Last chance for RMD's if you turned 701/2 is April 1st!

April 1 is the deadline for people who turned 70 1/2 to take their first annual required minimum distribution (RMD) from their individual retirement accounts and 401(k)s — you’re supposed to take it by Dec. 31 of the year you turn 70 1/2, but that deadline is extended to April 1 for the first year. For every year following, including if you wait until April 1 to take your first RMD, you have to take the distribution by the end of the year.

The Cost of Procrastination

If you don’t, it could cost you significantly. Failing to withdraw the RMD will result in a 50% tax on the amount not withdrawn. It’s up to the account holder to make sure he or she withdraws the proper amount, and you can withdraw more than the minimum, but know that anything extra doesn’t count toward meeting the next year’s minimum.

Everyone has a different RMD, and the Internal Revenue Service explains how to calculate yours: “Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that IRS publishes in Tables in Publication 590,” the IRS website says.

Another thing to know: Roth IRAs do not require withdrawal until the death of the owner. Also, unless the withdrawal was already taxed or can be received tax-free, it is going to be counted toward your taxable income.

If you have multiple retirement accounts, you’ll need to make a withdrawal for each one. Given the steep penalty for failing to make a withdrawal, you’ll want to make sure you don’t overlook anything. It’s not a bad idea to reach out to the institution that manages your account for guidance on RMDs, and the IRS offers a lot of helpful information on its website, as well.

Format change for WQPM AM1300

Tune in to WQPM 1300 AM they have a new format playing oldies- 50's and 60's and they're calling it "The Big Q". Your Safe Money Show will be going to 8:30 a.m. Saturday's from our 7:30 a.m. spot. So sleep in on Saturday's and still catch the show at 8:30.

                                                                            

Definition of the day March 31

Custodian: The institution or individual holding the assets of another. For example, a custodian may be a bank that holds the assets of a corporation or mutual fund, or it may be an adult who is responsible for the financial activities of a minor child.

Highlights for this Saturday's Your Safe Money Show March 29

Alright I hope you're ready for Part 2 in my series on Maximizing Social Security Benefits! This week I am looking at "Now or later" and the "divorce factor". A new tax bill passed the Minnesota Legislature recently and I'll see what that means for you. It's been a long winter, time to get out of an emotional slump and get motivated, I have an article from Harvey MacKay I think you'll really like. 

I am a fan of Jim Rohn and here's a quote from him today

"I remember saying to my mentor, 'If I had more money, I would have a better plan.' He quickly responded, 'I would suggest that if you had a better plan, you would have more money.' You see, it's not the amount that counts; it's the plan that counts." -- Jim Rohn

Definition of the day March 25

Guaranteed Minimum Surrender Value: Index annuities are regulated by the National Association of Insurance Commissioners, which requires investors to at least receive 90% principle +3% for every year the contract was held.

Your Safe Money Show does grocery grab

We had a great time being part of Peoples National Banks annual grocery grab held at Coborns in Mora last Thursday. March is food shelf month and teams competed to have the highest dollar amount of goods in a minute and a half. The winning team had over $1100 and we had $595, it was our rookie year and we will be back. All the food was donated to the Mora and Ogilvie food shelves and total from all the teams was over $6000.

                                                             

Highlights for Saturday March 22 Your Safe Money Show

Starting this Saturday on Your Safe Money Show I will have excerpts of a workshop I went to on Social Security maximization. This week it's on "Finding your PIA (Primary Insurance Amount). I'll also touch on avoiding fees and penalties in retirement accounts. 

Grocery Grab tonight!

I am so excited to be part of Peoples National Bank of Mora's annual "grocery grab" tonight at 6 p.m. at Coborn's in Mora! March is food shelf month. Robin and I will do our best even though shopping is not something I am very good at, I figure Robin has plenty of shopping experience Ha! So stop out tonight at 6 at Coborn's in Mora to cheer all the team's on or just support your local food shelf!
                                                                              

New study numbers on retirement not as great as you think

More Americans are confident about their retirement prospects for the first time in seven years, but even so, more than one-third of workers (36%) have a measly $1,000 saved for their later years, according to a new study by the Employee Benefit Research Institute. (Compare that to the 28% of workers who said they had $1,000 saved in last year's survey, and the picture gets a little more grim.)

As a whole, however, Americans are feeling more confident about retirement, with 18% saying they're "very confident," up from 13% in 2013. But this year’s confidence numbers are still lower than they were before the Great Recession, when one-quarter of Americans were feeling very confident about their golden years.

New series on Social Security on Your Safe Money Show

I recently went to classes on Social Security. I thought "well I'll go but more than likely it'll be boring and I won't learn much". Boy was I wrong. It was one of the better seminar's I've been to and what I learned I will now share with you.
Starting this Saturday the 22 of March I'll start the series with "Finding your PIA". This series will be about maximizing your Social Security benefits and the tips I'll be covering could make a huge difference for you when you're making decisions about Social Security. There's 10 topics total and depending on time we'll get through them all in 7 to 10 weeks. So as not to overwhelm, my weekly show will also cover other topics like this week I'll also look at avoiding retirement penalties and fees.

Highlights for Your Safe Money Show this Saturday March 15.

I have a feeling the winter of 2013-14 will be one we won't soon forget (and it's not over yet). on this Saturday's Your Safe money Show I look at the "cost" this winter has inflicted and the cost yet to come, plus the positives for certain factions like snow removal, snowmobile sales, ect. I am also excited about what I learned recently at some Social Security classes I took and I'll be sharing some of that in upcoming shows.

Are You Saving Blindly?

A recent study by Wells Fargo found that fewer than one-third of middle-class Americans age 40 to 59 have a written retirement plan. People are saving blindly, there's no sense of how they're doing or where they're trying to get to
One-third of all respondents said they'd stay on the job until age 80 for lack of a means to retire.
Research shows that the very act of calculating what you need for retirement improves your odds of achieving it.

Highlights for Saturday March 8 Your Safe Money show

Have you heard about the California couple who found $10 million in gold coins on their property last April? I am going to look at how will Uncle Sam get his share. In fact this Saturday's (March 8) Your Safe Money Show, is about taxes. There's new tax filing changes that you need to know about that might save you some money.

Definition of the Day March 5

Owner-Driven: An Annuity whose provisions trigger upon the death, reaching of a certain age, or disability of the contract owner.

Seniors getting the message about delaying retirement

A recent study found that 58% of workers age 60 and older are delaying plans to retire, down from 61% in 2013 and a peak of 66% in 2010.