Highlights for November 2nd Your Safe Money Show

For the November 2nd edition of Your Safe Money Show I want to explain some of the disadvantages of Medicare Advantage plans.
Many Americans think they know more about money than they do, and this can cause problems through out your life but especially in retirement. I’ll have ways to bridge the financial literacy gap.
And I’ll have the changes coming to Social Security in 2020. Please listen at 95.5FM KBEK at 7:30 Saturday mornings. They stream live at kbek.com.
Hear recent shows at the podcast page at yoursafemoneyshow.com.

Risk tolerance

New rules for 401(k) withdrawals

Taking money out of your employer’s 401(k) plan while you’re still on its payroll is about to get easier. The federal government’s new rules about “economic hardship” withdrawals from retirement savings plans like 401(k)s go into effect in January 2020.

1. Under the old rules, hardship withdrawals were limited to the amount of money you’d contributed into the plan. The new rules increase the potential pool of savings by including any employer match, profit-sharing contributions and investment earnings.

2. Employers will no longer require you to take out a 401(k) loan before applying for a hardship withdrawal.

3. You’ll be allowed to contribute to your 401(k) immediately following the withdrawal, rather than waiting six months, as in the past.

The reason hardship withdrawals and loans are allowed: there’s some evidence that knowing the possibility of dipping into retirement savings exists boosts both participation and savings rates.

The big worry is that the making hardship withdrawals easier will increase what’s known as 401(k) “leakage” which is people using their retirement plan money while employed.

 Listen I am a retirement income planner I want you to leave your retirement money alone, but I realize there might be a time that you have to tap into those savings just be aware of the consequences.

If you have questions call 320-679-5183.

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Your Safe Money Show topics for October 26th

We hope you can listen this Saturday morning (October 26th) at 7:30 for another edition of Your Safe Money Show.
You’ve maybe heard of discount drug cards that offer savings on your prescriptions. We’ll see what they offer and how they work?
Also, the Federal Government has new rules regarding “economic hardship” withdrawals from 401(k)s, you need to be careful with this.
And I'll explain about what happens to someone’s debt when they die.
KBEK streams live at kbek.com. If you can't listen at 95.5FM KBEK on Saturdays, you can hear recent shows at our website homepage at yoursafemoneyshow.com.

Social Security maximzation

COLA 2020

If you haven’t heard, the Social Security Administration announced recently that seniors would get a 1.6% raise for 2020. In 2019 the raise was 2.8%. The Social Security Administration bases the annual cost-of-living adjustment (COLA) on a broad measure of inflation. Prices for food and some other goods have risen moderately over the past year, while energy prices fell. Health care costs rose about 4% over the 12 months ending in September and insurance costs went up as well. 

There’s been talk of changing how the COLA is measured but, in the meantime, the little raise someone gets with Social Security this year will be offset by higher health care costs.

Medicare’s trustees projected in April that the standard monthly premium in 2020 for Medicare Part B, which covers doctor visits and other types of outpatient care, will increase by $8.80 a month to $144.30, from $135.50 which is the current amount. A final figure is expected yet this fall. 

 We’re now in Open Enrollment for Medicare so it’s a good time for you to examine your current plan and if you want to explore other plans now’s the time. You have until December 7^th. Call 320-679-5183 for an appointment.

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Here's what to expect for the October 19th Your Safe Money Show

Coming up on this weeks (October 19th) Your Safe Money Show.
We have a bit of a theme happening about health care: with Open enrollment for Medicare under way and Mn Sure open enrollment starting November 1st, I thought going over common health insurance terms would be helpful.
Also, insurers are cutting the cost of insulin in 2020, they’re putting caps in place, I have details on that.
And we’ll look at FSA’s versus HSA’s which is the best fit for you?
Tune in at 7:30 a.m. Saturday mornings at 95.5FM KBEK.
They stream live at kbek.com.
To hear recent shows go to the podcast page at yoursafemoneyshow.com. 

Medicare Open Enrollment

Medicare open enrollment runs from October 15^th through December 7^th. This is when Medicare plan enrollees can reevaluate their coverage, whether it’s Original Medicare, Medicare Advantage or a prescription drug plan through Medicare Part D.
To review:  Medicare Part A is hospital coverage. Part B is for medical coverage like doctor and clinical lab services, outpatient and preventive care, screenings, surgical fees and supplies, and physical and occupational therapy. Medicare Part C combines both A and B. Medicare Part C (also called Medicare Advantage) is a different way of getting Medicare Part A and Part B coverage. Medicare Part D is for prescription drug coverage. Seniors can choose among an average of over two dozen plans for their Medicare Part D prescription drug coverage, and each offers different prices and coverage. That’s why this open enrollment period is so important to compare plans. Call for an appointment with me today at 320-679-5183.

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Your Safe Money Show highlights for October 12th

Coming up on this week's, Saturday October 12th, Your Safe Money Show.
Divorce is always a tough deal for sure. But in retirement , there are different issues to be aware of. I will explain those details.
We’ve heard about “freezing” your credit, I’ll look at why you may want to freeze your credit and how to do so.
And what home renovations are worth the cost in retirement?
Listen at 7:30 a.m. at 95.5FM KBEK. They stream live at kbek.com.
Here's recent shows at the podcast page at yoursafemoneyshow.com.

What mix is right for you?

Optimists live longer than pessimists

Data from 230,000 men and women in the U.S., Europe, Israel and Australia over 14 years found that the subjects who described themselves as optimistic experienced 35% fewer major heart complications, such as stroke, heart attack and cardiac death, then those who didn’t. What’s more, these optimists were 14% less likely to have a premature death by any cause, including cardiovascular disease, cancer, dementia and diabetes.

Another study found that optimists tend to sleep better; they were 74% less likely to have insomnia and were also more likely to get a solid six to nine hours of shut-eye a night. And better sleep is linked to better overall health and a reduced risk of obesity and cardiovascular disease — which translates into a smaller chance of dying from heart disease or stroke.

Optimists are also more likely than pessimists to make smart money moves. Believe it or not, those looking on the bright side were more prepared for the worst, as 61% of optimists had started an emergency fund compared with less than half (43%) of pessimists. Optimists were also far more likely to save money for a major purchase, and they were more creative in finding ways to save money. 

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October 5th Your Safe Money Show highlights

On this week's, October 5th, Your Safe Money Show. Recent research has found that pessimists are 35% more likely to suffer from a heart attack or stroke than optimists. This was a huge study and I’ll share those details.
Here’s the question “Are you really ready to retire”? I’ll have steps to a happy retirement.
And more seniors are working than ever, is it because they want to work or have to work? Is Social Security enough to live on? We’ll examine working in our later years.
Tune in at 7:30 a.m. Saturdays at 95.5 FM KBEK. They stream live at kbek.com.
You can hear recent shows at the podcast page at yoursafemoneyshow.com.

DNA scam

2020 Census information

Older Americans have been more likely than other age group to return their U.S. census forms and make sure they were counted. The 2020 census wants to utilize computers and signing up online, and experts worry older folks might not want to do online sign up.

The Census Bureau has digitized the 2020 census to save money. The 2010 census, which cost $10.2 billion, was the most expensive in history. Taking the census online — at least partially — is projected to save an estimated $5.2 billion.

Between March 12 and 20, the majority of households will receive a postcard invitation to respond online to the 2020 census. Those who don’t answer will then receive the traditional paper form in the mail. If a household still does not respond, the bureau will send a census taker to knock on that door to collect the household’s data. People who live in areas that the bureau has determined are most likely to lack broadband internet service will receive a traditional paper form in the first mailing.

If you live in a low population rural area, it’s important you get counted. In 2016 alone, more than $30 billion was distributed to rural communities from 55 federal programs. These funds went toward things like home loans, business loans and waste disposal. But such funding comes only if you and your neighbors are counted.