Author Archives: John Kvale CFA, CFP

Signs of a less aggressive FOMC/Jerome Powell ? …  First time in a long time less happy to see the longest daylight day of the year pass …   Summer Friday heading into Fourth of July …

Mid this week FOMC chair Jerome Powell in front of a legislative public speaking event, for the first time mentioned that the FOMC could not decrease oil prices and food prices via faster interest rate hikes.

OK, we may take issue with this slightly because if they beat demand down enough, it will most certainly put headwinds to higher prices of both of these assets. However more importantly, this was possibly the first sign of a less aggressive FOMC, again shared by Jerome Powell.

Instantaneously capital markets took notice of the comments with a much happier tone as did interest rates with an extremely happier tone as well…

Interestingly, and speaking out loud to everyone our thoughts, just two weeks ago, a much harsher tone was voiced by Powell …given that fact, it’s way too soon to say the FOMC has taken their foot off the brake a little bit ….. Heck we still have a lot of economic data to get through for the next few quarters… some of which may be very hot and could have the federal reserve reverse course once again… but maybe it is a start..

We will be watching, but wanted to let you know a possible interesting breadcrumb that occurred this week.

Hot Hot Hot

With an unusually, extremely, hot summer shaping up here in the south, breaking hundred degree days by the week, we wave goodbye to the longest day of the year with less sorrow this year and a  bit of trepidation on what August … the seasonally hottest month of the year may bring.

Kvale front yard, watered daily !

Still better than ice and snow that no one here, present party included, knows how to drive on!

Today is a Friday, getting near Fourth of July midpoint of the year, enjoy your day and your weekend, and if you’re near us, stay hydrated and be careful out there!

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

Back to Basics Fun Educational Review – Part Seven – Investing … KISS (Keep It Simple Silly) Next to Last Review

Welcome back to Part Seven of our “Back to Basics” series .. we hope you’ve enjoyed the First Six which started with all about “The Emergency Fund” in Part 1Part 2 being “Protection Planning” and Part 3 discussing All about Debt Planning or “The Good the Bad and the Ugly of Debt”, Part 4 Retirement PlanningPart Five, Back to Basics Education Planning, Part Six, Estate Planning Made Easy and now, the next to last Review… Investing – Not to Worry we will keep this simple and straight forward…

As a reminder this is a high level Financial Planning Education like overview, starting with the basics of and we will continue into advanced topics in order of Planning Importance.  

Investing – It’s Not that Hard – Many Make Paralysis through Analysis

The most important part, save as early and as much as you can and make sure you can make it through the bad times without hitting the eject button.

Investing, specifically investing in the capital markets, can sometimes seem extremely confusing and often times can have paralysis through analysis.

In the spirit of staying with our back to basics theme, we are once again going to lay this out and have what we think very easy to understand format.

Stocks versus Bonds

While we realize there are many different types of investments, for the subject of this series were just going to keep it straight forward and talk about the basic two stocks and bonds.

Stocks a.k.a. Equities

These investments can be made via indexes, individually, mutual funds or various other wrappers .. the most important thing to understand about stocks also known as equity investments, are they for ownership of publicly traded companies.

The second most important thing to know that this asset type is they can be volatile. Major indexes can endure drop by 40 even 50% at times.

Allocations to these instruments should be made with this in mind.

All of the above being said, generally the younger and longer-term … the greater an allocation can be made to these higher volatile but generally greater returning vehicles.

Bonds a.k.a. Fixed Income

Just like stocks, bonds can be wrapped in indexes, mutual funds, individual and there are various different types.

Bonds are the tortoise, whereas stocks are the hare. Generally bonds have a much lower risk profile and therefore are much less volatile, especially with higher quality bonds.

Lower quality bonds, also known as high-yield bonds have characteristics more similar to stocks and should be thought of that way during allocations.

The Most Important Part of Investing – KISS

While many analysis dig so deep into investments that it makes your eyes glaze over, there are really two important parts of investing. KISS – Keep is simple silly

  • 1. Save as much as you possibly can, and s early as you can.
  • 2. Make sure your allocation above is such that during rough rainy times, a.k.a. slowdown/recession you do not eject and sell. Our human nature of fight or flight will take you out of your investment portfolio at exactly the wrong time if you are over allocated to risky investments.

There you have it…. The keys to investing and investment!

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

Banks, Capital Markets, Government Offices Closed Today …

Last week we spoke of the sneaky quick Q2 ES Tax Payment due to a shortened government calendar of only 60 days from our regular Tax Filing date in April….

Today is a the second annual observance of Juneteenth, which was actually yesterday June 19, 2022 but observed today…

Neat positive thing…. we have been crowing over higher interest rates in almost every metric… today our fixed income safe money will be working extra hard for us… holiday or not!

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

Milestone Passed, Over 2000 Posts – Wow !… Hopefully We Continue to Get Better … Friday

Just by chance, the stats portion of our blog site here at http://www.street-cents.com popped up and there was an official new front digit on the posts….

Well over 2000 posts…. WOW…. Can you believe we have had that much to say? … Be Nice…haha

Where Viewers Reside

Pretty much all over the world…. Isn’t technology neat!

Who knew Alaska likes us so much??

Actual Breakdown of Countries

United States 49056 India 1254 Canada 1168 Germany 1036 Netherlands 952 United Kingdom 947 Brazil 655 China 607 France 546 Philippines 438 Australia 405 Japan 322 Russia 249 Hong Kong SAR China 231 Ireland 220 Italy 200 Belgium 184 Singapore 174 Switzerland 156 United Arab Emirates 143 Finland 142 South Africa 142 Malaysia 141 Bangladesh 138 Pakistan 136 Thailand 126 Spain 124 Sweden 122 Indonesia 111 South Korea 110 European Union 105 Taiwan 98 Turkey 96 Ukraine 92 Mexico 81 Denmark 79 Saudi Arabia 79 Poland 77 Israel 75 Ethiopia 75 Austria 75 Czech Republic 73 Norway 64 Portugal 62 Greece 55 Nigeria 52 Romania 50 Argentina 49 Sri Lanka 46 Slovakia 44 Hungary 41 Ecuador 41 Chile 39 Colombia 37 Egypt 36 New Zealand 35 Uganda 33 Qatar 33 Luxembourg 30 Croatia 30 Peru 29 Bulgaria 29 Zimbabwe 26 Kenya 23 Vietnam 23 Kuwait 22 Puerto Rico 22 Venezuela 22 Serbia 21 Ghana 20 Mauritius 19 Morocco 19 Estonia 17 Oman 17 Nepal 15 Georgia 15 Bahamas 14 Costa Rica 14 Jordan 12 Slovenia 12 Jamaica 12 Albania 12 Myanmar (Burma) 12 Cyprus 12 Tanzania 10 Trinidad & Tobago 10 Honduras 10 Malta 10 Togo 9 Cambodia 9 Bahrain 9 Tunisia 9 Lithuania 9 Angola 8 Uruguay 8 Iceland 8 Guatemala 7 Latvia 7 Macedonia 7 Rwanda 7 American Samoa 7 Lebanon 6 Algeria 6 Brunei 6 Belarus 6 Namibia 6 Dominican Republic 6 Zambia 6 Azerbaijan 6 Bosnia & Herzegovina 6 Paraguay 5 Micronesia 5 Cayman Islands 5 Afghanistan 5 Moldova 5 Fiji 4 Mozambique 4 El Salvador 4 Bolivia 4 Barbados 3 Uzbekistan 3 Kazakhstan 3 Curaçao 3 Mali 3 Bhutan 3 Seychelles 3 Panama 3 Nicaragua 3 Papua New Guinea 3 South Sudan 3 Laos 3 Palestinian Territories 3 Iraq 2 Madagascar 2 Guam 2 St. Lucia 2 Mongolia 2 U.S. Virgin Islands 2 Syria 2 Bermuda 2 Malawi 2 Sudan 2 Jersey 2 Macau SAR China 2 Gibraltar 2 St. Helena 2 Botswana 1 Guadeloupe 1 Andorra 1 Liberia 1 Libya 1 Dominica 1 Sierra Leone 1 Haiti 1 Cape Verde 1 Cameroon 1 Guernsey 1 Senegal 1 Gambia 1 Guyana 1 Caribbean Netherlands 1 Mauritania 1 St. Kitts & Nevis 1

Ahhhh…. today is a Friday… enjoy your day and your weekend….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

The Sneaky Short Calendar Time ES Payment Due Date … Q2 ES Payment Due Today!

This Estimated Tax due date ALWAYS sneaks up on us… and it did again this year…

Why?

Note the short window from April to June – only 60 days…Yikes….

No matter, today is the day for Q 2 ES Tax Payments!

Tax Due Dates

Payment Due Dates
You can pay all of your estimated tax by April 18, 2022, or
in four equal amounts by the dates shown below.
1st payment . . . . . . . . . . . . . . . . . April 18, 2022
2nd payment . . . . . . . . . . . . . . . . June 15, 2022
3rd payment . . . . . . . . . . . . . . . . . Sept. 15, 2022
4th payment . . . . . . . . . . . . . . . . . Jan. 17, 2023*

  • You don’t have to make the payment due January 17,
    2023, if you file your 2022 tax return by January 31, 2023,
    and pay the entire balance due with your return.

Electronic Payment of ES Taxes

Here is the IRS tax website link, which is very easy to make electronic estimated taxes. Be sure to follow the instructions carefully as there are a lot of different options for making payments to taxes, and be sure to carefully enter your personal information so the IRS knows it’s you.

We recommend you do this electronically if at all possible…. the mail is still having issues!

Have a Great “Sneaky ES Tax Reminder” 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

CPI (Consumer Price Index) – Inflation Measure Holds High — FOMC (Federal Open Market Committee) Green Light for Continued Tightening …

Last Friday, June 10, 2022 the BLS (Bureau Of Labor Statistics) released their monthly data on the CPI (Consumer Price Index – Great Analysis Link Here) Most blunt measure of inflation — Ok lots of abbreviations but stick with us for the main takeaways…

For the record we called a possible top here, and while the increase of the CPI was only .4% than the prior month, it was NOT a deceleration YET…

Bottom Line Result

Cutting to the chase for those with little time – This hotter report will give the FOMC (Federal Open Market Committee) led by Jerome Powell a green light for further tightening faster – creating a faster slowing of the economy…

Quick FOMC Fed Funds Analysis – The Rate Increase Measure

(Take note once again, the first rate hikes on far left of chart took three years…. the next rate hike cycle ..one in middle right, took almost FOUR years… this one MAY be literally months… again this fits our thesis of headwinds came fast and are behind us (Look Forward not Back)– had to put that plug in while we were on the topic…)

CPI Analysis – What’s the Hold Up

With Owners Equivalent Rent/shelter being a very large portion of the CPI component…. its fast turn around is holding the CPI Up along with food inflation as well….

Note that far right movement up….

Oh and oil prices moving higher did not help either…..

Bottom line, continued FOMC rate increases, faster slowing of the economy, eventually… lower interest rates faster …..

Sorry for the heavy Monday, but wanted to get it out there to you guys as it helps us clarify as well!

Have a Great ” Sticky CPI Explained” 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

Newsletter Up to Six Positives… Can We Get to Ten? Thanks for the Tons of Compliments on Wednesday Used Auto Post … Summer Friday yay… Stay Hydrated!

As mentioned last week, the Newsletter is in creation form. With our new format of shorter pieces and more of them … we hit the road in this Newsletter to point out some positives.

It’s easy to find negatives, if you’re like me those hit you in the face almost daily … and are very hard to avoid, but positives on the other hand, can be a bit harder to find.

Not to worry we’re good hunters.

We Understand Why Musicians May Never Know What’s Going to be a HIT!

Wednesdays post, or small story of an actual event about possible crooked used auto offers … hit a chord like we’ve not seen in quite some time. We were contacted from all across the United States and even from some on foreign soil. The funny thing is is we never know what’s going to be a hit … but we really appreciate it when we do, and we thank everyone for taking a moment to read our posts as we know time can be ones most precious commodity.

If you missed it here is a link to one of our more popular posts of recent time. We’re not going to publicly say what dealership it was, we will privately if you want to know, but again thanks for taking time to read our posts and even greater thanks for reaching out to us about it!

Ahhhhhh … but today is a Friday, heading into a 100+ heat index Weekend, stay hydrated, be safe, enjoy, and spend time with those special in your life.

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

Local Used Car Shady Offer Real Life Story … Beware!

So we all know the prices of used cars have gone up dramatically and there is a lack of inventory.

For the record we’ve been following an index that is showing the prices are finally beginning to roll over, the Manheim index… digressing…

Shady at Best, Rip Off at Worst

One of the largest, and maybe former most prestigious major auto dealers in the Dallas Texas area was responsible for the following actions:

Mom of a high school seniors’ late model car takes the car to the aforementioned dealership due to an instrument light giving a check engine warning signal.

The formerly reputable dealership does a so-called detailed analysis of the car, only to return with the horrible news that the motor is completely shot and the car is worthless.

But wait, the dealer offers to gladly take the high school seniors’ late model …and only form of transportation off of his mother’s hands for $4000.

Disturbed by the whole situation and uncertain as to which direction to go … mother returns the allegedly ailing car back home to plan an appropriate path forward.

About 7 to 10 days later, plans still uncertain… the dealer calls and has an increased offer of $6000, out of the kindness of their heart.

Still with no plans for a replacement, no movement by the mother or family!

In an “You can’t make this Up Moment”, about a week later a new offer of $10,000 was made from the same dealer, once again via phone call!

With an offer of well over twice the original offer, a second opinion for the alleged ailing car was in order.

A trip to the neighboring auto shop, and $50 later the automobile was not only completely fixed but told it should last at least another hundred thousand miles and was in terrific shape.

Make what you want of this experience, sadly, this offer was only discovered because of the premium repeated offers did not ask the smell test.

Happily, the senior now has wheels and is much more appreciative of those wheels now!

Have a Great “Keep Your Used Car Offer Guard Up” 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

Worlds Biggest Wind Turbines … From our Friends at Visual Capitalist …

With Oil prices moving north… noted especially after being away from the local streets for a few days… the following neat graphic from our Friends at Visual Capitalist sent this to our inbox last week…

Neat facts from the article:

Here are four of the biggest wind turbine models on the market right now, the companies that are making them, and where the prototypes are being installed:

ModelCompanyNameplate capacity (MW)LocationHeight (m)Blade Length (m)Rotor Diameter (m)
MySE 16.0-242MingYang Smart Energy16 MW🇨🇳264118242
SG 14-236 DDSiemens Gamesa14 MW🇩🇰Site Specific115236
Haliade-XGeneral Electric14 MW🇳🇱260107220
V236-15.0Vestas15 MW🇩🇰280116236

Have a Great “Wind Turbine” 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

Summer Friday … On the Way Back Home … Jen’s Turn Next Week …

Today is an early Summer Friday and our post Memorial Day family trip is wrapping up, bringing us back to the familiarity of our home, office and pets….

It was a super fun trip, with a slightly lighter work load, no TV – yep not a one, weak WiFi (still able to do the month end video post), Q3 Newsletter commencement (a positive look on things), sunshine, ET/east time (a favorite due to the early sunrise), fishing, and great family discussion time… oh and some terrific coffee too!

Next week we are back in the saddle… and with an eye on staggered off time, Jen get’s her shot… not to worry, being Financial Planners, we plan in advance… Donald “The Brain” gets his time in as well, later in the Summer…. we all sharpen the knife with some time away!

Ahhhh… but as mentioned earlier, today is a Friday… enjoy your day, the weekend … 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

Summer Friday