From time to time I read Thom Rainer’s blog to stay up to date on the issues that pastors are facing today. The most enlightening part is the comments that pastors leave on his articles. When I read the comments on his financial posts, my heart breaks. There are so many challenges that pastors face that it makes me want to round you all up, give you big hugs, big thanks, a check for a million dollars, and a free week-long ...
Back in 2017, the president timed things just right so that I spent the first day of my family’s Christmas vacation researching the tax reform bill and how it affects pastors. Now, almost two years to the day, he signed into law another sweeping financial reform just in time for me to fly down to visit my family for Christmas. Thanks, Congress, I really appreciate your timing. The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law ...
The internet is plastered with articles discussing the merits of Roth versus traditional accounts. The Pastor’s Wallet even has one for IRAs. They talk about the different taxation, time horizons, and how to pick the right kind of retirement plan for you. If you’re a pastor, though, you should ignore them all. If you’re a pastor, you should invest in a traditional 403(b) (if it's a 403(b)(9), which is the type that churches sponsor). At least some, if not all, of ...
Today’s post was inspired by one of my loyal readers who had a very frustrating time trying to figure out the answer to that simple question. Unfortunately, I’m too late to come to his rescue, but my hope is that others of you may find this useful. It Doesn’t Work Like The Housing Allowance I think this subject may actually be harder for pastors than for others. Why? Because of the clergy housing allowance. The housing allowance is exempt from taxation. IRA ...
Unfortunately, pastors are sometimes given bad information regarding Medicare. This can lead to costly enrollment mistakes. If this has happened to you, there may be a way to fix things. View post
When it comes to Medicare, most pastors don’t really understand how it works. Unfortunately, this is one situation where ignorance can really hurt you. Here are the basics of Medicare and what you can do now, even if you’re still young, to save a lot of money. View post
I just finished a 2-year journey with my dad. It was that journey that inspired posts such as Do You Really Need All Those Papers?, Welcome To The Sandwich Generation, Be Prepared: When You Retire Is Not Your Decision, and 7 Estate Planning Mistakes That Will Rob Your Family Of Sleep. On Wednesday, that journey came to an end, and my dad is now in heaven, most likely ice skating and taking water samples of the river that John saw ...
If you give to charity and have an IRA, you may be able to save on taxes by doing a qualified charitable distribution. View post
Most pastors who have opted out of Social Security understand that they are on their own for their retirement savings. That part is fairly straightforward. But what about Medicare? How does opting out of Social Security affect eligibility? What are the options available? View post
If you’re a pastor, you know that your ministerial housing allowance is perhaps the biggest financial benefit of being in the ministry. It allows you to avoid paying taxes on all of your housing expenses, including things like cable television and landscaping. Because of this, one of the most common questions pastors ask is if they can keep taking a housing allowance in retirement. The answer? It depends on where your money is coming from. Unfortunately, one of the most common pieces ...