SECURE Act is Signed at the Finish Line of the Year
As mentioned here in our preview post, with a stroke of a pen on the Saturday before the Christmas week, the SECURE ACT (Setting Every Community Up for Retirement Enhancement) – Wow that is a mouthful!
The Biggies:
Age 72 RMD, up from the confusing 70.5
Non-Spouse 10 Year Mandatory distributions of Inherited IRA – Mandating taxes by beneficiary
Tons of planning techniques and lots more to the law, but these again are the biggies!
Capital Market Comments –
FED Pauses and Markets Yawn… Finally
The FOMC (Federal Open Market Committee) led by Jerome Powell and company, FINALLY were able to not lower rates and market participants accepted it… Shhh, lets keep it our secret..haha
Happy 2020!
Have a Great Day – Talk to you at the end of January!
The FOMC (Federal Open Market Committee) led by Jerome Powell, quietly paused this week.
FOMC No Change
Mid-Week, the FOMC announced no change in their controlled short term interest rate.
We have been vocal about not lowering rates moving forward, to keep some gunpowder for the next recession.
After a market desired multiple small lowering of rates earlier this year, this week, the FOMC effectively did nothing, and did not disturb Capital Market Participants… finally.
They also made no future promises, again, with market blessings…
Email is the New Physical Address – Harder to Change
With email replacing our home address in importance, its not a surprise and only a mild inconvenience (due to the safety) to have to get a signed form in order to change our address.
In our descriptive post on the subject, we also predict eventually we will all likely be forced to transact most of our business in a paperless way…. Uncomfortable for many, but much better for our environment in the long term!
Why an Inheritance is Usually NOT Taxable
After running into this question numerous times we did a post here, and will also have an expanded article coming in our Q1 2020 Newsletter.
For the most part, inheritances are not taxable and in our post we go over the reasons why, and discuss techniques for being most tax efficient.
Just after this post a good follow on subject directly related to this post occurred that will go well in our “Why” Series Collection – Watch for another Inheritance Related Post and likely Newsletter Article !
Capital Market Comments –
When FED lowers, Recession Averted? Hmmmm
Near the end of the Quarter, as mentioned in our Fire Hydrant CEO post here, we ran into a most interesting chart (below)….
A first ever to see, the speaker points out that recessions are averted when the FED (Federal Open Market Committee – Jerome Powell the leader currently) lowers rates during an inverted yield curve… hmmmm
Not to worry, doing more research on this … oddly the speaker did not think much of Powell’s economic prowess, but spoke firmly that due to his LACK of horsepower on the Economy he may have a better chance of soft landing this slowdown…
Always learning!!
Have a Great Day – Talk to you at the end of December!
While the FOMC (Federal Open Market Committee) led by Jerome Powell have been lowering short term rates, see notes by us here, here and here….
Until just recently, longer term rates were following short term rates down…
Good News From Interest Rates
While the FOMC does control short term rates, they have much less control of longer term rates and actually by lowering short term rates they were hoping for this….
Higher long term rates are our friend … Possible reasons:
Market participants way of being more positive
Tariff talks proceeding
Less fear
Expectation of future growth
10 Year Treasury Rate
If we showed a longer term chart you would see it still has a ways to go as we are only nearing 2% – half full guys… have to start somewhere… For now, good news!
Newsletter Under Way
We have some really neat items under way for the Q 1 2020 (yikes- did we just say that) Newsletter… we have found some great Government Public sources of information that we think you will really like – now on to pulling it all together for brevity and clarity — never thought those research paper skills would be so used – Sorry to all the English teachers that did not get full effort..yes you told me so! haha
Today is a chilly Friday and Thanksgiving is just around the corner…
Hello and Welcome to our October 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 audio format as well as Video!
BREAK IN
D Magazines Best Wealth Managers
D Magazine Best Financial Planner – 13th Consecutive – Wow
Sirius Satellite Radio Co-Host
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
October – 2019 Video
Financial Planning Tip (s) –
Why we want ANY seeming Important Document
In this post, due to recent fantastic $$ savings just by having access to very old documents… some almost two decades, we were reminded of how important it is for us to safely keep ANY seeming important document…. forever
Only thing is, if we do not have a soft copy… we cannot save it!
Capital Market Comments –
FED Lowers Once Again, another .25% – Likely Pause Expected
Jerome Powell Chief of the FOMC (Federal Open Market Committee) lowered rates by .25% to the 1.50% to 1.75% range, which will directly effect our overnight money, such as checking accounts and money markets… We think in part, to answer expectations… the good news is they have set future pause expectations… which we like!
Longer term rates have followed a bit, for now.
Have a Great Day – Talk to you at the end of November!
Last Wednesday the FOMC (Federal Open Market Committee) led by Jerome Powell and attended by Dallas’ own Robert Kaplan, lowered rates by .25% to 1.75 to 2.00% Range…
FOMC Lowers rates once again
With a ton of information coming at you (Newsletter is full of interest rate talk) we will keep this short…
The FOMC lowered rates a second time, making for an unofficial change in this cycle from raising to lowering of rates….
While the chart above may seem extreme … let’s look longer term….
It’s ok… a .25% move is not that much, but we really would like room to lower when the inevitable recession comes…. who knows, if the tariff talks get fixed, raising of rates may be in the cards…. wouldn’t that be an interesting turn of events… hand tight, we have your back!
Today is a wet Friday, enjoy your weekend and grab that umbrella.
Maybe an over crow of the Inverted Yield curve … but take a look at it’s predictive nature for a recession – darkened areas are recessions:
In case (very likely) you are looking at this post on your cell … at the far right of the above chart, the line dips below zero – this means that that 90 day FOMC/rate is higher than the 10 year treasury – YEP that’s inverted and as far as we can see … a predictor of a recession –
DON’T JUMP YET!
Recessions come in all forms, and by definition is two consecutive quarters of negative GDP (Gross Domestic Production) –
Remember how slow our recovery has been? This is that last 70 years of expansions, the weakly line on the lower right is our current – yea, its longer, but slower and weaker than all of the others, maybe even the “Runt” recovery compared to all the others …. from our Friends and JPMorgan as of 9-1-19!
Can a car that is going slow, really crash hard? Hmmmm…
All of this has also created an opportunity — tease, tease, tease….
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.
December 2019 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our December 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 audio 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 – 2019 Video
Financial Planning Tip (s) –
SECURE Act is Signed at the Finish Line of the Year
As mentioned here in our preview post, with a stroke of a pen on the Saturday before the Christmas week, the SECURE ACT (Setting Every Community Up for Retirement Enhancement) – Wow that is a mouthful!
The Biggies:
Tons of planning techniques and lots more to the law, but these again are the biggies!
Capital Market Comments –
FED Pauses and Markets Yawn… Finally
The FOMC (Federal Open Market Committee) led by Jerome Powell and company, FINALLY were able to not lower rates and market participants accepted it… Shhh, lets keep it our secret..haha
Happy 2020!
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
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Posted in Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Tax Related, Video
Tagged Fed Funds Rate, FOMC, House Committee On Ways and Means, Secure Act