Money Talks


Money Talks: Hurricane Financial Documents

No sooner do we come out ofthe Safer at home executive order but it’s almost hurricane season. Today’s show is an encore broadcast from May 8th 2018. Our hosts, Dr Nancy Lottridge Anderson, President of New Perspectives and Ryder Taff, Portfolio Manager at New Perspectives give advice on how to prepare your financial first aid kit. Information: Financial First Aid KitTheEmergency Financial First Aid Kit(EFFAK), a joint publication fromOperation Hopeand FEMA, can help you prepare financially and provides tips to reduce the financialimpact ofdisasters on you and your family.For OrganizationsEncourage people throughout your organization or workplace to prepare financially. Here are some ideas to promote financial preparedness in your organization:Hold a brown bag meeting.Make a presentation at an existing staff meeting usingSafeguard Critical Documents and Valuablesto support your discussion.Include financial preparedness information in the staff monthly newsletter.At HomeStoreimportant documents either in a safety deposit box, an external drive oron the cloud to make it easy to access during a disaster.Take time now tosafeguard these critical documents.Household IdentificationPhoto ID (to prove identity of household members)Birth certificate (to maintain or re-establish contact with family members)Social Security card (to apply for FEMA disaster assistance)Military servicePet ID tagsFinancial and Legal DocumentationHousing payments (to identify financial records and obligations)Insurance policies (to re-establish financial accounts)Sources of income (to maintain payments and credit)Tax statements (to provide contact information for financial and legal providers and to apply for FEMA disaster assistance)Medical InformationPhysician information (in case medical care is needed)Copies of health insurance information (to make sure existing care continues uninterrupted)Immunization recordsMedicationsInsurance InformationHaving insurance for your home or business property is the best way to make sure you will have the necessary financial resources to help you repair, rebuild or replace whatever is damaged.Document and insure your property now.Household Contact InformationBanking institutionsInsurance agentsHealth professionalsService providersPlace of worshipGet Your Benefits ElectronicallyA disaster can disrupt mail service for days or weeks. If you depend on Social Security or other regular benefits, switching to electronic payments is a simple, significant way to protect yourself financially before disaster strikes. It also eliminates the risk of stolen checks. The U.S. Department of the Treasury recommends two safer ways to get federal benefits:Direct deposit to a checking or savings account. If you get federal benefits you can sign up by calling 800-333-1795 orsign up online.TheDirect Express® prepaid debit card is designed as a safe and easy alternative to paper.

Money Talks: Whats New?

What's going on in Mississippi this week?We are still under the Safer-at-home Executive Order number 1477 that was extended and remains in effect until Monday, May 25th. Governor Tate Reeves is encouraging all of us to stay at home unless engaged in Essential Activities or Essential Travel. Gov. Tate Reeves has expanded social distancing guidelines for Attala, Leake, Scott, Jasper, Neshoba, Newton, and Lauderdale counties. Businesses in these counties must screen employees for the coronavirus. People have to wear masks if they cannot social distance at their jobs and masks must be worn during retail, live auction and flea market shopping. governor added some benefits for the unemployed. concerned:credit card ratesa 2nd EIP check?wife lost workdo dependents get checks?where's my check?unemploymentyou need your AGI for "Get My Payment" at the IRSchecks to deceased individualsLooking for a way to make more money?consider online tutoring sites like Chegg or VIPKidselling handmade products such as jewelry or greeting cards on ETSYdelivering food for DoorDash or GrubHubDelivering groceries for companies such as Shipt or Instacart selling books on Amazon Marketplace or other items locally on Facebook Marketplace offering to your services to neighborsyards maintenancedog walkingsupervising childrenoutside or in a park – if you already have a relationship with the family. consider taking a class in contact tracing so you'll be ready for the job market when Mississippi starts hiring

Money Talks: Credit Counseling

Guest: Bruce McClary from the National Foundation for Credit Counseling TO KNOW: Submit your banking information to receive direct deposits of Economic Impact Payments by 11am Wednesday, May 13th, 2020. Mississippi Income Tax Returns and Payments are now due July 15th, 2020.Topics on the NFCC's website include - 10 Smart Ways to Reduce Expenses and Tighten Your Budget to Make Your Stimulus Check Last, Tips for Making and Managing an Emergency Budget; Should You Access Your Retirement Funds Early Due to COVID-19You can hear Bruce McClary give additional information on NFCC's Fin Bit Podcast coveredEviction and Foreclosure Suspension for Homeowners Facing Difficulties Making Mortgage Payments ForbearanceRefinancing about " housing relief" scams card debt weekly credit report was a guest on the July 3rd 2018 Money Talks broadcast

Money Talks: Medicaid and Stimulus Checks

From our experts at New Perspectives:We've been presented with questions and concerns surrounding stimulus payments for residents of Medicaid-funded skilled nursing facilities (a.k.a “nursing homes”). Will they get a check? Will they actually get to KEEP the money? Will a stimulus payment affect their Medicaid eligibility status? Hopefully we can offer a bit of clarity.While these residents are normally required to surrender most all their income, the stimulus payment will be an exception. Below is a link to an article that addresses this succinctly, with the key takeaways being:Residents of these facilities should receive a stimulus payment.The facility cannot take the funds to offset a bill or for any other reason.The funds will NOT be treated as income for purposes of Medicaid eligibility and will not force anyone out of their current eligibility status.The funds need to be spent within 12 months, so they are not counted as an asset which could impact eligibility for next year.Now may be the time for residents to purchase new clothes or a new TV for their room. The American Council on Aging also suggests using the funds for an irrevocable funeral trust to help prepay burial expenses. Residents may use the money at their discretion but should avoid buying anything that would count as an asset under Medicaid regulations, e.g.- U.S. Savings Bonds or collectors coins.Read the full article here:

Money Talks: EIP Questions

Are you waiting for an Economic Impact Payment? Will you have to wait until June? September? April of 2021?Expert Dr. Nancy Lottridge-Anderson answers your questions (and learns a thing or 2 from our listeners who share their knowledge).From Social Security:Please note that we will not consider economic impact payments as income for SSI recipients, and the payments are excluded from resources for 12 months. Security Income recipients and low-income veterans who receive pensions from the Department of Veterans Affairs -- and who don't file returns -- can expect to see the money in May. If they have children, they're due an actual $500 per dependent. But they won't get this money until next year unless they give dependent information to the IRS today, May 5th, 2020 at the website Social Security recipients, who have children under the age of 17, the date has already passed for getting the additional money for dependents. They'll have to file a full return in 2021 to get the additional money.If you want your check direct deposited and you have had to PAY income tax in 2018 and 2019, you need to go to the Get Your Payment part of the IRS website to put in your Direct Deposit information. Even if the IRS has your bank account information to withdraw your taxes owed it needs you to give it to them again to have your check direct deposited. IRS started by sending money to the people it could reach the fastest. This was anyone who had direct deposit information already on file with the agency because they were due a refund on either their 2018 or 2019 federal tax returns.Now, payments are being delivered to millions of Social Security recipients who don't file tax returns. They can expect the money to automatically arrive however they normally receive their benefits, whether by a check in the mail or direct deposit to their bank account or debit card.The IRS began sending paper checks out the last week of April. The IRS has inadvertently sent checks to dead people. Families are expected to send back those checks.If the Economic Impact Payment was sent to closed bank account -- the bank will transferred the money back to the IRS. In that case, the payment will likely come later by a check in the mail.The IRS online tool allows users to input new bank account information -- but only if the agency doesn't already have an account on file from a 2018 or 2019 tax return and hasn't yet processed a stimulus payment. is largely based on income, and it excludes individuals earning more than $99,000, head of household filers with one child who earn more than $136,500, and married couples without children earning more than $198,000.Families earning a little more may still be eligible if they have children. The phase-out limit depends on how many children they have. For a typical family of four, the amount is completely phased out for those with incomes exceeding $218,000.Those who can be claimed as a dependent for tax purposes, like many college students, are also ineligible for the payments, as well as undocumented immigrants who don't have Social Security numbers. economyMedicaidqualifying for stimulusget my paymentinfo on stimulusSSIMedicaidmoney

Money Talks: Free Oil!

Free Oil!"They're going to be giving this stuff away soon"I mumbled to myselfas I shook change out of a fifteen dollar bill to fill my tank.When I drive by a gas station with low prices, I remark "they're going to be giving it away soon." It's my inside joke that gets a guaranteed eye roll from whoever else is in the car. Sometimes that is just me. Recently, some gas stations have come close to giving gas away, one near my housesold gas for $1 and gave free sandwiches and water away with a fill uprecently. Costco was selling gas $1.17/gallon.But yesterday - they really were giving it away for free.To be precise, the price of oil went below $0. People were PAYING to get rid of oil. What's up with that?First, a primer. If you're trading oil for financial purposes (speculation, hedging, fun or profit, etc) you don't go out and secure a few barrels of the stuff, you trade contracts on a bunch of it. These standardized futures contracts state what type of oil, how much ($10,000 barrels, generally), what type (West Texas Intermediate, in this case) and when it will be delivered (there is a monthly schedule). If you hold the contract when it expires, congratulations, you own the oil! You just need to go to Cushing, OK to pick it up. This is all very standard stuff, and it's right there in the contract:Delivery shall be made free-on-board ("F.O.B.") at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to Enterprise, Cushing storage or Enbridge, Cushing storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations.At buyer's option, delivery shall be made by any of the following methods: (1) by interfacility transfer ("pumpover") into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility; (2) by in-line (or in-system) transfer, or book-out of title to the buyer; or (3) if the seller agrees to such transfer and if the facility used by the seller allows for such transfer, without physical movement of product, by in-tank transfer of title to the buyer.If you don't want to own the oil, easy, just sell the contract and pick up the next month. Generally, this works pretty smoothly. Again, oil is a widely used commodity and if you don't want it, someone else probably does.But lately, oil prices haven't been working the same way they generally do. With heavy travel restrictions and everyone working from home, demand for oil in the form of gasoline and jet fuel has declined precipitously. On top of that Saudi Arabia and Russia decided start a price war, pumping as fast as they could and pushing the price down even further. American producers, indebted since the last oil price shock in 2016, kept their rigs pumping even though they starting losing money on every barrel. Having a little money and a lot of bills is better than having no money, and still a lot of bills, they figured.So oil prices kept dropping, but how did they get negative?If you're pumping oil, but nobody wants it, you've got to store it. People with storage space, in huge above ground tanks, massive ships or a salt dome in their back yard, charge for storage.That storage was filling up fast. When storage is full, and nobody will buy from you, the price will plummet more. Eventually, you've got to pay someone to take it from you.A particular problem emerges when people holding contracts for oil realize that they can't store the oil either. If you're just holding the contracts in your brokerage account, or afund like USOyou can't take physical delivery of oil. You have to get rid of those contracts at any price - even if it means paying someone to take them.That is what happened Monday. Nobody had storage space for oil and nobody wanted to hold their contract as it expired. Brokerages dumped the shares as fast as they could, which meant in some cases they were paying to get rid of them. The price of oil to be delivered in May dropped as low as -$40 at one point!Could this happen again?It is not impossible for oil prices to go below zero, but this has been a lesson learned for a lot of market participants. Brokers don't want to be on the hook for closing out customers positions at such a large loss (these are traded using money borrowed from the brokerage, if the value goes negative again, and you can't pay the broker back, that is the broker's problem!). Many will likely update their policies and procedures to keep that from happening again. Plenty of investors will continue to buy oil futures or funds though and storage will continue to fill up. The price action may not be as dramatic next time, but there certainly can be a next time.Posted byRyder Taff, CFA

Money Talks: EIP

UPDATE: Read host Ryder Taff's blog post about oil prices going negative official name for the COVID-19 stimulus checks is the Economic Impact Payment.Have you gotten your check yet?Want to see when you should get your check? Get My Payment is helping millions of taxpayers. Since its launch on April 15, millions oftaxpayers have been able to input their direct deposit information to speed—and track—their payments. The IRS reminds taxpayers the information is updated once daily, usually overnight, so they only need to check the application once a day. to give your payment information to the IRS? you filed and paid your personal income taxes yet? The Mississippi Department of Revenue extended Income tax due dates, including estimated payments, to Friday, May 15th, 2020. The deadlines to FILE and PAY federal income taxes are extended to July 15, 2020.For the calendar year 2020, no one will have to take a required minimum distribution from any individual retirement accounts or workplace retirement savings plans, like a 401(k). That way, you aren’t forced to sell investments that may have fallen in value, which would lock in losses. If you don’t need the money now, you can let the investments sit and hope that they recover.You can withdraw up to $100,000 this year from your IRA that you are contributing to without the usual 10 percent penalty, as long as it’s because of the outbreak. You will also be able to spread out any income taxes that you owe over three years from the date you took the distribution. And if you want, you could put the money back into the account before those three years are up, even though the rules may normally keep you from making a contribution that large. concerned:inheritance checkEIP checkIRS non filerEIP and college kidsmoving money from IRA to a Roth IRASocial Security recipients getting checksSmall businessesemail - parent who was a dependent in the pastSelf employedRequired minimum distributions