Category Archives: Education

Moody’s Credit Agency Jumps on Board and Downgrades 10 Banks along with “Keep an Eye Out” for More ….

Just Friday we mentioned Fitch Credit Agency Played Eye Spy and downgraded the USA credit worthiness by a very small amount from AAA to AA+…. the Eye Spy was due in part to the very large government spending acceleration number that showed up in the overzealous GDP print ….

Not to be outdone, a fellow credit agency, Moody’s chimed in as well

Moody’s Downgrades 10 Banks – Keep an eye on Others

As reported here by Reuters, Moody’s jumped into the pool and downgraded a slew of banks as well as put many on watch….

As mentioned in our post on the Fitch Downgrade, the US interest rates moved up after the ratings increase…. it would be expected all banks involved to see their standards tighten as well as their borrowing costs rise as well….

Why is this important you may ask?

This second rating decrease, by Moody’s will in effect help the FOMC in their pursuit of slowing the economy. Banks will broadly tighten lending standards!!

Have a Great “Moody’s Jumps into the Pool Downgrade” 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

The Top 100 Most Valuable Brands of 2023 from our Friends at Visual Capitalist …

Happy Monday and how about a lighter post for our early week, get back into the saddle, Monday….

From our buds at Visual Capitalist

The top 10 list view for those of that fonder persuasion view!

The small things like FAST Internet are re-appreciated!

Have a Great “Top 100 Brands” 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

With the Ninth FIFA World Champions Women Soccer Underway …. How about a Look Back of Prior Events

The FIFA Women’s World Cup Soccer is underway… here is the main page

Our buds at of course… Visual Capitalist pushed the following chart into the email box and garnered our attention…..

Tons more information at both links above, if you have a spare moment!

What grabbed our attention was the terrific showing the US Women have had over the years… Wow…

Very Well Done!

Have a Great “Go USA Women’s FIFA Tourney” 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

July 2023 Audio Video Review – RMD Reminder -AI – Cyber – FOMC on the Brakes – Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our July 2023 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!

BREAK IN – CLIENTS – Early RMD

July 2023 Video


YouTube

Financial Planning Tip(s)

AI – Artificial Intelligence Update – Great but Not Saving the World

In this timely post (in our humble opinion – IMHO) we revisit the latest rage… AI – Artificial Intelligence – very similar to Dot.com in our opinion… So we try to clarify…

Oh… Here is a GREAT YouTube resource for explaining AI – Christopher Penn a Marketing Expert we have long followed

From the Post:

AI – Artificial Intelligence Today explained

Program assigns a number to all the words in the English Language – other languages too of course.

Cluster of huge computers located somewhere inexpensive scans everything it can get its eyes on, and tags the patterns of the numbers from the words it has scanned…

Not kidding, this is it!

Cyber Reminder –

They are at it again…. Watch out!

Capital Market Comments

Go Powell Go – Rates a 24 Year High – Both Feet On the Brakes!

Careful what we ask for….

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

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

AI Explained in Simple Terms … Managing the Hype a bit … Conclusions from Explanation …

Whew … the fascination, hype (over hype), popularity and sexy coolness factor of Artificial Intelligence aka AI is astounding… Maybe getting over done here… Let’s bring this back down to Earth with the following simple Explanation ….

Heck, earlier this week, see below an AI Assistant popped up here on our WordPress blog platform…

Oh, by the way in less than 10 minutes ran this by the Mrs. and the graduating 18 year old, 15 year old techie was still asleep, and they got it … Hopefully can keep this short and simple here in words!

AI – Artificial Intelligence Today explained

Program assigns a number to all the words in the English Language – other languages too of course.

Cluster of huge computers located somewhere inexpensive scans everything it can get its eyes on, and tags the patterns of the numbers from the words it has scanned…

Not kidding, this is it!

Type in a question on an AI platform? Computer checks its numerical patterns from huge above, and gives you an answer!

Inferred Limitation

Original Content – By definition, it can only be a repeat of a pattern answer, nothing new and original, but put together parts from prior information…sure some may argue here… YES AI created this picture!

Huge Advantage

Repeatable, structured tasks… Think data entry, non creative programming, redundant tasks!

And that is it…. Wonderful possibilities, great time saver, will effect a lot of people, but hold on… Not going to solve all the worlds problems! Hoping for funny “Back to Earth” sarcasm here!

Have a Great “AI 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

Experiences, Tips and Techniques, with Short Term Rentals… Airbnb and VRBO …

After multiple parts of the country and likely nearing mid double digit (50) times of renting short term Rentals (Airbnb and VRBO) …. (while this is mostly a financial and economic venue and discussion, it is also a money saving and best use of that hard earned capital)… We wanted to share the experiences in order to possibly bend your learning curve upward faster than normal, especially if you are new to short term rental!

So here are findings from the large number of experiences we have had over the last multiple years…

Generally you get what you pay for – We have found, within some boundaries of course, you generally get what you pay for… there have been some surprises, but with rustic being welcomed and unsafe shunned, rarely has there been disappointment!

Short Term Rentals allow Comforts of Home and Pets – For those of you new to the short term rental experience, most come with a full kitchen, washer and dryer and even allow pets… Check the fine print for deposits and when screening for pet friendlies and expect narrower options…. You may not have ALL the luxuries of home, but never have we experienced not enough to get by… hopefully not jinxing here..haha

Longer is a Better Use of Capital – There are vast variances in service and cleaning charges, but generally, much like taking one class versus taking a full load (College on the brain with the oldest heading off in a few weeks) staying for at least near a week and NOT overnight ever, has minimized the cost, and maximized pleasure of the trip as well… yaa yaa, we do work remote frequently, which lends itself to longer trips, but it is very likely an overnight stay is best completed at a traditional hotel… We also find that the daily rate drop with more nights, which makes sense, longer term and less turnover is appealing to owners!

Cancellations can Vary Dramatically – A small window of 24 hours or so is the norm for getting some of your funds back, to a less frequent full free return the day before is our experience… Read the find print CAREFULLY … It is their property and their rules… lack of knowledge can be frustrating for all parties but is really our responsibility as a renter! OH…. we had insurance on a long stay during the lock down… after careful review and multiple LOOOONG calls it was discovered it would not pay – a nice visit with the management company garnered a one year extension at an even better location! yay

Take the Reviews with a Grain of Salt – Bad experiences seem to garner more emotion than good ones… think about it, a bad meal at a restaurant sticks with you WAY longer than a really good one, and has greater long term effects and expectations… It is likely not every person can be made happy, and that handful may chirp in the form of a bad review, check out the subject matter and ask yourself if that would have really garnered a comment if you had experienced the same? One Caveat, if you see a repeated comment, such as “Only one elevator, long lines to get in” repeated over and over, there may be a structural problem at issue…. but something like, “Stairs are terrible” to a walk up, may be over the top critical!

Airbnb V VRBO – Airbnb is larger and has a greater number of options according to Wall Street Public records… Our experience and again this is just ours…. it appears that VRBO may have more economical prices, but again, review the first bullet… “We get what we pay for!”

Repetition May Garner Perks – Just like the frequency programs of Airlines, we have found repeat rentals lead to perks. During lock down, we repeatedly rented a place near a local lake. After a few rentals, the owner offered earlier check ins, later check outs and even a free day …. We are always careful … well – see next!

Don’t Be Afraid to Ask – If you have a question, ask before you rent… you want to all be on the same page in expectations. If it is not a good match, move on and they will do the same… Hey some like white cars and some of us like black… not wrong but personal preferences…. Just ask for clarity!

You get back what you put out – Not lecturing here, but our experiences have always been good. We really try to be courteous to the owner, landlord, neighbors and anyone we deal with… While we have had only one owner fraudulently take our money, in less than 24 hours it was refunded by the service AND they helped us find other accommodations … Sure other experiences may differ, but we find you get back what you put out!

With summer travels in full swing based on the traffic in our neighborhood, emails from the field (haha not kidding here), and the garage at our office… thought this might be a fun “light” post for your viewing pleasures!

Oh… and those of you that may question, we do not personally have a Rental, only like to be a good renter and have found the above experiences best practices for a mutually great outcome!

Have a Great “Short Term Rental Tips” 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

June 2023 Audio Video Review -Student Loan Update – Candid Kaplan Review – Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our June 2023 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!

June 2023 Video


YouTube

Financial Planning Tip(s)

Student Loan Update – No forgiveness – BUT story not over

Supreme knocks the loan forgiveness down – BUT plans continue – story not over !

There are plans to delay the repayments, what will be interesting to see if interest starts acrueing again and the end result of the forgiveness… stay tuned, likely not over!

Capital Market Comments

Robert Kaplan gets Candid – Accidentally Lets Rabbit out of the Hat

In a stumbled upon podcast, we discover some accidental VERY candid comments from former Dallas Federal Reserve chair, Robert Kaplan, here in this post.

  • There are still TONS of stimulus in the system – We new it!
  • Higher for Longer
  • Good Ole Boys Club – New it again!

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

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

May 2023 Audio Video Review – Buffet/Munger Words of Wisdom, Debt Ceiling, – Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our May 2023 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!

May 2023 Video –


YouTube

Financial Planning Tip(s)

Berkshire Hathaway – Buffett Munger Words to Live By

In this post Charlie Munger and Warren Buffet are discussed in great details… along with a secret to speeding the time to listen (1.75x speed)…..

Main thoughts to live by from Charlie and Warren:

  • The world is full of foolish gamblers, and they will not do as well as the patient investor.
  • If you don’t see the world the way it is, it’s like judging something through a distorted lens.
  • All I want to know is where I’m going to die, so I’ll never go there. And a related thought:
    Early on, write your desired obituary – and then behave accordingly.
  • If you don’t care whether you are rational or not, you won’t work on it. Then you will stay
    irrational and get lousy results.
  • Patience can be learned. Having a long attention span and the ability to concentrate on one
    thing for a long time is a huge advantage.
  • There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous. A string of wonderful numbers times zero will always equal zero.

Particularly added this as just last week, saw a review of the meeting that completely missed several of these points in my opinion.

Capital Market Comments

Debt Ceiling Fizzle- All done until after next elections

With several comments from the field, we spoke multiple times, here and here about the Debt Ceiling, the history and the most likely outcome…

Much of our confidence on the matter comes from our contacts that we have developed over the years that try to give us a 100% straight scoop as much as possible…. They could always be wrong, but being numbers folks, we go with the odds…

They were right, once again!

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

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

Berkshire Hathaway Annual Meeting, Buffet Munger Analysis, Thoughts, High Points, Words to Live by and be Successful According to them …

On May 5-6 of 2023, the Annual Shareholder Meeting of Berkshire Hathaway (BH) occurred… if you are not familiar with BH, here is a nice review from Wikipedia.

At 92 (Warren Buffett) and 99 (Charlie Munger) a 7 hour marathon where random, unscripted questions are answered in very good form (if we could all be so lucky) makes for great theatre and some what of a cult like experience…

Until just a few years ago, thanks in part to the lockdown years, BH meetings … while not secret, were behind closed doors and demanded in-person attendance, even if one had to sit in the hall outside of the actual area of the meeting and watch a live feed of the event… today as noted, earlier in our pre-view post not only can you access the event live, but also in replay with the ability to turn up the speed !

Personal High Points of Interest from the Sped Up meeting (Live by comments at end):

Neither man would rather live in a different country or location, even while there are of course, short comings,

Warren would not mind starting over today with nothing, to see if he could do it again, Charlie, not so much.

Charlie: China and the US should just get along, do business together and jointly prosper, rather than bowing up to each other for perceived dominance. Was Russia in the day, today China. (Large Applause)

Not withstanding point one, the bifurcation and hatred in society is disheartening, unproductive and destructive according to both men.

Buffet reversed course on a $5 billion investment in a semiconductor company located in Taiwan due to tension, location and likely provoking point three above.

100 Year Plan/Dream/Desire (question from audience) Buffet explains to operate a Company that compliments society, is good for society and has good people working for it. (Simple, fresh, positive!)

Vice: NetJets – Charlie still rides in coach, even on NJ – Expensive, but worth it according to Warren, especially on overseas extended trips.

Absolutely bash (and do not care for), Venture Capitalists and Private Equity guys at every chance and state that at the onset of most deals, they are already looking for the escape hatch/sale.

BH is actually too big to make agile, more aggressive and growth like investments, which prevents it from being a growth like company. (Reiterated for years now)

Management Skill recommendation – “Phrase by name, criticize by category!”

Live on less then you earn to keep stress down.

You do not have to be lucky to make it.

Be nice to people.

Get toxic people out of your life.

From the infamous Buffett Shareholder letter, released 2-25-23

  • The world is full of foolish gamblers, and they will not do as well as the patient investor.
  • If you don’t see the world the way it is, it’s like judging something through a distorted lens.
  • All I want to know is where I’m going to die, so I’ll never go there. And a related thought:
    Early on, write your desired obituary – and then behave accordingly.
  • If you don’t care whether you are rational or not, you won’t work on it. Then you will stay
    irrational and get lousy results.
  • Patience can be learned. Having a long attention span and the ability to concentrate on one
    thing for a long time is a huge advantage.
  • There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous. A string of wonderful numbers times zero will always equal zero.

Remember, these are Warren and Charlie thoughts, only with a few comments and notes from us!

Have a Happy “Oracle of Omaha’s” 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

Kastle Back to Work… Stuck on Half Way! Effects beginning to be seen …

It has been a while since we previewed one of our favorite resources from the lock down. A chance article, below, rekindled our attention. We have added more observations.

Per the article:

A San Francisco office building was worth $300 million before the pandemic. Now, it could sell for only $60 million — a perfect example of why downtowns are in trouble

Kastle Systems Analysis and Barometer

Latest release

Publicly trade REIT – Real Estate Investment Trust – Actual Company withheld purposely (Public Venue) – Specializes in office space Assets

About a 75% drop in value. Not sure if the office headcount stays away, but certain office buildings are bearing the brunt!

Have a Great “Kastle Office Asset Analysis” 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