Dear Chuck,

I’m concerned about young couples I know who rely heavily upon credit cards. They appear to have no concern for the future. I don’t sense a desire to be good stewards in their approach to finances.

Concerned Boomer

Dear Concerned Boomer,

It is not only a perceived concern but a real one and not just for millenials, but for millions of Americans across the board regarding poor financial management habits.

Experian released research on our nation’s consumer credit card debt in May 2019. It reveals a link between a perceived healthy economy/low unemployment rate and Americans’ confidence in spending. Total credit card debt has increased 29% over the past five years, reaching $807 billion for first quarter 2019. Debt levels increased 6% in the past year alone.

An article in USA Today reveals concerns as well. Consider the following facts from their recent exclusive report, based on a survey by the FINRA Investor Education Foundation.

The economy appears to be booming.

•      We’re a month short of the longest economic expansion ever
•      Unemployment is at 50-year low
•      Stocks hit the longest bull market last year and are nearing new highs
•      Home values hit a record high in first quarter 2019

It’s not all bad news.

•      Only 1 in 5 had a decrease in income
•      Half can comfortably pay their monthly bills

Yet, Americans are financially stressed.

•      Only 58% have a retirement account
•     1 in 4 have past-due medical bills
•     37% say they have too much debt
•      Half wish they’d gone to a cheaper college, didn’t understand how much they would owe, worry they won’t ever be able to pay off their loans.
•      Nearly half have not set aside money to cover expenses for 3 months

Gerry Walsh, president of FINRA, was quoted in the same USA Today article:

I give our nation’s financial capability a solid C, leaning toward a C-minus. While some Americans feel better about their finances now compared with 10 years ago, too many face obstacles that will likely keep us as a nation from acing financial capability any time soon.

Regardless of how well an economy is doing, true financial freedom is a journey that takes some people longer than others. It’s a condition of the heart, not just the condition of the finances.

True Stewardship

Many people were not taught Biblical financial principles, so their decision-making is out of ignorance. Others fail to obey truth that they already know.

It starts with giving first. God’s Word teaches us that it is better to give than to receive (Acts 20:35). Yet, far too many Christians make giving an act of tipping what is left over, not making it their first priority.

Discipline and self control are required to change bad habits. Spending less than one makes can be challenging. But, it is essential to build savings and pay down debt. It will require time and dedication and may require radical lifestyle changes.

It is an opportunity to depend on God. Full surrender of any self-reliance will grant recognition of His daily provision.

As Hebrews 12:11 says, For the moment all discipline seems painful rather than pleasant, but later it yields the peaceful fruit of righteousness to those who have been trained by it. (ESV)

Satan desires to waylay people on the path to stewardship, especially robbing them of joy in the journey. That’s why it is vital that people commit themselves to the Lord and depend on Him, no matter what they encounter along the way.

There will be setbacks; there will be discouragement. Prayer, mentors, accountability partners, and trusted friends can strengthen young and old along the way. They can warn of dangers and celebrate victories. Both offense and defense are needed as people learn to steward wisely.

Paul’s instructions to the Thessalonians are just as important to us today: Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you. (1 Thessalonians 5:16-18 ESV)

Those who are financially stable can make great strides at this time. They can set aside emergency funds, save, invest, and give generously.

Consider an Ironing Board

For the single, single parent, or widow, many financial decisions are made in a vacuum. They often feel embarrassed or vulnerable so they avoid seeking professional advice or wise counsel. A friend of mine suggests forming an “ironing board.” This is a small group of friends or advisors who volunteer to meet with you to help you iron out any financial challenges you have or give input when making a big decision. I think it is a great idea so long as your board does not have anything to gain from offering you advice. Avoid those who are simply trying to sell you something or charge a fee for their time. Most churches have godly people full of financial wisdom who would be great candidates to help.

Get Out of Debt Tips

If you or a loved one are struggling with overwhelming credit card debt, I’d encourage you to contact our friends at Christian Credit Counselors. We’ve worked with them for years because we share the same biblical values and trust them to help those struggling. You can start with a free debt analysis by clicking here.  

Originally posted on the Christian Post, June 28, 2019

Dear Chuck,

My wife and I have decided to give regularly. She’s thrilled, I’m not. If God loves a cheerful giver, I dread knowing what He thinks of me.

Modern Scrooge

Dear Scrooge,

While I don’t like addressing you as Scrooge, Charles Dickens’ classic book Christmas Carol about a greedy, stingy, selfish man by that name has a very happy ending. Scrooge experienced a transformation of his heart and wallet.

I do appreciate your honesty and sincerely understand your pain. I once walked in your shoes before God changed my heart. That is what it took for me and my wife to become united on the issue of giving generously and cheerfully.

God Loves You

Your dread in knowing what He thinks of you is answered in 1 John 4:18-19: There is no fear in love, but perfect love casts out fear. For fear has to do with punishment, and whoever fears has not been perfected in love. We love because he first loved us. If you believe in God, then you do not have to worry about punishment. Discipline? Yes, but only because he loves you and wants to conform you into His image.

Thomas Chalmers wrote: The love of God and the love of the world are two affections, not merely in a state of rivalship, but in a state of enmity…the only way to dispossess [the heart] of an old affection, is by the expulsive power of a new one.

The expulsive power of a new affection? Yes. God.

How? And, how does this impact our desire to give generously and joyfully?

God Loves It When You Give With Joy

The Bible, God’s living Word, reveals who He is and what He’s done for us. Reading it gives us a glimpse into the depths of His marvelous grace and mercy.

In it we learn that He is our Provider. When we ponder this deeply, the correct question to ask ourselves is not “how much of my money should I give?” but, “ how much of God’s money should I spend on myself?”

Since we have four boys, I can recall taking them to a fast food place for hamburgers and fries. It gave me great pleasure to get them a large cheeseburger with hot french fries. On more than one occasion, since I did not order fries, I would reach across the table to take one of the boy’s fries before they were all gone.  Almost instantly, one of the boys would say, “Hey Dad, that is mine!!” He had forgotten that I provided the burgers and every single french fry on the table…all of them! He had also forgotten that I could provide all the fries he likely would ever be interested in eating! These became teaching moments for our boys. (They have since become much more willing to share their fries when I want a few.)

But doesn’t that give you a picture of our own attitudes? God provides to meet all of our needs and we balk at an opportunity to give what He gave us! It gave Him joy to provide; He wants us to find joy in giving it to others!  

As Crown’s founder, Larry Burkett, used to be fond of saying: “Most of what God has given you is not for you.”

Although many are deceived into believing otherwise, God is greater than anything the world offers. He is love. And, we love because He first loved us.

Give Because You Love

To know His love, we have to fill and renew our minds on Truth, as Romans 12:2 teaches. It’s how we snuff out worldly affections and adopt God’s. Through Bible reading, study, prayer, and worship in the local church, our hearts become tuned to His. Generosity and service become a desire – a natural outflow of a heart kept in the love of God.

But you, beloved, building yourselves up in your most holy faith and praying in the Holy Spirit, keep yourselves in the love of God… (Jude 1:20-21a ESV)

God’s economic message is that we trust our needs will be met one day at a time. We then demonstrate trust in His faithfulness to provide for our future needs as we serve the needs of others. Couples who align their hearts in this way acknowledge that their prosperity is entrusted to God’s loving care.

Beware of Fear

It has been my observation through years of counseling individuals and couples about giving is they are often gripped by fear. Their concerns about the future cause them to get into a “what if” mindset. Maybe they have a desire to make a large gift then they are hit with the first “what if… the hot water heater goes out?” Suddenly they reduce the amount a little until the next “what if…the kids need braces?” strikes. Now the amount gets smaller. This keeps happening until the amount God put on your heart is reduced to far less than you had hoped you would give.  You decide it is better to keep most all of the french fries for yourself.

Practical Tips

•      Start a list of what God’s provided, including what money cannot buy.
•      Make consistent giving your top priority.
•      Give away something that you treasure.
•      Practice meekness in your lifestyle choices.
•      Serve the poor in your community, nation, and the world.
•      Volunteer to work on church and community projects.
•      Pray, with your wife, that your treasures will be in heaven and not on earth.
•      Read the Bible and biographies of heroes of the faith.
•      Examine where you spend most of your time.
•      Do your friends encourage materialism? Guard their influence on you.
•      Limit exposure to advertising, commercials, and shopping.
•      Establish financial goals that impact God’s kingdom.
•      Write your obituary and include how you hope to be remembered.

Pray

Help me to be joyfully generous with all my resources, Lord. Open my eyes to the needs around me, fill me with compassion, and help me to view everything I have as a tool in my hands to love others well in the name of Jesus. I want to be a channel that you use to funnel resources back into growing your Kingdom. Help me to honor my wife’s desire for us to become united and generous as a couple.

Remember that you are not under a law or taxation plan. This is what God wants for you as you mature and grow in your faith.

Each one must give as he has decided in his heart not reluctantly or under compulsion, for God loves a cheerful giver.  (2 Corinthians 9:7 ESV)

Originally published on the Christian Post, June 21, 2019. 

Dear Chuck,

We have a lot of debt. Rather than taking on another job or trying to excel at his current one, my husband is seeking money in undesirable places. He buys weekly lottery tickets, shops garage sales and thrift stores looking for “treasure.” Meanwhile, I’m teaching piano lessons in our home while trying to maintain sanity in this situation.

Help Please

Dear Help,

I am sorry that you and your husband are not united around an approach to solving the financial challenges that you have. Maintaining unity in your marriage is your first priority; fixing your financial problems is a secondary priority. Let’s start with a way to unite as husband and wife then we’ll talk about the financial strategies your husband is using.

Getting on the Same Page

Start by asking your husband to have a “money date” or a series of dates. This is a quiet evening to have a meaningful discussion to begin the process of unifying around your financial goals. It will take an effort to be patient and listen to each other to find your common desires. Crown has resources that can assist you in the process here.

Financial Choices

I have found over the years that people are fascinated by get rich quick stories. Even God’s people are deceived into thinking that they would use the money for good should God grant them such ‘luck’! But, the truth is that money is best multiplied slowly, over time, by following the principles the Lord gave us.

Occasionally we hear of people who stumble upon incredible finds at garage sales. And, the thought of attic discoveries and buried treasure are indeed exciting. But, the reality of those things happening are rare. Unless one is trained to recognize value, the time invested is questionable.

I’m no expert in this “profession”. But, I know it takes many hours to shop, purchase, find appraisers, then buyers. And, when debt is mounting, hard work and focused time in planning and budgeting is needed to make progress towards becoming debt free.

Lotteries are promoted as a simple way to get what we need. Bloomberg reports that the lowest-income households spend the most on tickets. They are purchased based on chance, to quickly and easily obtain a large sum of money. But the Lord does not want us relying on random chance to see our needs met.

Consider Proverbs 24:3-4: By wisdom a house is built, and by understanding it is established; by knowledge the rooms are filled with all precious and pleasant riches.

If we were to apply the philosophy of buying lottery tickets the passage would read:

By the lottery my house has been built, and through great luck it has been established. By random chance the rooms are filled with all precious and pleasant riches.

The odds of winning a lottery like the $350 million Powerball are around 1 in 292 million! But, millions of people, in the desire to get rich quickly, generate roughly $80 billion of revenue in the U.S. each year.

The lottery tickets your husband buys does not significantly reduce his risk. In fact, one example compared the probability of winning represented by one lottery ticket to picking the correct 12 inches of a line stretched the 240,000-mile distance between the earth and the moon!

For most people, the return on investing in lottery tickets is nothing more than the paper on which it’s printed.

Christians should never take the money God entrusts to them and waste it on gambling. God is more than able to meet our needs. When we put more trust in chance than in Him, we need to reevaluate our priorities.

Faith that is put in luck and random chance ignores God’s Word. But relying upon His wisdom, understanding, and knowledge, while seeking Godly counsel, improves our opportunity for financial success.

Remember, a Christian cannot believe in both luck and God’s providence.

God’s Way

Freedom and joy are found in living according to God’s financial principles. His way replaces the frantic seeking of fast money with the desire to work as unto the Lord. It’s nothing flashy – but it works!

•      Spend less than you make…. always.
•      Give to the Lord to honor and acknowledge His gifts to you.
•      Set aside money for emergencies and emergencies only.
•      Once funding an emergency account, save regularly in another account.
•      Diversify investments into opportunities that you fully understand.

You can begin by building a budget to track expenses and insure that you can meet your obligations and save for your future.

Hopefully setting aside the time to go on these money dates will help you experience the unity you need to meet your financial goals and to strengthen your marriage. Contact us at Crown for more help.

Originally published on the Christian Post, June 14, 2019

Dear Chuck,

My friends rave about their Amazon Prime membership. I’m not convinced. Do you have an opinion?

Not Ready for Prime  

Dear Not Ready,

Thanks for your question. It is one I had not carefully analyzed, so this may be helpful for members and non-members alike.

My wife, Ann, and I have been Amazon Prime members for years. From a financial standpoint, it’s been worth it for us. The fast, free shipping has been helpful when sending items to college students and gifts to family and friends. We watch occasional movies via Amazon and take advantage of discounts at Whole Foods. But it does merit a closer analysis since some users may not get their money’s worth.

The membership costs $119 per year or $59 for students. It grants access to movies, TV, music, photo storage, special discounts, and free two-day shipping on many items to 100 million subscribers. Plus, the benefits, with limitations, can be extended to in-home family members.

However, you don’t have to be a member to get free shipping. A $25 order of eligible items grants standard shipping. Wal-Mart and Target offer that as well.

A Prime membership is worth it if:

• You order products from Amazon frequently (free two-day shipping)
• You want a cheaper alternative to Netflix or Spotify
• You need a place to store unlimited photos (Prime Photos)
• You want discounts to Whole Foods
• You will use Prime Reading for select books and magazines
• You want Lightning Deals and early access to the summer sale called Amazon Prime Day
• You want to Subscribe and Save
• You’re not concerned about the size and influence of the company

It’s not worth it if:

• You don’t order from Amazon frequently
• Your orders are typically over $25
• You don’t want streaming video or music
• You prefer to support local businesses
• You can’t control your spending
• You’re concerned about privacy
• You’re concerned about Amazon warehouse conditions

It is estimated that more than half of American households will be Prime members in 2019. For many, it saves valuable time with quick price comparisons, product reviews and fewer trips to the store. It is nice for busy people to be able to have items delivered to their home with just the click of a button.

Some Downsides to the Ease of Amazon Shopping

Impulse buying is a serious problem for many. A friend recently shared with me that his wife seems addicted to the ease of clicking and buying items from Amazon that are not essentials. He thinks it is becoming a form of escapism for her. He says the more they buy, the more empty the purchases become.

My wife, along with other Prime shoppers, has learned to put items in the online cart but not purchase them immediately. This gives time to think and pray about a purchase over a period of days or weeks. The desire or need for the item often disappears or is satisfied another way, and can be removed from her cart. It requires self-control.

Unfortunately, shopping is a distraction that cripples many men and women alike. We are called to steward our time, talents and money. These can be squandered if we do not discipline ourselves and keep an eternal perspective.

A Perspective from the Landfill

Just last week, I was privileged to have a tour inside one of the largest landfills in Asia. Located in Jakarta, Indonesia, an estimated 7,000 people call these mountains of garbage their home. They live inside the landfill and glean the valuables from what others have thrown away.  I learned that 6,000 – 8,000 tons of garbage are added to this massive dump site every single day.

I met people who are very similar to you and me in that they love their families, work hard to provide and want a better life for their children. In spite of the horrendous odor and the horrible squalor of rotting, blowing debris everywhere, they find joy and contentment in what they have. Looking at the massive piles of refuse piled five stories high and growing, I was convicted by how much I needlessly purchase things and stuff that will end up there. I was drawn to reflect upon what the Lord taught us about becoming less materialistic.

1. Jesus did not tell us to accumulate possessions for ourselves.

Sell your possessions and give to the poor. Provide purses for yourselves that will not wear out, a treasure in heaven that will never fail, where no thief comes near and no moth destroys. For where your treasure is, there your heart will be also. (Luke 12:33-34)

2. Jesus did not tell us to entertain ourselves more.

Be very careful, then, how you live—not as unwise but as wise, making the most of every opportunity, because the days are evil. Therefore do not be foolish, but understand what the Lord’s will is. (Ephesians 5:15-17)  

3. Jesus did tell us to remember the poor.

All they asked was that we should continue to remember the poor, the very thing I had been eager to do all along. (Galatians 2:10)

Also see James 2:14-17, 1 Timothy 5:8; 1 John 3:17-18, Proverbs 19:17, and Acts 20:3

4. Jesus did warn us that “life does not consist in the abundance of possessions.”

Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.” (Luke 12:15)

To Prime or Not to Prime?

The ethical side of Prime membership, privacy concerns and your view of the company are all personal decisions. However, financial decisions can be made as to whether you will get a return on investment based upon your actual usage and whether or not the membership will cause you to increase needless spending. If you can be content without Prime, as millions of Americans are, then enjoy shopping local and helping the small businesses in your community.

Originally published on the Christian Post, June 7, 2019

Dear Chuck,

I like nice, quality things. My husband prefers lower prices. My perspective is that buying quality is better in the long run. Is there a right or wrong way to look at it?  We are stuck on which refrigerator to buy to replace the old one we have now.

Needing A Compromise

Dear Compromise,

Let’s reframe the choices you have from just two to three. You could get a quality refrigerator, you could get a low priced refrigerator, or you could get the best value refrigerator. The final choice is the best one but getting to the compromise will be the challenge.  

My wife and I both like nice things…at a good price. But it can take months to find a deal! My wife, Ann, will research an item to death, whereas I’m ready to buy when I know an item is right for us. The key is learning to work together by honoring each other’s personality and opinions.

Both of you can be equally right, and wise decisions can be made through prayer and honest, respectful communication.

There is a time to spend more for quality and longevity. There’s also a time where the extra expense doesn’t matter. However, some people do not understand the difference. Rather than using common sense and trusting the Lord, some people are caught up in the need for luxury.

In The Psychology Behind Why People Buy Luxury Goods, Vanessa Page writes:

People buy luxury goods for a variety of reasons, all of which are related to the strong emotions that we attach to expensive material goods. Whether we are financially comfortable or not, we will often purchase luxury items to show off to or gain acceptance from others and to reward ourselves for an accomplishment.

A good steward has his/her identity in Christ and does not ‘need’ luxury. Quality is different. Here are a few basic things to remember when shopping for the best value: a quality product at a great price.

Consider the length of ownership to determine what should be quality and what is non-essential.

A refrigerator lasts a long time so quality is important. You need to know for certain that it will protect the food you buy for your family. A cat bed, however, is disposable and does not need to be the best on the market.

When to Spend More for Quality

• Energy efficiency
• Longer life of the product
• Dependability
• Maintenance free

When to Be Frugal

• Disposable items
• No difference in quality
• Functionality is equal
• Less expensive won’t affect safety or health

Tips on Getting the Best Value

Know what you need to best serve your family. It’s easy to get overwhelmed and talked into spending more money than is necessary because there are so many bells and whistles on appliances today that have little meaningful purpose.

If you shop Craigslist and Facebook Marketplace, remember, not all sellers can be trusted. In addition to having no warranty or guarantee that the product will work, you may have to move it yourself. And, when replacing appliances, that means moving out the old ones as well.

Check out sales over holiday weekends and check for online sales. Avoid new models and take advantage of the old stock that retailers want to clear out. The end of the month is a great time to negotiate a purchase because employees working on commission are eager to make more sales. Always ask to see any ‘scratch and dent’ items. They are often significantly discounted for appearances only.

Ask if there are delivery and installation charges and any fees with hauling away the old appliance. I ignore extended warranties and always research reviews and consumer reports

Steward Time, Money and Relationships

The time you put into researching the purchase of a higher costing item can be saved over the life of a product. Do your work upfront. Time is money. Read reviews. Talk to salesmen, people you know, anyone willing and trustworthy to educate you on the purchase.

Pray for discernment and for leading to the right item. Needs and wants should be vetted. God often grants us the desires of our heart when he knows our desire is to use His money wisely.

Let your husband know that you are willing to work to find the best value refrigerator and ask for his support.

Seek harmony and peace in your marriage. Respect your spouse’s opinion. Be quick to listen and slow to speak. In humility, present your case with proven research while honoring your husband. If he believes his way is best, then submit in love. Sometimes we have to sacrifice our desires for the good of the marriage. Your relationship is more important than an appliance.

And above all these put on love, which binds everything together in perfect harmony. And let the peace of Christ rule in your hearts, to which indeed you were called in one body. And be thankful. (Colossians 3:14-15 ESV)

If past spending has left you stressed and strained with overwhelming credit card debt, get in touch with our partners at Christian Credit Counselors. They have a wonderful team of compassionate experts who can help you. Start your free debt analysis today!

Originally published on the Christian Post, May 31, 2019

Dear Chuck,

I’m 64 and like my job as a plant supervisor. I plan to continue working until I am 70. Is it better to begin drawing full Social Security at age 66 or wait until 70 and get the higher amount? I am getting conflicting advice.

Not So Secure

Dear Not So,

You ask a loaded question because none of us know how long we’ll live! So, setting aside the unknown factor of our actual lifespan vs. our expected life span, I will provide some input to your question.

Although Social Security administrators have incentivized us to wait until 70 by providing us a larger monthly income, it is not necessarily the best choice as I will attempt to show. No doubt, it is a complicated equation with a number of variables including your health, financial condition, lifestyle and retirement plans. I will cover the basics here.

The Social Security Act was passed by Congress as part of the New Deal in 1935. It was our government’s attempt to help the elderly, unemployed, widows, orphans, and impoverished impacted by the Great Depression. Today, Americans associate it with retirement income. In fact, a survey from TransAmerica reveals that most seniors expect Social Security to be their primary income.

Retirement is a major concern among many because they are not saving or have not saved enough. In a recent report, Google revealed the 10 most asked questions about retirement:

1.     How much do I need to retire?
2.     How to retire early
3.     When can I retire?
4.     What is the retirement age?
5.     How much to save for retirement?
6.     How to save for retirement
7.     How to retire at 50
8.     How to retire
9.     What is the full retirement age for Social Security?
10.     Where to retire

Social Security benefits are based on the top 35 years of earning history and determined by the age one begins collecting. It is possible to begin claiming benefits at 62, but to get 100% of the benefits, one must wait until full retirement age (FRA). For those born between 1943-1954 that age is 66; those born between 1955-1959 – age 66 plus several months; and for those born after 1960 – age 67.

The average retiree draws $1,461 a month or $17,532 in a year, enough to replace about 40% of the average American’s pre-retirement income. This makes saving, investing, and other sources of income imperative to reduce personal and family stress when work is no longer possible.

My father, like many he knows, could not imagine living into his 80s, but he has. Others, younger than him, fear running out of resources as they will likely live longer than ever expected.

Factors That Impact When to Claim Benefits

• Are you married?
• How’s your health?
• How much do you have saved?
• Do you have debt?
• Do you plan to continue working?
• Do you have other income?
• Will you be changing your lifestyle?

It’s important to answer the questions. As shown below, someone at the full retirement age of 67 will collect more in benefits if they begin drawing at 62 instead of 70 until they reach their late 70s. If one begins at 67 they earn more than starting at 70 until the breakeven point of age 81.  

As you can tell, breakeven occurs at a similar age range regardless of the choice you make, but the overall income received will largely depend on how long you live.

Data source: https://www.fool.com/retirement/2018/06/23/is-62-the-best-age-to-start-drawing-social-securit.aspx

Extra Stats

According to InvestorJunkie.com:

• If you start receiving retirement benefits at age 62, you will get 70 percent of the monthly benefit because you will be getting benefits for an additional 60 months.
• If you start receiving retirement benefits at age 65, you will get 86.7 percent of the monthly benefit because you will be getting benefits for an additional 24 months.

A couple of websites for planning purposes include: Social Security Administration Information and Estimator and Bankrate’s Social Security Benefit Calculator

Benefits While Working

According to ssa.gov, you can work while receiving Social Security benefits, but there are limits.

• If you are younger than full retirement and make more than the 2019 limit of $17,640, benefits may be reduced. One dollar is deducted in benefits for every $2 earned above the limit.
• The year you reach full retirement age, $1 is deducted for every $3 earned above the limit of $46,920. They only count earnings before the month you reach full retirement age.

However, ssa.gov states: If your earnings will be over the limit for the year but you will be retired for part of the year, we have a special rule that applies to earning for one year. The special rule lets us pay a full Social Security check for any whole month we consider you retired, regardless of your yearly earnings.

• The month you reach full retirement age, earnings no longer reduce benefits, no matter how much you earn.
• Different rules apply for those working outside of the U.S.

It’s been suggested, that if married, and both spouses work, the higher earner should delay withdrawing until full benefits kick in so the survivor can receive the highest benefit for the rest of his/her life.

A friend of mine ran the numbers. He says collecting the full benefits at 66 or 67, though less, outweighs the benefit of waiting until the age of 70 for the larger monthly payment. He claims that the government benefits when people wait until 70 to begin withdrawing.

I used to think I would wait until 70 to draw Social Security benefits. But, I could begin drawing once I reach full retirement age, invest it and continue working!

Remember that we have no guarantee how long we will live.

Come now, you who say, “Today or tomorrow we will go into such and such a town and spend a year there and trade and make a profit”— yet you do not know what tomorrow will bring. What is your life? For you are a mist that appears for a little time and then vanishes. (James 4: 13-14 ESV)  

My Advice  

Obviously, there are also great concerns regarding the solvency of the SS Administration and their ability to fund the enormous obligations of the program. I have not addressed those concerns but don’t think for most that should be a significant factor in when you decided to take your benefits.

I think it is a good plan to wait until you reach full retirement age to begin drawing your social security benefits and continue to work. This will enable you to invest up to 2 or 3 years of this income and accelerate the growth of your funds before you have only the social security as your primary income.

Originally published on the Christian Post, May 24, 2019

Dear Chuck,

I am engaged to be married late this summer. My father recently asked if we are planning to have joint accounts like he and mom have for decades. I didn’t have an answer. We have friends with joint accounts and some with separate ones. We want to start off right. What do you recommend?

Separate or Unified?

Dear Unified,

Congratulations on your engagement and upcoming wedding! I’m glad you’re thinking about and asking this question now so you can get started off on the right foot in your marriage.

Larry Burkett, the founder of Crown, believed that separate banking accounts “makes about as much sense as maintaining separate houses.” Why? Marriage is about becoming one. One in everything – name, address, bed, money…the list does not end.

When finances are kept separate, a “his-money-her-money” philosophy develops which can lead to a “him-versus-her” mentality. This should not be present in marriage. It’s God’s money that you manage together.

There are different reasons why people defend having separate accounts. A few popular reasons I hear today are for protection in the event of dishonesty, for debt problems, or for previous divorce issues. Another is that one spouse is typically a sloppy manager of their account (overdrafts and penalties) and the other does not want to put up with it.

The foundation of every marriage is trust. Before you make your vows, be sure there is absolute trust in each other and an ability to discuss any areas of concern. Money is a key area for discussion.

If there is a hint of financial problems or distrust prior to marriage, delay the wedding, and resolve the issues. When transparency and trust is impossible, I suggest breaking the engagement. Marriage requires open hearts, accountable to God and one another.

Certainly, there is no Bible verse that commands couples to have joint checking accounts or that the bills must be paid by the wife or husband. But lying is prohibited; there is no place for secret accounts in healthy marriages, because when separate accounts are discovered, betrayal and lack of trust result.

Ted Rossman, industry analyst for CreditCards.com believes financial infidelity is on the rise. According to a recent survey, millennials are nearly twice as likely to hide money or accounts from partners than other age groups. Technology provides the ability to conceal.

Why Have Joint Accounts

• Simplifies bill paying
• Eases estate planning because the surviving spouse has access
• Saves money on commissions for joint brokerage accounts
• Trust is established; the books are open for both to see

What’s Required

• Humility: desire to love, serve, and yield rights to your spouse
• Accountability: expected and desired
• Cooperation: honesty, respect, and open communication for common good
• Patience and forgiveness: mistakes will be made

The Process

After you’re married, and not before, combine your finances. You can open a new checking account and savings account. Or, simply add your name to all of your spouse’s existing accounts (or vice versa).

Then, redirect direct deposits and automatic debits to the new accounts. Stop using your old accounts. However, do not close them until all payments have cleared and automated debits and deposits are working at the new accounts. Once activity has ceased and checks cleared, close all previous accounts and transfer the funds to your joint accounts.

Offense and Defense

After you establish your accounts, it is important to work together as a team towards your financial goals. In our home, my wife is better at managing the budget, paying the bills and keeping track of the details than I am. I call that our “financial defense.” Ann is in charge of the defense. I am in charge of the “financial offense” which is earning our income and overseeing our investments. We collaborate on any decisions involving our offense or defense but have different areas of responsibility. This has worked well for us.

Two Becoming One

Money is a means by which God reveals our strengths and weaknesses. It leads us to depend on Him and grants us the opportunity to bear fruit of the Spirit when working together. In short, it can make us more Christ-like. As each is conformed more and more into His image, they will become more unified in all areas of their life, including the stewardship of their resources.

Paul’s letter to the Ephesians gives specific instructions for a blessed marriage relationship (5:22-33). Verse 33 is a helpful reminder when dealing with money and marriage, especially when disagreements arise:

However, let each one of you love his wife as himself, and let the wife see that she respects her husband. (Ephesians 5:33 ESV)

I recommend the following to strengthen your money and marriage relationship:

• Money Problems, Marriage Solutions
• MoneyLife Personal Finance Study
• Free Personal Finance Resources
• Free Money & Marriage Articles

The key to protect your marriage is to build your marriage on the Word of God, honor one another, and seek to glorify God with all He entrusts to you.

Originally published on the Christian Post, May 17, 2019

Dear Chuck,

My wife and I are committed to financially helping our children get college degrees. We’ve graduated two and have three to go. We are not sure a four-year college will work for one of our children and are considering directing him towards a trade. What are your thoughts?

Skilled Labor

Dear Skilled,

Congratulations on getting the first two their degrees! I hope you both were able to avoid student loan debt.

Your question is so important with the rising cost of college tuition and the inability for many to find appropriate jobs to manage their excessive student loan debt.

Some kids are just not designed to learn by sitting at desks. Many brilliant young people tend to get easily bored, in need of hands-on activity. We need them!

Yet many parents have a wrong attitude toward trade schools, thinking jobs in labor are less respectable than what a college degree offers. I strongly disagree.

We are experiencing a skilled labor shortage in the U.S. Specialized jobs can pay more than some college degrees and the training can be obtained without heavy debt loads. Some trade certificate programs are expensive, other plans are covered by employers, and some states offer tuition-free programs. Regardless of which program you go with, a trade or two-year degree may be a better investment if your child is gifted in that direction.

Trade school is a hands-on, technical education focused on teaching a skill. General education courses are not taught which reduces classroom time. Smaller classes and faster routes to degrees with highly marketable training at much lower costs propel a person to earning money faster.

With proper stewardship knowledge, these students can be thousands of dollars down the road from their college-bound peers when comparing earnings vs debt in the first ten years of their career.

Financial Cost of Education

CareerSchoolNow.org reports: Trade school runs, on average, around $33,000 from start to finish with many students only carrying a loan of around $10,000.

Compare that to a Forbes report which revealed that in 2016, 70% of those completing an undergraduate degree were carrying $37,000 of debt. And many of those degrees don’t guarantee high-paying jobs. More than half of students take longer than four years to graduate, costing in lost wages and educational costs. Another fact is that 40% of the student body will drop out of a four-year college and still have to pay back loans.

Jerry Bowyer recently commented at the Townhall Review: Elite education in recent decades has seen double-digit price increases and at the same time moved from its mission of broadening minds towards narrowing them. So: Higher price and lower quality. Seems like a bad deal…

Niel Dawson, of Independent Electrical Contractors in Georgia says: We probably need to do a better job hammering in how much debt you are going to have going to college. From day one you’re earning money in an apprenticeship program.

Benefits of Trade School

• Lower cost – average of $33,000 vs. $127,000
• Takes 2 years or less
• Smaller classes
• Much lower dropout rates
• Job experience with hands-on training
• Multiple start dates for different programs
• Competitive introductory salaries
• High job-placement rates

According to statistics, a person with a bachelor’s degree is projected to earn around $1.1 million, compared to the $393,000 earnings of an associate’s degree or trade school program graduate. But the cost of loans, delayed income, delayed savings and delayed investing are not included. Plus, an entrepreneurial tradesman can own his own business and earn significantly more.

Here is a table with over 25 highest paying trade school careers with links to each career.

What the Bible Says

For we are God’s handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do. (Ephesians 2:10 NIV)

Do you see someone skilled in their work? They will serve before kings; they will not serve before officials of low rank. (Proverbs 22:29 NIV)

Whatever you do, work at it with all your heart, as working for the Lord, not for human masters, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving. (Colossians 3:23-24 NIV)

When Paul left Athens and went to Corinth, he went to see Priscilla and Aquila. …and because he was of the same trade he stayed with them and worked, for they were tentmakers by trade. (Acts 18:3 NIV)

Help Making the Choice

I’ve hired plenty of skilled laborers to do repairs and make improvements at my home. I continue to request those who faithfully do their job well, are trustworthy, timely and honest. These are generally people who love what they do and take pride in their work.

One of the best tools I’ve seen in directing students is Career Direct. It is an assessment that identifies possible careers based on interests and personality. It affirms a person’s design and encourages the pursuit of dreams that will glorify the Lord. This tool will help you know for sure whether your student should get a college degree or pursue trade school.

Another way to know how to advise them is to observe what your child does in their free time.  Are they a reader or a doer? Are they anxious to primarily work with their hands or work with their mind? What do they do most often that brings them joy?  

Finally, talk to your child and get their input on the choices. Pray about it together and come to peace before making the final decision.

Originally posted on the Christian Post, May 3, 2019

Dear Chuck,

We just spent the weekend with college friends who revealed they are part of the FIRE Movement and plan to retire in 12 years. My husband and I were shocked – we’re still paying off college loans from med school. There are days retirement sounds wonderful but how realistic, and more importantly, how Biblical is that goal?

Firehosed

Dear Firehosed,

Thanks for your question. I am aware of the movement. I have some comments about it and advice for you as well.

The FIRE (Financial Independence Retire Early) Movement is fueled by Americans who desire to leave the traditional workplace in their 30s and 40s by investing enough assets in the early decades of their careers in order to build a nest egg to live off the rest of their lives.

FIRE enthusiasts desire the independence that comes with financial freedom. It doesn’t mean you have to retire early but is an option if desired.

Jonathan Mendonsa defines financial independence like this:

When your net worth is 25x your annual expenses, you’re considered financially independent. So, if your annual expenses are $40,000, you are financially independent when your total net worth is $1,000,000.

More on this later.

FIRE or Faith?

I don’t think working to achieve financial independence is wrong; but the problem may lie with the motivation. In some cases, the motivation I sense is that the dependency is placed on money (as opposed to Christ) and the drive for independence is to live however most pleases yourself (as opposed to Christ).

I am reminded of Proverbs 21:20: A person may think their own ways are right, but the LORD weighs the heart. Motives matter to God. He bought and paid for our redemption so that we would live a life of faith surrendered to His purposes, not our own. Certainly, being free of debt and financial obligations can move us towards that goal, but if the motive is actually to eliminate faith then it is not a movement that could be justified by Scripture.

Remember too that the Lord did not put you here on Earth to retire early and pursue a life of leisure. He designed us to work. Earned achievement and generosity are our two greatest sources for happiness. When we work as unto the Lord, we are serving God. When we give cheerfully, we are serving God. The FIRE movement likely is not driven by these Biblical principles.

When to Retire?  

Most people live by a different FIRE Mindset: “Financial Insecurity/Retire Eventually”.

Thankfully, God provides principles for balance. Just as not all borrowing is wrong, not all retirement is wrong. It is simply a matter of degree. In some professions, such as athletics, age is a critical factor, and retirement is inevitable. Other professions cause burn-out because of the high levels of stress.

In an article titled The Pros and (Mostly) Cons of Early Retirement, Greg Daugherty states:

Deciding when to retire is a complex decision that isn’t just a question of dollars and cents. Your health, family obligations and individual temperament all figure into it, or at least they should. Perhaps most important is whether you’ve thought through what you plan to do with your retirement years, however many of them lie ahead. As the wise old retirement cliché put it, it’s important not just to retire from something but to something.

This is a list of common motivations for people who want to leave the workplace. I offer some alternative views to each.

• Desire for happiness – need to discover true purpose and identity in Christ
• Leave stressful jobs – true peace comes from God and working within one’s design
• Prefer experiences to possessions – be careful that neither become idols
• Shaping life with financial freedom – possible with Biblical financial principles and proper motivation
• Want to start a business – admirable but not free of problems
• Want more family time – prioritize the use of time now and set boundaries around work
• Want to travel – doable with a greater purpose than sightseeing

Repurpose Don’t Retire

See work as a mission field and the opportunity to bring God glory through excellence in what you do, for as long as you find joy and purpose in the endeavor.

Retirement for Christians should mean freeing time to devote to serving others more fully without the necessity of getting paid for it. Whether serving on boards or volunteering for schools and organizations, our time and wisdom can be used to benefit others.

The only time retirement is mentioned in the Bible is in Numbers 8:25 referring to the retirement of the Levites from the tent of meeting. They were not allowed to own land or accumulate riches, but to receive their living from the tithes and offerings of God’s people and retire at the age of 50.

We’re a society of extremes. Some borrow, spend and work excessively in their early years, then want to quit altogether. Others plan extremely well but hoard funds that could be used to change lives for eternity. And, for some, retirement is an impossible dream due to lack of planning, debt, or low income.

Every Christian must realistically answer some planning questions:

1. Why should I retire?

Seek the Lord and others you respect. Repurpose.

For by me your days will be multiplied, and years will be added to your life. (Proverbs 9:11)

2. What will I do?

Make plans to impact the lives of others and set goals to finish well.

Gray hair is a crown of glory; it is gained in a righteous life. (Proverbs 16:31)

3. What if my retirement plans fail?

There is no guarantee that your plans will suffice. Depend on the Lord, not your accounts, diversify and live modestly.

The prudent sees danger and hides himself, but the simple go on and suffer for it. (Proverbs 27:12)

4. What if I can’t retire?

Stay marketable by learning new skills and staying involved in your career field. Do not isolate yourself. Seek to pay off debt by spending less than you earn and buying only what you need. Be thankful for your job and what God provides.

I have been young and now I am old, yet I have not seen the righteous forsaken or his descendants begging bread. (Psalm 37:25)

My friend Jeff Haanen has written a book entitled, An Uncommon Guide to Retirement that I highly recommend. It will assist you in working through the issues while maintaining a Christ-centered focus.

Originally published on the Christian Post, April 26, 2019