We simply HAVE to help missionaries plan more effectively for their retirement. End of rant. But — how to do that? Are there portable retirement plans that you love (that won’t go belly up next year?)? If so, please list the best here and why.
We simply HAVE to help missionaries plan more effectively for their retirement. End of rant. But — how to do that? Are there portable retirement plans that you love (that won’t go belly up next year?)? If so, please list the best here and why.
If I have trusted God to supply all my needs for thirty or forty years, why would he stop supplying when I turn 65?
If I have lived with a very simple lifestyle for all these years, would I not want to continue to do so? Why do North Americans always feel sorry for missionaries who choose to live very simply?
I don’t see any call to live a complicated lifestyle, Norfolk I see anyone feeling sorry for missionaries.
I see a reasonable crowd-sourcing question to stimulate discussion others might benefit from.
I have also seen faithful small churches hamstringed by elderly missionaries who were incapacitated or dependent upon the churches late in life… the churches could no longer be strategic in their evangelistic efforts because they were carrying missionaries who hadn’t planned ahead.
I honor those churches! I also saw them struggle with sparking missions enthusiasm in their churches when the newsletters were predominantly from nursing homes!
I started saving toward retirement from when I first left for the mission field, nearly 30 years ago. It’s not much. It’s not enough, but it’ll show I took responsibility and managed my God-given resources well.
Anticipating more helpful suggestions/answers to the question.
My husband is actually in the financial industry, and this is something that he is passionate about. I myself am an MK, so this is personal for me, as well – my parents are still in missions, as are my siblings, and my husband and I hope to return to the mission field eventually. One of the best strategies for retirement that we have found here in Canada is Universal Life. Of course, it works better the younger you start, and some extra money would be required every month – but it’s essentially guaranteed life insurance that you pay into each month, and then when you hit retirement age (whatever you think that is), you take out a yearly bank loan (tax-free, because loans aren’t taxed in Canada) against your life insurance and live off the loans until you die. Meanwhile, your money keeps growing exponentially. Banks love it because it’s a guaranteed return for them – they’ll get paid when the life insurance pays out. Your money can also be passed on to your beneficiaries.
I do believe that this question of how to help missionaries plan for retirement is very important. I absolutely believe that God will provide. I don’t believe that missionaries will starve to death during their retirement. They often have a great support system around them as well. But I don’t want to see my parents or other dear friends struggle or worry or have to do any kind of fundraising in retirement. It’s a distraction from other things that they could be doing – teaching, resting, mentoring, missions building, as many do. I have also seen many other retirees in North America struggle for money just for basic needs. A lot of them need to go back to work or eat at soup kitchens. I don’t want that for them. I don’t want that for anyone. That’s not what old age is for. I’d rather have them free to focus on other things.
I look forward to hearing other ideas.
My wife and I are in our early 30s and have been serving in Uganda for 7 years. A few years back one of our supporters took it upon himself to not only give towards our immediate needs, but put away extra funds in CDs for our retirement. While I’m sure we’ll want to invest these into greater interest bearing accounts, our friend has given us a great start. Missionaries need supporters with vision for their long term future.
I won’t argue the pros and cons of msy retirement or planning for it. That’s a complicated subject that good people can easily come to different conclusions.
Our personal testimony is that after 33 years of ministry we are now financially independent, no longer requiring outside financial support. And we’re probably better off financially than most of our peers who have been in secular employment, even though our msy support levels were typically at or below the average for our field/organization–and way below ave secular salaries. Factoring into this is the fact that we know how to live frugally, of course. But the overly simplified rest of the answer is as follows:
1. First put aside that money designated for the Lord’s work–giving towards ministries outside of one’s own. (I would trust msys would begin with a level well above 10% as a base line–we typically used a 20% base line.)
2. Set aside long term investment funds (15-20% is a reasonable target for many).
3. Live on the rest, whatever that amounts to, and stay within that budget without indebtedness. That will likely mean saying “no” to some things.
What to do for investments is even a longer discussion. There are lots of options, most of which may sound good but are way less than optimal IMO. When I was young I asked many, and most advice I received wasn’t very good, even though well intentioned usually.
An excellent option for most msys starting from zero, especially those with many years ahead of them, is to invest into something like Vanguard’s Target Date Retirement fund and add to it regularly through both bull and bear markets alike. It’s important to add regularly, or such investing does not work well. One can begin in this fund with as little as $1000 and add as little as $100 at a time. If one adds say $200/month for 30 years, and it’s fully investing in diversified global equities, it’s not out of the question to anticipate a $500,000 nest egg at the end–double that investment and you’re looking at $1,000,000! (Remember, we’ve not factored inflation, longevity, healthcare, etc. into this.)
Well, this is way over simplified, but the principle of regular investment into something like Vanguard’s basket of global index funds (with minimal commissions and no third party charges) will work best for most people–if they really actually do it! It’s no get rich quick scheme, but something most msys can live with.
Personal financial planning is somewhat of an avocation of mine, and my advice is free. I’m glad to assist others in navigating the personal investment path, at least as far as we understand it. Wished I’d had someone to help me back then, instead of those just wanting to get commissions from my investments:-) I’d have “retired” from support 10 years sooner if I’d known then what I know today!
A quick note to Roland, the first one to post. This is not meant to be an attack but out of concern for you I would like to suggest you also consider another perspective. Scripture says:
Proverbs 6:6-11
Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer
and gathers its food at harvest. …
A little sleep, a little slumber, a little folding of the hands to rest — and poverty will come on you like a bandit.
Could this passage be saying that we should be as least as smart as the ant who, without anyone telling him he must do so, he is smart enough to store up extra when the times are good – he is in good health, productive and able – so when he is not able to harvest, he has some stores to live on? Perhaps God is saying don’t consume it all – no matter how simply you may live – lay some aside. Maybe the way he is planning to provide for you when you are 65 is from the stores that you laid up during the harvest time of your youth.
Proverbs 21:20
In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.
Just consider it before you assume otherwise and then if God says you are not to “store provision in summer and gather food at harvest” then, by all means, obey Him but make sure you don’t judge others who have been directed otherwise.
We plan to work until we die.
And get into a smaller house after the kids and grands move out. Because that’s how we’ve made ends meet the last five years – we live in a multi-generational home to share expenses.
And work until we die.