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9781935952886

Five Pillars of Prosperity Essentials of Faith-Based Wealth Building

by
  • ISBN13:

    9781935952886

  • ISBN10:

    1935952889

  • Format: Paperback
  • Copyright: 2014-04-08
  • Publisher: White Cloud Press
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Summary

Five Pillars of Prosperity: Essentials of Faith-Based Wealth Building by Dr. M. Yaqub Mirza provides readers with a balanced and sensible approach to financial planning and security. The book is unique in that it is written by a leading Muslim financial expert who draws on Islamic teachings while showing how these Islamic values are consistent with Jewish and Christian values. Though the primary audience may be American Muslims, anyone interested in financial security will find this practical guide helpful in making wise financial decisions.

Dr. Mirza presents a powerful and provocative case for arranging one’s life — and the material pursuits — in ways that not only benefit the reader but also society at large. He shows how the attainment of wealth and prosperity can be achieved by following five key activities: Earning, Saving, Investing, Spending, and Giving.

The author closes with a discussion on wealth building strategies and wealth preservation. Additionally, he has provided a section of resources and an extensive bibliography for further reading. The book is rich in investment strategies and advice and though the topic is often complex Dr. Mirza’s writings are clear and accessible to a general audience.

Author Biography

Dr. M. Yaqub Mirza is President and CEO of Sterling Management Group, Inc. and Sterling Advisory Services, Inc. Sterling negotiates mergers, acquisitions and sales of various sized companies located in different parts of the world. Sterling and its affiliates have managed investments in the United States, Canada, Chile, Egypt, Malaysia, Turkey and Zimbabwe. In addition, Dr. Mirza has more than 30 years of experience in stock investments and portfolio management. He is a member and Vice Chairman of the Board of Trustees of Amana Mutual Funds, which is registered with the Securities and Exchange Commission as an open-end investment company. He also serves as Chairman of its Executive Committee and is a member of its Audit and Compliance Committee. Assets under management are nearly $3.5 billion. Dr. Mirza is a member of the Board of Directors, University Islamic Financial Corporation and is a member of the Board of Trustees, George Mason University Foundation, Inc. He also serves on the Board of numerous other companies, including several not-for-profits. Dr. Mirza holds a M.Sc. from University of Karachi (1969), a Ph.D. in Physics (1974) and M.A. in Teaching Science (1975) from the University of Texas at Dallas. Dr. Mirza is a United States citizen and has resided in Herndon, Virginia area for the past 28 years.

Table of Contents

Table of Contents

Acknowledgements 10
Foreword 11
Preface 13
Introduction 14
Faith and Financial Activities 20
Five Pillars to Prosperity 31

Chapter 1: Pillar One: Earning 34
Entrepreneurship 41
8 Qualities of Success 45

Chapter 2: Pillar Two: Saving 49
Savings leads to financial freedom 49
Budget to Save 60
DEVELOP A BUDGET AND LIVE BY IT 61
Track Day-to-Day Spending 63
Get a Handle on Income and Expenses 65

Chapter 3: Pillar Three: Investing 67
Fundamentals to Investing 67
The Power of Compounding 67
Faith-Based Investing 71
Advice for the Muslim Investor 79
Getting Started 81
The Role of Stocks in a Muslim’s Portfolio 82
Mutual Funds: A Possible Solution 83
Consistent Approach 83

Chapter 4: Pillar Four: Spending 86
Spending Intelligently 86
The Debt-Free Advantage 86
Worksheet for Hajj Financial Planning 90
Table 2: INFLATION FACTOR 91
Table 3: INVESTMENT FACTOR 91
College Education 91
The Gift of a Future 93
The Sooner You Start, the Better It Is 96
Worksheet for Financial Planning for Higher Education 99
HOW MUCH SHOULD BE INVESTED 99
SCHEDULE C: Periodic Investment 99

Chapter 5: Pillar Five: Giving 100
Sharing the Gifts of God with Others 100
Understanding Zakah 101
Limit of Exemption (Nisab) 103
Who Deserves Zakah? 104
Paying Zakah 106
Calculating Zakah 107
Cash and Cash Equivalent 108
Risk Investments: Shares and Mutual Funds 109
Buildings, Factories, and Businesses (Non-Trading) 109
Retirement Accounts, Life Insurance Policies, and Annuities 110
ZAKAH CALCULATION FORM 113
Leaving a Legacy of Hope 115
Donor-Advised Fund (DAF) 115
Charitable Remainder Trust (CRT) 116
Family Foundation 117

Chapter 6: Key Wealth-Building Strategies 120
Grow Your Assets 121
Wealth Preservation Strategies 122
Wills 122
Inheritance 124
The Revocable Living Trusts 130
Protect Your Hard Earned Assets 131
My Heartfelt Wish for You... 133

Resources 134
Bibliography 141
Glossary 145
About the Author 145

Supplemental Materials

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