Category Archives: Newsletters

Q 4 2020 Newsletter Video Audio Podcast Review of Year Events, Cause and Effects By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 4 2020 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 a 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

Unlike the last two Newsletters which had very little economic and market related comments, this one is all about where we have been, what has occurred and where we may be going!

J.K. Financial q 4 2020 newsletter

Let’s get going!

Thanks in advance!

Q 4 2020 Newsletter

(YouTube)

As the spread of the Covid Virus occurred, Capital Market Participants in true anticipation form, voted with their feet and sold assets across the board well ahead of the eventual lock downs.

The largely followed S&P 500 (Larger US Companies) fell over 33% along with major international markets such as the German Dax falling over 35% and US Small companies represented by the Russell 2000, falling over 40%.

The most startling item of the drop was the speed at which this drop occurred, 27 days!

Ignoring the speed of these most recent declines is a bad idea as we need only look earlier in 2018 to see ANOTHER very fast drop.

The FOMC Steps In – Lowers Rates

By Mid-March as Capital Markets continued their descent, the FOMC (Federal Open Market Committee) led by Jerome Powell, dropped the hammer on interest rates by a full 1% to zero. During normal times, .25% is the usual adjustment as can be seen by the late 2019 and early 2020, non-crisis adjustments.

FOMC Adds More Fuel

Correctly using the financial crisis of 07-09 as the play book, the FOMC took the bazooka out, and starting buying assets to flood the markets with liquidity.  The current bazooka is much bigger (about 3 X) this time as can be seen by the difference in balance sheet increase of $1 Trillion in 07-09 versus the $ 3 Trillion and counting increase currently.

It Worked (Maybe Too Well), Capital Markets Took Notice

You know us to be very positive – all through the many negatives that have occurred !

You also know we will call it like we see it!

Markets have officially gone too far and are ahead of themselves, expect bumps and no extra risk taking is warranted at this time – CAREFUL!

We hope you enjoy … talk to you Next Year – 2021 !!!

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

Newsletter is In the Mail … Full Review Coming Next Week – Hopefully – Out of Town Tennis – Friday

Wow, did the Newsletter come out great – well at least we think so. Jen mailed them out today, so hopefully some good reading for you maybe over the weekend if you are so inclined…..

By the way, if you know someone that may find our newsletter interesting and useful, send us their address, we will add them to our mailing list — yaya, the novelty of a paper Newsletter, call us old fashion, but we are so old fashion we are new– at least we think so – haha – ok digressing again!

Those that received the September review mid week may have noticed the video was not embedded in the email for some reason … inquiry minds want to know and are trying to figure it out… hence the delayed Newsletter review…

Tennis Weekend

Good news … the tournaments are starting up in full force and with a little luck, social distancing and strict following of the rules maybe we can continue – 15 year old is getting closer to 16 and closer to graduation – sophomore…. time goes fast…

Ahhhh, but today is a Friday heading into a wonderful temperature weekend in our neck of the woods….

Enjoy, be safe and we will get that Newsletter Podcast video Review out to you next week, one way or another !

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

2020 Q3 Estimated Quarterly Tax Reminder … Newsletter Pre-View …. Friday

Reminder … especially pertinent given all the changes in due dates !

ES Q 3 Quarterly Tax Estimated Payments Due

Next Tuesday, September 15, 2020 is the Due Date of Quarterly ES Payments … here is a direct link to the IRS pamphlet where you can find the coupon, instructions and of course where to mail the payment!

Newsletter Preview

With fingers crossed that current events don’t destroy the third Newsletter in a row, we are trepidly wading into a review of the events so far this year, our thoughts … and some really neat charts that we think you will like…

Here is a sample of a couple of our favorites so far:

This second chart is amazing to us …just how much horsepower is being thrown at the Global Markets!

Friday

Ahhhh… today is a Friday, heading into a big pro sports filled weekend ….

Enjoy, be safe and have a Great Friday and Weekend!

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

Q 3 2020 Newsletter Video Audio Podcast Review By John Kvale The Future is Brighter and Faster

Welcome to our Video and Audio Podcast Review of our Q 3 2020 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 a 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

You will notice no market comments in this Newsletter Dominated by Health Related discussions…

Let’s get going!

Thanks in advance!

Q 3 2020 Newsletter (YouTube)

 

Peter Diamandis –

As a reminder, here is Peter’s high level CV … impressive.

Founder/Exec-Chairman, XPRIZE Foundation – www.xprize.org
Co-Founder, Co-Chairman, Planetary Resources, Inc. – www.PlanetaryResources.com
Exec. Chairman, Singularity Univ. – www.su.org
Co-Founder, Vice-Chairman, Human Longevity Inc. – www.HumanLongevity.com
Co-Founder/Board Member Covaxx – www.covaxx.com
Co-Founder/Board Member Celularity – www.celularity.com

Along with founding 22 companies and counting.

The Future is Brighter and Faster than We Think!

We hope you enjoy … talk to you at the end of  Summer !!!

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

Getting Ready to Mail the Newsletter, Looking for Stamps? … Holiday & Travels Heads Up! Friday ….

Getting ready to send out the Newsletter next week, very excited and hope you guys enjoy.

Here is a sample to wet your appetite (yaa yaa financial nerds) …

Q 3 2020 JPG Newsletter Header

Since it does not have extremely time sensitive information we are sending it to you a little early, in case you have a spare moment due to the July 4 (3rd holiday) weekend next week…

You would never guess the hold up … so we will tell you… Stamps!

Yep, our stamps.com labels ran out, the mail is running slow for more delivery, and best of all …. after Jen and family traveled to MULTIPLE ( a lot) of post offices, there were no $1 stamps…

No kidding … not clever enough to make up how hard it may be to get a good old fashion stamp!

Don’t worry, we will get them out and will have a Video, Blog, Podcast review too!!

Speaking of Holidays, next Friday July 3rd, is a Market Holiday and our office will be closed with several of us traveling around the long weekend…. in state…  not certain of travel Wifi intensity… so maybe slight delays in email responses.

Ahhh…. but that is all next week, this is Friday, heading into a weekend almost exact middle of Summer…

Enjoy and Be Well and Be Safe!

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

SPECIAL CARE ACT EDITION – PLEASE SHARE – Q 2 2020 Newsletter Video Audio Podcast Review By John Kvale

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

Break In : If you don’t have a Twitter account, the time is now – many of the CARE ACT services are crashing their regular sites, as such communication is being made via Twitter … If you REALLY do not want a Twitter account, just use it as a browser, however by having an account you can subscribe to whatever entity you need to follow and you will be notified immediately as they comment.

This is also useful for following your industry organization, important company or almost anything you may need immediate notification.

 

Let’s get going!

Just so you know this was hurried with a call before and just after this video, so it was not edited as normal … but wanted to get this out to as many as possible as fast as possible… Never claimed to be a Spielberg .. haha … prompt, complete delivery of this information was very important at the moment!

Thanks in advance!

Q 2 2020 Newsletter

 

The CARE ACT –

On Friday March 27th 2020, a stimulus package was passed into law for the benefit of those being effected by the Corona Virus officially starting the clock for many programs.

The general spirit of the most important parts of the bill is getting money into the hands of consumers quickly AND attempting to incentivize employers to keep workers on the payroll!

Recovery Rebate

Checks Being Sent to Over 90% of the population

Each person to receive $1200, kids UNDER age 17 credited to parents at $500 each, no limit in headcount.

This Rebate is NOT TAXABLE!

The payout is likely to be sent out end of April or early May!

The applicable AGI phase out threshold amounts are as follows:

  • Married Joint: $150,000
  • Head of Household: $112,500
  • All Other Filers: $75,000

One time Maximum $100k IRA Distribution Available in 2020 Only

Investors affected by the Corona Virus can take a maximum of $100k of a Corona Virus impacted distribution from your IRA or Employer related plans.

  • There will be no 10% penalty for the withdrawal.
  • There will also be no 20% mandatory withholding.
  • You must take this distribution by 12-31-20.

You can repay this distribution within three years and have NO TAXES. You may stagger payback contributions over any time frame as long as you pay all of it back within three years of the day you received the distribution in order not to have taxes due on the distribution.

RMD’s (Required Minimum Distributions) Waived in 2020

All RMD’s for any and all mandatory plans are waived as of 2020.

This includes all types of RMD’s including those with the five year rule.

Next year will not mandate a doubling of the RMD.

Next years RMD will be on the higher mandated level, but again will not cause a duplicate.

One Off Charitable Deduction – Small – Available Only to Non Itemizers

Included in the new Coronal Stimulus package is a one time above the line, Charitable Donation Write off of $300.

This amount is only available to those who do not itemize.

Pandemic Unemployment Insurance Benefit

A New Pandemic Unemployment Benefit available to those effected by the Corona Virus.

This benefit is additionally available to those that may not have had access before, mainly self-employed individuals.

This new benefit is $600/week and lasts for four months.

There is also the elimination of the first week waiting period, allowing those immediate access if needed.

Student Loan Deferral

No payments required until September 30th of 2020!

No interest will accrue during the interim.

Must notify your loan provider if you are on automatic payment.

Paycheck Protection Program – AKA SBA Loan Program

Forgiveness loan that can be totally FREE to small business owners if they qualify and use the funds appropriately. If not, they will receive a possible 10 year term, 4% maximum interest rate from the Small Business Association, happily administered by qualified local banks in an attempt to speed the process of getting the loans to business owners.

The purpose of this loan is too keep your people employed!

Available for business owners of less than 500 people who were or have been adversely affected by the Corona Virus.

Must certify Good Faith that the business has been affected by the Virus. Which can include uncertainty of the future.

Must be applied for by June 30, 2020!

Repayments will not commence until at least six months and no longer than twelve months.

Loan amount is the lesser of $10 mllion or 2.5 times your average monthly payroll in 2019 – EXCLUDING AMOUNTS OVER $100K ANNUALLY

Capital Market Update –

Bonds are so good they are Bad

Given the speed of the equity stock, drop due to the ever expanding Coronavirus. Investors were caught flat-footed and in a dash for cash, sold their old faithful bond holdings which are viewed favorably again due to their safety.

Using history as our guide, not only does this correct itself, but also likely turns out to go even higher in value, which is what happens when rates go down and bonds go up.

In closing, one more bit of good news in almost all cases we will have reinvestment of income at these lower prices, taking advantage of that pricing for our own benefit.

2-26-20 VBMFX - Largest Bond Fund in World

We hope you enjoy … talk to you in the Summer !!!

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

Q 1 2020 Extended (12 Page) Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 1 2020 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

Let’s get going!

All New Pictures, Intro and Exit Music !

Q 1 2020 Newsletter

Click for PDF/Printable Version

 

Is Inheritance Taxable ?

This, our lead financial planning article for the newsletter-  With the subject of inheritance and the taxability of it occurring multiple times in the most recent quarter, the idea for this article spawned.

After completing the initial article, a continuation article idea also occurred which made the second part of the inheritance subject matter about being separate property.

We hope you enjoyed both articles and this was our lead financial planning articles.

All about the Car

In another fun personal financial planning two – part article, long desired, but fearful of writing …this article discusses the car, should you buy or lease and how to do so. Again, a second article occurred at a chance meeting in an airplane with a former law officer watching me finish the first article on the airplane!

In doing the research for these articles we ran across a really cool car research site, and mentioned some great buying resources as well.

Recession Thwarted – Capital Market Thoughts

To ignore new evidence in our minds is silly even if it goes against the grain of what you may have been saying!

In this article we review a CFA speaker’s slide about lowering rates during a recession and his conclusion. Bottom line, we’ve not been a big fan of lowering rates during economic growth, but an inverted yield curve which is highly predictive of a coming recession, along with lowering of rates, according to the speaker and the enclosed chart leads to a thwarting of the recession.

We hope we are wrong on this one and the speaker is correct!



Reach back to last year’s taxes in savings you can do now

In this article we discuss the remaining tax savings ideas that we can do this year, that will help last year’s taxes-

  • The SEP – Simplified Employee Pension
  • HSA – for the Health Savings Account
  • IRA – An oldie but a Goodie if it’s available to you
  • Roth – While not a tax saver you can do it now for last year’s taxes
  • Itemized itemize itemize – With today’s high standard deductions you may not be able to itemize but we remind that it’s a good idea to stay in shape as it’s likely these itemize deductions may come back in the future

We hope you enjoy … talk to you in the Spring !!!

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

Q 4 2019 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 4 2019 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

Let’s get going!

Q 4 2019 Newsletter

Click for PDF/printable version of Newsletter

 

And here is your review!

Is it Time to Refinance?

With Mortgage rates moving lower, we discuss the major items to think of when refinancing your Mortgage.

Our most clever point is we like to have an 18 month payback for the costs when refinancing… this serves as a good barometer on when to refinance, irrespective of the size of your Mortgage.

 

30 Year US Avg Mortgage Rate

 

Tariff Talk

It’s been going on for a long time

Trade Wars AKA Tariff talks have been around for a long time. This is not our first rodeo… notice how trade has been more efficient over time!

 

us-trade-wars-history Cropped

End of Year Tax Reminders

While there are a lot of reach back tax items i.e. Things we can do next year for this years taxes… there are many that have a firm year end deadline-

  • RMD – Required Minimum Distributions
  • Company Related Retirement plans i.e. 401k
  • Charitable Donations
  • 529 and other education programs

We hope you enjoy … talk to you in ….. 2020 WOOOW !!!

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

Q 3 2019 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 3 2019 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

Let’s get going!

Q 3 2019 Newsletter

Click for PDF/printable version of Newsletter

And here is your review!

Why We Write!

Here we are again:20190630_133340742_iOS

We had planned on leaving this out due to repeated appearances here in our blog and in the Newsletter – but in true “Break In” like format, as this post is completed and the video – hopefully the local wifi is strong enough for uploading … the time is spent in Austin Texas at this moment in another rain delay- the same exact place the original article was written!

Tax Talk/Review

Change Likely the New Normal

After two decades of only minor changes in the Tax Law… it was overhauled and many changes were made that were reflected in our 2018 tax returns.

This neat chart is a nice reminder of the current brackets and can be helpful in income distribution tax bracket management.
Tax Bracket Graph

Inverted Yield Curve Update

This chart featured in our Newsletter is a slightly different term comparison of the 2 year (we like the 90 day) versus the 10 year, but a wonderful historical view of inversions and recessions. We have fully inverted for over a month now and if we use this historic guide as our yardstick a recession would be in the cards mid year 2020!

JPMorgan Inverted Yield Curve History

Social Security Update3-20-19 - Invitatation to SS Info Event with Tom Clark_Page_2

We have begun a detailed review of the late spring event and it is going great. Weekly we dissect a section of Social Security Expert, Tom Clark’s presentation and give handy links to greater details and explain in bullet fashion the main points. Here is a link to the Audio on a special page here at our blog and you can also click here for a link that will pull up each complete post!

There are tons of nuances regarding Social Security, Disability, Death Benefit and Medicare decisions…we look forward to discussing many more with you as the summer weeks occur!

We hope you enjoy … talk to you near the end of Summer!

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

Q 2 2019 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 2 2019 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

Let’s get going!

 Q 2 2019 Newsletter

And here is your review!

Capital Market Talk

Recession and the Inverted Yield Curve

Ask any long distant runner what happens when they start out too fast and they will tell you it is not good new – The saying goes for every minute you go out too fast, you come back two minutes slower than normal…

In our main capital market article we discuss the reasons why we may have a recession by definition, but why it may not be a big deal (hopefully).

The Inverted Yield Curve (Short term interest rates higher than long term rates) and infrequent event, did occur for five days – so far – just after our Newsletter went to the publisher. The Inversion has been a good signal of recession, EVENTUALLY – some times as long as two years in advance.

They Don’t Want Your old 401k

A recent Cerulli study finds that once you leave the company, most really do not want your funds anymore. We have long suspected this.

  1. Frequently a short wait time turns into a long wait time with a different and much more general help line.
  2. Forms may be much more difficult to acquire.
  3. Paper work received, saying take it or we will distribute it and you will have taxes and penalties.
  4. Rolling over into an account that is TERRIBLY hard to get out and has hurdles to jump through, high monthly service charges as well as limited investments, if any.
  5. A general feel of everything is hard to do, once again explaining the Cerulli study results.

Are a few items we have run into over the years!

Iron Clad Trustee

General order of Trustee or other important people to execute your wishes when you are incapacitated or deceased, generally go like this:

  • Spouse
  • Sibling
  • CLOSE friend
  • Similar Aged Relative
  • Grown Children

As we can all imagine, this list can easily be very short and insufficient.

In our deep dive of the Institutional Trustee Services, we discuss the handiness of having such a great service as well as the ability to offer these services ourselves.

Choose Your Beneficiaries Carefully

In this article that fit nicely with our Trustee article we mention different types of Beneficiaries and most importantly. Make sure you confirm that your beneficiaries are correct as this will over ride you other documents, including a Will or Trust.

We hope you enjoy … talk to you in the Summer!

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