Category Archives: Retirement Planning

Save the Date – Back by Popular Demand – Tom Clark our Social Security Specialist – Saturday 10 am – April 27th at DAC Dallas Athletic Club – Personal Video Invitation

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 CLARKTom Clark Pic

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:

  1. 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?
  2. Can you explain the divorced verses divorced and remarried benefits?
  3. Have you ever heard of someone being offered a lump sum of retroactive Social Security benefits?
  4. November of 2015 ushered in new laws and changes, are there any neat techniques that survived?
  5. Can you explain non US citizen spousal benefits?
  6. 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!

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

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

Hello and Welcome to our February 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!

February – 2019 Video

Financial Planning Tip (s) –

Job Change or Retirement Checklist

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 photo-1528752477378-485b46bedcde

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 Carefullybeneficiary - 42001392872_ddd235968d_m

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:

  1. 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)
  2. 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.
  3. 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!

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

Why you should be careful when choosing your Beneficiaries

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 Beneficiariesbeneficiary - 42001392872_ddd235968d_m

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!

Have a Great “NOT forgotten Beneficiary” 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

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

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 Taxestaxes control-1027103_1280

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 401kabonded dawn-3358468__480

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 Carefullythumbs-up-2056022__480

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:

  1. 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)
  2. 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.
  3. 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!

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

Why you should Be Careful before taking that Lump Sum offer of your Pension, especially if your are receiving a monthly benefit already – Careful analysis is needed with ANY Pension decision

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 DecisionsTrade - handshake-2056023_960_720

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.

Have a Great “Clear Pension Benefit” 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

Something we have long suspected, Cerulli Report Confirms: They Don’t Want your 401k Money Once You Leave the Company – WOW!

Over the years we have noticed once an Employee leaves a company, certainly their status goes down, but often times they seem to have trouble getting answers, controlling their old plans, and in particular, working with their old 401k provider.

From our perspective, as you may imagine a latest Cerulli report not only clarifies why these experiences occur, but also confirm our suspicions!

Cerulli Report Confirms “They don’t want your old 401k Money!”

As of this post, we have requested a copy of the report that will certainly make a full appearance again here at street-cents and likely in our Newsletter – (This report is only a week old and privy to professional media members AT THIS TIME)abonded dawn-3358468__480

This Financial Advisor Article  caught our attention as in disbelief we read the abbreviated story on the Cerulli Report:

This from the article:

Overall, plan sponsors don’t seem especially interested in keeping their retired workers’ assets, according to Cerulli. A recent survey by the firm of 800 plan sponsors found that 59 percent preferred that workers take their assets and leave. About 27 percent of respondents said they preferred keeping such assets in their plan

The problem with this is that workers forced (or feeling forced/neglected) to take their funds, without direction – frequently tend to cash out their plans, sacrificing their future!

We look forward to expanding on this story as we receive more details. We will also give you the real life experiences we have come across along with the limitations many providers have.

For now, if you have left your company and are not feeling the love, so to speak… you know why!

Have a Great “Understanding of the Lost love 401k” 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

 

RMD Season is here – Is your DOB between 7-1-47 to 6-30-48 ? You have a decision!

RMD – AKA Required Minimum Distributions – the Governments’ mandate of distribution from our IRA (Pre-Tax) funds in order to finally occur taxes is upon us…..

RMD Season Uncle Sam

In the coming weeks we will begin transferring mandated funds from our IRA/Qualified/Pre-Tax accounts to their directed destinations….

As a reminder this is so the US Government gets to take the taxes due …

IMPORTANT (Neat) Facts –

  1. RMD $$ mandated amounts are determined by the value of applicable accounts on the last day of the prior year
  2. Current year age is a necessary factor included in calculating the RMD – see below next, first time exception – each year of seasoning (getting older) we are forced to take more out of the applicable accounts – hey the IRS has never taxed us on these in many cases – it’s their time!
  3. After tax contributions to a qualified account MUST be accounted for in order to avoid taxes – here are greater details and our taxpayer obligations on this –  don’t overpay – the IRS is not tracking this and will not come to the rescue and lower your taxes
  4. All of an individual’s accounts must be included/totaled/value (certain exceptions are made to those continuing to work) to ascertain the needed distribution
  5. Any one account can be used to satisfy the needed distribution (you do not have to take a little from each account, making it easier from an organization standpoint) BUT you must take at least the minimum distribution
  6. Failure to take the mandated distribution amount COULD result in a 100% tax – Break in – our experience has been the IRS is nice about this, but let’s not test them

Here is a neat three part series from a while back that is worth a review!

70.5 is the key starting age

The mandatory commencement date of RMD’s is the year AFTER you turn 70.5 years young, under current tax law…

If you accept this first year deferral, you will incur two RMD’s in the year you commence your first RMD…

Depending on the situation, it may be advisable to distribute your first year RMD a year early so as not to clump your taxable distribution….

Is your DOB between 7-1-47 to 6-30-48?

Then you turn 70.5 in 2018 and you CAN defer your RMD until 2019, however you will have two RMD’s next year — be careful, large distributions could toss you into an extra tax bracket.

Reach out if you have ANY questions, we have plenty of time, BUT the clock is ticking…

Have a great ‘RMD Efficient Distribution” 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