Retirement Alternatives

[Rod McCallum]

Hey folks,
My employer wants to make a contribution toward my retirement. So far I have resisted this based on principal. However, I thought I would take this opportunity to explore alternative systems of retirement that would be more in line with my beliefs. I am not sure what I am looking for although I know what I am not looking for. I am not looking for a "green" or "pacifist" mutual fund or investment portfolio. In fact I am hoping to find something that is more relationship based than currency based. I would love any recommendations or references to existing systems or organizations. I would also be interested in brainstorming and dreaming in order to start an alternative system for retirement.

[Chad]

Good thoughts.
I've been thinkning a lot about economic systems and what needs to change to create a worldwide sustainable Christian community. First off, I found out what the Global domestic product was and divided it by the number of people in the world. It came out to $10,000. So that means that if each person in the world lived off of 10k and gave the rest to those who had less than 10k p/y we would live in a monetarily balenced society. Families would be given a certain amount for each child that they had, approxametly $4,000 p/y. Of course this would have to be done out of compassion and love, and deffinetly not forced by law. Everything would be optional, and the monetary amounts would be suggested guidelines. I see this system as something that could start out small and grow exponentially. A few people living off the minimum and giving the rest away could easily develop into a caring worldwide community of Christians. Idealy larger numbers of the world's population would participate, and if it were sustained into the future the eldery would be among those that were supported.

The cool thing is that it is totaly independent from government, and would free people from taxation due to so many charitable donations.
I believe that something like this has to hapen eventually. I think that we need to make this world a place that is worthy for Christ to return to, and fixing an unjust monetary system would be a good first step. As far as I've been able to think a system like this is the best way to go. I'd be interested in comments or other ideas. This pry doesn't help your retirement issue much, but it was good to get it out of my head and into the blogosphere.
God Bless in your journey of finding financial justice and economic security.

Chad

[Nathanael Snow]

There are several different approaches possible here. To do the prudent and wise financial thing just follow the advice of your guru of the moment, Ramsey, Orman, blegh.
What you seem to be asking is, how can I invest in the kingdom instead of storing up wealth?
First: Should we plan for retirement in any way as believers? I am interested to get people's opinions on this. Do we have a responsibility not to become a burden on others in our old age?
If your answer to this question is no, or at least not as much as most people think, so you have more surplus to share with others, then the question really becomes: how to invest in the kingdom?
Again there are several approaches:
The least of these need to be rescued. Can you sponsor a refugee family's relocation to safety? The return on investment here may include the joy of relationship with others and the opportunity to share grace with others.
The least of these need capital. Can you buy a well in Africa? Can you get involved with micro-finance in Indonesia? I've heard good things about Kiva.
The least of these need rescue from abortion. Can you pay a young woman to carry her child to term and continue her education?

Understand that from your employer's point of view carrying a pension is a sort of insurance against poor performance. They might not allow you to put their contribution into these sorts of things.
Fine. But chances are you can borrow against your pension. So long as you borrow at a rate which requires repayment equal to future pension distributions your accounts balance and you are not really incurring debt, you are just working around the system. Subversion, indeed! Differences between rate of return on the pension and interest rate charged on the loan can be balanced to make it come out even.
Finally, consider looking after elderly missionaries who forsook retirement savings in their work for the Lord. There are many who are stuck in ministries not equal to their calling because they don't have the financial resources to move.
This was the situation for my wife and I when after 8 years of ministry we had no savings and could not leave the ministry when we heard God's call for me to return to school. One of God's faithful gave us the $10,000 necessary to make the move. We will never forget her faithfulness and what it has meant to us.
Nathanael Snow

[Rod McCallum]

Thanks Nathanael.

I believe that if the church was operating the way it should then those who are unable to work would be cared for by those who are. This is a very different view of retirement because it focuses on physical ability rather than financial ability. Of course those who are physically unable to work often have the most to contribute by way of wisdom and guidance to a community. The problem is that one needs a very stable community (think Amish/Old Order Mennonite) in order for this to work. My wife and I are trying to build this type of community but chances are we won't succeed. Those outside such communities that think their kids will take care of them run the high risk of being sent off to a nursing home. This (and the fact that my employer wants to pay me more and offered retirement contributions as an option) is why I even consider retirement planning in the first place.

I didn't think of micro lending. That is a good thought. I am not interested in sending my money across continents and oceans when I live in one of the poorest neighborhoods in the 3rd poorest city in the country. I understand the relative wealth and poverty thing but I am called and committed to this place and the people who make it a neighbor-hood. Also, I am a strong believer in relational change so I would have a hard time with long distance micro lending. That said, I think there is plenty of room for a small scale micro lending operation right here in my neighborhood. We have some great ministry organizations taking root that might be interested in exploring this opportunity as well. Also, if I get a raise in the form of contributions to a micro lending investment then it is putting my employers money on the line rather than money out of my pocket. I think this might have potential. Thanks Nathanael.

Anyone else have any ideas?

Peace.

[John Farrell]

Hey Rod, I'm replying for the first time on this site and I'm giving you the honors!! This issue is so near and dear to my heart and it's so refreshing to hear others try to work it out. I'm surrounded by so many who don't even consider this a minor issue let alone something to wrestle with. I live in the "heathen north east" as I affectionately call it. I got a little chuckle reading one of the replies about the 10k allowance. That wouldn't cover property taxes in most houses around here! I take Jesus at his word regarding storing up our treasures. I too, see community as the only way out. The problem with all the communities that I'm familiar with is that they want to take the place of God and want you to hand over all to them. This is clearly idolatry. We read in Acts that the believers were of one mind, sharing their lives, and considering their possessions not their own. This one phrase is so key. By maintaining individual sovereignty, ie. personal ownership, we can daily pick up our crosses and love a neighbors as ourselves. I catch a lot of heat by asking for a list of the things you do for your self and then compare it to, or even better, swap the list of that which you do for your neighbor. Adoptions are a perfect example of loving Jesus just as much as you love your own children. Most contentious, is the employer, employee relationship. I believe Jesus would have employers share equally in the income of the business. This drives a stake right in the heart of mammon. "Not so with you..." Jesus tells his would be followers, regarding being a self proclaimed benefactor to those who you exploit. I have a small contracting business that I'm hoping to use to start a community. The road is long, hard and narrow and many reject it. I'm far from where I know I should be but by God's grace, I hope to offer him at least the interest on the talents He's given me.