Safe Money Strategies Newsletter – August 2026

Back to School

Do you remember when you were a kid and those dreaded “Back to School” signs went up in store windows all around town? Man, I hated to see that. The freedom of the summer vacation was coming to an end. Playtime was just about over, and school work was right around the corner.

It wasn’t long, though, before anticipation took the place of dread. What new experiences would I encounter this year? How had my friends changed over the summer? Where did they go on vacation? Band rehearsals would be starting soon….. I would drag out the horn and start practicing so I could be in shape.

Then there was the excitement of getting new clothes for the school year and obtaining all of those supplies I’d need for my classes. It was like Christmas in August! I know now how hard it hit my parents’ pocketbook, but they didn’t complain. School came first!

When I became a teacher, I noticed that many of those same emotions surfaced when the “Back to School” signs went up. Eager to meet my students and get back into the swing of things, I couldn’t wait to get back to my classroom and “get ready” for the school year. As a band director, we started a couple of weeks before everyone else (except the football team), and by the time school actually started we were already “in the groove.”

As a retiree, I don’t get quite as excited as I used to. But it’s still exciting when the new school year rolls around, because I know exactly how the teachers and their students feel. Enjoy the year, and enjoy your career….. it’s fleeting.

Health in the News…..

Mind-blowing facts about the Human Brain….

1. The average human brain weighs about 3 pounds.
2. The brain contains around 86 billion neruons.
3. The brain has no pain receptors.
4. The brain uses about 20% of the body’s total energy and oxygen.
5. The brain never stops working, even when you sleep.
6. Electrical signals in the brain can travel up to 268 miles per hour.
7. The brain can create new neurons, but only in certain areas.
8. The brain can store up to 2.5 million gigabytes of information.

Animal Quiz

1. Which bird is best known for mimicking sounds?
2. Which sea creature has 8 arms?
3. Which animal appears to be very lazy?
4. Which animal waddles when it walks?
5. What is a group of sheep called?

(Answers found on page 3)

Missed your RMD?

The penalty for not taking a required minimum distribution (RMD) on time is a 25% excise tax on the amount you failed to withdraw. This penalty can drop to 10% if you fix the mistake within two years, and it may be waived entirely by the IRS if you show a good reason for the delay.

Generally, you must take your first RMD by April 1st of the year AFTER the year in which you turn 73.

If you miss taking your RMD on time, you should immediately take the distribution from your IRA or similar tax-qualified account. When you file your next tax return, include IRS Form 5329. Ask for a Waiver: Write a short letter to explain why you missed the deadline due to a fair or reasonable error and ask the IRS to forgive the 25% tax penalty.

“Who Wants to Win Free food at Sonic?”

What’s the penalty if you don’t take your RMD on time?

1. 15%
2. 25%
3. 50%
4. 100%

The 4th person with the correct answer to the Question of the Month will receive a gift card to Sonic – just for reading this newsletter. Text or email responses only.

The July winner was Darla Shirk.

Thought for the Month

“Music is there for everybody. It’s a river we can all put our cups into and drink it and be sustained by it.”

…John Williams

Answers to Quiz

1. Parrot
2. Octopus
3. Sloth
4. Penguin
5. Flock

Cheap beats Fast!

Retailers have long competed for customers by promising faster delivery of online purchases, and customers have gotten used to expecting that. Now, with shipping costs rising, retailers are looking for ways to save money on those costs – and it seems that customers don’t mind waiting for delivery if it saves them money.

More than 95% of respondents to a recent McKinsey survey said that they preferred free standard delivery over paying shipping premiums. Many companies now are offering discounts or free deliveries for later arrivals … even as much as two weeks out. .

…..from The Wall Street Journal

Recipe of the Month

Easy Shrimp Fried Rice

Ingredients

1lb large peeled shrimp (United will steam them for you with Cajun seasoning upon request….free.)
1 box Uncle Ben’s wild rice. Cook or get a package already cooked.
(optional) ½ box breaded frozen fish
½ onion, sliced thin. ½ cup shredded carrot. ½ cup celery sliced thin. 1 large bag frozen vegetables (Bird’s Eye broccoli stir fry, including mushrooms, sliced water chestnuts)
2 tablespoons soy sauce, ½ tsp salt, ½ tsp pepper

Instructions

In a large skillet with ¼ cup oil, cook frozen fish 5 minutes. Add onions, celery, carrots. Cook 5 more minutes. Add frozen bag of vegetables and cook 10 more. Add cooked rice and 2 tablespoons of soy sauce. Salt and pepper. Stir.
Add shrimp. Cook 5 more minutes. Serve and enjoy!

…From the kitchen of Frances Hutson

What’s the Best Way to Handle “Market Risk?”

“Market risk” is the chance you take when you invest in market-exposed instruments, such as mutual funds, stocks and bonds. The value of such investments depends on a lot of variables, such as increasing or decreasing stock and bond values. Your investments can either increase or decrease in value. A lot of investors have enjoyed significant growth in such plans, but many have lost all or a portion of their investments as well. That’s “market risk.”

Now, let’s take a look at a scenario. Let’s say you invested $100,000 in a mutual fund account invested mainly in growth stocks. Over a period of time, your investment grows to $150,000. You have made 50% on your original investment, right? OK…. Now the markets crash and your $100,000 account drops to only $50,000 in value. You decide to just “ride it out,” and hope for the markets to recover. How much do you have to make to grow your account value back to the original investment amount of $100,000? You must enjoy an increase of 100% of your $50,000 value in order to get back to $100,000…. At which point you have only “broken even.” Sometimes it can take several years for the recovery.

Playing the risky investment game might be OK for someone young enough to “ride it out,” but what if you are retired? Do you have the 10 or 15 years needed to grow your account back to where you started? And what if you’re depending on that account for retirement income? Is there a risk of running out of money? The answer is, of course, yes.

Now, what if you put the $100,000 in a “safe money” investment, such as a fixed-indexed annuity? Your account grows to $150,000 and the markets crash. What happens to your annuity value? It stays at $150,000! That’s because there is no “Market risk” in these amazing plans. Each year of the contract, as the account grows with interest, the value of your account increases. In a bad year for investments, you night get a zero return, but you NEVER LOSE PRINCIPAL.

Even though you might not see the large growth in mutual funds or stock portfolios, you can sleep well at night because you know your money is safe and sound in your annuity account. Another plus is that taxes are deferred in an annuity, where you pay taxes annually on growth in brokerage accounts. It makes a lot of sense to save your hard-earned money safely in annuities! Let’s talk. ………..Jim