Happy Happy New Years !!!! YAY, Goodbye 2021 Hello 2022! YAY YAY, Our Covid Experience … Maybe helpful for some

We wish everyone a very happy new year as we welcome 2022 in at midnight tonight, hope you are able to spend it with those important in your life enjoy … will talk to you in 2022!

Our Covid Experience, A possible helpful pointer or two

Last week upon returning from a brief snowboarding trip with the 14-year-old, approximately 24 hours after arriving back said 14-year-old ran over 100° temperature for about 12 to 14 hours.

With a wonderful visit planned with my 93-year-old father and other family members, in an abundance of caution, Pierce and I each were tested for Covid.

On Christmas Day Pierce tested positive I tested negative.

Pierce post fever only had minor sniffles and I had no symptoms that could be absolutely pinpoint for sure … the temperature differential from the slopes to back home was almost 90° and would expect a runny nose and the like!

Feeling confident we were out of the woods but once again with a visit on the horizon, Pierce and I both tested positive in less than three minutes on a 15 minute rapid test on Tuesday of this week… visit cancelled….

No one else in the family tested positive and we feel fine except for maybe being a bit stir crazy.

Wanted to share this with you to let you know that the spread of this may be at least in part because there are no symptoms or very small ones. A good thing and bad … so to speak!

Needless to say we will as they say be … “home for the holidays” … Movies anyone?

Cheers, be safe out there everyone!

Enjoy the turn of the Calendar! Talk to you on the other side!

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

Q1 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 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

Let’s get going! We hope you enjoy!

Q 1 2022 Newsletter

(YouTube)

Anatomy of a Slowdown/Recession

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!

IRAs2022202120202019
401(k), 403(b), Profit-Sharing Plans, etc.2022202120202019
Annual Compensation305,000290,000285,000280,000
Elective Deferrals20,50019,50019,50019,000
Catch-up Contributions6,5006,5006,5006,000
Defined Contribution Limits61,00058,00057,00056,000
IRA Contribution Limit$6,000$6,000$6,000$6,000
IRA Catch-Up Contributions1,0001,0001,0001,000
Traditional IRA AGI Deduction Phase-out Starting at2022202120202019
Joint Return109,000105,000104,000103,000
Single or Head of Household68,00066,00065,00064,000
SEP2022202120202019
SEP Minimum Compensation650650600600
SEP Maximum Contribution61,00058,00057,00056,000
SEP Maximum Compensation305,000290,000285,000280,00

We hope you enjoy … talk to you in 2022!

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

Department of Transportation (DOT) Travel Volume Updates … Urban still Lag … Rural Rocking and Rolling

Over the weekend, the latest Department of Transportation (DOT) road travel update hit the in-box….ya ya, a bit nerd like to look forward to an update from the DOT, digressing…

While we have analyzed this before, here back in May of this year and we really like the fact that the graphs are the exact same but just updated, so it is an easy comparison…..

A new observation – Look at the graph just after the Great Financial Crisis of 07-09 – Peaking in 2009 and taking 5, yep Five full years before regaining a new high… WOW!

This speaks to the brevity of this most recent recession…. Coming up shortly a review of the Q1 2022 Newsletter will speak directly to the more normal lengths of slowdowns…. i.e. 2020 was a real short one, and 07-09 was a longer, bigger one!

DOT Total All Roads

Urban (City) Highways

The lack of recapture is completely due to Urban highway traffic (A few times lately in my personal city driving, find this hard to believe, but small sample size).

Continued work from home/remote, speaks to this shortfall!

Rural Highway

Notice the fall was shorter, recoup much faster and currently as of this year, a complete recovery….

This makes sense as rural transportation is extremely important, and as such, much less discretionary!

Have a Great “DOT Transportation Update” 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

Merry Christmas, Happy Holidays, Seasons Greetings

Best Wishes…..

John Kvale and the entire Gang at J.K. Financial, Inc.

Cheers!

No Tax Law Changes for 2021, Same as 2020 … Last Minute Shoppers Watch Out, New Cyber Email

Of coarse …. the keyboard is calling even while out of the office with the 14 year old….

Felt this very important, and the WiFi is pretty good at this location!

Will keep it short, just two important items to tell you!

Washington Goes Home – No Tax Law Changes for 2021 – All Bets Off for 2022

Late last week it was agreed that the House and Senate would adjourn for the year, pushing any tax law changes that you may have heard (there were A LOT… remember often noise) as a 2022 issue!

With some new research ears on the ground in Washington, we hear there may be relief for the SALT tax cap … but never a guarantee on rumors…

On a personal self serving note, WHEW …. the Newsletter can finally not be smacked at the last minute and need to be completely redone … let our New York based printing presses begin … it is done! Yay

Last Minute Cyber Shoppers LOOK OUT – Clever Spam Email

In the span of two days the family received very clever spam emails from the following, each with an enticing link to click…. DO NOT BITE:

  • Home Depot Confirmation – But we did not make an on-line purchase and thankfully did not click on the hot link to the fake “Receipt”
  • Ace Hardware – This one was easier as we have not made any purchases at this establishment, BUT the format of the email was the same as the above HD
  • Best Buy – We have made Holiday purchases at BB (14 year old) but thankfully the email contained only “Best” and no Buy in the header, but the spam email address looked to come from BB

Have a Great “No Tax Changes and Don’t Click Bite” 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

Office Hours … Mostly Out … Staggered but Tethered … Happy Holidays!

Today all of our gangs get out for the Holidays at noon…. Whew, we made it!

Anyone else feel like the dash from Thanksgiving to the Holidays were REALLY short this year? Digressing…

Office Hours … Mostly Out … Staggered but Tethered

Each of us are 100% mobile and can even receive calls to the office while away….

We all have trips planned … possibly pent up wishes!!!

With the Financial Bottlenecks completely stalled, we are very glad to have most all of our “Known” year end “To Do’s” completed- YAY!

Of course, emergencies happen, my actual travels are on the weekends, although early next week will likely be weak Wifi … and it may take us a bit longer to get back to everyone, thanks for the understanding in advance!!

Happy Holidays … No way to stay off the keyboard that long, so expect some cheerful short posts over the Holidays!

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

Back to the Basics: Fun New Complete Financial Planning Series/Course, Part 1 : The Emergency Fund

This is the first of a “Back to Basics” Financial Planning Series that is meant to start from the very ground floor of basic Financial Planning and build on to more advanced techniques and strategies.

The goal of this series is a course like experience in Financial Planning that will touch every step in the process in order of importance. When complete, we will be adding Video’s and making into a full planning course/workshop.

Those of you that are long time clients have likely heard much of this before but may get an occasional reminder. 

If you know someone (kids, friends, relatives or the like) that may find this series useful, we ask you share, much like we did with the stimulus explanations during the pandemic, we are using our venue to give back and help as many as possible, while hopefully having fun and keeping a sometimes, boring subject matter, educational, and entertaining!

Without further ado … we begin the series with the most important primary foundation step of the Financial Planning process:

Meet the Emergency Fund

An Emergency fund is just what it sounds like, a non-investment, non-risk, extremely liquid savings account, without worry that is available at a moment’s notice. In our current environment of low interest rates, this fund is likely earning a low interest rate. That is fine, safety and liquidity are most important for this fund. Do not stretch to earn extra return on these funds, as this could lead to it not being there completely when you need it most… Return and risk are directly related and we are in a very low rate environment currently.

3-6 Months Expenses

The general rule for an emergency fund is 3 to 6 months expenses but there are many situations that may make this vary greatly on a case-by-case basis.

Here are some examples that may cause families to desire more than 6 months Emergency Fund

  • Income fluctuations – such as 100% commissions, or volatile income years – you know who you are, keep extra to avoid the stress in the down years
  • Occupational risk – if you are concerned about losing your job, get that emergency fund very healthy
  • Large purchase on the horizon- New asset, or known large expense, larger amount may be necessary
  • Sleep Well – If you need a larger than 6 months cushion to sleep better, NO PROBLEM, good is what will allow you to sleep well.

Low End Emergency Funders

On the other side of this are folks with very stable lives, possibly with multi family incomes. You may feel comfortable on the lower end of the 3 to 6 months. Other examples are those with very low overhead and stable expenses as far as the horizon can see you may error on the lower end. Lastly those with less or no dependents would also be a candidate for the smaller end of the emergency fund.

If your situation changes for some reason, prepare to increase, too low of an Emergency Fund leads to short term credit situations, stress and just a much less fun day in day out way of life!

There you have it, the General Rules of the Emergency fund, the fund itself, and examples of reasons to keep it higher or lower!

See … that was not that bad, Next Up in Part 2, Protection Planning!

Have a Great “First in Series Emergency Fund” 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

National Apartment Rent Cost Increase 2017 to Present from Apartmentlist.com … A 30% Increase YTD – Wow!

We had been very excited to show you this, but needed Copyright approval first.

A very timely update to our end of the week CPI analysis.

Last week we finally got Copyright approval….

So here we go!

National Rental Costs from Apartmentlist.com

We have been hearing of rent increases, but did not have a great way to track it. After running across the fantastic Apartment site at www.apartmentlist.com, which has over 5 million apartments and counting for rent, and they are collecting data.

The following is the National Average from 2017 to present. More specific geographic areas are available, but we wanted to use the broadest measure.

Rising rent costs are an understatement, the move from the beginning of the year is approaching 30%…. yep a 30% increase in rent, NATIONWIDE

With Shelter being such a large portion of not only the CPI, but many families expenses, this is worth watching closely!

Have a Great “Rent Increases Analysis” 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

CPI (Consumer Price Index) Prints 6.8% Year over Year Increase, Quick Analysis on Likely Peak … Friday

About three hours ago, the BLS (Bureau of Labor Statistics) released their November 2021 report on CPI (Consumer Price Index) one of the broadest measures of Inflation…

If you have noticed your grocery basket smaller and more expensive, this is why….

This report has a ton of factors in it, as can be seen at the top of the chart from the BLS report, below….

The year over year print was 6.8% increase!

A very large portion of the CPI is Energy…

Have you noticed a LOWER bill to fill your tank lately?

The BLS report is lagging, below is a current Oil price, which is over 10% LOWER currently… hence the cheaper refills…

Very likely peak in CPI as measured by the BLS, next month which will be released in early January, we will take a peak and keep you updated…

Ok, another slightly heavy Friday, BUT the FOMC is watching this very closely and making decisions based on this increase, which may be peaking/lagging already…. Let’s stay tuned!

Have a Great “Friday CPI Analysis” 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

NFT’s (Non-Fungible Tokens) … Explained … Ecosystems

We are certainly not recommending these as an investment, but we are watching the development of NFT’s and as such, thought it worth giving you a little background on them… of course a great chart from our friends at Visual Capitalist set us on our way….

NFT Definition

This from Investopedia

WHAT YOU NEED TO KNOW

  • NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
  • NFTs can be used to represent real-world items like artwork and real-estate.
  • “Tokeninzing” these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.
  • NFTs can also be used to represent peoples identities, property rights, and more.

NFT’s and Their Ecosystems

This great Chart from our friends at Visual Capitalist:

What are NFTs? The NFT Ecosystem, Explained

Have a Great “NFT’s Explained” 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