Category Archives: Education

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

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

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

Back to Basics Fun Educational Review – Part Five – Education Planning … The 529 – The Not to 529!

Welcome back to Part Five of our “Back to Basics” series .. we hope you’ve enjoyed the First Four which started with all about “The Emergency Fund” in Part 1 … with Part 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 Planning and now we happily bring you Part Five Back to Basics Education Planning!

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.  

Did you notice we put Retirement Planning BEFORE Education planning? Do you recall in Part 3 in Debt Planning we said one of the few good debts are educational related debts ….We of course are not advocating Student debt/loans… but they are available in abundance and again not a bad debt. There are not retirement planning loans…. just saying!

Education Planning

Very similar to the most important parts of retirement planning, education planning carries many of the same qualities but with a few caveats:

  1. Start Early and if you do consider a 529 plan due to the tax free compounding features.
  2. With many states giving you a state income tax bracket break for your 529 contributions … making those states a green light to fund a 529 right up to the years a student is about to attend or is even attending –
    1. Planning Strategy– if you are very near the student using the 529, only fund the amount needed to get the deduction on the state level. Those residing in states where there is no state income tax deductions have far less benefits to the late funding/in and out of 529 state deductible contributions.
    2. Second Planning strategy– late funding plans of any type should be in VERY safe almost emergency funds like asset classes since their use will be so fast.
    3. Third Planning strategy– Do not overfund a 529 as if you do there can be stiff tax penalties for non-educational uses.
  3. Think of educational funds as fast use retirement funds, therefore make sure the allocations are very conservative as the child approaches use age.
  4. Make it easy for Grandparents and others to contribute to an Educational fund, we find other generations very frequently help with Educational Funding since they also know the importance, but may be more set in their retirement funds…

Education Costs are Increasing Fast

Not withstanding the above warning of overfunding a 529 plan, understand that higher education costs are rising very quickly as noted here in detail and be sure to plan accordingly … here is our favorite chart on the Growth of Student Loans:

Have a Great “Education Planning” 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

Great Chart from Our Friends at Visual Capitalist – Wind Electricity Generation By State … Care to Guess Which State Produces the Most? Surprised

With an annual pilgrimage to the cooler climate, north west and a higher altitude during the month of August … The first family member to see the gigantic Windmills always takes note as sort of a land mark in getting closer….

While we have collectively noticed more of said Windmills, and seeing them sooner… no idea of the country dominance of our southern state in Wind Generation Electricity…

Visual Capitalist – Wind Generation By State

From our Friends Here at Visual Capitalist

For those interested here is a neat video of just how those Windmills (Wind Turbines) work.

Have a Great “Wind Electricity Generating” 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

February 2022 Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our February 2022 … 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 thoughts and current events!

Hope you enjoy!

February 2022 Video

YouTube

Financial Planning Tip(s)

Third In Back to Basics Series – “Debt Planning”

The third post of a neat (well we think so) new idea, series we discuss “Protection Planning” !

This series is a review of the basics, and will serve as somewhat of a semester study of the Financial Planning foundations all the way to more advanced topics later in the series…. We plan on a mid month release of each part and somewhere south of double digit parts…. possibly with a video added to each for additional insights…. thanks in advance for sharing with those who may find this series helpful….

In this Debt Planning section we cover from a high level …

The Good, the Bad and the Ugly Forms of Debt

Yes there are some debts that or ok, but there are also some that are very much sinners….

Review that Social Security Statement

In this annual reminder post, receiving a weekend email alert directly form the Social Security Administration our review was set in motion and a new post was born….

Happily as mentioned in the post, the SSA had updated the site and there are really neat new features such as a graph for delayed benefits and a neat spousal calculator.. Well done guys!

Please be sure to take 5 minutes and review that your hard earned earnings are being credited to your Social Security Benefit/Number!

Capital Market Comments

Interest Rates Jump Ahead of Fed – Short Term Pressure on Bonds Long Term Gain

While this post concerning how the bond markets, more specifically the two year and ten year treasuries front run the FOMC (Federal Open Market Committee) we also want to remind that such movement, especially seen in the two year treasury puts pressure (lowers) on the value of the bond but also ups the income from the bond……

So initial headwind, and eventual tail wind…yay

Re-Review “The Anatomy of a Slowdown/Recession” the Snap Back

With market jitters creating headlines and lower values, in this post we reviewed our luckily timed lead article in our Q 1 2022 Newsletter article, called the “Anatomy of a Slowdown”

The main purpose of the article and the re-run is to remind everyone INCLUDING OURSELVES, slowdowns (markets dropping in value) do occur, and while we don’t want them to, they do anyway!

In this post, we review three very large what we coined snap backs…. large rallies of 5%-to over 10% which are for some reason very confusing during slow down times and also tend to totally ignore headlines…

No idea for sure WHY they happen, just know they do … thought worth reminding as some great questions came in on the subject.

Have a Great Day, Talk to You at the End of March! Going fast this 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

Updated Comments on CPI (Consumer Price Index) aka Inflation … Is it Still Accelerating or Not?

Last week the FOMC (Federal Open Market Committee) led by chair Jerome Powell at a regularly scheduled meeting and post meeting Video Interview, aggressively commented that they are going to wind down the monthly purchase of fixed instruments and plan on raising short term interest rates to thwart the inflationary pressures, mainly the backward looking CPI (Consumer Price Index) readings reported by the BLS (Bureau of Labor Statics) …. On a side note, ever notice how darn many acronyms are used in Economics….OK digressing…

We can debate the source of the inflationary pressures, supply chain, wages, oil or other matters…

On that note, here is the link to the BLS weighting of the CPI, it is a measly 320 lines long…. complicated to say the least…

But there are possible signs of a slowing already…

Certainly cannot see it in the year over year data below….

But the monthly change in CPI looks a little different…

Not making a call, just an observation… We will be watching!

Have a Great “CPI Updated” 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 2022 Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our January 2022 … the First Month Review of 2022 – YAY … 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 thoughts and current events!

Hope you enjoy!

January 2022 Video

YouTube

Financial Planning Tip(s)

Second In Back to Basics Series – “Protection Planning”

The second post of a neat (well we think so) new idea, series we discuss “Protection Planning” !

This series is a review of the basics, and will serve as somewhat of a semester study of the Financial Planning foundations all the way to more advanced topics later in the series…. We plan on a mid month release of each part and somewhere south of double digit parts…. possibly with a video added to each for additional insights…. thanks in advance for sharing with those who may find this series helpful….

In this Protection Planning section we cover from a high level … Health, Auto/Home/Umbrella and Life Insurance basics and best ways to implement !

New Uniform Table Gives RMD Break – We are all Younger!

In this post we highlight as the calendar turned, we are all viewed as younger (actually the tables have us living longer- semantics)…

A very important result of this change is to give those mandated by RMD’s (Required Minimum Distributions) relief…. since the tables in effect make us younger/living longer, less money is demanded out (Uncle Sam wants his taxes) thereby lowering taxable income!

Capital Market Comments

Re-Review “The Anatomy of a Slowdown/Recession”

With market jitters creating headlines and lower values, in this post we reviewed our luckily timed lead article in our Q 1 2022 Newsletter article, called the “Anatomy of a Slowdown”

The main purpose of the article and the re-run is to remind everyone INCLUDING OURSELVES, slowdowns (markets dropping in value) do occur, and while we don’t want them to, they do anyway!

In this post, we review the following chart and outline the normal 9-12 month slowdown time line… very much unlike the last three we have experienced…

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

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

December 2021 Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our December 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 thoughts and current events!

Hope you enjoy!

December 2021 Video

YouTube

Financial Planning Tip(s)

First In Back to Basics Series – “The Emergency Fund”

In the inaugural post of a neat (well we think so) new idea, here in our Back to Basics series we discuss the all important Emergency fund.

This series is a review of the basics, and will serve as somewhat of a semester study of the Financial Planning foundations all the way to more advanced topics later in the series…. We plan on a mid month release of each part and somewhere south of double digit parts…. possibly with a video added to each for additional insights…. thanks in advance for sharing with those who may find this series helpful….

With the FOMC holding rates low currently, we remind that the Emergency fund is NOT investment funds, and as such may earn little if any interest in the current environment…. but that is ok, it needs to be safe, safe safe and very liquid!

We also discuss the size of the Emergency fund, depending on your situation!

FHFA Raises Conforming Mortgage Loan Amount

This post came to us due to the much larger than normal increase in the confirming (non-jumbo) loan increase amount. We have spoken at length on inflationary increases in a variety of assets, this includes homes and this much larger than normal increase in the non-jumbo Mortgage amount to $647,200 will be helpful in allowing more entry to many into the Residential Housing market, here is the actual article. and here is the link to the FHFA announcement…..

Capital Market Comments

Interest Rates and the FOMC – On Two Different Pages at Time of Post

With such importance on interest rates, the possible raising of the rates and the FOMC’s (Federal Open Market Committee) adjustment of rates…..

This post on FOMC’s rate increases, versus what the Markets are pricing in, was at the time very different. With Markets pricing in an increase in mid year of about 20% and AT THE TIME FOMC members saying a late 2022 if at all increase.

Fast forward to today and both the markets and the FOMC are saying a 60% increases in the Fed funds rate around March may be in the cards…. hmmmm

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

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

NFT’s (Non-Fungible Tokens) … Explained … Ecosystems

We are certainly not recommending these as an investment, but we are watching the development of NFT’s and as such, thought it worth giving you a little background on them… of course a great chart from our friends at Visual Capitalist set us on our way….

NFT Definition

This from Investopedia

WHAT YOU NEED TO KNOW

  • NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
  • NFTs can be used to represent real-world items like artwork and real-estate.
  • “Tokeninzing” these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.
  • NFTs can also be used to represent peoples identities, property rights, and more.

NFT’s and Their Ecosystems

This great Chart from our friends at Visual Capitalist:

What are NFTs? The NFT Ecosystem, Explained

Have a Great “NFT’s 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