Young Minister Needs Retirement Advice

Dear Dave,

I’m a minister and have been preaching for about five years. I opted out of Social Security, and wanted some advice on retirement. My wife and I have a couple of Roth IRAs for about four years, and we’ve maxed them out. Is this going to be adequate for retirement, or do we need something else?

Rob

Dear Rob, First, continue to max out your Roth IRAs in good, growth stock mutual funds. Also, check with your tax accountant to verify if you have any self-employed income. The Roth IRA, fully funded, will ensure that you retire with dignity if you have several years to invest. For example, if you’re 30-years old and you annually fund $6,000 into a couple of Roths in a great mutual fund, you’d have more than $5 million at age 70 if the fund averages 12 percent. If you want to do more, look to the 401k or 403b for tax-deferred investing.

Dave