Saturday May 1st Your Safe Money Show topics

 We're talking about several topics on our Saturday May 1st segment of Your Safe Money Show. There are ways to take advantage of your life insurance policy's cash value, I’ll explain. If you are offered an early retirement, I have what you need to consider before you take that offer. And if you used the Cares Act opportunity to withdraw money from a retirement account with penalties waived, you can still be taxed on those accounts, I’ll tell you how to avoid taxes on those withdrawals. Tune in at 8 a.m. at Nice 95.5 FM or go to kbek.com, they stream live. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Cybercriminals

 Cybercriminals today are “looking for any possible route into people’s financial transactions, and they are increasingly focusing their efforts outside financial institutions’ firewalls. So how do they gain your information? Spear phishing is where cyber bandits send emails supposedly from a trusted sender hoping the potential victim will reveal confidential financial information. A cyber security expert says when crooks gain entry to consumer bank and retirement accounts, the point of entry more often than not is the victim’s email account. Oftentimes, people’s account passwords, obtained in data breaches and then sold on the “dark web” to cybercriminals, are used to break into an email account and take it over without the victim knowing it. How do you protect yourself? Make sure any computer or device used to access accounts is protected by a firewall and has current antivirus and antispyware software. Be wary of responding to, opening attachments in or clicking on links in emails that ask for your financial information. Open and read any letters or paper statements from your mutual fund or money manager to see if everything looks accurate and notify them promptly if it appears unauthorized activity has taken place. Good sources for you to check out online there’s ftc.gov/scams that’s the Federal trade Commission site. You can also go to aarp.org/fraudwatchnetwork.

Problems at the IRS

 You've heard the old adage "Patience is a virtue" right? Well the IRS might need your patience if you're waiting for your tax refund. The agency is dealing with a filing season like no other. Between the stimulus checks, adding an exemption to the tax code of the first $10,200 for 2020 unemployment benefits from federal tax and new tax credits for employers. Plus a backlog of still unprocessed 2019 paper tax returns, and more I don't have time to mention, it's a mess at the IRS for sure. To give you an idea of what they're up against, there are 29 million returns the IRS is now holding for some sort of manual processing. If you're wondering "why not hire more help"? The agency planned to hire an additional 5,000 customer phone representatives to help but so far they've only been able to hire 3,800 new employees due to low numbers of applications and delays in fingerprinting because facilities are closed during the pandemic. If you have a question or are still planning to file with the May 17th extension, just know things are backed up at the IRS and again patience is a virtue.

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Saturday April 24th Your Safe Money Show topics

 Here's the planned topics for this Saturday's (April 24th) edition of Your Safe Money Show. Divorce is always a tough deal for sure. But in retirement they use the word “Gray” divorce. There are different issues to be aware of, so I’ll share that with you. Life insurance can fit so many financial needs and I’ll explain why life insurance in your 50’s and 60’s might be a good idea. And couples and money. This topic is timeless. Over the years some things have changed with this but some not so much. Tune in at 8 a.m. at Nice 95.5 KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Early retirement packages

 During economic downturns, some companies offer early retirement packages to reduce their number of paid employees. If your employer asks you to consider stepping away now, the decision is not one to make lightly. First look at the details of the package: Start by checking if severance pay is included. next, consider your health insurance needs: If you are 65 or older, you are probably eligible for Medicare. If you are younger than 65, you'll want to find out if health insurance benefits are part of the retirement package. If you need to purchase health insurance yourself, look at the costs associated with this option. Next understand the consequences of not accepting the offer: Companies trying to reduce their labor force may be in a difficult financial situation. In this case, turning down an offer now could lead to a future dismissal with fewer benefits. Factor in Social Security benefits: If you are able to start receiving Social Security payments, it's worthwhile to consider the implications of doing so. Look at your financial situation: Consider how early retirement would affect your retirement finances. Is early retirement the best choice for you? Think about the lifestyle you will have if you retire now. For more information go to yoursafemoneyshow.com or call 320-679-5183.

Social Security benefit payments schedule

 We talk here often about Social Security because it’s such a huge part of everyone’s retirement but I am not sure if we’ve mentioned when during the month you get your check. Social Security checks are normally paid on the second, third and fourth Wednesdays of each month. The exact arrival date for Social Security checks depends on the person’s birthday. If you were born: On the 1st through the 10th: Expect a check to be paid on the second Wednesday of the month. On the 11th through the 20th: Expect a check to be paid on the third Wednesday of the month. On the 21st through the 31st: Expect a check to be paid on the fourth Wednesday of the month. There is a slight change for holidays. If the payment date falls on a public holiday, the payment will instead be made on the Tuesday just before the originally scheduled date. You can view the schedule for payments during 2021 at ssa.gov. Social Security checks are no longer mailed to most beneficiaries. You can receive your payment through two ways: Direct deposit. You can choose to have the Social Security check deposited directly into your bank or credit union account. Direct Express debit card. You can have the Social Security check loaded onto a debit card through the Direct Express card program. You don’t need a bank account for this setup. The card works for making purchases, paying bills or getting cash. However, there may be fees associated with some transactions.

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IRA contributions

 Remember that you have until May 17th to file your taxes and to contribute to an existing IRA or to open a new one. If you want to drop your taxable income this is a great way to do it. For 2021 taxes you can contribute up to $6,000 under age 50, if your 50 or older you can contribute $7,000. Call 320-679-5183 if you want more information on IRA contributions.

Correcting Social Security earnings report

 I have a reminder about correcting your Social Security earnings record. Your Social Security earnings record lists all the earnings under your name and Social Security number that have been reported to the Social Security Administration. This earnings record will eventually be used to calculate your Social Security payments. You can find your Social Security earnings report broken down by year on your annual Social Security statement. It's important to periodically review your Social Security earnings information because missing earnings can result in lower Social Security payments. The Social Security Administration no longer mails paper Social Security statements to anyone under age 60. But workers who are age 18 or older can view their statement online by creating a my Social Security account. You can check these earnings against your tax returns or W-2 forms to make sure they were recorded correctly. If you find an error, you’ll need documentation to clarify, usually you can use a W-2, your tax return or a pay stub. Once you have collected appropriate documentation, call the Social Security Administration at 1-800-772-1213. They will explain what you need to do as far as mailing or faxing the needed information.

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Listen Saturdays at Nice 95.5 at 8 a.m. for Your Safe money Show

 Here's what we're working on for our April 10th (Saturday) edition of Your Safe Money Show. 1 in 4 Americans have no retirement savings and those that do aren’t saving enough, I’ll have what can be done to improve that situation. If you’re retired and on Medicare and you’re ready to travel, you’ll want to check your Medicare coverage first. And if you’re turning 60, I have questions you’ll want answered before retiring. 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.

Updated deadlines for IRA contributions and Health insurance

 IRA contributions for 2020 can be made until May 17th. They extended that from the April 15th typical deadline. Also MnSure Special Open enrollment has been extended to July 16th. If you don't have health insurance this is your chance to get signed up.

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

Your children don't want your stuff

 We talk here on the show about retirement planning and legacy planning too, but one thing I’ve really noticed as a trend in the last 10 to 15 years is, our children don’t want our stuff. My parents and grandparents appreciated good furniture passed down for example or a collection of figurines, but that’s all changed. And I think it’s important to start talking about this more when thinking about retirement. As part of legacy planning, let’s look at your house. Today I’d say 80% of the time your kids don’t want your house. Now with the demand for houses and the high prices people are getting for their home, most children would prefer the house to be sold and money divided, if that’s what you wanted to have happen. If you have a lake house or cabin many families want to keep that in the family but talk with your adult children and make sure it’s something they really want. If you have multiple children, this can be hard to divide up and for others they can’t afford the taxes and upkeep anyway. The sooner you know where they stand on this the better. If you aren't sure how your heirs feel about inheriting your "stuff," then the easiest course of action is simply to ask them. I think you'll be surprised with the answer.

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Closing for Good Friday April 2nd

 Sjoberg & Holmstrom Financial Services will be closed on Good Friday. We hope you have a blesed Easter. We will be open on Monday April 5th at 8 .m. You can leave a message at 320-679-5183.

April 3rd Your Safe Money Show highlights

 Coming up on this Saturday's (April 3rd) Your Safe Money Show. I’ll have information so you can maximize your Social Security benefits. I always say “knowledge is power” so I have money terms for you to know. And I’ll explain how to manage an inherited IRA.

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.