5 Factors That May Affect Your Retirement

It’s important to understand what can affect your retirement plan. Below are five factors that you should be aware of.

Inflation

• Reduces how much you can buy today, compared to last year

• Historically, inflation averages 3% annually

• Your investments need to keep pace with or outpace inflation

Investment Risk

• Determine how much potential gain you are aiming to achieve with your investments, understanding that also means you may potentially lose a similar amount

• More risk equals more volatility in returns and account values go up and down more

• Diversify your portfolio by allocating money to multiple asset classes so you are not totally exposed if one asset type (such as stocks) drops dramatically

Healthcare and long-term care expenses

• A number of studies show that the average 65-year-old couple can expect to spend hundreds of thousands of dollars on healthcare in retirement

• The combination of increasing life expectancy and growing medical treatment costs can have a huge negative impact on savings

• Consider obtaining Long Term Care insurance

• The premiums can be significant, but having the coverage in place may help avoid disrupting your overall retirement planning strategy

Taxes

• Employer-sponsored and individual pre-tax accounts offer a variety of ways to receive tax breaks when making your retirement savings contributions

• Pre-tax contributions provide a current reduction in taxable income, and therefore a reduction in the taxes you pay each year as you are adding to your accounts

• Roth contributions are done on an after-tax basis, which does not provide a current year tax advantage but does allow you to make withdrawals on a tax-free basis in retirement

You

• Set goals for what your financial needs will be in retirement

• Evaluate your personal risk profile and asset allocation strategy

• Take full advantage of any employer matching contributions you may be eligible for

• Roll over assets from former employer plans rather than cashing out those accounts

• Seek out trusted professional guidance or use available self-help tools

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To access more information on retirement planning, go to Envoy’s Retirement Planning Education Suite.

7 Ways to Navigate Market Fluctuations

Here are a few financial steps to consider when the market fluctuates:

1. Stay the course.
   As is often the case with rapid drops in the equity markets, by the time someone is thinking about getting out of the equity markets, the damage from the panic selling has already taken place. But keep your long-term plan in mind. Moving to bonds could potentially be bad timing as the interest rates have dropped sharply to new all-time lows, which means that as they start to rise again, bonds could lose value quickly.

2. Don’t overreact.
   It’s normal for us to worry when the market falls. We often want to sell when the market is low and buy when it is high. Fluctuations will happen. It’s important for you to evaluate the situation before making any rash decisions.

3. Delay moving some portion to cash.
   Although this may feel safer in the short run, it may cause you to miss the recovery when equity markets turn back up again, which will eventually happen.

4. Diversify your investments.

   Diversification is the process of spreading your money among different kinds of investments. All investments have specific characteristics including what is being invested in, the volatility of the investment, and the strategy for picking each investment.

   This is a good investment strategy. Putting your money into a variety of investments does not mean that your investments will not go down in a declining market. But it does mean that you have a better chance to reduce the risk.

5. Prepare for Contingencies

   If you have not done so already, fuel an emergency fund with enough money to cover at least six months’ worth of basic expenses. This cushion helps keep you solvent after a layoff and prevents you from borrowing your way out of a crisis. The key is to have access, not necessarily cash on hand, for up to 6 months’ worth of expenses.

6. Consider refinancing higher interest mortgage loans. If you have a mortgage loan, now might be a great time to consider refinancing that mortgage as interest rates are now at all-time lows. 

7. Seek guidance from your financial advisor.
   It’s often hard to think logically during this time, but your advisor will give you sound advice. If you’re feeling worried, take the time to talk to your advisor about your concerns. Click here to schedule an appointment with an Envoy Advisor or call us at (888) 879 - 1376.

In addition to the financial stress, there is the emotional stress too. This emotional stress is another area where Christians have an advantage—we know the source of peace that passes all understanding. During hard times and market fluctuations, remember Isaiah 41:10. “So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you; I will uphold you with my righteous right hand.”

Do you have a question and need a quick answer?
Check out Envoy’s Help Center, which gives you access to wide range of frequently asked questions. Or, give Envoy’s service team a call and they’d be happy to help you find your answers.

Bible Verses About Money and Stewardship

What Does the Bible Say About Money and Stewardship?

Did you know that there are roughly 2,350 verses concerning money in the Bible? That's almost twice as many as verses about faith and prayer combined. Jesus had a lot to say about money:

• Nearly 15% of everything Jesus spoke about related to money and possessions

• 16 out of his 38 parables dealt with the topic of money

• The only subject Jesus taught more about than money was the Kingdom of God

Why? Because the Scriptures are very clear about an inherent connection between a person's spiritual life, attitudes, and actions concerning money and possessions.

Envoy Financial provides Trusted Advice Along The Way for ministries and their employees. We help you make the wise investment decisions for your Future Funded Ministry.

The Bible is clear that we are to save for our future. "A wise man saves for the future, but a foolish man spends whatever he gets."(Proverbs 21:20, LB)

Bible Verses on Money & Stewardship

Money, Wealth, Blessing, and Prosperity

• A wise man saves for the future - Proverbs 21:20

• Money little by little grows - Proverbs 13:11

• Ability to produce wealth - Deuteronomy 8:18

• The blessing of the Lord brings wealth - Proverbs 10:22

• Diligent hands bring wealth - Proverbs 10:4

• Pursue righteousness and find prosperity - Proverbs 21:21

• All hard work leads to profit - Proverbs 14:23

• Oh, that you would bless me indeed - 1 Chronicles 4:9-10

• Then you will be prosperous and successful - Joshua 1:8

• God gives any man wealth and possessions - Ecclesiastes 5:19

• A generous man will be blessed - Proverbs 22:9

• Enduring wealth and prosperity - Proverbs 8:18

• Trusting God leads to prosperity - Proverbs 30:8-9

• Steady plotting brings prosperity - Proverbs 21:5

• Trying to get rich quick - Proverbs 28:20, 22

• Do not boast in riches - Jeremiah 9:23-24

• No hope in wealth - I Timothy 6:17-19

Generosity, Contentment, and Giving

• More blessed to give than receive - Acts 20:35

• Give and it will be given to you - Luke 6:38

• The righteous eat to their heart's content - Proverbs 13:25

• A generous man will be blessed - Proverbs 22:9

• Support those who teach the word - Galatians 6:6

• Sow generously and reap generously - 2 Corinthians 9:6

• I was hungry and you gave me something to eat - Matthew 25:35-40

• Godliness with contentment is great gain - 1 Timothy 6:6

• Content with your pay - Luke 3:14

• Be content with what you have - Hebrews 13:5

• I have learned to be content - Philippians 4:11

• Everything we have and give comes from God - 1 Chronicles 29:11-17

• Rich in all things, generous on all occasions - 2 Corinthians 9:11

• God loves a cheerful giver - 2 Corinthians 9:7

• Excel in the grace of giving - 2 Corinthians 8:7

Greed and Coveting

• Greedy man brings trouble to his family - Proverbs 15:27

• Put to death greed - Colossians 3:5

• Be on guard against greed - Luke 12:15

• The love of money - 1 Timothy 6:10

• Dishonest money - Proverbs 13:11

• I have not coveted anyone's silver or gold - Acts 20:33

• Can't serve two masters - Matthew 6:24

• Free from the love of money - Hebrews 13:5

• Do not trust in riches - Proverbs 11:28

• Where your treasure is - Luke 12:34

Money and Possessions

• The Unmerciful Servant - Matthew 18:23-35

• The Shepherd and His Flock - John 10:1-18

• The Parable of the Talents - Matthew 25:14-30

• The Rich Young Ruler - Mark 10:17-30

• Everything Belongs to God - Psalm 50:10, Psalm 24:1

• Don't Worry About Worldly Needs - Matthew 6:25-31

God's Lordship and Ownership

• The Cost of Discipleship - Luke 14:28-33

• The Faithful and Wise Servant - Matthew 24:45-51; Luke 12:42-48

• The Great Banquet - Luke 14:16-24

• The Master and His Servant - Luke 17:7-10

• The Shepherd and His Flock - John 10:1-18

• The Tenants - Matthew 21:33-44; Mark 12:1-11; Luke 20:9-18

• The Thief - Matthew 24:42-44; Luke 12:39-40

• The Two Sons - Matthew 21:28-32

• The Unfruitful Fig Tree - Luke 13:6-9

• The Unmerciful Servant - Matthew 18:23-35

• The Watchful Servants - Mark 13:34-37; Luke 12:35-40

• The Wedding Banquet - Matthew 22:2-14

Human Prosperity and Poverty

• The Lost Sheep - Matthew 18:12-14; Luke 15:4-7

• The Rich Man and Lazarus - Luke 16:19-31

Contentment

• The Workers in the Vineyard - Matthew 20:1-16

Tithing

• New Cloth on an Old Garment - Matthew 9:16; Mark 2:21; Luke 5:36

• New Wine in Old Wineskins - Matthew 9:17; Mark 2:22; Luke 5:37-38

• The Pharisee and the Tax Collector - Luke 18:9-14

Generosity

• The Friend in Need - Luke 11:5-8

• The Good Samaritan - Luke 10:30-37

• The Moneylender - Luke 7:41-43

• The Owner of a House - Matthew 13:52

• The Prodigal Son - Luke 15:11-32

• The Son's Request - Matthew 7:9-11; Luke 11:11-13

Funding the Great Commission

• The Growing Seed - Mark 4:26-29

• The Kernel of Wheat - John 12:24

• The Mustard Seed - Matthew 13:31-32; Mark 4:30-32; Luke 13:18-19

• The Yeast - Matthew 13:33 ; Luke 13:20-21

Revival and Reformation

• The Discarded Salt - Matthew 5:13; Mark 9:50; Luke 14:34-35

• The Fig Tree - Matthew 24:32-35; Mark 13:28-31; Luke 21:29-31

• The Lamp Under a Bowl - Matthew 5:14-16; Mark 4:21-22; Luke 8:16 , 11:33 -36

• The Lost Coin - Luke 15:8-10

Eternal Reward

• The Hidden Treasure - Matthew 13:44

• The Lowest Seat at the Feast - Luke 14:7-14

• The Sheep and Goats - Matthew 25:31-46

• The Valuable Pearl - Matthew 13:45-46

• The Wise and Foolish Builders - Matthew 7:24-27; Luke 6:46-49

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Are you a Ministry leader? Here are some great ways to promote Biblical financial stewardship to your staff.