Hello and Welcome to our September 2018 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 format as well as Video too!
Newbies – We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
This is month two of our upgraded Laptop, which means a new recording system of Audio and Video — while still working the kinks out, we are getting the hang of it – Enjoy!
September 2018 Video
Financial Planning Tip (s) –
The Emergency Fund
In our post here, a shortened version of an article in the coming Newsletter, we review all, about a much needed Emergency Fund, and the levels for certain scenarios.
Reasons to be slightly bigger-
- Possible Job Change – Need to be higher on emergency funds
- New Family Member- Higher is better
- New Home – Expect unforeseen expenses – they always occur (Has anyone ever built or bought a home in less time and for less money than they thought? Nope, it’s in our nature)
- Salary Fluctuations i.e. Commissions – Error on the higher side of that emergency fund
- Others dependent on you – Business owner, large family, solo income earners, college or wedding – Higher is better
Reasons for a normal to smaller Emergency fund-
- Dual Similar Incomes – Lower Emergency fund is ok
- Very stable Job – Smaller side of the living expenses will
- Very fixed income stability – Pensions, Social, etc.
High Deductibles – Why to Consider
In this post, we discuss the reasons for considering a Higher Deductible lifestyle –
Break In – There are always situations that a High Deductible will not work, we are just pointing out the advantages, under the correct circumstances!
Auto Insurance: One of the best ideas to consider a high deductible – take a look here at the great examples of why.
Home Owners: Another great coverage to consider a higher deductible.
Health Insurance: Once again a good one, but certain situations can easily negate the advantages of this!
Capital Market Comments – Interest Rates and Bonds
Short Term Headwinds Of Higher Rates on Bonds
This busy chart gives a great picture of the short term effects of interest rates on bond. Coming from such an extended long period of unusually low rates, we are reminding ourselves along with everyone else, this is very normal phenomenon and will correct itself with time by putting extra dollars in our pockets in the form of higher yields.
Have a Great Day – Talk to you at the end of October!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth