October 31st Your Safe Money Show topics

 For our October 31st edition of Your Safe Money Show.

It's amazing what can hurt your credit score, I’ll tell you what NOT to do so you can keep or improve your score. We’ve talked about what the costs of Medicare can be but there are things covered for free too. I’ll go over that. And Unclaimed Money, we’ve touched on this before and it’s always a popular topic but there’s some new information to share this week.

Listen at 7:30 this Saturday morning at 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Social Security trivia

 Here's another piece of Social Security trivia.

What does FICA mean and why are Social Security taxes called FICA contributions?

A: Social Security payroll taxes are collected under authority of the Federal Insurance Contributions Act (FICA). The payroll taxes are sometimes even called "FICA taxes." In the original 1935 law the benefit provisions were in Title II of the Act and the taxing provisions were in a separate title, Title VIII. As part of the 1939 Amendments, the Title VIII taxing provisions were taken out of the Social Security Act and placed in the Internal Revenue Code. Since it wouldn't make any sense to call this new section of the Internal Revenue Code "Title VIII," it was renamed the "Federal Insurance Contributions Act." So FICA is nothing more than the tax provisions of the Social Security Act, as they appear in the Internal Revenue Code.

Costlier life insurance for men over 55 who smoke

 I saw this headline the other day and thought I better pass this along if you haven’t heard. Life insurance is getting costlier for men 55 and older who smoke. That demographic saw the biggest increases for life insurance policies from September to October, with average premiums rising between $6.12 and $12.56 a month. The prices are based on actuarial rate tables for 11 life insurance carriers. The article basically said that smokers and older folks face a higher risk with Covid, and that’s why rates increased. They also said that overall pricing hasn’t increased much for all demographics with the pandemic but they are “navigating” an unprecedented situation and time will tell. I am a former smoker, so there's no judgement here, but if you can stop smoking there's many benefits and better rates on insurance would be one of them. If you have questions go to the website yoursafemoneyshow.com.

Your Safe Money Show Inherited money quirks 10 24 2020

Your Safe Money Show highlights for October 24th

 Here's what we're working on for our Saturday October 24th Your Safe Money Show. Having a financial plan is so important and once you have that plan it needs to be reviewed. I'll explain how often you should have that review. When it comes to your IRA, Individual Retirement Account, there are things you need to know before making withdrawals. And we all have certain "quirks" when it comes to handling our money, I'll discuss how much our family and upbringing determine our good or bad money habits. Listen at 7:30 a.m. at 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Social Security history

 Here's a little Social Security history lesson.

Who was the first person to get Social Security benefits?

A: A fellow named Ernest Ackerman got a payment for 17 cents in January 1937. This was a one-time, lump-sum pay-out--which was the only form of benefits paid during the start-up period January 1937 through December 1939.

If Ernest Ackerman only received a single lump-sum payment, who was the first person to received ongoing monthly benefits?

A: A woman named Ida May Fuller , from Ludlow, Vermont was the first recipient of monthly Social Security benefits.

We have Your Guide to Retirement Benefits if you'd like your free copy go to yoursafemoneyshow.com.

COLA for Social Security 2021

 Seniors on Social Security will see their benefits increase by 1.3% come 2021. Well it’s better than no raise at all but, it's the lowest seniors have gotten in four years. To compare last year the COLA was 1.6% and that means on average if you are on Social Security you’ll get about $20 more. Now Part B premiums for Medicare will go up but hopefully not by too much. Thanks to Medicare's hold harmless provision, seniors who pay their Part B premiums directly out of their Social Security benefits can't see their benefits decrease due to Medicare increases. Or, to put it another way, a beneficiary who gets a $20 raise as a result of 2021's Social Security COLA can't be hit with more than a $20 monthly increase in Medicare premiums. Speaking of Medicare, Open enrollment is happening now until December 7th. Call for an appointment if you'd like help looking at your plan options. 320-679-5183.

Your Safe Money Show Costs of raising a child 10 17 2020

Highlights for October 17th Your Safe Money Show

 Here's what we have planned for the October 17th edition of Your Safe Money Show. I'll have health insurance terminology, so you’ll better understand the various terms especially during Open enrollment. I’ll also have you consider Social Security as a number, but I am not saying 62, 65 or your full retirement age, I’ll explain. Did you know there are some things you’ll spend more money on in retirement, I’ll tell you what those are. And how much does it cost to raise a child? Listen at 7:30 a.m. at 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Roth IRA contributions for 2020

 We have recent news on Roth IRA contribution limits for 2020, they will remain the same as in 2019. The maximum amount you can contribute to a Roth IRA for 2020 is $6,000 if you're younger than age 50. If you're age 50 and older, you can add an extra $1,000 per year in "catch-up" contributions, bringing the total contribution to $7,000.

The actual amount that you are allowed to contribute to a Roth IRA is based on your income. To be eligible to contribute the maximum for 2020, your modified adjusted gross income must be less than $124,000 if single or $196,000 if married and filing jointly. Contributions begin to be phased out above those amounts, and you can't put any money into a Roth IRA once your income reaches $139,000 if single or $206,000 if married and filing jointly. So, the Roth income limits are higher than they were for 2019.

If you have questions call 320-679-5183 or go to www.yoursafemoneyshow.com

Your Safe Money Show Appling for Social Security 10 10 2020

What to expect on Your Safe Money Show Saturday the 10th of October

 Coming up on Saturday's (10-10) Your Safe Money Show. The pandemic has more people doing estate planning like making a will, I’ll go into some detail on this. It’s become a real problem, being forced into an early retirement. I’ll have what to do next if this happens to you. And there are certain documents you need to have, to apply for Social Security benefits, I’ll have what those documents are. Listen at 7:30 a.m. at 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Social Security Guide

 What is the origin of the term "Social Security?"

A: The term was first used in the U.S. by Abraham Epstein in connection with his group, the American Association for Social Security. Originally, the Social Security Act of 1935 was named the Economic Security Act, but this title was changed during Congressional consideration of the bill.

If you have questions about taking your Social Security benefits ask for "Your Guide to Retirement Benefits" by going to our website yoursafemoneyshow.com.

Medicare Advantage compared to traditional Medicare

 I get many questions about the difference between Medicare Advantage plans and traditional Medicare. You can choose to sign up for traditional Medicare: Parts A, B and D, and a supplemental policy. Or, you can go an alternative route by signing up for Medicare Advantage, which provides medical and prescription drug coverage through private insurance companies. Also called Part C, Medicare Advantage has a monthly cost, in addition to the Part B premium, that varies depending on which plan you choose. With Medicare Advantage, you don't need to sign up for Part D or buy a supplemental policy. Like traditional Medicare, you'll also have co-payments, deductibles and other out-of-pocket costs. In many cases, Advantage policies charge lower premiums than supplemental plans but have higher cost-sharing. Your choice of providers may be more limited with Medicare Advantage than with traditional Medicare, and recent research has found that sicker enrollees often dump Medicare Advantage in favor of original Medicare. Open enrollment for Medicare starts October 15th and runs until December 7th. To make an appointment to get help looking over plans and the best options for you call 320-679-5183.

Your Safe Money Show Medicare Basics 10 3 2020

Your Safe Money Show topics for October 3rd

 As I pulled resources for the show this week, I realized that “snowbirds” are in a tough predicament these days deciding how to handle Covid, and if they can do what they did before, there’s a lot to figure out, so I have some insight on that. And as long as we're talking about travel, insurance companies are adapting to this “Covid” world we're living in and they are offering travel insurance that covers Covid. No matter how many times we discuss Medicare, laying the basics out is always helpful as we get ever closer to Open enrollment starting October 15th. Listen at 7:30 a.m. Saturdays at 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.