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!
Two Handy Reminder Posts – Credit Report and Social Security Earnings Credits
We had not one but two really good reminder posts over the last four weeks, on which is featured in the Newsletter in great detail and one that is a handy annual reminder – hat tip DK!
Here in this post we highlight why and how you can check your credit report. This is a really good thing to do at least annually to see if there are any barnacles attached to your credit, thereby lowering it and possibly causing other costs in your life to increase i.e. as mentioned in the insurance.
Here in this second post and again also featured in the Newsletter, why you should check to make sure you are getting credit for those hard earned tax dollars being sent to the Social Security Administration AND very importantly a reminder to look for missing credits in your history!
Stimulus Check Update
In this post, we detailed the planning techniques associated with the third round of $1400 stimulus checks and what to watch out for as well as the new cliff thresholds of phase outs… further detailed with the following chart:
Capital Market Comments
Maximum Macro Economics Coming Soon
Not every trying to be a trend setter or first into the pool – we accidentally beat most of the regular commentators here in this post to the fact that there are likely some VERY HOT ECONOMIC numbers coming our way.
These will occur due to easy comparisons associated with the drop in Economic activity about a year ago as well as continued lift off as we open up for business once again.
There will be interesting dialogue in the Headlines – Be for warned much of this may be skewed by the afore mentioned!
Have a Great Day, Talk to You at the End of April!
As mentioned here in our post, do not feel bad if you lost track of changes, as in just over 12 months there were THREE – yes three major laws implemented.
Late December of 2019, the SECURE act (Setting Every Community Up for Retirement) among other things, upped the first mandatory RMD (Required Minimum Distributions) from Qualified/IRA/401k type plans to 72!
The Covid 19 related Cares Act passed in late March of 2020 nullified RMD’s for all of 2020, making for some confusion.
Second Stimulus Check Update
In this post, we review the new Stimulus check amounts, and where you can CAREFULLY go to check the status of your check…. here are the highlights…
Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment.
Here is the link to the US Government tracking site:
Be very careful when opening this site to NOT allow your browser to jump to any other site than that associated with the IRS as you will be asked for confidential information!
Capital Market Comments
Buffett Back Of Napkin Valuation Metric
After happily receiving an “OK” to reprint graphs directly from the CEO of this industry publication – Look Out, there are tons of Great Articles that we look forward to bringing you!
Up first, a great broad Buffett “Back of the Napkin” Market Value Metric- This is the Market Capitalization of the S&P 500 divided by the US Gross Domestic Production…. This measure has never been this high before- sending a warning signal for Current Valuations.
In our post here, we review the coming 2021 Retirement levels of contributions and max amounts….
With the most popular highlighted and also matching the catch-up amounts, there are a few changes, but for the most part much of the same from last year 2020 !
Money Begins Moving at a Snails Pace
Oddly, something we had not experienced before…. early in the Month of December, as mentioned here in our Warning Post — money slowed to a trickle pace…
While not sure if this was a result of remote workers, last minute movements, procrastination or a combination of all, money slowed alarmingly…. So much so that we have marked our calendars for an earlier start to year end “Stuff” for 2021 !
Thankfully we are happy to announce, we made it through with not too terrible of delays… but got me once, shame on you …. you know the rest !
Capital Market Comments
Why Price is So Important
In a carefully chosen extreme example, meant to remind but not alarm, in this rewind/remember 1999 post of what can happen if price is not remembered, we show the length a badly timed “all in” purchase – again carefully chosen can take almost two decades to get back to even…
“Price is what you pay, value is what you get!”
Final Thoughts As Year Ends
As the year wound down, we shared a collection of points that we hope made you chuckle but also had some serious items as well…. here in this post. If you missed it … worth your time!
There you have it, so long 2020 – That is your December, final for the year review.
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 !!!
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!
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 !!!
In a luckily timed post here in our August review and again here in September we mentioned that markets had gotten far enough ahead of themselves, we had to waive the white caution flag…
Oddly, within days of our original white waiver, markets slipped … always rather be lucky than good – markets breathed caution in the air quickly with a sharp 10% correction — Safety is still advised!
Capital Market Comments
Inflation & The FOMC
In a somewhat preliminary discussion on what might change market sentiment, not knowing it had already adjusted a bit, here , here , here we discussed inflation measures, the FOMC (Federal Open Market Committee) and their views along with our personal favorite inflation measure, Dallas Federal Reserves own Trimmed Mean inflation gauge.
In a luckily timed post (two showed up in the mailbox the same day of the reminder) here we discussed the extra late arriving Form 5498.
This is a confusing settle up form that requires not action other that to add to your tax file in order to avoid unnecessary taxes!
Fraud Wire Delay Reminder
In this post we remind those setting up new Wire/Linking instructions to financial accounts, especially non liked titled accounts to be careful and have patience.
Fraudsters are attempting to take advantage of the situation!
Capital Market Comments
Gone Too Far
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!
Oddly, this heading is the same from last month, but has a different meaning…
Here in this post we discussed how many folks are really enjoying working remotely….
In fact, the mentioned study showed that 98% of folks wanted at least some remote time moving forward…now that’s an incredible Pivot!
In the future, likely some blending of remote and office…. nothing ever will replace face to face, but a nice blend may cut down on away from family and travel expenses…time will tell.
TSA Throughput Statistics
Over a weekend of surfing stumbling onto the TSA Throughput numbers an idea of sharing via graphic form was posted here in this post.
We even created this neat graph…
Good thing we did a review of this as the creation spreadsheet made its way to the recycle bend…not any more… it’s safely back now…
Looking forward to reviewing this again in the future to see if this continues?
Capital Market Comments
The Look Through Continues – Expect Bumps
Global markets continue to claw their way back, as investors look through the earnings drop and lowered interest rates help create a tailwind.
Recently, global markets took a few steps back when increases in cases occurred…. this makes sense.
Global markets are likely ahead of themselves….. time will tell, as mentioned in our Newsletter, there is a lot of horsepower aimed at fixing the situation in Unity!
Expect bumps, and headline shocks, both positive and negative … but that’s why we are happily conservative investors at heart!
Have a Great Day – Talk to you at the end of July!
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.
March 2021 Financial Planning and Capital Market Review – By John Kvale
Hello and Welcome to our March 2021 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 audio 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!
Hope you enjoy!
March 2021 Video
YouTube
Financial Planning Tips
Two Handy Reminder Posts – Credit Report and Social Security Earnings Credits
We had not one but two really good reminder posts over the last four weeks, on which is featured in the Newsletter in great detail and one that is a handy annual reminder – hat tip DK!
Here in this post we highlight why and how you can check your credit report. This is a really good thing to do at least annually to see if there are any barnacles attached to your credit, thereby lowering it and possibly causing other costs in your life to increase i.e. as mentioned in the insurance.
Here in this second post and again also featured in the Newsletter, why you should check to make sure you are getting credit for those hard earned tax dollars being sent to the Social Security Administration AND very importantly a reminder to look for missing credits in your history!
Stimulus Check Update
In this post, we detailed the planning techniques associated with the third round of $1400 stimulus checks and what to watch out for as well as the new cliff thresholds of phase outs… further detailed with the following chart:
Capital Market Comments
Maximum Macro Economics Coming Soon
Not every trying to be a trend setter or first into the pool – we accidentally beat most of the regular commentators here in this post to the fact that there are likely some VERY HOT ECONOMIC numbers coming our way.
These will occur due to easy comparisons associated with the drop in Economic activity about a year ago as well as continued lift off as we open up for business once again.
There will be interesting dialogue in the Headlines – Be for warned much of this may be skewed by the afore mentioned!
Have a Great Day, Talk to You at the End of April!
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
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Posted in Annual Reviewed, General Financial Planning, Market Comments, Monthly Review, Podcast, Social Security
Tagged credit report, macro economics, Social Security Earnings History