Thanks to those of the armed forces

With family, clients and friends who are serving in the armed forces I feel (barely) worthy of the ability to wish them well, as they are the reason many civilians such as our selves are able to live the way we do. Thanks ladies and gentlemen we MUCH appreciate what you do and have done.

Skeleton crew in the afternoon today at J.K. Financial, Inc.

Cathy is off today enjoying a much-needed and deserved extended 4 day weekend.  Donald will be causing machines their usual fatigue via his work load requirements but taking in many holes of golf over the next few as a bachelor weekend is in his crosshairs.  I will be out of the office later in the evening, slightly before close, but of course happily tethered electronically.

Server Service Reminder

Thursday May 30th, 2013 at noon and continuing all day Friday we will be without our server, email, vaults, and electronic files. Our plans are to be powered up on Monday June 3, 2013 as including the weekend, we should be back up by Monday morning.

This blog is on a different system, if we have issues we will be able to notify you via a post…again, a nice feature of this technology.

Have a great Friday and a Super Memorial Day weekend.. See you on Tuesday!

John Kvale

214-706-4300

http://www.jkfinancialinc.com

Recent Gallup poll Shows Average US Retirement Age is up

According to a recent Gallop poll, see graph below, the average age of retirees or expected retirees is now 61, far from the age 57 retiree in 1991.

As you can tell from this Gallup poll, the retirement age is rising and we believe it will continue as self-employment and technology mobility along with improved longevity all add to the equation.

In closing this is a very interesting subject for us and we intend to study it in greater detail along with various aspects of the retirement picture. We may even conduct our own poll in the future. We find often that many are working and intend to work far further into the retirement age zones of old.

Server is on Notice

The new fancy dancy server is on deck and ready to go. We will be shut down from email, vault and saved information the last two days of May as the migration occurs. We will notify you again, but wanted to give everyone a long runway of notice.

Have a great Wednesday!

John Kvale

214-706-4300

http://www.jkfinancialinc.com

a Recent Comment Request by the SEC on FIDUCIARY

Fiduciary is one of the most lightening rod terms ever used in the industry. It represents liability and a higher level of accountability. Many years ago (20+ now) I found myself working for the company and the client in conflict. That was a deciding point in my career to leave the conflicted world and work as a Fiduciary for the client, and only the client.

It is impossible for all Capital Participants to be a Fiduciary

The capital markets cannot work as we know it if everyone is a Fiduciary. This is fine by us, there are companies that are for profit and that is great. Not being a Fiduciary is not a terrible thing. Our only request is that investors understand the difference.

Here is my comments to the SEC as we take our industry and the future of it very seriously. We hope you like your representation through our voice.

Have a Great Monday!

John Kvale

214-706-4300

http://www.jkfinancialinc.com

Bonds Can Lose Money

Multiple times over the weekend the subject of bonds not losing money arose. While there are few certainties in investing, if you hold a long-term bond AND interest rates rise, YOU WILL LOSE MONEY IF YOU SELL EARLY….Who really wants to lock in a 30 year bond at 3% today ?

These topics come up as everyone is beginning to search/stretch/reach for yield. DO NOT DO IT! It does not end well.

We have no idea when exactly rates will rise or even if they will. If rates rise, and as an investor you are stretching for yield, you will very likely be hurt. When the music stops there may be a fight for the exits.

Safer Investing in Bonds Today

Here are a few keys to help keep losses to a minimum if rates rise. Even in this scenario, losses may occur, although they should be minimal.

1. Stay in shorter terms (1-5 years, 7-10 MAX)
2. Favor higher quality over lower
3. Diversify (Corporate, Muni, Foreign)

On the Road Again

With a flight out tonight, I find myself out of the state and happily, lightly tethered via electronics. I will be back in the saddle in full force next Monday!

Have a great Day and rest of your week!

John Kvale

214-706-4300

http://www.jkfinancialinc.com

Technology, now a mobility and time giver

Technology, once a privacy and mobility taker has in my opinion gone full circle. Neatly, in a matter of minutes I was able to send out a quick note (delayed delivery for those similar to most of my family who like to sleep in..haha) alerting those who are a part email notification on our www.street-cents.com site to the article and the quote.

This is just another example and reason why we really like the ability to quickly contact everyone via email…thanks for those 500+ email notification participants…if you are not on the list, click on the email notification link…it’s free, one click opt out and you will always get our true, original thoughts and ideas ! We will not abuse your time.

While we do not know why, there may be a time when the quick action and notification is extremely important. This time, a quick note and positive mention was the reason.

Dallas Morning News Article – The Great Pamela Yip

In the afore mentioned article by Pamela Yip, she asked me for information and advice concerning changing medical situations, the need for possible extra emergency funds, other expenses, and the possible ways to set aside funds. Many noteworthy friends and peers were mentioned in the article, and my comments concerning family longevity made the cut as well.

Those who have worked with us on a retirement projection model know there is a special column in your plan available for monthly/annual medical expenses and needs….showing our belief how important planning for this possible expense is.

Lastly, Pamela Yip is a terrific reporter who gets it. I have interacted with her for over 10 years and know her to be one of the few who really attempt to tell the true and correct story to her readers and followers. This is not always the case in today’s media…as there is much over drama in a lot of reporting today. Well Done Pamela!

Out of the State Thursday and Friday

As a reminder, the travels continue as I will be out of the office on Thursday and Friday, this time out of the state. You are always in good hands with the team and I am always available……by that amazing technology of course!

Have a Great Monday!

John Kvale

PS For those that asked about last Friday’s 6:45 am tennis lesson…it was for my 8 year old…certainly not me…haha

214-706-4300

http://www.jkfinancialinc.com

In today’s Dallas Morning News, the terrific Pamela Yip has a nice article (click here for digital subscribers) on preparing cash needs for Financial Health Emergencies and changes.

Fortunately, I was mentioned in the article under “Your Health History” in which I spoke about my experiences with clients in the needs of longevity.

Have a great rest of the weekend!

John Kvale

PS More on Monday!

http://www.jkfinancialinc.com

Eyes wide open for Clues and Confirmation

We are watching so close for clues either economically or via company to validate the recent moves…so far…well…we are watching. A fellow professional investor and dear friend made a very accurate comment to me this week that the P/E (Price Earnings ratio) is more of a confidence indicator than a valuation. He is correct and confidence is at high levels now…..and looks to get more confident! (Hat tip Mark)

On the Road for the Weekend

Just after market close we (family, friends, and myself) head to the land of the Alamo (San Antonio) for multiple business meetings, fun, family, and fellowship, along with a Mother’s day celebrations.

Next week brings a short week as we are out of the state on Thursday and Friday…but that is next week…enjoy your Friday and your weekend… be safe AND…..

Happy Mother’s Day Mom’s!

John Kvale

PS New special order super server is on order…yaa yaa….Nerds !!

PSS 6:45 am Tennis lesson this am with my 8 year old…..and she wanted to go…Wow!!!

214-706-4300

http://www.jkfinancialinc.com

Another reason it is tough to get our financial ducks in a row

Someone recently mentioned to me that we live in a society where today it is easier to buy a $100k car than a $100k house……Let’s think about the implications.

• House = Generally Long lasting
• Car = Deprecates about 25% per year for the first several years
• House = Tax break
• Car = No Tax break (usually)
• House = Appraisal…title…Credit Check…first born child…blood type
• Car = High level credit check …Oh no problem just a higher rate if you have bad credit….here are the keys
• Time to buy a $100k Car about 2 hours
• Time to buy a house, about 30 days..if we are lucky!

Funny Society pressures we face today.

Just another reason temptations make it tough to get our financial ducks in a row sometimes! Don’t bite…hopefully you enjoyed our parity! (Hat tip Mike)

Have a great day!

John Kvale

214-706-4300

www.jkfinancialinc.com

Hope you enjoy the April 2013 J.K. Financial, Inc. John Kvale Capital Market Video Review

Our first point from April is Interest rates…..yikes…but a better finish.

We watch interest rates as a sign for the possibility of growth and or a slow down. GENERALLY, but not always a lower rate tends to proceed slowdowns. Rates on the 10 year fell to well below 1.70% signaling a slow down or an increase in fear. Early in May rates have found their footing and are moving back to less of a slowdown signaling level.

Taxes and Expenses from the Congressional Budge Office

Given April 15th is personal tax day and we have mentioned that it was a hard tax season this year as many/most seemed to be paying more, we dug this chart from the Congressional Budget Office forecast for 2013 and sure enough, they are expecting a much larger increase as well. Good forecasting on their part and unfortunately lighter pocket books on our part. We sure wish those lines would cross..meaning a balanced budget.

Boston Marathon a tragic event

In a very crazy moment of a positive event gone south, the explosions of the Boston Marathon mark a spot in our April review. We wish all those that were injured a speedy recovery and we are happy for a quick capture.

That’s it for April. Hello May, hopefully you will not pass us so quickly.

Have a Great Day!

John Kvale

214-706-4300

http://www.jkfinancialinc.com

What is the strategy for investing new money now?

The answer is it depends on where the funds came from.  Walk with me here for a second and our logic will become clear.

• If the funds are from the sale of a home, since this is a lower volatility asset, it pays to be cautious and maybe only invest a portion.
• If the funds came from a well deserved bonus…source safe=conservative entry.
• If the funds came from a “Beast” 401k rollover allocation, investing fully here in a more diversified and correctly allocated portfolio is ok, and a “net” “net” a lower risk proposition.
• If the funds came from a major concentrated position in corporate stock…wipe your brow, take a deep sigh of relief and be cautious moving forward, making certain your allocation is correct.

You get the picture…the safer/lower volatility source, the more important to be prudent on re-entry!

What is not the correct investment right now?

We have all had the feeling…”The train is leaving the station…I am not aboard!”  Do not bite, as chasing can be hazardous to our financial health.

There is always another train!

Rebalance, Rebalance, Rebalance

Long time correctly allocated investors (Clients) …as you know we are ringing that cash register when the fast growing/aggressive portions start to dominate the more conservative slower growing portions.  Always another train!

Have a great day and TGIF!

John Kvale

PS  The tax hangover is still with us, but our feet are getting closer to being under us…it is much better than the alternative!!