Providing for our needs oftentimes planning and saving and may run the range from an Emergency Fund to retirement planning. BFI has worked carefully to provide investment options that both provide an acceptable rate of return, minimizes risk, and helps fuel Kingdom Growth. A more complete description of each account type is below.
All BFI accounts can be owned jointly or singly and a beneficiary form may be added for either an individual or charitable cause.
We believe strongly that investing in churches & ministry organizations is more than the numbers. We believe that these organizations, supplied by the generosity of God’s people, must not only get a reasonable rate of return, but avoid unnecessary risk and, most of all, invest with a strong belief that our dependence is ultimately upon God, not in temporary financial investments. This means that we should clearly identify the reasons a ministry invests — either A) Emergency Cash, Ministry Reserve (limited in scope), B) defined project (such as a building fund), or C) ministry endowment (where the earnings support a clearly defined objective such as missions or scholarships).
The investment options are described below.
Church and Institutional Investment
Investing for a church is a particular challenge, maintaining a balance between prudent planning versus unspiritual independence from God’s provision. BFI provides individual consultation with finance and stewardship committees from IBSA churches, helping them with wise church investing choices and providing counsel about communicating this to the larger congregation. A church’s decisions about saving and investing should encourage the stewardship of its member, not discourage or diminish the generosity of others. To learn more about this program, download this document.
Cash Management (both individual and institutional)
BFI offers a high yield cash management (1% APR) with full liquidity and 24-48 hour account access. BFI can also establish an ACH (Automated Clearing House) arrangement with your bank for even faster access to your funds. Beginning July 1, 2021, BFI will not be charging fees for cash management accounts.
BFI Bonds
BFI offers defined maturity bonds to support Illinois Baptist church capital projects. Their returns are:
| Year | Return Rate |
|---|---|
| 1 | 1.25% |
| 2 | 2.25% |
| 3 | 3.0% |
| 4 | 3.6% |
| 5 | 4.25% |
BFI bonds are secured by a first position mortgage and a loan is never made for greater than 50% of the property value. Further, the loan payments may not receive 25% of a church’s unrestricted income. BFI bonds are sold in $1,000 increments and have been default-free since their inception. Long-term bonds may be held in either Roth or Traditional IRAs as well. Interest may be accumulated in cash management, distributed, or assigned to a charitable fund. BFI bond issue availability will be announced through our monthly newsletters and online. Below, check out a brief explanation of how BFI bonds work.
Longer-Term Fixed Income Portfolio for Individuals, Churches, and Organizations
An investment characterized by low risk fixed income assets (primarily high-grade municipals, corporate or government bonds, and a limited amount of preferred stock), need a reliable income stream (or have the ability to reinvest), and do not anticipate needing a return of principal for an extended period of time, the Bank of Springfield provides a portfolio for BFI investors that has a current yield of 4-5%. Fees are .5% (50 basis points) for participation in this fund. LTFI funds may be a general post-tax account or held in a Roth or Traditional IRA. Interest may be reinvested in the fund, distributed, or directed to a charitable giving account.
BOS/LPL Custodial Ind Long Term Fixed Income (Yield-Net)
| Year | Interest Rate |
|---|---|
| 2020 | 3.99% |
| 2019 | 5.01% |
| 2018 | 5.3% |
| 2017 | 6.04% |
| 2016 | 6.05% |
| 2015 | 6.3% |
| *Average historic return last 8 years | |
2018 Yield Net of Fees
BFI Blended Fund
The Blended Fund seeks to increase income while still realizing the traditional long-term appreciation of the U.S. equities market. 50% of the fund is in BFI’s LTFI Portfolio (see above). 50% is comprised of the SPAI, a publicly traded fund composed of 53 U.S. equities chosen by their increasing dividend yields for the last 25 years. The target yield for the Blended Fund is 7.5%. Fees are 50/100 of a percent (50 basis points) for sub $1,000,000 accounts and 35/100 of a percent (35 basis points) for accounts of $1,000,000 or greater. Blended funds may be a general post-tax account or held in a Roth or Traditional IRA.
| Year | Total Return |
|---|---|
| 2020 | 13.5% |
| 2019 | 7.16% |