Hello and Welcome to our January 2019 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!
January – 2019 Video
Financial Planning Tip (s) –
Get and Earlier than normal start on those Taxes
Here in this post, we remind everyone that due to the new tax laws, it will be a good idea to get your tax information to your professional as soon as possible.
If your using tax software, be sure to do the recommended updates as we feel certain there will be necessary updates to the tables along the way.
Corrected 1099’s are the usual, with only a few last year, we will give everyone the green light once we get our first round of corrected tax forms – but again go ahead and get started with your taxes!
Stunning Findings about your old employer 401k
We had long suspected as much, but in this post we review a Cerulli study that interviewed over 800 401k providers, only to find out that less than 30% really want your funds once you leave.
We have experienced less than stellar service over the years with former employees 401k plans – leading to our long suspicion of these findings.
Make Pension Changes/Decisions Carefully
While our favorite commencement benefit for pensions (100% jt survivor) is fairly straight forward, the simplicity ends there.
In this post, we review recent trends in buy outs and what to watch for, as well as the many scenarios we have experienced that are not always in our best interest.
Capital Market Comments –
Good News – Recovery without a Re-test – So far
What a different a month makes – WOW! We literally have gone from the sky is falling to sunshine!
In our summary post in December, we mentioned that fast moving slumps, such as the one we had, frequently do not last long….
Here, earlier in the month we also mentioned that we fully expected some type of retest of those lows before we gained our footing.
We still do expect some type of re-test, but as of this date we have had the following positives that have added to the markets better mood:
- Federal Reserve (FOMC) have turned very cautious about raising rates further (We are happily surprised at their yielding, and even more surprised at market participants joy)
- Tariff talks are making progress – Interestingly, China has seen a slow down in their economy making for slightly more urgent talks – with a little compromise and statesmanship a resolve looks more likely – again a positive for capital markets.
- Earnings are still cranking along – For the prior 4-6 quarters, earnings were red hot and hitting on all cylinders, so hot, they were not sustainable. Companies are still reporting good earnings, just not the Red Hot, overheated earnings from prior quarters – this is good news as it avails the FOMC to not have to raise rates to slow the economy –
All in all a Win- Win!
Have a Great Day – Talk to you at the end of February!
John A. Kvale CFA, CFP
Fed Walked the Tight Rope Perfectly – Preview of New Scammers You Need to be Aware – Friday
On Wednesday July 31, 2019 the FOMC (Federal Open Market Committee) led by Jerome Powell and attended by our own Dallas based Robert Kaplan, did something they have not done in over 10 years…. LOWER RATES.
While we crowed ‘Not Necessary” they walked a great tight rope…
In this post announcement article…. and somewhat funny CNBC article, over a dozen … so called “Expert” firms completely disagree in all directions on what the Fed will do next!
With disagreement on what they will do next, no expectation will be ….. well … EXPECTED!
If I were a Fed official, that is exactly the way you want it … freedom to stay put, lower or raise without fussy Market Participants all weighing in on the same side of the fence.
They also stopped the winding down (selling reserves back to the market) of balance sheet reduction, which was a net tightening.
So let’s say they are in neutral now and have created the freedom to drive wherever they want! Nice..
Sorry we got a bit deep on this, this week, but we felt it important and wanted to keep you in the know!
Speaking of in the know – We have collected a few new examples of scamming that we will bring to your attention next week – One so clever it’s hard to believe!
Ahhh…but it is a Friday….
Care to guess what today and next week brings?
Last looong, big tournament of the summer…..
Thanks goodness for a new unlimited Cell plan and neat technology … Will be in touch!
Have a GREAT Friday/Weekend Summer day(s)!
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
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Posted in FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments
Tagged Fed Funds Rate, FOMC Balance Sheet, Jerome Powell, Robert Kaplan