At any stage of our lives, we can contemplate on what we have achieved or not achieved in our life. We may be married or single, we may have had children or no children, we may have our own home or be renting, we may have work or be unemployed, we may have made good decisions or poor decisions. Has God been a part of your life, your purpose and your decision making? Have you prayed for guidance and direction?
One of my favourite Bible texts is Jeremiah 29: 11 “For I know the plans I have for you, declares the Lord, plans to prosper you and not harm you, plans to give you hope and a future.” In what ways has God led or directed you in your planning for the future – particularly financial planning for retirement and your estate?
Let’s look as God’s wisdom in the Bible.
- Proverbs 29:18 “Where there is no vision, the people perish, but happy is he that keeps the law.
- Proverbs 15:22 “Plans fail for lack of counsel, but with many advisers they succeed.”
- Proverbs 16:3 “Commit to the Lord whatever you do and your plans will succeed.”
- Proverbs 20:18 “Make plans by seeking advice.”
So, the Bible tells us that financial planning for the future involves seeking God’s direction, praying for guidance, using our own ideas, knowledge and common sense and seeking advice from other people.
Retirement Planning
A recent survey of approx 3000 Australians over the age of 50 conducted by National Seniors Australia asked about their current and expected financial situations, planning behaviours and strategies for managing financial uncertainty in retirement. Superannuation is now Australian’s main expected source of income in retirement. Older Australians are not confident that they will be able to support their life style in retirement that they were hoping for. Some Australians are sandwiched between looking after elderly parents as well as children yet to gain their own independence.
Here are some issues to consider when planning for retirement.
- How long do I want to keep working for?
- What will my expenses be after retirement? Consider that the conventional understanding is that people aim to retire on at least 70% of their current income – how will you cope with cutting back your spending by 30% when people retire?
- Do I have sufficient investments and superannuation to generate income to meet my planned expenditure?
- Will I be eligible for any Government entitlements eg age pension, on retirement?
- What type of investments do I have? Are they diversified enough? Are they too risky? Do they generate income and capital growth?
- Do I have any loans that need to be paid off before retirement?
- Do my parents or children need any financial assistance during my retirement?
- What is my health situation?
- Hoe much of my retirement income do I want to contribute to church or charities?
After you have considered these issues, start preparing a preliminary plan of your assets, income and expenditure and determine if there is sufficient income to support you in your retirement. If necessary, obtain financial advice to assist you in your planning. Is there a savings capacity from your current income to contribute into superannuation or purchase additional assets? Pray to God for guidance in this whole process.
Estate Planning
Planning your last days, death and the distribution of your estate is not an easy topic to think about or discuss. The most important decision we will ever make is to follow Christ. Have you ever wondered how you will be remembered? It’s important because what you want to leave behind will affect how you live your life. Here are some ways that your life can be remembered long after you are gone.
- What you invest in other people – so make sure that you invest as much time as possible in people. Your life story may live on to inspire others. – full of God and faithfulness and be a great example for others to follow.
- Your prayers will never be forgotten by God and may be answered long after you are gone – so pray constantly!
- Your giving will carry on – the impact of the money you gave to God’s work now or in your will, could have a massive effect in the future, so be generous and give money to further God’s kingdom.
Remember
- “A Righteous person will be remembered forever.” Psalm 112:5
- “Good people leave an inheritance to their grandchildren.” Proverbs 12:22a
Leaving some of your inheritance to future generations through Christian organisations is like “leaving a legacy of hope” for them to know Jesus Christ personally and believe in His saving grace. There are many Lutheran and other denomination organisations that provide mission and ministry programmes and welfare assistance.
- Local Lutheran congregations.
- Lutheran Church National and Districts eg mission resource assistance, children, youth and family ministry, chaplaincy in tertiary institutions, hospitals and prisons, aboriginal ministry, Australian Lutheran College for training of pastors, lay-workers and teachers, Lutheran Media Ministry and Lutheran Archives.
- Lutheran and other denomination welfare and overseas aid charities such as Australian Lutheran World Service, Lutheran Community Care, Lutheran Disability Services, Centacare, Anglicare and Uniting Care etc.
So, consider leaving some of your estate to these organisations when preparing your will.
Here are some other key facts to consider when preparing your will.
- Make a list of everyone you wish to benefit from your will such as family and friends. These people are known as beneficiaries of your will. It is important that all family members are first considered in your will, and then determine how much of the remaining assets can be left to various church and charity organisations as noted above.
- Decide whom you will appoint as executor of your will to carry out your instructions as specified in your will. This person or persons can be selected from your family members, solicitor, accountant or a good friend.
- Consult a solicitor and obtain advice on how the assets are to be distributed and the wording to be included in the will.
- Review your will regularly to ensure that any changed circumstances are considered.
- Always use prayer to seek God’s guidance on the distribution of your assets and the preparation of your will.
Estate planning involves similar issues as financial planning – seeking God’s directions, praying for guidance, using your own ideas, knowledge and common sense and seeking advice from other people.
Prepared by Mel Zerner
Christian Money Management 