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!
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.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!
Background
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.
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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
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.
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.
www.jkfinancialinc.com
www.street-cents.com
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