Category Archives: General Financial Planning

Part 5 : Tom Clark, Social Security Expert, with Audio – Clarity on How Retirement Benefits are Earned – Dispelling likely incorrect information we have all heard!

In Part 5, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the meat of Social Security, Retirement Benefits …. that Social Security Provides. Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here, and Direct Audio Here on our site for your viewing/listening pleasures:

 

How Social Security Retirement Benefit(s) are Earned

Dispelling the myths…. (Was that too dramatic?) … Enjoy

  • After 40 Years of Teaching/Working as an Expert in Social Security Benefits … “Everything/Common knowledge I hear about how benefits are calculated is Wrong” … Says Clark
  • Retirement Benefit are based on your highest 35 years earnings – NOT YOUR LAST 3, 4 OR 5 – Break In – Cannot count the times we have read or heard that incorrect statement
  • Wage inflation adjustments are used to calculate your beginning benefit- not CPI (Consumer Price Index) which is used for the annual increase in monthly Social Security Benefits once commenced
  • Wage Inflation is much greater than CPI or we would not have had an increase in standard of living over the years
  • Starting monthly benefits being counted from the higher Wage Inflation calculations versus CPI means current/future Social Security Retirement beneficiaries will receive more than prior, older beneficiaries – Possibly an accidental inflated benefits mistake paying too much in the future, according to Clark
  • Earnings are Wage adjusted until age 60 – All post 60 earnings are included at regular value
  • Taking the highest 35 years, Wage inflated prior to 60 and actual benefit after 60 while still working will create your monthly Retirement Benefit

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Clarifying Social Security Retirement Benefit Calculations” 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

Personal Update Reminder Story, Broken Water Heater at 8222 Douglas … Pertinent Article – When NOT to file an Insurance Claim … USA Today and ABC News Runs Our ORIGINAL Credit.com Article …

While at the Perot Museum putting the final details on our November 14th upcoming event … this text hit Jen’s Cell …

Water is leaking in the kitchen and has covered the rug ….

followed shortly by…

Building people are here and have stopped the leak ….

Not even knowing each suite at our building had a small water heater for hot water, we were surprised to find our little friend had given up existence after what seems to be several decades of light use at most:

Water Heater JK Financial

Just by coincidence we were reviewing our Insurance Coverage as the annual bill was in our hands for payment, AND the Perot Museum was asking for coverage as well.

In knee jerk reaction …NOT thinking of our own earlier-written article (see following) the phone number to the insurance company was found, but never dialed…. thankfully …

For the record, we are paying out of our own pocket, a very reasonable rate to have the baby water heater replaced as it is mandated by our lease, but we never created a CLUE report…

Original Post – See Below:

A few years back, Credit.com came to us and asked to write articles occasionally. With good feelings and spreading the better Financial Planning word in mind, we accepted and our first article hit the printers. The following is from the original post here at Street-cents.com AFTER the article had run in the appropriate channels.

USA Today NBC News Runs Our Article

On Monday, August 3, USA Today ran our Insurance claim related article… that originated from YOU, the best friends and clients in the world.USA Today Article Circle JK

After originally being published by credit.com and having  ABC News run our article, we thought surely we were done … Nope…

ABC News ArticleThanks USA Today, we enjoy your publication very much … even more now!

 

 

Here is the Original Article in Full

One of the main reasons for having insurance is to offset risk, especially major risks and losses. We pay many insurance premiums throughout our lives to various carriers for a multitude of different risks. When a possible claim occurs, an initial thought might be “I am finally cashing in on some of those premiums!”

Think Twice Before Filing a ClaimUSA Today Article Circle JK

Not only do you want to strategize before filing your possible claim, you might want to hold off on even calling your insurance company. The premiums paid in our lifetimes reflect an amortization of the possibility of the risk occurring. The greater the risk, the greater the premium. If you are a constant “claimer,” your premiums will reflect this.

Do you have a CLUE?

Various carriers have been known to treat calls as a claim without the insured’s knowledge. Comprehensive Loss Underwriting Exchange, CLUE, is a database that keeps records of claims. LexisNexis offers a handy service that allows easy research of five years of claims data. It is a terrific service as a buyer but not a database you want to land on accidentally from an inquisitive phone call.

The easiest defense against this problem is to know your coverages and your deductible amounts. With the knowledge of what your insurance covers and the amount (i.e. ring, roof or fender) you are armed with the power to make your own decisions and not put yourself in a possible accidental or unworthy claim.

Speaking of deductibles, if at all possible, carrying a high deductible will likely save you money over the long term. Most insurances can be looked at as a defense for a major event. Not reaching to your insurance to cover minor or lower cost repairs or replacements is a terrific defense against higher long term premiums. If you are a claimer with lower deductibles, it is highly likely you will have higher than necessary premiums in your lifetime. One important planning tip is that it is critical to have adequate emergency funds available to cover all of your deductibles. ABC News Article

What are some examples of NOT filing a claim?

The easiest example is a car accident that is just barely over your deductible. It is likely that a $1,500 or even $2,000 claim against a deductible of $1,000, through eventual higher insurance premiums, may quickly turn your claim into a negative financial transaction over the longer period of time. Thinking of your premiums again as an amortization of your claims will help you in determining if you should file a claim or not.

Filing a claim against an asset that has been depreciated in coverage to a small dollar amount may not only hit your CLUE report but could also result in higher immediate premiums, plus put you on the list for being dropped should you have several other claims in a short period of time. If you are dropped by a carrier, your new carrier with this knowledge may adjust your NEW premiums accordingly, as a higher risk. Not all carriers will even offer coverage to someone who has been dropped. That’s another reason to think twice before filing that claim.

Your cherished ring was lost accidentally. Your deductible is $1,000 and you think the ring is worth $3,000 but you have not had it appraised, was not itemized on your policy and have no way of proving the value. It is highly likely you will get little, if any, by claiming this loss and your file will be marked with a claim.

So when should you file a claim, sometimes quickly?

Automobile accidents that involve an injury, personal liability or severe damage to another vehicle, even though your car was not harmed are cause to pick up the phone and bring your insurance company up to speed with the situation. Tell your story first, directly to your carrier, in order to protect yourself and arm your carrier with as much information to help defend in the situation.

Catastrophic damage to your asset is clearly cause for notification and in most cases, the sooner the better. Major geographic damage often causes a large backlog of claims all at once, making it better to be at the front of the line.

Lastly, another money saving tip, if you decide to pay out of your pocket for your repair or replacement, be sure to let the service company know this. There are often different prices for insurance related and out of pocket services.

Have a great “No CLUE Report” Day !

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225JK Street Cents Logo

Q 3 2019 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 3 2019 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 3 2019 Newsletter

Click for PDF/printable version of Newsletter

And here is your review!

Why We Write!

Here we are again:20190630_133340742_iOS

We had planned on leaving this out due to repeated appearances here in our blog and in the Newsletter – but in true “Break In” like format, as this post is completed and the video – hopefully the local wifi is strong enough for uploading … the time is spent in Austin Texas at this moment in another rain delay- the same exact place the original article was written!

Tax Talk/Review

Change Likely the New Normal

After two decades of only minor changes in the Tax Law… it was overhauled and many changes were made that were reflected in our 2018 tax returns.

This neat chart is a nice reminder of the current brackets and can be helpful in income distribution tax bracket management.
Tax Bracket Graph

Inverted Yield Curve Update

This chart featured in our Newsletter is a slightly different term comparison of the 2 year (we like the 90 day) versus the 10 year, but a wonderful historical view of inversions and recessions. We have fully inverted for over a month now and if we use this historic guide as our yardstick a recession would be in the cards mid year 2020!

JPMorgan Inverted Yield Curve History

Social Security Update3-20-19 - Invitatation to SS Info Event with Tom Clark_Page_2

We have begun a detailed review of the late spring event and it is going great. Weekly we dissect a section of Social Security Expert, Tom Clark’s presentation and give handy links to greater details and explain in bullet fashion the main points. Here is a link to the Audio on a special page here at our blog and you can also click here for a link that will pull up each complete post!

There are tons of nuances regarding Social Security, Disability, Death Benefit and Medicare decisions…we look forward to discussing many more with you as the summer weeks occur!

We hope you enjoy … talk to you near 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

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

Hello and Welcome to our June 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 format as well as Video!

June – 2019 Video

 

Break In:

The Perot Museum Thursday November 14th, 2019 from 6:30 to 9 PM for a fun filled event!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

 

Financial Planning Tip (s) –

Password Safe Keeping Idea and 1 Minute Video

After attending a conference that mentioned multiple times the troubles associated with Digital Assets AKA your passwords, a brain storming session led to this terrific post about how to safeguard your password, upload to the private portion of your Vault, password your document, and then refresh occasionally. A possible Excel file with links that is itself heavily/strong password protected!

We even completed a video and added it to our Video page on our main website here!

 

Capital Market Comments –

FOMC Pre and Post Meeting Update

Here in the Preview meeting post and with Robert Kaplan audio (below) explaining how he and the FOMC (Federal Open Market Committee) go about determining what to do with rates, we also mentioned many expecting a LOWERING of rates….just a few quarters ago, unthinkable.

Here is the Kaplan Audio:

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Post meeting Market Participants…

Fast forward to our Post Meeting Post here , and while we did not get a lowering of rates, the great consensus feel like the following quote signaled they are coming all garnered from this statement and supported by the lowered GDP expectations – chart below:

“…. but uncertainties about this outlook have increased…”

6-19-19 GDP Estimate FOMC

For a sleepy time of the year, there is a lot going on – That’s what we are here for!

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

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

Part 3 : Tom Clark, Social Security Expert, with Audio – Social Security Retirement Benefit … Earliest Age, Full Retirement Age

Part 3 from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the meat of Social Security, Retirement Benefits …. that Social Security Provides. Part 1 Here , Part 2 Here and Direct Audio Here on our site for your viewing/listening pleasures.

Social Security Retirement Age(s) Benefit(s)

  • Retirement Benefits are available at age 62 at a discounted amount
  • Benefits increase (discount fades) monthly until full retirement age
  • Full Retirement age is a moving target based on laws changed in 1983 and implemented over several decades
  • The attached chart shows exactly your full retirement age
  • In 2019, you may have earnings up to $17,640 before tax penalties begin if you are drawing Social Security BEFORE full retirement age
  • Via Social Security Administration – In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2019, the limit on your earnings is $46,920 but we only count earnings before the month you reach your full retirement age.
Age To Receive Full Social Security Benefits
(Called “full retirement age” or “normal retirement age.”)
Year of Birth * Full Retirement Age
1937 or earlier 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943 – 1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67

Multiple Audio for Different Devices – Mr. Tom Clark – If first does not work, click next file – all are same audio, just different formats

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As a last resort – Click Here for Direct Link to Audio Posted on our Special Social Security Page

Have a Great “Understanding Social Security Retirement/Early Age Benefits” 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

Part 2 : Tom Clark Social Security Expert with Audio on frequently forgotten benefit – The Social Security Disability Benefit

Part 2 from the very beginning of our  Social Security Event earlier this year, Expert, Mr. Tom Clark, led off the fun casual discussion with the much important and frequently forgotten secondary benefits that Social Security Provides. Part 1 Here and Direct Audio Here on our site,  Discussed Social Security Death Benefits – but now the secondary forgotten portion of Social Security Benefits:

Social Security Disability Benefit

  • Social Security Disability benefits are VERY important, due to the fact that 1 of 3 workers die or become disabled, with the great majority being Disabled
  • Disability benefits are for very disabled, and pay to those that cannot due any work anywhere in the US
  • One in four workers being disabled now versus one in three in recent years is a great improvement
  • Majority of workers become disabled in mid to late 50’s
  • Disability benefits are paid as if you are retired at Full retirement age I.e. Your maximum full retirement age benefit will be paid to you if you become disabled no matter your age

 

Multiple Audio for Different Devices – Mr. Tom Clark – If first does not work, click next file – all are same audio, just different format

Wave file format:

MP3 File Format:

OGG File Format:

M4A File Format:

As a last resort – Click Here for Direct Link to Audio Posted on our Special Social Security Page

Have a Great “Understanding Social Security Disability Benefits” 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

Part 1 : Tom Clark Social Security Expert with Audio on frequently forgotten benefit – The Social Security Survivor Death Benefit

At our Fantastic Social Security Event earlier this year, Expert, Mr. Tom Clark, led off the fun casual discussion with the much important and frequently forgotten benefits that Social Security Provides.

Social Security Death Benefits

  • Should a parent die with children under the age of 18, Social Security Monthly Death Benefits will be payable until age 18 for each child
  • Parents will have needed to pay into Social Security for the benefit to occur
  • Benefits will pay to a maximum of three children per family i.e. Families with greater than three children will max at the third child (called the family maximum benefit), families with less than three children will be receive monthly benefits based on number of children under 18 – Here is a link to how to calculate the benefit, as warned by Clark, its complicated
  • Benefit amount will depend on amount being paid into at the time – i.e. Higher payers will receive higher benefits
  • No matter the income a benefit will be paid i.e. “Even a billionaires child will receive monthly benefits until age 18!” This statement in the Audio from event, below
  • Benefits will be paid to an adult for the benefit/use of the child
  • Over THIRTY FIVE THOUSAND, yep, thirty five thousand children receiving benefits in the Dallas Fort Worth Area alone! From audio below

 

Multiple Audio for Differing Devices – Mr. Tom Clark

 

Have a Great “Understanding Social Security Death Benefits” 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