"How Much Do I Need for Retirement?" Finding your Maximized Stewardship Number
How Much Do I Need for Retirement? Introducing the Maximized Stewardship Number
Most financial blogs ask, “How much do I need to retire?” but for those of us trying to follow Christ and live for eternity, that’s not a fulfilling question. We’re not called merely to retire into leisure. We’re called to be faithful to Christ to the very end of our lives.
That’s why I prefer a better question:
What is my Maximized Stewardship Number?
This number isn’t about beaches, golf courses, or RV trips across the country, although this number can certainly include leisure. It’s about freedom—freedom to give radically, serve without constraint, and go wherever God calls without financial hesitation. It’s the number that, once reached, unleashes your ability to be fully available to God's mission—across the street or across the ocean.
Let’s dig into how you calculate it—and how you can reach it with purpose and joy.
Is a Maximized Stewardship Number goal for Everyone?
While the Maximized Stewardship Number is a powerful concept, it’s important to recognize that this path may not be the right fit for everyone. Achieving financial freedom to serve, give, and evangelize is a noble goal, but it requires a unique mindset and approach that might not align with every individual or family’s calling.
For some, traditional work—whether in a profession or a business—remains their primary mission. God calls many people to be salt and light in workplaces, creating wealth, providing for their families, and stewarding their resources within the framework of their careers. In fact, some may feel called to work even into their later years, to continue making a positive impact through their occupations or businesses (Acts 18:1–3; 2 Corinthians 11:7-9).
Moreover, the path to achieving a Maximized Stewardship Number may be challenging for those with certain financial responsibilities, like supporting aging parents, managing significant debt, or raising large families. For these individuals, the idea of financial independence might feel distant or even overwhelming.
It's also essential to remember that some Christians may be called to different expressions of ministry—those that require financial backing (1 Thessalonians 2:9; 2 Thessalonians 3:7–9) or involvement in projects that are funded through traditional employment or investments. The world is full of needs, and not all of them can be met by those who are financially independent.
Finally, the goal of the Christian life is not financial independence; rather, it is contentment. A Christian can reach financial independence and sin because they are not content (Hebrews 13:5).
Defining the Maximized Stewardship Number
Here’s the simple definition:
Your Maximized Stewardship Number is the amount of invested assets you need in order to live without relying on employment income, so you are free to give generously, serve faithfully, and evangelize overseas.
It’s not about stepping away from work—it’s about stepping out of financial captivity. You’re no longer tied to a paycheck. Work becomes a choice, ministry becomes flexible, and generosity can flourish.
So how do you get to that number?
The 4% Rule: The Starting Line
Let’s talk math—specifically the 4% Rule, the most popular rule of thumb for figuring out how much you need.
This rule was popularized by financial planner William Bengen in his 1994 paper “Determining Withdrawal Rates Using Historical Data”. He found that, based on historical market data (including the Great Depression and high inflation of the '70s), you could withdraw 4% of your retirement portfolio each year, adjusted for inflation, and expect your money to last at least 30 years.
Bengen tested various asset allocations using historical U.S. market data (1926–1976) and concluded that a 50%–75% stock allocation (mostly large-cap U.S. stocks and intermediate-term government bonds) produced the most reliable results. His 4% rule assumes a portfolio earning a real return averaging 5%–6% over time.
This was later backed up by the famous Trinity Study, which tested hundreds of historical retirement scenarios and arrived at the same conclusion.
Their most successful outcomes for the 4% rule came from portfolios with 50%–75% in stocks, matching Bengen’s findings, and they assumed historical real returns based on U.S. market data from 1926–1995.
In plain terms?
You need 25 times your annual expenses in order to reach your Maximized Stewardship Number.
Spending $40,000 a year? You’ll need $1 million. Spending $60,000 a year? You’ll need $1.5 million.
Since it's impossible to know how much you'll spend in retirement, and in order to simplify this calculation, take the average of the last three years of annual expenses and multiply by 25. That's your Maximized Stewardship Number.
(Annual Expenses × 25 = Your Maximized Stewardship Number)
Does the 4% Rule Still Hold?
Many modern voices have wrestled with whether 4% is still safe:
-
White Coat Investor: Still defends the 4% rule as a good starting point, but recommends flexibility.
-
Money Guy Show: Suggests 3.5% may be safer if you want to build in more legacy or hedge against volatility.
-
Ramsey Solutions: Leans on 8% historical market returns and encourages saving aggressively through employer-sponsored plans.
-
Networthify: Lets you plug in your own numbers and retirement age to project when you can reach your goal.
So, is 4% still wise?
Yes—with this caveat: the 4% Rule assumes a long-term investment strategy, global diversification, and discipline. If your lifestyle is modest, your portfolio is robust, and your faith is strong, 4% works.
If you’re ultra-conservative or want to plan for multi-decade mission service, consider 3.5% (or even 3%).
Don’t Just Retire. Redeploy.
Too many Christians aim for a retirement filled with hobbies or hammocks. That’s not what we were made for. Jesus didn’t retire. Paul didn’t slow down in his later years. The Great Commission doesn't come with a sunset clause.
So let’s reframe the purpose.
When you hit your Maximized Stewardship Number:
-
You can say yes to long-term mission work.
-
You can serve in unpaid roles where the harvest is plentiful but the workers are few.
-
You can give to your local church at a scale that changes lives.
-
You can mentor younger families or support church plants.
This isn’t merely early retirement. It’s early redeployment.
Real-Life Example:
Let’s say a family of five lives on $50,000/year because they’ve paid off their house, homeschool their kids, and prioritize hospitality over vacations. They’d need about $1.25 million to hit their Maximized Stewardship Number.
Once they hit that number (through investing faithfully, minimizing lifestyle inflation, and staying focused), Dad can serve on the mission field. Mom can mentor younger moms in the neighborhood. They can support local church planting movements—and maybe even fund one.
They don’t stop working. They just stop working for money.
Closing Thoughts: It’s All God’s Anyway
Psalm 24:1 reminds us: “The earth is the Lord’s and everything in it.”
That includes your money, your portfolio, and yes, even your retirement.
Your Maximized Stewardship Number isn’t your “freedom from responsibility” number—it’s your “freedom to fulfill responsibility” number. It’s not an end. It’s a beginning.
So plan long-term. Give generously. Live below your means. Invest wisely. But more than anything:
Consider the possibilities when your time, talent, and treasure are fully released for God’s glory.
You don’t need millions. You need a mission. And a number that lets you say “yes” when God calls.
Want to Run Your Numbers?
Use these helpful calculators and resources:
Comments
Post a Comment