Stimulus check update

 I’ve been getting questions on the stimulus checks and here’s recent information: The Internal Revenue Service and U.S. Treasury said Monday the 22nd that the next batch of Economic Impact Payments were being issued with many coming as paper checks or prepaid debit cards. More direct deposits began last week, and March 24th more direct deposits went out. The IRS also said that additional payments are expected to be released on a weekly basis going forward. If your first two stimulus checks came as paper checks, it is possible you will get a direct deposit this time. The IRS and the Bureau of the Fiscal Service leveraged data in their systems to convert many payments to direct deposits that otherwise would have been sent as paper checks or debit cards.

To find out the status of your stimulus payment you can go to IRS.gov and click on the “Get My Payment” tool. To use it, you'll need to enter your full Social Security number or tax ID number, date of birth, street address and ZIP code. For those who are eligible, the tool will show a "Payment Status" of when the payment has been issued and the payment date for direct deposit or mail. Before you start entering your information hourly, the IRS says the tool “updates once per day, usually overnight” and that people should not call the IRS. Not everyone who is eligible will have a payment date under "Payment Status" when they log in initially. According to the agency, the tool will be updated when the payment date is known.

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Highlights for March 27th Your Safe Money Show

 Coming up on our Saturday March 27th Your Safe Money Show, many of us have an annual checkup when it comes to our health, and I think your finances, especially when you’re retired, need an annual checkup too. I’ll go over that. Another absolute key to a great retirement plan is creating a budget, I’ll have how you set that up. And what an interesting tax year we have, if you need to amend a return, get an extension, whatever the case may be, make sure you file your taxes. I’ll explain, what I mean by that.

Tune in at 8 a.m. at Nice 95.5 KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

MNsure special enrollment period and more:

 The annual enrollment period for 2021 private coverage ended December 22, but you may be eligible to enroll outside the annual open enrollment period:

Income changed? You may have new coverage options through MNsure.

Uninsured or not currently enrolled in a plan through MNsure? A COVID-19 special enrollment period is open February 16 through May 17.

Lost or losing health insurance? You may be eligible for a 60-day special enrollment period. This special enrollment period is available year-round to qualifying individuals.

Other qualifying life events—like having a baby, turning 26, or moving—may qualify for a special enrollment period.

If you qualify for Medical Assistance or MinnesotaCare or are a member of a federally recognized American Indian tribe, you can enroll any time of year.

If you have questions call 320-679 5183.

American Rescue Plan expanded benefits

 I wanted to share some good news with the American Rescue Plan, when it comes to expanding benefits available through Mnsure. This includes an increase in the amount of tax credits Mnsure enrollees receive to help them pay for their premiums and an expansion of tax credits to middle-income Minnesotans, who previously fell outside income thresholds for financial help. This increase in benefits means Minnesotans who purchase health insurance through Mnsure will be able to find a plan with premiums that cost no more than 8.5% of their household income. Right now, depending on what plan you have and what your gross income is, you could be paying 12 to 18% of your income for your premium. These expanded tax credits will not be advanceable until later this year. This means, enrollees will not immediately see any additional savings on their monthly premiums but can reconcile the savings when they file their taxes next year. Current Mnsure enrollees will be eligible for a full year of savings, retroactive to their first month of coverage in 2021. So, you get the money back at tax time next year and your coverage for next year will have the enhanced savings available in advance for the entire 2022 coverage year. The change covers calendar years 2021 and 2022. If you have questions call 320-679-5183 or go to yoursafemoneyshow.com.

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Your Safe Money Show topics for March 20th show

 Here's what we're planning for our March 20th edition of Your Safe Money show. We’ll look at which states have the longest life expectancies. Why you should make Roth IRA conversions earlier in retirement. And I will clear up misinformation with the newest stimulus checks. Listen at 8 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Stimulus checks

 While some Americans got their stimulus payments over the weekend, tens of millions are set to receive their payments on Wednesday, March 17, due to instructions from the Internal Revenue Service. "The IRS recently sent an initial wave of tens of millions of economic impact payments via the Automated Clearing House (ACH) system," according to a statement issued by nine banking and credit union industry groups. "The actual funds will be sent to the banks and credit unions on March 17, at which time funds will be made available to customers." Around 158.5 million households are expected to receive a payment under the new stimulus deal, according to the White House. This round of stimulus checks is $1,400 per eligible individual plus a $1,400 bonus per dependent. If you have no direct deposit information on file or if the account provided is now closed, the IRS will mail you a check or pre-paid debit card instead. The IRS has yet to announce the schedule for mailing payments. Americans can now check the status of their third stimulus check using the Internal Revenue Service’s online tracking tool ‘Get My Payment.’ If you received no payment and you think you’re eligible or you got the wrong amount, you’ll be able to claim it on your 2021 tax return. Go to irs.gov.

Wallethub study shows great strides in paying off debt

 I saw some great news this week, according to a credit card debt study done by Wallethub, altogether, Americans repaid a record $83 billion in credit card debt during 2020. That marks only “the second time in the past 35 years we’ve ended the year owing less credit card debt than we started with. There’s several reasons credit card debt has fallen, many folks took advantage of refinancing with low interest rates right now. With the virus people weren’t doing much and they were saving. Plus, Federal relief, such as stimulus checks, expanded unemployment benefits and an extended pause in loan repayments, have even given some a chance to catch up on past-due payments. Many experts predict there could be a surge in consumer spending once more people are vaccinated and Covid-related restrictions are lifted, which could undo some of the recent progress made toward paying down debt. WalletHub is projecting that consumers will add around $50 billion in credit card debt in 2021 alone. Check out our website yoursafemoneyshow.com.

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Your Safe Money Show highlights for March 13th

 For this Saturday's edition (March 13th) of Your Safe Money Show I’ll try to answer the question “can we keep Medicare from becoming insolvent by 2024? Also, I’ll explain what you can do to maximize your Social Security benefits. And I’ll have reasons why you should consider buying renters insurance. Tune in at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Legacy Planning

 

Updated stimulus information

 Here's the news on the stimulus bill.

Quick note on the process: The House originally passed the stimulus bill, then the Senate tweaked it and passed its own version this weekend. Now, the House will vote on the Senate version (likely today) before it heads to Biden’s desk for his signature.

What’s inside the bill?

• $1,400 stimulus checks: Individuals earning up to $75,000 and couples making up to $150,000 qualify for the entire amount. It phases out at $80k for individuals and $160k for couples.

• More unemployment benefits: The government is tacking on $300/week to existing benefits through early September.

• Child tax credit: The bill expands the child tax credit from $2,000 per child to $3,000.

• Other highlights: $160 billion for vaccine and Covid testing programs, $360 billion for state, local, and territorial governments, and $170 billion for school reopening efforts.

Your Safe Money Show How errors on credit reports hurt your finances 3 6 21

Highlights for March 6th Your Safe Money Show

 Here's what's on the docket for our Saturday March 6th Your Safe Money Show. There are a record number of consumer complaints about credit bureaus and I’ll explain what’s happening and how it’s affecting personal finances. Also, I’ll have things you’ll spend more on in retirement and things you’ll spend less on in retirement. Tune in at 8 a.m. at Nice 95.5 KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Generational vault

 

Raising your credit score fast

 If you’re planning to borrow money for a car, home, or other big purchase, the better your credit score the better deal you’ll get on interest rates. So understanding how to raise your credit score fast, can be especially helpful in these situations. There are five components that make up your credit score, the biggest is payment history, and has to do with paying on time. Next is the length of credit history, mix of credit you have, and the amount of new credit you have. All these components take time to develop. Which brings us to the final component: Credit utilization ratio, or how much money you owe compared to your total available credit. As a rule of thumb, you never want your credit utilization ratio to go over 30%—if you have one credit card with a $10,000 limit, and you owe $1,000 on it, your credit utilization ratio is 10%—but if your goal is to quickly raise your score, try to get that number down as low as you can. It’s hard to say exactly how much the change will impact your individual score, but in general, the more debt you pay off the better.

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