Category Archives: Insurance

Why we like High Deductibles!

As we worked on our PLUP – Personal Liability Umbrella Policy Newsletter and Blog Post, we repeatedly ran across reasons to discuss our fondness to the Higher Deductible options on almost everything.

This article has also spawned a related article, about Emergency funds – neat chain of events articles!

Consider the High Deductible Option – On Most Everything

Health Insurance, Auto Insurance and Homeowners are the main types of ongoing insurance that allows you more control in your cost via the deductible.

The Auto Insurance Examplecrash-test-1620591__480

One of the easiest examples is the good old automobile insurance. We like high deductibles of near one thousand dollars due to the tremendous longer term premium savings that will occur over time. We certainly acknowledge that changing your coverage deductible to a higher amount today and having an accident tomorrow is bad luck and will throw you into the hole, but over time, if you are not a repeat offender, your saved premiums will more than pay for the higher deductible.

Health Insurance Example

Let’s face it, the insurance industry wants us as consumers to take more control over our medical expenses. Rather than run, embrace this coming inevitable change, and review higher deductible health insurance plans. Similar to the Auto example, if you opt for a higher deductible plan and something happens in the very short term, you will be in the hole on this decision, however time is your friend.  Having your health coverage pay for that visit to the Dr. for a cold is nice, and may make you feel good after you leave the office, however if you dig deeper, it is likely you may be paying dearly for the “free” visit.

Homeowners Insurance Deductible

Yep, there is a higher deductible option for your homeowners policy as well. This option is usually in the form of a percent of the dwelling. Be careful when reviewing these options as our experience has shown premiums and out of pocket costs can vary greatly depending on the geographic area of your dwelling and a higher percentage deductible can get out of hand if you are not careful on a higher priced dwelling. Bottom line, the homeowners policy has more moving parts due to the differences in coverages, geographic area, dwelling itself and your claim history. Take extra time in adjusting this deductible, but once you get clear on all costs, obligations and options, it’s likely you will find savings in this as well.

Have a Great “High Deductible 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.
jkfinancialinc
street-cents

Mother Nature FLEXES her Muscles – High Deductible Pre-View – Friday

With a crew that absolutely loves the outdoors – beach, mountain, desert … heck they might even like a rainforest (never been with the whole gang.) Mother Nature has an influence on our lives.

Mother Nature FlexesHurricane -tropical-cyclone-63124__480

We wish the best for those in the mighty Mother’s path. With the most visible storm making landfall to our friends on the mid eastern coast line, and one of our far west states/islands are also dealing with her muscle flexing….

Safe wishes to all!

High Deductible Preview

Next week we continue our found series (PLUP, Emergency Fund-) with the last depending part, the High Deductible. Thanks for all the responses, we have greatly enjoyed sharing and will have full versions in the coming Q4 Newsletter.

Of course it’s a Tennis weekend, but long time followers will be surprised to know this weekend unusually includes little Brother in a Sunday match while older sister watches and gives important advice…..

Today is a Friday, enjoy your day and the weekend .. be safe and talk to you 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

Anniversary Payback Travels – Jen’s Baptism By Fire – Writers block confession, Lot’s of Neat Posts Coming

Long timer followers know we had a crazy Summer with the 13 year old’s tennis schedule…

As such, the Mrs. totally missed any real vacation over the summer together — Even the anniversary came and went without even a dinner or card — yikes – (18th!)tennis-2042723__340

Pay Back Anniversary Travels

Today and the next two days I will be out of the office/state and attempting to be loosely tethered via technology for Anniversary payback time!

Yes it is Jen’s second day as official pilot – but she has piloted much bigger planes before (more on this soon) – you are in good hands as Donald the Brain is still far from “Table for Five too!

Writers Block Confession

In full fess up mode, there are times when it is hard to write (not usually, but it happens) with nearing 2000 posts and counting, we are happy to give you a heads up — No writers block now!

WE HAVE TONS to talk about soon!

The PLUP article spurned two more articles that we think you will really like-

PLUP graphPlus we have had great ideas coming from you guys in the field– keep them coming, we love discussing hot repeating topics!

Ok … so an Anniversary Travel announcement turned into an exciting preview of coming great topics — We really like what we do – All good, all fun!

Have a Great Day and talk to you 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.
www.jkfinancialinc.com
street-cents

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

Hello and Welcome to our August 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 too!

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

Break In – We finally upgraded our Laptop, which means a new recording system of Audio and Video — five year old laptop technology was long in the tooth – Hope you Enjoy!

August 2018 Video

 

Financial Planning Tip (s) –

The PLUP – Personal Liability Umbrella Policy

In our post here, a shortened version of an article in the coming Newsletter, we review the PLUP or Personal Liability Umbrella Policy- You likely need one!

Cost

In a world of sometimes seemingly ever higher costs, the PLUP is very affordable. Experiences have shown annually, cost of usually between $200 – $500 for $1 Million – $2 Million in coverage.

Insures your base Coverage are correct

Another neat and settling feature of the PLUP is that it mandates that your standard or base coverage are correct.

What you are protecting Coverage

The most obvious assets at risk are after tax dollars such as checking, savings and investments including Revocable Trusts.

Estate Planning Part 1 – Wills and the Basics

In a reappearance due to constant usage, we also brought back our Estate Planning Series here, Part 1.

  • Will
  • Power of Attorney
  • Healthcare Power of Attorney
  • HIPPA – Release of health information
  • DNR- Cease and Decease – Do not Resuscitate

Estate Planning Part 2 – Trusts

In Part 2, a second repeat article, here, we discuss Trusts of all sorts and their usage.

  • Revocable Trust
  • Testamentary Trust
  • Irrevocable Trust
  • QTIP- Qualified Terminal Interest Trust
  • Credit Shelter A/B Trust
  • Generation Skipping Trust
  • Irrevocable Life Insurance Trust

Capital Market Comments

Small Business Optimism Hits All Time High –

With earnings booming it is not surprising to see Small Business Optimism reaching all time highs — It is always nice to recall that while there are fast moving machines, making trades in nanoseconds and huge amount of data is being deciphered electronically to get and edge – BUT and it is a big BUT – There is ultimately a human behind the machine!

She/he is pretty happy!

8-15-18 Gallup Small Business Optimism

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

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

 

PLUP – The Personal Liability Umbrella Policy – A Savior if you need it, especially for the cost

Insurance can be a costly word to many, but in this post we discuss in an abbreviated form from our coming Newsletter, the  PLUP – You may not want to leave home without it!

Personal Liability Umbrella Policy – AKA PLUPinsurance -slip-up-709045__340

This coverage is an add-on to your auto or homeowners policy. This coverage kicks in as a pseudo major medical similar upper limit coverage for liability should you need the extra protection. Given the cost, it is easy to see this coverage is not utilized frequently, but had the personal experience above been slightly different, maximum limits could have easily been met, needing the Umbrella for continued asset protection.

Cost

In a world of sometimes seemingly ever higher costs, the PLUP is very affordable. Experiences have shown annually, cost of usually between $200 – $500 for $1 Million – $2 Million in coverage. (Yes that is correct, two to five hundred dollars annually.)

Insures your base Coverage are correct

Another neat and settling feature of the PLUP is that it mandates that your standard or base coverage are correct. The reason for this is that the Umbrella Policy actually sits on top of your standard coverage, again similar to a major medical policy sitting on top of your standard health coverage, to only kick in when the base coverage are maxed out. 

What you are protecting Coverage

The most obvious assets at risk are after tax dollars such as checking, savings and investments including Revocable Trusts. In a bad situation, without the PLOP policy these assets may be at risk in the event of a liability judgement is made on you.

Accident Examples

The crazy accident at your home, where an acquaintance falls down unexpectedly and injures themselves badly and you later find out that this acquaintance is not so friendly and has a desire to hold you accountable for their incident.

Those with kids that may have kid friends over and a similar occurrence from above happens.

Anyone who drives the streets today has some possible liability. As mentioned in our personal opener, the outcome of the personal situation could have been much different.

Watch for a more detailed article in our coming Newsletter, meanwhile, if you do not have a PLUP, you may want to call your insurance agent and check into it!

Have a Great “PLUP” Covered 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

 

Optimism Hits All Time High – PLUP Preview – Near Summers End Friday

Small business owners are really feeling happy –

This recent Gallup/Wells Fargo Poll of small business optimism is at all time high-  Nice!

8-15-18 Gallup Small Business Optimism

The PLUP

Do you have a PLUP? You likely should have one!

Next week we discuss the PLUP as a preview to a greater detailed article in the coming Q 4 Newsletter – yea, its hard to believe, but the last quarter of the year is nearing.

Today is a Friday, nearing the end of the summer and the month….

Get out to the pool, enjoy those special in your life, it goes fast!

Talk to you 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.
www.jkfinancialinc.com
www.street-cents.com