Browsing Category Investing

Pastors who save into their church’s retirement plan are eligible to withdraw some of that money as a tax-free housing allowance in retirement. It’s a great benefit to have. Unfortunately, a lot of church retirement plans have investments with higher fees than are available in IRAs. Because of this, I have been asked multiple times if it is worth it. Does the ability to claim a housing allowance outweigh the cost of the higher fees? As with everything in financial planning, ...

This post mentions some specific investments. They are only examples and not an endorsement of those investments. Perhaps the most difficult, or at least most intimidating, thing about saving for retirement isn’t finding money to set aside, but rather choosing how to invest that money. After all, 1 in 5 Americans who aren’t invested in the stock market says it’s because they “don’t know enough.” What Is A Target Date Fund? Because of this, in 1994, a new kind of mutual fund was ...

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). View post

This is a guest post by Chris Cagle, author of RetirementStewardship.com and The Minister's Retirement book. I recently published a book review on his book and it got such a good reception that I asked him to write something specifically for you. In my book, The Minister’s Retirement, I address many of the fundamental questions that pastors have about planning for, and living in, retirement. Wise planning involves making decisions consistent with biblical stewardship principles and implemented using wisdom and practical ...

A lot of letters and numbers are often thrown around in reference to retirement plans. What are they and what differences and similarities do they have? View post

Over the past couple of months, we have looked at the different kinds of fees that mutual funds charge and how some of those fees are calculated. Today, we are going to look at why all of that even matters.  You see, fees matter because every dollar that you pay in fees is a dollar that you cannot invest. Not only do you lose the dollar, but you lose out on all of the potential growth of that dollar. There is ...

Last month, we talked about the different kinds of fees that you may pay to own shares in a mutual fund. This month, we are going to go into a little more depth on loads, or sales charges. While they are listed plainly as percentages, calculating them is not nearly as easy as you would think. How Are Mutual Funds Valued? First, we need to review a few of the facts about mutual funds. I say review, but this is probably all ...

Are you invested in mutual funds? If so, you’re in good company. Over 46% of American households own mutual funds. But do you know how much your mutual fund costs? That’s a much harder question. I’m sure 46% of Americans don’t know that one! One of the key components of good stewardship is knowing where your money is going. That’s why having a budget is so important. Most things we spend our money on have a price tag, but mutual funds are ...

If you’ve been paying any attention to the news (and I don’t blame you if you haven’t), you’re probably aware that the stock market has been very active lately. Active like a volcano. You see headlines like “Stocks Lose 34% in One Month” and “Stocks Jump 2%.” What does it all mean, though? Do you really understand what they’re talking about? What Do We Mean By The Stock Market? First of all, what is the stock market? Stocks are portions of ownership ...

With businesses shutting down and church services closed, you may find yourself reassessing your financial situation. Which expenses are mandatory and which can you do without? What resources do you have available to you that you don’t usually access? As you’re taking stock of your situation, I’d like to let you know about a few changes that the CARES Act stimulus bill makes to the rules about your retirement savings. 2020 Required Minimum Distributions Waived This is one that really only helps ...