Happy New Year!

I want to wish you and your family a Happy New Year and look forward to serving you in 2014!

Highlights for Saturday December 28 Your Safe Money Show

We have so much to look forward to in 2014 and I talk about guests and workshops in January. We've been talking about inheritances and this week I get into heirlooms and keepsakes and I have tips on how to distribute items and keep from having hurt feelings.

Holiday Hours

Sjoberg & Holmstrom Financial Services will be closed December 24th through January 1st. You can still call 877-812-0259 we will be monitoring messages through e-mail and phone.
Everyone at Sjoberg & Holmstrom and Your Safe Money Show wishes you a Merry Christmas and a Happy New Year and we look forward to serving you in 2014!

Definition of the Day December 23

Participation Rate:
Also called the Index Rate, this refers to the part of the index's increase credited to an equity-indexed annuity's account value. In some contract's, a cap is imposed on this amount.

Highlights of Saturday December 21st Your Safe Money Show

Giving is a great thing all year long but charities count our our donations especially during the holiday season. This Saturday on Your Safe Money Show I have ways to give that you maybe never thought of.
Getting an inheritance can sometimes be overwhelming and I have some suggestions that might make handling that easier.

Definition of the Day December 19

Vesting:
The term used to describe an employee's gaining of the right to be paid a current or future benefit from a pension plan.

Charities and end of the year deductions

Tis' the season, charities really count on people's generosity especially this time of year.If you itemize deductions, a last minute check is tax deductible as long as you drop it in the mail by December 31st.
Donations charged to a credit card by the 31st are deductible this year too. Remember too that noncash donations are as valuable as cash. In this week's Your Safe Money Show I talk about donating, items you no longer use, clothing , kitchen gadgets, gently used furniture most non-profits will give you a receipt so you can claim it on your taxes. Listen this Saturday morning, stations and times are listed on the home page.

Definition of the Day December 18

Fiduciary:
An individual or organization that exercises control over a pension plan and/or the assets it holds.

Definition of the Day December 16

Prospectus:
A written document that must be provided under federal regulations to the prospective buyer of a variable annuity before the actual sale.The document describes the investment goals of accounts, past performance of any sub-accounts included, and defines fees and other expenses.

Show Highlights for Saturday December 14

There will be some modest changes  in 2014 with 401(k)s and IRA's I'll tell you what those are and how that may affect you.
The University of Minnesota is using virtual reality simulators to perfect surgical techniques.This is possibly the most significant change in surgical training since the early 1900's. Why does this matter to you, these techniques could keep you living longer, so again you need to plan for longevity.
                                                                         

Definition of the Day December12

Accrued Monthly Benefit (AMB):
This is the monthly amount earned toward an employee's pension via that individual's service to the employing company.

Definition of the Day December 11

Point -to-Point:
A way of calculating index annuity yield. The total yield is simply the difference in index value from the day the annuity is purchased to the day it expires.

Adults 65 and older report feeling much less tired than people in their 20's or teens

According to a new study that tracked nearly 13,000 Americans rated their energy levels and found that elderly people say they feel much less tired than teenagers and younger adults.
The results defy stereotypes of older people as weak and tired and counter earlier studies.
What's even more surprising, is that the results can't be explained away by elderly people sleeping longer or doing fewer tiring activities. In fact, tiredness dropped off after age 40 and continued to decrease with age.
The results which were published on-line in the Journals of Gerontology, were controlled for how healthy people thought they were and other characteristics, such as gender, ethnicity and how much people slept. Researchers also factored in how much of the day was spent doing tiring activities. So why might older people report feeling less tired than teens? The researchers say "We don't know" and we'd love to find out".
Todd will talk about this in an upcoming Your Safe Money Show.

Definition of the Day December 10

Annuitization:
The process of converting an annuity contract's value into an income stream represented by periodic payments made over a specified period of time.

Definition of the Day December 9

Executor:
An individual named in a will who is designed to carry out the wishes of the deceased person for the distribution of his or her property and who performs this activity under the supervision of a court.

Highlights for December 7 Your Safe Money Show

We're talking credit on this Saturday's Your Safe Money Show. Credit cards, credit scores, credit fraud and we'll introduce you to an expert on credit, John Mackey. I also have timely information on budgeting for the holidays.

Definition of the Day December 5

Renewal Rate:
The new rate of interest credited to an annuity after the current interest-rate period is over, typically on the anniversary of the contract. This rate may be higher or lower than the current rate, depending on economic conditions and the investments used by the insurer.

Definition of the Day December 4

Deferred Compensation:
Compensation for services rendered provided under an agreement stating that such compensation will be paid sometime in the future, after the actual services have been performed.

Census Info and Women's Workshop's

The 2010 U.S. Census shows 80% of the people that reach centenarian status, age 100, are women.

Because women have longer life expectancies they have greater financial challenges:

Women will need to stretch their retirement dollars further.

Women are more likely to need some type of long-term care, and may have to face some of their health-care needs alone.

Married women are likely to outlive their husbands, which means they could have ultimate responsibility for disposition of the marital estate.

Women generally earn less and have fewer savings.

According to the Bureau of Labor Statistics, within most occupational categories, women who work full-time, year-round, earn only 81% (on average) of what men earn. This wage gap can significantly impact women's overall savings, Social Security retirement benefits, and pensions.

We'll be offering a couple of workshops in late January called "Wine, Women, and Wealth" targeting women and their specific concerns. The dates are Tuesday January 28th and Thursday January 30th. Please keep those dates open and we'll have more details on these workshops in weeks to come.

Definition of the Day December 3

Liquidity:
The ability to quickly convert assets into cash by an individual or organization without incurring significant losses of value.

Have a Happy Thanksgiving!

Everyone at Sjoberg & Holmstrom Financial Services and Your Safe Money Show wish you and your family a Happy Thanksgiving! The office will be closed Thursday and Friday.

Thanksgiving Fun Facts

Fun Turkey Facts                                                   

The average weight of a turkey purchased at Thanksgiving is 15 pounds.

The heaviest turkey ever raised was 86 pounds, about the size of a large dog.

A 15 pound turkey usually has about 70 percent white meat and 30 percent dark meat.

The five most popular ways to serve leftover turkey is as a sandwich, in stew, chili or soup, casseroles and as a burger.

Turkey has more protein than chicken or beef.

Turkeys will have 3,500 feathers at maturity.

Male turkeys gobble. Hens do not. They make a clucking noise.

Commercially raised turkeys cannot fly.

Turkeys have heart attacks. The United States Air Force was doing test runs and breaking the sound barrier. Nearby turkeys dropped dead with heart attacks.

A large group of turkeys is called a flock.

Turkeys have poor night vision.

It takes 75-80 pounds of feed to raise a 30 pound tom turkey.

A 16-week-old turkey is called a fryer. A five to seven month old turkey is called a young roaster.

Definition of the Day November 27

Pension Plan:
A qualified plan designed to provide payments to an employee upon retirement. Pension plans comprise a yearly funding commitment from employers, no access to plan funds before retirement, and restrictions on investments in employer stock to ten percent.

Washington gridlock risks $7 milk

http://money.cnn.com/2013/11/26/news/economy/milk-farm-bill/index.html?iid=HP_MPM

Definition of the Day November 26

Tax-Deductible:
An amount of money deducted from the adjusted gross income of a taxpayer in order to calculate the total of taxable income. Medical expenses, paid mortgage interest, and charitable contributions itemized on Schedule A of federal income forms are examples of tax-deductible expenses.

Definition of the Day November 25

Period Certain:
An income option in an immediate annuity plan whereby the owner of the annuity contract may choose to receive periodic payments for a set period of time, with the payout amount determined by the contract's value and the length of the period of time chosen.

Highlights for Saturday's November 23 Your Safe Money Show

On this Saturday's Your Safe Money Show the "real rate of return" is different from the "annual rate of return" I'll explain what that difference is.I have some guidelines to use when loaning money to family members that might help you out in the long run. And 50 years ago November 22, 1963 President Kennedy was assassinated, we'll look back and make some comparisons to today

Consumer prices fell 0.1 percent last month

Cheaper gasoline lowered overall U.S. consumer prices slightly in October. But outside the steep drop at the pump, inflation stayed mild.The consumer price index fell 0.1 percent last month, down from a 0.2 percent increase in September, according to the Labor Department.

Definition of the Day November 21

Death Benefit:
The annuity benefit paid to a designated beneficiary when the annuity contract's owner dies.

Minnesota's unemployment insurance taxes drop

120,000 Minnesota businesses will pay lower unemployment insurance taxes at the beginning of 2014.
Minnesota firms pay a tax on the first $29,000 in annual wages for each employee, with the money going into a pool from which unemployed workers collect benefits.The tax rate moves depending on how many people are filing for unemployment, and the rate will be cut from the maximum 0.5 percent, to the minimum 0.1 percent, effective Jan.1. That was scheduled to happen in 2016 as fewer Minnesotans file for unemployment, but Gov. Dayton and the Minnesota Legislature agreed in the Spring to move the rate cut forward by two years.
Beginning in January, employers will also no longer have to pay an extra 14 percent tacked onto their total unemployment insurance tax bill. That assessment was added during the recession to ensure the state had enough money to cover unemployment benefits for all the people who lost their jobs. (Star Tribune Nov. 20)

Definition of the Day November 20

Rollover:
Refers to the monies from a qualified retirement plan or IRA (Individual Retirement Account) that are shifted from one plan to another plan of the same kind, maintaining the tax-deferred status of the funds.

Definition of the Day November 19

Cafeteria Plan:
An employee benefit plan that provides flexible dollars to be used by employees to pay for specific benefits from a list of choices, such as life insurance or health insurance, to put into a 401(k) plan or to use instead of a 401(k).

Highlights of Your Safe Money Show for Saturday November 16

There are some tax breaks that are ready to expire at the end of the year (unless the government steps in to extend them), and I'll tell you what those breaks are so you can still take advantage of them. Plus I look at inequality and income and what that means to you.

                                                                                

                                                                   

Definition of the Day November 14

Rollover:
Refers to the monies from a qualified retirement plan or IRA (Individual Retirement Account) that are shifted from one plan to another plan of the same kind, maintaining the tax-deferred status of the funds.

J&J reportedly agrees to $4B hip settlement

Johnson &Johnson has tentatively agreed to pay an estimated $4 billion to settle thousands of lawsuits filed by patients who were injured by a flawed all-metal replacement hip the company made, The New York Times reported.The tentative settlement, which is subject to court approval, represents one of the largest payouts in history for product liability cl;aims involving a medical device. A spokesman for the company's Depuy Orthopaedics unit declined to comment on the possibility of a settlement. The agreement will cover those patients who have already been forced to have the device, known as the Artticular Surface Replacement, or ASR, removed and replaced with another artificial hip, the Times said.citing anonymous sources.

Definition of the Day November 13

Treasuries:
A term that refers to all of the federal government's negotiable securities. Treasury bill (T-bills) have short-term maturities of three and six months and do not pay interest. Instead, they are sold at face value. Treasury bonds may be obtained in $1000 units and have maturities of ten years or more. Treasury notes have medium-term maturities of between one and ten years.

Definition of the Day November 12

Guaranteed Interest Rate:
The minimum interest rate an insurer will credit during an annuity contract's accumulation phase.

Highlights for Saturday November 9 Your Safe Money Show!

I'll be talking about the problems with the healthcare.gov website and with MNSure and give some tips to make it easier for you.If you're nearing retirement are you prepared "mentally" for the changes? A counseling psychology professor has some data on other retirees and what worked for them.

                                                                       

Definition of the Day November 7

Endowment:
An insurance policy that pays out its face amount to the individual insured when it reaches maturity, if that person is still alive. If the insured has died before the policy matures, the face amount is paid to a designated beneficiary.

Definition of the Day November 6.

Surrender Charge:
A penalty imposed by the insurer if the contract owner terminates the annuity prematurely, by withdrawing anything above the penalty free amount.

Corn Harvest Fattens Up Chicken Production (November 5)

The biggest-ever U.S. corn harvest is spurring poultry farms to expand chicken production, sending domestic supplies of the meat to a record and cutting costs for buyers from Costco Wholesale to McDonald's. Corn fell 50 percent from its peak during last year's U.S. drought, boosting profit for Tyson Foods and other poultry producers and expanding supplies of broiler meat the government says will reach a record this year and next.
(News Services)

Newsletter!

Hey be sure to check out the new November/December Your Safe Money Show Newsletter on the "Financial Materials" page on the website.

Definition of the Day November 5.

Tax-Deferral:
Refers to the fact that earnings from an annuity are not taxed until they are withdrawn from the plan.

Get Their Mitts Off Your Nest Egg Workshop!

Here's your last chance to be part of a workshop called "Get Their Mitts Off Your Nest Egg"! 

Tuesday November 5th at 10 a.m. at Dresser-Methven Funeral Home at 124 Maple Ave. in Mora.
 Also on Wednesday November 6th at 10 a.m. at Mille Lacs Funeral home on HWY 47 in Isle.
 There are a few seats left! You can reserve your spot at 877-812-0259 or  go to the contact us page here at the website.
The workshop normally lasts around 60 minutes. 
You will:
Learn how to reduce or eliminate paying taxes on Social security Income!
Learn how to insure against stock market declines and low interest returns from banks!
Learn about Safe Money Strategies!
Learn how to avoid probate and the associated costs!
Learn how to protect your assets from nursing home spend down!
Learn about medicare changes!
Nothing will be sold at this workshop! Leave the check books at home!

Highlights for November 2 Your Safe Money Show!

Listeners passed along some concerns they had about Social Security and income limits, and Medicare and Observation Days, so I'll answer those questions.Life insurance policies need to be reviewed periodically and this came to light recently with one of my clients, they were surprised to find out how changing policies saved them a bundle.

Definition of the Day November 1.

Withdrawal Charge:
A penalty imposed by the insurer if the contract owner cashes out part of the annuity prematurely. Withdrawal charges typically phase out according to a schedule, e.g., 10% before 3 year, 5% after 4 years, 0% after 5 years. Withdrawal charges may be waived in the event of death or illness.

Federal Reserve Prolongs Stimulus

There's still no end in sight for the Federal Reserve's stimulus program -- known as quantitative easing -- after the central bank met this week and decided to continue buying $85 billion in bonds each month.

http://money.cnn.com/2013/10/30/news/economy/federal-reserve-stimulus/index.html?iid=H_E_News

Definition of the Day October 31.

Mutual Fund:
An account combining the funds of many individuals in order to invest these funds in a range of financial instruments. A financial service company usually establishes this type of account.

Definition of the Day October 29.

Fixed Annuity:
An annuity contract that provides a guaranteed minimum interest rate and a higher current interest rate for shorter time periods during a deferred annuity's accumulation phase.

Highlights for Saturdays (Oct. 26) Your Safe Money Show!

Interest rates on CD's, bonds,treasuries and the like have never been lower. How is someone suppose to "save" any money in these types of accounts? I have some solutions for you. I am also looking at the book "The Simple Path" on the show this Saturday and you might get a chance at getting a copy.

Definition of the Day October 23.

Fully Funded:
When a pension plan has enough assets to pay for all of its current benefits and those promised for the future, it is said to be fully funded.

Recent Report: Unemployment Rates Fall.

Here's the September jobs report.

http://finance.yahoo.com/blogs/hot-stock-minute/september-hiring-misses-estimates-unemployment-rate-falls-130358302.html

Definition of the Day October 22.

Anniversary Date:
The anniversary of the date on which an annuity starts or becomes effective. Index annuities calculate annual yield by taking the difference in the S & P 500 between anniversary dates.

Definition of the Day October 21.

1035 Exchange: A tax-free transfer of an annuity contract from one insurer to another. A good reason to switch insurance companies is to lock in a higher rate. Although a 1035 transfer is tax-free, it might be accompanied by a surrender charge if surrender fees have yet to lapse.

Highlights for Saturday's 10-19 Your Safe Money Show

What's the difference between red and green money? What is probate and how can you avoid it? When is the best time to take Social Security? These are just a few of the questions I answer on this Saturday's Your Safe Money Show.

Will Interest Rates Hit 5 Percent?

If you're in the market for a home or thinking of refinancing the one you own, it's safe to say that you have been watching mortgage interest rates closely. So you've seen that over the past few months they've had a disturbing trend: Rates are going up.

Read the full article here:

http://homes.yahoo.com/news/how-high-will-interest-rates-go-225652490.html

Definition of the Day October 17.

Definition of 'Gift In Trust'

An indirect bequest of assets to a beneficiary by means of a special legal and fiduciary arrangement. The purpose of a gift in trust is to avoid taxes on gifts that exceed the annual gift tax exclusion amount. Gift taxes are almost always paid by the gift giver and if they exceed $13,000 in one year the excess is taxable.

Investopedia explains 'Gift In Trust'

Gift givers can give gifts in excess of the annual exclusion without paying taxes by establishing a special type of trust, such as a Crummey trust. A gift to a Crummey trust allows the beneficiary to withdraw the gift for a limited time, which makes the gift a present interest and makes it eligible for the gift tax exclusion. If the gift did not have these limited-time withdrawal rights, it would be considered a future interest and it would be subject to gift taxes. That being said, it is generally understood that the beneficiary will not actually withdraw the funds during the withdrawal period. Gifts in trust are commonly used by parents or grandparents who want to establish a trust fund for their children or grandchildren.

http://www.investopedia.com/dictionary/

Open Enrollment for Medicare Part D Coverage.

The open enrollment period for Medicare Part D started October 15th and runs through December 7th 2013.  It's a good idea to evaluate your current drug coverage and if you need to make changes now is the time. If you would like, I can look over your situation and offer options that would best suit your needs. Call toll-free 877-812-0259 for an appointment. I also have the link to the AARP website to answer some of the common questions.

http://www.aarp.org/health/medicare-insurance/medicare_partD_guide/

Definition of the Day October 16.

Definition of 'Federal Deposit Insurance Corporation - FDIC'

The U.S. corporation insuring deposits in the U.S. against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

Investopedia explains 'Federal Deposit Insurance Corporation - FDIC'

The FDIC will insure deposits of up to US$250,000 per institution as long as the bank is a member firm. 

Before opening an account with a financial institution, be sure to check that it is FDIC insured.

http://www.investopedia.com/dictionary/

Get Their Mitts Off Your Nest Egg Workshop!

I am excited to be doing a workshop called "Get Their Mitts Off Your Nest Egg"! 
Tuesday November 5th at 10 a.m. at Dresser-Methven Funeral Home at 124 Maple Ave. in Mora.
 Also on Wednesday November 6th at 10 a.m. at Mille Lacs Funeral home on HWY 47 in Isle.
 You can reserve your spot at 877-812-0259 or  go to the contact us page here at the website.
The workshop normally lasts around 60 minutes. 
You will:
Learn how to reduce or eliminate paying taxes on Social security Income!
Learn how to insure against stock market declines and low interest returns from banks!
Learn about Safe Money Strategies!
Learn how to avoid probate and the associated costs!
Learn how to protect your assets from nursing home spend down!
Learn about medicare changes!
Nothing will be sold at this workshop! Leave the check books at home!

Definition of the Day October 15.

Definition of 'Electronic Benefit Transfer - EBT'

A system that allows state governments to provide and track benefits to authorized recipients via a plastic debit card. Common benefits provided via EBT are Food Stamps and Cash benefits. Recipients receive a plastic payment card with a magnetic strip and a PIN is issued. Cash benefits include State General Assistance, TANF (Temporary Aid for Needy Families) benefits and refugee benefits.Cash and food stamp benefits are deposited into electronic benefit accounts which can be accessed using a Common Benefit Identification Card (CBIC) and Personal Identification Number (PIN). The Card can be used at EBT participating merchants and ATM machines and Point of Sale (POS) terminals throughout the state.

Investopedia explains 'Electronic Benefit Transfer - EBT'

As of 2008, Congress renamed the Food Stamp Program the Supplemental Nutrition Assistance Program. Electronic Benefit Transfer (EBT) has been adopted nationwide since 2004.

http://www.investopedia.com/dictionary/

Getting a Financially Organized Life!

Getting organized can be a challenge, but when it comes to your finances it can be costly NOT to be organized. Check out this article for ideas.

https://www.manilla.com/resources/money/financial-success/

Highlights for Saturday's Your Safe Money Show (10-12)

It's that time of year again, Medicare Part D open enrollment gets underway on the 15th.Here's your chance to look over your coverage and see if it's right for you.Getting financially organized can save you money find out how on this week's Your Safe Money Show. Check out the website for stations and times and hear recent shows on our podcast page.

Definition of the Day October 10!

Definition of 'Earnest Money'

A deposit made to a seller showing the buyer's good faith in a transaction. Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. Earnest money is typically held jointly by the seller and buyer in a trust or escrow account.

Investopedia explains 'Earnest Money'

An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit. Typically, if the seller terminates the deal, the earnest money will be returned to the buyer. When the buyer is responsible for retracting the offer, the seller will usually be awarded the money.

http://www.investopedia.com/dictionary/

Definition of the Day for October 9!

Definition of 'Death Benefit'

The amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant passes away. 

Also known as "survivor benefit."

Investopedia explains 'Death Benefit'

A death benefit may be a percentage of the annuitant's pension. For example, a beneficiary might be entitled to 65% of the annuitant's monthly pension. Alternatively, the benefit may be a large lump-sum payment from a life insurance policy. The size and structure of the payment is determined by the type of policy the annuitant held at the time of death.

http://www.investopedia.com/dictionary/

Definition of the Day October 8!

Definition of 'Cafeteria Plan' An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs. Cafeteria plan options may include health and accident insurance, cash benefits, tax advantages and/or retirement plan contributions.  Also known as "cafeteria employee benefit plan" or "flexible benefit plan". Investopedia explains 'Cafeteria Plan' Similar to a cafeteria where individuals select their food of choice, employees may choose benefits of their choice. These plans become more useful as diversity within workforces continues to grow. For example, the benefit needs of young families may differ greatly from those of a single person. http://www.investopedia.com/dictionary/

Bad Habit's That Can Ruin Your Retirement.

http://www.dailyfinance.com/2013/09/27/habits-ruin-retirement-budget-save-plan/#!slide=976331

Definition of the Day Monday October 7!

Definition of 'Actuarial Life Table'

A table or spreadsheet that shows the probability of a person at a certain age dying before his or her next birthday. These statistics calculate the remaining life expectancy for people at different ages and the probability of surviving a particular year of age. Because men and women have differing mortality rates, an actuarial life table is computed for separately for men and women.

Also called mortality table, life table or actuarial table.

Investopedia explains 'Actuarial Life Table'

Insurance companies utilize actuarial life tables to help price products and project future insured events. Mathematically and statistically based actuarial life tables assist by showing event probabilities, such as death, sickness and disability. An actuarial life table can also include factors to differentiate variable risks such as smoking, occupation, socio-economic status and even gambling and debt load. Computerized predictive modeling allows actuaries the ability to calculate for a wide variety of circumstances and probable outcomes.

http://www.investopedia.com/dictionary/

Highlight's for this Saturday's (10/5) Your Safe Money Show

Did you know bad habits can ruin your retirement, it's true, so I have ways to avoid those habits on this Saturday's Your Safe Money Show. I also talk with Sam Stovall, Chief Equity Strategist of the S&P 500, and get his take on the market's future and job's . Plus the "what if" question this week cover's asset transfer's that are tax free.If you are a listener at HOPE FM that programming has moved to 106.1 HD2 and at 95.9 FM it's now La Neta (the Truth) so you can still hear us there both at 7:30 am Saturday. You can also listen at BOBFM at 106.1 and WQPM 1300 AM still at 7:30 am Saturday and at 1150 AM KASM at 8:30 Saturday morning.

Definition of the Day!

Definition of 'Back-End Ratio' A ratio that indicates what portion of a person's monthly income goes toward paying debts. Total monthly debt includes expenses such as mortgage payments (made up of PITI), credit-card payments, child support and other loan payments. Lenders use this ratio in conjunction with the front-end ratio to approve mortgages. Also known as "debt-to-income ratio".

Investopedia explains 'Back-End Ratio' For example, if your monthly income is $5,000 ($60,000/12) and your total monthly debt payments are $2,000, your back-end ratio is 0.40 or 40%. Generally, lenders like to see a back-end ratio that does not exceed 36%; however, there are lenders who make exceptions for ratios of up to 50% if you have good credit. Some lenders consider only this ratio when approving mortgages, as opposed to using it in conjunction with the front-end ratio.

Student Financial Aid Change for 2013.

IRS Data Retrieval
The FAFSA filing process has changed, and it is recommended that all students use the IRS Data Retrieval tool to obtain their or their parents' federal tax return. Using this tool will eradicate common errors on FAFSA forms, and keep your application for student financial aid running smoothly. Tax information is available through the tool approximately 2-3 weeks after tax return submission, and by now all data should be in and finalized. Also keep in mind that Federal 1040 tax returns are no longer an acceptable form of verification for the FAFSA.

For more changes go to: http://www.investopedia.com/articles/personal-finance/081413/student-financial-aid-changes-fafsa-2013.asp

Obamacare: Separating Truth from Fiction

I have heard many of these statements recently, this Yahoo article might clear some of those up.

http://finance.yahoo.com/blogs/daily-ticker/obamacare-separating-truth-fiction-know-121733560.html

New Feature...Definition of the Day!

With the help of "Investopedia" I'll provide a definition of a financial term here at my blog. Education is a huge part of what Your Safe Money Show is all about so I hope you enjoy this new feature!

Definition of 'Abstract Of Title'

A brief history of the titles for a piece of land. The abstract of title lists all of the legal actions that have been performed or used in conjunction with a piece of property. This is used to determine whether or not there is any kind of claim against a property.

http://www.investopedia.com/dictionary/

Benefit's of Roth IRAs.

The Roth IRA is an amazingly versatile product. Its primary purpose is to provide a tax-advantaged way to save. But unlike other retirement-savings accounts, Roths let you use the money for a variety of purposes without triggering crippling taxes or early-withdrawal penalties. A Roth won't reduce next year's tax bill, but the payoff comes later as earnings withdrawals are eventually tax-and penalty-free. (Kiplingers)

How Long Will the Government Shutdown Last?

Shutdowns in the past have been anywhere from a few days to 3 weeks. Here's 7 things you won't have to worry about with the shutdown.

http://money.cnn.com/2013/09/30/pf/government-shutdown-consumers/index.html?iid=Lead

Todd's Tip of the Day!

Having your home and your car insured through the same insurer might attract discounts.

You can be eligible for multiple insurance discounts by getting your home and car insured through the same insurer. Most insurers are happy to give discounts when you purchase more than 1 insurance policy from them. Believe it or not, you can save as much as 20% on your insurance costs if you purchase several policies from the same insurer. Most of the insurers offer both auto and home insurance policies. So, you won't have problem in purchasing the insurance policies. Make sure you compare the premium rates charged by several insurers. This will help to determine if you should stick to your current insurer.

Redefining the American Dream

I found this article from Yahoo to be really interesting...see what you think! Go to the podcast page and listen to the show "Redefining the American Dream.

http://finance.yahoo.com/news/american-dream-not-think-173054394.html

Todd's Tip of the Day!

 Keep a close watch on the air fare after you've purchased air tickets. You might get good rebates.

It is not that you should check out the air fares only before buying a ticket. Keep a tab on the air fare even after purchasing a ticket. This is because several online travel agencies offer discounts in form of vouchers and travel credits when the ticket price falls below what you've spent. There are various websites that send you notifications whenever the ticket price falls. Remember, you may have to pay a fee to re-book a ticket. Check out the fee amount carefully. If it is more than than the discount amount or percentage, then its best to not re-book your ticket.

Highlights for Saturday September 28th Your Safe Money Show!

On Your Safe Money Show this week I am talking about the "turmoil" with the possible government shutdown and were looking at the Redefining of what the American dream is today. If you are a listener at HOPE FM that programming has moved to106.1 HD2 and at 95.9 FM it's now La Neta (the Truth) so you can still hear us there both at 7:30 am Saturday. You can also listen at BOBFM at 106.1 and WQPM 1300 AM still at 7:30 am Saturday and at 1150 AM KASM at 8:30 Saturday morning. 

What's Next in the Government Shutdown Saga

Market Watch takes a good look at the various scenarios that could happen with the possible government shutdown.

http://blogs.marketwatch.com/capitolreport/2013/09/25/whats-next-in-the-government-shutdown-saga/

Todd's Tip of the Day!

Begin your retirement planning with your first job.

Retirement planning is a long process. You can't plan your retirement within a fraction of time. You have to start planning for your golden years of life right after getting your first job. You need to participate in the retirement plans. It can be 401 (k), Traditional IRA, Roth IRA, etc. Don't exhaust all your money every moth. Save a certain amount for your retirement years. You would not want to live rich now and die in poverty. You can consult a financial planner and decide about the retirement plan that will suit you best.

99-year-old Iowa Woman Gets Her High School Diploma

This is the kind of story I love to share. Were living longer and better lives. If you have concerns about having enough money in retirement call today or contact us here at the website.

A 99-year-old Iowa woman who dropped out of a high school more than 80 years ago despite needing only one credit to graduate has finally received her diploma.

Audrey Crabtree, of Cedar Falls, smiled Monday as she received an honorary diploma for her time at Waterloo East High School.

“And I feel so much smarter,” Crabtree quipped.

Crabtree, who began her education at a one-room school house in northeast Iowa, left high school in 1932 after a swimming and diving accident that forced her to miss several school days. She also had to care for her sick grandmother.

“I was a senior, but I was short a credit, so I would’ve had to go back the next fall,” she told the Waterloo-Cedar Falls Courier.

That would have interfered with her plans to marry her first husband. In 1957, the couple bought the flower shop where Crabtree had worked after their two children started school. But her husband died of a heart attack two months into their business venture.

Crabtree operated Flowers by Audrey for 28 years. She married two more times and outlived both husbands. Her family today includes five grandchildren and four great-grandchildren.

Todd's Tip of the Day!

 Collect the information about the company before going for the job interview.

Gather all the information about the company before attending a job interview. Know the past achievements and future goals of the company. Find out where the company is located. Try to know about the work culture and your job profile. Know how many employees work in the company. You can get all these details from the official website of the company.

Browse through the different sections of official website. Find out what the employees have to say about the company. Are they happy or utterly disgusted with the management? Check out the special benefits offered to the employees.

Todd's Tip of the Day!

Will you really benefit from the reward cards?

Usually, reward cards carry a high rate of interest. In fact, the interest rate is higher than that of a normal credit card. If you do carry a balance every month, then a reward card won't be that much beneficial for you.

As far as the airline miles card is concerned, you should ask the credit card issuer about the blackout dates. Ask when the credit card issuer will disqualify you for the reward programs. Will you lose reward points after getting delinquent on the credit card?

Secured credit cards help you repair your tarnished credit. The rate of interest is usually low and you can spend only up to a certain amount. However, some credit card issuers charge fees like annual fee, maintenance fee, application fee, etc. You may also have to pay fee for speaking with the customer care officer. It is better to know about these fees from beforehand so that you don't get a shock later. Ask if the card issuer will report to the credit reporting agencies. Your credit score will not improve unless the card issuer reports the payments to the credit reporting agencies.

Todd's Tip of the Day!

How much will you have to pay for balance transfers?

Credit card balance transfer fees can drain funds from your account. If you're unable to calculate the fees properly, then you may have to pay a huge amount to the credit card issuer. Usually, card issuers charge a specific percentage of the overall transferred amount. Still, to be on the safer side, you can ask if there are extra charges. For instance: if a bank charges 4 percent fee, then you've to pay $400 for transferring $10,000 to the new low rate card. Don't forget to ask about how much will the interest rate increase after the introductory period is over. Usually, the rate gets doubled after the promotional offer expires.

Highlights for this Saturday's 9-21-13 Your Safe Money Show!

Do you have a bad knee or hip and you're only 45 years old? Medical devices are being used in younger patients today, what are the implications for you.Also on this Saturday's Your Safe Money Show, don't let excess financial papers clutter your home, I'll tell you what papers can go. There's another Medicare scam tune in to find out what it is.

Wind Turbines Have Best Year Ever!

If you had to choose one clean-energy technology that has already proven itself to be revolutionary, it would have to be the windmill. The current incarnation is known as the 3-blade upwind turbine. In the U.S. alone, there are about 45,000 such machines. Last year was the industry's most successful ever with national capacity reaching 60,000 megawatts, enough to power the equivalent of about 15 million U.S. homes. As the wind industry has grown, its turbines have gotten bigger too-so large that a few off shore turbines now top 500 feet in height and cover a 400-foot diameter in the sweep of their rotor blades.
                                                                               

Todd's Tip of the Day!

If you have multiple credit cards, then use a pay-down strategy to reduce your debt.

If you are using multiple credit cards at the same time, then it is important to develop an intelligent strategy to repay all the bills on time. If you don't develop a strategy, then it will be very difficult for you to make the bill payments. You'll start missing payments and the creditors will report them to credit bureaus. Negative items will be reported on your credit report and hurt your score.

There are lots of pay-down strategies which you can use to protect your financial health. For example, you can use bi-monthly strategy to repay your bills. You can pay off the bills twice a month. This way, you won't have a pay a huge bill at the end of the month.

Todd's Tip of the Day!

Juice your credit score: An excellent score-740 and up-is money in your pocket.
On a 30-year $250K mortgage, someone with a score of 620 would pay about $240 more per month than someone with a 760. While a good score is earned over time, you can do two things to quickly boost your number.
1. Get free credit reports at annualcreditreport.com. Read them carefully for mistakes. Errors can cost you points.
2. Call your card issuers to ask for an increase in your credit limits. The more unused credit you have, the better you look. Ideally, use no more than 10% of what's available to you.

Todd's Tip of the Day!

Get a grip on your taxes.

Every responsible citizen of the country needs to file tax returns in a year. So, if you're a good citizen of the nation, then do file your income tax returns within time. Evaluate your income correctly and report it to the IRS. You can consult your tax consultant to get a grip on taxes. The consultant can tell you how much you need to pay for tax in a given year or the ways in which you can get tax credits. You can even go through the articles published on various financial websites about tax tips and advice.

Documents You Need Before You Die

Please read this article about documents you need before you die.This was used in the September 14th edition of Your Safe Money Show. You can hear the show at our podcast page.

Check out these websites :

If you want to search for unclaimed bank accounts and other assets go to www.missingmoney.com.

 AARP offers state by state listings of "advance directive" forms, get those at their website.

Also you can search for unclaimed pensions, 401(k)'s and IRA's at www.unclaimed.com

http://online.wsj.com/article/SB10001424052702303627104576410234039258092.html

Todd's Tip of the Day!

It is very much possible to be a graduate without a student loan. All you need to do is get scholarships and grants.

The rising tuition cost has made it extremely tough for the students to be a graduate without taking out student loans. However, it is not completely impossible to be a graduate without being immersed into debt problems. You can apply for scholarships and grants to get financial aid. There's no rule which says that you need to have A+ grades in order to be eligible for scholarships. All you need to have is dedication, hard work and patience. There are thousands of students who have received grants and scholarships without being an exemplary student. If they can get scholarships, there's no question why you shouldn't qualify for them.

Highlights for the 9-14-13 Edition of Your Safe Money Show!

It's sure feeling a little like fall and getting ready for winter is something we Minnesotans know is coming. We have to prepare and we also need to prepare certain documents for our loved ones when we die. I know it's a tough topic but so important. Tune in Saturday at 7:30 a.m. at BOBFM 106.1, HOPEFM 95.9, WQPM 1300AM, and at 8:30a.m.at KASM 1150AM.

Domestic oil production highest since '89

U.S. oil production jumped last week to the highest level since May 1989, cutting consumption of foreign fuel and putting the U.S. closer to energy independence. Drilling techniques including hydraulic fracturing, or fracking, pushed crude output up by 124,000 barrels, or 1.6 percent, to 7,745 million barrels a day in the seven days ended Sept. 6, the Energy Information Administration said. Rising crude supplies from fields including North Dakota's Bakken shale and the Eagle Ford in Texas have helped the U.S. become the world's largest exporter of refined fuels including gasoline and diesel.

Todd's Tip of the Day!

 Discover savings under your own roof.

You won't have to go to extreme lengths for saving money when you're facing credit crunch. You can save money in your own home by taking some simple steps. For instance, getting a programmable thermostat for your home and adjusting it accordingly to save when your not home.Keeping drapes shut helps in extreme cold or heat. Turn off the lights while going somewhere. Make a list before grocery shopping and stick to it, try not to make impulse buys as they usually cost you.Use CFL bulbs in your room. Purchase items in bulk to get discounts.  Re-use the old items instead of purchasing new ones.

Remembering 9/11.

Let's Never Forget!

Todd's Tip of the Day!

You've worked hard, saved well and amassed enough money to leave the kids a tidy sum. Should you attach strings that limit how or when they use it?
Thirty percent of wealthy Americans do just that. They use wills or trusts to reward certain types of behavior and discourage others by delaying or cutting off the supply of cash. Drawn up right, so-called "incentive trusts" perpetuate your values and help your heirs cultivate staggered payouts to deter youthful errors, mandatory drug testing, rewards for achievement, or even provisions for the trustee to be flexible.

Todd's Tip of the Day!

Save daily for your insurance deductible.

Deductibles help you save money on your insurance policies. If you opt for a high deductible, then you'll have to pay low premiums on your insurance. This is why the insurance experts advise people to go for high deductibles. If you have opted for a high deductible to save on your insurance premiums, then make sure you save money for it. You'll need this money at the time of making an insurance claim. If your deductible amount is $1000, then save that amount as soon as possible. You can accumulate this amount by saving a small amount of money regularly.

Ways to Save on Monthly Subscripitions

Take a look at these suggestions to save on common subscriptions.

http://money.usnews.com/money/blogs/my-money/2013/08/26/5-subscriptions-you-could-be-paying-less-for?src=usn_fb

Todd's Tip of the Day!

Know the FDCPA in order to save yourself from harassment by debt collectors.

The job of the debt collectors is to collect money from the consumers. They can do anything to do their job. They can bully you to get their job done. However, this does mean that you'll have to put up with their illegal tactics. You can go through the FDCPA (Fair Debt Collection Practices Act) laws to know about the collection laws. The debt collectors are required to follow these laws while collecting money from the consumers. If you find that the collectors are intentionally or unintentionally breaking the laws, then all you need to do is report the matter to the FTC.

Highlights for Your Safe Money Show Saturday September 7!

Make plans to be by your radio for this Saturday's (9-7) Your Safe Money Show. The markets on average this year are up but recent developments in Syria are causing concern. I have ways for you to save on some of your monthly bills and since were living longer I look at suggestions on saving for the long term. Tune in Saturday at 7:30 a.m. at BOBFM 106.1, HOPEFM 95.9, WQPM 1300AM, and at 8:30a.m.at KASM 1150AM. Hear the show podcast at www.yoursafemoneyshow.com. Most recent shows are at the bottom of the podcast page.

Todd's tip of the Day!

Common sense money help/tips:
Agree with your partner that you won't spend more than a specific amount without consulting each other, it's not about permission. It's about slowing down.
Show kids how to save by giving them a food allowance next time you eat out. Let them keep what they don't spend.
Institute a mandatory 24-hour waiting period before pulling the trigger on big ticket purchases. A "gotta have" item can become a "glad I didn't" near miss.
Study your monthly bills- cable, credit card, phone. You'll be horrified by the amount you're spending on features you don't use.