Category Archives: General Financial Planning

Q 3 2020 Newsletter Video Audio Podcast Review By John Kvale The Future is Brighter and Faster

Welcome to our Video and Audio Podcast Review of our Q 3 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 a 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

You will notice no market comments in this Newsletter Dominated by Health Related discussions…

Let’s get going!

Thanks in advance!

Q 3 2020 Newsletter (YouTube)

 

Peter Diamandis –

As a reminder, here is Peter’s high level CV … impressive.

Founder/Exec-Chairman, XPRIZE Foundation – www.xprize.org
Co-Founder, Co-Chairman, Planetary Resources, Inc. – www.PlanetaryResources.com
Exec. Chairman, Singularity Univ. – www.su.org
Co-Founder, Vice-Chairman, Human Longevity Inc. – www.HumanLongevity.com
Co-Founder/Board Member Covaxx – www.covaxx.com
Co-Founder/Board Member Celularity – www.celularity.com

Along with founding 22 companies and counting.

The Future is Brighter and Faster than We Think!

We hope you enjoy … talk to you at the end of  Summer !!!

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

What Happens When You Get A Decidedly Positive Economic Reading, While Expecting Negative?

Last Friday, June 5, 2020 the Bureau of Labor Statistics (BLS) released its regularly schedule monthly report of hiring and firing report nicked name “The Employment Situation”

Closely followed as a broad measure of the health of the economy and the consumer, experts (so called) from all ports of finance (Economist, bankers, investment bankers, brokers) tally their estimates of what the monthly reading will be.

In all fairness, due to bread crumbs from other reports, usually the forecasts are very close and often garner a quick glance and a carry on to other items attention span.

Fridays expectations were for a loss of just over 7 million folks.

Oops – What Happens When You Miss Big?

With an expectation of ( -7 million) more job losses and announcement of +2.5 million gains, caught Market Participants WAY off guard…

6-5-20 Nonfarmpayroll surprise

Interest Rates took note as well… which is very logical, as rates go up as economic conditions expand…

6-5-20 Us 10 year treasury

Likely ahead of ourselves a bit, but heck it is a start….

Bumps most certainly still ahead… but still a start…

Have a Great “Why We Don’t Forecast Much” 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

Positive Friday … Want to be an Edison? Wave Request

With the worlds biggest and brightest minds working countless hours toward a cure for the Corona …. it may be bad to bet against a cure!

Individuals, Joint Company efforts of their top brass working in teams, and top power house individual companies are working hard….

Want to Be An Edison440px-Thomas_Edison2

Thomas Edison was the most far reaching, well known, and well respected person we could think of, but of course, you can insert someone or company of your own liking.

The Company, Group, or Individual that discovers the cure is likely to become a household name….i.e. Edison

The key person is likely not doing it for the money …(His or her company make like the money!)

He/she is likely not doing it for the fame either …

Most we run into in this type of field are there because their calling is to help as many people as possible …

Can you imagine the sense of urgency someone like this has … to be able to announce the next four words …

We Found a Cure!

More next week on what may happen when those are transmitted across our cell screens….

To think we aren’t getting closer daily, would be to bet against some pretty sharp minds and technology…

Not saying it’s tomorrow… just saying it’s likely out there somewhere!

Now that’s a POSITIVE FRIDAY heading into your weekend!

Oh… do us all a favor  … kindly wave at every stranger you see, it will make you feel better and the stranger too …. Take note of how EVERYONE will kindly waive back with a bit of happiness … What we have noticed!

Have a Great “Want to be an Edison” 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

Amazed How Seamless Virtual Became Reality! … A Cell Phone Comparison

Do you remember your first experience with a Cell Phone ?

Not talking to the youngsters here – haha – you guys should read what happened though!

At first someone else had a cell phone, and they were likely seen as braggers or show offs….mobile-phone-246906__480

Slowly (over years) the stigma subsided and the cost of a cell phone began dropping with incremental speed of use and additional features.

Do you know anyone who does not have a cell phone? Probably Not

Virtual Was Pushed On Us and We Did Just Fine

This week on a Quarterly Earnings Call, a publicly traded company that is directly in the middle of Virtual said…

“In Two Months Over Two Years of Integration in Virtual Just Occurred”

Isn’t that pretty cool!

We should all pat ourselves on the back!

Only thing needed is an internet connection …  most phones now double as Hotspot … trouble easily averted

Stigma is Gone on Virtual meetings and get together’s …

Countless talk by tons of Smaller offices …

Less Travel Expense …

Yea, maybe a bit more impersonal …

Nothing will ever replace Face To Face, a nice hug or handshake !!

Given the circumstances … nice welcomed pivot!

Have a Great “Virtual Embraced” 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

 

Recovery Rebate Website Finder Updated – Where’s My Rebate?

Long time followers know posts usually occur on M-W-F, but in an effort to get updates to you guys quickly and share information, deviations have occurred ….

On Thursday of last week while helping several people determine if they were due a rebate AND where might it have gone…. a message announcing a three day shutdown for upgrades occurred.

Good News on the other side!

Recovery Rebate Website has been Updated

Sunday, late morning, an email was received from the IRS announcing that indeed the three day shutdown was for an update.

Checking a handful of folks that had not received their rebate, multiple, but not all were now showing a more descriptive explanation of where and how they would be receiving their rebate.

Here is the direct website…again be careful as included in the email from the IRS were multiple warnings about fraud…

https://www.irs.gov/coronavirus/get-my-payment

Here is a screen shot to make sure you are going to the correct website…. bad guys would love you to enter your confidential info… make sure the site you see, looks like this:

IRS Recovery Rebate Site

Have a Great “Found My Recovery Rebate” 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

PPP – Paycheck Protection Program – Part Two – Opens Again TODAY – Do not Hesitate if you missed the first time!

Last Friday April 24, 2020 a second round of the PPP AKA Paycheck Protection Program was approved and signed into order. With the benefit of hindsight and experience of Round 1 we can now offer even more pointers and helpful hints!

PPP – Paycheck Protection Plan Part 2 – Updated Tips SBA Logo

Do Not Delay – In less than two weeks the original program was completely diminished of all available funds, and this round has slightly less total funding.

Double Check Original Loan if you missed – If you tried with no success in round one, immediately contact your bank and status your original application… fingers crossed in not loosing our place in line, but each lender may treat this differently.

Smaller is Better – The big banks are having trouble processing these likely due to volume – if you have a small banking contact that’s a better possibility – if you do not have a small banking contact right now an attempt to arrange one will likely be fruitless as they will be very busy as well and are taking original clients first.

Sole-Proprietors and Business Owners -As a reminder this plan is for Sole Proprietors – Self-Employed or Businesses with employees who have been adversely affected in one way or another by the lock down/Virus.

Reminder of Loan Amount and Terms – The  loan is for 2 1/2 times your monthly average for last year as long as you have the same or more employees and will be available and if the loan is used in eight weeks with 75% or more being payroll it will be forgiven! No taxes, totally free money!

Open a New Account for Funds -Not surprisingly there were some buyers remorse and the federal government has let it be known that they’re serious about the use of these funds.  We highly recommend you open a second account and keep copious records on how you’re using these funds or you may have scrutiny problems in the future dealing with forgiveness!

Pandemic Unemployment May Make More Sense – Those self-employed if you showed little or low income last year you may be better off to attempt the Pandemic Unemployment Benefit which is $600 a week for Four months or until income commences – TIP- Our experience with this is that the unemployment agencies of the separate states are extremely backed up and will likely take a longer period of time to commence these benefits – Be patient!

Again, time is of the essence, if you missed Part 1, get going … these funds likely will not last long!

Have a Great “PPP Part 2” 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

Fun Chart of Terms of Service … The Tiny Print We Never Read …

Usually excitement to get going pushes us all through the “Accept Terms” portions of whatever instrument we are looking to use…. Present party included of course!

Ran across this fun chart…. comparing the length of that Tiny Accepted Terms….

From our friends at Visual Capitalist

Length Comparison Of Tiny Print

length-of-service-agreements-1

Have a Great “That’s A Lot of Tiny Print” 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

 

 

Recovery Rebates Are Out … Tracking Site – IF (?) You Want to Check on Status … Another Sharing Post

Yesterday we were introduced to the IRS website that allows tracking of your Recovery Rebate

Feel free to share with all, due to the headcount size of this Rebate, there are certain to be numerous problems and backlogs i.e. The faster fixed the better!

Recovery Rebates Commence

Originally we were under the impression the $1200 Recovery Rebates were due near the end of April or early May…. 

Good news… with a sampling of just under 20 people yesterday, the Recovery Rebates are out!

If you think you are due a rebate and have electronic instructions on file, we suggest you check your bank account first to see if there was a deposit yesterday!

If you did not, or are uncertain if you are receiving a Rebate… you may check the attached website…. BE CAREFUL … make sure you link to the correct site as it will ask for a Social, DOB, address and zip… all of which in bad hands can cause trouble… 

Here is the site.

https://www.irs.gov/coronavirus/get-my-payment

Normally we would hot link to this site, but we do not want your browser to accidentally grab the incorrect information or someone jump in front of our link.

Make sure you are on the correct site… looks like this…. note the web address

IRS Recovery Rebate Site

Again, with about a 20 person sample (we know, small but wanting to get this to you fast fast fast) we had a 20% problem rate. All problems were due to bad bank instructions on file.

Again, be careful…but if you have troubles, it may be worth checking as there are certain to be a backlog of problems causing delays in the future!

Have a Great “Recovery Rebate Check” 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

 

 

 

 

 

 

Here is the site from the IRS

SPECIAL CARE ACT EDITION – PLEASE SHARE – Q 2 2020 Newsletter Video Audio Podcast Review By John Kvale

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

Break In : If you don’t have a Twitter account, the time is now – many of the CARE ACT services are crashing their regular sites, as such communication is being made via Twitter … If you REALLY do not want a Twitter account, just use it as a browser, however by having an account you can subscribe to whatever entity you need to follow and you will be notified immediately as they comment.

This is also useful for following your industry organization, important company or almost anything you may need immediate notification.

 

Let’s get going!

Just so you know this was hurried with a call before and just after this video, so it was not edited as normal … but wanted to get this out to as many as possible as fast as possible… Never claimed to be a Spielberg .. haha … prompt, complete delivery of this information was very important at the moment!

Thanks in advance!

Q 2 2020 Newsletter

 

The CARE ACT –

On Friday March 27th 2020, a stimulus package was passed into law for the benefit of those being effected by the Corona Virus officially starting the clock for many programs.

The general spirit of the most important parts of the bill is getting money into the hands of consumers quickly AND attempting to incentivize employers to keep workers on the payroll!

Recovery Rebate

Checks Being Sent to Over 90% of the population

Each person to receive $1200, kids UNDER age 17 credited to parents at $500 each, no limit in headcount.

This Rebate is NOT TAXABLE!

The payout is likely to be sent out end of April or early May!

The applicable AGI phase out threshold amounts are as follows:

  • Married Joint: $150,000
  • Head of Household: $112,500
  • All Other Filers: $75,000

One time Maximum $100k IRA Distribution Available in 2020 Only

Investors affected by the Corona Virus can take a maximum of $100k of a Corona Virus impacted distribution from your IRA or Employer related plans.

  • There will be no 10% penalty for the withdrawal.
  • There will also be no 20% mandatory withholding.
  • You must take this distribution by 12-31-20.

You can repay this distribution within three years and have NO TAXES. You may stagger payback contributions over any time frame as long as you pay all of it back within three years of the day you received the distribution in order not to have taxes due on the distribution.

RMD’s (Required Minimum Distributions) Waived in 2020

All RMD’s for any and all mandatory plans are waived as of 2020.

This includes all types of RMD’s including those with the five year rule.

Next year will not mandate a doubling of the RMD.

Next years RMD will be on the higher mandated level, but again will not cause a duplicate.

One Off Charitable Deduction – Small – Available Only to Non Itemizers

Included in the new Coronal Stimulus package is a one time above the line, Charitable Donation Write off of $300.

This amount is only available to those who do not itemize.

Pandemic Unemployment Insurance Benefit

A New Pandemic Unemployment Benefit available to those effected by the Corona Virus.

This benefit is additionally available to those that may not have had access before, mainly self-employed individuals.

This new benefit is $600/week and lasts for four months.

There is also the elimination of the first week waiting period, allowing those immediate access if needed.

Student Loan Deferral

No payments required until September 30th of 2020!

No interest will accrue during the interim.

Must notify your loan provider if you are on automatic payment.

Paycheck Protection Program – AKA SBA Loan Program

Forgiveness loan that can be totally FREE to small business owners if they qualify and use the funds appropriately. If not, they will receive a possible 10 year term, 4% maximum interest rate from the Small Business Association, happily administered by qualified local banks in an attempt to speed the process of getting the loans to business owners.

The purpose of this loan is too keep your people employed!

Available for business owners of less than 500 people who were or have been adversely affected by the Corona Virus.

Must certify Good Faith that the business has been affected by the Virus. Which can include uncertainty of the future.

Must be applied for by June 30, 2020!

Repayments will not commence until at least six months and no longer than twelve months.

Loan amount is the lesser of $10 mllion or 2.5 times your average monthly payroll in 2019 – EXCLUDING AMOUNTS OVER $100K ANNUALLY

Capital Market Update –

Bonds are so good they are Bad

Given the speed of the equity stock, drop due to the ever expanding Coronavirus. Investors were caught flat-footed and in a dash for cash, sold their old faithful bond holdings which are viewed favorably again due to their safety.

Using history as our guide, not only does this correct itself, but also likely turns out to go even higher in value, which is what happens when rates go down and bonds go up.

In closing, one more bit of good news in almost all cases we will have reinvestment of income at these lower prices, taking advantage of that pricing for our own benefit.

2-26-20 VBMFX - Largest Bond Fund in World

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

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

CARE ACT UPDATED INFORMATION (Please Share, Especially With Self Employed Solo Displaced Business Owners of All Types) – “The “PPP” PART 2 UPDATE Paycheck Protection Plan!”

In an attempt to get this to you ASAP we are relying on available information, IT IS CHANGING FAST, but the PPP Plan for now, is a first come, first served basis! You may want to act quickly.

Break In : If you don’t have a Twitter account, the time is now – many of the CARE ACT services are crashing their regular sites, as such communication is being made via Twitter … If you REALLY do not want a Twitter account, just use it as a browser, however by having an account you can subscribe to whatever entity you need to follow and you will be notified immediately as they comment.

BREAK IN: Your local bank will likely be able to accept an application FRIDAY APRIL 10, we would suggest you contact your bank about this plan immediately as Friday is a Holiday for many!

The following is most fitting for an Self Employed Employer or Solo Practitioner who has been displaced!

The Care Act was signed into law on Friday, March 27, 2020 and includes a provision for Employers to extend workers pay and possibly NOT REPAY!

The “PPP” Paycheck Protection Plan

BREAK IN: Using Texas as our template the Pandemic Unemployment funds are not being delivered yet as there are too many regular Unemployment requests in front of the plan.

BREAK IN: There is some dialogue that if you have ANY income you may not be able to use the Pandemic Unemployment funds and you may not be able to use both the funds at the same time – This PPP Plan for Solo or Self Employed is likely a faster and better solution at this time.

Forgiveness loan that can be totally FREE to business owners if they qualify and use the funds appropriately. If not, they will receive a UPDATED TERMS 2 year term, 1% interest rate from the Small Business Association, happily administered by qualified local banks in an attempt to speed the process of getting the loans to business owners.

The purpose of this loan is too pay your salary and other expenses…see below.

Available for solo owners of less than 500 people who were or have been adversely affected by the Corona Virus.

Must certify Good Faith that the business has been affected by the Virus. Which can include uncertainty of the future.

Must be applied for by June 30, 2020!

Repayments will not commence  UPDATED : IN SIX MONTHS!

Loan amount is the lesser of $10 mllion or 2.5 times your average monthly payroll in 2019 – EXCLUDING AMOUNTS OVER $100K ANNUALLY

IF the entire loan is used completely within eight weeks and is used for any of the following:

  • Payroll costs
  • health insurance premiums and other healthcare costs
  • Salary and net income from business
  • Rent
  • Mortgage interest (excluding amounts pre-paid)
  • Utilities
  • Other business interest incurred prior to February 15, 2020

It may be completely forgiven (NO TAXES IN ANY WAY OR PAY BACK AS WE KNOW OF NOW) if the practitioner meets the following employee limits:

  1. The business must maintain the same number of employees (equivalents) from February 15, 2020 through June 30, 2020 as it did during either the same period in 2019 or
  2. from January 1, 2020 until February 15, 2020. To the extent this requirement is not met, the amount eligible for forgiveness will be reduced, ratably.

You may not cut any employees <$100k annually by more than 25% or they will not count towards the above headcount.

Again this information is changing quickly, so be sure to confirm with you Banker his comprehension of this!

Have a Great “PPP Solo Plan” 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