In my previous blog (found here), we answered many pertinent questions around Medicare and Social Security.  In the same spirit, I would like to address some important issues related to the most frequently received questions about Financial Planning and Retirement Savings.

Protection

1. Beneficiaries
One of the most disheartening discoveries we face in the Mission Office is when a missionary fails to list a beneficiary on their financial accounts or life insurance policies.  This sets in motion needless court proceedings that can be easily avoided.  Take some time to ensure you have properly listed your intended beneficiaries on ALL your life insurance policies, investments, and retirement accounts.  Also, be sure to list a beneficiary as TOD/POD (Transfer on Death/Payable on Death) on ALL your bank accounts.  That way, any funds in these accounts will be payable directly to the beneficiary, rather than passing through Probate Court.

2. Will vs Trust…which one do I need?
When talking with missionaries about the need for a will or trust, many respond, “Well, I don’t have enough assets to need a will.” My response is always, “You might be surprised.”  Just considering the aforementioned financial assets lends to the need for protection in the form of a will or a trust.

The next big question is which one is most appropriate?  That requires more research and planning.  Here are some helpful articles to guide you in this decision:
https://www.nolo.com/legal-encyclopedia/living-trust-v-will.html
https://www.ramseysolutions.com/retirement/living-trust-vs-will

Planning

1. Biblical Considerations
As missionaries, we have all learned the value of hard work in leading to sustainable growth.  The following are a few passages of Scripture that speak to long-term financial planning:
Proverbs 21:20; I Timothy 6:10; Genesis 41:35-36; Proverbs 28:20; Psalm 62:10; Ecclesiastes 11:2; Proverbs 13:22

2. Savings
As a good rule of thumb, it’s advisable to have 3-6 months’ worth of personal expenses on hand to cover emergencies.  Other helpful tips include paying cash rather than borrowing and placing savings in an interest-bearing account (e.g., a money market account or CD).

3. Retirement
An old Chinese proverb states, “The best time to plant a tree is twenty years ago.  The second-best time is now.” Whether you are a newly approved missionary or in your sunset years, it’s never too early nor too late to start saving for your retirement.  The following are the two most frequently asked questions around the issue:

A. How much can I put aside for retirement?

As a BBFI missionary, you are allowed to “allocate” on your PCW up to the IRA contribution limit, according to IRS regulations.  For 2026, that amount is $7,500 per individual missionary annually.  For those over 50, an additional $1,100 can be added to that total.  For example, for a missionary couple, both of whom are over 50, the total amount that can be allocated for “retirement” would be $17,200 annually.  You can reach out to Wendi Page (wpage@bbfimissions.com) to make these changes to your PCW.

B. How can those funds be invested?

To avoid any potential red flags with the IRS, the primary stipulation regarding these “retirement” funds is that they be invested in an asset with the potential for monetary growth.  Some examples include Real Estate, High-Yield Savings Accounts, CDs, Mutual Funds, Money Market accounts, or a 403(b).  A 403(b) is highly recommended, and we can put you in touch with our contacts at Guidestone to help set it up.

As you move forward with planning for your financial future, please feel free to reach out to the Finance Office with any questions you may have.

Printed Resources:

Your Money Counts by Howard Dayton
Planning for Retirement by Larry Burkett
The Financial Peace Planner by Dave Ramsey
Antology by O.S. Hawkins

Online Resources

General Financial Planning:
https://www.dinkytown.net/ (Financial calculators)
https://www.ramseysolutions.com
https://clark.com/
https://www.360financialliteracy.org
https://www.crown.org

Life Insurance:
https://lifehappens.org/
https://www.bestow.com

Wills/Trusts:
https://www.crown.org/blog/the-most-asked-questions-regarding-wills-and-trusts
https://www.legalzoom.com

Retirement Planning:
https://www.crown.org/blog/how-to-save-for-retirement
https://www.crown.org/blog/how-to-save-for-retirement-without-an-employer-sponsored-plan/?utm_source=blog&utm_medium=blog
https://www.guidestone.org

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Brian Garrison, Associate Missions Director