Dave Says: 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