Each year the IRS publishes their top dozen tax scams, here in our post we cover all dirty dozen tax scams to be aware.
Our top three are their first three-
Phishing
Phone Scams
Identity Theft
Which are the ones we see most frequently!
For the record, we have seen way less this year than in years past!
Choose Beneficiaries Carefully Part II
Here in our Part II beneficiary post, we discuss the two most common types of designations you will likely see on Beneficiary paperwork, Per Stirpes (flows to heirs, irregardless of survivors) and ProRata (funds only to survivors) and once again as a reminder that Beneficiary language will over ride Wills and other types of Estate Planning documents – choose carefully!
Capital Market Comments –
Inverted Yield Curve
Here we spoke of the three hour inverted yield curve in a Break In abbreviated post. As an update, the yield curve has been inverted most of this week, making is a TRUE inversion.
We will have a detailed review soon, but again the importance of this event is the recession signaling prowess.
All recessions are not equal, and we highly suspect the next one will be a shallow one, but our radars are up.
Have a Great Day – Talk to you at the end of March!
Here are our questions so far- but we want more – keep them coming!
Last time we spoke you were VERY certain Social Security would be there for all of us upon retirement – With all of the changes, do you still feel this way?
Can you explain the divorced verses divorced and remarried benefits?
Have you ever heard of someone being offered a lump sum of retroactive Social Security benefits?
November of 2015 ushered in new laws and changes, are there any neat techniques that survived?
Can you explain non US citizen spousal benefits?
We have been told many of the benefit statements are not always accurate, understating the actual eventual benefit, has this been your experience?
How much can I earn and not receive penalties if I retire before my full retirement age?
The Full Retirement Age keeps being pushed out, will this continue? Is there a schedule?
How long do I have to report my Social Security earnings if they were not reported by an employer?
For many years I did not draw on an ex spouses earnings by accident – using only my earnings benefit, can I request some sort of look back to get my full benefits?
If want to change my Social Security election decision after I made it and have been drawing benefits, Can I do that?
Do I have to take Social Security Benefits ? What if I do not want to?
About four years ago, we had a fabulous speaker, Tom Clark who has multiple decades of experiences at the Social Security Administration as an expert lecturer….
In November of 2015 new laws dramatically changed (limited) many of the Social Security techniques and benefits.
With a few more years under our belts and the change of laws, we wanted to bring Tom back in for an update, refresher, complete analysis of what is happening now, and what may lie ahead for that ever so important benefit, Social Security!
Save the Date
April 27, 2019
Dallas Athletic Club
10:00 AM
MEET TOM CLARK
After 33 years of service at the Social Security administration, Mr. Clark now has a second career, spending time with groups like ours, helping them become educated in making the correct decisions and informing them on the intricacies of the Social Security and Medicare System.
Not to worry, Mr. Clark’s last years at the administration found him doing over 300 of these type of events per year.
Questions?
We will be doing a multi-part complete analysis of Tom’s discussion after the event here at street-cents.com, but please send us questions NOW to formulate a list for Mr. Clark to be asked at the event! Send to jen@jkfinancialinc.com
Here are some questions we have already begun accumulating – just to give you ideas:
Last time we spoke you were VERY certain Social Security would be there for all of us upon retirement – With all of the changes, do you still feel this way?
Can you explain the divorced verses divorced and remarried benefits?
Have you ever heard of someone being offered a lump sum of retroactive Social Security benefits?
November of 2015 ushered in new laws and changes, are there any neat techniques that survived?
Can you explain non US citizen spousal benefits?
We have been told many of the benefit statements are not always accurate, understating the actual eventual benefit, has this been your experience?
That should give you some good ideas, but we want more – bring em on and we will get them to Mr. Clark in advance, post here as a summary – and after the event, give a detailed direct answer!
Have a Great “Soon to be informed Social Security” Day!
In our updated post here, we discuss a few handy items to grab and remember when you retire or change jobs.
Here are the bullets-
Last Pay Check
RSU-Options
Employee Stock Purchase
Deferred Comp
Pension
Health Coverage
Long Term Health Coverage
401k
New 401k
Severance
Social Security Withholding
Institutional Trustee
This post has turned into a full article in the coming Newsletter due to the great response and continued questions and ideas that were brought up-
Possible reasons for an IRON CLAD Institutional Trustee
No other comfortable option – Many times a friend/family member is preferred
Want an iron clad back up
Calming possible family feuds
Long lasting legacy desired
Desired attention to details such as monthly distributions, bill payments etc.
Choose Beneficiaries Carefully
In this post, just earlier in the week, born from an in field experience – multiple questions in the office after – and the subject making its way into the Newsletter as well… just a great additional article to the Trust!
The most important item to remember in choosing a designated beneficiary on and account is it will over-rule your Will – choose carefully and review occasionally for safety of desired outcomes.
The Brain Shines at West Coast Event
Capital Market Comments –
Good News – Recovery without a Re-test – So far
Nothing to change from the prior month!
What a different a month makes – WOW! We literally have gone from the sky is falling to sunshine!
In our summary post in December, we mentioned that fast moving slumps, such as the one we had, frequently do not last long….
Here, earlier in the month we also mentioned that we fully expected some type of retest of those lows before we gained our footing.
We still do expect some type of re-test, but as of this date we have had the following positives that have added to the markets better mood:
Federal Reserve (FOMC) have turned very cautious about raising rates further (We are happily surprised at their yielding, and even more surprised at market participants joy)
Tariff talks are making progress – Interestingly, China has seen a slow down in their economy making for slightly more urgent talks – with a little compromise and statesmanship a resolve looks more likely – again a positive for capital markets.
Earnings are still cranking along – For the prior 4-6 quarters, earnings were red hot and hitting on all cylinders, so hot, they were not sustainable. Companies are still reporting good earnings, just not the Red Hot, overheated earnings from prior quarters – this is good news as it avails the FOMC to not have to raise rates to slow the economy –
All in all a Win- Win!
Have a Great Day – Talk to you at the end of March!
In a continuation of our Why series – if you want to see the entire series just scroll down to the right side of our blog site and change the category to “Why” – there are some neat ideas in our opinion….
And a topic that came up this week with much discussions, once again giving us a subject matter to share…
In a preview article to a more detailed Newsletter article that goes well with our Institutional Trustee article….
Why you should carefully choose your Beneficiaries
The most important point to remember is that whatever your account title (IRA, Trust, TOD – transfer on death) documentation has deemed a beneficiary, that is where the funds will go, without regard to what your Will or even what Trust documentation may say…
Making sure all of your title documents send fund to where/whom you currently desire….
Want some examples we have seen over the last three decades:
Currently married – maybe for a while – but a Parent is still your beneficiary (Easy fix, frequent occurrence)
Minor child is the beneficiary – this will not work- courts will end up deciding
Ex Spouse – yikes -there are some relief with divorce decrees, but sloppy
Sibling that for whatever reason you no longer desire to be a beneficiary
Two of your three grown children – by accident, forgetting the third
Don’t let an accidental oversight in your Beneficiary designation slip through the cracks – Review occasionally, and you will be in good shape!
Hello and Welcome to our January 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!
Newbies – We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
January – 2019 Video
Financial Planning Tip (s) –
Get and Earlier than normal start on those Taxes
Here in this post, we remind everyone that due to the new tax laws, it will be a good idea to get your tax information to your professional as soon as possible.
If your using tax software, be sure to do the recommended updates as we feel certain there will be necessary updates to the tables along the way.
Corrected 1099’s are the usual, with only a few last year, we will give everyone the green light once we get our first round of corrected tax forms – but again go ahead and get started with your taxes!
Stunning Findings about your old employer 401k
We had long suspected as much, but in this post we review a Cerulli study that interviewed over 800 401k providers, only to find out that less than 30% really want your funds once you leave.
We have experienced less than stellar service over the years with former employees 401k plans – leading to our long suspicion of these findings.
Make Pension Changes/Decisions Carefully
While our favorite commencement benefit for pensions (100% jt survivor) is fairly straight forward, the simplicity ends there.
In this post, we review recent trends in buy outs and what to watch for, as well as the many scenarios we have experienced that are not always in our best interest.
Capital Market Comments –
Good News – Recovery without a Re-test – So far
What a different a month makes – WOW! We literally have gone from the sky is falling to sunshine!
In our summary post in December, we mentioned that fast moving slumps, such as the one we had, frequently do not last long….
Here, earlier in the month we also mentioned that we fully expected some type of retest of those lows before we gained our footing.
We still do expect some type of re-test, but as of this date we have had the following positives that have added to the markets better mood:
Federal Reserve (FOMC) have turned very cautious about raising rates further (We are happily surprised at their yielding, and even more surprised at market participants joy)
Tariff talks are making progress – Interestingly, China has seen a slow down in their economy making for slightly more urgent talks – with a little compromise and statesmanship a resolve looks more likely – again a positive for capital markets.
Earnings are still cranking along – For the prior 4-6 quarters, earnings were red hot and hitting on all cylinders, so hot, they were not sustainable. Companies are still reporting good earnings, just not the Red Hot, overheated earnings from prior quarters – this is good news as it avails the FOMC to not have to raise rates to slow the economy –
All in all a Win- Win!
Have a Great Day – Talk to you at the end of February!
We have seen pensions that actually give you less money on a monthly basis if you wait longer! Not Kidding…
We have seen pensions dramatically lose money on their present value lump sum benefit over time (very short time in a few cases) monitoring is needed.
We have seen pensions that never break even, if you take them early versus waiting (similar to first point mentioned.)
We have seen offers to buy out monthly pension benefits in the form of a lump sum that are horrible.
We have seen lump sum offers that are too good to pass up (fewer times, but it happens)
We have run into pensions that if the participant passed away before the pension commenced, the spouse received NOTHING, but once the pension commenced the spouse was a full 100% beneficiary.
We have seen random offers from outside companies to buy pensions off – out of no where- usually not a good deal.
Be Careful with Pension Decisions
Most pension decisions are irrevocable, due to the actuary calculations that are put into place once a decision (contractually binding the company) is made.
While our favorite pension benefit decision (Jt survivor- as mentioned here) in great detail) is fairly straight forward, little else about pension decisions are easily understandable, compound that with the irrevocable nature of the decision, caution and analysis is warranted.
Recently we have run across a few buy out offers from different sources, reminding us of the complexity of pensions and bringing our thoughts to you in this post.
By reverse engineering these offers, a very complex situation can be turned into black and white.
Use caution when deciding on pension decisions as they are mostly irrevocable and frequently offers and changes, may not always be in the participants’ favor.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!
Background
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.
March 2019 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Break in Reminder for our Social Security Event
Saturday April 27th at 10 am and Dallas Athletic Club
Hello and Welcome to our March 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!
Newbies – We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
March – 2019 Video
Financial Planning Tip (s) –
IRS Dirty Dozen
Each year the IRS publishes their top dozen tax scams, here in our post we cover all dirty dozen tax scams to be aware.
Our top three are their first three-
Which are the ones we see most frequently!
For the record, we have seen way less this year than in years past!
Choose Beneficiaries Carefully Part II
Here in our Part II beneficiary post, we discuss the two most common types of designations you will likely see on Beneficiary paperwork, Per Stirpes (flows to heirs, irregardless of survivors) and ProRata (funds only to survivors) and once again as a reminder that Beneficiary language will over ride Wills and other types of Estate Planning documents – choose carefully!
Capital Market Comments –
Inverted Yield Curve
Here we spoke of the three hour inverted yield curve in a Break In abbreviated post. As an update, the yield curve has been inverted most of this week, making is a TRUE inversion.
We will have a detailed review soon, but again the importance of this event is the recession signaling prowess.
All recessions are not equal, and we highly suspect the next one will be a shallow one, but our radars are up.
Have a Great Day – Talk to you at the end of March!
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
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Posted in Economy, Estate Planning, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning, Video
Tagged Benefeciary, China, FOMC, Institutional Trustee, Job Change, Rates, Tariff, Trustee