Retirement Planning Lessons From The Bible

The 24 books comprising the entire Hebrew Bible cover a wide range of topics in history, law, poetry, wisdom, and theology. Despite being written thousands of years ago, they still offer timeless wisdom that can be applied in many aspects of life, including proper financial management. Afterall, good advice withstands the test of time. Below are some key financial lessons from the Bible that will help readers as they prepare for their financial future:

Work Diligently: “The hand of the diligent makes rich” (Proverbs 10:4). I regularly remind clients of this lesson that consistent effort builds wealth over time.

Many of my most successful clients don’t have the highest income. Rather, they are families who’ve accumulated their wealth slowly. They were assiduous about saving money every paycheck and invested it prudently. Over decades, these funds accumulated into a seven and sometimes eight-figure portfolio. It doesn’t require magic to build wealth. It just requires diligence.

Save Consistently: Joseph’s seven-year famine plan is a masterclass in strategic planning (Genesis chapter 41, verses 29–36). Joseph stored grain during years of abundance to prepare for scarcity. Follow Joseph’s model, save and invest with foresight.

Folks need enough cash in their emergency account for a rainy day. If your compressor breaks or you need a new roof, an adequate cash cushion will help you avoid sweating the unforeseen expense. Additionally, saving 10-20% of your paycheck in your retirement account will give you the option of not working, or cutting back meaningfully, once you approach your mid-60s. Always remember to build your financial reserves during times of abundance.

Avoid Debt: “The borrower is servant to the lender” (Proverbs 22:7). The people who are in the best place financially are those who are not indebted to anybody. Sure, taking out a reasonable mortgage to buy a home may be sensible. A small, short-term loan from a bank, that is quickly repaid, to start your business may also be prudent. However, other forms of debt on your personal balance sheet should be avoided at all costs. You can’t get ahead financially with a mountain of debt weighing you down.

Reject Get-Rich-Quick Schemes: “Wealth gained hastily will dwindle” (Proverbs 13:11). There isn’t a week that goes by where a friend doesn’t call me about a “deal” he heard about from a friend or colleague. It’s always exclusive, offering a “friends and family discount” that will surely multiply their money within only a few years.

If something sounds too good to be true, it probably is. An investment that promises to increase your wealth rapidly will likely be taking a high level of risk. Risk and return are inextricably linked. Stick with boring investments to avoid big mistakes from get-rich-quick schemes.

This concept is also relevant within the context of one’s career. It seems everyone now has a side gig. The accountant dabbles in money management, the doctor dabbles in real estate development, and everyone is a part time social media influencer. Most people will have far more financial success by refraining from these “side hustles” and focusing on becoming more proficient within their area of expertise. Slow and steady wins the race.

Plan Ahead: “Prepare your work outside; get everything ready for yourself in the field, and after that build your house” (Proverbs 24:27). Prioritize your financial foundation before making major financial commitments.

Healthy cash flow is the cornerstone of personal finance. To achieve that, it’s imperative to position yourself to earn a livable wage while you are young. Attain proper schooling or training before launching your own business or career. Take time to learn and develop proper skills. This foundation sets a person up for success, allowing them to earn enough money to live their life without having to rely on others for financial support.

Diversification and Risk Management: “Divide your portion into seven, or even eight, for you do not know what disaster may occur on the earth” (Ecclesiastes 11:2). This is a clear endorsement of diversification, which is not putting all your eggs in one basket.

Markets go through cycles, industries go in and out of favor, and individual investments may experience turbulent times. This reality is why investors should spread their nest egg across multiple areas of the market. While diversification guarantees that you will never experience the highest returns in any one calendar year, it also ensures that you won’t blow up your portfolio in a downturn.

Be Generous: “A generous person will prosper; whoever refreshes others will be refreshed” (Proverbs 11:25). The concept of charity is not novel. However, in the chaos of life, it’s sometimes easy to overlook. Periodically review your finances to ensure you are giving to charity every year. I encourage clients to give at least 10% of their net income, borrowing from tithing and gleaning laws (Leviticus 19:9–10), reflecting a system where wealth is shared. In addition to supporting wonderful causes and helping folks who are down on their luck, the act of giving also fosters abundance and community.

Seek Wise Counsel: “Without counsel plans fail, but with many advisors they succeed” (Proverbs 15:22). Hiring a professional to guide you in any area with which you are unfamiliar makes sense. A competent advisor can help you avoid mistakes, offer recommendations to achieve your goals, and provide broad perspective that the average person does not possess without years of experience in a specific field. Even for people who do have a background in investing, an advisor can offer benefits like holding you accountable, challenging your assumptions, and motivating you to stay on the right path towards financial success.

Smart Decision Making: “Wisdom itself is more valuable than gold” (Proverbs 16:16). Accumulating a nest egg isn’t just about numbers. Financial success is about making thoughtful, principled decisions and avoiding mistakes with your money. Educating yourself on the key concepts of personal finance that apply to your life will help guide you through turbulent times.

In today’s world, with countless excellent financial bloggers and podcasters at your fingertips, there is no excuse for being totally ignorant about your finances. Developing a baseline level of knowledge can help you avoid some big money mistakes to which we are all susceptible.

Maintaining perspective: “The earth is the Lord’s and everything in it.” (Psalm 24:1) and “It is He who gives you power to get wealth” (Deuteronomy 8:18).

Whether you believe in a higher being or not, the concept of good fortune is not a foreign idea to most people. Anyone who has worked in business and has some life experience can attest to the fact that without a bit of luck, timing, and a fortuitous set of circumstances, it’s impossible to succeed. No matter how hard you work, or how much you plan ahead, money comes and goes. Recession, competition, legal entanglements, and other unexpected circumstances can all erode wealth. Maintaining the perspective that not everything is within our control encourages humility and a sense of responsibility to manage the resources we are fortunate to accumulate.

Wealth and happiness: “Better is a dry morsel with quiet than a house full of feasting with strife” (Proverbs 17:1). This teaches that peace of mind and integrity outweigh material excess. As The Notorious B.I.G said succinctly “Mo Money Mo Problems.”

There is nothing wrong with the desire to increase your wealth. However, when your money becomes the essence of your being, it will inevitably lead to hardship. The key is to appreciate what you have and not lose perspective on what is important in life.

Legacy planning: “Wisdom is good with an inheritance” (Ecclesiastes 7:11). This verse suggests that wisdom paired with an inheritance is especially powerful.

Leaving a legacy is not only about the transmission of wealth, but also about the transmission of values and knowledge to the next generation. While money by itself can be fleeting, wisdom helps ensure it’s used well, benefiting not just the individual, but future generations.

A new season: As it says in Ecclesiastes 3:1 (and The Byrds!) “To everything there is a season…”. Retirement is a new season. Not a decline, but a continuation in different forms of impact and vitality. “They shall still bear fruit in old age; they shall be fresh and flourishing” (Psalm 92:14).

I try to emphasize to clients who are approaching retirement that it is essential to retire to something and not from something. It is an opportunity to shift focus from career to calling and from earning to enriching. Make the most of the unique opportunity to give back to your community, spend more time with your family, and use the experience and skills you’ve spent a lifetime accumulating to benefit society at large. The individuals with the most fulfilling Golden Years maintain a strong social network, a way to stay mentally sharp, and the ability to keep their days structured.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. ParkBridge Wealth Management is not affiliated with Kestra IS or Kestra AS. Investor Disclosures: https://www.kestrafinancial.com/disclosures.