As a Christian, you are called by God to serve. This calling does not end when you stop receiving a paycheck. Retirement is not only a reward for past service but a stepping-stone to future ministry. We call this your Future Funded Ministry! When you successfully construct and fund a retirement plan, you are creating a source of money to fund your future ministry activities. What an exciting way to live!
The following Retirement Rules will equip you with basic strategies to help you achieve your Future Funded Ministry plan!
Rule 1: Save at least 10% of your income towards your Future Funded Ministry plan
This provides a simple target for you to work towards as part of a disciplined savings approach. You may start at a lower level and then focus on increasing your contributions over time to get to this percentage.
Rule 2: Plan on living 20-25 years in retirement after age 65
People who live to age 65 have a 50% chance of living to age 85 and a 25% chance of living until 92.
Rule 3: Plan on needing 70% to 80% of your income in your Future Funded Ministry years
Certain expenses will likely disappear or be reduced once you leave the workplace.
Rule 4: To make your savings last, withdraw less than 4% a year
This simple formula has proven very accurate over time. It provides a guideline for how much to withdraw each year without exhausting your Future-Funded Ministry savings.
Rule 5: Rebalance your asset allocation at least once per year
Rebalancing is when you adjust your portfolio back to an appropriate asset allocation mix. This keeps your investments aligned with your risk tolerance and goals.
Rule 6: Bonds percentage of your portfolio equals your age
This rule is a reminder that your portfolio needs to change as you age, becoming gradually more focused on avoiding risk and providing income.