Closed Labor Day

 Just a reminder Sjoberg & Holmstrom Financial Services and Your Safe Money Show will be closed on Monday Labor Day. You can leave a message at 320 679 5183.

Your Safe Money Show details for August 31st

 Coming up on this Saturday's (August 31st) Your Safe Money Show. We all know our Social Security card is super important to keep safe but if we “misplace” our card how can we get a replacement? Todd will give us those details. And since many people talk about traveling in retirement, Todd will share what you need to know. And in that same vein he’ll answer, “Does Google Flights really save you money”? Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at yoursafemoneyshow.com.

Truth....Ha

Prospective COLA for 2025

 Were at that time of year when analysts speculate how much the COLA for Social Security benefits will be for the upcoming year 2025. Keep in mind this is subject to change BUT in 2025, the Social Security COLA may be 2.6%. That’s down from the 3.2% boost to benefits Americans saw in 2024. It’s also substantially lower than the 8.7% COLA Social Security beneficiaries received in 2023, and the 5.9% increase for 2022. The prospective Social Security COLA for 2025 would be the lowest since 2021 but in line with the average cost-of-living adjustments for the past two decades.

The annual Social Security cost-of-living adjustment is calculated based on third-quarter data from a subset of the consumer price index, known as the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The size of the official increase may change as new CPI data comes in. The Social Security Administration typically announces the COLA for the following year in October. Inflation has been a factor and the COLA is supposed to help retirees but the average Social Security benefit has lost 20% of its buying power since 2010, according to recent research from the Senior Citizens League, a nonpartisan senior group. The group’s research found, today’s average monthly benefit for retired workers would have to increase from $1,860 to $2,230 — nearly 20% — to keep pace with 2010 buying power. We’ll see what the final increase is but remember Social Security was never meant to be all the income for you to have in retirement. Questions go to yoursafemoneyshow.com

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Topics for this Saturday's August 24th edition of Your Safe Money Show

 Coming up on this Saturday's (August 24th) Your Safe Money Show. Todd will go into detail about the new rules when buying or selling a home that just went into effect. How to calculate your life expectancy and how to have a happy retirement. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at yoursafemoneyshow.com.

Medicare Open Enrollment

 Open enrollment for Medicare opens October 15th. If you want to schedule a no cost, no obligation appointment with Todd to see if your plan is still right for you or if you need other assistance call 320 679 5183 or go to yoursafemoneyshow.com.

Credit card record

 I read this week from the Federal Reserve Bank of New York that collectively, Americans now owe a record $1.14 trillion on their credit cards. Credit card balances rose by $27 billion in the second quarter of 2024, a 5.8% jump from a year ago. These days, 57% of consumers rely on credit cards to make ends meet. Half of credit card holders carry debt from month to month. Now there’s no easy answer to eliminate credit card debt but you can start by finding a payment strategy that works for you. Consider debt consolidation, work with your creditors, seek help through debt relief, and lower your living expenses. The first step is recognizing you need help. There’s many wonderful resources out there from the Federal Trade Commission, to Bankrate, the American Bankers Association and more. If you have questions go to yoursafemoneyshow.com.

Your Safe Money Show Do you need a trust 8 17 24

Your Safe Money Show topics for August 17th

 Coming up on Saturday's August 17th Your Safe Money Show. Todd will explain in estate planning who needs a trust and who doesn’t. Financial exploitation is a huge problem and he will share how to stay safe from fraud. And what are the signs your romantic partner might be financially unstable. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at yoursafemoneyshow.com.

Don't be a victim of scams free booklet

 Get your complimentary copy of "Don't be a victim of scams". Message us here, stop at 139 Union Street in Mora, or go to yoursafemoneyshow.com

RXpass information

 I saw this week that Medicare recipients can now use Amazon Pharmacy’s Rxpass. I am not making a plug for Amazon, but this is important news, if you are getting your medications through mail order or if it's an option. So what is RXpass? Launched a year ago, the RxPass is designed to provide lower-cost access to generic medicines that treat more than 80 common health conditions, including high blood pressure, anxiety and acid reflux. Subscribers can get as many eligible medications as they need, plus free home delivery and the ability to connect with a pharmacist 24/7, for a flat fee of $5 a month. Until recently, those with Medicare insurance plans were excluded from the service, but Amazon has now widened accessibility. According to Amazon, a Medicare beneficiary who takes at least one medication available through RxPass could save approximately $70 per year, and a beneficiary who takes two or more medications could save even more.

How does it work? You will need an Amazon Prime subscription to be eligible to join. This currently costs $14.99 per month/$139 per year. Then you have to sign up using the Amazon Pharmacy website or app. If your prescription medication needs to change, you can cancel the service at any time. RxPass isn’t currently available to send medications to California, Texas and Washington, although Amazon Pharmacy is available in all of those states. And those with state-funded insurance such as Medicaid and CHIP are not eligible. So, keep in mind this coverage is for common health conditions and covers 80 generic drugs. I think depending on your situation this is worth looking into and see if it’s right for you. Questions go to yoursafemoneyshow.com.

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Is retirement income taxable?

 I get this question a lot: “Is retirement income taxable”? Here’s how some income in retirement is taxed: Social Security Benefits: Depending on provisional income, up to 85% of Social Security benefits can be taxed by the IRS at ordinary income tax rates. Pensions: Pension payments are generally fully taxable as ordinary income unless you made after-tax contributions. Interest-Bearing Accounts: Interest payments are taxed at ordinary income rates, but municipal bond interest is exempt from federal tax and may be exempt from state tax. Sales of Stocks, Bonds, and Mutual Funds: Long-term gains (held over a year) are taxed at 0%, 15%, or 20% capital gains tax rates, based on income thresholds. Net investment income tax (NIIT) factors in for some taxpayers. at a rate of 3.8%. Dividends: Qualified dividends are taxed at long-term capital gains rates; non-qualified dividends are taxed as ordinary income based on your federal tax bracket. Traditional IRAs and 401(k)s: Contributions to traditional IRAs and 401(k)s reduce your taxable income. However, withdrawals are taxed at ordinary income rates. Required minimum distributions (RMDs) start at age 73. Withdrawals before age 59 ½ are subject to a tax penalty. Roth IRAs and Roth 401(k)s: Contributions to Roth accounts are not tax-deductible. However, withdrawals after five years following the first contribution are tax-free for Roth IRAs, including gains. Withdrawals before age 59 ½ are subject to a tax penalty. Life Insurance Proceeds: Life insurance proceeds are generally not subject to tax when received as a beneficiary. However, surrendering a policy for cash may have tax implications. Savings Bonds: Bond interest is generally taxable at ordinary income rates upon maturity or redemption but may be tax-free for education expenses if certain conditions are met. Annuities: For annuities, the portion representing the principal is tax-free; earnings are taxed at ordinary income rates unless purchased with pre-tax funds. Home Sales: Under the Section 121 home sale exclusion, primary home sale gains up to $250,000 ($500,000 for married couples) are excluded from income tax if specific ownership and use criteria are met.

If you want more information, give me a call and we can have a no cost, no obligation appointment.

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Your Safe Money Show topics for August 3rd show

 Coming up on this Saturday's (August 3rd) Your Safe Money Show, Todd is going to touch on Medicare upgrades that could disqualify your private plan. He’ll explain the value of using cash in the digital age. And if you inherit an IRA there are things for you to understand as a beneficiary. Listen at 8 a.m. at Nice 95.5FM KBEK. They stream live at kbek.com. Hear recent shows at yoursafemoneyshow.com.