Clergy

Stewardship in Finances

Clergy face a unique set of financial planning challenges that often stem from their "dual tax status. At Kobo Wealth Strategies, we understand those unique financial planning challenges and can provide guidance and real solutions. We know this because our founder is also a pastor, so he shares many of the concerns clergy have financially.

Five Major Planning Concerns

The Housing Allowance "Double-Edged Sword"

The Clergy Housing Allowance is the most significant tax benefit available, but it is frequently mismanaged. At Kobo, we help you understand the benefit while helping you mitigate the planning risks associated with it.

Dual Tax Status and SECA (Social Security)

Clergy are generally treated as employees for income tax purposes but as self-employed for Social Security. You need to understand the costs and the ways to offset this financial planning trap. We can help you understand how.

Sunset of the 20% QBI Deduction

Many clergy who file as self-employed or have secondary 1099 income (weddings, funerals, speaking) have benefited from the Qualified Business Income (QBI) deduction. That's going away in 2026, so what does that mean for you?

Retirement Planning

Most denominations have shifted the risk for retirement planning from the denomination to clergy. You now must become an active manager of your own portfolios to ensure you don't outlive your savings.

Parsonage vs. Home Ownership

Living in a church-provided parsonage creates a unique retirement hurdle: zero home equity. When you retire, what are your options for housing? You need to think about that and we can help.

Bottom line, if you are clergy, your focus is taking care of your parishoners and honoring your call, but who is taking care of your financial plan and ensuring you can retire with dignity?

Talk to us at Kobo Wealth Strategies and we can help you.

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