Home Sweet Home … On the way … Saw Sharpened … School About to start … Fun Friday

It has been nice being remote in a cooler climate….

Many of you know it truly is a working (but it never is work) remote vacation…

Tomorrow we rise before sun and hit the road back to the familiar surroundings…

School beacons not only for our family but for new minted “God Mother” daughter at a super close to home college… neat honor!

Speaking of working vacations, two 5 hour virtual seminars were completed midweek…. one of the most interesting sessions discussed the fact that mailed statements actually have a greater fraud exposure than electronic now… interesting… more to come!

Ahhhh….. today is a Friday heading into a mid month weekend, enjoy and 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

Why use an Limited Liability Company (LLC) ? In a word, LIABILITY! Make sure you REALLY need one before establishing!

Much like the use of Trusts and our growing fondness on said use, we find more and more uses for LLC’s

Notably the Real Estate (especially commercial) were pioneers in using LLC’s, naturally due to their exposures and inherent risks.

Happily with more and more LLC’s in our office and more questions about them, we pulled a few interesting background information for your perusal… but before we jump into that… two set up warnings…

  • Mind the taxes – Be sure to interface with your tax professional when setting these up and make sure you are not accidentally burying yourself under a load of unnecessary filings…
  • Mind the holdings – An LLC is designed to give you protection…. but if you put everything in it, you may be diluting the benefit

Attorney and Tax professionals are your go to folks on setting this up correctly…..

Recall the old saying “Measure twice cut once!”

We think if fits well!

Background and LLC Details

From Investopedia

A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

What Is Limited Liability?

Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company (LLC). In other words, investors’ and owners’ private assets are not at risk if the company fails.

The limited liability feature is one of the biggest advantages of investing in publicly listed companies. While a shareholder can participate wholly in the growth of a company, their liability is restricted to the amount of the investment in the company, even if it subsequently goes bankrupt and has remaining debt obligations.

Also from the IRS

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company.

Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

While it may sound neat to have an LLC, be forewarned if you set one up and do not really need one, you have garnered yourself unneeded work!

Have a Great “LLC Review” 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 Salary You Need to Buy a Home in U.S. Cities … Can you guess which City is the highest?

Another cool graphic, from our friends at Visual Capitalist, that sources the salary needed for various locations across the country.

Not surprisingly, silicon valley a.k.a. San Jose California is one of the most expensive areas and demands the highest salary.

Noting the itemized top 10 cities in average home price below, what is surprising is New York is outside of the top five. As an observation there are always pockets within certain areas that have extreme prices.

Have a Great “Salary Needed to Buy a Home” 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

Clients/Clients Only – No action letters coming to your mailbox – Electronic to paper statement update …

Hello and happy Friday from a far…. The family, friends and pets are still in a cooler climate for one more week!

No Action Letters Coming Your Way

If you have not already received some sort of “No Action“ letter in the mail, be prepared because you most likely will.

Photo by Kate Macate on Unsplash

We do not have any control of these documents….. There is a lot going on with this so we expect continued notifications and apologize in advance for any confusion….

As a regular practice and part of the pending merger that will happen late next year, most all of us will receive some sort of documentation confirming various items such as addresses account numbers SLOA’s (standard standing letters of authorizations.)

Please review these documents at your convenience and let us know if you see anything that needs to be corrected, deleted, or updated. In almost all cases we find that there is no action needed.  But if there is…. The easiest way to “Fix” anything is a joint call with our back office support team…. Lot’s of paperwork is included in some of the letters, but again, a quick call is MUCH easier!

Apologies for the confusion but truly better safe over sorry for our collective safety….

Automatic Electronic to Paper Statement transfers

As mentioned a while back here, with over 95% of you receiving electronic statements a technology upgrade again linked to the pending merger has automatically transferred some of us from electronic to paper statements.

We reached out to many of you, but as technology goes, it’s likely a few slipped through the cracks… Not to worry, we have an easy email template of instructions to correct … thanks Jen!

In the next week we will get a list of those few that were transferred to paper and will be reaching out to each of you with an easy less than one minute fix!

We think/hope this is a very small group as we know the vast majority of you hate paper statements and we will correct it quickly.

Happy Friday, 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

Handy Car Insurance Savings …. Again Idea from You in the Field …. If delayed repairs consider adjusting insurance …

With the various bottlenecks creating supply problems for everything from food … to chips (computer and potato), to all sorts of accessories … and parts in general, at times it’s left many feeling helpless.

From an actual experience from you guys in the field, hat tip BB ….. a fantastic money saving idea to possibly help counter some of the delays was discovered!

A second hat tip to LL for confirming that due to the aforementioned supply chain issues repairs … specifically auto repairs are of extreme delay …. and the respective insurance carriers are stuck trying to be mediator for everything !

Deem that terribly delayed automobile repair inoperable

This is not of course carte blanche for everyone to go shut off their automobile insurance, but with one teenager aboard our family policy and another one coming on in the next few months, every savings … especially as it relates to automobile insurance is helpful!

Check your policy and be sure to read the fine print on this before making any actions.

You also want to check the coverage of the location of your automobile to confirm with their policies cover.

This is also likely a technique that you would want to use for months of inoperability not just days or weeks.

OK now that we have the foundation covered from above here’s the sizzle:

Photo by Conor Samuel on Unsplash

Check your policy to see if you have an inoperable clause or similar on it.

It may be possible to earn significant savings on your automobile policy by using this clause, again if the aforementioned items have been met and are safely confirmed.

Yes, at times it’s very difficult to know just how long the repair may take. We have continued stories of lengthy parts delays and even family members that have autos with lengthy stays due to lack of workers to complete repairs, but if you meet the above it MIGHT be worth a review.

One more time, make sure you have the T’s crossed and the I’s dotted before doing this technique. It would be very penny wise and pound foolish if one were to turn the inoperable clause on and then have significant damages to the vehicle and it not be covered.

If you’re so lucky as to not have expensive automobile insurance, it’s likely that this is not worth the trouble!

Oh… one last item, you may also have what is called a Diminished Value claim if you were in an accident (not just delayed repairs) … we are not experts on this and would recommend speaking to your agent or utilizing Google to find out if this may be of help!

Have a great possible money savings 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

July 2022 Financial Planning and Capital Market Review – Back to Basics Tax Return PLANNING – Legacy Health Coverage – Feds Pickle – Yield Curve Inverts – By John Kvale CFA, CFP

Hello and Welcome to our July 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!

July 2022 Video

YouTube

Financial Planning Tip(s)

Back to Basics Series – Income Tax PLANNING

In our final fun “Back to Basics” review we discuss Tax PLANNING….

From the post:

Coincidentally, the most important part of Tax Planning is the second word in the subject, Planning!

As we individual or corporate tax payers traverse the tax year, it’s important to take note of unusual events that may be occurring. We’re certainly not saying you have to worry about this every minute of the day, but should you have an unusual increase in income, or decrease in income, this should be thought about before the end of the year for your tax planning.

Later in the post we discuss the key items in reviewing your return as well….. in step by step format!

Legacy Health Coverages

After running into several situations of legacy health care options for long time former employees… Here in this post we outline the possibilities of bridge Health Coverage from legacy companies and how fantastic of an option this can be…

In almost every situation, the key is these plans are not easily discovered. In order to find out if you have an option, it’s best to dig out contact information from HR of your old employer and reach out to them directly.

This is an expense to your former employer, so it would be expected not to receive multiple information regarding such a plan, but if available it could greatly help in bridging the gap for Medicare should we be in the situation of needing coverage before age 65. 

Capital Market Comments

Bond Market turns Upside Down – The R Word

After the second negative GDP print … see next note of Fed’s Pickle…. the bond market really began to price in the R Word…. Here in this post we discuss the inversion of long bonds to short and their meaning…

The Fed’s Pickle

In this post, BEFORE the actual GDP announcement, we discussed the Fed’s pickle, with a hot economy (CPI inflation holding tight) BUT an economy that is slowing …..even qualifying as the R Word now – Recession!

From the BLS release after our post :

Q2 2022 (Adv)-0.9%
Q1 2022 (3rd)-1.6%

Real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022, following a decrease of 1.6 percent in the first quarter. The smaller decrease in the second quarter primarily reflected an upturn in exports and a smaller decrease in federal government spending.

The definition of recession is negative two quarters GDP….

Have a Great Day, Talk to You at the End of August!

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

Fed Raises Rates and then heads home for some R&R for over two months … Last Friday of July … Going Fast …

As expected, on Wednesday of this week the federal reserve raised rates by 75 basis points (.75%), an early leak to their favorite Wall Street Journal reporter all but absolutely solidified this decision. Note the speed of the move compared to the most recent rate increases…

Now with an open calendar of over two months the federal reserve can head for the hills and get some R&R before having to stew over the next meeting ….. and what will be likely a much more complicated decision! Recall here our note about being in a pickle!

Speaking of R&R this note comes from a cooler higher altitude climate as the family and I recharge the batteries, sharpen the saw or however that goes, and spend time together. A turnaround trip back home is a necessity for the incoming freshmen‘s mandatory sport tryouts with a quick return back to the family …. hopefully!

Today is a Friday, hope you may have some time for some R&R as well!

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

Have you worked at a legacy company for a number of years? You may be eligible for some type of legacy health insurance from them !

One of the challenges, and concerns of retirement or transitioning from permanent employment before age 65, the current Medicare age for health insurance.

 

Purchasing health insurance as an individual can be challenging, and can also create some angst in the decisions that we make.

 

Have you worked at a legacy company for an extended period of time, maybe 10 years or so?

 

Photo by JESHOOTS.COM on Unsplash

We have continually run into situations where a former employee who has worked at a legacy company for an extended period of time, such as 10 years … may have an option for some sort of bridge or supplemental like health insurance coverage from the previous employer.

 

What is meant by legacy company, is a company that has been around for multiple decades …. a new startup tech company as an example, will not have such a benefit. Also, not to worry if your company has maybe changed an official name but has bones going back many decades, you still may have an option.

 

In almost every situation, the key is these plans are not easily discovered. In order to find out if you have an option, it’s best to dig out contact information from HR of your old employer and reach out to them directly.

 

This is an expense to your former employer, so it would be expected not to receive multiple information regarding such a plan, but if available it could greatly help in bridging the gap for Medicare should we be in the situation of needing coverage before age 65. 

 

Almost every situation that we know of … has a slightly different slant of how qualifications are determined, be sure to take copious notes on how and why you may have this offer, and make sure you keep whatever contact person you have  for future use.

 

Qualifications for such benefit can vary greatly, so again make sure that if you were being told something you again or actually able to get this coverage.

Maybe a bit of a hassle to determine if you have an option…. but if you do, will be VERY WELL WORTH the hassle!

Have a Great “Found Bridge Insurance Option” 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 domestication of animals, dog really is the best friend?

With some heavy posts as of late and more on the horizon, this fun totally non-financial chart from our best friends at Visual Capitalist hit us over the weekend and we thought we would share it.

Apparently the dog really is the best friend!

Our Cross Eyed Cat will be insulted that a sheep and goat made it before his species….

Have a Great “Domesticated Animal” 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

Last Summer Get Away on the Horizon …. Friday

With a summer that feels like it’s passing as fast as a lightning bolt, notwithstanding some restrictions due to the overzealous heat locally here in the south, all of us at the office are looking forward to our final, before school start, vacation dates…..

Mid next week, two bicycles, two dogs, two kids, one cross eyed cat, and one spouse head to a cooler climate with yours truly, for the last hurrah before school starts mid August…. Yes it sounds like the Beverly Hillbillies… you should see the actual event in action…

We do our best to plan our family times in a staggered format, so as not to be out of the office. Of course we always have complete technology control but sometimes may suffer from week Wi-Fi especially in more remote areas.

Being a strong believer of getting away, spending time with the family, relaxing, and sharpening that blade, we all encourage and cover for each other while we are out … but as mentioned before technology allows us to remain tethered, loosely/lightly tethered especially during the month of August, before the inevitable start of school that occurs mid month.

So let the fun begin next week and continuing for the next several, there may be times where an email response is a bit delayed, but we are always watching even from a far.

But that’s next week and today is a Friday heading into a mid to late summer weekend, if you’re near us stay hydrated spend time with those that are important and 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