Our office is closed Memorial Day

 Sjoberg & Holmstrom Financial Services and Your Safe Money Show want to wish you a safe and relaxing Memorial Day. The office will be close. We will reopen on Tuesday June 1st at 8 .m. you can leave a message at 320-679-5183.

Your Safe Money Show topics for May 29th

 Coming up on our Saturday May 29 Your Safe Money Show. If you are a caregiver, I have tax breaks for you to consider. If you received a tax refund, I have smart ways to have some of that money work for you. And what is inflation? A lot of my clients are concerned about inflation right now. I'll go over why prices rise and when to worry. 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 yoursafeoneyshow.com.

Your Guide to Social Security

 We have a revised edition of "Your Guide to Social Security" available. If you'd like your free copy message us here on Facebook or call 320-679-5183. For all our complimentary financial materials or contact information go to yoursafemoneyshow.com.

Compounding Interest

 You know last week we talked about money saving challenges, and if you missed the show (Your Safe Money Show) go to the website yoursafemoneyshow.com and listen at the podcast page. Anyway we talked about different ways to save money and I wanted to touch on compound interest today, which is one of the best ways to save. So, what is compounding interest? Compounding is the process where interest is credited to an existing principal amount as well as to interest already paid.

Compounding is interest on interest—so you can magnify returns with interest over time, the so-called "miracle of compounding."

When banks or financial institutions credit compound interest, they will use a compounding period such as annual, monthly, or daily. My safe money strategies use compounded interest. You also get a reasonable rate of return. When the market rises you get the gains but when it falls you stay the same. Your principle is protected. And if you are looking for lifetime income this strategy is for you. If you'd like more information call 320-679-5183 or go to yoursafemoneyshow.com.

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May 22 Your Safe Money Show highlights

 Here's what's coming up on our Saturday May 22nd Your Safe Money Show. I’ll have ways to bounce back after being forced into retirement. I get questions about taxes on Social Security while still working, I’ll break that down for you. And most couples have to find a way to merge their finances and we’ll see what those options are. Listen 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.

Savers tax credit

 I have a couple random facts for you today. First, the most abused Social Security number ever used in fraud by at least 40,000 different people. It belonged to a secretary at a wallet company. The story goes in 1938, Social Security cards were new, and the secretary’s boss wanted to see how they looked in a wallet. So, every one of their wallets came with a sample Social Security card inside… with her number on it.

The other random fact is about the savers tax credit. For 2021, single filers with adjusted gross income of $33,000 or less may be eligible. Taxpayers married filing jointly must have an AGI of $66,000 or less. (For 2020, the thresholds are $32,500 and $65,000, respectively.) Fall within the income limits and you can claim a tax credit worth up to 1,000 for singles or $2,000 for joint filers. The credit is based on 10%, 20% or 50% of the first $2,000 ($4,000 for joint filers) you contribute to retirement accounts, including 401(k)s, traditional IRAs and Roths. The lower your income, the higher the percentage you get back via the credit. Some people can’t claim the Saver’s Credit, regardless of income. Taxpayers under 18, full-time students and those claimed as dependents aren’t eligible. But if you do qualify, every dollar you claim is one dollar less you have to pay in taxes. To claim the credit, you'll need to complete Form 8880 and submit it with your tax return. We have until Monday the 17th to complete our taxes for 2020 but this savers credit information obviously can be used for 2021, so good to know. Questions call 320-679-5183 or go to yoursafemoneyshow.com.

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Your Safe Money Show topics for May 15th

 Coming up on this Saturday's (May 15th) Your Safe Money Show. I have some creative ways for you to save money that you maybe never thought of, you'll want to tune in to find out more. There is a new retirement bill that has bipartisan support, that would help savers of all ages. And surprise medical bills are coming to an end in 2022, I’ll break those down for you. So much good content listen at 8 a.m. at Nice 95 5 FM KBEK. They stream live at kbek.com. To hear recent shows go to the podcast page at yoursafemoneyshow.com.

Coping with debt

 I wanted to touch on a way to cope with debt. From credit card debt to student loans and mortgages, every generation is impacted. Americans over the age of 50 hold 22% of all student loan debt — up from only 10% in 2004. Especially during times of economic uncertainty, managing your debt should be a top priority. The clients I see having debt issues heading into retirement realize to have the best chance at the retirement they want and deserve, they must limit debt. When tackling debt, there are two popular methods: The avalanche method encourages you to organize your debts by interest rate. You’ll start by tackling the debt with the highest interest rate first. Once that debt is paid off, you’ll move to the next highest interest rate. The snowball method encourages you to organize your debts by the amount you owe. You’ll pay off the debt with the smallest balance first, before moving on to your next smallest balance. With each method, continue making at least the minimum payments on your other debts as you work to pay it all off. And I have encouraged clients to keep working a little longer, to pay down debt before they retire, that’s how important budgeting for debt needs to be. If you need some direction on this call for an appointment, 855-22money or go to yoursafemoneyshow.com.

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Your Safe Money Show topics for May 8th

 Your Safe Money Show for Saturday May 8th. I am seeing more Grandparents these days raising their grandchildren and there are challenges and joys with that, I’ll go over that for you. Also, before you retire you might want to consider the benefits of working longer, I'll go over that. Plus, when you’re doing an estate plan there are non-financial assets that you might want included in that plan, we’ll look at those assets. Tune in at 8 am at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Emergency fund

 If you don’t understand what an emergency fund is or why you need one, now is the time to get serious about starting one. This is money set aside in an easily accessible account, like a money market or savings account, that can be used at any time to pay for the unexpected, such as missing a paycheck, getting laid off or an emergency medical bill. Emergency funds are important for retirees, too. Health care is one of the biggest expenses retirees face. An unexpected medical bill from a fall or serious diagnosis has to be paid one way or another. If you haven’t factored this into your budget, you could run the risk of running out of money by withdrawing too much from your retirement funds sooner than planned. If your emergency fund falls short or is nonexistent, start by looking at your budget and finding areas to cut. Put $50-100 aside each week. It may seem easiest to put the money into a savings account you already have open, but instead, open a separate account dedicated solely to your emergency fund. That way it has a purpose and is used only in case of emergency. Any questions call 320-679-5183.

My Social Security Account

 Today I wanted to remind you of the importance of setting up a “My Social Security Account” if you haven't done so already, by going to ssa.gov. There’s many reasons to get signed up. Once you set up your account a hacker can’t try to set up an account in your name. Having an account allows you to see an estimate of your future benefits, which can help you determine the best strategies for claiming. You can start claiming your benefit at 62 but the longer you wait the more money you’ll get. FRA stands for “Full Retirement Age” which for most is 66 or 67. And you can get 8% more a year by waiting to take your benefits up to age 70. When to claim depends on other sources of income in retirement as well as life expectancy and health but having an idea of what to expect can help create a solid financial plan for the future. Another benefit: You can confirm your wage history and ensure the information the government has is accurate. Creating an account is simple. Individuals must be at least 18 years old, have a Social Security number and a valid U.S. address as well as an email address. After going to www.ssa.gov/myaccount and creating an account, the SSA will verify the person’s identification, send a security code and determine the best measure of communication, such as email or text. If you have questions or need help with this call 320-679-5183.

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