We believe that God allows us to manage His resources for several reasons:
- To take care of our needs
- To care for those who depend on us
- To find the most we can to invest in His Kingdom work.
BFI works carefully to provide investment options that yield an acceptable rate of return, minimize risk, and help to fuel Kingdom Growth. All BFI accounts can be owned jointly or singly and a beneficiary form may be added for either an individual or charitable cause.
Cash Management
BFI offers a high yield cash management (1.5% 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. BFI does not charge fees for cash management accounts.
Term Investments
BFI’s short-term (3 – 12 month) investment options offer a great fixed return with minimal risk. Most short-term funds are invested in US Treasury products and offer a fixed return as long as the securities are held to maturity.
| December 2022 Rates | |
|---|---|
| Cash | 1.50% |
| 3 Month | 3.00% |
| 6 Month | 3.25% |
| 9 Month | 3.50% |
| 12 Month | 3.75% |
BFI Bonds
BFI offers defined maturity bonds to support church and ministry 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 on the property
- A loan is never made for greater than 50% of the property value.
- Loan payments may not exceed 25% of a church or ministry’s unrestricted income.
- BFI bonds have been default-free since their inception
BFI bonds are sold in $1,000 increments. 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 website, social media, email, and printed publications.
Long Term Fixed Income (LTFI) Portfolio
BFI’s LTFI portfolio is a great investment for clients who:
- Wish to invest in low risk fixed income assets (primarily high-grade municipals, corporate dentures, and a limited amount of church mortgages and dividend-paying equities)
- Need a reliable income stream (or have the ability to reinvest)
- Do not anticipate needing a return of principal for an extended period of time
- For a complete listing of all holdings as of the last quarter, click here.
The yield during 2022 is estimated to be between 4-5% (net). Fees are .5% (50 basis points) for participation in this fund. LTFI funds may be a general post-tax custodial account or held in a Roth or Traditional IRA. Interest may be reinvested in the fund, distributed, or directed to a charitable giving account.
Historic Performance
| YTD | 2021 | 5 Year | 10 Year | |
|---|---|---|---|---|
| Yield | 3.71% | 3.99% | 4.46% | 5.50% |
| Total Return | -8.47% | 8.20% | 8.25% |
Blended Fund
BFI’s 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 composed of KNGIX, a publicly traded fund composed of 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.
Historic Performance
| YTD | 2021 | 5 Year | 10 Year | |
|---|---|---|---|---|
| Total Return | -8.69% | 14.66% |