Harv's Corner

AUTO-IRA MAY BE JUST THE TICKET
Minnesota’s saving program should become available next year for those workers without an employer retirement plan.
By CHRIS FARRELL • For the Minnesota Star Tribune

RETIREMENT

The standard advice when saving for retirement is: "Start early and save regularly" to harness the power of compound interest.

Yet many Americans have saved little for retirement, and that's not because they're financially illiterate. Instead, about half of the private-sector workforce works for companies that don't offer a retirement savings plan. Few workers save without one, and that's a major reason why about 30% of retired households solely rely on Social Security for income. The lack of access to an employer-sponsored retirement plan is concentrated among lower-wage workers without college degrees.

Several administrations of both parties have proposed initiatives to expand coverage nationally, but the efforts have gone nowhere. Frustrated at the lack of progress, eight states stepped into the breach and created auto-IRAs, and at least eight more states are in the wings, including Minnesota. The Secure Choice Retirement Program — Minnesota's auto-IRA — should become effective next year.

The state auto-IRA plans share a similar model, although the details can differ. Employers without a retirement savings plan must auto-enroll employees in an IRA (often a Roth-IRA). Workers can opt out of it.

There is no company match. The default after-tax contribution rate is 5%. The first $1,000 goes into a moneymarket fund. Contributions above that threshold invest into an age-based target date fund.

Will these state-sponsored plans make a difference? Yes, at least according to a paper presented at a recent retirement conference in Washington, D.C., by two economists from Boston College. They took the basic auto-IRA blueprint, made some assumptions and peered into the future. One baseline number: Median household assets in 401(k)s and the like at ages 51-56 are zero on average among employees with high school or less education. (The study offers projections for workers by education. I'm focusing on less-educated employees.)

They assume about one-third of this group will optout. Participants who cycle in and out of the program and use the money for emergencies will accumulate a median balance at ages 51-56 of more than $25,000.

The same group would have almost $44,000 with no withdrawals. These modest sums are better than zero. Workers from this cohort who are continuously enrolled throughout their careers in the program accumulate sizable balances. Making sure all workers have access to a retirement savings plan at work matters, especially early in their career so they can take advantage of compound interest.

Chris Farrell is senior economics contributor, "Marketplace"; and a commentator for Minnesota Public Radio.

Harv's Corner

​​Be active in search for joy in your life OUTSWIMMING THE SHARKS HARVEY MACKAY

There once was a farmer who won the award for the best wheat in the county every year. One day a woman asked him the secret to his success.

He told her that the key is to share his best seeds with his neighbors so they could plant good wheat as well.

The woman asked, “How can you share your best wheat seed with your neighbors when they compete with you every year?”

“That’s simple,” the farmer replied. “The wind spreads the pollen from everyone’s wheat and carries it from field to field. If my neighbors grow inferior wheat, cross-pollination will degrade everyone’s wheat, including mine. If I’m to grow the best wheat, I must help my neighbors grow the best wheat as well.”

This is not only good advice for growing the best crops, but also excellent advice for how to live your life. If you want to live a meaningful and happy life, help others find happiness.

I love the saying, “If you want happiness for an hour, take a nap. If you want happiness for a day, go fishing. If you want happiness for a year, inherit a fortune. If you want happiness for a lifetime, help someone else.”

Happiness is incredibly important. It is not just a fleeting emotion or a byproduct of success. It is a state of mind that can significantly influence both your personal and professional lives. That’s why August is National Happiness Month.

I often say that happiness is not a spectator sport — you must actively participate in the pursuit of your own joy. It is a powerful force that can shape your outlook on life, your interactions with others and your overall well-being.

Happiness also has been linked to better health outcomes.
When you are happy, you are likely to experience less stress, which can contribute to a stronger immune system and a lower risk of chronic diseases.
​
What brings joy to one person may differ for another.
However, there are several universal strategies that can help you obtain happiness, including these.

Choose to be positive.
Cultivate a positive outlook and focus on the good in your life.

Develop an attitude of gratitude.
With a positive attitude, you are better equipped to bounce back from setbacks and maintain a hopeful perspective.
When you are happy, you are more engaged, creative and motivated to achieve your goals.

Incorporate humor into your life.
Look for humor in everyday situations and allow yourself to laugh. Use humor as a tool for hope, signaling that better times are ahead and that you can handle life’s challenges.

Be helpful and kind.
Engaging in acts of kindness and volunteering can boost your mood. Recognizing the value in others can enhance your relationships and bring joy to both you and them.

Choose joy.
​Every day, you have the choice to seek out and embrace joy. Make the conscious decision to pursue activities and thoughts that make you happy. At the same time, avoid self-pity, worry and complaining, which can sap your energy.

Follow your enthusiasm.
Be open to taking detours on your road map to happiness.
Your enthusiasm may lead you to unexpected and fulfilling places.

Mackay’s Moral:
Happiness is like a kiss — you must share it to enjoy it.





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Harv's Corner 
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Who is Tim Walz

Tim Walz is Minnesota’s 41st Governor.
He was first elected Governor in 2018 and won re-election in 2022. Accomplishments from his time as Governor include providing universal free school meals for students, protecting reproductive freedom, strengthening voting rights, laying the groundwork to get Minnesota to 100% clean electricity by 2040, cutting taxes for the middle class, and expanding paid leave for Minnesota workers.

Throughout his time as Governor, Tim has prioritized making Minnesota the best state in the country to raise a family. Born in a small town in rural Nebraska, Tim’s parents instilled in him the values of public service, generosity toward your neighbors, and working for the common good that guide his commitment to Minnesota today.

After high school graduation, Tim enlisted in the Army National Guard. He attended Chadron State College and graduated with a social science degree in 1989. Tim spent a year teaching abroad before returning home to serve full time in the Army National Guard and eventually accepting a high school teaching and coaching position.

While teaching, Tim met his future wife, Gwen Whipple, who taught at the same school. They moved to Mankato in 1996, where they worked at Mankato West High School. In addition to teaching social studies, Tim helped coach the Mankato West football team that won the school’s first state championship. After 24 years in the Army National Guard, Command Sergeant Major Walz retired from the 1-125th Field Artillery Battalion in 2005.

Tim won his first election to the United States House of Representatives in 2006 and was re-elected for another five terms serving Minnesota’s First Congressional District in Southern Minnesota.
​
Governor Walz's Signature Accomplishments
Governor Walz and Lieutenant Governor Flanagan took office in January 2019 on the promise of One Minnesota:
the vision that, while we are not all the same, we are at our best when we work across lines of difference to improve the lives of all Minnesotans. Facing unprecedented challenges, Governor Walz and Lieutenant Governor Flanagan led with a focus on investing in the things that matter most: children and families, economic opportunity, health and safety, and strong local communities.

The Governor and Lieutenant Governor continue building on the accomplishments of their first term to improve the lives of Minnesotans across the state. 

Historic investments in education;
Governor Walz signed a $2.3 billion education budget into law – the single-largest investment in public education in state history. Governor Walz and Lieutenant Governor Flanagan also provided Minnesota students free breakfast and lunch at school, created thousands of new pre-k seats, expanded access to mental health resources for students, and made significant investments to improve child literacy.

Protecting Personal Freedoms; 
Governor Walz and Lieutenant Governor Flanagan established ironclad reproductive freedom, protections for Trans individuals, and gender-affirming care as fundamental rights in Minnesota.

Governor Walz also banned the cruel, outdated practice of “conversion therapy” and ended book bans based on ideology. Improving Public Health and Safety Governor Walz banned the use of hand-held cell phones while driving and raised the age to purchase tobacco to 21.

The Governor provided $300 million for public safety needs across the state to combat crime and broke ground on a new, centralized Minnesota State Patrol headquarters.

Governor Walz took meaningful action to protect communities from gun violence, signing bills establishing a red flag law, expanding background checks, increasing criminal penalties for straw purchasing guns, and banning deadly binary trigger guns.

Expanding Workers’ Rights;
To make Minnesota the best state for workers, Governor Walz and Lieutenant Governor Flanagan established paid leave, ensured paid sick days, banned non-compete agreements, and increased protections for workers in Amazon warehouses, construction sites, hospitals, nursing homes, and public schools.

Strong Communities and Infrastructure;
Governor Walz signed the largest infrastructure bill in Minnesota’s history into law to rebuild roads and bridges, repair fire stations and water treatment plants, and upgrade veterans’ homes, fish hatcheries, and flood mitigation systems – all while creating good-paying union jobs for Minnesotans.

Governor Walz also provided funding to remove and replace lead pipes across the state.

Tax Cuts for Working Families and the Middle Class;
Governor Walz has cut taxes with every one of his budgets.

Governor Walz has delivered a variety of rebate checks up to $1,300 to seniors, students, workers, and middle-class families. He also lowered taxes for small businesses and fully exempted state taxes on social security for more than three quarters of seniors.

Workforce Development;
Governor Walz has invested millions in workforce development to connect Minnesotans to high-growth, high-demand career fields like manufacturing, education, and public safety.

To lower costs and grow Minnesota’s workforce;
Governor Walz and Lieutenant Governor Flanagan provided free college for students with a family income under $80,000. They also invested over $1 billion in child care and early learning opportunities. Expanding Voting Rights Governor Walz signed into law the largest expansion of voting rights in Minnesota in the last half century, restoring voting rights for over 55,000 formerly incarcerated people in Minnesota, establishing automatic voter registration, creating a permanent absentee voting status, and pre-registering 16- and 17-year-olds to vote.

Governor Walz also signed the Minnesota Voting Rights Act;
into law – prohibiting standards that would deny or limit any citizen’s right to vote based on their race, color, or language.

Lowering Prescription Drug Costs In 2023;
Governor Walz and Lieutenant Governor Flanagan took new action to significantly lower the cost of prescription drugs for seniors and middle-class families. They also enacted the Alec Smith Insulin Affordability Act to provide Minnesotans with emergency assistance and hold insulin manufacturers accountable.

Protecting Our Environment;
Governor Walz signed a bipartisan bill to lead Minnesota to 100% clean electricity by 2040 all while creating good-paying jobs for Minnesotans. In 2023 alone, he signed over 40 climate initiatives into law – including provisions banning PFAS “forever chemicals,” expanding Minnesota’s electric vehicle infrastructure, and providing a tax credit for electric vehicle purchases. And in 2024, he cut red tape for clean energy projects to put a downpayment on rapid clean energy job growth.

CUTTING CHILD POVERTY;
Governor Walz and Lieutenant Governor Flanagan established a nation-leading child tax credit to cut child poverty in Minnesota by up to one-third.

INCREASING ACCESS TO AFFORDABLE HOUSING;
Governor Walz signed a historic $1 billion investment in housing into law – building a foundation for safety, stability, and economic growth across the state. Governor Walz and Lieutenant Governor Flanagan also took new action to protect tenants’ rights.

LEGALIZING ADULT-USE CANNABIS;
Governor Walz and Lieutenant Governor Flanagan legalized adult-use cannabis and expunged nonviolent cannabis convictions in Minnesota.

PROTECTING MINNESOTA CONSUMERS;
Governor Walz and Lieutenant Governor Flanagan helped more Minnesotans recover from medical debt – banning medical debt from impacting credit scores, preventing medical providers from withholding medically necessary care due to unpaid debt, and eliminating automatic transfers of medical debt to a patient's spouse. Governor Walz also signed a bill into law banning hidden junk fees and cracking down on fraudulent ticket sales.

PROTECTING SENIORS;
To protect Minnesota seniors, Governor Walz signed historic, bipartisan elder abuse legislation to regulate assisted-living centers for the first time. He also allocated $173 million in direct funding for 340 nursing homes across the state.

Office of Governor Tim Walz
130 State Capitol
75 Rev Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155

Harv's Corner
This is the forth and final release on security measures series.
​

Secure Your Personal Information:

Safeguard Sensitive Documents: 
Keep your Social Security card, passport, birth certificate, and other sensitive documents in a secure location, like a locked safe or file cabinet.

Shred Sensitive Documents: 
Shred any documents containing personal or financial information before discarding them.

Limit What You Carry: 
Only carry your Social Security card or passport if necessary, and only carry the credit and debit cards you need.

Be Cautious Online: 
Avoid sharing personal information on social media and be wary of phishing scams.

Practice Strong Password Hygiene:

Use Strong, Unique Passwords: 
Create complex passwords for all your online accounts and avoid using the same password for multiple accounts.

Use a Password Manager: 
Consider using a password manager to securely store and generate strong passwords.

Enable Two-Factor Authentication (2FA): 
Whenever possible, enable 2FA for an added layer of security.

Monitor Your Financial Accounts:

Regularly Review Statements: 
Check your bank, credit card, and investment statements for any unauthorized transactions.

Set Up Alerts: 
Many financial institutions offer alerts for unusual activity, such as large withdrawals or purchases.

Check Your Credit Reports: 
Review your credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion) at least once a year for any inaccuracies or signs of fraud.

Protect Your Devices:

Use Security Software: 
Install and regularly update antivirus and anti-malware software on all your devices.

Softwareware Updated: 
Keep your operating systems and applications up to date to patch any security vulnerabilities.

Be Cautious on Public Wi-Fi: 
Avoid using public Wi-Fi for sensitive activities like online banking or shopping.

Take Action if You Suspect Identity Theft:

Report Suspicious Activity: If you notice any unauthorized transactions or suspect identity theft, report it to your financial institutions and the Federal Trade Commission (FTC).

Place a Fraud Alert or Credit Freeze: Consider placing a fraud alert or credit freeze on your credit reports to prevent new accounts from being opened in your name.

Monitor Your Credit Reports Closely: 
Continue monitoring your credit reports for any further signs of fraud.

​By following these steps, you can significantly reduce your risk of becoming a victim of identity theft and protect your financial well-being. Remember, vigilance and proactive measures are key to safeguarding your personal information in today's digital age.