French Vote Comments… Happy Cinco de Mayo and Friday…. Tennis Travels… Break In- Employment Report

Break In- This am a very positive employment report was released…while we never hang our hat on just one report, we do like the direction of this report and will have more details next week!

Thanks to everyone for the nice comments on the French Vote post earlier in the week. The polls, which we know have not been super accurate of the last few years, are giving Macron a huge lead over Le Pen…all other things equal, which they never are, this outcome would likely be calming to the capital markets.

Happy Cinco de Mayosombrero-2101560__340

As May gets going, we have had unusually cool weather here in the South and even a spring…. Last several years it was a very wet spring and then summer arrived leaving little feeling for spring. Enjoy your Cinco de Mayo today ! Cheers !!

Hopefully it is nice where you are as well… Today is a Friday, so enjoy the day and your weekend….and remember to spend time with those special in your life.

Speaking of special, an out of town flight for our first National qualified tennis tournament occurs later today and through the weekend…. No matter the outcome, darn good dad daughter time!

Have a GREAT day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

All you need to know about the French Election Run Off, a Two Round Election Process

Every once in a while we run into a simple comprehensive description of something complicated or confusing. Visual Capitalist continues to amaze us with this fantastic summary of the French Run Off election.

In France if there is not a majority winner in the initial election, there is a second, “Run Off” election that decides the nomination. The following summary is a great thorough comparison of the two final candidates.

Recalling our chance visit with David Cameron, here, his view was that a Le Pen win might further the fragmentation of the European Union. From the summary below, one can see why this is the case.

Time will tell!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


April 2017 Podcast Video, Financial Planning Tax Review and Earnings Update- By John Kvale

Whew, that was easy…. tax season is finally mostly over ….

We wanted to look back one last time on our personal taxes before we sunset those tax strategies for the high point of the season….

As a reminder,  we started with an Audio Podcast format for those that are unable to SEE the video or just prefer to listen to the audio… this makes the review slightly longer, but more descriptive.


April 2017 Video


Financial Planning Tip(s)-

AMT Tax Reminder

We ran across a lot of AMT or Alternative Minimum Taxes this season

Here are the key thoughts from our detailed post on AMT earlier this month-

  • Incomes between $170k and $313k joint and singles over $100k – you are in the cross hairs of AMT
  • Deferring income may be useful
  • Accelerate income

There is not a lot of planning changes with AMT, but in this case knowledge may be power!

Possible MAJOR tax reform

Late in the month an overview of major tax reform was released.

Here is a link from the White House

Here is a link from Barron’s that does a pretty good analysis

Here is our article on the possibilities earlier this month

What to do if you overfund your 401k/retirement plan

In our overfunding 401k post here, we discuss how your 401k/retirement plan can get overfunded….. here are the main points

  • Refund the extra amount ASAP
  • Apply the extra to the new year
  • If its a super small amount, its not the end of the world

Capital Market Comments

First Double Digit Earnings growth since 2011 expected

From our friends at Factset, who do a terrific job of outlining historic and future earnings.

Earnings are the ultimate driver of capital markets!

4-27-17 SP earnings estimates - Factset

What is nice about these estimates are that historically companies have been beating the street estimates … if this continues, the actual earnings may be even better double digit growth…. time will tell and we will be watching!

Hello May!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.,

Coming next week for your “New Total Vault” cutting edge extra safety……. Two Factor Authentication aka 2FA

Today’s Bonnie and Clyde sit in a room somewhere trying various ways to break into our digital lives via a computer. It is much better than looking down the end of a barrel, but intrusion is intrusion….

As the bad guys adjust, so do we!

Say Hello to my Little Two Factor Authentication Gun

Two Factor Authenitcation aka 2FA for those techie fans, present party included, is a second step for logging into secure areas, such as our New Total Vault.

Starting next week, we will all be asked to set up 2FA in order to enter the Vault. A cell or home phone number entered will give us a text for a code to enter our ever more secure vault.

We pardon the inconvenience for those disturbed, but safe over sorry is our mantra !

Have a great 2FA safe Friday!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

High points of the Tax Reform Announcement due out today… Our favorite and least favorite

So we finally get through Tax Season, sunset the tax discussions until next year, and along comes an announcement that tax reform plans are due out today.

Keep in mind, no one knows for sure what the final outcome will be even after today’s announcements as approval and compromises will ensue.

Here are the high points from our perch.

Standard Deduction AdjustmentUncle Sam

An announcement for a large increase in the standard deduction is expected. If passed the net result could be tax savings for many especially those that do not itemize. In our view, this change, if approved would likely have the largest total number of filing changes. Needless to say the tax planning possibilities are huge….

Corporate Tax Changes

There is much anticipation of lowered corporate rates. US corporate tax rates according to many , are too high, a proposal for relief from higher corporate tax rates is expected.

There is also a possibility of smaller, flow through entity corporation, think S corporation income i.e. K-1 tax rate relief.

Tax Repatriation

Our favorite, and hopeful agreed upon, tax change would allow stranded income, already taxed in a foreign country, to move more freely back to the US with less tax burden.  International corporations would have greater access to foreign country stranded capital if this were to be approved.

We have heard less of this lately and hope it does not hit the cutting room floor!

Estate Tax Reform

There has been much talk of an Estate Tax reform as well. The gist is a disallowance of a step up in basis but a removal of the $5.49 million Estate tax rate.

If passed as mentioned, and the current tax laws held “as is” on capital gains, this could be a huge nightmare. We think there may be major compromises on this before actually passed. We will keep you posted on this as it develops. This is our least favorite possible reform at this point.

Have a Great “Tax Reform Announcement” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

What to do if you overfund your 401k/Retirement Plan and how to prevent it from happening!

Maximizing your 401k or other similar retirement plan is one of our favorite tax saving ideas. We recommend all do this mostly throughout the year evenly.

In most situations the plan administrator watches the funding levels and stops our contributions when they hit the maximum Federal allowed tax deferred level. There are a few situations that can allow for an overfunding of your plan.4911abd2-4b9c-408a-a953-d805a2ea9c1a-9907-0000085a4bc97ada_tmp

Change of Jobs

It makes sense, we change jobs and the new sponsor has no idea wha the old sponsored plan allowed us to defer. In this case, be sure to keep your last paycheck from your old employer, which we HIGHLY recommend anyway, and track your contributions.

Merging or splitting of your Company

If your company splits or merges with another company, it is highly likely the new plan will not have visual of your old contributions. Once again, keep your last paycheck from the old company and track your new company contributions.

Changing of Administrators

This is a less likely overfunding option, but occasionally, it does happen. Once again, keeping your last paycheck from the old sponsor and tracking your total contributions is a good idea.

Overfunded, Now What?

Accidents do happen  and this is not the end of the world. We would recommend you work with your current employer/administrator to apply the possible following fixes.

  1. Refund the extra funds- Watch your w-2 carefully as this can cause inconsistencies- Keep a year end copy of your last paycheck is a must on this!
  2. Apply the extra funds to the following year- Not always available – Can be the easiest if administrator has sophisticated systems.

Double Tax

If for some reason you are not able to reverse the over contribution, you will be double taxed. Your overcontribution will be taxed as income and then you will be taxed when the funds are distributed, leading to a double tax. Not the end of the world for a small amount, but larger amounts wil be cumbersome.

In closing, keeping a final paycheck in any type of change is recommended, especially in the examples we mention, along with a comparison of your W-2 will help prevent many of these and other problems.

Have a “Less Taxing” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

Blockchain Explained, a Short Primer …. Enjoy your Friday …

How about an interesting Friday word worth notice after the conclusion of regular tax season?

Not to worry, we will keep it brief now, but keep an eye out for more details.

It’s likely you will run into this sooner rather than later. So here we go!


Basically in it’s simplest form, Blockchain is a neat way to track all transactions as they occur and keep them moving forward on the instrument traded or event.

  • Stock Market transactions
  • Cash movement and exchanges
  • Investments
  • Loans
  • Horses … ok, maybe a stretch.. but maybe not though?

These are just a few uses.

The graphic to the right is a symbol of the initial transaction (green) and then the tracking of transactions.

It’s a Friday, and we promised a short post. Enjoy your weekend, but expect more on Blockchain from us in the future… so now you know !

Have a great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.