Is the Rich Fool the Modern Day Retiree?

I believe that we all know the story of the 'rich fool' (Luke 12:13-21). A few weeks ago, I was listening to a sermon podcast by John Piper (Let's Be Rich Toward God), and I got the most unpleasant feeling in my stomach.  He correctly noted that the problem with the rich fool was that he stored up riches for himself and was not rich towards God. Part of the issue is the man's approach, … [Read more...]

What Your Financial Advisor Won’t Tell You About How to Successfully Reduce Your Nest Egg

The longer I maintain www.moneyhelpforchristians.com, the less money it seems like I'm going to have. From the very first days of this blog, I was open about the fact that I wanted to learn  what the Bible had to say about money (as opposed to assuming that I already knew). I used to have a simple and effective retirement strategy ... and then I had to go reading the Bible.  The result?  I … [Read more...]

Should You Only Own a Single Target Retirement Fund?

I haven’t looked at any stats recently, but last I checked, target funds are growing in popularity. The reason is because they make people feel safer.  They present a simple, little-knowledge-required way to do your investing. Thus, they target folks who know little about investing, but want to be saving for retirement.  Furthermore, they are ideal for people who don’t want to have anything … [Read more...]

Should You Have Money in a Roth IRA and a Traditional IRA?

Recently, I’ve had several email questions about saving in a Roth IRA vs. a Traditional IRA. The questions came from people who had most of their retirement savings in a Traditional IRA and were wondering if they should (1) start saving in a Roth, or (2) roll over the money in a Traditional IRA. In my replies to those questions, I’ve said that if most of your retirement saving is in a one … [Read more...]

Contribution Limits 2011 – IRA, 401(k), 403(b)

Not, much breaking news here, but just an informative update. The IRS announced (October 28, 2010) cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2011. 2011 Contribution Limits – IRA, 401(k), 403(b) The contribution limits for 2011 are unchanged from the limits in 2010. 2010 2011 IRA Contribution … [Read more...]

Understanding Your Social Security Statement

Do you wonder how you'll manage your money when you retire? If so, your Social Security statement can be a helpful tool in planning your family's finances. Have a taken a look at it recently? A Bit Of Background Information And History Since 1999, statements have been automatically mailed to all workers over age 25 who haven't yet received benefits. The statement is mailed to you about three … [Read more...]

Rethinking Retirement | Reasons I Spend Less Time (and Money) Saving for Retirement

I used to do a lot to plan for retirement.  But then I wised up. I find that as time passes I’m developing an increasing skepticism about the concept of retirement.  I definitely would say retirement is not the goal of life.  If we live within God’s calling, we should be able to work, play, and learn at all stages. I think Christians should be appropriately educated about the value of … [Read more...]

5 Ways to Retire with Less Investment Risk

In my last post, I talked about what really matters about investment risk. The basic idea was that meeting your retirement planning goals should have a higher priority than staying within your risk tolerance. If you invest in a "safe" portfolio but don't reach your goals, was it really a safe investment? I don't think so. But I also mentioned that there are some options if you don't want to … [Read more...]

What Really Matters About Investment Risk?

Investment risk is often defined as "the chance that the actual return from an investment may differ from what is expected". At least that's how most investing textbooks define it. Check the dictionary for risk and you'll see "the possibility of suffering harm or loss". That's probably closer to how most of us think about risk. But the problem is that both definitions really miss the mark on … [Read more...]