Two weeks ago I introduced you to your new generation. No longer are we Millennials, Gen Xers or Baby Boomers. We are now united in our responsibilities towards both our parents and kids at the same time. We are the Sandwich Generation. And being a part of this generation can be pretty rough.
It can be financially, emotionally, and physically draining to have your kids and parents both depending on you. Luckily, there are some things that you can do to ease the burden. Last week, we saw how understanding your options, setting clear expectations and boundaries, and making a plan can look when it comes to college-bound kids. Now let’s see how those same principles apply to your parents:
Last week, we discussed what it means to be a member of the Sandwich Generation, those adults who are responsible for bringing up their own children and for the care of their aging parents. We discussed how hard it can be to navigate caring for two very different generations without risking your relationships, finances, or sanity.
Today, we are going to talk about the younger generation, the bottom bread in the sandwich. While strollers and soccer clubs can be pretty spendy, for most parents their greatest financial burden comes when it’s time for their kids to go to college. This is where many parents really mess up their finances and put their own futures at risk.
The GOP released their highly anticipated tax reform bill, the Tax Cuts and Jobs Act, today. Many pastors have been biting their nails in anticipation of how the "simplification of the tax code" might affect the clergy housing allowance or the Form 4361 Social Security exemption.
How Tax Reform Will Affect Pastors Specifically
The 429-page document says nothing about either the clergy housing allowance or the Form 4361 Social Security exemption. That means that if it were to pass in its current form, neither of these pastoral perks would be affected. The bill will probably be changed a lot before it is able to pass both the House and Senate, but pastors can breath a sigh of relief that they are not a part of the discussion.
The only part of the Act that does affect pastors specifically is the repeal of the Johnson Amendment. This was the law prohibiting churches from getting involved ...
People over 50 are eligible to make extra contributions to their 403(b) plans. However, some plans even let younger people make extra contributions. Here is everything you need to know regarding eligibility, limits, etc. for making extra contributions to your 403(b).
Last week I introduced you to a little-known alternative to health insurance, medical sharing plans. Depending on your situation, they could be an affordable alternative to traditional health insurance.
There is no set standard for how these ministries work, each is unique in its rules and structure. Here are the details on the top four programs:
Affordable Care Act mandates, growing deductibles, and skyrocketing insurance premiums have left many independent pastors scrambling for an answer to their family's health care needs. Luckily, there is a more affordable alternative to health insurance: medical cost sharing plans.
A lot of people treat budgets like New Year’s resolutions. They are lofty and unrealistic goals with only an 8% chance of becoming reality. But that’s not how it’s supposed to be.
Budgets are supposed to be personalized money management tools that help you take control of your finances. If you don’t have a greater sense of control and empowerment, then your budget isn’t working.
If you don’t have the kind of budget I’m talking about, then you really need one. Follow this link to learn how to make a budget that serves as a GPS and not a jail cell. Once you’ve got your GPS budget going, here are a few simple ways to make budgeting easy and effective:
There you have it, shortest blog post ever.
But in all seriousness, this is an important matter that can make a huge difference during your retirement. If you didn’t take saving for retirement seriously during your early years, even just receiving a little help from the Social Security Administration could double your monthly income in retirement.
If it really is possible to still receive Social Security benefits after opting out, how does that work? Well, there are two ways:
November 2, 2017 Update: Follow this link for a new post explaining how pastors will be affected by the Tax Cuts And Jobs Act proposed by the House GOP.
Yesterday, the GOP officially unveiled their "Unified Framework For Fixing Our Broken Tax Code." Many people are eager to know how they will personally be affected by tax reform, especially pastors who receive certain benefits not available to others. Right now you're probably wondering what, if any, changes will be made to the clergy housing allowance and your ability to opt out of Social Security.
Unfortunately, the framework does not answer any of your questions. It is a broad guide for congressional committee members to follow as they write out the details of tax reform. It will probably be months before we know anything specific. The Pastor's Wallet will make sure to inform you as soon as anything official regarding how the tax ...