Category Archives: Investing/Financial Planning

1099 Update – Corrected Update – Reminder, a Paper Copy is being mailed UNLESS you specifically turned it off – Holiday Weekend !

Those that follow us know we had a fun conference last week and pretty much burned the candle at both ends… We look forward to bringing you more soon!

Being the last of the four in my gang to NOT get the winter sore throat or flu… and after bragging about not getting sick AT ALL the last four years, those three fingers pointing back at myself came home to roost… GIANT head ache Saturday followed by sandpaper in my throat Monday morning… on the down hill side now….

Corrected 1099 Update1099 sho

Yesterday we sent a blast email out to all of the lucky ones who will be receiving a corrected 1099 printed and mailed one week from today …

If you did not receive the email, so far you are in the clear….

EVERYONE will receive a paper copy of their 1099 – even if you receive electronic copies of everything else – unless you specifically turned your tax copies off – no one we know of has done this and this is the one item we do not recommend you turn off unless you REALLY want to!

Holiday Weekend

Today is Friday, heading into a Presidents Day Weekend – you know the drill … banks, capital markets and those buildings holding our little ones hostage during the day will be closed on Monday – mandating our offices are closed as well… all good, again!

Have a Great “Presidents Day Weekend” Friday!

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

Wealthiest and Lowest Counties in Every State along with Greatest Differences – Check Your Own State – Friends at Visual Capitalist

We continue to be fascinated with these neat graphics from our friends at Visual Capitalist.

Something about putting the information in Graphic form that makes is easier to read and well…. just more interesting.

If your like us, we immediately go to our home area to see the results!

The very last graphic shows the greatest differences – big city versus a very rural area, usually!

Enjoy:

wealthiest-poorest-counties-us-1070

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

 

 

 

Job Change or Retirement? Here is a great reminder checklist – Updated

Books get updated and reprinted on a regular basis. This post is originally from several years back, but worthy of a re-post/update regularly!

So Important

Maybe you are about to Retire… CONGRATULATIONS ! ……Or maybe you are about to change jobs… exciting new times, just around the corner…

Here are a few handy reminders before/as you leave!

Job/Retirement Change ChecklistFinanicial Planning Doc

Grab that Last paycheck– Once you are gone, the internal system may be harder to access, be sure to get your last paycheck downloaded for your tax and personal recordkeeping.

RSU -Options- Grants -Make sure you are not leaving anything on the table via a vesting sunset or time line that can be associated with your departure.

Employee Stock Purchase Plan-Confirm you have control of your stock and transfer it to an easily controlled account-most ESPP plans are only holding tanks and cumbersome to make transactions.

Deferred Comp– Check on when your plan will be paying you your funds- i.e. tax year, time frame, and if all at once or over several series of payments- confirm the payments method and where they will be sent if mailed.

Pension – Get a copy of your latest balance or estimated amount, time frame of payment, if the projection is inclusive of your departure, if your spouse is included as beneficiary and his/her date of birth is correct and MOST IMPORTANTLY your correct address.

Health Coverage– You do not want to go a day without coverage, make sure you have some type of overlap such as Cobra, New company coverage, Medicare or outside personal coverage.

UPDATED NEW REMINDER – Long Term Health Coverage– If you have been at your employer some time (10+ Years usually), check to see if some type of retirement health coverage options are available. Frequently these have a one time option of opting in and if you leave, you will NEVER get another chance. We have found these to be very good options in certain cases.

401k– In most instances you want to take control of your old 401k by rolling into a self directed IRA. Make sure your final paycheck withholding has hit your 401k before you roll it over or there will be residual amount later.

New 401k– In most cases you want to allocate your new 401k aggressively- be careful NOT to overfund your old and new plan in the same year- most maximums are $18k (+$6k catch up) – If your two employers do not know about each other they may accidentally allow you to overfund the total afore mentioned amount

Severance– Be sure to get your arms around the type, amount, timing and pay and benefits.

Social Security Withholding – Withholdings may likely be over withheld since your two employers did not know about each other – keep good tax records- if they did, you get a refund.

While mentioned several times, once more due to just how important, be sure to keep your address up to date with your former employer !

Have a great ‘More Organized” Day!

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

West Coast Conference Update – Donald “The Brain” Shines – JK Almost ends up on CNBC – Friday

The conference kicked off Wednesday afternoon in full force.

Donald “The Brain” Wife, and Youngest FINALLY arrived after the first leg of their flight was cancelled…. New connection through Phoenix –  no that will not work, connecting flight already departed … Connection, and layover in Vegas works – Finally arrived…

Opening Ceremonies

Early yesterday the conference officially began…

tda-san-diego-opening.jpg

Opening ceremonies are always cool!

TDA San Diego Opening 2

Donald “The Brain” Shines

Later in the day, a full room of folks looking to gain knowledge of the systems “The Brain” knows well…

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A question from the audience near the middle of his TWO HOUR event!

Almost on CNBC

Meanwhile, yours truly, while searching for the Video shoot area … stumbled confidently into a live, on-sight CNBC interview –

“Hey, do you have a 10:30 am slot scheduled?”  “Yes we do, get ready!”

Just as the make up person was about to hit my face and the camera crew were adding a mic, a discovery was made that I WAS NOT the next guest, but merely in the wrong place… go figure…

Thought that host looked familiar…

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Glad to announce, lots of great items to bring back from the trip….

Today …. late, we end up back home – Glad to be away …  Glad to be back…

Have a Great Friday – We will try to stay off accidental live TV today!

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

Why almost EVERYONE needs Bonds in their Portfolios

In true Tortoise and the Hare like fashion from the old school fable …..rabbit-2414356__480

There’s a tug-of-war that goes on between the turtle and the hare…..

We all know the ending, although some endings have changed over the years, but stay with us for just a second, as we bring a financial parallel to our fable.

In our interesting story, bonds are the Tortoise and the Hare are Equities/stocks.

Why most need Tortoise/Bonds in their portfoliosturtle-863336__480

Bonds are truly like the Tortoise as they’re more slow running, BUT also importantly, slow to lose value. 

Equities/stocks carry Hare like returns that generally, over the longer term are faster,  but in true Hare like fashion, can get really sidetracked at times (think October – December of 2018 Amateur hour time.)

Here is the Great News in our Story – You can do both!

The good news about investing, unlike the fable is that you don’t just have to be one or the other, but you can mix.

We would argue that mature (larger or for more mature folks) portfolios need a Tortoise for stability during bad times as well as the yummy income that bonds produce!

As the portfolio grows or the income needs rise, more Tortoise may be needed.

Early portfolios that have heavy contributions can frequently be all Hare/Equities/Stocks as the contributions making up a great percentage of the portfolio act like a stabilizing Tortoise.

Normal progressions may be 75% Hare, then 50% then 40% and 25% or less Hare are frequently ok …. with the remaining portions being Tortoise of course….

One of our favorites are 50/50 Hare to Tortoise ….

Another great part of having both in a portfolio is they tend to offset themselves naturally during bad times – when Hare/Equity/Stocks get smacked, almost inevitably Tortoise/Bonds have a field day – multiple reasons such as interest rates dropping when Equities rise and visa versa, as well as a Tortoise safe haven…

There are always unique situations such as all Tortoise due to immediate need or just dislike of volatility and all Hare when there are no needs for the future.

Look for a greater depth information in our coming Newsletter with possible follow up items and details here.

Needless to say we are fond of both the Hare and Tortoise.

Thanks for accommodating our juvenile humor!

Have a Great “Tortoise and the Hare” 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

 

Preview: Donald “The Brain” On Deck Speaker – History of Our Software – Annual Conference of Thousands – Travels

Mid-week, we (DC and I) travel to the West Coast for an annual gathering of thousands of our peers, along with consultants, asset firms, and as many technology firms that you could shake a stick at…. with a new cell phone (and more importantly camera and battery), twitter followers ( @johnkvale ) can check some pictures that will be posted – and of course we will have items here as well… hopefully later this week….

A History of Planning Technology

Technology allows great things as most everyone knows. Over the last several decades, the Financial Planning and Portfolio Management process has adopted technology… as has our firm.

Originally the seemingly unstoppable power of Excel continued to improve speed, make for greater accuracy, and ever detailed specifications.

As a firm, we gravitated from the powers of Excel (Once upon a time this was done with pencil and paper – we know some that still do it this way today!) on to a heavy server burdening system, then on to a slightly lighter in house/on-line system, finally to the web based/full on-line systems (each time with much heartache and heartburn.)

Enter Donald “The Brain

Donald “The Brain” On Deck this WeekDonald Capone

With an almost from scratch to modern day software background as mentioned above  – Excel to server/web/cloud systems, Donald, who has always been in charge of this, immediately understood the challenges, necessary views, and possibilities when an all-new, completely cloud based on-line system became available.

As a Beta tester, and later almost a technology consultant (offered up enhancements that were eagerly accepted) Donald has been a go-to person for our modern day software and the firm that created it!

In the spirit of helping as many as possible, Donald will be on panels during the annual conference this week helping fellow advisors understand the power, simplicity, accuracy and productivity enhancements that we utilize, much to our software providers pleasure.

It is a great honor to be asked to do this before thousands of your peers- Well Done DC!

Spirit of the Conferencemeetings-1149198__480

We know what your thinking … big party that you get to write off the expenses? Once upon a time many years ago – maybe! NOT TODAY – showing our age I guess…haha

Today, we have a working list of items to review with various providers (all of the team has been gathering wish lists and needed understanding items for the last month from each perspective), multiple meetings as soon as we hit the ground, specific questions from you guys/clients in the field on certain subject matters, as well as a full schedule of planned viewing of panels of others, that we are not specialists in!

Several years ago, while solo and a morning of too much coffee, multiple new items were agreed upon and contracts signed ( i.e. New Web site provider, other tech services). Upon return, the gang was NOT happy (sorry guys) as we tried to digest everything over the next several months… we have learned to keep things bite size, but we will certainly stay informed!

Look for an informative post on Wednesday as we travel, then likely a brief post of Friday as we make our way back home, with frequent twitter posts and likely a deluge of posts here once we get our feet back on the ground …. stay tuned – Can you tell we are excited and ready to go?

Have a Great “Inform and get informed” Day/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

January 2019 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our January 2019 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 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!

January – 2019 Video

Financial Planning Tip (s) –

Get and Earlier than normal start on those Taxestaxes control-1027103_1280

Here in this post, we remind everyone that due to the new tax laws, it will be a good idea to get your tax information to your professional as soon as possible.

If your using tax software, be sure to do the recommended updates as we feel certain there will be necessary updates to the tables along the way.

Corrected 1099’s are the usual, with only a few last year, we will give everyone the green light once we get our first round of corrected tax forms – but again go ahead and get started with your taxes!

Stunning Findings about your old employer 401kabonded dawn-3358468__480

We had long suspected as much, but in this post we review a Cerulli study that interviewed over 800 401k providers, only to find out that less than 30% really want your funds once you leave.

We have experienced less than stellar service over the years with former employees 401k plans – leading to our long suspicion of these findings.

Make Pension Changes/Decisions Carefullythumbs-up-2056022__480

While our favorite commencement benefit for pensions (100% jt survivor) is fairly straight forward, the simplicity ends there.

In this post, we review recent trends in buy outs and what to watch for, as well as the many scenarios we have experienced that are not always in our best interest.

Capital Market Comments –

Good News – Recovery without a Re-test – So far

What a different a month makes – WOW! We literally have gone from the sky is falling to sunshine!

In our summary post in December, we mentioned that fast moving slumps, such as the one we had, frequently do not last long….

Here, earlier in the month we also mentioned that we fully expected some type of retest of those lows before we gained our footing.

We still do expect some type of re-test, but as of this date we have had the following positives that have added to the markets better mood:

  1. Federal Reserve (FOMC) have turned very cautious about raising rates further (We are happily surprised at their yielding, and even more surprised at market participants joy)
  2. Tariff talks are making progress – Interestingly, China has seen a slow down in their economy making for slightly more urgent talks – with a little compromise and statesmanship a resolve looks more likely – again a positive for capital markets.
  3. Earnings are still cranking along – For the prior 4-6 quarters, earnings were red hot and hitting on all cylinders, so hot, they were not sustainable. Companies are still reporting good earnings, just not the Red Hot, overheated earnings from prior quarters – this is good news as it avails the FOMC to not have to raise rates to slow the economy –

All in all a Win- Win!

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.
www.jkfinancialinc.com
street-cents