Another Positive Friday … Pre-View March Review and Emotional Cycle

With Negatives still topping most headlines, I am running with another Positive Friday as we head into a weekend… those that missed, this is the third Positive Friday, here and here are the prior two for an extra Positive Moment … but now this weeks Positives:

  • Every Day is a Day Closer to Normal
  • March is behind us
  • If you are able to read this, it’s a pretty darn good day!
  • We all have each other
  • Our Country continues to work in Unity
  • Stimulus Rebate Checks to over 90% of the population are getting ready to be sent
  • Unemploymentfor the Self Employed is coming
  • No Mandatory RMD’s this year
  • Forgiveness Loans to Businesses to Keep Employees on the payroll

Next week we will return to our regularly scheduled three times per week Posts which will include a belated March Review Video (Hair Salons are not essential…look out) and an Emotional Cycle Graph that is homegrown along with forthright ways our family is keeping spirits in check!

Until then…..

Have a GREAT “Positive” Friday and Weekend, Stay Safe!

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

CARE ACT Review (Please Share, Especially With Displaced Business Owners of All Types) – “The “PPP” Paycheck Protection Plan!” Expected to be Over Subscribed …

The following is most fitting for an Employer who has been displaced!

The Care Act was signed into law on Friday, March 27, 2020 and includes a provision for Employers to extend workers pay and possibly NOT REPAY!

The “PPP” Paycheck Protection Plan

BREAK IN: Some legislatures are expecting this to be over subscribed i.e. Run out of money – do not hesitate! 

BREAK IN: Your local bank will likely be able to accept an application TOMORROW, FRIDAY APRIL 3!

Here is a link to a sample application on the SBA website, and Here is a link  to the form saved here on our blog in case the site is down.

Forgiveness loan that can be totally FREE to small business owners if they qualify and use the funds appropriately. If not, they will receive a possible 10 year term, 4% maximum interest rate from the Small Business Association, happily administered by qualified local banks in an attempt to speed the process of getting the loans to business owners.

The purpose of this loan is too keep your people employed!

Available for business owners of less than 500 people who were or have been adversely affected by the Corona Virus.

Must certify Good Faith that the business has been affected by the Virus. Which can include uncertainty of the future.

Must be applied for by June 30, 2020!

Repayments will not commence until at least six months and no longer than twelve months.

Loan amount is the lesser of $10 mllion or 2.5 times your average monthly payroll in 2019 – EXCLUDING AMOUNTS OVER $100K ANNUALLY

IF the entire loan is used completely within eight weeks and is used for any of the following:

  • Payroll costs
  • Group health insurance premiums and other healthcare costs
  • Salaries and/or commissions
  • Rent
  • Mortgage interest (excluding amounts pre-paid)
  • Utilities
  • Other business interest incurred prior to February 15, 2020

It may be completely forgiven (NO TAXES IN ANY WAY OR PAY BACK) if the employer meets the following employee limits:

  1. The business must maintain the same number of employees (equivalents) from February 15, 2020 through June 30, 2020 as it did during either the same period in 2019 or
  2. from January 1, 2020 until February 15, 2020. To the extent this requirement is not met, the amount eligible for forgiveness will be reduced, ratably.

You may not cut any employees <$100k annually by more than 25% or they will not count towards the above headcount.

Have a Great “Payroll Protection Plan” 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

CARE ACT Review (Please Share, Especially With Individuals Taking or Who May Think They Have to Take RMD’s) – “RMD Required Minimum Distributions Waived in 2020!”

The following is most fitting for someone who may have taken RMD’s in the past, or think they may have to start this year!

The Care Act was signed into law on Friday, March 27, 2020 and includes a provision Waiving ALL RMD’s for the year 2020.

Required Minimum Distributions (RMD’s) Waived in 2020

All RMD’s for any and all mandatory plans are waived as of 2020.

This includes all types of RMD’s including those with the five year rule.

Next year will not mandate a doubling or catch up of the RMD.

Next years RMD will be on the higher mandated level, but again will not cause a duplicate/catch up.

Planning Tip:

Just because you do not have to take your RMD, does not mean you necessarily need to stop. Those taking regular monthly distributions may continue to do so. Those with larger pools of IRA type of assets may want to continue to do so, maximizing current income tax brackets. Those having no need or desire to take their RMD may want to happily skip this year!

Have a Great “Waived RMD” 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

CARE ACT Review (Please Share, Especially With Displaced Self Employed) – “The Pandemic Unemployment Insurance!”

The following is most fitting for someone displaced who is self employed!

Examples Include: Massage Therapist, Sports Instructors, Solo Medical Practitioners 

The Care Act was signed into law on Friday, March 27, 2020 and includes a provision called The Pandemic Unemployment Benefit – specifically for The Self Employed.

The Pandemic Unemployment Benefit

BREAK IN: At the time of writing this post, the Dallas Fort Worth Area are NOT allowing enrollment to this benefit at your local office as they are directing all to the Texas Website. Not surprisingly, they are very busy and the site is even having functioning problems. 

BREAK IN UPDATE :  It appears Texas is not ready yet and they are asking you to sign up for email notification…. Those in other states, suggest you check your states Twitter Feed for similar instructions!

img_6403

A New Pandemic Unemployment Benefit available to those effected by the Corona Virus.

This benefit is additionally available to those that may not have had access before, mainly self-employed individuals. (Normally Self Employed are not eligible for ANY type of Unemployment benefit.

This new benefit is $600/week and lasts for four months or until your displacement is over, whichever occurs first.

There is also the elimination of the first week waiting period, allowing those immediate access if needed.

Individuals already receiving Unemployment benefits will begin receiving this additional benefit with no offset of their prior benefit occurring effectively making this a complete bonus benefit.

This is a Federally backstopped program that is administered by each State, so the state will issue these benefits and there will be variances among different states.

Have a Great “Pandemic Insurance Benefit” 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

CARE ACT Review (Please Share, Especially with Someone You Know Who May Have Recently Moved) – “The Recovery Rebate!” – IMPORTANT *Update Your Address if You Recently Moved*

This is the first of a Multiple Part Series (4 or 5) on the CARE ACT … done in order of most touched by the bill. Due to the unique nature of the bill, (Far Reaching, Confusing, but needing expedited delivery and explanation), I am asking you share this with those that may be in need or find it helpful by pushing it forward to others via email.

The following is most fitting for someone you know that may have recently moved!

Over 90% of US tax payers will receive the following Recovery Rebate,making backlog and loss certain, the more streamlined we can be, the more help that will occur. 

The Care Act was signed into law on Friday, March 27, 2020 and includes a provision called the Recovery Rebate.

Break In : If you have moved or changed your bank account since your most recent Tax filing you need to file FORM 8822 to notify the IRS of your correct address.

The Recovery Rebate – Estimated 90% of Tax Payer Participation

Each person to receive $1200, kids UNDER age 17 credited to parents at $500 each, no limit in headcount.

This Rebate is NOT TAXABLE!

The payout is likely to be sent out end of April or early May!

Social Security recipients will receive theirs via their direct deposit account. Non Social Security recipients will receive their Rebate via the last known account on either your 2018 or 2019 tax return, whichever is more recent or directly to the address on file.

A letter will be sent to the last known address of your most recent tax return hopefully within two weeks of the bills signing with instructions on your calculation AND how the US Government intends to send you the rebate.

If you have moved recently or after you most recent tax filing date, YOU SHOULD FILE FORM 8822 ASAP for the IRS to update your address or you will likely not receive the notification letter, far complicating an already complicated situation.

Phase out

The applicable AGI phase out threshold amounts are as follows:

  • Married Joint: $150,000
  • Head of Household: $112,500
  • All Other Filers: $75,000

This phase out is based on either your 2018 or 2019 tax return, whichever is most recent. If your income exceeds the threshold and you are phased out completely, and your 2020 income is below the threshold when you file your 2020 tax return, you will receive your Recovery Rebate at the time of your 2020 filing.

Should your 2020 income rise above the thresholds but based on your prior years income you received the Rebate, YOU GET TO KEEP THE REBATE WITHOUT PENALTY OR TAX!

Planning Tip for those near or in the Phase Out Thresholds

If you have not filed your 2019 return, check to see which is lower, your 2018 or 2019, and if your 2018 is lower, do not file your 2019. Conversely, if your 2019 is lower file it immediately! You likely will not have to pay until the extended deadline of July 15, 2020 (Double check with your Tax Professional!)

CARES-Act-Economic-Relief-Proposed-Taxpayers-Refundable-Tax-Credits

Have a Great “Recovery Rebate” 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

Another Positive Friday …

Last weeks positive Friday garnered so many comments and Thank You’s that I thought it worth repeating as it’s so much easier to find negatives even if you are trying to avoid them…but there are lots of positives occurring.Unity hands-1939895_1280

  • On a very personal note, I’m happy to announce that my 92-year-old father was able to navigate the online virtual doctor appointment with complete success – Now if he can do it, we can do it if need be!
  • The Federal Reserve continues its policies and has begun adding liquidity to the Fixed Income Market – More on this soon
  • There was a $2 trillion stimulus package announced-which is wonderful news and helps bridge businesses and workers
  • It appears multiple countries are beginning to flatten the curve
  • Some parents may be finding out … it’s not the Teacher–hah – (Hat tip Cousin)
  • Spring is one week closer, its getting warmer … and the sun is up longer every day!
  • If we only had three more days like Wednesday we would be back to all time highs in the Capital Markets! (That will make you go hmmm- not kidding)
  • Our Country, Government and residents continue to work together in fantastic unity!

Have a GREAT “Positive” Friday and Weekend, Stay Safe!

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

On Line Study/Work Tips For Those At Home … Interview of a Two Year Veteran

We know many of you may be faced with children or young adults doing school work from home.  Long time followers know that the 15-year-old is in year two, working 100% online university … from home, airplane, coffee shop, or basically wherever.

As such, she granted this interview in part for her soon to be fully on-line schooled 12-year-old brother.img_6377

We made this semi-formal so that she would understand the seriousness of what we were trying to do, and also feel honored to be part of those of you who may be helped by her experiences over the last two years … I asked candidly and did not direct her…

Tips for Those Working From Home for School

What tips or suggestions have you learned over the last two years?

“It’s very easy to get behind make sure that you stay caught up …”

“On-line is more difficult for me than being in-school and listening to your teachers speak directly.”

“It’s a big adjustment socially as you will not be able to visit with your friends, and there is a void of social contact.”

“For me the school day is much shorter and I get more accomplished in a shorter period of time than I did at school, allowing for other activities such as Tennis.”

“I’ve learned to work anywhere, while I have my favorite places such as the formal dining room table, when necessary I can easily work in my room or most any other quiet place!”

“It’s very easy to get distracted with other devices or social media … stay away or you will get behind fast”

“Be prepared with good note taking skills and supplies and make sure that you keep up if you’re in a classroom lecture because you will not likely be able to ask a question.”

“Online foreign languages are very difficult to do!”

Thank you Sophia for the candid responses… I really was hoping she would say it got easier as she learned how to do it, but she was firm on her second point!

Here are a few from my perch…

Watch your posture, it is easy to get in a slump situation, especially with a laptop.

Take breaks and walk around, in an office environment, the water cooler does provide a break…not so much at the house.

I think clearer and am more creative when out of the office working … we will see if this has stamina..hah

Personally I like a bright place that I can see out and light shines in (some times even the back yard), the rest of the gang does not, as it cuts back on the Monitor light… each to their own!

A low volume wireless color printer has been invaluable … Ours was about $75 but the replacement cartridges are about the same as the printer cost…

Hope this helped!

Have a Good “At Home Tips” 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