Category Archives: General Financial Planning

March 2018 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our March 2018 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.

March 2018 Video

Financial Planning Tip (s) –

Final of FIVE Tax Savings Ideas you can do NOW for LAST Year’s (2017) TaxesUncle Sam

We completed the five part series … Three were let out of the box last month …. Let’s quickly review them and then the two final parts from this month!

HSA or Health Savings Account

Our post here, speaks of the terrific opportunity to set aside Pre-Tax dollars to use now or later for medical expenses.

SEP – Simplified Employee Pension

As mentioned in our Post Here, there are very high limits of contribution, and the SEP can be done during mandated RMD’s, as well as in tangent with a 401k program, as long as the upper limits collectively of contribution are not violated.

Pre-Tax Deductible IRA

As the one of the original retirement vehicles and so vintage many forget (We Don’t!) we want to remind here in our post about the IRA – Individual Retirement Account.

Tax Savings reach back reminders from THIS month/March

Maximizing the Sales Tax Deduction

Here in our post this month, we remind everyone to be sure and maximize your Sales Tax Deduction.

From the post …

Here are a few items that may make your standard sales tax deduction drastically inaccurate and woefully low- thereby costing you tax dollars:

  • Bought a large Asset – Think Car or other similar item
  • Had more then normal personal taxed expenses – for whatever reason
  • Large Taxable Asset of any kind purchased
  • Major expense where you paid sales tax – Think Wedding, Large Party

Be sure to maximize this deduction as it looks like the new tax rules will greatly mitigate it’s use moving forward.

Medical Expense Deduction

We all some type of medical expenses each year. What is a challenge if determining what is and is not deductible.

The IRS does a terrific job with their Publication 502 of reminding and outlining what may be a deduction. In our post here, we remind of a few favorites that we find are frequently missed …

  • Capital Expenses for home improvements
  • Transportation Cost
  • Television
  • Telephone

Are possible (check to make sure) deductions we find interesting and easily forgotten.

 

Capital Market Comments

Finding our Footing After Getting Ahead of Ourselves

 

Another month and our thoughts are the exact same…so much we did not even have to change the title of this part of the review from last month… the chart is updated … looks about the same…

We think patience is needed as this will take time to digest and again find our footing.

Patience will be needed!

Here is where we are now —

3-31-18 SPX w JK Trendline and 200 DMA

For those wondering …. for now, it looks like the 200 Day Moving Average (line below our trend line) is the lower level of support … It may break, which is fine, but for now, looks like someone wants it to hold.

We will keep watch and keep you updated!

Have a Great Day! Talk to you at the end of April!

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

Part 5 of our Reach Back NOW to last Year’s Tax savings – The Forgotten Medical Expense (s)

Medical expenses greater than 7.5% of your Adjusted Gross Income (AGI) can be deducted in many cases. This is not new news to most. What is news is just what can be deducted or worse yet, forgotten to be deducted — read on!

The Forgotten Medical ExpenseMedical -checklist-3222079__340

A Qualified Medical expense can be deducted on your income taxes for last year 2017. Our goal on this subject is to remind you just what can be a Qualified Medical expense.

Publication 502 by our friend at the IRS (yes, I said that – friends- check out the publication and you will see why they are our friends) gives you a mind jarring reminder of just what, and what not is a Qualified Medical Expense.

If you have ANY possibilities that you may be above the 7.5% deduction for medical expenses, Publication 502 is worth a read as it has TONS of ideas you may have forgotten or did not even know were a deduction.

  • Capital Expenses for home improvements
  • Transportation Cost
  • Television
  • Telephone

Are possible (check to make sure) deductions we find interesting and easily forgotten.

Don’t let that medical expense deduction go away as it looks like the new tax laws are going to greatly diminish this deductible expense.

Have a Great “Found Medical Expense deduction” 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

Cognitive Biases – 18 to be exact

No matter if we like it or not, we all have our own biases … some through our upbringing, some from our experiences, some just from our current state of mind given our mood.

Some are great and can be really helpful. Some can create risk inadvertently.

We try internally to monitor and measure these biases constantly.

Our friends at Visual Capitalist have laid a collection of 18 biases out very well.

Take a look – How many do you have?

18-cognitive-bias-examples (1)HR

At least a few? We do too …  awareness is super helpful!

Have a Great “Self Bias Awareness” 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

 

 

 

February 2018 Podcast Video, Financial Planning and Capital Market Update- By John Kvale

Hello and Welcome to our February 2018 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.

February 2018 Video

Financial Planning Tip (s) –

Three Tax Savings Ideas you can do NOW for LAST Year’s (2017) TaxesUncle Sam

With the official kick off of Tax Season occurring some time in February … we are not sure what the “Official” start to Tax Season is, but we know it is sometime in February if not earlier .. haha

In an yet to be completed series – we still have two more parts, the first Three were let out of the box this month …. Let’s quickly review!

HSA or Health Savings Account

Our post here, speaks of the terrific opportunity to set aside Pre-Tax dollars to use now or later for medical expenses. In true Reach Back Tax Savings form, this contribution can be made now for last years taxes.

Be Careful though, you must make the contribution by the regular filing deadline i.e. No extensions to get the benefit applied to last year.

As mentioned above this account does not have to be used completely and can be delayed for highly likely future medical needs.

A handy trick we have used over the years when an employer makes some type of a contribution is to remind participants that in most cases you can make up the difference and get a tax savings.

Check with your Health Insurance Carrier to see if you qualify for an HSA contribution. If you do, we highly recommend you make the contribution.

SEP – Simplified Employee Pension

This beefed up IRA is another super Reach Back Tax Saver and the contribution can be made as late as your extended filing deadline.

The SEP offsets income that make come to you as non W-2. Think consulting, temporary work, as side business that generates income to you directly or any non W-2 regular pay.

As mentioned in our Post Here, there are very high limits of contribution, and the SEP can be done during mandated RMD’s, as well as in tangent with a 401k program, as long as the upper limits collectively of contribution are not violated.

Pre-Tax Deductible IRA

As the one of the original retirement vehicles and so vintage many forget (We Don’t!) we want to remind here in our post about the IRA – Individual Retirement Account.

Notice our careful heading of Pre-Tax Deductible IRA – We are not fans of the after tax IRA (contributing and not getting a write off) and in most case recommend you pass if you cannot deduct the contribution.

There are more limits to a Pre-Tax Deductible IRA under current tax laws, again be sure to see our post for limits and restrictions, but if you qualify, it is worth the savings as this is another “Reach Back Tax” saving idea.

Like the HSA, contributions must be made by the regular filing date- extensions do not  help you. So do not wait until the last minute.

Capital Market Comments

Finding our Footing After Getting Ahead of Ourselves

In a coincidental oddity, we had been putting the finishing touches on a post prior to the ugly 10% FAST FAST correction that occurred in late January and February.

In our post here, we spoke on where we may get back on trend- No one knows, of course, but simple logic of an unsustainable path was our analysis.

We think patience is needed as this will take time to digest and again find our footing.

Patience will be needed!

Here is where we are now — Our Trend line is looking pretty good – So Far.

3-1-18 SPX W JK trendline

 

We will keep watch and keep you updated!

Have a Great Day! Talk to you at the end of March!

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

Cool Personal Finance Infographic

Our friends at Visual Capitalist are at it again with a cool new Personal Financial Project.

We look forward to bringing more of these to you … this was a great start.

personal-finance-landscape

Pretty Simple when you put it all together like this!

Have a Great “Straight Forward Personal Finance” 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

 

 

Corrected 1099 Update … Tax Forms Help … SLOA Notice (Clients) — An Ark Friday

Uncle SamWhile only in the first inning of tax season, it is here … and we are moving right along. As such, much of our commentary to the finish line will be tax related as we like to keep you up to date on all things tax savings and anything else related.

Corrected 1099 Update

The first round of Corrected 1099’s has occurred and we have reached out to those affected. Generally the “first is the worst” and rarely do we get a greater number of corrected’s in the rounds to come.

Given our light load of Corrected’s so far, if you really need to file, we will give you a soft Green light to file but would rather you wait until the second is complete — a notification we will give as soon as it occurs !

Hold if you can, but if you cannot, go forth!

Tax Forms Help

Be sure to reach out to us for any forms we are in contact with. We generally have SUPER FAST access and quick turn-around on needed statements.  If our tax professional is in need … we will get it fast so as not to be the holdup.

If you are not sure on what forms you are supposed to have, lost a form, or just do not have the time get them together … reach out – we have you covered, and can send a complete bundle to you! Do not hesitate to ask, that is what we are here for.

If you need us to email someone the information, just send us the request as we do not let go of your coveted information without directives!

Oh .. and of course all of your tax forms are currently in your Own Personal Vault too…

SLOA Notice – Standing Letter of Authority

Recently a notice has been mailed out for all of our collective protection. This notification tells us of any linking of accounts or standing letters to deposit or withdraw funds from an account such as a checking or other related money account.

This is strictly a protective measure and is a notification only. No action is needed. Again for our collective safety.

Noah’s Ark

Entering President’s Day Weekend we were approaching drought territory. Not anymore …. Now we are gathering two of everything … kidding. But is has been raining A LOT.

Enjoy your weekend ! It will be raining here!

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

 

 

Tax Savings Ideas You Can Do NOW To Save Last Year (2017) Taxes – Part 2 – THE SEP – Simplified Employee Pension

Last week we started our tax season discussions here (- the HSA) with a favorite “Last Year” tax savings ideas that can be done this year …

This week another super saving idea … Think of this as an IRA on steroids – due to high limits and ample flexibility!

The SEP – Simplified Employee Pensionseptember-706937__340

Here are just a few reasons why we love the SEP for the correct situation:

  • Offset 1099 or other consulting like – non W-2 income in a pre-tax form
  • An IRA can be used to accept a SEP contribution in many cases – no new account needed
  • Can be used in conjunction with a 401k – Only need 1099 income – High Contribution limits apply
  • High Maximum Deferral amount $54k – yes that is correct FIFTY FOUR THOUSAND of pre-tax dollars as long as that is no more than 25% of Adjusted Gross Income
  • Can make SEP contributions even after RMD (Required Minimum Distributions) Begin
  • Can make your contribution even after the regular tax deadline if you file an extension – This really makes a SEP valuable and give us plenty of time to make the contribution again for LAST year’s tax savings

There are certain limitation and restrictions as mentioned, so don’t just make a contribution unless you are sure it will work for you … or just reach out to us!

Have a Great “SEP” Tax Savings 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