New Year's Day Your Safe Money Show highlights

 Coming up on our New Year's Day edition of Your Safe Money Show we'll look at financial New Year's resolutions for 2022. Also how do you build credit when you don't have any? And we'll look at the risks of "Buy now, Pay later" programs. Listen at 8 a.m. at Nice 95.5FM KBEK Saturday's. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Holiday schedule

 Everyone at Sjoberg & Holmstrom Financial Services and Your Safe Money Show wishes you a Merry Christmas and Happy New Year. We will not have a show this Saturday the 25th but we are sponsoring and hour of Christmas music at Nice 95.5FM KBEK at 8 a.m. We will be back with a show on January 1st. Thank you for listening and if you need to get ahold of us we will be monitoring messages at 320-679-5183. Otherwise we'll see you back in the office on January 3rd.

Scammers and charitable donations

 I wanted to touch on the devastating tornadoes that hit communities in Kentucky and five other states. My warning has to do with scammers taking advantage of people wanting to help. If you want to send money and make sure it gets to a legitimate organization, remember to check reviews on watchdog websites, such as Charity Navigator and the Better Business Bureau’s Wise Giving Alliance (Give.org). You can also check out GuideStar, which presents a snapshot, including balance-sheet data, program descriptions and links to financial documents. On GuideStar, charities are asked to answer five questions to assess their potential impact and five questions about board oversight and performance. Be wary of solicitations that come to you via email or text—some may be phishing scams or other types of fraud. If you see a contact number listed on a solicitation, check if it matches what’s on the charity’s website. You can also use the BBB’s scam tracker system to check out charities. Type in “charity” in the keyword search bar and you’ll see an index of the most recently reported scams via zip code. Really using these websites to make sure a charity is what it says it is, is a good idea anytime you want to make a donation to a worthy cause.

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Your Safe Money Show topics for December 18th

 For our December 18th Your Safe Money Show we'll discuss if you have an FSA, Flexible Spending Account, I have how to spend down your balance, so you don’t lose money. Also, how can you save money as consumer prices continue to rise, I’ll explain. And why is one drug responsible for half of the hike in Medicare Part B premiums, we’ll get into that as well. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Importance of planning

 Personal budget statistics from Gallup show that there are only around 1 in 3 of us who actually use some sort of household budget plan. Given the fact that we have so many expenses these days, it’s really important to come up with a budget.

Only 30% have a long-term financial plan that involves thinking about savings and investments for the future.

This is something you need to look at getting sorted as soon as you can. It will help you plan for the future. As we are moving toward a New Year feel free to call 320-679-5183 for a no cost, no obligation appointment about setting up a financial/retirement plan. You can also go to the website yoursafemoneyshow.com.

Larger standard deduction for those 65 and older

 Let’s face it when you’re on a fixed income, which you are when you’re in retirement, you need to take full advantage of every tax break you can. When you turn 65, the IRS offers you a gift in the form of a larger standard deduction. For example, a single 64-year-old taxpayer can claim a standard deduction of $12,550 on his or her 2021 tax return (it will be $12,950 for 2022 returns). But a single 65-year-old taxpayer will get a $14,250 standard deduction in 2021 ($14,700 in 2022). Couples in which one or both spouses are age 65 or older also get bigger standard deductions than younger taxpayers. If only one spouse is 65 or older, the extra amount for 2021 is $1,350 – $2,700 if both spouses are 65 or older ($1,400 and $2,800, respectively, for 2022). Be sure to take advantage of your age! Check with your tax person and don't miss out on this deduction. If you have questions call 320-679-5183 or go to yoursafemoneyshow.com.

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Saturday December 11th Your Safe Money Show topics

 Here's what we're working on for Saturday's (December 11th) Your Safe Money Show. I’ll have the most-overlooked tax breaks for retirees, and I think we all know what the “sandwich generation” is: where you are still helping your children and your parents need help too, how do you decide whose needs come first? We’ll get into that. Plus QCD’s (Qualified Charitable Contributions) are a great way to give yourself, and the charities you love, a gift this year. Listen at 8 a.m. to Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Good resources if you're missing a retirement account

 Here's some good information to keep handy.

You can use the resources of the internet to find a missing retirement account.

There are several websites you can search for unclaimed retirement benefits:

The Department of Labor's abandoned plan database.

The Pension Benefit Guaranty Corporation's trusteed plan search.

The National Registry of Unclaimed Retirement Benefits.

The National Association of Unclaimed Property Administrators operates unclaimed.org.

The Department of Labor's Form 5500 search.

Most states operate their own unclaimed property websites. Check your state's website for more information.

If you have questions go to yoursafemoneyshow.com.

Roth IRA withdrawals

 I get asked often about withdrawal rules for Roth IRA's. If you do decide to withdraw funds from your Roth IRA, there are rules to follow to avoid taxes and penalties. Because there's no tax deduction for Roth contributions, you can retrieve that money at any time free of taxes and penalties, regardless of age. But for earnings to be tax- and penalty-free, you have to pass a couple of tests. First, you must be 59 1/2 or older. You will get hit with a 10% early-withdrawal penalty and taxes if you take out earnings before you hit that age. And you must have had one Roth open for at least five years. If you want more information on Roth IRA's go to yoursafemoneyshow.com or call 320-679-5183.

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Highlights of December 4th Your Safe Money Show

 Coming up on this Saturday's (December 4th) Your Safe Money Show. Roth IRA’s are a great financial tool and I’ll have an overview of all the basics of Roth’s and how they can benefit you and your finances. Also, I’ll go over things that are “Free” with Medicare. And scammers are staying busy and putting their sights on retirees, I’ll have ways to protect yourself. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Medicare Open Enrollment deadline

 Just a quick reminder that Medicare Open enrollment ends December 7th. If you want to look at your plan or make any changes call for an appointment. 320-679-5183.

Social Security benefit dates

 A financial note for you today, if you receive Social Security benefits: In 2022, Social Security recipients will see their monthly checks grow by 5.9% But when exactly will you receive the first of those fatter checks?

As it turns out, it depends on your birth date — specifically, the number of the day on which you were born. For example, if your birthday was June 3, 1955, the important number to remember is “3.” Although the COLA kicks in for the entire program in January, your own first check that reflects the 2022 COLA will arrive on the following schedule:

If your birthday falls on days 1 through 10: You will receive your payments on the second Wednesday of each month, meaning you will receive your first payment with the 2022 COLA on Jan. 12. If your birthday falls on days 11 through 20: You will receive your payments on the third Wednesday, meaning you will receive your first 2022 payment on Jan. 19. If your birthday is on days 21 through 31: You will receive your payments on the fourth Wednesday, meaning you will receive your first 2022 payment on Jan. 26. There are a couple of exceptions to this rule, however. If you started receiving Social Security benefits prior to May 1997, or you receive both Social Security and Supplemental Security Income (SSI) benefits, you will receive your Social Security payment on the third of each month.

If you have questions call 320-679-5183.

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Highlights for November 27th Your Safe Money Show

 Coming up on our Saturday November 27th Your Safe Money Show. I'll be talking about how to handy holiday travel and what to do if you lose your wallet. Also I have end of the year ideas if you're near retirement or in retirement, when it comes to minimizing your taxes. Tune in at 8 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Happy Thanksgiving!

 Sjoberg & Holmstrom Financial Services and Your Safe Money Show want to wish you a Happy Thanksgiving! We will be closed Thursday and Friday the 25th and 26th. You can leave a message and we'll get back to you on Monday the 29th.

Social Security question

 I’ve been answering questions about Social Security lately and here’s another: Are Social Security numbers reused after a person dies?

No. They do not reassign a Social Security number (SSN) after the number holder's death. Even though they have issued over 453 million SSNs so far, and they assign about 5 and one-half million new numbers a year, the current numbering system will provide them with enough new numbers for several generations into the future with no changes in the numbering system.

We have "Your Guide to Social Security", if you'd like your free copy stop by our office at 139 Union Street, Mora, or call 320-679-5183 and we'll mail it to you.

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Your Safe Money Show topics for November 20th

 Here's what we're working on for this weeks (November 20th) Your Safe Money Show. This week you may have seen in the news that the cost for Medicare Part B went up 14.5%, I will go into detail about that cost increase. Also, when your health insurer won’t pay a claim what should you do, I have ways to get that decision reversed. And understanding Social Security benefits before you pull the plug is so important, we’ll go over that too. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Social Security numbers

 I’ve had more than one person ask me about Social Security numbers and this comes right from the Social Security site ssa.gov. Is there any significance to the numbers assigned in the Social Security Number?

The answer is Yes. Originally, the first three digits are assigned by the geographical region in which the person was residing at the time he or she obtained a number. Generally, numbers were assigned beginning in the northeast and moving westward. So people on the east coast have the lowest numbers and those on the west coast have the highest numbers. The remaining six digits in the number are more or less randomly assigned and were organized to facilitate the early manual bookkeeping operations associated with the creation of Social Security in the 1930s.

Beginning on June 25, 2011, the SSA implemented a new assignment methodology for Social Security Numbers. The project is a forward-looking initiative of the Social Security Administration (SSA) to help protect the integrity of the Social Security number (SSN) by establishing a new randomized assignment methodology. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.

Protecting your Social Security number is key in a world where identity theft is a huge problem. Remember to Leave Your Card at Home. Shred Mail and Documents with Personal Details. Don't Use Your SSN as a Password. Don't Send Your SSN via an Electronic Device Don't Give It out to Strangers.

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Closed on Veteran's Day

 Sjoberg & Holmstrom Financial Services and Your Safe Money Show would like to thank all our veterans for their service. Just a note our office will be closed for Veterans Day. You can leave a voice message at 320-679-5183 and we will get back to you Friday morning when we open at 8.

Yet another scam to be aware of

 I wanted to warn you this morning, unfortunately, of another new scam targeting people who post on Facebook or Craigslist. Whether you’re trying to sell things or find a lost pet, scammers are trying to get your information. The scammers contact you and say they want to buy the item you’re selling — or that they found your pet. But before they commit to buying your item, or returning your pet, they hesitate. They might say they’ve heard about fake online listings and want to verify that you’re a real person. Or they might say they want to verify that you’re the pet’s true owner.”

At that point, the fraudster sends you a text message with a Google Voice verification code, asking you to give them the code. Once you do so, the crook uses the code to create a Google Voice number linked to your phone number.

The scammer can use the number to conceal his or her identity while ripping off others. Or scammers may try to get other information about you, so they can tap into your accounts or create accounts in your name. The FTC urges you never to share any verification code — including one from Google Voice — with anyone you have not contacted first. If you have already fallen victim to the scam, the FTC says you can go to Google and follow the steps to reclaim your number.

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November 6th Your Safe Money Show topics

 Your Safe Money Show is heard at Nice 95.5 FM KBEK Saturday's at 8 a.m. On this weeks show (November 6th) we'll look at minimizing taxes when you inherit money. Also, it’s so important that someone knows where your money is, in case something happens to you. I’ll go into detail about that. And I’ll have the best money moves for November 2021. If you can't listen live go to our website yoursafemoneyshow.com to the podcast page and hear recent shows there.

MnSure information

 MnSure open enrollment is underway and runs to December 15th if you want your insurance to start or continue January 1st. Otherwise open enrollment for MnSure continues to January 15th but will then start on February 1st. Call 320-679-5183 if you want help with your health insurance. Sjoberg & Holmstrom Financial Services is located at 139 Union Street in Mora. For more information go to yoursafemoneyshow.com.

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Your Safe Money Show topics for October 30th

Coming up for this Saturday's (October 30) Your Safe Money Show. I’ll look at mistakes you want to avoid with Medicare. Also, we hear about supply chain issues causing holiday shortages. We'll go over that. And if you have gold jewelry and coins you’d like to sell, I'll explain how to avoid being scammed. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

MNsure dates

 A reminder that MnSure Open Enrollment starts November 1st and runs until December 15th if you want your insurance to start January 1st. Enrollment continues through January 15th 2022, however your insurance wouldn't start until February 1st. Call for an appointment at 320-679-5183 at Sjoberg & Holmstrom Financial Services in Mora.

Social Security Myth

 I have another Myth or misinformation today from Social Security for you. The question is: Which political party increased the taxes on Social Security annuities? In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to "higher income" beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income. This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993. If you want to read more go to ssa.gov. To get a free copy of Your Guide to Social Security call 855-22money or ask at yoursafemoneyshow.com.

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Your Safe Money Show bullet points for October 23rd

 Coming up on this weeks (10-23-21) Your Safe Money Show. There are several changes for 2022 when it comes to Social Security, these changes were just announced last week so I’ll go over those. Plus, I’ll have things you should NOT do in retirement. And if you are considering refinancing your mortgage, I have what you need to do now. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Longevity numbers

 According to a global survey there are now around 575,000 100-year-olds on the planet- and that number should hit 600,000 next year. The U.S. has the highest number of centenarians in the world with 97,000 living in the country. Japan comes in second with 79,000 who are 100 years or older. Obviously we're living longer which is a great thing but it's extra important to have a solid retirement plan. Ideally a plan that has lifetime income over and above your Social Security benefits. To find out more go to yoursafemoneyshow.com or call for an appointment at 320-679-5183.

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Highlights for October 16th Your Safe Money Show

 We have a lot to cover on this Saturday's (October 16th) edition of Your Safe Money Show. No one ever wants to get audited by the IRS. I will have "red flags" to watch out for especially if you're a retiree. Also robots are hiding 27 million workers from employers who need them. I'll explain what that's all about. I hope you can listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Medicare Open enrollment

 If you would like help during Open Enrollment for Medicare call 320-679-5183 for an appointment. Open Enrollment runs from October 15th through December 7th. This is a great time to take a look at your current plan and if you need to make changes or to see what is available. Make sure you bring your medication list when you come for an appointment so we can find you the best plan that covers those drugs. If you are happy with your plan you don't have to do anything and your plan will just continue. Again call 320-679-5183 or go to yoursafemoneyshow.com.

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Your Safe Money Show highlights for October 9th

 For this weeks (October 9) Your Safe Money Show. We'll be covering Medicare, open enrollment is coming so this is timely information. And we'll also look at forces that shape retirement in the 2020’s and trust me things have changed quite a bit. Tune in at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Your Safe Money Show replayed at 7 p.m. tonight October 6th

 You can listen to our Saturday October 2nd Your Safe Money Show on Nice 95.5FM tonight (October 6th) at 7 p.m. You can grab the show also at our podcast page at yoursafemoneyshow.com. KBEK streams live at kbek.com.

Voted Best Financial Planner by readers of The Scotsman

 

Reprise of October 2nd Show on KBEK October 6th

 Our October 2nd edition of Your Safe Money Show will air at 7 p.m. Wednesday October 6th at Nice 95.5 FM. They stream live at kbek.com. Go to yoursafemoneyshow.com at the podcast page to hear the show at your convenience.

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October 2 Your Safe Money Show topics

 We're looking forward to our next installment of Your Safe Money Show this Saturday October 2 at 8 a.m. on Nice 95.5 FM KBEK. I want to look at smart ways to gift money to your children. I’ll also have tips before you sign up for health insurance at work. And we’ll look inside the psychology of overspending and how to stop overspending. KBEK streams live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Standard deduction

 Here's a reminder for the 2021 tax year:

The standard deduction amounts were increased for 2021 to account for inflation. Married couples get $25,100 ($24,800 for 2020), plus $1,350 for each spouse age 65 or older ($1,300 for 2020). Singles can claim a $12,550 standard deduction ($12,400 for 2020) — $14,250 if they're at least 65 years old ($14,050 for 2020). Head-of-household filers get $18,800 for their standard deduction ($18,650 for 2020), plus an additional $1,700 once they reach age 65. Blind people can tack on an extra $1,350 to their standard deduction ($1,700 if they're unmarried and not a surviving spouse).

If you have questions go to yoursafemoneyshow.com.

Medicare signup explained

 When to signup for Medicare:

If you are already taking Social Security benefits, you will be automatically enrolled in Parts A and B. You can choose to turn down Part B, since it has a monthly cost; if you keep it, the cost will be deducted from Social Security if you already claimed benefits. For those who have not started Social Security, you will have to sign yourself up for Parts A and B. The seven-month initial enrollment period begins three months before the month you turn 65 and ends three months after your birthday month. To ensure coverage starts by the time you turn 65, sign up in the first three months.

If you are still working and have health insurance through your employer (or if you’re covered by your working spouse’s employer coverage), you may be able to delay signing up for Medicare. But you will need to follow the rules and must sign up for Medicare within eight months of losing your employer’s coverage to avoid significant penalties when you do eventually enroll.

If you have questions call 320-679-5183 and get a no cost appointment, and remember Open enrollment for Medicare starts

October 15th and runs through December 7th.

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Highlights for September 25th Your Safe Money Show

 Coming up on our (Saturday) September 25th edition of Your Safe Money Show. If you are leaving an asset as inheritance, there are some assets that can create more trouble than they’re worth, I’ll explain that. Plus, I have the downside of delaying RMD’s (Required Minimum Distributions). And we’ll look at the financial perks of growing older. Listen at 8 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Open enrollment schedule

 Open enrollment for Medicare starts October 15th and runs through December 7th. MnSure open enrollment starts November 1st and runs until December 15th if you need your insurance to start January 1st. Enrollment continues until January 15th but insurance won't start until February 1st. Call for your appointment at 320-679-5183.

Dispelling misconceptions with Social Security

 OK let’s continue this week with dispelling the misconceptions when it comes to Social Security. Again, we are getting this information right from ssa.gov. We have two questions and answers this week: First: Which political party eliminated the income tax deduction for Social Security (FICA) withholding? The answer: There was never any provision of law making the Social Security taxes paid by employee’s deductible for income tax purposes. In fact, the 1935 law expressly forbid this idea, in Section 803 of Title VIII. Next question: Which political party started taxing Social Security annuities? The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote. The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer's total income exceeded certain thresholds. The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve). If you want to get into more details about this, go to ssa.gov they have links and you can download the full text of the Greenspan report and the provisions of the 1983 law.

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Your Safe Money Show topics for September 18th

 Here is what we're working on for this Saturday's (September 18th) Your Safe Money Show. We have just two topics this week to discuss and that’s because the one topic will take up extra time and that’s "questions retirees often get wrong when it comes to taxes in retirement". And what is a notarized document and where can I get something notarized? Please listen at 8 a.m. Saturday's at Nice 95.5 FM KBEK, They stream live at kbek.com. Hear recent shows by going to the podcast page at yoursafemoneyshow.com.

Where to find unclaimed money

 Here's some good information to know: If you believe you have unclaimed money left in a bank account long ago, check out MissingMoney.com or Unclaimed.org, which are both operated by the National Association of Unclaimed Property Administrators. If you used to belong to a credit union, you may want to consult www.ncua.gov/support-services/unclaimed-deposits, a site managed by the National Credit Union Administration, where you may find an unclaimed deposit.

Questions for Social Security

 

We all know there’s misinformation circulating these days and Social Security is no stranger to these myths and falsehoods so in the next couple weeks I’ll share what’s available right from ssa.gov and clear up some of these misconceptions. Question: Which political party took Social Security from the independent trust fund and put it into the general fund so that Congress could spend it?

Answer: There has never been any change in the way the Social Security program is financed or the way that Social Security payroll taxes are used by the federal government. The Social Security Trust Fund was created in 1939 as part of the Amendments enacted in that year. From its inception, the Trust Fund has always worked the same way. The Social Security Trust Fund has never been "put into the general fund of the government." Most likely this question comes from a confusion between the financing of the Social Security program and the way the Social Security Trust Fund is treated in federal budget accounting. Starting in 1969 (due to action by the Johnson Administration in 1968) the transactions to the Trust Fund were included in what is known as the "unified budget." This means that every function of the federal government is included in a single budget. This is sometimes described by saying that the Social Security Trust Funds are "on-budget." This budget treatment of the Social Security Trust Fund continued until 1990 when the Trust Funds were again taken "off-budget." This means only that they are shown as a separate account in the federal budget. But whether the Trust Funds are "on-budget" or "off-budget" is primarily a question of accounting practices--it has no effect on the actual operations of the Trust Fund itself.