Hours for the holidays

 Sjoberg & Holmstrom Financial Services is closed for the holidays. We will reopen on January 4th at 8 a.m. You can leave a message at 320-679-5183, we are monitoring those messages.

Your Safe Money Show Good debt Bad debt 12 26 2020

Your Safe Money Show topics for December 26th

 Coming up on this Saturday's (December 26th) Your Safe Money Show, we’re going to look at good debt and bad debt, yes there is a difference. Also, if you’re cohabitating (living together) and not married, there are things to be aware of especially with money matters. And if you start to see memory issues with your parents, I’ll have ways to help them with their finances.

Listen at 7:30 a.m. at Nice 95.5 KBEK. They stream live at kbek.com.

Here recent shows at the podcast page at yoursafemoneyshow.com.

Stimulus

 Well the big news this week, Congressional leaders on Monday the 21st, announced they'd agreed on a second round of stimulus to help the ailing U.S. economy. What’s in the ~$900 billion goodie bag: Direct payments. Those who made under $75,000 in the 2019 tax year will receive checks for $600, plus $600 per child. There’ll be added unemployment benefits of $300 per person, however the $300 supplement could face delays for at least three weeks, or a maximum of six to eight weeks in some states Why? Because of difficulties in programming new benefits into computer systems during the holidays. Some state programs don’t have the resources and technology needed to add programs instantly. The takeaway for unemployed Americans is that they may have to wait through part of January to get access to benefits that stopped at the end of December. Benefits are typically restored beginning the date of enactment, so there shouldn’t be a gap in someone’s eligibility, just a gap in when they will get paid. There’ll be $300 billion for the Paycheck Protection Program, which supports small businesses. A $15 billion injection to help airlines rehire over 32,000 workers who were furloughed in October, plus more for airports and air travel-related industries. Amtrak will receive $1 billion, and public transit systems will nab $14 billion. $25 billion for rental assistance, plus an extension to the federal eviction moratorium.

Your Safe Money Show Retirement rule changes 2020

Highlights for Saturday December 19th Your Safe Money Show

 Your Safe Money Show topics for Saturday December 19th. If you are a “snowbird” I have a checklist when it comes to your insurance. We’ll look at retirement rule changes in 2020 and how they affect you. And how do you open a Roth IRA? I’ll go over that, so you understand the steps involved. Listen at 7:30 a.m. at Nice 95 5 KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Will your income last?

 

How to handle inheritance

 I have been reading that economists figure that baby boomers have $30 to $48 trillion in personal assets that they will pass down over the next 25 years or so. Some say it will be the greatest wealth transfer in history. I have some ideas if you think you might receive an inheritance or if you are the one leaving money to family.

First: even if Mom and Dad have told you that you’ll be getting money or some other asset, the best thing you can do is “expect nothing”. Things can happen down the road and their wealth can be depleted. By not counting on anything you’ll be happier and more self-sufficient. Then if you do get something it’s a bonus not something you were counting on.

Once the terms of the inheritance are disclosed, if things didn’t turn out the way you hoped, move on. Complaining can make you look small to others and to yourself.

Spouses can make these situations better or worse. If the death is in your spouse’s family, be supportive but stay out of it. Learn from the experience and possibly do things differently for when the time comes for you to make these decisions.

Your Safe Money Show Pay mortgage or invest in retirement 12 12 20

Your Safe Money Show topics for December 12th

 This is what we're planning for our December 12th Your Safe Money Show. If you have a mortgage do you pay that off or invest for retirement? It’s a big decision and I’ll break that down for you. Also, I’ll explain, how if you were born in 1960 your Social Security benefits could be taking a hit. And should you roll over an IRA to an HSA? There’s some interesting tax benefits to this.

Listen at 7:30 a.m. on Saturday mornings at Nice 95.5 FM KBEK. They stream live at kbek.com.

You can hear recent shows at the podcast page at yoursafemoneyshow.com.

MnSure Open Enrollment deadline is December 22

 Now that Open Enrollment for Medicare has finished up, we need to talk about MnSure Open Enrollment. You have until December 22nd to update or change your plan to be ready for January 1st coverage. If you have questions or want an appointment call 320-679-5183.

Debit versus Credit Cards

 I had a question this week about debit cards and credit cards which is better? Like most things there’s pros and cons for both. Here’s some basic information. If your debit card is stolen or used without permission, it falls under the Electronic Fund Transfer Act. If you tell your bank before any charges are made, you won’t lose anything. If you tell them within two business days, the most you’ll lose is $50. If you tell them after the two-day mark but within 60 days of getting your statement, your maximum liability is $500.But if you tell your bank after that 60-day point, there’s no limit to how much you can lose. Now if your credit card is stolen or used without permission, it falls under the Fair Credit Billing Act. If you tell the company before any charges are made, you’re not liable for anything. If you tell them afterward, the most you can lose is $50, and it probably won’t even be that. That’s because the four major card companies — American Express, Mastercard, Visa and Discover — all have $0 fraud liability policies. A credit expert says with debit cards, that’s your money that was stolen. With credit cards, that was the bank’s money that was stolen. When you use your debit card at the grocery store for example that money comes out of your account right away. With a credit card there’s a wait as the charge goes through the company like Visa ect. Other things to consider, a credit card builds credit if handled properly, where a debit card does nothing with your credit score. Alright I hope that clears up some of the confusion around credit and debit cards.

Your Safe Money Show Overcoming Fear in Retirement 12 5 2020

December 5th Your Safe Money Show highlights

 Coming up on Saturday (December 5th) Your Safe Money Show. I have some steps for you to follow so you can gain control of your retirement. Now more than ever there’s fear when it comes to your finances in retirement, I’ll have how to overcome those fears. And the pandemic is reshaping life insurance for the better, I’ll tell you how that’s happening. Listen at 7:30 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com. To hear recent shows go to our podcast page at yoursafemoneyshow.com.

Medicare Open enrollment

 Medicare Open Enrollment ends December 7th. If you'd like an appointment to get help with choices available call 320-679-5183.

Earned income tax credit

 

Today I wanted to talk about the Earned Income Tax Credit. It's geared toward working people with low to moderate incomes, and for some families, it can offer as much as $6,728 in cold hard cash. For whatever reason folks aren’t claiming this, so I’ll share what you need to do to claim in 2021. The most important aspect of the earned income tax credit is that it's a refundable tax credit. With most tax credits, if you don't owe taxes, then the credit ends up going unused. But as a refundable tax credit, the EITC is different. If you don't need to use your EITC to reduce your tax bill, then the IRS will actually cut you a check for the unused portion. That's unusual among tax credits, and it effectively makes the EITC a way that the federal government can get money to those who need it most – and have earned their right to receive it. To get the earned income tax credit, you have to meet several requirements. The most important one is that you need to have earned income from work, whether it's a traditional job or a side gig. If you run your own business, your net income also counts as earned income for EITC purposes. However, things like investment income, pensions, Social Security, or unemployment benefits don't count as earned income. There’re income limits and filing status and how many children that qualify, so you’d need to check on these criteria to see if you meet them. To claim your earned income tax credit, you have to file a federal tax return. That's the case even if your income is low enough that you ordinarily wouldn't be required to file. You can go to the IRS. gov website and they have all the information there or ask your tax person. Don’t leave this money on the table. There’s close to 30 million people who qualify and close to 6 million don’t claim this credit.