guides everything else in your plan.

What is a financial plan?

Once you have a clear plan on your why, it’s time to create a financial plan that helps you reach your goals. A financial plan can evolve over the years, so it’s important monitor and make changes as needed. With this understanding, let’s walk through what a comprehensive financial plan can include:

1. Cash Flow – Living Below Your Means

You can’t pay off debt, invest for the future, or build wealth if there’s no margin. Creating margin means you’re not just surviving—you’re setting yourself up to thrive. It’s about spending intentionally, not impulsively. Living below your means isn’t about deprivation—it’s about freedom. Margin gives you flexibility, reduces stress, and opens doors for generosity and opportunities.

2. Debt Minimization – Or Better Yet, Elimination

Debt can be a tool, but it often becomes a trap for so many. A solid plan involves minimizing and ultimately eliminating unnecessary debt. This frees up your resources to build, grow, and give without the weight of financial obligations holding you back.

3. Investment Planning – A Philosophy, Not a Gamble

Investing isn’t about chasing the hottest stock or timing the market. It’s about having a clear investment philosophy and sticking to it. Understand your buckets—short-term, long-term, and legacy—and invest each according to its purpose. Let your money serve your goals, not the other way around. Most people initially think an investment plan is a financial plan. As we are outlining here, it’s so much more.

4. Retirement Planning – More Than a Number

Yes, retirement planning involves saving enough, but it’s also about purpose. People are living longer, and many want to stay relevant, engaged, and productive well into their 60s, 70s, or beyond. Your savings rate today directly affects your options tomorrow. A good plan gives you choices—not just an end date. Life expectancy on average is 78 years old. We don’t like to think about it, but we need to plan around this number.

5. Tax Planning – Today’s Decisions Echo Decades Later

Taxes may be inevitable, but poor planning doesn’t have to be. The financial decisions you make today—how you invest, save, and withdraw—can have tax implications 30, 40, even 50 years from now. Strategic tax planning isn’t about loopholes; it’s about wisdom and foresight.

6. Insurance & Risk Management – The Overlooked Safety Net

Defensive planning is often the most ignored area of a financial plan… until something goes wrong. Then it becomes the most critical. Proper insurance coverage—life, disability, health, long-term care, and liability—protects your plan from unexpected life events. Don’t wait until it’s too late to discover you’ve made a regrettable decision here.

7. Estate Planning – Generosity Planning

What legacy are you leaving behind? Estate planning is about more than just distributing assets—it’s about preparing the next generation to receive them well. Have you asked yourself what’s the worst that could happen if you leave them wealth? What’s the best? Generosity is a powerful value—but it needs to be planned just like anything else.

Why Work With a Financial Advisor?

Building a financial plan is one thing—sticking to it and adapting it through life’s changes is another. That’s where a trusted financial advisor comes in.

A good advisor doesn’t just crunch numbers or manage investments—they help you connect the dots between your money and your life. They ask the right questions, challenge you to think long-term, and walk alongside you as life unfolds—job changes, family transitions, market ups and downs, and everything in between.

They bring clarity when things feel uncertain, objectivity when emotions run high, and strategy when you need to move forward with purpose.

Ultimately, working with a certified financial advisor gives you more than just a plan—it gives you peace of mind. And that peace of mind allows you to live your life more fully, knowing your financial life is being thoughtfully and faithfully stewarded.

If you’re looking for assistance creating a solid financial plan that takes into consideration your goals and values, reach out for a free no-obligation consultation today.

 

Most people think of a financial plan as a set of numbers—spreadsheets, budgets, retirement targets, investment balances. And while those are important, a true financial plan is much more than that.

A financial plan is really a life plan.

It’s about mapping, planning, and living out your values and dreams. It’s a process of putting those dreams out into the world—wanting clarity, and actively seeking it. Whether you’re navigating personal milestones, professional goals, or future ambitions, a financial plan is meant to support the life you truly want to live.

That’s why the first and most important step in creating a financial plan isn’t about numbers—it’s about values and goals.

Take time to define what matters to you—both personally and professionally. What are your goals? What do you want your life to look like in 10, 20, or 30 years? When you get clear on your “why,” the rest of your financial decisions gain direction and meaning. Your values become the compass that guides everything else in your plan.

What is a financial plan?

Once you have a clear plan on your why, it’s time to create a financial plan that helps you reach your goals. A financial plan can evolve over the years, so it’s important monitor and make changes as needed. With this understanding, let’s walk through what a comprehensive financial plan can include:

1. Cash Flow – Living Below Your Means

You can’t pay off debt, invest for the future, or build wealth if there’s no margin. Creating margin means you’re not just surviving—you’re setting yourself up to thrive. It’s about spending intentionally, not impulsively. Living below your means isn’t about deprivation—it’s about freedom. Margin gives you flexibility, reduces stress, and opens doors for generosity and opportunities.

2. Debt Minimization – Or Better Yet, Elimination

Debt can be a tool, but it often becomes a trap for so many. A solid plan involves minimizing and ultimately eliminating unnecessary debt. This frees up your resources to build, grow, and give without the weight of financial obligations holding you back.

3. Investment Planning – A Philosophy, Not a Gamble

Investing isn’t about chasing the hottest stock or timing the market. It’s about having a clear investment philosophy and sticking to it. Understand your buckets—short-term, long-term, and legacy—and invest each according to its purpose. Let your money serve your goals, not the other way around. Most people initially think an investment plan is a financial plan. As we are outlining here, it’s so much more.

4. Retirement Planning – More Than a Number

Yes, retirement planning involves saving enough, but it’s also about purpose. People are living longer, and many want to stay relevant, engaged, and productive well into their 60s, 70s, or beyond. Your savings rate today directly affects your options tomorrow. A good plan gives you choices—not just an end date. Life expectancy on average is 78 years old. We don’t like to think about it, but we need to plan around this number.

5. Tax Planning – Today’s Decisions Echo Decades Later

Taxes may be inevitable, but poor planning doesn’t have to be. The financial decisions you make today—how you invest, save, and withdraw—can have tax implications 30, 40, even 50 years from now. Strategic tax planning isn’t about loopholes; it’s about wisdom and foresight.

6. Insurance & Risk Management – The Overlooked Safety Net

Defensive planning is often the most ignored area of a financial plan… until something goes wrong. Then it becomes the most critical. Proper insurance coverage—life, disability, health, long-term care, and liability—protects your plan from unexpected life events. Don’t wait until it’s too late to discover you’ve made a regrettable decision here.

7. Estate Planning – Generosity Planning

What legacy are you leaving behind? Estate planning is about more than just distributing assets—it’s about preparing the next generation to receive them well. Have you asked yourself what’s the worst that could happen if you leave them wealth? What’s the best? Generosity is a powerful value—but it needs to be planned just like anything else.

Why Work With a Financial Advisor?

Building a financial plan is one thing—sticking to it and adapting it through life’s changes is another. That’s where a trusted financial advisor comes in.

A good advisor doesn’t just crunch numbers or manage investments—they help you connect the dots between your money and your life. They ask the right questions, challenge you to think long-term, and walk alongside you as life unfolds—job changes, family transitions, market ups and downs, and everything in between.

They bring clarity when things feel uncertain, objectivity when emotions run high, and strategy when you need to move forward with purpose.

Ultimately, working with a certified financial advisor gives you more than just a plan—it gives you peace of mind. And that peace of mind allows you to live your life more fully, knowing your financial life is being thoughtfully and faithfully stewarded.

If you’re looking for assistance creating a solid financial plan that takes into consideration your goals and values, reach out for a free no-obligation consultation today.

Tracking Generosity: Why We Should Measure What We Give Away

ST. CROIX INSIGHTS

Tracking Generosity: Why We Should Measure What We Give Away

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
Dollar cash money with with red ribbon and gift bow on gray background , concept of gift money or bonus

Many of us regularly track our net worth, watching as it fluctuates with market swings, investment gains, and spending habits. Some check it monthly, others quarterly, and a few even keep an eye on it daily. But here’s a thought—why don’t we put the same emphasis on tracking our generosity?

We Measure What Matters

There’s an old saying: “What gets measured gets managed.” If we’re diligent about growing our financial assets, shouldn’t we be just as intentional about tracking how much we give?

We set financial goals for savings, investments, and retirement, but do we set goals for generosity? Imagine if, just like we strive to increase our net worth by a certain percentage each year, we also aimed to increase our giving by the same margin.

Many of us give freely—to our churches, charities, causes we care about, and people in need—and this is honorable and worth appreciating. However, without tracking it, it’s easy to lose sight of just how impactful our generosity is—or could be.

The True Measure of Wealth

We often think of wealth in terms of accumulation, but real wealth is also about contribution. Proverbs 11:25 says, “A generous person will prosper; whoever refreshes others will be refreshed.”

Money is a tool. It can be hoarded, or it can be used to bless others and create lasting impact. When we pass from this life, we won’t be remembered for how much we amassed—but we will be remembered for how much we gave.

The Practical Side: How to Track Generosity

If you’ve never thought about measuring your giving, here are a few simple ways to start:

  1. Create a Giving Log: Just like you track expenses or investments, keep a record of your giving. This can be a simple spreadsheet or an app that helps you track charitable contributions.
  2. Set a Giving Goal: Challenge yourself to give a certain percentage of your income each year, and review your progress just as you would your financial goals.
  3. Celebrate the Impact: Instead of focusing just on the dollar amount, look at the lives changed through your generosity. If you support a mission, nonprofit, or scholarship fund, keep a record of the real-world difference your giving is making.
  4. Teach Generosity: If you have children, include them in conversations about giving. Show them that money isn’t just for keeping—it’s for sharing.
  5. Give with Intention: Rather than giving reactively (only when prompted), plan out your generosity in advance so it’s a built-in priority, not an afterthought.

A Shift in Perspective

Imagine checking in on how much you’ve given just as often as you check your financial portfolio. How would that change your perspective on wealth?

Would you be more inspired to give more freely? Would you feel a greater sense of fulfillment knowing that your wealth isn’t just growing—but that you’re actively making a difference?

True financial freedom isn’t just about reaching a number—it’s about having enough to live and enough to give. So as you track your net worth, take a moment to track your generosity as well. You may find that what you’ve given away brings far greater joy than anything you’ve stored up—and it doesn’t hurt come tax time either!

 

Many of us regularly track our net worth, watching as it fluctuates with market swings, investment gains, and spending habits. Some check it monthly, others quarterly, and a few even keep an eye on it daily. But here’s a thought—why don’t we put the same emphasis on tracking our generosity?

We Measure What Matters

There’s an old saying: “What gets measured gets managed.” If we’re diligent about growing our financial assets, shouldn’t we be just as intentional about tracking how much we give?

We set financial goals for savings, investments, and retirement, but do we set goals for generosity? Imagine if, just like we strive to increase our net worth by a certain percentage each year, we also aimed to increase our giving by the same margin.

Many of us give freely—to our churches, charities, causes we care about, and people in need—and this is honorable and worth appreciating. However, without tracking it, it’s easy to lose sight of just how impactful our generosity is—or could be.

The True Measure of Wealth

We often think of wealth in terms of accumulation, but real wealth is also about contribution. Proverbs 11:25 says, “A generous person will prosper; whoever refreshes others will be refreshed.”

Money is a tool. It can be hoarded, or it can be used to bless others and create lasting impact. When we pass from this life, we won’t be remembered for how much we amassed—but we will be remembered for how much we gave.

The Practical Side: How to Track Generosity

If you’ve never thought about measuring your giving, here are a few simple ways to start:

  1. Create a Giving Log: Just like you track expenses or investments, keep a record of your giving. This can be a simple spreadsheet or an app that helps you track charitable contributions.
  2. Set a Giving Goal: Challenge yourself to give a certain percentage of your income each year, and review your progress just as you would your financial goals.
  3. Celebrate the Impact: Instead of focusing just on the dollar amount, look at the lives changed through your generosity. If you support a mission, nonprofit, or scholarship fund, keep a record of the real-world difference your giving is making.
  4. Teach Generosity: If you have children, include them in conversations about giving. Show them that money isn’t just for keeping—it’s for sharing.
  5. Give with Intention: Rather than giving reactively (only when prompted), plan out your generosity in advance so it’s a built-in priority, not an afterthought.

A Shift in Perspective

Imagine checking in on how much you’ve given just as often as you check your financial portfolio. How would that change your perspective on wealth?

Would you be more inspired to give more freely? Would you feel a greater sense of fulfillment knowing that your wealth isn’t just growing—but that you’re actively making a difference?

True financial freedom isn’t just about reaching a number—it’s about having enough to live and enough to give. So as you track your net worth, take a moment to track your generosity as well. You may find that what you’ve given away brings far greater joy than anything you’ve stored up—and it doesn’t hurt come tax time either!