November 2022 Financial Planning and Capital Market Review – RMD’s and Rate Review – By John Kvale CFA, CFP

Hello and Welcome to our November 2022 … Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!

Hope you enjoy!

November 2022 Video

YouTube

Financial Planning Tip(s)

RMD’s (Required Minimum Distributions) not taken can be taxed at 50%

In this reminder post (somewhat meant to frighten) we notify everyone, PLEASE do not delay in your RMD’s as the IRS is readily funded with new staff and the penalty is 50% of the amount not taken if they so desire….

Also with a continued bottle neck lack of workers …. many financial firms are on a “Best Effort” processing as of December 1! Gone are the last minute days of RMD’s act now!

Capital Market Comments

Rate Increase Discussions from “First Time in Long Time Conference”

Happily attending the first conference in over four years, the topic of interest rates came up, especially since a .75% rate increase occurred DURING the conference….

In this post, a chance meeting with Liz Ann Saunders … long time macro market strategist… we share our common thoughts on the fact the FOMC (Federal Open Market Committee) led by Powell are steadfast in their goals to slow the economy i.e. Slow consumption …. no matter what is takes…

Fort the record while short term rates are holding fast at a higher level, longer term rates have slowed their increases…. More on this as it plays out….

Have a Great Day, Talk to You at the End of December – Wow That Came Fast!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Make Up Travels – Fun Start to the End of Year Holiday Season – Billion Download Club of Music Via Spotify and Visual Capitalist …

With a short turn around trip early this week and a bit of a Thanksgiving whirl wind conclusion…. ByTheWay Thanksgiving is really becoming a favorite Holiday – Everyone for the most part is “Thankful” …. some seasonal Movies commence that are usually light hearted and fun…. even some radio stations go 24/7 Holiday tunes… what is not to like? Ok… digressing…

With the end of the month coming, a make up from bad weather trip early this week…. and Donald the Brain with return home transportation troubles…. A lighter start to the week … speaking of music?

Billions Downloaded Music Club – Spotifiy and Visual Capitalist

See Below for details – tried twice and picture still not great quality

Here is the site from our friends at Visual Capitalist – Top 20 of a total 300 club!

Track NameArtistPlay count (billions)Track length (secs)Release date
Shape of YouEd Sheeran3.32332017
Blinding LightsThe Weeknd3.22002020
Dance MonkeyTones And I2.72092019
One DanceDrake2.51742016
rockstarPost Malone2.52182018
Someone You LovedLewis Capaldi2.51822019
SunflowerPost Malone2.51582018
CloserThe Chainsmokers2.42442016
BelieverImagine Dragons2.32042017
SeñoritaShawn Mendes2.31902019
bad guyBillie Eilish2.21942019
PerfectEd Sheeran2.22632017
Say You Won’t Let GoJames Arthur2.22112016
STAYThe Kid LAROI2.21412021
Don’t Start NowDua Lipa2.11832020
God’s PlanDrake2.11982018
Heat WavesGlass Animals2.12382020
Lucid DreamsJuice WRLD2.12392018
Thinking out LoudEd Sheeran2.12812014
Bohemian RhapsodyQueen23542018

Have a Great “Ease into Holiday Season Post Thanksgiving” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Happy Thanksgiving – Blooper Video One Last Time – Less Gray, More teeth, Horrified Replay? – Enjoy … Gobble Gobble

With lots of newbies – (thank you very much) – we thought this was just too good to pass up…

Sophia is now 18 and will leave for college next year, Pierce (aka Toothless- 15 … a freshman) …. So this will be our last year for this… most likely………..hmmmmm

This was not edited, just a re-recording as frustration grew… Mother intuition was very clear as a warning was issue prior to the attempted recording…. “This will not go well!” Scripture !

Remember this was years ago, WAY before the popularity of TikTok or YouTube… in our opinion making it even more original and entertaining…

Enjoy the last (most likely) viewing — Wedding video(s) anyone? ..ha

Happy Thanksgiving!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Out of the Office this Week – DMA – Dallas Museum of Art Pictures – Can Happy Thanksgiving make ONE LAST appearance?

Office Hours – Out this week – Tethered for Emergencies

With all of our Families getting the full week off for Thanksgiving…. the decision was made to let everyone take some much needed R&R this week….

Yours truly is out of town and out of the state, but will be holding the fort down with electronics for any Emergencies that may occur…

DMA Post Party Fun – Pictures

The now 15 year old, Pierce, has a great eye for photography…. but a shy personality for taking picture of “Strangers” to him…. everyone at the party were like family of course, but not to him!

The pictures of anyone Pierce did not know, were …. well rough… but those that he did know came out great….and the DMA art, statues and other … we will let you make your own decision…

For the record privacy laws keep us from posting any pictures of non employee’s so you are all protected anyway… all is fair game for J.K. Financial, Inc. employees…

Oh…one last thing before we show you the pictures… with so many new followers, we plan on showing our most popular Video Ever … a non-edited frustrated, but humorous video from many years back…. We promise… last time!

And now the best Pics of the DMA

Happy Early Thanksgiving- Gobble Gobble !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Holiday Party Parking Reminder … Tomorrow at 2PM at the Dallas Museum of Art … Be Sure to get a Parking Coupon from us in the Founders Room

Tomorrow at 2 PM at the DMA (Dallas Museum of Art) be sure to get a coupon from one of us in the Founders Room…

There is a $15 parking fee if you do not get a coupon from us, and we do not want anyone paying for their parking!

Happy Friday and for those that cannot come, we will miss you but understand!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Bear/Slowing Market Bounces Reminder – A Historical Perspective

We have spoken before on the uniqueness of slowdown or bear markets ability to have ripping increases that soon fizzle…

While we do not now why they occur for sure, a historical perspective is they DO occur!

20 Largest One Day Gains in the NASDAQ Since 1971

We know that NASDAQ is filled with volatile companies…. but this chart making the rounds is very interesting….

The 7.4% move that many were calling the start of a new Bull Market sneaks in at 14th place of this one day moves going back to 1971- Yes, 1971!

We might even take issue to the 4 rallies not in “Bear/Slow Markets” according to this chart…. but if we do not, it is still 16 out of 20 in Bear/Slow Markets!

Have a Great “Watch the Slow/Bear Market” contra rallies!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

RMD’s not taken can be taxed at 50% … Nope not kidding … Yikes … More IRS agents hired … And if missed you have to file special tax forms … Yikes X 2 … Many Financial Institutions are Mandating a December 1 Completion … Take them Now Before the Rush!

Many of you may be wondering why we are so firm of completing RMD’s in what may seem like “Early” Calendar Fashion…

This year marks the first year of full force RMD’s since the new age 72 (recall it was 70.5 a couple of years ago)

Let’s not forget the following headline from just a few months ago too!

From the IRS statement on RMD’s here:

Consequence for failing to take required minimum distributions

If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required.

Financial Institutions are Mandating an Early Completion or Going Best Efforts

In addition to the full force of participants … Many institutions are Mandating a December 1 completion or it will be “A Best Efforts Basis” …

Bottom line, the consequences are too large in delaying your RMD – if you have not, take them NOW before the rush ….

Have a Great “RMD’s taken now” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

It’s A Party … Party Party … One Week from Tomorrow … DMA Holiday Parking Reimbursement Instructions, Coupons in the Founders Room … Friday

One week from Tomorrow, Saturday November 19th at 2 PM at the DMA (Dallas Museum Of Art) we welcome those available to attend to the 26th Annual J.K. Financial, Inc. Holiday Party…

Thank you to all who are taking time to come visit and share the Museum together….

Be sure to drop by the Founders Room so we may give you a parking pass to avoid the Museum Garage Parking fee…

Here again is the official reminder/invitation:

Ahhhh….today is a Friday here in Dallas, and Mother Nature is about to turn on the A/C and the rain… enjoy your weekend – Talk Next Week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

TSA Throughput 2022 v 2019 Almost Back to Norm … Without the Business Warrior …

With travels heating up on the homestead ….. Fresh off the recent trip/conference…. a desire to update the traffic flows…

From the TSA here

TSA Throughput Update

All the research we follow, still say the business traveler has not returned in force ….

Pretty strong showing without the business warrior …. Don’t you think!

Have a Great “TSA Update” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

The Fed Raised Rates, Analysis on Short and Long Term Rates, Interesting Observations From Conference Conversations

Last week during the afore mentioned conference, the FOMC (Federal Open Market Committee) continued their increases in the the short end of the yield curve aka Fed Funds Rate…

FOMC – Federal Reserve Raises by .75%

Last week the FOMC continued their increases in the very short term Fed Funds Rate…

Note the 1 Year Treasury compared to the 10 Year – Inverted as the longer term fixed income market could be looking forward to the eventual slow down.

In a chance conversation at the conference, Liz Ann Sonders – (Chief Investment Strategist of Charles Schwab) and I had a conversation about the FOMC meeting and an interesting observation.

The press release had some soft language that led many to believe they may be on the path to slowing increases…. Capital Markets took off…. of course Powell could see this and during his live press conference made sure to re-iterate the increases were still on the table…

Sonders and I both agreed, had the capital markets not gotten ahead of themselves… Powell would likely have said nothing… The Fed wants the slow down …

Have A Great “Fed Raised and Analysis” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents