Hello and Welcome to our September 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!
This is month two of our upgraded Laptop, which means a new recording system of Audio and Video — while still working the kinks out, we are getting the hang of it – Enjoy!
September 2018 Video
Financial Planning Tip (s) –
The Emergency Fund
In our post here, a shortened version of an article in the coming Newsletter, we review all, about a much needed Emergency Fund, and the levels for certain scenarios.
Reasons to be slightly bigger-
- Possible Job Change – Need to be higher on emergency funds
- New Family Member- Higher is better
- New Home – Expect unforeseen expenses – they always occur (Has anyone ever built or bought a home in less time and for less money than they thought? Nope, it’s in our nature)
- Salary Fluctuations i.e. Commissions – Error on the higher side of that emergency fund
- Others dependent on you – Business owner, large family, solo income earners, college or wedding – Higher is better
Reasons for a normal to smaller Emergency fund-
- Dual Similar Incomes – Lower Emergency fund is ok
- Very stable Job – Smaller side of the living expenses will
- Very fixed income stability – Pensions, Social, etc.
High Deductibles – Why to Consider
In this post, we discuss the reasons for considering a Higher Deductible lifestyle –
Break In – There are always situations that a High Deductible will not work, we are just pointing out the advantages, under the correct circumstances!
Auto Insurance: One of the best ideas to consider a high deductible – take a look here at the great examples of why.
Home Owners: Another great coverage to consider a higher deductible.
Health Insurance: Once again a good one, but certain situations can easily negate the advantages of this!
Capital Market Comments – Interest Rates and Bonds
Short Term Headwinds Of Higher Rates on Bonds
This busy chart gives a great picture of the short term effects of interest rates on bond. Coming from such an extended long period of unusually low rates, we are reminding ourselves along with everyone else, this is very normal phenomenon and will correct itself with time by putting extra dollars in our pockets in the form of higher yields.
Have a Great Day – Talk to you at the end of October!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
Q 4 2018 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
November 17th – Saturday before Thanksgiving – Dallas Athletic Club from 3-5 pm
Let’s get going!
Q 4 2018 Newsletter
And here is your review!
Capital Market Talk
Earnings and Markets Eventually Converge
In this hugely in depth article, first we discuss the effect of earnings eventually driving capital markets, but disconnects can occur. It can even be a good thing for Capital Markets to WAY underperform earnings, as they are this year because in brings valuations back in line.
Here is the key graph
Higher Rates, a Short Term Headwind, Eventually a Tailwind
With sustained lower rates over the last decade, memories have faded on the tugging headwinds that higher rates have – IN THE SHORT TERM – on the mandatory safety asset class of bonds.
Higher rates are a great thing as Bonds/Fixed Income Assets have a place for almost all investors due to their safety and liquidity.
Once the headwinds subside our fixed income investments will have ridden the yield curve higher and begin paying more income in the form of yield – into our pockets – Finally!
Too High of Rates Can Create Trouble
Too high of rates or an overshoot CAN create trouble … or a recession…
Our friends at JPMorgan – historically show that rate is about 5% – yea FIVE percent –
We disagree and think a lower level may now be this tipping point, due to the decade low interest rate level we have just experienced-
Current at two percent, we have a long way to go before getting too antsy
Inverted Yield Curve Update
So far to good- no inversion yet!
Financial Planning
This series of articles came out of no where and in like domino fashion, once one was done the next took form and fell into place-
App of the Quarter – Hardware
Our editor took the fancy picture out due to copyright fears, but our experience with the Firestick has been exceptional – Here are the highlights of our findings
Enjoy the fall –
See Ya next Year – Wow 2019 here we come!
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
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Posted in Audio, Earnings, General Financial Planning, Insurance, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Video
Tagged Bonds, Earnings, Firestick, HIgh Deductible, Inverted Yield Curve, Plup, Rates, Roku, S