November 2016 Video, Financial Planning Tip and Economic Review- By John Kvale

Here is our November 2016, Financial Planning Tip and Monthly Economic Review, along with a Video for your viewing and listening pleasure. Hope you enjoy!

November 2016 Video


Financial Planning Tip –

Check that 401k or other retirement plan for maximum contribution

  • $18k is the maximum deferral for most 401k and other similar plans, especially in the corporate arena
  • Those at age 50 or greater get another $6k- added to above is $24k total!
  • Without regard to the company match, max this total amount if possible
  • Taking a peek at your YTD paystub will confirm your deferral amount
  • If you are not there, turn the jets on and up your withholdings
  • When January comes, be sure to lower the deferral rate

Capital Market Movement

Stunning Move in Interest Rates

We have crowed for months (maybe longer) that too low of rates could be a hamper on the Economy, doing more harm than good. We are not changing our tune now!

This from our Mid-Year 2016 Newsletter and JPMorgan:


Initial headwinds, may occur but eventual greater fixed income returns may be around the corner.

When rates first go up, bond prices drop…the longer the term (i.e. 30 year) the more they drop. Eventually as bonds mature and re-invest at higher rates, the net result is bigger income …. ignore the top line for a while, just enjoy soon higher income may be advisable.

5 Year (Shorter) Rates Move



This is the 5 year treasury…. yea the 5 year, that is a short time frame. It was under 1% just a bit back in our rear view mirror. Today, near 1.8%, which is where the 10 year was recently.

Barring some type of crisis, a rate increase in the super short fed funds rate (think checking accounts) should be on the docket for December. 

Oh, did we mention there was election this month?

Have a Great Day!

See you in 2017 !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
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