Welcome to our Video and Audio Podcast Review of our Q 2 2019 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!
Q 2 2019 Newsletter
And here is your review!
Capital Market Talk
Recession and the Inverted Yield Curve
Ask any long distant runner what happens when they start out too fast and they will tell you it is not good new – The saying goes for every minute you go out too fast, you come back two minutes slower than normal…
In our main capital market article we discuss the reasons why we may have a recession by definition, but why it may not be a big deal (hopefully).
The Inverted Yield Curve (Short term interest rates higher than long term rates) and infrequent event, did occur for five days – so far – just after our Newsletter went to the publisher. The Inversion has been a good signal of recession, EVENTUALLY – some times as long as two years in advance.
They Don’t Want Your old 401k
A recent Cerulli study finds that once you leave the company, most really do not want your funds anymore. We have long suspected this.
Frequently a short wait time turns into a long wait time with a different and much more general help line.
Forms may be much more difficult to acquire.
Paper work received, saying take it or we will distribute it and you will have taxes and penalties.
Rolling over into an account that is TERRIBLY hard to get out and has hurdles to jump through, high monthly service charges as well as limited investments, if any.
A general feel of everything is hard to do, once again explaining the Cerulli study results.
Are a few items we have run into over the years!
Iron Clad Trustee
General order of Trustee or other important people to execute your wishes when you are incapacitated or deceased, generally go like this:
Spouse
Sibling
CLOSE friend
Similar Aged Relative
Grown Children
As we can all imagine, this list can easily be very short and insufficient.
In our deep dive of the Institutional Trustee Services, we discuss the handiness of having such a great service as well as the ability to offer these services ourselves.
Choose Your Beneficiaries Carefully
In this article that fit nicely with our Trustee article we mention different types of Beneficiaries and most importantly. Make sure you confirm that your beneficiaries are correct as this will over ride you other documents, including a Will or Trust.
In a follow on post to our original Why Choose Your Bene’s Carefully post AND for our own reference – we frequently end up having to go search up this terminology just to make 100% sure we are correct when completing beneficiary information … Here are two hand crafted pictures that should get the job done when choosing Beneficiaries..
Oh… and a precursor to our in depth Newsletter Article coming soon…
Per Stirpes and Pro Rata
In a picture is worth 1000 words spirit…
Per Stirpes
And here is Pro Rata
It will be interesting to see just how many times we view this in the future for a refresher!
In a continuation of our Why series – if you want to see the entire series just scroll down to the right side of our blog site and change the category to “Why” – there are some neat ideas in our opinion….
And a topic that came up this week with much discussions, once again giving us a subject matter to share…
In a preview article to a more detailed Newsletter article that goes well with our Institutional Trustee article….
Why you should carefully choose your Beneficiaries
The most important point to remember is that whatever your account title (IRA, Trust, TOD – transfer on death) documentation has deemed a beneficiary, that is where the funds will go, without regard to what your Will or even what Trust documentation may say…
Making sure all of your title documents send fund to where/whom you currently desire….
Want some examples we have seen over the last three decades:
Currently married – maybe for a while – but a Parent is still your beneficiary (Easy fix, frequent occurrence)
Minor child is the beneficiary – this will not work- courts will end up deciding
Ex Spouse – yikes -there are some relief with divorce decrees, but sloppy
Sibling that for whatever reason you no longer desire to be a beneficiary
Two of your three grown children – by accident, forgetting the third
Don’t let an accidental oversight in your Beneficiary designation slip through the cracks – Review occasionally, and you will be in good shape!
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.
And here is Pro Rata
It will be interesting to see just how many times we view this in the future for a refresher!
$treet-¢ents 
Q 2 2019 Newsletter Video Audio Podcast Review By John Kvale
Welcome to our Video and Audio Podcast Review of our Q 2 2019 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!
Q 2 2019 Newsletter
And here is your review!
Capital Market Talk
Recession and the Inverted Yield Curve
Ask any long distant runner what happens when they start out too fast and they will tell you it is not good new – The saying goes for every minute you go out too fast, you come back two minutes slower than normal…
In our main capital market article we discuss the reasons why we may have a recession by definition, but why it may not be a big deal (hopefully).
The Inverted Yield Curve (Short term interest rates higher than long term rates) and infrequent event, did occur for five days – so far – just after our Newsletter went to the publisher. The Inversion has been a good signal of recession, EVENTUALLY – some times as long as two years in advance.
They Don’t Want Your old 401k
A recent Cerulli study finds that once you leave the company, most really do not want your funds anymore. We have long suspected this.
Are a few items we have run into over the years!
Iron Clad Trustee
General order of Trustee or other important people to execute your wishes when you are incapacitated or deceased, generally go like this:
As we can all imagine, this list can easily be very short and insufficient.
In our deep dive of the Institutional Trustee Services, we discuss the handiness of having such a great service as well as the ability to offer these services ourselves.
Choose Your Beneficiaries Carefully
In this article that fit nicely with our Trustee article we mention different types of Beneficiaries and most importantly. Make sure you confirm that your beneficiaries are correct as this will over ride you other documents, including a Will or Trust.
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, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Vault, Video
Tagged 401k, Beneficiary, Cerulli, Inverted Yield Curve