The 10% Solution

Although investment diversification is no guarantee against market loss, we believe it is wise for investors to diversify their investment dollars.  Diversification is a basic investment principal used by professionals throughout history to spread investment and market risks. The 10% Solution provides a systematic method to help more churches. The Strategy is used to diversify a Church Bond portfolio to not only spread investment risk over different churches, but allocates investment dollars to help a larger number of churches carry out the great commission rather than limiting investment to just one or two churches. Our investors tell us they like the idea of spreading their investment dollars to diversify risks AND help more churches spread the Good News to a broken world.

Implementing the 10% Solution is quite easy. The first step is to deposit investment funds into your account using our omnibus money market mutual fund.  The next step is to select various Church Bond offerings in which no more than 10% of your designated Church Bond funds will be invested in any one church.  Once you have purchased bonds in at least ten separate bond offerings, your portfolio will be diversified for you and will provide capital to at least ten different congregations.  Another great benefit about this strategy is that small investors as well as large investors can utilize the same concept!

The 10% Solution offers ways you might diversify your portfolio to earn a fair rate of return and reach out to help more churches. Here are some of the ways your investment dollars might be diversified using the 10% Solution:

Geographically

Great Nation is licensed in 43 states and the District of Columbia. We underwrite Church Bond offerings from the state of Washington in the northwest all the way to Florida in the southeast.

Denominationally

We underwrite Church Bond offerings for a large spectrum of denominations as well as independent churches.

Interest Rates

Since most Church Bond offerings contain varying interest rates depending upon the length to maturity, it is possible to achieve a very reasonable return on your overall investment portfolio.

Maturity Dates

Church Bonds offer serial maturity dates that allow you to diversify your portfolio by maturity date. For some investors this means maintaining a certain level of liquidity using bond maturities to coincide with their cash needs. For others, this means obtaining the highest interest rate available using long term bonds.

Because Church Bonds offer serial maturities every six months and provide increasing interest rates for longer investment periods, they are well suited for structuring portfolios for minor children and grandchildren. If a child's portfolio is intended to provide college funding, it is possible to select Bonds that will mature before each college semester to pay tuition or other expenses. The Uniform Gifts to Minors Act provides some very compelling tax advantages you should consider when starting a minor's Church Bond portfolio.

When considering your IRA, you will generally find it easier to forecast your retirement nest egg since interest rates on Church Bonds are fixed and not variable. Of course there is always the possibility bonds may be called prior to maturity which may affect accurate forecasting, but a stated rate of return and time period eliminates a lot of up-front guess work.

Bond Type

Did you know there are two types of Church Bonds underwritten by Great Nation?  The two types are 1) simple interest bonds and 2) compound interest bonds.

Great Nation underwrites simple interest bonds that typically offer quarterly interest payments.  Retired investors and investors wanting current income enjoy being paid interest every three months rather than semi-annually like traditional corporate bonds.

Compound bonds offer growth since their value is compounded every six months.  We all know the wonders of compound interest when it comes to building a nest egg in your IRA!  Believe it or not, we have many investors who utilize both types of bonds in their Church Bond portfolio.

Remember

Great Nation's 10% Solution is no guarantee of positive results and does not eliminate the potential for loss, but it is designed to (1) enhance the overall return of a Church Bond portfolio through apportioning some investment dollars to higher yielding, longer term maturities, (2) wisely diversify a portfolio over multiple churches, (3) anticipate liquidity needs using shorter term maturities so cash from maturing bonds will be available when planned and(4) assist more churches in reaching their goals.

Church Bonds offered through Great Nation:

Are subjected to our financial analyses, evaluation, and experience;

Have features that help you employ sensible investment portfolio strategies; and,

Are collateralized with professionally appraised real estate.

If you agree the 10% Solution is a sensible approach to investing in what we believe is one of the most worthy segments of our society, please let us know! We would love to help you build a Church Bond investment portfolio that not only makes sense, but one we believe provides a return on your investment that cannot always be measured simply with dollars and cents. Our licensed securities agents are ready to explain the risks and other factors to help you decide whether Church Bonds should be in your investment portfolio.

Church bonds contain risks. Church revenues come primarily from member charitable contributions.  In the event of a loss of membership or other factors, there is no assurance sufficient funds will be available to pay investors.  The real estate collateral may not be sold in an amount sufficient to fully repay investors in the event of a church's financial failure.  For other risks to consider, please see "Risks" under "Church Bonds" on this website.