Category Archives: General Financial Planning

Why we like 30 year mortgages over shorter terms!

The American Dream of owning a home …

It comes with a Liability in most cases …

With lots of term options, we wanted to discuss our favorite, and why!

The 30 Year Mortgage – Our Favoritedebt-1500774__480

When most purchase a home, especially the first home, a Mortgage is the norm. In most cases the 30 year mortgage will be the most costly from a rate only standpoint –

Here is why it is our favorite:

  1. You can easily make a 30 year mortgage a shorter term by paying it faster/extra.
  2. You cannot pay less on a scheduled shorter term loan if life’s curve ball comes around.
  3. While likely the higher rate, the monthly cost will be the lowest due to the extended term.

There are always exceptions to the situation, but for the above reasons, our starting place is usually the 30 year mortgage!

Have a Great “Understanding Mortgages” 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

 

Q 1 2019 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 4 2018 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!

 Q 1 2019 Newsletter 

And here is your review!

Capital Market Talk

The Grinch Came to Christmas

Just a few days into the final Quarter of 2018, market participants became grumpy and continued their coal ways all the way through the end of the year – a seasonally strong historic period of time.

In our main capital market article we discuss the reasons why – no one knows for certain, and discuss the speed of the decline along with what the future may hold..

Updated Personal Theft Story

After having three credit cards stolen which we spoke of here, an interview with a detective brought to light some amazing stories of theft

  1. Never give gift cards as a payment –
  2. Don’t fall for fake blackmail –
  3. Have a safe word for fake kidnappers or other similar scams

Meet Jennifer Hill “Jen” Our New Operations Manager

In a more in-depth article that expands on her background, Jennifer “Jen” Hill has our formal introduction along with several fun pictures including a Charlie’s Angels and a D Magazine Wealth Managers Picture from our honored award of D Magazine’s Best Wealth Managers.

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.
www.jkfinancialinc.com
www.street-cents.com

Fourth Quarter 2018 Cover Letter

Thank you for your wonderful digestion of the recent market volatility. 

We have seen so many reports, articles, studies that show this is more of the normal and what we had lived through for the past multiple years was less normal. However, what we have experienced most recently is what we become accustomed to. We’re not going to quote you some article or historical fact that says this is the norm-even we have been uncomfortable with the sudden movements. 

Just like we all became more accustomed to low volatility and capital markets that seem to increase day by month by quarter almost without ever dropping, we will again get used to this type of movement. 

We don’t like it, and would rather not have it, and yes history says it’s more the norm but we’d rather have the abnormal – this is where we are now. We thank you for all of your confidence and once again given the recent volatility we are happy we are a more conservative firm. 

It is a true statement that Markets have predicted 10 of the last 4 recessions. Meaning they often fret over things that do not occur, but that extra fretting tends to be correct is some cases. We acknowledge that the global economies are not growing “Red Hot” fast like they were last year, however we refute a global meltdown or imminent recession at this time.  

After promising (Federal Open Market Committee – FOMC) multiple rate increases as recent as October (four to be exact) at this time that is not going to happen. With rates being somewhat a reflection of inflation, and inflation being wrung out of the system via technology and outsourcing, rates are likely near their “New Normal” range.  

Earnings are the ultimate driver of capital market returns and interestingly they continue to be churning out very nice, taking into account the market recent volatility, valuations have become much less stressed and even cheap in many cases. 

In Closing 

Your Fourth Quarter summary is enclosed on the front page of this report we have included our most recent investment allocation from your Investment Policy Statement. This is also the time we attach our Private Policy Statement for the year along with our opportunity to offer our latest ADV filings; Requests for review will be accepted via phone, mail or email, and mailed immediately upon request. 

Sincerely, 

John A. Kvale CFA, CFP

J.K. Financial, Inc.
PRIVACY POLICY NOTICE
Our Promise to You
As a client of J.K. Financial, Inc., you share both personal and financial information
with us. Your privacy is important to us, and we are dedicated to safeguarding
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We do not sell information about current or former clients to third parties, nor is it
our practice to disclose such information to third parties unless requested to do so
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service an account or as permitted by law. Additionally, we may share information
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information as confidential.
In order to protect your personal information, we maintain physical, electronic and
procedural safeguards to protect your personal information. Our Privacy Policy
restricts the use of client information and requires that it be held in strict
confidence.
Client Notifications
We are required by law to annually provide a notice describing our privacy policy.
In addition, we will inform you promptly if there are changes to our policy.
Please do not hesitate to contact us with questions about this notice.

 

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

Hello and Welcome to our December 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 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 – 2018 Video

Financial Planning Tip (s) –

Staying Invisible on the Internet

With concerns of our personal information being constantly delivered/sold to others, we found this really neat chart, here in our post as a great guide on staying invisible on the internet.

The chart is HUGE, noting the many ways we are being tracked this day and age… lots of neat, stop tracking me techniques included…

Capital Market Comments –

Good News – Such Fast Movements May Not  Last as Long

One time when being fast may be to our benefit …

Markets that throw a quick hissy fit frequently get their feet under themselves …

1-6-19 spx -

Using the Great Recession of 07-09 as a guide (below)  – BTW we DO NOT think this is what we are experiencing… it took years for the drop to occur, not days…

1-6-19 spx 07-10

We may be experiencing a slow motion 87, 91 or 99 like drop, which were faster, briefer, caused by outside worry and forces, but certainly concerning at the time!

Let’ all buckle up and be thankful we NEVER drive fast – time will tell!

 

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.
www.jkfinancialinc.com
street-cents

Calls of an Inverted Yield Curve – Premature SO FAR –

This week a funny thing happened … on the yield curve that is, garnering a lot of attention. Those following our writings, here, here, and here, know we are watching for an inverted yield curve since it has a good predictive nature for recessions – a topic for another discussion. Heck, even Kent Smetters, the Wharton co-host professor mentioned the yield curve had inverted.

Inverted Yield Curve? Kinda!

Here is a good picture of a normal yield curve

 

20180424_122733810_iOS

Inversion occurs when the short term rate goes higher than the long term rate i.e. the 2 year greater than the 10 or even more clearly, the 90 day rate greater than the 10 year…

What happened this week were the 2 and 5 year yields, slightly inverting –

Does this count?

Maybe? BUT the real predictability is from the afore mentioned short and long, not short and slightly longer short…

Here is the 2 and 10’s, followed by the 90 day and 10’s

12-3-18 2 year versus 10 year daily12-3-18 90day versus 10 year constant

It may invert, and we will let you know when it happens, if it happens, but for now, in our minds ….

No inversion yet, but we are watching close!

Have a Great “Not Inverted Yet” 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

Wharton Co-Host Radio Show Sirius Satellite Radio Yesterday Evening – Rerun all this week and link to show

As I type this, I am waiting for the producer of the show, Michelle Stucker to call and place my phone on the live – yes LIVE – call in Financial Planning Radio show!

Your Money- Wharton University – Professor Kent Smetters

Channel 132 – from 4-5 pm daily this week, Dallas time will re-air the show for those interested…

Yesterday I was honored to once again co-host Kent Smetters, Wharton Professor and Sirius Satellite Radio show for almost an hour !

Talk about getting out of your normal comfort zone – a live nationwide radio show will do it for you!

 

Smetters

Here is a link as well to the show-

There were some fantastic questions – The last time I was guest host, we were both stumped and this time it occurred again —

Someone asked if we knew of any long term care companies that would cover retiree’s living in another country!

Kent tossed to me and I back to him, “Not that I know of!”

Watch for a full article in the coming Newsletter !

Full confession – Due to a chicken/superstitious nature – you are reading this AFTER the show was recoreded ! haha

Have a Great “Out of your Comfort Zone” 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

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

Hello and Welcome to our November 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 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!

November – 2018 Video

Financial Planning Tip (s) –

Clump – Maximizing the new standard deduction

With a $12k individual standard deduction and double that for joint filers it takes work to maximize the standard deduction threshold… Add the fact that SALT State and Local Tax deductions are now limited to $10k annually, clumping expenses into one year as mentioned here in our post and visually below may be the only way to get above the standard deductions for many …

Clumping Taxes

Capital Market Comments –

Powell Signals a Slower Rate Increase

Current FOMC (Federal Open Market Committee) chairman Jerome Powell signaled the rate increases may be closer to over than just was stated just a month earlier… where a December increase, which is still almost certain, but three additional increases were promised in 2019 – not any more.

Given the long/lower rates of the last decade, it is not a surprise that the new normal may be lower –

Market Participants cheered this statement!

10-31-18 Fed Funds Rate

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

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
street-cents