Category Archives: Investing/Financial Planning

Cyber Thief Update – We have some good news – Clever new tactic to watch out

The last several years marked double digit cyber invasive events through us and our friends and clients at the start of the year, peaking at tax time. Topping out at a new high last year with 12 invasive events.

This year we’re happy to announce that total threats were low single digits.

However, we did hear of a unique new trick from the tricksters worth noting.

The Social Security TrickCyber Attack

This year through our peer study groups we heard of one of the most clever Cyber tactics in recent memory. This Cyber attack involves signing up for your Social Security, but not being you, and depositing your Social Security into someone else’s account.

Bottom line if you receive ANYTHING from the Social Security thanking you for commencing your services for whatever reason, check into it may be fraudulent …. likely is if you have not had any interaction with the Social Security Administration!

Wish the thieves spent as much time working productive as they do destructively … the world would be a better place…… but we digress!

Have a Great Less Social Security Cyber Attacks Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

Once Upon a Time there was a Tax Season that just would not Go Away ! … Friday Travels …

We actually look forward to Tax Season……

Rolling up our sleeves and helping everyone with basis finds, forgotten tax deductions, duplicate Social Security withholdings, long lost medical expenses finds ….

Just like the changing of actual season – Welcoming summer now … by the time it is over, we are ready for the next season!

A Tax Season that Would Not End  Uncle Sam

So the traditional April 15th deadline was extended to Monday the 16th since the usual day fell on the weekend… only to be extended another day due to a Holiday conflict, only to be extended ANOTHER day due to technical difficulties.

We warned multiple parties NOT to wire or move money on Tax Deadline day because it was the busiest money moving day of the year … We had no idea the US Government website would go down due to all the activity!

Note to self next year, let’s really be sure to stay away from moving money around tax deadline time.

Either way … We made it!

Now time to begin working through all the NEW TAX laws…. bring em on!

Quick Travel Trip

Today the schedule includes a quick turn around trip, only to return early tomorrow in time for a #1 Seed Tennis Tournament that includes a bye in the first round for the 13 year old … giving just enough time to make the match, assuming the flight is on time …. maybe plenty if the 100% chance of Rain holds …

Oh…the Uber driver is here !

Talk to you next week, we have some great items to talk about…but that is next week … Enjoy your weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


A Few Data Points on Current Valuations

Earlier this week a friend asked me about the recent volatility in Capital Markets … which by the way are really just going back to normal times ….

My Answer ….

“We got ahead of ourselves and valuations are a bit high!”

His comment …

No way, earnings are good, markets cannot be overvalued!”

Let’s take a look and see for ourselves?

Check Points on Current Valuations

Price Earnings of the S&P 500

4-17-18 PE Ratio SP 500

Currently 24 with a  long term average of 15

Shiller or CAPE Price Earnings – 10 year average Price Earnings

4-17-18 Cape Ratio SP 500

Currently 32 with a long term average around 17

Price to Book Value

4-17-18 Price to Book SP 500

Currently 3.31 with a  long term average of 2.75

So what does it all mean?

We are not WAY overvalued, overvalued compared to historical averages ….we are not cheap either …. but still maybe ahead of ourselves … leading to a good excuse for battle grounds and perceived volatility (again, really just back to the normal).

Want the Good News?

Right now earning are expected to grow about 15-20% this year. If they do, and the capital markets do not go up that much, (very likely) we are now less overvalued, and risk may be lower!

Bottom Line … Patience this year will be needed!

Have a Great “Valuation 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.



Foreign Bank and Financial Accounts- FBAR New Filing Date Reminder — Friday

Several years ago the IRS mandated new rules on FBAR – Foreign Holdings Reports on your US Tax return greatly increasing the number of folks that have to report .. Don’t Forget!

Report of Foreign Bank and Financial Accounts – FBARForeign money photo-1514903972551-c828aec4146e

You likely know who you are as the IRS has increased the number of folks that need to report Foreign Holdings by lowering many of the thresh-holds of foreign funds.

What you may have forgotten is the new filing date is also the same as our regular filing date, next week.

Here is the IRS link on the matter, we just wanted to remind you just one more time…. Heads up, don’t forget!

Today is a Friday heading into … you guessed it .. a tennis tournament weekend for the 13 year old. No travels, no rain, perfect weather AND an A Draw match, finally … Looking forward to it!

Have a Great Weekend… See ya 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.

Super Busy … Procrastinators …. Here is your Tax Savior … The Automatic Extension

Life gets in the way, it’s a busy time of the year .. heck, life is busy!

No matter how busy we are, the IRS wants some sort of response.

The Automatic ExtensionUncle Sam

Here’s how to file your automatic extension for several different types of returns.

While we give you the link and the information to file an automatic extension … it’s pretty easy, be sure to make a rough estimate of your taxes – and if you owe pay an estimate with your extension. The penalties for under paying your taxes are pretty big and grow exponentially the longer you wait.

Assuming you just ran out of time or are missing a document, here are your links to the various automatic extension violence.

  • Form 4868 – This for automatic extension of your Personal Tax Return aka 1040
  • Form 7004 – This for automatic extension of your Trust Return – 1041 among others

By filing this extension you get until October 15, 2018 to file – but don’t wait till then let’s get this done sooner rather than later!

Have a Happy “Soon to be Filed” tax return day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

First Quarter 2018 Cover Letter Review

In true Groundhog like fashion, Capital Markets, after getting way ahead of themselves early in the quarter, saw their shadow only to turn, run and hide.

Included in the newsletter, which we sent early to give everyone a chance to view and remind of the tax strategies, is an article about the VIX and its reverse brother the XIV. These funny products along with the more recently noted tariff talk has been the recent excuse for capital markets to act like a bashful Groundhog.

The reality is capital markets got way ahead of themselves and needed time to rest. From our perch we would much rather them rest go sideways or even down a little bit, rather than getting WAY ahead of themselves like they did early in the quarter, only to quickly revert and likely overshoot to the downside.

Interest Rate Increase

In this most recent quarter we did just digest another small interest rate increase. Our new Federal Reserve Chairman Powell, looks to continue the gradual increase rates, slowly normalizing short term interest rates, and continuing on the path left by his predecessor Janet Yellen.

Capital Markets have a very unique way of signaling Interest rates have been raised too far called an inverted yield curve. Look for rhetoric about an inverted yield curve soon, as the historic importance and accuracy of this effect are in our crosshairs at this time.

Consumer and Earnings

With an economy that is two thirds driven by the consumer, a happy and spending consumer along with company earnings, which are beginning to digest the new tax reform, lead to a good backdrop.

As we mentioned in our Newsletters and repeatedly at street-cents, this is likely a year we will need patience, we see no change in that view at this time.

Have a great spring, talk to you in the summer!


John A. Kvale CFA, CFP

Happy Masters Weekend … Who Returns to Glory First?

One of our favorite weekends … This one … because we get to watch the top professionals work their way around the finest manicured grounds of the August Georgia area.

Return to Glory

We are interested to see who makes a better return, the Capital Markets as they try to return to their glory … or Tiger Woods … trying to do the same.


Coming soon we have tons of neat stuff to talk about, and remind of a few tax items …

Have a Great “Return to Glory” weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.