Tag Archives: Clump

December 2018 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our December 2018 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format as well as Video!

Newbies – We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

December – 2018 Video

Financial Planning Tip (s) –

Staying Invisible on the Internet

With concerns of our personal information being constantly delivered/sold to others, we found this really neat chart, here in our post as a great guide on staying invisible on the internet.

The chart is HUGE, noting the many ways we are being tracked this day and age… lots of neat, stop tracking me techniques included…

Capital Market Comments –

Good News – Such Fast Movements May Not  Last as Long

One time when being fast may be to our benefit …

Markets that throw a quick hissy fit frequently get their feet under themselves …

1-6-19 spx -

Using the Great Recession of 07-09 as a guide (below)  – BTW we DO NOT think this is what we are experiencing… it took years for the drop to occur, not days…

1-6-19 spx 07-10

We may be experiencing a slow motion 87, 91 or 99 like drop, which were faster, briefer, caused by outside worry and forces, but certainly concerning at the time!

Let’ all buckle up and be thankful we NEVER drive fast – time will tell!

 

Have a Great Day – Talk to you at the end of January!

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
street-cents

November 2018 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our November 2018 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format as well as Video!

Newbies – We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

November – 2018 Video

Financial Planning Tip (s) –

Clump – Maximizing the new standard deduction

With a $12k individual standard deduction and double that for joint filers it takes work to maximize the standard deduction threshold… Add the fact that SALT State and Local Tax deductions are now limited to $10k annually, clumping expenses into one year as mentioned here in our post and visually below may be the only way to get above the standard deductions for many …

Clumping Taxes

Capital Market Comments –

Powell Signals a Slower Rate Increase

Current FOMC (Federal Open Market Committee) chairman Jerome Powell signaled the rate increases may be closer to over than just was stated just a month earlier… where a December increase, which is still almost certain, but three additional increases were promised in 2019 – not any more.

Given the long/lower rates of the last decade, it is not a surprise that the new normal may be lower –

Market Participants cheered this statement!

10-31-18 Fed Funds Rate

Have a Great Day – Talk to you at the end of December!

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
street-cents

Clumping Property Tax and Deductions Reminder – Standard Deduction Maximization Strategy

Over the Thanksgiving Holiday’s several family members were surprised to find out that there are still tax law changes – well clarifications, that are going on at this time…

It is possible that there will be changes/clarifications occurring right up and through this first “New” Tax season…

Now is reminder time for taxes — but given the above — we have more of a butter knife than a tax scalpel for our surgical tax techniques — No matter …. Let’s go!

Clumping Property Tax

A joint family will receive a $24k – yes … Twenty Four Thousand Dollar STANDARD deduction – add on to this that the new limited – state and local sales tax (SALT) deduction (read property tax) of $10k annually,  planning is needed to maximize deductions.

The easiest and most common way to POSSIBLY maximize deductions is to clump your property taxes as well as other elective expenses. As you can easily tell, clumping your SALT deductions will get you to $20k so we are still not there…

Mortgages interest up to $1million in loan value prior to 2018 and $750k after is still deductible.

Bad Deduction Planning

All of this fancy acceleration and delayed of tax deductible expenses is to avoid the following –

Every year coming up with just under the standard deduction! I.e. $23k of deductions annually is likely not as tax efficient as possible…

A better solution would look like this:

Clumping Taxes

Skip years = Standard/no itemization/simple tax return

According to this AARP report earlier in 2018 the approximate 30% of tax payers who formerly itemized will drop to about 10% –

Bottom Line do not feel bad if you do not itemize, BUT you may still be able to itemize every other year, under an appropriate standard deduction tax max strategy.

Reach out with questions before year’s end – We can help you calculate what the best strategy may be!

Have a Great “Standard Deduction Maximization” 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

Three Key Tax Items from the New Tax Laws – So Far

Recently, in a study group of six long time Professional Financial Planners – including yours truly – someone in the group asked if they had their arms around the new tax code?

None of us were 100%- too many changes and too many possible changes-

That being said, here are three key observations

Three Key Tax Changesirs

  1. The new $12k standard ($24k for couples) will render many itemizers useless and will mandating clumping
  2. Tax Rates are going down- across the board – see our chart here
  3. Largely a loss of deductions – Especially small business owners

The last bullet point may give you pause, but it should not, the net effect (most likely) will be positive for most tax payers —

Have a Great “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.
www.jkfinancialinc.com
www.street-cents.com

Clumping – A must given new tax laws … Friday

We are finally digging our teeth into the new tax laws … they are not 100% set in stone yet as there are many unanswered items… and likely IRS statements that will clarify and change items as the year progresses…

There is one item we are pretty confident-

Clumping of Expenses

We are going to speak at length on this over the year, so not to worry about being reminded…

The new standard deduction amount is $12k – Making for a hefty hurdle to itemize for married couples ($24k), especially with a NEW $10k SALT (State and Local Taxes) deduction limit…

Clumping TaxesAre your eyes glazed over yet? It’s ok, we will be digging deeper into this throughout the year ….

Drawing from IRA’s is also in play under the appropriate circumstances … look for more on this shortly as well…

Today is a Friday … and while a little heavier than our normal post for the weekend … it sets us up for what is to come on our tax talks… get out and have some fun … talk to you next week!

Oh… and for those wondering, the 13 year old had 9 matches total and won 6 – in some VERY HOT conditions… All good!

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

One of the few tax choices left … Clump or Pay those Property Taxes?

This is the time of year that most municipalities ask for their property tax payment… In many cases you have the option to pay in the current year (December 2016) or next year (January 2017).

To Clump or Not to Clumpirs

Big or Small Income Year

Before just paying those property taxes as you usually do, think for a moment if you have had an extremely good (high income) or low income year. If either of these fit your situation it may make sense to defer your property taxes and clump them into one year.

Standard Deduction

If your standard deduction is greater than your tax write offs, check to see if pushing two property tax payments into one year will get you over the standard deduction.

Heavy or Light Charitable Year

Just as a high or low income year, some years we may find that we have given more to charity than others. Step back a moment and see how your property tax payment will affect your total tax write offs. It may make sense to clump.

This is by no means a recommendation to clump or not as there are a lot of moving parts with this strategy. We are only asking you to think about your situation and if any may apply. See your tax professional before making a move!

Contact us if you have any questions!

Have a Great Friday and weekend… sorry for the heavy post on a Friday but the year is almost gone and we wanted to get our tax strategies to you!

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

 

October 2015 Year End Tax and Financial Planning Tips, Capital Market Review (Video by John Kvale)

Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.

This months Special Tax Financial Planning Tip of the month is not one, but two tips that may save you tax dollars before year end !

For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video of my mug that has even more specialized details of the latest month as well as this post.

Ok…let’s go!

VIDEO

YouTube Direct Link 

 

Clump or Push those property taxes

  • If you are just under the standard deduction for itemizing, consider clumping your property taxes
  • If you had a very big year of income and may have phase outs of deductions, consider pushing those property taxes into another yearProperty Tax

In our clumping or pushing post, here we discussed in great detail a neat technique to maximize your property tax itemization write offs. Now is a good time to pull out last year’s tax return and review your options — we will be glad to help if you have any questions!

Roth Conversion to Offset Active Losses

  1. Flatten your loss – not lose it
  2. Possibly freely convert your taxable IRA into a Roth
  3. Future appreciation in your Roth will be without taxes – tax-free withdrawals tooRoth Conversion

In our Roth Conversion post we discussed in great detail a possible flattening of your income and losses should you find yourself in this situation – this is a complicated, but rewarding technique – if applicable!

Give us a call if you have any confusion/questions! Do not try any of these techniques without first visiting with you professional advisor!

The Bounce back

Never go all in or all out !

This graph from our Monthly video last month:

9-30-15 Vanguard Total World Equity

Seemed silly to just watch our hard earned funds slip — and slip !

Fast forward to the end of October — The Great Bounce !

10-30-15 Total World Index

Just another reason to NOT watch this on a monthly or even quarterly time frame — decades is more appropriate!

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225JK Street Cents Logo