Tag Archives: Buy out

Attention all Pension Lump Sum Buyout Offerees

Over the last three years we have experienced a multitude of pension buyout offers both from in-force pension payments and lump sum offers for pensions not yet started.

Recently we have just experienced another, and knowing these frequently come in waves, wanted to put this note out to anyone who may be in a position to receive a pension buyout offer.

Trust but Absolutely Verify

In every situation that we have experienced over the last three years, the processing of the lump sum pension is quite different.

Also, the paperwork originally sent with the offer tends to vary slightly to dramatically from the actual offer.

We of course do a detailed breakeven analysis in order to find out if the offer is good, but in order to calculate the offer correctly, the appropriate information is needed.

If you are in a situation of receiving a lump sum buyout offer for a pension or even a lump sum buyout offer for an in-force pension, please trust but absolutely verify all of the details. What we are finding that frequently the original offer may have inaccurate information making for an impossible correct decision of acceptance or decline.

This is another subject that we ask you may share with other individuals that we may not know that might greatly appreciate or need this knowledge. So please share at your leisure.

Have a great “Trust but Absolutely Verify that Pension” day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



Something never seen in 28 years – Now happened twice in a month – Pension Offer

After almost three decades in the financial industry, it has up to this point, been safe to say:

Once you begin that pension, you will never have a chance to change it.!”

Not anymore !

In force Pension Plans – offered buy outs

Frequently pension plans that are not paying (beneficiary has not started monthly benefits) are offered buyouts. We have never seen in force (benefits are paying currently) pension plans being offered a buyout, until now, and go figure, we have run into two in the last month.

Items to know –Lump Sum

Don’t automatically just take the cash – it is likely a big sum of money compared to what you may be receiving on a monthly basis, BUT frequently the offer is skewed towards a greater benefit for the company.

Carefully review EVERY detail and how it relates to your situation – longevity, continuity, heirs, beneficiaries, age, financial need are just a few items to consider – call us before you make ANY moves.

Be very skeptical of any company that is not directly associated with your pension plan– The more hands between you and your money, the less you may ultimately receive.

Lot’s of scams and abuse – Along the line of the prior point, there have been many scams as well as abuse in this part of the financial world, laws have begun to prohibit many from taking these type of benefits – be careful and check the facts.

Call us –While there are very distinct times when one should or should not accept an offer such as this, most fall in the gray area. We have the ability to reverse engineer the offer to see how it stacks up as well as dissecting all the fine points of the offer!

Have a Great Day!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225


February 2014 Economic, Financial, Market Review (Video) … AND our Planning Tip of the Month

New followers, welcome to our Monthly Review!

In this post we review the top Economic, Financial and Market happenings from the most recent month and include a short video that details our thinking. A new additions to our Monthly review, straight from the trenches is our Hot Financial Planning Tip of the Month.

So let’s get going :

You Tube Directly


Hot FInancial Planning tip of the month: 401k/Pre-Tax Retirement account funding

There are right and wrong ways to fill that pre-tax retirement plan. This month’s tip comes from repeated trenches discussions and adjustments that go along with the turning of the calendar to a new year.

Spread the contributions as evenly as possible. AKA Dollar Cost averaging. You may be tempted to fill that 401k early for cash flow or other reasons. Resist it, we argue an even contribution reaching your maximums as late in the year as possible (see our Tax Cheat sheet here for 2014 IRS limits) works best in the long run.

You may need to exclude your bonus or other unusual cash flow event to hit your max late in the year. If you have questions, please reach out to us as we run these calculation frequently.

Side note and special extra tip (ok….a little cheesy but bear with us)

New 401ks in almost all cases should be a beast of aggression (click for our Beastly logic article) as your contributions make up the majority of your account, so be aggressive and welcome market maham, it will be better for your balance in the long run.

Non Farm Payroll — Two Strikes

The December report (January release) was expected near 200k and came in at 74k (wiff and a miss). The January report released in February, was 125k with the street looking for 180k. We have two strikes, and so far capital markets are happily ignoring this news. We will breathe much easier with a positive report later this week, due March 7, 2014.

2-7-14 Econoday Non-Farm Payroll

Interest Rate Voodoo

Interest rates are so important, they have begun play opossum. We have tossed up a few fancy trend lines in order to help clarify their final movement. A break up or down MAY lead to accelerated movement. Even if you do  not believe in the chart Voodoo, others do, adding pressure at these eventual break points. (Momentum in a sporting event…can’t see it, but it exists.)

10 Year W Trendlines

The Year of the Buyout

With a SLOW Growing economy, both in earnings and especially Sales (top line.) This may be the year of the buyout. If you cannot build it, buy it. This is fine with us and represents an increase in confidence which is what we need moving forward. We will keep you updated as we progress through the year, but at this time it appears mergers/buy outs are going to be very popular this year.

Have a Great Day!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225