Envoy Financial

Trusted Advice for Missionaries

On this page, you will find information on a variety of topics of interest to Missionaries.  Click a link to access a topic and click Top of Page to return to the menu.  At Envoy Financial, our ministry is to serve you and your ministry.  If you have any questions or need assistance, please contact us at (888) 879-1376, ext.1 or by email.

For information on any of the following, click the title link:

1. What does the Bible say about money and stewardship?
2. Five essential financial questions -- “Am I Financially Healthy?”
3. What are the best retirement plans for missionaries?
4. Important tax benefits for overseas missionaries
5. Retirement planning and savings calculators
6. How do I counsel couples about financial stewardship issues?
7. Common investment mistakes missionaries must avoid
8. Financial products and services available
9. Request Information

1.  What does the Bible say about money and stewardship?    (Back To Top)

Introduction

Did you know that there are roughly 2,350 verses concerning money in the Bible? That’s almost twice as many as verses about faith and prayer combined. Jesus had a lot to say about money:

• Nearly 15% of everything Jesus spoke about related to money and possessions.
• 16 out of his 38 parables dealt with the topic of money.
• The only subject Jesus taught more about than money was the Kingdom of God.

Why? Because the Scriptures are very clear about an inherent connection between a person's spiritual life, attitudes and actions concerning money and possessions.

Envoy Financial provides “Trusted Advice Along The Way” for today’s Christian Ministry Professionals. Whether your church is large, small, or any size in between, Envoy Financial is equipped with the wisdom and knowledge to help you make the right decisions from a biblical stewardship perspective.

The Bible is clear that we are to save for our future.  “A wise man saves for the future, but a foolish man spends whatever he gets.” (Proverbs 21:20, NIV)

Scriptures

Money, Wealth, Blessing and Prosperity

• A wise man saves for the future – Proverbs 21:20
• Money little by little grows  - Proverbs 13:11
• Ability to produce wealth – Deuteronomy 8:18
• The blessing of the Lord brings wealth – Proverbs 10:22
• Diligent hands bring wealth  - Proverbs 10:4
• Pursue righteousness and find prosperity - Proverbs 21:21
• All hard work leads to profit - Proverbs 14:23
• Oh, that you would bless me indeed – 1 Chronicles 4:9-10
• Then you will be prosperous and successful – Joshua 1:8
• God gives any man wealth and possessions – Ecclesiastes 5:19
• A generous man will be blessed - Proverbs 22:9
• Enduring wealth and prosperity - Proverbs 8:18
• Trusting God leads to prosperity - Proverbs 30:8-9
• Steady plotting brings prosperity - Proverbs 21:5
• Trying to get rich quick - Proverbs 28:20, 22
• Do not boast in riches – Jeremiah 9:23-24
• No hope in wealth – I Timothy 6:17-19

Generosity, Contentment and Giving

• More blessed to give than receive – Acts 20:35
• Give and it will be given to you – Luke 6:38
• The righteous eat to their hearts content – Proverbs 13:25
• A generous man will be blessed - Proverbs 22:9
• Support those who teach the word – Galatians 6:6
• Sow generously and reap generously – 2 Corinthians 9:6
• I was hungry and you gave me something to eat – Matthew 25:35-40
• Godliness with contentment is great gain  - 1 Timothy 6:6
• Content with your pay  - Luke 3:14
• Be content with what you have – Hebrews 13:5
• I have learned to be content  - Philippians 4:11
• Everything we have and give comes from God – 1 Chronicles 29:11-17
• Rich in all things, generous on all occasions  - 2 Corinthians 9:11
• God loves a cheerful giver - 2 Corinthians 9:7
• Excel in the grace of giving  - 2 Corinthians 8:7

Greed and Coveting

• Greedy man brings trouble to his family – Proverbs 15:27
• Put to death greed – Colossians 3:5
• Be on guard against greed – Luke 12:15
• The love of money  - 1 Timothy 6:10
• Dishonest money  - Proverbs 13:11
• I have not coveted anyone’s silver or gold – Acts 20:33
• Can’t serve two masters  - Matthew 6:24
• Free from the love of money  - Hebrews 13:5
• Do not trust in riches  - Proverbs 11:28
• Where your treasure is – Luke 12:34

2.  Five essential financial questions -- “Am I Financially Healthy?”    (Back To Top)

• What happens when the paycheck stops?
  • Are you ready for retirement, or what we refer to as your Future-Funded Ministry ^TM?
  • Proverbs 21:20 states that a wise man saves for the future.
  • Envoy Financial is committed to helping you grow the resources God has entrusted to you from a biblical stewardship perspective.
  
  
• What happens if I need to be cared for?
  • Will you have the resources to live if you become unable to perform the normal activities of life?
  • Although Envoy Financial doesn’t provide Long Term Care Insurance, we encourage you to look into these important benefits through your employer or an individual policy.  
  
  
• What happens if I am not healthy?
  • Will you have the finances to cover hospitalization, unexpected doctor visits or medication?
  • With the rising costs of medical expenses, you must be protected and transfer some of this risk to a Health Insurance provider.  Although Envoy Financial doesn’t provide Health Insurance, we understand how crucial this coverage is for your family and your financial health.
  
  
• What happens if I become disabled?
  • What would happen if you became disabled or unable to work?
  • Although Envoy Financial doesn’t provide Disability Insurance, we encourage you to look into these important benefits through your employer or an individual policy.
    
• What happens if I die before I have settled my financial commitments?
  • If you die unexpectedly, what will happen to those you love?
  • If you are the primary breadwinner in your family or if your family depends on a portion of your income to survive, you will need to make up that shortfall if anything happens to you. 
  • At Envoy Financial, we have Life Insurance Specialists to help you get the right protection to meet your family’s need.  This is a foundational piece to having your financial house in order.

3.  What are the best retirement plans for missionaries?    (Back To Top)

This question is often asked of the LifeStage team at Envoy Financial. Some plans work well for missionaries, while others do not.  Basically, it’s important to have a plan since saving something is better than doing nothing.  If you don’t like your current mission or organization’s plan, here are few suggestions to improve it:

Most organizations have one or more of the following plans available:

403(b):

• This is the most common type of retirement plan for non-profit organizations.
• A 403(b) allows you to save money and diversify your resources into a variety of investments that will become available to you after age 59 ½.
• A great plan if you are commissioned or ordained since it can be used to provide housing allowance income in retirement.

401(k):

• This plan works like a 403(b) in some ways and is the most common plan for for-profit organizations.
• 401(k) plan does not have the housing allowance option available in retirement.

Roth 403(b):

• This plan usually makes the most sense for most missionaries:
  • A Roth 403(b) allows you to save money on an after-tax basis.
  • Contributing on an after-tax basis is great for people qualifying for the Foreign Earned Income Exclusion, since you can withdraw your funds tax-free when in retirement.
  • Missionaries and pastors overseas can save a good deal of money in retirement because the money is taken out on a tax-free basis.  This feature is not available with any other plan listed.

IRA

• An IRA is the least utilized plan for missionaries due to the low contribution limits, and the fact that the missionary does not set up the plan with the organization; it is set up with a separate entity.

Roth IRA

• It is not legal for a missionary overseas to use this program if they are not paying taxes in the US due to the foreign earned income exclusion.

If you have any questions about how to consolidate or use any of the plans listed above, please contact an Envoy Financial LifeStage Specialist at (888) 879-1376, option 1 or by email.

4.  Important tax benefits for overseas missionaries    (Back To Top)

• Definition of a missionary – Licensed, Commissioned, or Ordained
  • Pastors can take advantage of many unique tax benefits for your 403(b) Retirement Plan.  To do so, by law, you must Licensed, Ordained or Commissioned as understood in the IRS tax code.  Consult your tax advisor or speak to a qualified representative at Envoy Financial at (888) 879-1376, option 1.

• Link to IRS Website and Tax Guide For Churches and Religious Organizations
  • http://www.irs.gov/pub/irs-pdf/p1828.pdf 

• Contribution Limits for 403(b) and 401(k) plans:

Your retirement plan continues to be one of the very best ways to prepare for the future financially.  The limits change each year. (Click here to access the 2010 Contribution Limits.) Here are some important facts:

Be aware that these limits are higher than many participants can use. However, there are circumstances where increased contributions are important, including employer contributions as part of a severance package for up to 5 years after separation from service.

Be aware that retirement plan account types need to be added together to determine the contribution limits. For instance, in 2010, the elective deferral limit will be $16,500.  An employee who contributes $6,500 to an after-tax Roth 403(b) account can only contribute $10,000 to their before-tax Traditional 403(b) account. Roth 403(b) contributions are part of the $16,500 limit – not in addition to pre-tax contributions – in other words no double dipping.

1. Among the most frequently asked questions about compensation for the purposes of the 403(b) contribution limits are whether or not a minister’s housing allowance can be included in compensation for purposes of the maximum annual contribution calculation (100% of compensation).  The answer is “no.”

The housing allowance is not a taxable benefit.  Section 107 of the Code specifically states that housing allowance is not includible in gross income; hence is not subject to taxation.

If you have additional questions, please contact our CMO Ministry Services Manager at (888) 879-1376, ext. 228.

• Summary of Tax Benefits:
  • Housing Allowance - Section 107 of the Code specifically states that housing allowance is not includible in gross income; therefore, it is not subject to taxation.
    
  • No Forced RMD at Age 70 ½ - In a 403(b) plan, as long as you are continuing to work (even part time), you are not required to take a Required Minimum Distribution at age 70½.  This is significant because if you are drawing an income, you can continue to contribute to your plan and defer money from taxation.
    
  • Roth Plans – Roth is now available in a 403(b) plan, which allows you to contribute to your plan on an after-tax basis, grow your principal and earnings tax-free and take tax-free distributions when you ultimately draw income out of your plan.  Because of other tax benefits to pastors, the Roth after-tax contributions to your plan can be a powerful combination to building a significant Future-Funded Ministry ^TM.
    
  • Avoid Paying SECA Taxes – Many pastors can gain a tax benefit by contributing to their plans on a pre-tax basis which may reduce their income tax burden and the SECA taxes.
    • The Self-Employment Contributions Act (SECA) tax is basically the business owner's version of the FICA tax that many pastors pay. Like FICA, it is made up of your "contributions" to both the Social Security and Medicare programs.
    • However, the basic tax rate for the self-employed under SECA is 15.30 percent - twice the 7.65 percent rate that employees must pay on their paychecks as FICA tax - to reflect the fact that employees pay one-half the FICA tax and employers pay the other half.  
      
  • Higher Contribution Limits Than IRA’s – The maximum combined employee and employer (415 Limits) if the age 50 Catch Up applies is $54,500 or (100% of the includable compensation – apply the lesser of the two.).  Please review the contribution limits section for more specific details.

• How can my 403(b) help me when I retire?
  
  
  • The Only Plan You Need – Once you are ready to take an income stream from your 403(b), there are many systematic flexible payout options available to you.  You may take monthly, quarterly, semi-annual and annual payments. Or if you prefer, take money out whenever you need it and not systematically.  
    
  • Envoy Financial Service Continues – The Envoy Financial Ministry Service Team and LifeStage Specialists continue to provide you with service and “Trusted Advice Along The Way” during your Future-Funded Ministry^TM

5.  Retirement Planning and Savings Calculators    (Back To Top)

The calculators are organized in the following categories and can be accessed on our Calculators page by clicking here:

Retirement and Inflation
Saving and Investing
Loans and Credit Cards
Cash Management
Risk Management
Estate Planning
Taxes and IRAs

If after using any of the calculators, you have questions or need financial planning assistance, please contact us at (888) 879-1376, option 1 or by email to schedule an appointment with a LifeStage Specialist.  We look forward to serving you!


6.  How do I counsel couples about financial stewardship issues?    (Back To Top)

Introducing your church resource for counseling couples on financial stewardship issues.

Cents & Sensibility How Couples Can Agree About Money By Scott and Bethany Palmer "Discover your "Money Personality" and that of your spouse - then get on your way to peaceable ways of saving and spending!" Book Summary: Conflicts about money are often the key source of arguments between couples. That's because most of the time, spouses look at financial matters very differently. One might be a "saver" while the other is a "spender." But neither one is necessarily "right" in the way they choose to handle family funds.

This is a relational guidebook to help married and engaged couples build (or rebuild) their relationship by working together on financial issues. With God's principles at work, there is hope for arriving at financial balance! Couples learn to understand and respect each other, and by communicating more effectively, can begin the journey to financial harmony - and joy!

Includes Readers' Guide for personal reflection or group study!

Contents:
Part One: The State of Your Union: The Five Most Common Ways Couples Disagree About Money
Part Two: Your Monetary Makeup: Why You and Your Partner Approach Finances the Way You Do
Part Three: Checks and Balances: Keys to Getting on the Same Financial Page/Great Communication Tips
Part Four: Developing a Positive, Prosperous Partnership: Five Hot-Button Issues Couples Need to Agree On

Praise for Cents & Sensibility:

With this book the Palmers may well emerge as the financial counselors for a new generation of debt-weary couples.  Their advice is pointed, practical, rooted in experience, and certain to strengthen thousands of marriages. - Tom Minnery, Vice President, Focus on the Family

Scott and Bethany have been helping people reach their financial goals for fifteen years.  This book helps couples reach their relationship goals as well.  A must read! - Ed Forst, President, Lincoln Investment Planning, Inc.

For years, hundreds of organizations have trusted Bethany and Scott to give their employees sound financial advice.  I trust them.  Read Cents and Sensibility - and you'll trust them, too! - John Pearson, President/CEO, Christian Management Association

7. Common investment mistakes missionaries must avoid    (Back To Top)

Star Struck and/or Chasing Returns

• Many investors have a tendency to select mutual funds solely based on the fund’s past history or if they are highly rated with 4 or 5 stars by a mutual fund rating service. Unfortunately, yesterday's top performers may be tomorrow’s losers. 
• There are many other important factors to consider when selecting an investment and our LifeStage Specialists are equipped to serve you with excellence in your investment selections.
• This is the Envoy Financial difference – you are truly not on your own, our ministry team is here to serve you with “Trusted Advice Along The Way.”

Eggs In One Basket

• Starting in 2001 with the 9/11 attack, the S&P 500 had three down years in a row for the first time in our country’s history.  One thing that this era has taught us is to not put our “eggs in one basket.”  It is extremely important to build a portfolio that takes advantage of sound principles like diversification, asset allocation and rebalancing your portfolio.
• There are many other important factors to consider when selecting an investment and our LifeStage Specialists are equipped to serve you with excellence in your investment selections. 
• This is the Envoy Financial difference – you are truly not on your own, our ministry team is here to serve you with “Trusted Advice Along The Way.”

Saving Too Little

• How much should you save?  Is there a rule of thumb or guideline?  Yes and no.
• Your Envoy Financial LifeStage Specialist provides you with “Trusted Advice Along The Way” for building your significant Future-Funded Ministry™ based on your individual goals and current situation.  We can help you navigate through these types of questions and review your plan to ensure that you are indeed on track. 
• This is the Envoy Financial difference – you are truly not on your own, our ministry team is here to serve you with “Trusted Advice Along The Way.”

Fees

• Envoy Financial is a Christian Non-Profit organization dedicated to helping Ministries and their employees manage the resources entrusted to their care and is extremely sensitive to the fees that are built into your plan.   
• We understand that your ministry needs keep expenses very low and we are happy to offer you the industry’s lowest fees, and retirement plan platforms that maximize your performance and minimize your fees.  There are fees in every plan.  However, Envoy Financial is committed to offering plans with the lowest fees in the industry. 
• This is the Envoy Financial difference – you are truly not on your own, our ministry team is here to serve you with “Trusted Advice Along The Way.”

Fees vs. Performance

God wants us to be wise stewards. However, low fees do not always mean better performance.  Fees vary depending upon the type of investment funds.  For example, international funds have higher fees than government bond funds.  Be aware of them, but don’t let fees hold you back.  It’s important to look at the overall balance of your account to make sure you are in the right sectors with the right percentages.

I Can Manage Myself

You wouldn’t perform surgery on yourself; you’d allow a seasoned surgeon to operate. Likewise, Envoy Financial specialists believe that you need seasoned professionals to serve you with “Trusted Advice Along The Way.”  The Bible states very clearly in Proverbs 12:15, “The way of the fool is right in his own eyes, but a wise man is he who listens to counsel.”  And Proverbs 15:22 states, “Plans fail for lack of counsel, but with many advisers they succeed.”

Many people want to have a “hands-on” approach to their finances.  We find, however, that most people:

1. Lack knowledge about investing
2. Are not as engaged with the frequent changes of the market to be able to adjust their investment strategy when needed
3. Are too engaged with the returns game – and adjust their investment strategy too often
4. Are too busy, or out of the country, to pay close attention to their accounts
5. Really want more protection from the ups and downs of the market

These factors prevent most people from being able to mange their accounts effectively.  Envoy Financial’s mission is to give you Trusted Advice for your accounts – and we have many ways to do this:

• Your employer may have included access to money managers (Advisory Services) in your retirement plan.  If available, these choices can be detailed for you during an appointment with a LifeStage Specialist.

Do I rent or own a property in a foreign country?

Many missionaries and pastors abroad wrestle with the question of renting or buying a home while overseas.  There are positives and negatives to each.  Obviously the positive is that instead of building equity for someone else you are building it for yourself.  You are putting yourself in the position of having equity in a home should you decide to remain in this overseas location.

The negatives of selling a property while overseas are fairly similar to selling in the US: taxes and timing.  If you sell the property and move back to the US, you need to be aware of both the taxes you will pay and the exchange rate you will receive for the transaction.  At Envoy we have seen many people returning from overseas do extremely well with the exchange rates and others that were not as fortunate with the timing.  If the timing is unfavorable due to the exchange rate or price fluctuations in the US housing market, you can always rent the property until a better time to sell.

At Envoy financial we believe it is a wise stewardship decision anytime you can build equity in an investment.  We also suggest doing your research and taking your time before you buy.

8.  Financial Products and Services Available     (Back To Top)

Retirement Plans

403(b)
Roth 403(b)
Joint Accounts (Non-qualified)
401(k)
Roth 401(k)
SEP IRAs
Simple IRAs
Executive Financial Solutions
Rollovers and Consolidation
Annuities
     Fixed
     Equity Index

IRA Planning

Roth
Traditional

Education Savings Plans
Life Insurance
The Integrity Collection (Faith-Based Funds)
EZ Flex
Simple Retirement Solutions
Research and Education
Asset Management (Advisory Programs)

9.  Information Request:     (Back To Top)

I would like a planning appointment regarding (check all that apply):

  Setting up a retirement plan
  Transfers/rollovers
  A life insurance review
  Sophisticated retirement and investment analysis
  Education savings plans
  Budgeting
  Required minimum distribution
  Emergency funds and short-term savings
  Debt reduction

Name:
Phone number:
Email address:
Ministry name:
City:
Country:
Skype address:
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