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Frequently Asked Questions

Below you will find commonly asked questions. If you need more assistance, or have additional questions, please give us a call at 800.846.7526.

Please choose a subject on the right to find answers to your questions.

  • Can I really make a difference by investing in a moral way?

    Absolutely! According to "A Guide to Mutual Funds"1, there are approximately $15.9 trillion dollars invested in mutual funds. Approximately 68%2 of that amount is invested by Christians. This represents 41% of all money invested in securities. Activists have been using their power as stockholders to impact corporate policy for years. Many activist movements represent less than 1% of the population. With less than 1% of our population effecting change within our nation, imagine the possible impact of Christians (holders of 41% of securities) investing with purpose beyond monetary return. Moral investing is a proactive, inoffensive way of making our voice heard where it matters the most, in the deep pockets of corporate America.
    1. 2015 Investment Company Fact Book, 55th Edition, Investment Company Institute, Washington, DC (www.ici.org)
    2. 2014 Religious Landscape Study, conducted June 4-Sept. 30, 2014. Pew Research Center (www.pewforum.org)

  • Does Timothy Plan only invest in Christian companies?

    No, they invest in publicly traded companies that pass our filters.

  • How does Timothy Plan research companies?

    Timothy Plan uses a third-party affiliate, eVALUEator, to filter all of our funds. eVALUEator continues to provide the most effective research tools in the industry to filter our investments according to moral and biblical principles. For more information on the research or filtering criteria used, please visit eVALUEator.

  • Why filter for alcohol when many faiths and Christians are okay with alcohol in moderation?

    We understand there are many faiths where it is perfectly acceptable to consume alcohol, and it is even used in many worship services. The reason alcohol is on Timothy Plan's filter list is because there is no way to regulate the moderate use of alcohol. Alcohol abuse continues to be a significant issue for many conscious investors. While it is unlikely we will be hurt by not investing in alcohol, it is possible we could hurt our fellow Christians and conscious investors by investing in alcohol. Therefore, in order to be supportive of those who object, and to hold companies accountable for disregard of the potential harm, alcohol remains one of our filters.

  • It's impossible to be 100% pure, why should I try?

    To quote journalist Mary Scott Nabers who wrote an outstanding article on moral investing, "When God commands, 'Do not share in the sins of others, keep yourself pure' (I Timothy 5:22), he does not add, 'Unless it's impossible; then give up trying altogether.' While Christians may never be 100% pure in any given area, the inability to achieve perfection has never excused us from an honest and enthusiastic pursuit." Source: //maryscottnabers.com

  • What if a company currently in a Timothy Plan portfolio begins violating one of their filters?

    It is possible that a company we hold has a policy change, or takes part in a new practice, that puts it in violation of one of our filters. Should this occur and be verified, we will divest the shares of that company according to proper divestment procedures, as dictated by the SEC. We will not hold shares of any company that violates one or more of our filters.

  • Why do we filter the manufacturers and distributors of alcohol and tobacco, but not the retailers?

    Timothy Plan has gone to the source of the problem. It is the advertising practices, and the disregard of potential harm, exhibited by the manufacturers of these products with which we take issue. Therefore, Timothy Plan does not filter out retailers. We, as Christians, have a choice whether or not to purchase goods from a store or restaurant that offers these products. You also have a choice whether or not to be a co-owner of manufacturers or distributors of alcohol and tobacco. Timothy Plan family of funds gives you a clear choice.

  • As a good steward of God's money, shouldn't I seek the highest return, no matter what, so I can give more to His ministries?

    As a good steward, yes, you should seek to increase your earnings to help benefit the Kingdom. If you have to do that by being unfaithful to God's word by aiding practices contrary to the teachings of scripture, the Kingdom has gained nothing. God doesn't need your money; He needs your faithfulness to Him. He will take care of the rest. He will also choose how He blesses you for your faithfulness, and it will not always be measured in dollar signs. The Bible has over 2,350 verses devoted to money. Jesus spoke more on money than on heaven. Why? As man holds onto money, he tends to rationalize his decisions and choices about money to benefit himself the most. Observe where a man spends his money, and you'll see his heart.

  • Doesn't filtering greatly reduce the potential for good returns?

    There are approximately 9,000 publicly traded companies in which to invest. Timothy Plan avoids just over 800 companies out of the 9,000! This leaves just over 4 of the universe available from which our managers can construct a competitive portfolio. Also, since fund managers market themselves to other clients based on their reputation in the industry and their past performance, if they believed they would lower their composite returns by managing a filtered fund, they would not do it. This has simply not been the case. Jim Awad, our Small-Cap Value manager has stated, "There is not a penalty for choosing to morally invest."
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  • I currently have a 401(k). Can I get Timothy Plan as a fund choice in my 401(k)?

    If the fund family is not currently an option, you will not be able to unless the company you work for is willing to place Timothy Plan on their 401(k) platform. We encourage you to go to your human resource department and request a morally responsible fund choice. Other groups and individuals have done the same with their causes and prevailed. At least your voice will be heard, and when voices are reasonable and passionate, you may win. Unfortunately, Christians have proven to be somewhat passive in their requests for a moral fund.

  • Should I stop contributing to my 401(k) to invest with Timothy in an IRA?

    The difficulty you face is losing the matching benefit you receive in most 401(k)s. That is a personal decision between you and God. Timothy Plan does not encourage anyone to stop contributing to a 401(k), unless you feel compelled to do so. One option is to contribute only the amount to which the match will be of benefit. For instance, if the company matches up to 6% of what you contribute, contribute to receive the maximum, and invest any excess in a Traditional or Roth IRA. (Review the qualifications and restrictions on both before doing so.)

  • How do I know Timothy Plan is held accountable for its business practices?

    Timothy Plan falls under the same blue-sky laws, rules, regulations and guidelines as any other mutual fund. They are accountable to the SEC (Securities Exchange Commission) as well as FINRA (Financial Industry Regulatory Authority). An independent CPA Firm audits our funds annually and they are subject to periodic audits performed by the SEC and FINRA.

  • How is Timothy Plan different from other mutual funds?

    Before 1994, there were no mutual funds that addressed the moral issues that concerned Bible-believing Christians. Social funds had been used to address some issues that concern many Christians, such as alcohol and tobacco production, along with gambling. However, there was not a single fund that filtered for abortion, pornography, anti-family entertainment and many of our other filters. Timothy Plan was the first fund family to apply these filters to its portfolios.

  • Is Timothy Plan affiliated with any particular denomination?

    Timothy Plan is a non-denominational organization. We have a broad spectrum of investors from all faith backgrounds. We are here to offer an investment vehicle for those who have concerns about one or more of our moral filters.

  • Is Timothy Plan FDIC insured?

    No. Banks offer FDIC insurance, because they use your money once you put it on deposit with them. Mutual funds do not need to be FDIC insured, because the fund does not ever use your money. Your money purchases securities selected by the fund’s money manager on your behalf.

  • What would happen if the Timothy Plan ceased to operate? Would I lose my money?

    Timothy Plan does not hold your money, nor does anyone at Timothy Plan have access to it. When you make an investment, your money is put into a special custodial account with a commercial bank. The bank pays for securities, purchased by the fund manager, out of this custodial account, and vice versa whenever securities are sold. If Timothy Plan were to dissolve tomorrow, you would still own your pro-rated portion of the underlying securities as well as any uninvested cash. Therefore, your shares could be liquidated, or transferred, to any other mutual fund, or investment vehicle, of your choosing.

  • Where did they get the name Timothy Plan?

    Timothy Plan is founded on the biblical principles taught in 1 Timothy. Key verses include 1 Timothy 5:8 that speaks about taking care of our families, and 1 Timothy 5:22 that warns against partaking in the sins of others.

  • Who manages the funds at Timothy?

    Timothy Plan provides investors with some of the best money managers in the financial industry. Each fund is managed by an established, highly respected sub-advisor, with a proven performance history. Each of these sub-advisors has been professionally managing money for more than twenty years and has assets under management in the billions of dollars for a variety of large institutional clients.
Christian investors holding puzzle pieces getting answers to their questions about our Christian investment funds.