Tag Archives: Debt

Why Student Loan Debt Has Grown So Fast – Change In US Household Types of Debt – Interesting Chart From HowMuch.net – Paired with Another Interesting Chart that Explains from Visual Capitalist

We ran across this neat chart below from “HowMuch.net, a financial literacy website”… which stunned us.

The comparison growth of student loan growth versus other types of debt is amazing.

For the record we are huge fans of higher education, but not the debt that may come with it.

So we set off to see if there were a cause and effect for the above chart…

Thanks to our friends at Visual Capitalist the following chart answers a lot.

The small blue shaded area is inflation, compared to how fast Tuitions have increased… No wonder the gigantic growth in Student Debt…

Have a Great “Cause and Effect” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



Two Neat Charts, History of Interest Rates, and Debt, for a Lighter than Normal Pre-Thanksgiving Week

In a quest for postable animated charts (coming soon – these are REALLY fun) the following two charts grabbed attention on a Pre-Thanksgiving lighter week…. from our friends at Visual Capitalist.

Next week we will bring an animation chart to your inbox – again, they are really neat!

Interest Rates Since 1350

We crow frequently about Interest Rates, as they are very important.

Stepping back to see the forest for the trees…. this chart caught our eyes…


Location of Debt

From above, we see the long history of interest rates… below is the location

Pay particular attention to the color and the legend at the bottom of the chart as it is more important than the size of debt as focused on by the chart!


We just could not pass these up!

Have a Great “History of Rates and Location” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

What the Heck is a Muni Bond?

Our final Puerto Rico discussion is later this week and focuses on their Public Debt/Municipal Bond situation. As a primer, we wanted to dig a little deeper into our good friend the Muni Bond.

What is a bond?

A bond is generally a debt instrument issued for an amount of money with a promise to return the amount in the future for a stated interest rate. As an example an issuer may sell his instrument for 15 years and pay an annual rate of 6% with the promise to give back the principal at the end of the term.

What is a Muni Bond?

A Muni or Municipal Bond is a special bond (debt instrument) that is issued by a public agency (think city, public stadium, transportation road, water utility, just to name a few) and in most cases pays income tax-free to investors.Muni Bond

Tax Free Income, but with a Catch

As mentioned above, the income from Muni’s are generally tax-free, however there is a catch. The income from a Muni is generally lower than that from a non-muni similar bond. Without getting into the weeds, if a 5 year regular bond yields/pays 5%, a similar muni bond might only yield 3%, but the investor need not pay taxes on the muni bond income/interest received. Each investor’s tax rate determines the best bond for their situation.

Bonds Can be Complicated

Unlike stocks/equities, bonds can be complicated. Generally, the stock of company ABC has only one class. The city of ABC may have dozens of different bonds with more or less covenants (restrictions, bylaws, and safety features.)

While investors can easily purchase one share of stock, muni bonds are best traded in $100k lots, also known as “Round Lots.” Trading smaller lots/amounts of bonds may lead to less efficient executions. An investor can also purchase muni’s via ETF’s or mutual funds as well, especially helpful for smaller dollar purchases.

Our favorite Muni bond is call a GO, or General Obligation bond. This means the bond is not focused on one single project or revenue source. Generally speaking for a GO to default the entire agency must default, which usually does not happen as a surprise. Detroit was on notice for years, as is Puerto Rico today.

While not exhaustive, this Muni Primer should have us all ready for our final Puerto Rico post later this week.

Have a Great Monday!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225