As mentioned last week, the Newsletter is in creation form. With our new format of shorter pieces and more of them … we hit the road in this Newsletter to point out some positives.
It’s easy to find negatives, if you’re like me those hit you in the face almost daily … and are very hard to avoid, but positives on the other hand, can be a bit harder to find.
Not to worry we’re good hunters.
We Understand Why Musicians May Never Know What’s Going to be a HIT!
Wednesdays post, or small story of an actual event about possible crooked used auto offers … hit a chord like we’ve not seen in quite some time. We were contacted from all across the United States and even from some on foreign soil. The funny thing is is we never know what’s going to be a hit … but we really appreciate it when we do, and we thank everyone for taking a moment to read our posts as we know time can be ones most precious commodity.
If you missed it here is a link to one of our more popular posts of recent time. We’re not going to publicly say what dealership it was, we will privately if you want to know, but again thanks for taking time to read our posts and even greater thanks for reaching out to us about it!
Ahhhhhh … but today is a Friday, heading into a 100+ heat index Weekend, stay hydrated, be safe, enjoy, and spend time with those special in your life.
Welcome to our Video and Audio Podcast Review of our Q2 2022 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.
BREAK IN – We are trying a new format of articles that are shorter, and hit a very wide variety of topics that should interest all ages and chapters…. Let us know what you think?
Click the Download button below, 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
All about the Stimulus Base Effects and the Coming Comparable (Hurdles)
In our main article, a somewhat follow up article to our Q 1 2022 Newsletter Main Article “Anatomy of a Slowdown” we review the base effects we as an economy are about to have to hurdle.
Sale of many companies exploded higher, similar to the one below, but now must be digested..
Look Back Tax Savings – Spousal IRA – SEP – HSA , These can be done before your filing due date of April 18 to Possible Lower Your 2021 Taxes
With tax season officially underway, actually nearing an end, the official filing date for non-extension regular Form 1040 Filers is April 18th, 2022 (this year) for year 2021 tax filings, just a few weeks out. There are a few tax saving ideas that even with the turn of the calendar can be implemented to possibly help last year’s income taxes.
Self Employed Pension plan-the SEP as it’s commonly called is a great vehicle to offset income that is not of the W2 type, think consulting income.
The Spousal “Qualified IRA” is another handy tool to use if one of the spouses does not have any form of a retirement plan.
The HSA. One of the great parts of the HSA is you only need a high-deductible health insurance plan
Estate and Gift Planning Update – Annual Gifting Amount – Estate Tax Update
Annual Gift amount upped to $16k per person
Estate Tax Stands at $12.06 million per person or $22.12 million per couple
“Last year certainly garnered many headlines of possible changes in much of the estate tax laws. In all fairness we fielded many questions and thankfully once again stuck to our mantra of until it is law, one should be very careful at making preemptive adjustments. There certainly can be changes in the future, but again short of knee jerk reactions, we tend to like for law mandates to be made for reaction, rather than rumors. “
Financial Planning/Retirement Planning Trick for those Early in the Workforce – Roth contribution for young working
Helping a new worker contribute to a Roth and an early age to jumpstart a retirement program…
From the Article…
“Most likely if a young worker is making a very nominal amount, and possibly still living at home, they will not have the cash flow to contribute to any type of retirement plan. But if someway somehow they can make a Roth contribution at least up to their earnings at a very young age the long term positive consequences of this can obviously be fantastic.”
“If a 17 year old was somehow able to get $6000 in a Roth (one time!) and earn 8% a year at age 66 he/she would have about $191,000. If that same 17 year old were somehow able to get $6000 a year until he or she was 23, (five years), and had the same 8% compounding until he or she was 66 there would be a nest egg of just under $1,000,000. That $1,000,000 would not be subject under current tax laws, to mandatory required minimum distributions (RMS;s) nor again under current tax laws would it be taxable income upon distribution.”
If you ever want to know just how fast 90 days go…. at least it does for me, the Newsletter seems to come very fast each quarter, happily of course …but fast…. Remember when Birthdays seemed forever to come? Not sure about you, but try to dodge them now… and they darn sure come faster… Ok Ok Digressing….
The Newsletter is under construction with a big construction goal this weekend… Given that the last two years of Newsletters have been dominated by one subject matter (some self imposed, some environmentally demanded) … this Newsletter comes in hot, with shorter articles, more subjects, and attempt to hit various age groups … Will see if we hit the bullseye!
Newsletter Subjects Abound
We have run across some really interesting subjects, especially as it relates to the economics of the stimulus and its effects on the economy. We may have just experienced a once in a generation event, that may be very evident in retrospect with analysis.
With lots of Tax law changes, the New Newsletter will have a good bit on that too…. Some reminders and some techniques, and hopefully some interesting tax savings techniques….
Ahhhh… but today is a Friday, heading into a Newsletter constructing weekend… after the frozen tundra just seven or so days ago, it is clear skies and warm weather here in the south… not over the cold yet here, but nice to have signs of Spring… heck a Robin has been wandering around the back yard, pretty sure that is a good sign that spring is near … just need our “early to bloom tree” to give us the signal…
Welcome to our Video and Audio Podcast Review of our Q1 2022 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 the Download button below, 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
In our main article, we review the last three drawdowns/slowdowns/recession for examples of how fast they occurred and the extremely fast recovery as can be seen by the main graph below.
We are not calling for a major slowdown/recession or the like, but we wanted to remind ourselves as well as everyone else, the last three drawdowns were not normal.
Longer drawdowns are the norm, and in the Newsletter Article we also go deeper into the Great Financial Crisis of 07-09, which was also not normal… it was much larger and much longer than the normal.
The past decade and a half have had it’s scary moments, but they did not last very long and were quickly attacked by the FOMC (Federal Open Market Committee) to give support in the system, fortunately very successfully. This may not always be the case, hence a reminder of the Umbrella use during sun shining times!
New Retirement Contribution Maximums, Best Practice, Tips and Tricks
The new retirement maximums are out at the IRS Website .
Again in our Newsletter article we remind those of smooth contributions throughout the year, UNLESS you have knowledge that may have you severed from your 401k some time during the year, in which a neat trick is to accelerate you contribution level in order to max that 401k out before you leave!
IRAs
2022
2021
2020
2019
401(k), 403(b), Profit-Sharing Plans, etc.
2022
2021
2020
2019
Annual Compensation
305,000
290,000
285,000
280,000
Elective Deferrals
20,500
19,500
19,500
19,000
Catch-up Contributions
6,500
6,500
6,500
6,000
Defined Contribution Limits
61,000
58,000
57,000
56,000
IRA Contribution Limit
$6,000
$6,000
$6,000
$6,000
IRA Catch-Up Contributions
1,000
1,000
1,000
1,000
Traditional IRA AGI Deduction Phase-out Starting at
Welcome to our Video and Audio Podcast Review of our Q4 2021 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 the Download button below, 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
BREAK IN – We hope you see videos in the email notification, but if not, you may click on the code for the actual video…hence the dual videos, hoping one works on your cell!
Welcome to our Video and Audio Podcast Review of our Q3 2021 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 the Download button below, 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
BREAK IN – Below is a new format for our Newsletter, hoping this pulls through on your Cell Email!
Welcome to our Video and Audio Podcast Review of our Q2 2021 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 the Download button below, 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
In our lead article of the Q 2 2021 Newsletter, we remind all of the importance of checking your Social Security Record, no matter your thoughts on the longevity of Social Security….
Additionally we walk you through step by step on how to do this and also how to set up your SSA on line account!
Secure Act – Possibly Forgotten But Important Changes
With the passing of the SECURE act, the old age of 70.5 mandatory RMD (Required Minimum Distribution) was pushed to age 72.
Many times, it is not appropriate to wait until this age, depending on the location of some assets. EX Large IRA compared to other non iRA investment, Tax Brackets, One Off income Years
For those where it is appropriate to wait until the latest possible date, you can actually wait until the year AFTER you turn 72 as long at you take the distribution before April 1 of the year AFTER turning 72.
Warning, in almost all cases we discourage this last maximum delayed technique as it ends up forcing two RMD’s in the same tax year of your 73 birthday.
Buffet Valuation Indicator
Warren Buffett, the usually closed lip investor, years ago mentioned his macro Valuation indicator which is shown below.
It has never flashed “Over Valuation” as much as it is now!
Expecting tremendous Earnings Growth to help turn this indicator around and head the other direction!
As mentioned earlier … neatly this year we were able all have flex schedules and each of us were on R&R at different times.
While technology allows us complete connection, a little looser tether is always welcome when possible.
Donald the Brian hits the beach for a few next week….
Enjoy – Much Deserved, we have your back!
Newsletter at the Presses in NY
The final touches of the Newsletter have been completed and the NY pressers are in motion. Look for the paper copy in your mailbox soon….
We coined this Newsletter “The Reminder” given much of the content is a timely reminder for to do’s and laws that were passed but likely forgotten given the unique 2020!
We of course will also do a Video explaining in greater detail our thoughts and how we came up with the articles as well as greater insights than the coverage may allowed….
Ahhhh…. but today is a Friday heading into a much welcomed beautiful weekend in our neck of the woods…
Enjoy your Friday and your weekend …. talk next week!
With an unused make up snow day today (not sure how that happened but oh well) – kiddos out today – and next week being Spring Break an attempt personally to take some R & R time next week, I am out today and next week….
Always tethered, this time lightly as Jen and Donald are very capable of covering !
BREAK IN – Spring has sprung… each year the family watches for the early budding Tree in the back yard… Great News, the deep freeze of just a few weeks ago did not do our early budding tree in AND in the last 24 hours the blooms have started…
Who needs the Groundhog… kidding-
Well done Pierce for spotting !
Newsletter Update
While gone, the finishing touches will be put on the Newsletter, AND next week we will do a shortened version of one of the main articles – Why You Should Check Your Social Security Earnings Record Now!
Time Change Weekend – YAY
In addition to a little R and R, next week, we get my favorite time change! YAY
Sure we lose an hour of sleep…
Sure it seems to take a bit longer to adjust as the years go by…
But the Suns stays up LATE in the evenings…
Friday and Next Weeks Posts
If I can stay away from the keyboard – no promises…haha
In addition to the Newsletter Preview Post mentioned above, a re-run of another reminder post will occur as well.. hat tip DK from the field as a neat reminder!
Ahhhh…. but today is a Friday and I am away, but tethered lightly… enjoy your weekend and your Friday!
Welcome to our Video and Audio Podcast Review of our Q1 2021 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.
In this start to a new year, we update the pictures on the Video and also the entry and exit music. Our editor actually greatly adjusted the colors and fonts of the Newsletter this year, which we really liked as well.
Click the Download button below, 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
This Newsletter is chocked full of reminders from events and experiences we had with you in the field last year the would be helpful looking forward into 2021!
With a very large number of moves in 2020 …. much greater than we can ever recall, in this Article we remind of the Homestead.
In the year 2020 we have had more change of residences than we can ever recall over the past three decades. As a reminder, and using Texas as a template, if you live in your home on January 1 you can do what is called a homestead tax exemption. Once again through the lens of Texas, this is a particularly good tax savings exemption that everyone should do if you live in Texas.
Q 1 2021 J.K. Financial, Inc. Newsletter Lead Financial Planning Article
And just a bit more description from the same Article …
From TexasLawhelp.org – a fantastic non-profit resource we use frequently – again only for Texas residences, those living in other states may want to check for a similar organization.
What property qualifies as a “homestead?”
A “homestead” is a house or other residential structure that you own, together with up to 20 acres where the structure sits if the land is used for residential purposes. A manufactured home on a rented lot qualifies as long as you own the home. Manufactured homes must meet additional requirements for a “Statement of Ownership and Location,” but if you did not receive the paperwork from the prior owner and cannot locate the seller after making a good faith effort, you can submit the affidavit in Form 114-A.
Estate Planning Tops Our Minds
It was literally a race for the greatest increase over normal years, for folks moving to a new residence (per above) or reviewing and updating their Estate Plans.
Has Anything Changed Since My Documents Were Written?
Just because five, seven or even ten years have transpired does not mean that you automatically need to update your documents. If everything looks right, and things have not changed then those documents are likely just fine.
On the other side of the equation if things have changed in the past twelve months (or even less) that would make your documents incorrect, you likely need to do an update so your directives are appropriate.
Q 1 2021 J.K. Financial, Inc. Newsletter Second Lead Financial Planning Article
If we are not in possession of a copy, please send to us or upload to your Vault as we keep things safe and most importantly FOREVER!
Q 4 2020 ES Reminder – The Safe Harbor
Mid-month, January 15, 2022 to be exact is the final due date for Quarterly Tax Payments ( Q 4 2020 ES Tax Payments.) With a pushed out ordinary filing date due, it seems like to many we just filed last year’s taxes (2019), and here we are already rushed to complete 2020. Hence the reminder.
Lastly, if you are in a situation where you tax bill may be dramatically different from the prior year, in this case 2019, consider trueing up your 2020 taxes to at least 110% of year 2019 total Federal tax withholding. To help avert any penalties or interest.
Retirement Contribution Levels and Medicare IRMA Amounts
While we have posted these levels earlier here, and we know the formatting was a bit wonky, we wanted to review them again directly from the Newsletter.
Here are last years most common levels along with whats up for 2021 – mostly unchanged
IRMA – Income Related Monthly Adjustment Amount – Medicare Part B Surcharge
“ If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS. “
Here are the 2021 limits and adjustments:
We hope you enjoy … talk to you Next Quarter – Happy 2021 !!!
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.
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Q2 2022 J.K. Financial, Inc. Newsletter … Video Audio Podcast Review ! By John Kvale CFA, CFP
Welcome to our Video and Audio Podcast Review of our Q2 2022 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.
BREAK IN – We are trying a new format of articles that are shorter, and hit a very wide variety of topics that should interest all ages and chapters…. Let us know what you think?
Click the Download button below, 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
Let’s get going! We hope you enjoy!
Q 2 2022 Newsletter
(YouTube)
All about the Stimulus Base Effects and the Coming Comparable (Hurdles)
In our main article, a somewhat follow up article to our Q 1 2022 Newsletter Main Article “Anatomy of a Slowdown” we review the base effects we as an economy are about to have to hurdle.
Sale of many companies exploded higher, similar to the one below, but now must be digested..
Look Back Tax Savings – Spousal IRA – SEP – HSA , These can be done before your filing due date of April 18 to Possible Lower Your 2021 Taxes
With tax season officially underway, actually nearing an end, the official filing date for non-extension regular Form 1040 Filers is April 18th, 2022 (this year) for year 2021 tax filings, just a few weeks out. There are a few tax saving ideas that even with the turn of the calendar can be implemented to possibly help last year’s income taxes.
Self Employed Pension plan-the SEP as it’s commonly called is a great vehicle to offset income that is not of the W2 type, think consulting income.
The Spousal “Qualified IRA” is another handy tool to use if one of the spouses does not have any form of a retirement plan.
The HSA. One of the great parts of the HSA is you only need a high-deductible health insurance plan
Estate and Gift Planning Update – Annual Gifting Amount – Estate Tax Update
Annual Gift amount upped to $16k per person
Estate Tax Stands at $12.06 million per person or $22.12 million per couple
Financial Planning/Retirement Planning Trick for those Early in the Workforce – Roth contribution for young working
Helping a new worker contribute to a Roth and an early age to jumpstart a retirement program…
From the Article…
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
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Posted in Economy, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Podcast, Retirement Planning, Tax Related, Video
Tagged 401k, CPI, Interest Rates, Newsletter, Recession, Retirement Planning, Roth, SEP, Slowdown