Neat Chart of each USA State’s Largest Private Employer – Care to guess who dominates? Short Video too!

In this interesting chart by our friends at Visual Capitalist, the 1.5 million workers that call Walmart home, show just how large their company’s foot print is as the dominant employer.

If you think about it, this is logical, due to the massive amount of products Walmart moves daily in all sorts of areas of our lives!

What may surprise you (or not) is the massive amount of health care companies that dominate many of the other states – Aging Population = Health Care needs.

Next, the University/Education – happily this is the third most dominant employer, as the future of our country can be dependent on higher education.

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Here is a pretty cool video as well … interesting Amazon comparison included

Have a Great “Largest State Employer” Day!

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

 

 

Why you should Be Careful before taking that Lump Sum offer of your Pension, especially if your are receiving a monthly benefit already – Careful analysis is needed with ANY Pension decision

We have seen pensions that actually give you less money on a monthly basis if you wait longer! Not Kidding…

We have seen pensions dramatically lose money on their present value lump sum benefit over time (very short time in a few cases) monitoring is needed.

We have seen pensions that never break even, if you take them early versus waiting (similar to first point mentioned.)

We have seen offers to buy out monthly pension benefits in the form of a lump sum that are horrible.

We have seen lump sum offers that are too good to pass up (fewer times, but it happens)

We have run into pensions that if the participant passed away before the pension commenced, the spouse received NOTHING, but once the pension commenced the spouse was a full 100% beneficiary.

We have seen random offers from outside companies to buy pensions off – out of no where- usually not a good deal.

Be Careful with Pension DecisionsTrade - handshake-2056023_960_720

Most pension decisions are irrevocable, due to the actuary calculations that are put into place once a decision (contractually binding the company) is made.

While our favorite pension benefit decision (Jt survivor- as mentioned here) in great detail) is fairly straight forward, little else about pension decisions are easily understandable, compound that with the irrevocable nature of the decision, caution and analysis is warranted.

Recently we have run across a few buy out offers from different sources, reminding us of the complexity of pensions and bringing our thoughts to you in this post.

By reverse engineering these offers, a very complex situation can be turned into black and white.

Use caution when deciding on pension decisions as they are mostly irrevocable and frequently offers and changes, may not always be in the participants’ favor.

Have a Great “Clear Pension Benefit” Day!

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

It’s that time of year again, Tax Season – Tax forms update and important information concerning those using a tax professional as well as Tax software – Friday

We are beginning to get 1099 tax forms, however all of them are not complete for everyone.

With a corrected schedule that lasts over the next few weeks to months, please do not file your return until we give you a greenlight and get past the first corrected 1099’s!

Please reach out to Jen at jen@jkfinancialinc.com  if you want to know if your tax form is available as we will be glad to electronically send it to you or upload it to your vault as soon as we have sight of it – please follow the next instructions.

Tax Professional and Tax Software taxes control-1027103_1280

For those using a tax professional we highly recommend that you get your information to them as soon as possible as this tax season will most certainly be much more complicated due to all the new tax laws. It would be much better to have already been in line with your tax professional and have a few missing documents than to  bring all of the information late this year.

We feel certain your tax professionals will appreciate it.

For those using tax software, we are fine with you beginning to put your information into the software, however, we would hold off on filing your tax return as we expect multiple software updates, due once again to the tax law changes!

This tax season will likely have a few curveballs as many documents that we may have used in the past, may not be needed due to the tax law changes, however don’t throw anything away, and  be sure and either give it to your tax provider or enter it into your software – let both of them tell you it’s not necessary.

It’s Friday, enjoy your weekend, and thanks so much for reading our posts!

Have a Great “Beginning of Tax Season” Day!

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

Something we have long suspected, Cerulli Report Confirms: They Don’t Want your 401k Money Once You Leave the Company – WOW!

Over the years we have noticed once an Employee leaves a company, certainly their status goes down, but often times they seem to have trouble getting answers, controlling their old plans, and in particular, working with their old 401k provider.

From our perspective, as you may imagine a latest Cerulli report not only clarifies why these experiences occur, but also confirm our suspicions!

Cerulli Report Confirms “They don’t want your old 401k Money!”

As of this post, we have requested a copy of the report that will certainly make a full appearance again here at street-cents and likely in our Newsletter – (This report is only a week old and privy to professional media members AT THIS TIME)abonded dawn-3358468__480

This Financial Advisor Article  caught our attention as in disbelief we read the abbreviated story on the Cerulli Report:

This from the article:

Overall, plan sponsors don’t seem especially interested in keeping their retired workers’ assets, according to Cerulli. A recent survey by the firm of 800 plan sponsors found that 59 percent preferred that workers take their assets and leave. About 27 percent of respondents said they preferred keeping such assets in their plan

The problem with this is that workers forced (or feeling forced/neglected) to take their funds, without direction – frequently tend to cash out their plans, sacrificing their future!

We look forward to expanding on this story as we receive more details. We will also give you the real life experiences we have come across along with the limitations many providers have.

For now, if you have left your company and are not feeling the love, so to speak… you know why!

Have a Great “Understanding of the Lost love 401k” Day!

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

 

RMD Adjustment Season – Holiday Weekend – Friday

Required Minimum Distributions (RMD) are the mandated distributions of funds from Qualified plans such as IRA’s, 401k’s and the like.

Here, here and here we discuss RMD’s and differing techniques to appease Uncle Sam/IRS in great detail…Uncle Sam

Since RMD’s amounts are based on age and prior year ending account balance the mandatory amount changes year by year.

One option we like is spreading your RMD out over the year, creating your own “Person Pension” plan – of course as long as you take at least what Uncle Sam says, you are good…

Bottom Line – this is RMD adjustment season.

Monday is a holiday in honor of Martin Luther King, and as such markets, banks and our office will be closed.

Ahhhh….. today is a Friday as we brace for the coldest front of the year – and of course an out-door tennis tournament is calling (the girls get warm in about 5 minutes – parents freeze! All good)

Have a Good 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

 

Why we like 30 year mortgages over shorter terms!

The American Dream of owning a home …

It comes with a Liability in most cases …

With lots of term options, we wanted to discuss our favorite, and why!

The 30 Year Mortgage – Our Favoritedebt-1500774__480

When most purchase a home, especially the first home, a Mortgage is the norm. In most cases the 30 year mortgage will be the most costly from a rate only standpoint –

Here is why it is our favorite:

  1. You can easily make a 30 year mortgage a shorter term by paying it faster/extra.
  2. You cannot pay less on a scheduled shorter term loan if life’s curve ball comes around.
  3. While likely the higher rate, the monthly cost will be the lowest due to the extended term.

There are always exceptions to the situation, but for the above reasons, our starting place is usually the 30 year mortgage!

Have a Great “Understanding Mortgages” Day!

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

 

Candid Market Expectations – VERY Short Term – Now We are Prepared!

We shy away from making market prognostications as rarely do markets do what most think will happen.

This time, due to the recent movements we are straying from our safe place in order to give you a heads up on our best and most likely very short term market movement that may be coming.

For the record we hope we are wrong, but feel we wanted to give you a heads up on our thoughts – again this is VERY SHORT TERM (unlike us to talk about it) and we will likely not mention it much as, short term to us is usually three years or more ….

Market Expectations – VERY SHORT TERM

We feel is it very likely we will go back and test our recent lows – there are a ton of crazy reasons why this happens, and in our chart we have marked in green arrows prior tests along with our expectations of our next test.

The reasons will likely be an excuse, a headline of some sort, or an outside event that suddenly seems to make markets more concerned (why does momentum change in a sporting event? not always clear) – no matter, our best guess is that we WILL re-test this recent low!

It’s possible we will go farther down than the prior or maybe not as far – either way, it is VERY likely we will go back for a re-test.

Longer term – will not matter at all, just like turbulence on your flight!

Let’s all watch – just like Eagle Scouts’ motto – Now we are prepared!

1-12-19 spx chart and expectations

Have a Great “Ready for the Re-test” Day!

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