Ever heard of Nicolet Creek? It’s a small creek in Minnesota that feeds into Lake Itasca.
Ever heard of Lake Itasca? It’s a small lake, maybe a couple square miles in area and about 25 feet deep at the most.
Ever heard of the Mississippi River? It starts from the northern edge of Lake Itasca, its primary source. The Mississippi River flows 2,340 miles south to the Gulf of Mexico. It’s the largest river in the United States.
Our “retirement” savings funding is like little creeks and streams feeding the Mississippi River. In our 20s, when we’re starting our careers, we can’t even fathom reaching our 60s and having to live off our own savings income. It’s like the difference between Lake Itasca and the Gulf of Mexico. When we’re young, we tend to depend on one source for our river of income – a job. Now, more and more young people are supplementing their jobs with creeks, streams, and “gigs.” Others are cobbling together an income from multiple contracts and gigs as independent sole proprietors. It’s good practice. Because there are people in their 50s who are forced to do the same thing when their careers end. Then again, there are others who are able to work “lesser” jobs or self-employed jobs the rest of their lives. There is no one way to fill the river, but we need to plan and prepare for those ways.
Retirement Income Mindshifts
In the same way we change how we work, we must change our mindset about how we will live in “retirement” when there is no retirement. Our traditional idea of retirement – which really isn’t that old – is that we quit work for pay completely and withdraw living income money from our savings and investments until the money runs out.
Reboot your mindset from withdrawing money from the big retirement bank account to withdrawing from the income streams profit account: what others pay you, what investments pay you, and what you pay yourself. Beginning in our 20s. That’s when we practice for living in our 60s.
When we’re young, the largest stream that feeds the river is what others pay us for our work. That’s our main job, our career, our profession. But our main income stream can change over time. If we don’t save and invest, then we depend on one stream too much. It may eventually trickle and dry up, or it may get dammed up.
Prepare your work outside, And make it ready for yourself in the field; Afterward, then, build your house. Proverbs 24:27 (NASB)
There are three main types of streams feeding into our income river, and we need to manage all of them wisely before we build our dream houses and chase our dream missions:
What others pay you: jobs, part-time work, contracts, freelancing, gigs, rent, government subsidies, pensions, health insurance
What the investments pay you: profits (capital gains), dividends, interest
What you pay yourself: savings, real estate property equity, whole life insurance
Think back to the monthly spending plan. We can’t spend more than our income or else we run out of water in the river. Factor into the river more than just the regular monthly living expenses and bills. When you are older, you can’t forget to add in travel, giving, missions, and long-term care, to name a few.
Submit all your missions, dreams, and income streams to God, if the Lord wills. This is a good principle for all of our plans.
Come now, you who say, “Today or tomorrow we will go to such and such a city, and spend a year there and engage in business and make a profit.” Yet you do not know what your life will be like tomorrow. For you are just a vapor that appears for a little while, and then vanishes away. Instead, you ought to say, “If the Lord wills, we will live and also do this or that.” But as it is, you boast in your arrogance; all such boasting is evil. So for one who knows the right thing to do and does not do it, for him it is sin. James 4:13-17 (NASB)
The issue isn’t the plans, it’s not submitting to God’s will first and foremost. It’s holding on to our selfish dreams instead of submitting to God’s perfect plans. God is more concerned with our character and doing the right thing than our plans, which are often only self-centered things. Life is much more fulfilling when God’s plans and our plans are in sync. Where can you serve where God is working?
Mid-Life Career Shifts and Income Changes in the New Testament
Jesus Christ was most likely a blue-collar, self-employed, carpenter and stonemason, in the family business like Joseph, his earthly father. Upon Joseph’s death, Jesus also became the firstborn head of the household, so any other income from farming, textiles, or other family production would be under His stewardship. When Jesus turned 30 years old, He would have qualified to become a rabbi under Jewish Law. Jesus Christ left behind His household and personal revenue streams when He started ministry as a rabbi with disciples. He depended upon gifts from followers and supporters, especially from women who produced extra income, as well as hospitality from the general population. Most importantly, Jesus had a perfect plan ready for His career change.
The Apostle Paul followed His Savior’s lead. He started his career as a Jewish priest, rising to a prominent level. When Paul left that career behind to follow Jesus Christ, he did not have a plan. Paul depended upon gifts and hospitality at first, but eventually he added a blue-collar service vocation in tentmaking and accepted formal support and gifts from early Christian churches, as well as individual believers. We’re not sure when Paul learned how to make and repair tents, but it could have been the family business before Paul entered the priesthood track.
Neither Jesus Christ or the Apostle Paul depended upon a single income stream. They were willing to do different things and humbly accept help. Their income streams were part of their dreams, plans, and ministries.
Practically, what do your income streams look like now? What will they look like in 10 years?
Let’s say you are 40 years old, and your income streams look like this:
Husband career income 45%
Wife career income 45%
Hobby income 10%
What happens in 15 years, when careers may come to an end, but retirement accounts cannot be accessed without penalties?
Husband contract/freelance income 25%
Wife part-time work income 25%
Bridge account dividend income 25%
Gig income 15%
Shortfall 10% Help!
And this is a good scenario! Many people can’t turn their careers into contracts or freelancing or gigs. What will your “retirement” career look like? What could you do as a sole proprietor and how will you save and invest to prepare for getting that off the ground? What additional knowledge and training will you need? Is there another part-time job you would like to do? Or a combination of all of the above?
Funding your life in later years means planning and preparing now, not waiting for life to sneak up on you. Prepare to be able to give to others who need help, rather than completely rely on others or the government. A Christian financial coach can guide you to focus on God’s plans for your future. Don't wait - bring your plans to God's will today.
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