Author Archives: John Kvale CFA, CFP

Consolidated Misc 1099’s Are Posted, Only One Week to First Corrected ‘s … Auto and Tech Collaboration Pre-View

As mentioned here, the all encompassing 1099 Misc Tax form posted to our Vaults last Friday afternoon … Expect good ole fashion paper versions to eventually make their way to our collective mailboxes…

We say eventually as the postal service is struggling with consistent delivery as mentioned here, and our continued experience as well. We actually received a Holiday Card last week that was post marked early December … not sure what happened, but it seems to continue.

Recall the 1099 Misc is a summary of all taxable investments, reported from all asset classes. Due to the multiple party reporting, there are frequently “Corrected” 1099 Misc forms as any one asset having a restatement mandates a completely new form.

Good News, next week will be our first Corrected Run and we should have a good idea of total correction quantities based on the first correction…. In years past we have had from almost everyone getting a correction, in which we ask everyone to hold off on filing until the next corrected run, to in most recent years only a handful of corrections, which gives us a soft green light to those ready to file sooner!

Auto Tech Collaboration Pre-View

Not sure if you have caught wind of this yet, but there has been a sudden partnering of Tech Companies with Auto manufacturers in somewhat hurried fashion …. We have taken note … the partnerships are occurring with heavy duty name brands and likewise Tech titans….

Look for more on this soon…. maybe later this week if we do not get another good Part II Capital Market Valuation chart…

Hope your team won last night…..

Have a Great “1099’s are here” 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

Client Only Special Post – Metropolitan Paperwork, Vault Chase Bank Linked Account holders… Friday

With almost 10 times more followers than actual clients we happily keep that in mind when we’re writing informational posts for everyone. This Friday post is actually just specifically for clients, so if you’re not a client we look forward to a possible more pertinent post on Monday, clients please read on!

Metropolitan Paperwork – Donald The Brain Has You Covered

Many of you have received some paperwork concerning Metropolitan life and transactions from a decade ago. It’s a big bundle of paperwork that we also have a copy in our office. Donald The Brain will be reviewing this and if action is necessary he’s able to upload information on a bulk basis, not only saving multiple paperwork hassles but saving all of us the angst of having to mail information back individually.

Chase Bank Linked Vaulters Please Re-Link

Those of you that have happily linked your Chase Bank Accounts to your vault we ask that you go back and re-link them as the linking interface has changed as of yesterday and needs refreshing. We apologize for the inconvenience but again greatly appreciate being able to see those balances and transactions in real time in our respective Chase accounts for our financial planning, safety, and continued upkeep, and tracking. This update is adding more stable linking features! YAY

So bottom line those of you with the Metropolitan paperwork you can trash it we’ve got you covered on this side, secondarily those Chase connections please refresh for all of our collective viewing !

Friday

That’s it, no more homework … it’s a Friday … enjoy your day enjoy, your weekend, will be back with you 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

Average Monthly Cost of Health Insurance for a 40 Year Old and Change Year over Year 2020 V 2021

Originally Planning a Part II of Our Market Valuation Series, started here, we decided to go a little lighter due to the lengthy January Review Video Posted Monday!

This from our Friends at Howmuch.net

Green is good and means the cost went down…. slightly counter intuitive…

Red is bad and means costs went up for our 40 year old!

The item we garnered from this, more rural areas are more likely to see a price decrease, with higher populated areas and increase….

Not sure if this is Covid related or normal… hopefully we can find another chart in the future for comparison!

Have a Great “40 Year Old Health Insurance Comparison” 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

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

Hello and Welcome to our January 2021 (First Monthly Review of the New Year) 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!

January 2021 Video – First of Year

YouTube

Financial Planning Tips

Required Minimum Distributions Now 72

As mentioned here in our post, do not feel bad if you lost track of changes, as in just over 12 months there were THREE – yes three major laws implemented.

Late December of 2019, the SECURE act (Setting Every Community Up for Retirement) among other things, upped the first mandatory RMD (Required Minimum Distributions) from Qualified/IRA/401k type plans to 72!

The Covid 19 related Cares Act passed in late March of 2020 nullified RMD’s for all of 2020, making for some confusion.

Second Stimulus Check Update

In this post, we review the new Stimulus check amounts, and where you can CAREFULLY go to check the status of your check…. here are the highlights…

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment.

Here is the link to the US Government tracking site:

https://www.irs.gov/coronavirus/get-my-payment

Once open need to Click on “Get My Payment” Tab

Be very careful when opening this site to NOT allow your browser to jump to any other site than that associated with the IRS as you will be asked for confidential information!

Capital Market Comments

Buffett Back Of Napkin Valuation Metric

After happily receiving an “OK” to reprint graphs directly from the CEO of this industry publication – Look Out, there are tons of Great Articles that we look forward to bringing you!

Up first, a great broad Buffett “Back of the Napkin” Market Value Metric- This is the Market Capitalization of the S&P 500 divided by the US Gross Domestic Production…. This measure has never been this high before- sending a warning signal for Current Valuations.

“Price is what you pay, value is what you get!”

Chart Via Jill Mislinski 1-5-21 (Advisor Perspectives)

Happy Start to the New Year!

Have a Great Day and Super Start to the New Year!

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

Tax Forms Update – Fastest Availability In Vault, Correction Schedules, Friday

With 2019 Tax Filing being delayed, it seems like we just put taxes to bed in many cases and BOOM here we are again !

The good news, is we all have not had time to forget all the forms and filings that usually occur with a full year of rest (Hopefully – haha!)

On another good news note, we are happy to announce ALL of your tax forms will be available the second they are completed on line in each of our personal Vaults – YAA!

Tax Forms Update-

As of last night as this post was coming together, most 1099 R’s (Distribution reporting from Qualified/IRA/Retirement plans) were complete. This makes sense as they are straight forward, any funds withdrawn are reported and that is that…..

The 1099 Misc is a different story. Recall it houses a summary of EVERY taxable investment, interest, dividends, Gains and Losses, and your first born – kidding on the last one – seeing if you are with me!

But given the massive amount of information collected from tons of different parties it’s no surprise that there were only a handful of these available per last nights peek – Was actually surprised there were any!

The majority of them will be out in the next few business days!

But Wait – Don’t grab that electronic 1099 Misc from your Vault, toss it into your Tax Software and hit send, just yet- We ALMOST ALWAYS ask you to hold off until the first corrected statements occur….

For the year 2020 the First corrected 1099 Misc, is February 19, 2021

Certainly it is fine to get started on your taxes either by forwarding your information to your tax professional or entering this information into your software (here is the 1099 Misc Instructions from our Vendor), but again, don’t hit send or let your tax professional hit send until we get past the first corrected statements.

On February 19, if we only have a couple of corrected statements we will let you carry on … but occasionally we have had almost all clients receive corrected’s, in which we keep you in the stable until the second corrected round occurs.

We will keep you updated on all fronts !

It’s a Friday, Have a Good Day and Weekend ! (Short here because long up 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

Warren Buffett, Back of the Napkin Market Valuation Tracker … Part 1 in Market Valuation Review Series

With on-line investment animal spirits accelerating in some of their antic spirits, we thought it a good time for a calmer, longer term view of some high level market valuation views.

Oh … have not heard of the animal spirits? …. Let me digress for just a minute. A collective group of folks are ganging up on companies that have large short interest. Short Interest? This means company’s who’s stocks have large amounts of investors betting the company will go bankrupt or at least eventually lose value. As we say often, when everyone is on one side of the trade/theory/belief, this can cause vulnerability on the opposite side. When a group gets together and buys in mass, a largely shorted company stock, it can cause a short squeeze, similar to the afore mentioned Tesla…

You may say “So What” and that is fair, but this can cause other areas of the market to become frothy (which we have been speaking of before) and it also speaks to the recklessness of a investor behaviors and their disregard for any type of safety.

Buffett VERY High Level Market Indicator Flashing Caution

Warren Buffett aka the Oracle of Omaha due to his investing prowess, rarely gives any of his broad market comments and always qualifies that he has no idea where the markets will go… as do we!

BUT,

Price is what you pay, Value is what we get!

Chart Via Jill Mislinski 1-5-21 (Advisor Perspectives)

That’s an all time high/expensive aka NOT CHEAP- just saying!

Let’s be careful out there! Anyone remember what cop show this quote was from?

Have a Great “Buffett Indicator Flashing Red” 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

An Interesting Look at Airbnb …

This neat chart here from our friends at Visual Capitalist shows interesting facts of a family favorite Airbnb..

The third chart is most interesting to us…. the huge number of listed rooms, which is not surprising upon further thought of the business model… individuals homes or second homes.

Have a Great “Airbnb Reviewed” 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

RMD (Required Minimum Distributions) Changed to Age 72 Reminder … Stimulus Payment Method Reminder … Friday!

Very late in 2019, which sometimes seems like an eternity ago, and with the waiving of mandatory distributions in 2020, due to several comments and questions this week we wanted to briefly remind folks.

RMD – Required Minimum Distributions Commence at age 72 Now!

This week we had several occasions to discuss and remind that as of December 2019 due to the Secure Act RMD’s (Required Minimum Distribution‘s) were moved up from age 70 1/2 to age 72. We will talk about this in much greater detail in our next quarter newsletter along with a more detailed post just directed at the RMD new age requirement and the various other items that were adjusted by the afore mentioned Secure Act!

Stimulus Payment Method Reminder

Also due to repeat conversations …always happy to have as you give us terrific content and others are certainly in the same situation … ok digressing… this week about the method of payment for the stimulus funds. As a reminder the IRS essentially issues us a rebate for the stimulus funds as such they’re using the banking instructions that they had on file for our 2019 tax return. If you had no banking instructions on file they will be mailing the stimulus.

Friday

OK sorry for being a little heavy on a rainy Friday .. here in Texas it’s been very overcast for almost a week which seems like a year this time of the year, but that’s OK enjoy your Friday … have a great weekend will talk to you 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

Our Goals Template … So Simple You Might Like it (KISS) …

This time of the year garners, new years resolutions, new goals, and all kinds of wonderful ideas for improvement in ourselves ….

Our Secret for Goals – KISS

Over the years, we have used huge, almost unlimited goals (you can insert New Year’s Resolutions here if you want) worksheets, templates, questionnaires and the like… only to be disappointed in short order, because they were so overwhelming, we couldn’t possibly meet the challenge….

KISS – Keep it Simple Silly

Shhh, don’t tell anyone, we have found a simple secret that has been working for us ….

Everyone at the office and the homestead have to participate… yes even the 13 year old…

So simple, but effective…

Tell me the at least three items you are most proud of in the past year and at least three that need improvements…

At the office we do a professional and personal version… do as many as you like, but the simplicity and positive tone seems to give it legs… at least for us!

Have a Great “Easy Goal Setting” 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

Where’s My Stimulus Check Link – BREAK IN- Possible Third Stimulus Information …. Friday, Reminder Monday Financial Institutions Closed, Early Day for Us Today!

The Appropriations Act of 2021, signed into law very late in December, as mentioned here, provided for a $600 per qualified person in your household, stimulus deposit.

With multiple data points of folks receiving their stimulus, most on January 4th or 5th of this month via ACH Deposit from the IRS, if you have not and were thinking you should…. read on!

BREAK IN – THIRD STIMULUS OUTLINE ANNOUNCED

Yesterday afternoon, the first crumbs of an outline of a third stimulus began hitting our screens. As mentioned in the original post (link above) there were some debate on a $600 or $2000 amount, with the afore mentioned $600 already being processed. The new stimulus plan, so far (not in law yet) calls for a $1400 amount, basically getting the total to the argued $2000 amount. Nothing iron clad yet, but since we were on he topic, thought we would give you a heads up….


Now back to our regularly scheduled Post!

Who and Where on the Stimulus Check

This stimulus deposit is being provided through the Internal Revenue Service office and as such they are using 2019 Tax Return information to send the stimulus. If you have had a change of bank account or other information since filing your 2019 US Tax Return there may be confusion on getting the funds to you.

Who is eligible for the second Economic Impact Payment?

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment.  Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child.  Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.  (This from the IRS site)

Here is the link to the US Government tracking site:

https://www.irs.gov/coronavirus/get-my-payment

Once open need to Click on “Get My Payment” Tab

Be very careful when opening this site to NOT allow your browser to jump to any other site than that associated with the IRS as you will be asked for confidential information!

Holiday Reminder

Monday, in honor of Martin Luther King (MLK), banks, Capital Markets and our offices will be closed. With kiddos hitting the ground via early release today, we will also be out of the office early in order to keep the streets safe (haha), but tethered electronically for emergency needs.

Have a Great 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.

jkfinancialinc

street-cents