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
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
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:
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.
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.
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 Audio, Care Act, General Financial Planning, Investing/Financial Planning, Market Comments, Newsletters, Podcast, Political, Video
Tagged Care Act, No RMD, Pandemic Insurance, PPP, RMD, Unemployment Insurance