Category Archives: General Financial Planning

Q 1 2020 Extended (12 Page) Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 1 2020 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.

Click Here for direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page

Let’s get going!

All New Pictures, Intro and Exit Music !

Q 1 2020 Newsletter

Click for PDF/Printable Version


Is Inheritance Taxable ?

This, our lead financial planning article for the newsletter-  With the subject of inheritance and the taxability of it occurring multiple times in the most recent quarter, the idea for this article spawned.

After completing the initial article, a continuation article idea also occurred which made the second part of the inheritance subject matter about being separate property.

We hope you enjoyed both articles and this was our lead financial planning articles.

All about the Car

In another fun personal financial planning two – part article, long desired, but fearful of writing …this article discusses the car, should you buy or lease and how to do so. Again, a second article occurred at a chance meeting in an airplane with a former law officer watching me finish the first article on the airplane!

In doing the research for these articles we ran across a really cool car research site, and mentioned some great buying resources as well.

Recession Thwarted – Capital Market Thoughts

To ignore new evidence in our minds is silly even if it goes against the grain of what you may have been saying!

In this article we review a CFA speaker’s slide about lowering rates during a recession and his conclusion. Bottom line, we’ve not been a big fan of lowering rates during economic growth, but an inverted yield curve which is highly predictive of a coming recession, along with lowering of rates, according to the speaker and the enclosed chart leads to a thwarting of the recession.

We hope we are wrong on this one and the speaker is correct!

Reach back to last year’s taxes in savings you can do now

In this article we discuss the remaining tax savings ideas that we can do this year, that will help last year’s taxes-

  • The SEP – Simplified Employee Pension
  • HSA – for the Health Savings Account
  • IRA – An oldie but a Goodie if it’s available to you
  • Roth – While not a tax saver you can do it now for last year’s taxes
  • Itemized itemize itemize – With today’s high standard deductions you may not be able to itemize but we remind that it’s a good idea to stay in shape as it’s likely these itemize deductions may come back in the future

We hope you enjoy … talk to you in the Spring !!!

John A. Kvale CFA, CFP

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

SLOA Notice Mailing today – What? (Clients Only) No Action Needed – Just a Heads Up in Advance!

Today, annual mandatory mailings for SLOA – (Standing Letter of Instructions) are being mailed via snail mail..

SLOA’s are any instructions on file to transfer/move money from one account to the other.

Linked accounts are titled similarly and examples include  … linking from a Bank or checking account, savings account, or even linking to multiple investment accounts such as an IRA or other type of internal account.

Letter looks like this … just FYI



No Action is required by you…. this is just a heads up for confusion purposes!

Have a Great “SLOA Notified” Day – Is that a word? HAHA

John A. Kvale CFA, CFP

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

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

Hello and Welcome to our December 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 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!

December – 2019 Video

Financial Planning Tip (s) –

12-31-19 Secure Act House Ways and Means

SECURE Act is Signed at the Finish Line of the Year

As mentioned here in our preview post, with a stroke of a pen on the Saturday before the Christmas week, the SECURE ACT (Setting Every Community Up for Retirement Enhancement) – Wow that is a mouthful!

The Biggies:

  1. Age 72 RMD, up from the confusing 70.5
  2. Non-Spouse 10 Year Mandatory distributions of Inherited IRA – Mandating taxes by beneficiary

Tons of planning techniques and lots more to the law, but these again are the biggies!

Capital Market Comments –

FED Pauses and Markets Yawn… Finally

The FOMC (Federal Open Market Committee) led by Jerome Powell and company, FINALLY were able to not lower rates and market participants accepted it… Shhh, lets keep it our secret..haha

12-16-19 Fed Funds Rate


Happy 2020!

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.

Break In: SECURE ACT – (New Retirement Plan Rules) a Breath Away from Law – Friday – Office Hours Over Next Holidays – Happy Holidays

Break In:

SECURE ACT looks to be passed at the last minute amid year end legislation…

We rarely comment on items that are not law, but the SECURE ACT (Setting Every Community Up for Retirement) is just a pen stroke by the President away from law, as both the House and Senate have approved.

Two Biggest Items of Secure Act (Many Others, but the following are the elephants):

  1. Delayed mandatory RMD until age 72 – Nice
  2. Non-Spousal Beneficiaries to IRA’s will only have 10 years to empty the account – Tax Acceleration here – will require planning

These laws, if passed will commence for actions occurring after 1-1-2020…

 Back to our Regularly Scheduled Program….

Today is a Friday and with local schools only a half day, we will be adhering to the same schedule to help keep the streets safe…haha

Office Hours Over the Holidays

Each of us are taking time off over the next two weeks, but an attempt to not all be gone at the same time is always made…. there will be several days where we will all be out.

I always make myself available via the technology tether to let the others disconnect…

That being said, there are travels in the schedule as well!

So if a delayed response, it may be due to bad WiFi flight times….

Fun Pre-Scheduled Posts

Over the year, a few neat comments have caught the eye and will be shared over the Holidays!

Have a Great Holiday Season and talk to you in 2020!

John A. Kvale CFA, CFP

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

What to do When You’re in an Automobile Accident? Multiple Professional Interviews Done on the Subject … A Follow Up to Buy or Lease

So after much deliberation from our post on Buy or Lease that Next Car, you are behind the seat of your “New to You” vehicle, and you did it with knowledge, style, and confidence.


What’s Next? Not being negative here….

Recall the Scout Motto “Be Prepared”

What to Do When You are in an Automobile AccidentAuto Accident

First and most importantly, if there is an injury of any seriousness immediately call 911 and get the EMT there to help.  This sounds obvious, but in every case the following interviews and information was preceded by this fact.

Former Police Chief, Current Judge Offers Suggestions

“Use your camera as a weapon; Video tape and picture everything you possible can, including VIN numbers of the cars involved, and even get an interview with someone as a witness if you had someone that would do that.”

Police from Local Campus Near Home

A Second interview of a local campus police officer went like this – Upon request they would gladly do a police report and they could also call the local police, in this case Dallas.  They would do a police report if the damage was more than $2000. otherwise, they would generally not do a police report unless asked.  He also mentioned to take pictures of everything and if possible make sure automobile and license are both valid or legit.

Call to Insurance Company for Guidance

Per a call to my automobile insurance company the following were suggested:

  1. Get a police report if possible especially if the damages are of substance
  2. If you’re in a no-fault state you’ll need to contact your insurance carrier no matter if
  3. Use Phone to take Pictures of everything – theme developing here

The idea for this article came on a chance plane ride with the former Police Chief sitting next to me as the Buy or Lease Article was being completed/edited on the plane ride….

Thanks Chief for the idea….

Let’s Be Careful Out There – Showing Age  (Hill Street Blues)

Have A Great “Prepared if in an Accident” Day!

John A. Kvale CFA, CFP


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

Should you Buy or Lease that Next Car?

Long desired but fearful of repercussions of writing this article, we finally had the courage to jump in. Opinions on this subject are sometimes very strong (maybe even divisive!) on either side of the fence.

In doing research for this we came across a very handy internet site, While you may only be interested in buying a new car or leasing, one of the most important items is the residual value, especially in leasing. As the following neat graph shows from the site, there are dramatic differences in the decay value of cars. In our opinion, worthy of at least a few minutes research, especially if you are open to different makes and models.


Depreciation Comparison Studies

Those that are interested in buying a used car, the handy site will also target an expected BEST year to buy the car, as shown in the next very high end auto, with a steep depreciation schedule.

Benz Depreciation chart

The Case For Leasing

Leasing a car is by far the least expensive from a out of pocket standpoint (minimum monthly payment) way to get into a NEW Car.

In certain cases there is a great desire to drive a vehicle that is no more than two or three years old, in this case leasing is likely your best decision. Continued safety is certainly a big point for the new car ownership.

The Case For New Car

If you are one that must have a new car, but are willing to keep it for an extended period of time,  purchasing a new car is likely your best option.

A favorite place to buy a new car which we have had good experience is a membership program such as Costco or Sam’s or any other type of membership that gives you some sort of unique advantage or barrier for the general public. Always check the prices using your friendly Internet as there is tons of information out there to get the price range of the vehicle you want.

The Case for a Used Car

With a normal depreciation of between 15% and 30% per year (there are exceptions, but on the average these numbers are correct), our favorite “new car to you” purchase recommendation is buying a one or two-year-young automobile with low mileage, and keeping it until it will drive no more. Most cases this will save you a great deal of money-there are exceptions be sure, we recently ran onto a situation where a later year brand new car was within striking distance of a used car because the new models were coming out. In this case it made sense not to opt for a one-year-old car and just buy a late year new car. But on the margin, the statistics above are true.

Have a Great “Lease or Buy Car Informed” Day!

John A. Kvale CFA, CFP

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

Why an Inheritance is Separate Property? How to NOT Co-Mingle and How TO Co-Mingle – Part 2 on Inheritance

As a follow-up to the “Why an Inheritance is Usually Not Taxable Post” we thought it timely to go one step farther and explain inheritance asset flow and the unique characteristics an inheritance has, even if you reside in a community property (most assets viewed as joint) state.

Inheritance has Direct Ownership Tracking

An inheritance is a unique transfer of assets with a very detectable and separable source. Given that inheritances are mostly determined by either beneficiary designations on specific assets such as an IRA beneficiary, Wills, Trusts or a transfer on death (TOD) which is basically specific beneficiaries for funds/assets, the source of an inheritance is very specific and very clear, which gives it unique characteristics regarding joint or co-mingled assets.

So how does an Inheritance Stay Separate?inheritance

It’s as easy as keeping the asset in her/his own name, and ABSOLUTELY not adding or depositing co-mingled assets into the separate property.

How to make Separate Property Joint?

Just the opposite as above, mix it up, in many cases there may be situations where there is a need or desire to make separate property joint property, possibly tax, inheritance tax, other asset location issues may make this appealing; taking the separate property adding a spouse or significant other and mixing the assets will efficient will effectively make the separate property joint property.

Once Joint, it is nearly impossible to separate again!

Have a Great “Inheritance Separate or Co-Mingled” Day!

John A. Kvale CFA, CFP

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