Author Archives: John Kvale CFA, CFP

Posted in Investing/Financial Planning, Tax Related

Tagged Electronic Payment, IRS, IRS.Gov

Q 1 2021 Review – Three V’s: Vaccine, Volume of Money, Valuation

Posted on April 12, 2021 | Leave a comment

Vaccines, Volume of Money, Valuations

With the continued increase of the number of people getting the vaccine a much-welcomed sigh of relief is being felt across the country and most of the globe. Thankfully thus far the variance seems not to pose a terrible threat and most continue even post vaccine to take the appropriate precautions. This is leading to a slow Opening of the country and a light at the end of the tunnel heading back to some type of normalcy.

Volume of Money

The Federal Reserve (FOMC) led by Chairman Jerome Powell continue to buy assets at the rate of $120 billion a month. With a main goal of lowering the Unemployment rate, these funds of course are giving a boost to Capital Markets and providing massive volume liquidity.

Additionally, the Fed has short term rates at zero and has stated they intend to keep them there for some time. This is also a stimulus for certain parts of the economy, but also a boosting effect on Asset Prices.

With Fed controlled short interest rates being held low, longer term rates, notably on the 10-year US Treasury have been moving up in minor protest by bond vigilantes that economic stimulus may be too much, fortunately at this time there seems to be no effect.

With the FED on record saying that short term rates are deemed to stay low, their first move back to normalcy maybe to pair back the purchases. Our interest will be, when, and if this occurs, and more importantly, capital market participants reactions.

Valuations

As mentioned, multiple times in our blog at www.street-cents.com and again our Q2 2021 Newsletter, valuations by almost any metric are stretched.

While valuations may be a more somber note, the re-opening and vaccine completion rates should dribble into corporate earnings, the ultimate driver of capital markets and possibly provide a wonderful “Grow into our Valuation” affect.

If you asked us for our candid opinion, we would like capital markets to trend sideways while we grow into our valuations. Continued rise in capital markets could lead to a bumpier ride once the Fed adjust their policy.

We of course will be watching carefully! �

Sincerely,

John A. Kvale CFA, CFP

Posted in Clients/Clients Only, Economy, FOMC, Investing/Financial Planning, Market Comments, Performance Report Cover Letter, Retirement Planning

Tagged Cover Letter, Quarterly Cover Letter, Quarterly Performance Cover Letter

BREAK IN: Confusing Tax Due Dates – Q1 2021 ES Payments Due Next Week – A Few Clean Up Corrections … You Guys are Tough … Masters Weekend … Friday

Posted on April 9, 2021 | Leave a comment

BREAK IN – Q1 2021 ES Tax Payments are Due Next Week

Oh boy, let the confusion begin … Just when you thought the tax due dates could not get more confusing… The following hit my inbox this week!

https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-make-april-15-estimated-tax-payment

What this means is that Quarterly Q 1 ES 2021 (Income, interest, wages – anything you need to make a tax payment for) are due Next Thursday!

So, if you are scheduled to make ES payments for one reason or another, while Fed and State returns have been delayed, that ES Payment is still due next week!

As a reminder, use the mail at your own risk, we STRONGLY suggest you upload a payment at this IRS website https://www.irs.gov/payments!

Now back to our regular scheduled funny Friday Post!

Thanks so much for reading our posts…. we really do work hard on them…

Confession time for those who may have glanced over the father’s name of the Beverly Hillbillies in our Mineral Reminder Post… Jed, not Jud…. thanks to the MANY and counting who happily pointed out my mistake, you were really paying attention and also took time to humorously rib me – Well Done to you all!

I now know how to get a rise from you guys!

Secondly and more importantly, one of the links to the Social Security Website in our Social Security Post had a typo sending you to the Military service not Social Security… oops…

www.ssa.gov is the correct site.

It has been corrected in the post, but in order for you to receive it in your inbox/phone/device, I wanted to repeat here!

Ahh… Today is a Friday, heading into a Masters Weekend… ya ya the whole family are Tennis Players, but Golf Scholarships help get this one through College!

Enjoy your early Spring, Masters Friday and Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

Posted in Investing/Financial Planning, Tax Related

Tagged Correction, ES Payments, Q 1 ES Payment, SSA

Why You May Want to Accept that Seemingly Lowball Offer for that Small Royalty Interest You Have Acquired Some Time Ago …

Posted on April 7, 2021 | Leave a comment

While we all envy the person on television like Jud Clampett that receives some great news on a royalty interest, (or misses a rabbit only to hit oil) …in real life frequently this can be more trouble than gift.

Living in Texas a state that produces oil and natural gas royalty rights are very popular and frequently handed down from one generation to the next.

Continued Disposition Problems

We are continuing to run into an ever increasing number of need to dispose of seemingly small mineral right properties that maybe had an offer at one time or another that actually cost more to dispose of them the offer.

Please don’t run out and dump that long ago relative’s income producing oil or gas property that has been in the family for years producing a nice monthly check … but the hundred dollar or seemingly worthless offer for that very small parcel of land that has a very small mineral right may be a good offer not only from a small tax reporting over the years that you may have to do but also from an organization standpoint in your estate.

While there are exceptions and of course when oil prices were in the mid 100s there were extreme cases of payments, it is very likely if you are receiving a very nominal amount of money from your mineral interest over the past decade that that mineral interest likely has very little value and maybe more of a burden to you from a tax standpoint and especially to your heirs from an estate cleaning standpoint than it’s worth.

No Need to Be Reckless – Do some Research

This is once again not an endorsement to go recklessly sell the mass form of income property but rather a recommendation to maybe think twice and do a little research when receiving a seemingly low offer by a professional mineral person who wants to consolidate his portfolio and take that interest off of your hands!

Have a Great “Cleaner Estate” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

Q 2 2021 J.K. Financial, Inc Newsletter Download

Posted in Estate Planning, General Financial Planning, Investing/Financial Planning, Tax Related, Why

Tagged Estate Plan, Estate Planning, Mineral, Mineral Rights, Oil, Royalty Interest

Q2 2021 J.K. Financial, Inc. Newsletter … Video Audio Podcast Review – Reminders ! By John Kvale

Posted on April 5, 2021 | Leave a comment

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!

Q 2 2021 Newsletter

(YouTube)

Social Security Earnings Record Check Reminder

In our lead article of the Q 2 2021 Newsletter, we remind all of the importance of checking your Social Security Record, no matter your thoughts on the longevity of Social Security….

Additionally we walk you through step by step on how to do this and also how to set up your SSA on line account!

Secure Act – Possibly Forgotten But Important Changes

With the passing of the SECURE act, the old age of 70.5 mandatory RMD (Required Minimum Distribution) was pushed to age 72.

Many times, it is not appropriate to wait until this age, depending on the location of some assets. EX Large IRA compared to other non iRA investment, Tax Brackets, One Off income Years

For those where it is appropriate to wait until the latest possible date, you can actually wait until the year AFTER you turn 72 as long at you take the distribution before April 1 of the year AFTER turning 72.

Warning, in almost all cases we discourage this last maximum delayed technique as it ends up forcing two RMD’s in the same tax year of your 73 birthday.

Buffet Valuation Indicator

Warren Buffett, the usually closed lip investor, years ago mentioned his macro Valuation indicator which is shown below.

It has never flashed “Over Valuation” as much as it is now!

Expecting tremendous Earnings Growth to help turn this indicator around and head the other direction!

We hope you enjoy … talk to you in the Summer!

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

Posted in Investing/Financial Planning, Newsletters, Podcast, Retirement Planning, Social Security, Video

Tagged Required Minimum Distribution, RMD, Secure Act, Social Security, Social Security Earnings History, Warren Buffett

Good Friday Holiday – Markets Closed

Posted on April 2, 2021 | Leave a comment

Today is Friday, Good Friday actually … which is a Holiday for most public offices and Capital Markets…

Our office is closed as well!

Happy Friday and Good Friday!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

Posted in John Kvale, Personal

Tagged Friday, Good Friday

March 2021 Financial Planning and Capital Market Review – By John Kvale

Posted on March 31, 2021 | Leave a comment

Hello and Welcome to our March 2021 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

March 2021 Video

Financial Planning Tips

TWO HANDY REMINDER POSTS – CREDIT REPORT AND SOCIAL SECURITY EARNINGS CREDITS

We had not one but two really good reminder posts over the last four weeks, on which is featured in the Newsletter in great detail and one that is a handy annual reminder – hat tip DK!

Here in this post we highlight why and how you can check your credit report. This is a really good thing to do at least annually to see if there are any barnacles attached to your credit, thereby lowering it and possibly causing other costs in your life to increase i.e. as mentioned in the insurance.

Here in this second post and again also featured in the Newsletter, why you should check to make sure you are getting credit for those hard earned tax dollars being sent to the Social Security Administration AND very importantly a reminder to look for missing credits in your history!

STIMULUS CHECK UPDATE

In this post, we detailed the planning techniques associated with the third round of $1400 stimulus checks and what to watch out for as well as the new cliff thresholds of phase outs… further detailed with the following chart:

Capital Market Comments

MAXIMUM MACRO ECONOMICS COMING SOON

Not every trying to be a trend setter or first into the pool – we accidentally beat most of the regular commentators here in this post to the fact that there are likely some VERY HOT ECONOMIC numbers coming our way.

These will occur due to easy comparisons associated with the drop in Economic activity about a year ago as well as continued lift off as we open up for business once again.

There will be interesting dialogue in the Headlines – Be for warned much of this may be skewed by the afore mentioned!

Have a Great Day, Talk to You at the End of April!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

Posted in Audio, General Financial Planning, Investing/Financial Planning, Monthly Review, Tax Related

March 2021 Financial Planning and Capital Market Review – By John Kvale

Posted on March 31, 2021 | Leave a comment

Hello and Welcome to our March 2021 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

March 2021 Video

YouTube

Financial Planning Tips

Two Handy Reminder Posts – Credit Report and Social Security Earnings Credits

We had not one but two really good reminder posts over the last four weeks, on which is featured in the Newsletter in great detail and one that is a handy annual reminder – hat tip DK!

Stimulus Check Update

March 2020 Review, Annual Reminders Credit Report and Social Security Eearn

Capital Market Comments

Maximum Macro Economics Coming Soon

These will occur due to easy comparisons associated with the drop in Economic activity about a year ago as well as continued lift off as we open up for business once again.

There will be interesting dialogue in the Headlines – Be for warned much of this may be skewed by the afore mentioned!

Have a Great Day, Talk to You at the End of April!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.