Category Archives: General Financial Planning

Signs of a less aggressive FOMC/Jerome Powell ? …  First time in a long time less happy to see the longest daylight day of the year pass …   Summer Friday heading into Fourth of July …

Mid this week FOMC chair Jerome Powell in front of a legislative public speaking event, for the first time mentioned that the FOMC could not decrease oil prices and food prices via faster interest rate hikes.

OK, we may take issue with this slightly because if they beat demand down enough, it will most certainly put headwinds to higher prices of both of these assets. However more importantly, this was possibly the first sign of a less aggressive FOMC, again shared by Jerome Powell.

Instantaneously capital markets took notice of the comments with a much happier tone as did interest rates with an extremely happier tone as well…

Interestingly, and speaking out loud to everyone our thoughts, just two weeks ago, a much harsher tone was voiced by Powell …given that fact, it’s way too soon to say the FOMC has taken their foot off the brake a little bit ….. Heck we still have a lot of economic data to get through for the next few quarters… some of which may be very hot and could have the federal reserve reverse course once again… but maybe it is a start..

We will be watching, but wanted to let you know a possible interesting breadcrumb that occurred this week.

Hot Hot Hot

With an unusually, extremely, hot summer shaping up here in the south, breaking hundred degree days by the week, we wave goodbye to the longest day of the year with less sorrow this year and a  bit of trepidation on what August … the seasonally hottest month of the year may bring.

Kvale front yard, watered daily !

Still better than ice and snow that no one here, present party included, knows how to drive on!

Today is a Friday, getting near Fourth of July midpoint of the year, enjoy your day and your weekend, and if you’re near us, stay hydrated and be careful out there!

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

Back to Basics Fun Educational Review – Part Seven – Investing … KISS (Keep It Simple Silly) Next to Last Review

Welcome back to Part Seven of our “Back to Basics” series .. we hope you’ve enjoyed the First Six which started with all about “The Emergency Fund” in Part 1Part 2 being “Protection Planning” and Part 3 discussing All about Debt Planning or “The Good the Bad and the Ugly of Debt”, Part 4 Retirement PlanningPart Five, Back to Basics Education Planning, Part Six, Estate Planning Made Easy and now, the next to last Review… Investing – Not to Worry we will keep this simple and straight forward…

As a reminder this is a high level Financial Planning Education like overview, starting with the basics of and we will continue into advanced topics in order of Planning Importance.  

Investing – It’s Not that Hard – Many Make Paralysis through Analysis

The most important part, save as early and as much as you can and make sure you can make it through the bad times without hitting the eject button.

Investing, specifically investing in the capital markets, can sometimes seem extremely confusing and often times can have paralysis through analysis.

In the spirit of staying with our back to basics theme, we are once again going to lay this out and have what we think very easy to understand format.

Stocks versus Bonds

While we realize there are many different types of investments, for the subject of this series were just going to keep it straight forward and talk about the basic two stocks and bonds.

Stocks a.k.a. Equities

These investments can be made via indexes, individually, mutual funds or various other wrappers .. the most important thing to understand about stocks also known as equity investments, are they for ownership of publicly traded companies.

The second most important thing to know that this asset type is they can be volatile. Major indexes can endure drop by 40 even 50% at times.

Allocations to these instruments should be made with this in mind.

All of the above being said, generally the younger and longer-term … the greater an allocation can be made to these higher volatile but generally greater returning vehicles.

Bonds a.k.a. Fixed Income

Just like stocks, bonds can be wrapped in indexes, mutual funds, individual and there are various different types.

Bonds are the tortoise, whereas stocks are the hare. Generally bonds have a much lower risk profile and therefore are much less volatile, especially with higher quality bonds.

Lower quality bonds, also known as high-yield bonds have characteristics more similar to stocks and should be thought of that way during allocations.

The Most Important Part of Investing – KISS

While many analysis dig so deep into investments that it makes your eyes glaze over, there are really two important parts of investing. KISS – Keep is simple silly

  • 1. Save as much as you possibly can, and s early as you can.
  • 2. Make sure your allocation above is such that during rough rainy times, a.k.a. slowdown/recession you do not eject and sell. Our human nature of fight or flight will take you out of your investment portfolio at exactly the wrong time if you are over allocated to risky investments.

There you have it…. The keys to investing and investment!

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

Local Used Car Shady Offer Real Life Story … Beware!

So we all know the prices of used cars have gone up dramatically and there is a lack of inventory.

For the record we’ve been following an index that is showing the prices are finally beginning to roll over, the Manheim index… digressing…

Shady at Best, Rip Off at Worst

One of the largest, and maybe former most prestigious major auto dealers in the Dallas Texas area was responsible for the following actions:

Mom of a high school seniors’ late model car takes the car to the aforementioned dealership due to an instrument light giving a check engine warning signal.

The formerly reputable dealership does a so-called detailed analysis of the car, only to return with the horrible news that the motor is completely shot and the car is worthless.

But wait, the dealer offers to gladly take the high school seniors’ late model …and only form of transportation off of his mother’s hands for $4000.

Disturbed by the whole situation and uncertain as to which direction to go … mother returns the allegedly ailing car back home to plan an appropriate path forward.

About 7 to 10 days later, plans still uncertain… the dealer calls and has an increased offer of $6000, out of the kindness of their heart.

Still with no plans for a replacement, no movement by the mother or family!

In an “You can’t make this Up Moment”, about a week later a new offer of $10,000 was made from the same dealer, once again via phone call!

With an offer of well over twice the original offer, a second opinion for the alleged ailing car was in order.

A trip to the neighboring auto shop, and $50 later the automobile was not only completely fixed but told it should last at least another hundred thousand miles and was in terrific shape.

Make what you want of this experience, sadly, this offer was only discovered because of the premium repeated offers did not ask the smell test.

Happily, the senior now has wheels and is much more appreciative of those wheels now!

Have a Great “Keep Your Used Car Offer Guard Up” 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

Summer Friday … On the Way Back Home … Jen’s Turn Next Week …

Today is an early Summer Friday and our post Memorial Day family trip is wrapping up, bringing us back to the familiarity of our home, office and pets….

It was a super fun trip, with a slightly lighter work load, no TV – yep not a one, weak WiFi (still able to do the month end video post), Q3 Newsletter commencement (a positive look on things), sunshine, ET/east time (a favorite due to the early sunrise), fishing, and great family discussion time… oh and some terrific coffee too!

Next week we are back in the saddle… and with an eye on staggered off time, Jen get’s her shot… not to worry, being Financial Planners, we plan in advance… Donald “The Brain” gets his time in as well, later in the Summer…. we all sharpen the knife with some time away!

Ahhhh… but as mentioned earlier, today is a Friday… enjoy your day, the weekend … and talk 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.

jkfinancialinc

street-cents

Summer Friday

May 2022 Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our May 2022 … 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 2022 Video

YouTube

Financial Planning Tip(s)

Back to Basics Series – Estate Planning – No Fears of Fancy Terminology

In our continued fun “Back To Basics” Series here we discuss Estate Planning…

From the post:

Rather than go into the complexities of all of the documents, keeping with our “Back to Basics” theme, we are going to go into what you need to think about to easily complete all of your Estate Documents. Don’t worry about the fancy legal and financial terms, if you can answer the following few questions, your Estate Documents can be easily completed …

The hardest part of doing an Estate Plan is just starting…. Go ahead and read this post if you have been procrastinating its not hare once you start!

Lump Sum Offer Reminder

After running into an unusual offer from a Pension Buy Out, we reminded ourselves these generally come in Waves….

In this Pension Buy Out Reminder post we discuss the most important items…

Trust But Verify, offers can be wildly in accurate!

Capital Market Comments

Look Forward, Not Back

In this early month post here, we discuss Jerome Powell’s 180 turn from stimulus to brake and in particular as it relates to interest rates…

Then again in a similar post an update on Interest Rates….

While counter intuitive, as the FOMC/Jerome Powell raise interest rates, historically interest rates eventually fall as the Brake action kicks in and slows the economy

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

Attention all Pension Lump Sum Buyout Offerees

Over the last three years we have experienced a multitude of pension buyout offers both from in-force pension payments and lump sum offers for pensions not yet started.

Recently we have just experienced another, and knowing these frequently come in waves, wanted to put this note out to anyone who may be in a position to receive a pension buyout offer.

Trust but Absolutely Verify

In every situation that we have experienced over the last three years, the processing of the lump sum pension is quite different.

Also, the paperwork originally sent with the offer tends to vary slightly to dramatically from the actual offer.

We of course do a detailed breakeven analysis in order to find out if the offer is good, but in order to calculate the offer correctly, the appropriate information is needed.

If you are in a situation of receiving a lump sum buyout offer for a pension or even a lump sum buyout offer for an in-force pension, please trust but absolutely verify all of the details. What we are finding that frequently the original offer may have inaccurate information making for an impossible correct decision of acceptance or decline.

This is another subject that we ask you may share with other individuals that we may not know that might greatly appreciate or need this knowledge. So please share at your leisure.

Have a great “Trust but Absolutely Verify that Pension” 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

Back to Basics Fun Educational Review – Part Six – Estate Planning … No Fear of the Fancy Terminology!

Welcome back to Part Six of our “Back to Basics” series .. we hope you’ve enjoyed the First Five which started with all about “The Emergency Fund” in Part 1Part 2 being “Protection Planning” and Part 3 discussing All about Debt Planning or “The Good the Bad and the Ugly of Debt”, Part 4 Retirement PlanningPart Five, Back to Basics Education Planning and now “Estate Planning!”

As a reminder this is a high level Financial Planning Education like overview, starting with the basics of and we will continue into advanced topics in order of Planning Importance.  

So who needs Estate Planning?

In a word, everyone should have an Estate Plan and Estate Documents.

As your family complexity increases, the need for Estate Planning documents rises. Young families just starting out with no dependents that may be moving to another state in the very near future can have a brief hall pass as each state has its own unique rules, but the clock is ticking.

Couples with a dependent, you need an Estate plan!

Even with simple family situations, as we get older, statistically we get closer to utilizing these documents, thereby increasing our need.

Any further complexities, as an example multiple assets, multiple dependents, some type of unique family situation, you absolutely must have a good Estate Plan and Estate Planning documents.

Why do we need estate plan documents?

Without them you are leaving your wishes recklessly in the hands of the public domain via the court system for a prolonged timeframe and an unfamiliar person, (a judge), to try and guesstimate what your wishes would have been, using the general rules of the state you reside! Not good.

OK enough lecturing on who needs them and why, let’s take the complexity out of Estate Planning and make it very easy for you to prepare and complete the documents.

Rather than go into the complexities of all of the documents, keeping with our “Back to Basics” theme, we are going to go into what you need to think about to easily complete all of your Estate Documents. Don’t worry about the fancy legal and financial terms, if you can answer the following few questions, your Estate Documents can be easily completed …

So here we go!

If something happens to one of the couple, the general rule is the other is the primary default, hence the following terminology for decisions.

If something happens to both you and your spouse at the same time, Who will be in charge of administrating your estate and who is the backup person? This is called your executor.

If something happens to both you and your spouse, who will take care of your minor children? This is called guardian.

Assuming you and your spouse once again are gone, who will take care of the financial stuff for your minor children? This is called your Trustee and you’ll need at least one back up.

At what age do you want you’re now grown children, once again assuming you and your spouse are gone, to distribute financial assets? This is the terminal clauses of your trust, a very common age is 1/3 at age 25, 30 and 35 but parameters can vary widely. Trusts cannot be perpetual and therefore must eventually end.

Lastly, a very unlikely scenario, but one that should be answered, if everyone in your immediate family… you, your spouse, and minor children should perish, think of where you would like your assets to be distributed i.e. beneficiaries.

Other Documents

There are a few simple peripheral documents such as Power of Attorney (POA) and healthcare power of attorney that will need decisions, but we find if you have answered the above questions you likely already have a person that fits each of these roles.

One planning tip: Try and match the personality of your person to the role, i.e. the caring family person may be best fit for guardian, a good financial person trustee, a close relative with a very pragmatic attitude and calm and nature, your executor… as this is the most emotional role and comes first.

That’s it, each of those answers fit into a fancy legal term and your legal professional will know exactly how to formulate the appropriate language for your specific state. With the aforementioned answers your Estate Planning documents can be easily created.

Over the years we found many people fearful of the complexity of the documents, when in reality the majority of the problems are simply answering the questions above.

You are now armed with how to easily complete your Estate Documents, why you need them, how to be ready and how to easily complete!

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

Several Weeks of Consecutive Short Road Trips Finally … FOMC Raises Rates … Spring Friday Crazy Southern Weather

Happily, the schedule shows several road trips in the next few weeks making for a fast May …. Nothing air related, but a nice drive in all different directions in a return to normal…. as also mentioned in our Three Positives Happy Post here mid week….

FED Increases Rates – Jerome Powell

Mid Week, as expected the FOMC (Federal Open Market Committee) led by Jerome Powell increased the Fed Funds Rates (think our checking accounts) by 1/2 Percent or in Wall Street Speak, 50 basis points… We will talk more about this soon, but wanted to let the Capital Market Dust Settle before diving in….

Friday in the South – Heated Weekend

With near 1000 followers … many from all over the country of friends and clients we like to toss you the rollercoaster ride of deep South Texas weather every once in a while … a high 40 degree mid week start of the day to only top out at 60 this week, was a cool spell …. this weekend Donald the Brain hits 100 in his neck of the woods and we are expecting mid 90’s…

That is ok the cold, rain and ice are gone… Lot’s of water, sunscreen, shade and no extended time in the first round of heat….

Have a Great Friday and super Weekend- Talk 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.

jkfinancialinc

street-cents

Three POSITIVE Data Points … Back to Normal Readings…

Enough of all the slowing talk and R – Word discussion…. it’s coming and we all know it…. BUT

Let’s have some fun and look at some very positive data points

TSA Throughput Update

Wow, back to almost normal… this is 2019 versus 2021 … looks like we are hitting the skies…

Guess what, this is without a lot of business travelers…

Way to go Families, you are doing your thing…

Newbies, here are 10 prior reviews for your perusal … none look as good as this one- YAY

Indeed Job Openings

After multiple reviews here upon getting copyright authority, this most recent is looking awesome….

Major metropolitan areas, not only almost doubling in job openings post lockdown, but looking at the lack of steeping of the curve (far right) job fills are on the rise as well!

Marine Traffic – C/O Marine Traffic.com

Almost went with the Flight Aware map, but since we already know TSA Throughput is rocking from our first noted graph, let’s go to the waters….

This is screened for Cargo Vessels (stuff) and Tankers (Oil and the like) ONLY….

Supply chain bottlenecks, look out … there is relief on the horizon….

There you have it, some very good positives to go with for your hump day viewing….

Have a Great “Positives” 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

April 2022 Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our April 2022 … 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!

April 2022 Video

YouTube

Financial Planning Tip(s)

Back to Basics Series – Educational Funding

In our continued fun “Back To Basics” Series here we discuss Educational Funding…

Here is one very important item to remember from the post:

Did you notice we put Retirement Planning BEFORE Education planning? Do you recall in Part 3 in Debt Planning we said one of the few good debts are educational related debts ….We of course are not advocating Student debt/loans… but they are available in abundance and again not a bad debt. There are not retirement planning loans…. just saying!

Proxy Vote Reminder

In this post we remind you to please reach out if you have fallen off the list for us to proxy vote for you!

If you are getting those pesky Proxy Notices (some can be small books- oh the trees that are destroyed- digressing) reach out to us, we not only vote the Proxies for you, but we get one single notice for everyone, and Jen has done an excellent job in getting a great deal of those electronically…. Did we say how Green this is?

Capital Market Comments

The Slowdown is Here

We first started speaking of the slowdown in our Q 1 2022 Newsletter here in our “Anatomy of a Slowdown” main aricle actually released in December of 2021….

And then again, here in our Q 2 2022 Newsletter ….

Then again here, here, here, here, and again here.… among a few other times…

Last week the BEA “Officially Released” a negative GDP print as noted here in our post and in this chart….

Never get the timing exactly, but we are not surprised and have been waiving the flag here in our talks and are prepared!

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

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