Charlie Marlow - Financial Coach

Wacky Wednesday #66
April 24, 2024

Money Monday # 66
April 22, 2024

I'm a firm believer in Dave Ramsey's Baby Steps. They are a great framework to organize your financial priorities.

Step 1: Build a starter emergency fund of $1,000.
Step 2: Pay off consumer debt as quickly as possible.
Step 3: Increase your emergency fund to 3 to 6 months of your expenses.
Step 4: Save 15% of your income for retirement.
Step 5: Save for your children's college.
Step 6: Pay off your mortgage early.
Step 7: Grow wealth and be a generous giver.

Scripture Sunday #66
April 21, 2024

Financial Friday #65
April 19, 2024

You can claim Social Security retirement benefits as early as age 62 or postpone collecting until age 70. Your entitlement is based on your highest 35 years of income calculated at your full retirement age (FRA) and adjusted up or down depending on when you elect to receive benefits.

The full retirement age for anyone born between 1943 – 1954 is age 66 and 67 for those born in 1960 or after. Those born between 1955 and 1959 are staggered between 66 years and two months and 66 years and ten months, two months being added for each year.

Learn more at www.ssa.gov

How does your benefit change based on when you start claiming? Suppose you start your benefits before your FRA your payment is reduced between 5% to 6% per year for each year taken early but increases 8% annually when you delay after your FRA until age 70. In that case, it will not increase any further except for the annual cost of living adjustments (COLA).

Here’s an example of the difference someone who has an FRA benefit of $2,500 at age 67 can expect.

Age Percentage Benefit Amount
62 70% $1,750.00
63 75% $1,875.00
64 80% $2,000.00
65 86.7% $2,167.50
66 93.3% $2,332.50
67 100% $2,500.00
68 108% $2,700.00
69 116% $2,900.00
70 124% $3,300.00

While waiting can result in benefit payments that are over 88% higher, waiting isn’t always the right choice. There is no one-size-fits-answer as to when you should start claiming. Some factors to consider include:
Earnings Test - If you plan to continue working after starting Social Security, be aware of the earnings test. Before reaching your full retirement age, there’s a limit to how much you can earn while receiving benefits. If you exceed this limit, your benefit is reduced. However, once you reach your full retirement age, you can work and earn without any restrictions. For 2024 the limit is $22,320 for the calendar years before the calendar year you reach FRA. In the calendar year you reach FRA, the limit is $59,520.

Health and Life Expectancy: Consider your health and projected lifespan. If you expect to live longer, delaying benefits may be advantageous. On the other hand, if you have health concerns or need the income sooner, claiming earlier might be a better choice.

Spousal & Survivor Benefits: A spouse or ex-spouse may receive an additional benefit if their SS benefit is less than half of that of the higher-paid spouse. A surviving spouse or ex-spouse may be entitled to the full benefit of the deceased spouse if it is higher than their benefit. A higher-paid spouse may wish to delay their benefit to let it grow to leave a higher survivor benefit to the surviving spouse.

Tax Impact: Your Social Security benefit may be subject to income taxes if you continue working or have other sources of income. The taxes owed are based on a percentage of your total benefits. If your provisional income falls within certain thresholds, you may need to pay taxes on a portion of your benefit.

Other Income Sources: Evaluate whether you have other income streams to support you if you delay taking Social Security. If you have sufficient savings or pension income, waiting could lead to higher benefits later.

Carefully planning your retirement benefits can make a big impact on the quality of your retirement years.

Wacky Wednesday #65
April 17, 2024

Money Monday #65
4/15/2024

Sunday Scripture #65
April 14, 2024

Financial Friday #64
April 12, 2024
Did you know your Social Security benefit may be taxable after a lifetime of paying into it with after-tax dollars? That’s right, the Internal Revenue Service (IRS) requires that if your income, including half of your Social Security benefits, exceeds certain thresholds, then a portion of your benefits may be taxable. Here’s how it works:
• If you file as an individual and your combined income is between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
• If your combined income is more than $34,000, up to 85% of your benefits may be taxable.
• For those filing jointly, if your combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxable. If it’s more than $44,000, up to 85% of your benefits may be taxable.
Combined income is calculated as the sum of your adjusted gross income, nontaxable interest, and half of your Social Security benefits. Use the Dinkytown Social Security Taxable Benefits calculator at https://www.dinkytown.net/java/social-security-taxable-benefits.html to see how much of your benefit will be taxable.

The final installment of my 12 part Military Pay and Entitlements series as now available at https://mymilitarylifestyle.com/index.php/2024/04/11/military-pay-and-entitlements-special-situations/ Learn more about adoption expense reimbursement, Family Subsistence and Basic Needs Allowance, DoD Savings Deposit Program, and Death Gratuity.

Military Pay and Entitlements – Special Situations My Lifestyle

Wacky Wednesday #64
April 10, 2024

Installment 11 of my 12 part Military Pay & Entitlements series is now available at

Military Pay and Entitlements – PCS and Travel My Lifestyle

Money Monday #64
April 8, 2024

Are you looking for a savings tool or investment that will outpace inflation regardless of what the stock market and economy do? Are you looking to avoid the ups and downs of the market? Is the safety of your principal important to you? If you answered yes to any of these questions, Series I savings bonds may be right for you.

Series I bonds are U. S. government savings bonds that pay a guaranteed interest rate equal to the rate of inflation and are updated every six months. I bonds currently pay the inflation-adjusted rate of 3.97% interest PLUS a fixed rate of 1.30% for a total of 5.27%. Here’s the good news, that 1.30% fixed rate will continue to be added to the inflation rate for as long as you own your bonds for up to 30 years, guaranteeing your savings will stay ahead of inflation. You must purchase your bonds before the end of April 2024 as the fixed rate on new bonds may change May 1, 2024.

Bond facts:

Your bond’s interest rate will adjust every six months after purchase and will earn the prevailing rate plus the fixed rate in effect when you buy your bond.

Federal taxes on savings bond interest may be deferred until redemption and are not subject to state or local income taxes.

I bonds may be electronically purchased for any amount between $25.00 and $10,000. There is a $10,000 annual limit per taxpayer plus up to $5,000 may be purchased with your federal tax refund.

Interest can be tax-free if used for qualified educational expenses.

I bonds may not be redeemed during the first 12 months, and there is a three-month interest penalty if redeemed during the first five years.

Learn more and purchase bonds at www.treasurydirect.gov.

Scripture Sunday #64
April 7, 2024

For a dear friend and pastor who is retiring from his pastorate today.

Installment 10 of my military pay and entitlements series continues with OCONUS entitlements.

Military Pay and Entitlements – OCONUS Allowances My Lifestyle

Financial Friday #63
April 5, 2024

Today is National Read a Road Map Day and a good day to look over your financial road map!
A personal financial plan is like to a roadmap for your financial journey. Let’s explore this analogy:

1. Destination and Goals:
- Just as a roadmap helps you reach a specific destination; a financial plan guides you toward your desired financial goals.
- In your financial plan, you define objectives such as retirement, homeownership, education funding, debt management, and investment security.
- These goals act as your destinations on the financial roadmap.

2. Starting Point:
- Before creating a roadmap, you need to know where you’re starting from.
- Similarly, assessing your current financial situation—your income, expenses, assets, and liabilities—is crucial for developing a realistic financial plan.
- Think of it as identifying your current location on the map.

3. Route and Directions:
- A roadmap provides directions, showing you the best route to reach your destination.
- Your financial plan outlines the steps you’ll take to achieve your goals.
- It includes budgeting, saving strategies, investment decisions, and debt repayment plans.
- Just like following directions on a map, you follow your financial plan to stay on track.

4. Adjustments and Detours:
Roadmaps account for unexpected detours or changes due to road closures or construction.
- Similarly, financial plans allow for adjustments.
- Life events (like job changes, emergencies, or market fluctuations) may require altering your plan.
- Flexibility ensures you can navigate unforeseen twists and turns.

5. Consistency and Progress:
- A roadmap helps you stay consistent—following the same path until you reach your destination.
- Consistent actions, like saving regularly or paying off debts, lead to progress.
- Your financial plan encourages disciplined habits, ensuring steady progress toward your goals.

Remember, just as a roadmap adapts to changing conditions, your financial plan should evolve as your circumstances change. Regular reviews and adjustments keep you on course toward financial well-being.

Wacky Wednesday #63
April 3, 2024

Part 9 of my military pay and entitlments series continues. Learn more about Special Duty Pays at

Military Pay and Entitlements – Special Duty Pay My Lifestyle

Money Monday #63
April 1, 2024

April Fools’ Day!

A fool & his money are soon parted, or as King Solomon put it,
“The wise man saves for the future, but the foolish man spends whatever he gets.”

Are you being wise with your money? Here are some tips to help you wise up.

PAY YOURSELF FIRST – You need a rainy-day fund, an emergency fund to help cover unexpected expenses or loss of income. Cars break down, people & pets get sick, water heaters die, fillings fail, and glasses break. Emergencies become inconveniences with an emergency fund! Cash savings prevents having to borrow to cover the expense. Three to six months of expenses is a good emergency fund goal.

PLAN YOUR SPENDING – A written or electronic spending plan ensures you know where your money is going instead of wondering where it went! A simple budget consists of listing all of your income for the month & then listing each of your expenses to pay. Food, rent/mortgage, utilities, & transportation are your top priorities. Then, list other expenses by priority including debt payments, entertainment, & savings for retirement & future purchases.

GET OUT OF DEBT – King Solomon also warned that the borrower is a slave to the lender. Make a debt elimination plan to pay off your credit cards, car, personal, & student loans. What could you do if you have no debt payments? Anything you wish!

BE TAX WISE – Use tax-advantaged IRA/401k/TSP retirement accounts to save for retirement. Ask your HR department at work about pre-tax savings accounts for dependent care & medical expenses. Use a tax calculator to estimate your tax liability for the year & adjust your withholding to cover the tax due, preventing having to pay or getting a big refund.

KEEP SAVING – Once your emergency fund is established start stashing away for future purchases & anticipated expenses. Set a goal to save for things like vacations, car replacement, a home down payment, & college expenses for the kids. That’s being wise!

Need help establishing your wise money plan? I can help you make a budget, create a personal debt elimination plan, right-size your withholding, & help you find good tools to help you save. PM me & let’s get started now!

Scripture Sunday #63
March 31, 2024

Financial Friday #62
March 29, 2024

You may not realize it, but a single $100 bill packs a big financial punch, especially when allowed to age a little.

A single additional $100 principal payment at the beginning of a mortgage can save several times that in interest over the life of a mortgage. How much? A single $100 at the beginning of a $450,000, 6.25% 30-year mortgage will save $545.55. An extra $100 each month from the beginning will save you $60,689.77, paying the mortgage of 33 months earlier!

A single $100 bill invested at an average of 8% will grow to $1,006.26 in 30 years, but $100 invested every month for 30 years will yield $140,855.06!

The book of Zechariah encourages us, “Do not despise small beginnings.” Small steps, over time, will take you on a great journey.

Want to know more about military special pays and incentives such as Foreign Language Profieciency Bonus, Hardship Duty Pay, Familiy Separation Allowance, and other budget boosting incentives? See the 8th installment of my Military Pay and Entilements series at

Military Pay and Entitlements – Additional Special and Incentive Pays My Lifestyle

Wacky Wednesday #61
March 27, 2023

Money Monday #62
March 25, 2024

MAJOR SOCIAL SECURITY CHANGES ANNOUNCED

Last week, the Social Security Administration (SSA) announced sweeping changes in the methods used to recoup overpayments to Social Security. Previously, when a recipient had an overpayment, the administration used a method of collection that has come to be known as “clawback” and would collect back the entire monthly benefit until the amount of indebtedness to Social Security was erased. Many overpayments reached into the tens and even hundreds of thousands of dollars, were not the fault of the recipient, and were not discovered until decades after the overpayments were made.

Collection reforms effective today, include using a more reasonable collection amount of 10% of the current monthly benefit to be withheld to apply to the overpayment debt. Previously recipients would lose all of their benefits, creating additional hardship. Another major change is in the procedures that shift the burden of proof away from the claimant when determining if the claimant was at fault for causing the overpayment. Now, beneficiaries who wish to work out a payment plan may provide a verbal summary of income, resources, and expenses when requesting a repayment plan and extend the repayment option from 36 to 60 months. The administration will also make it easier for beneficiaries to request a waiver of the debts if they believe that they are without fault and/or cannot repay.

According to AARP, there is over $23 billion of outstanding debts due and according to SSA, $11.1 billion was overpaid during the past fiscal year, of which, $1.9 billion was a result of SSA omissions and oversight, not the fault of the recipients. Some of the overpayments are the result of confusing rules regarding earnings limits of Social Security recipients who have not reached their full retirement age as well as Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) beneficiaries who are subject to complex rules regarding both income and resources.

In Senate testimony last week, SSA administrator Martin O’Malley stated, “But despite our best efforts, we sometimes get it wrong and pay beneficiaries more than they are due, creating an overpayment. When that happens, Congress requires that we make every effort to recover those overpaid benefits. But doing so without regard to the larger purpose of the program can result in grave injustices to individuals, as we see from the stories of people losing their homes or being put in dire financial straits when they suddenly see their benefits cut off to recover a decades-old overpayment, or disability beneficiaries attempting to work and finding their efforts rewarded with large overpayments. Innocent people can be badly hurt. Implementing these policy changes — with proper education and training across the people, policies, and systems of the agency — is an important but complex shift. And we are undertaking that shift with urgency, diligence, and speed.”

Learn more about this important change at:

https://blog.ssa.gov/social-security-announces-four-key-updates-to-address-improper-payments/
https://www.aging.senate.gov/imo/media/doc/d4c54a0f-abf8-b72a-435b-1681aad51718/Testimony_O%27Malley%2003.20.24.pdf

https://www.aarp.org/retirement/social-security/info-2024/benefit-overpayment-changes.html #:~:text=Among%20other%20steps%2C%20O%E2%80%99Malley%20announced%20that%20starting%20March,but%20withhold%2010%20percent%20to%20put%20toward%20repayment.

Scripture Sunday #62
March 24, 2024

Financial Friday #61
March 22, 2024

Thinking about borrowing from your 401k or TSP?

While tempting, there are several disadvantages to borrowing from a 401k/TSP plan.

1. It does not really pay off the debt. It just transfers who you owe money to.

2. If you happen to lose or leave your job, the outstanding balance of the loan must be paid back in full by the due date of your federal income tax return, including extensions or it becomes a taxable event with a 10% penalty if you are not yet 59 1/2. Depending on your age and tax bracket, that could be the same as
paying from 22% to as much as 47% interest.

3. You will pay tax twice on the same money. You will be paying the loan back with after tax dollars plus, if your account is a traditional account, you will pay tax on the money again when you withdraw it or if it is a Roth account you paid tax on the money before it was initially deposited.

4. Many plans do not allow you to pay extra on a 401k loan. You can only pay the scheduled amount or pay it in full as a lump sum. You may not be able to treat it like a debt snowball throwing extra money at it as you get it. The TSP does allow additional extra payments.

5. You turn off your wealth building ability by unplugging the funds. Instead of getting the market return you'll be paying a lesser interest rate to yourself. This could leave you with less money in your retirement.

6. You could lose your employer match while you are repaying the loan. Employer policies vary, but the loss of a match and the long-term compounding could result in a much lower account balance upon retirement. This is an important factor to consider before taking such a loan. Military members and civilians will still receive the TSP match.

7. There may be fees involved, making the transaction more expensive. For example, The TSP plan has a $50 fee for a general purpose loan and a $100 fee for a primary residence loan.

8. If you use it to pay off your home mortgage you will lose the mortgage interest deduction.

Use the option to borrow from your retirement account judiciously as the direct and indirect costs could be extensive. There is only one way to pay off debt and that is to pay it off. Consolidation and 401k loans only mask the symptom, not solve the problem. You must change behavior, not just who you are paying it to.

Need help creating a debt elimination plan that won’t wreck your retirement account? Let’s talk.

Installment 6 of my pay and entitlements series, Clothing Allowances is available at

Military Pay and Entitlements – Clothing Allowances My Lifestyle

Wacky Wednesday #61
March 20, 2024

Installment 5 of my Military Pay and Entitlements series, How to Read Your LES is now available at

Military Pay and Entitlements – How to Read Your LES My Lifestyle

Money Monday #61
March 18, 2024