Tag Archives: Market

February 2018 Podcast Video, Financial Planning and Capital Market Update- By John Kvale

Hello and Welcome to our February 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.

February 2018 Video

Financial Planning Tip (s) –

Three Tax Savings Ideas you can do NOW for LAST Year’s (2017) TaxesUncle Sam

With the official kick off of Tax Season occurring some time in February … we are not sure what the “Official” start to Tax Season is, but we know it is sometime in February if not earlier .. haha

In an yet to be completed series – we still have two more parts, the first Three were let out of the box this month …. Let’s quickly review!

HSA or Health Savings Account

Our post here, speaks of the terrific opportunity to set aside Pre-Tax dollars to use now or later for medical expenses. In true Reach Back Tax Savings form, this contribution can be made now for last years taxes.

Be Careful though, you must make the contribution by the regular filing deadline i.e. No extensions to get the benefit applied to last year.

As mentioned above this account does not have to be used completely and can be delayed for highly likely future medical needs.

A handy trick we have used over the years when an employer makes some type of a contribution is to remind participants that in most cases you can make up the difference and get a tax savings.

Check with your Health Insurance Carrier to see if you qualify for an HSA contribution. If you do, we highly recommend you make the contribution.

SEP – Simplified Employee Pension

This beefed up IRA is another super Reach Back Tax Saver and the contribution can be made as late as your extended filing deadline.

The SEP offsets income that make come to you as non W-2. Think consulting, temporary work, as side business that generates income to you directly or any non W-2 regular pay.

As mentioned in our Post Here, there are very high limits of contribution, and the SEP can be done during mandated RMD’s, as well as in tangent with a 401k program, as long as the upper limits collectively of contribution are not violated.

Pre-Tax Deductible IRA

As the one of the original retirement vehicles and so vintage many forget (We Don’t!) we want to remind here in our post about the IRA – Individual Retirement Account.

Notice our careful heading of Pre-Tax Deductible IRA – We are not fans of the after tax IRA (contributing and not getting a write off) and in most case recommend you pass if you cannot deduct the contribution.

There are more limits to a Pre-Tax Deductible IRA under current tax laws, again be sure to see our post for limits and restrictions, but if you qualify, it is worth the savings as this is another “Reach Back Tax” saving idea.

Like the HSA, contributions must be made by the regular filing date- extensions do not  help you. So do not wait until the last minute.

Capital Market Comments

Finding our Footing After Getting Ahead of Ourselves

In a coincidental oddity, we had been putting the finishing touches on a post prior to the ugly 10% FAST FAST correction that occurred in late January and February.

In our post here, we spoke on where we may get back on trend- No one knows, of course, but simple logic of an unsustainable path was our analysis.

We think patience is needed as this will take time to digest and again find our footing.

Patience will be needed!

Here is where we are now — Our Trend line is looking pretty good – So Far.

3-1-18 SPX W JK trendline


We will keep watch and keep you updated!

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

John A. Kvale CFA, CFP

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

Market Comments … Our Thoughts and actions … Winter Weekend Weather

Over the last several years capital markets have been unusually friendly. They have dropped double digits briefly only a couple of times, and with an emphasis on “Briefly”

We have been spoiled !

Since the beginning of the year, markets are returning to more normal moves (even more jumpy than normal in some cases) or should we say moods !  2007-2009, 1999-2002 still ring clearly in our ears (and eyes) and is for sure in part why we are more conservative.

Capital Markets don’t go down forever, but is sure seems like it, as it slows down when they do (the pain is greater than the pleasure.) Of course we do not enjoy it either…

With never going “all in” or “all out” we are very happy with our allocations and will take advantage of the opportunities as they present themselves.

How long will this last ?

The average bear markets lasts about 18 months, but for various internal reasons, we think this may not be a BEAR, but just a long awaited, take the froth out correction! No matter, we like our allocations !Froth Off

In five years, we doubt this movement will displace the afore mentioned historical dramatic times.

Just a return to more normal movements !

Weekend Weather

To all of our friends in front of the storm coming this weekend, we wish you a safe time …summers we get tornadoes, winters you get storms … exchanging well wishes here !

Have a Great Weekend!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225