Social Security Website and Items to check while you are perusing
In our Social Security related post here, we discuss the tons of new options for use as well as the fantastic updates the Social Security Administration has done with their website.
The most important item to check if you are not already drawing Social Security is your credits… which can be done on this site… recall there is a possible time sunset of loosing your benefits if you do not have the Social Security Office notified, leading to a possible lower benefit.
New Tax Table and Rates – Personal
Here are the new tax tables… if they look complicated, well it is because they ARE !
Expect much more on this throughout the coming months as we dig DEEP into the actual rates and the planning techniques necessary to optimize our tax liability …. One Important five letter word…. CLUMP – more later on this!
Bottom line, at its most basic level the yield curve should go upward and outward just as our home made chart below (the starting point for our discussion.)
When it does completely the opposite or inverts, as seen below… a recession is just around the corner for as long as the eye can see!
Expect a complete detailed video over the summer on this phenomenon … along with another review in the coming Newsletter… It can be boring info, not to worry … we will liven it up!
Have a Great Day – Talk to you at the end of June!
With Tax season finally over, here we mentioned how it seemed to never end…but we digress…
It appears the Cyber Thieves are back at it again, and have a new technique involving Social Security. Here in our Social Cyber Post, we discuss just how they are doing this.
Bottom line, if you see something suspicious, be sure to notify the appropriate agency.
Capital Market Comments
Early Discussions of the Interest Rate Yield Curve – Rates
This is going to be fun …. In the first of a multi-part series here, we discuss the basics of the yield curve.
Bottom line, at its most basic level the yield curve should go upward and outward just as our home made chart below (the starting point for our discussion.)
Final of FIVE Tax Savings Ideas you can do NOW for LAST Year’s (2017) Taxes
We completed the five part series … Three were let out of the box last month …. Let’s quickly review them and then the two final parts from this month!
HSA or Health Savings Account
Our post here, speaks of the terrific opportunity to set aside Pre-Tax dollars to use now or later for medical expenses.
SEP – Simplified Employee Pension
As mentioned in our Post Here, there are very high limits of contribution, and the SEP can be done during mandated RMD’s, as well as in tangent with a 401k program, as long as the upper limits collectively of contribution are not violated.
Pre-Tax Deductible IRA
As the one of the original retirement vehicles and so vintage many forget (We Don’t!) we want to remind here in our post about the IRA – Individual Retirement Account.
Tax Savings reach back reminders from THIS month/March
Maximizing the Sales Tax Deduction
Here in our post this month, we remind everyone to be sure and maximize your Sales Tax Deduction.
From the post …
Here are a few items that may make your standard sales tax deduction drastically inaccurate and woefully low- thereby costing you tax dollars:
Bought a large Asset – Think Car or other similar item
Had more then normal personal taxed expenses – for whatever reason
Large Taxable Asset of any kind purchased
Major expense where you paid sales tax – Think Wedding, Large Party
Be sure to maximize this deduction as it looks like the new tax rules will greatly mitigate it’s use moving forward.
Medical Expense Deduction
We all some type of medical expenses each year. What is a challenge if determining what is and is not deductible.
The IRS does a terrific job with their Publication 502 of reminding and outlining what may be a deduction. In our post here, we remind of a few favorites that we find are frequently missed …
Capital Expenses for home improvements
Transportation Cost
Television
Telephone
Are possible (check to make sure) deductions we find interesting and easily forgotten.
Capital Market Comments
Finding our Footing After Getting Ahead of Ourselves
Another month and our thoughts are the exact same…so much we did not even have to change the title of this part of the review from last month… the chart is updated … looks about the same…
We think patience is needed as this will take time to digest and again find our footing.
Patience will be needed!
Here is where we are now —
For those wondering …. for now, it looks like the 200 Day Moving Average (line below our trend line) is the lower level of support … It may break, which is fine, but for now, looks like someone wants it to hold.
We will keep watch and keep you updated!
Have a Great Day! Talk to you at the end of April!
Three Tax Savings Ideas you can do NOW for LAST Year’s (2017) Taxes
With the official kick off of Tax Season occurring some time in February … we are not sure what the “Official” start to Tax Season is, but we know it is sometime in February if not earlier .. haha
In an yet to be completed series – we still have two more parts, the first Three were let out of the box this month …. Let’s quickly review!
HSA or Health Savings Account
Our post here, speaks of the terrific opportunity to set aside Pre-Tax dollars to use now or later for medical expenses. In true Reach Back Tax Savings form, this contribution can be made now for last years taxes.
Be Careful though, you must make the contribution by the regular filing deadline i.e. No extensions to get the benefit applied to last year.
As mentioned above this account does not have to be used completely and can be delayed for highly likely future medical needs.
A handy trick we have used over the years when an employer makes some type of a contribution is to remind participants that in most cases you can make up the difference and get a tax savings.
Check with your Health Insurance Carrier to see if you qualify for an HSA contribution. If you do, we highly recommend you make the contribution.
SEP – Simplified Employee Pension
This beefed up IRA is another super Reach Back Tax Saver and the contribution can be made as late as your extended filing deadline.
The SEP offsets income that make come to you as non W-2. Think consulting, temporary work, as side business that generates income to you directly or any non W-2 regular pay.
As mentioned in our Post Here, there are very high limits of contribution, and the SEP can be done during mandated RMD’s, as well as in tangent with a 401k program, as long as the upper limits collectively of contribution are not violated.
Pre-Tax Deductible IRA
As the one of the original retirement vehicles and so vintage many forget (We Don’t!) we want to remind here in our post about the IRA – Individual Retirement Account.
Notice our careful heading of Pre-Tax Deductible IRA – We are not fans of the after tax IRA (contributing and not getting a write off) and in most case recommend you pass if you cannot deduct the contribution.
There are more limits to a Pre-Tax Deductible IRA under current tax laws, again be sure to see our post for limits and restrictions, but if you qualify, it is worth the savings as this is another “Reach Back Tax” saving idea.
Like the HSA, contributions must be made by the regular filing date- extensions do not help you. So do not wait until the last minute.
Capital Market Comments
Finding our Footing After Getting Ahead of Ourselves
In a coincidental oddity, we had been putting the finishing touches on a post prior to the ugly 10% FAST FAST correction that occurred in late January and February.
In our post here, we spoke on where we may get back on trend- No one knows, of course, but simple logic of an unsustainable path was our analysis.
We think patience is needed as this will take time to digest and again find our footing.
Patience will be needed!
Here is where we are now — Our Trend line is looking pretty good – So Far.
We will keep watch and keep you updated!
Have a Great Day! Talk to you at the end of March!
Two and 1/2 issues in one week… No one was harmed, but it was a great reminder, they are out there!
As we mentioned in our post just prior to this one, the Grand Enchilada of Tax Forms enters the mail and electronic systems this week. These most popular forms are due by the end of January and fraudsters are taking notice.
Keep your eyes and ears out for anything suspicious!
Vault Saves Day Twice
Here in our real life experience post, we ended up needing the Vault to help save time and a HUGE hassle at a far distant Tennis Tournament. Who would have thought they would be so strict in identification at a Tennis Tournament?
Here is a neat reminder of what might do into your very own Personal Vault:
Legal Documents □ Wills □ Deeds □ Revocable & Irrevocable Trusts □Power of Attorney □ Codicils (Supplements made to a Will) □Living Wills/Health Directives □Prenuptial Agreements □ Buy/Sell Agreements □ Contracts Social Security and/or Veteran’s Administration Info Insurance Policies (Life, LTD, Disability, Medical, Car, Property) Medical Records Bank & Investment Statements □Pensions, IRAs, Annuities etc. □Investment Accounts □Stock Options/Certificates Liabilities □List of Credit Cards with contact information □ Mortgages □Loans Taxes □Tax Returns □ W-2 Forms Identification □ Birth Certificates □ Drivers Licenses □Passports Family □ Adoption Papers □ Marriage License □Pictures □ Audio Files □ Video Clips Property □Titles to Homes, Autos, Boats, etc. □ Warranties Employment Benefits
Capital Market Comments
Interest Rates
10 Year Treasury touches 2.70% – Where to next?
After floundering in the low 2% range, it appears interest rates may be on the rise. This is just in time as the FOMC (Federal Open Market Committee) are set to raise short term rates several times this year and the one thing we DO NOT WANT is an inverted yield curve (more on this another time).
We have argued higher rates are helpful as long as they move gradually.
Here is our December 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.
In our post, here and here we discuss the Medicare Means testing levels, both historic and what we are faced with in 2018.
Due to the faster lower Tiers of income, the Social Security Administration has casted a wider net for all of us.
Here are the new levels, again from our post AND in even GREATER details in our Q1 2018 Newsletter.
A life event change may create relief – Life events not limited to the following-
Marriage
Divorce/Annulment
Death of Your Spouse
Work Stoppage
Work Reduction
Loss of Income-Producing Property
Loss of Pension Income
Employer Settlement Payment
Please see our Q1 2018 Newsletter for detailed instructions on how to get relief from these faster grabbing surcharges.
Personal Spring Cleaning in the Winter
Personal Reminder Email Tip
In our post mid-month here we discussed cleaning your emails to lower the Tidal Wave of daily emails.
After almost four weeks we are down to a trickle.
What was most interesting were the different experiences of who was up front and nice about the “Unsubscribe” request and who was down right dirty about letting us off their list. Surprised and disappointed with some companies.
Capital Market Comments
VIX – Fear Index Goes into Hibernation
We initially wrote in our Newsletter article and Blog post here, the VIX went to sleep … after another few closes below 10, we are coining it “Hibernation”
From 1990 to 2016 this Fear index closed below 10 a total of 9 times. During the year 2017, it has closed below that level 52 times and counting !!
Wow … Hibernation!
Interest Rate Increases
Just few years ago, with former FOMC (Federal Open Market Committee) chair Ben Bernanke running the show, a miscalculated mention of a pending interest rate increase threw the Capital Markets into a tail spin – and that was just a mention of one small .25% increase. WOW-
When the history books are written on this period of time, FOMC members “Listening” to markets may be prominent, and possible reason for success.
In 2017, the FOMC raised rates 3 times with very little market disruption. They are on record for 3 more in 2018. The best part of this, market participants are not throwing a hissy fit and seem to be welcoming the increases.
Today, we think NOT increasing the rates as forecasted would cause more harm than increasing – exactly the opposite of just a few years ago. Way to pivot FOMC officials.
Here is our November 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.
In our post here this month, we reminded all of those with birthdays between 7-1-46 and 6-30-47 that have the unique option of deferring their first mandatory RMD taxable distribution to next year, but if you do that will mean you need to take two distributions in the same year.
Considerations:
Higher/Lower Income
Bigger/Smaller Expenses
More/Less Donations
The first year is the only time we get this option, all the future years are mandatory with not option.
Capital Market Comments
A lot of positive indicators – Markets taking notice
It appears the US and Global Economies are finally making a synched recovery. Capital Markets are taking notice.
As we mentioned here, Unemployment rate hit a very low 4.1%
This time, International Markets have wind in their sails as well….
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.
Annuities etc. □Investment Accounts □Stock Options/Certificates Liabilities □List of Credit Cards with contact information □ Mortgages □Loans Taxes □Tax Returns □ W-2 Forms Identification □ Birth Certificates □ Drivers Licenses □Passports Family □ Adoption Papers □ Marriage License □Pictures □ Audio Files □ Video Clips Property □Titles to Homes, Autos, Boats, etc. □ Warranties Employment Benefits
May 2018 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our May 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.
May 2018 Video
Financial Planning Tip (s) –
Social Security Website and Items to check while you are perusing
In our Social Security related post here, we discuss the tons of new options for use as well as the fantastic updates the Social Security Administration has done with their website.
The most important item to check if you are not already drawing Social Security is your credits… which can be done on this site… recall there is a possible time sunset of loosing your benefits if you do not have the Social Security Office notified, leading to a possible lower benefit.
New Tax Table and Rates – Personal
Here are the new tax tables… if they look complicated, well it is because they ARE !
Expect much more on this throughout the coming months as we dig DEEP into the actual rates and the planning techniques necessary to optimize our tax liability …. One Important five letter word…. CLUMP – more later on this!
Capital Market Comments
Interest Rate Yield Curve – Rates – Inverted Yield Curve
Bottom line, at its most basic level the yield curve should go upward and outward just as our home made chart below (the starting point for our discussion.)
When it does completely the opposite or inverts, as seen below… a recession is just around the corner for as long as the eye can see!
Expect a complete detailed video over the summer on this phenomenon … along with another review in the coming Newsletter… It can be boring info, not to worry … we will liven it up!
Have a Great Day – Talk to you at the end of June!
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 General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Social Security, Tax Related, Video
Tagged Inverted Yield Curve, Social Security, Tax Table, Yield Curve