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.