Welcome to our Video and Audio Podcast Review of our Q4 2024 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.
Click the Download button below, for a direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page
Let’s get going! We hope you enjoy!
BREAK IN REMINDER – ARBORETUM … FANTASTIC CLOSE PARKING LOT … BE THERE OR BE SQUARE!!
Q4 2024 Newsletter
(YouTube)
Homeowners and Auto Insurance Skyrocketing
….The reason for the sudden increase in costs are multiple fold but predominantly a function of the increased values, that have occurred over the past few years in both Home and Auto asset prices. It makes total sense, if the value of something goes up it costs more to insure it, what is unusual is the second asset mentioned here automobiles. Autos usually do not go up in value. Given the weird dynamics of the past few years automobile prices actually did go up, and given the lag effect of insurance carriers catching up with those costs, and a somewhat hurried catchup given the cover of inflation, we are suddenly experiencing increased costs of rather large magnitude. Of course there are other factors such as weather, specifically dealing with homeowners prices. Here in Texas we have experienced that dramatically over the past several years and as a reminder, even if the occurrence such as a hurricane, flood or other, happened in another part of the state, most carriers have a broad enough net for their diversification, your neighbors in other parts of the state, may be subsidized by your premiums, just as they would have been if it were the other way around. ….
Building and Keep Good Credit
…..As financial planners we begrudgingly must admit order to build credit we are going to need to have a liability in the form of a loan. The most popular is a credit card followed by a student loan and then an automobile loan or a home mortgage. Any or all of the above will help build our credit. While it is not exactly clear, the credit rating agencies still keep some of the cards close to their vest, it appears that items such as credit cards and automobile loans have the most dramatic effect both positively and negatively on our credit reports. In order to build good credit use in nominal amounts of loans as it relates to our income and absolutely no late payments. Continued on time payments for an extended period of time will help build up our credit. Late payments or no payments for any reason will greatly hurt hour credit report much faster than building our credit report up!….
Parting Thoughts – Being smack dab in the middle of the once every four year political season, the historical facts of this once every four year time frame lead to a basic conclusion. The basic conclusion – while many will be elated and some disappointed – is the growth of the economy is the main driver of the capital market.
Talk to you in the Winter!
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
