REMOVE -- Begin Today: Guest Post by Timothy A. Stephenson
In my last post, I shared the story of my aunt and uncle, who have ministered faithfully throughout their lives—and who have prepared carefully for their financial future. In this post, Timothy A. Stephenson, professional fiduciary and guardian at Southwest Florida Advocates, encourages us to consider the cost of failing to prepare.
Rob Pease
Chief Information Officer, Chief Operating Officer
Timothy A. StephensonI was 13 years old before I learned to swim. I still remember being petrified to pick up a penny off the bottom of a four-foot-deep swimming pool. And I remember the terror of being pulled out of the water by a lifeguard when I got in over my head. But with time and the right instruction, I became a capable swimmer and truly enjoy the water.
That is also my story about finances.
I was 32 years old when I began to study finance. I still remember what it was like to realize I should prepare for my family’s financial future but not knowing how. It has been more than three decades now—and with sound instruction, I have become an experienced financial planner.
Twenty years ago, I was the director for employee benefits of The Christian and Missionary Alliance—responsible for more than 2,000 families in 45 countries. I regularly heard stories like these:
I served all of my career as a pastor in the C&MA. I had bad advice and signed out of social security as a young man. I always lived in a parsonage and never seemed to have enough money to save for retirement. I’m now 74, and my wife is ill. Is there anything you can do to help me?
My husband and I served The Alliance throughout our careers. We…never saved for retirement. My husband didn’t own any life insurance. He died at age 65 and is happy in heaven with Jesus. I was left with nothing, so I am working at age 82 so I can make ends meet.
Friends, these are true stories. Nothing is exaggerated for effect. I remember the days when I was making those same mistakes as clearly as I recall my fear of the swimming pool.
The September 2016 issue of Church Finance Today featured a revealing article entitled “The Financial Health of Pastors.” The article reported a multi-year study by the National Association of Evangelicals which revealed:
-
30 percent of pastors have student loan debt averaging $36,000
-
Three out of four pastors carry some type of nonmortgage debt, averaging $31,593
-
33 percent have less than $10,000 in retirement funds, and 29 percent have no retirement savings
-
84 percent have no funds for emergencies and major purchases
If you are not already saving for your future, now is the time to begin.
The Alliance offers a retirement plan for pastors and official workers called a 403(b). It’s comparable to a 401(k) in the business world. When you invest money in a 403(b), as a retired pastor you can typically withdraw the funds tax free as a housing allowance. This is a big deal! This feature alone can save you tens of thousands of dollars if you do it right—but it can cost you if you make a common mistake.
Orchard Alliance is an investment choice in the Alliance 403(b) and also offers other retirement options, including Traditional and Roth IRAs; Shell Point matching accounts for official workers’ use at Shell Point (Fort Myers, Florida); and Missionary Retiral Agreements (MRAs) for active Alliance international workers on allowance. To learn more, click here.
I’ve learned from conversations with hundreds of Alliance pastors that financial preparedness is a serious concern for people in full-time ministry. The time to start is today. Please don’t wait to contact Orchard Alliance and take the important first step in saving for your retirement.