The Eternity Portfolio by Alan Gotthardt

‘The Eternity Portfolio’ by Alan Gotthardt is a renowned book that blends financial advice with Christian principles. It has gained recognition for its unique approach to managing finances in a way that honors spiritual values.

Book Details:

Title: The Eternity Portfolio
Author: Alan Gotthardt
Genre: Finance/Christian Literature
Publication Date: 2004
ISBN: 978-0802413763

About the Author:

Alan Gotthardt is a respected financial advisor with a deep commitment to integrating faith and finance. His expertise in wealth management and his devout Christian beliefs make his insights particularly valuable for those seeking to align their financial decisions with their spiritual values.

Summary of ‘The Eternity Portfolio’:

The book delves into how Christians can manage their wealth in a way that honors God. Gotthardt discusses the importance of balancing the pursuit of wealth with spiritual growth and stewardship. He offers practical advice on investing, budgeting, and giving, all framed within a biblical context.

Selected Passages Randy Highlighted in the Book:

The more we understand God’s priorities for His resources and what true riches are, the more we realize that when we give, we are investing. Investing for His glory and our eternal reward. (xxii)
Vision motivates a person to give up now for the future. (3)
In talking to Christians over the years, I have found that faithful managers share a set of core beliefs related to their stewardship responsibilities:
1. God owns everything and controls the distribution of wealth.
2. We must all give an account of our stewardship.
3. The pursuit of material riches is not a valid goal in and of itself.
4. God has two objectives for money.
  1. … invest in family and invest in others. (6—9)
We are reminded of this obligation in 1 Timothy 5:8: “But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.” (10)
Giving is the ultimate long-term investment. It just made sense. Investment returns well above what could ever be found elsewhere, no risk of default, returns compounded forever, benefits to be enjoyed even more after this life… wow! It may have taken me a while to catch on, but now the idea had my attention. (17)
I feel the obligation to give based on at least three realities in my life. First, I give out of a sense of gratitude for what God has done for me and how He has provided for my needs. Second, I give to show my love for God in worship of Him. Third, I give as a tangible fulfillment of my responsibility to love other people, to help provide for their needs. Each of these is a biblical obligation. According to the Bible, these sacrifices are pleasing to God. Hebrews 13:16 is a great example of this: “But do not forget to do good and to share, for with such sacrifices God is well pleased.” (19)
Nothing in this book should be construed to advocate the so-called “prosperity theology” of giving. God has not promised to give you a Lexus, a beach house, or an easy retirement if you are faithful in giving. He has not even promised to reward you in this lifetime. Although it is abundantly clear that we will be rewarded based on our faithfulness, what is not as clear is exactly what the nature and timing of those rewards will be. (23)
Let’s look at some instructions Paul sends to Timothy for the church at Ephesus:

Command those who are rich in this present age not to be haughty, nor to trust in uncertain riches but in the living God, who gives us richly all things to enjoy. Let them do good, that they be rich in good works, ready to give, willing to share, storing up for themselves a good foundation for the time to come, that they may lay hold on eternal life. (1 Timothy 6:17-19) (26)
These verses, combined with many others, lead to an astonishing but unavoidable conclusion: We have the ability to influence our eternity in heaven based on the faithful use of money on earth, specifically in the area of giving. (28)
Are you open to the possibility that God may have a plan for you to give more than you ever thought you could or would? How would He communicate that to you? How would you accomplish it? (31)
Planning makes you a cheerful giver.
Those who plan their giving no longer have to decide whether to give or spend each time an opportunity is presented. They are energized and joyful when looking for investments because the money is already designated; it is no longer available for living expenses. The question then becomes: “Should I invest in this particular opportunity, and if so, how much?” (36)
Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. (39)
Our overriding motives for giving should be a loving response to Christ’s love for us and a tangible expression of our love for others. (39)
We should have a regular and proportionate plan for our ongoing investment, but at times we will be led to make extraordinary investments in opportunities that God reveals. (41)
Giving should be motivated by love, be done regularly, cheerfully, and discreetly; and be done in proportion to your wealth. (41)
No matter how you calculate it, there is a fundamental, inverse relationship between how much you spend and much you can give. (48)
Typically, once someone understands the benefits of investing for retirement, he or she begins to look for opportunities to invest as much as possible….
In the same way, once we realize the benefits of giving, we should be looking for every opportunity to invest in our Eternity Portfolio. The first step is to prayerfully and thoughtfully establish the funding requirements for our Family Portfolio. When we do that, the balance will be freed up for the investment with the greatest long-term potential—the Eternity Portfolio. We are then in a position to be used by God as a pipeline for His resources to bless others. I call this the “exponential generosity” method of funding. (49)

Exponential generosity is based on the supposition that at some level of financial blessing, it is no longer about me, and the future rewards from giving are far more valuable than the gratification of current spending. In other words, as God “overflows my cup” financially, I stop looking for a bigger cup and allow the blessings to flow to others. (49)
In order to develop a customized exponential generosity schedule, you need to answer two foundational questions:
1. How much is enough for now? (current living expenses)
2. How much is enough for good? (future living expenses) (53)
While you work out the shortfall, I would still strongly recommend that you start your investment in the Eternity Portfolio, I have heard many stories of people in that exact situation who started giving and found their way out of financial crisis much sooner than expected. (55)
There will be times when gifts should be made that are not tax deductible. It is the eternal reward that must be in view, not simply income-tax savings. (58)
Remember: the money you spend on yourself is money you don’t have available to give. The challenge is to learn contentment so that at whatever place you are, you have enough. (59)
Now we come to the annual investment in the Eternity Portfolio. This is the amount that is set aside each year for your giving strategy. As a baseline measurement, we will start this investment at 10 percent of total income. We then need to determine both when and how much our giving can be increased. (64)
As a conservative rule of thumb, some financial advisors like to plan for an individual to withdraw no more than 4 percent of his or her retirement assets annually… there is almost no probability of an individual running out of money with a 4 percent withdrawal rate. (81) [RP: This rule may no longer be true. Some advisors suggest that the percentage could be as low as 1.9%!]
Based on the overwhelming coverage of the topic in Scripture, I can only conclude that God really wants us to give to the poor. In no other specific area of giving do we see such repeated promises of blessing for obedience and warning for failure. God wants us to take the time and invest resources to help those who cannot help themselves and who will not be able to reciprocate. (107)
God is the main reservoir of all material riches. The conduction principle is God’s big plan for giving: to channel those resources through faithful managers to others. He has millions of “faucets” around the world where the “water” is needed. Your position is to be a conduit or pipeline within the cycle. (154)

The proper alignment of God’s purpose in your life with your relationships and your resources brings ultimate fulfillment.

The opportunity is before you: maximum growth investing. Really long-term investing. Guaranteed investing. Rewards beyond your imagination that last forever. Don’t miss out. Don’t drift through life living up treasures on earth, seeking a reward that forever remains just over the horizon. Of the hundreds of millions of people who have ever lived, only a precious few have ever had the opportunity to impact eternity this way. You will be among the most fortunate if God uses your life and your Eternity Portfolio for His kingdom. Grasp hold and hang on tightly to that which is life indeed. (160)

Who Would Benefit From This Book?

‘The Eternity Portfolio’ is ideal for Christians aged 25-45, especially those interested in managing finances in a God-honoring way. It appeals to readers seeking a blend of practical financial advice and spiritual wisdom, including those looking for books on ethical investing and Christian stewardship.

Popular Quotes from ‘The Eternity Portfolio’:

“Wealth is not to be idolized, but used as a tool for God’s purpose.”
“Investing is not just a matter of profit, but of principle.”
“Giving is not just an act of charity, it’s an act of worship.”
“Our financial decisions reflect our spiritual priorities.”
“Building a legacy is not just about wealth, but about values passed on.”

Related Books:

“The Treasure Principle” by Randy Alcorn
“Your Money Counts” by Howard Dayton
“Managing God’s Money” by Randy Alcorn

Readers who enjoyed “The Eternity Portfolio” might also find value in Bob & Linda’s book: Simple Money, Rich Life. Find the connections between financial principles and modern financial strategies to enrich your own financial life!