Welcome to our Video and Audio Podcast Review of our Q4 2021 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.
Click the Download button below, for a direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page
BREAK IN – We hope you see videos in the email notification, but if not, you may click on the code for the actual video…hence the dual videos, hoping one works on your cell!
IRS Refunds and Tax Return Processing Very Delayed
In this Break In Post, after having discussions with several of you, and then touching our CPA contacts we came to the conclusion that the IRS is delayed in processing returns and more importantly REFUNDS!!!
Before we could get the news to you, this Yahoo Finance Article nicely summarizes that the IRS is behind on a whopping 20% of returns or over 30 million !
With a September 1, 2021 IRS stimulus check lookback (those who did not get the last round of stimulus will be reviewed by the IRS to see if they qualify) the IRS has their hands very full….
All together…. PATIENCE! They will eventually get to us!
Fingers Crossed For a Hot (Large) COLA Increase
Catching wind through our contacts of a possible HOT (read Large!) COLA adjustment this year for Social Security and possibly those lucky ones that have a COLA adjuster on their Pension or other retirement plan we dug in here in this post and outlined the methodology used by the SSA. The line in the sand for adjustment is later in the year but as can be seen by the latest CPI-W running at 6.1%, with a little luck, we may have a very nice adjustment on our hands!
Capital Market Comments
Valuations are Getting Better but Expectations are WAY out of Line!
In this post and with the help of our Friends at JPMorgan we happily reviewed the far right hand smartly turning graph, that is headed in the correct direction for better valuations… YAY
A bit later in the month we ran across a wonderful but somewhat worrisome poll done by Natixis of over 8000 investors and their expected return over the next 10 years…. Way off base in our minds….
Likely to see this last poll make its way into the Newsletter as these numbers are likely so exaggerated, we want more air time!
Ok…that’s a wrap for the July review….
Have a Great Day, Talk to You at the End of August!
We recently ran across a very interesting survey. What caught our eye on this survey was the large number surveyed, 8550 individuals in over 24 countries, all with at least $100k of investments in Capital Markets.
The second item that caught our eyes, were some of the jaw dropping expectations of these investors. Thankfully, the survey is also given to professional investors and a neat comparison can easily be made!
Natixis Global Individual Investor Survey
Here in the 2021 Natixis Global Individual Investor Survey, some eye popping results caught our eye. As a side note there is a similar survey done with Institutional Survey as well.
The most recent survey found these collective individual investors expecting 13% returns over the next 10 years, ABOVE inflation….or a 14.5% total 10 year average!
We never make guarantee calls, as there are not any…. but we would find it EXTREMELY unlikely to meet these expectations. Not only that, but as you can see from the chart, the returns follow what we call “Rear View Mirror Forecasting” which is using the most recent past to forecast the future … rather than using true forecasting techniques.
Another concern arising from this information is with this expectation a possible under saving for the future and too low of risk expectations that may be inferred with these results.
Individuals expect 13% over inflation for the next 10 years with Professionals expecting 5.3% – while we wish individuals are correct, it’s very unrealistic … Pro’s are likely much more accurate!
We will code this one Forecast and look back in 10 years to see who was closer! Yep a 10 year lookback….
Let the clock start ticking!
Have a Great “Individual versus Pros Expectation” Day!
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.
July (YIKES GOING FAST) 2021 Financial Planning and Capital Market Review – By John Kvale
Hello and Welcome to our July 2021 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!
Hope you enjoy!
July 2021 Video
YouTube
Financial Planning Tip(s)
IRS Refunds and Tax Return Processing Very Delayed
In this Break In Post, after having discussions with several of you, and then touching our CPA contacts we came to the conclusion that the IRS is delayed in processing returns and more importantly REFUNDS!!!
Before we could get the news to you, this Yahoo Finance Article nicely summarizes that the IRS is behind on a whopping 20% of returns or over 30 million !
With a September 1, 2021 IRS stimulus check lookback (those who did not get the last round of stimulus will be reviewed by the IRS to see if they qualify) the IRS has their hands very full….
All together…. PATIENCE! They will eventually get to us!
Fingers Crossed For a Hot (Large) COLA Increase
Catching wind through our contacts of a possible HOT (read Large!) COLA adjustment this year for Social Security and possibly those lucky ones that have a COLA adjuster on their Pension or other retirement plan we dug in here in this post and outlined the methodology used by the SSA. The line in the sand for adjustment is later in the year but as can be seen by the latest CPI-W running at 6.1%, with a little luck, we may have a very nice adjustment on our hands!
Capital Market Comments
Valuations are Getting Better but Expectations are WAY out of Line!
In this post and with the help of our Friends at JPMorgan we happily reviewed the far right hand smartly turning graph, that is headed in the correct direction for better valuations… YAY
A bit later in the month we ran across a wonderful but somewhat worrisome poll done by Natixis of over 8000 investors and their expected return over the next 10 years…. Way off base in our minds….
Likely to see this last poll make its way into the Newsletter as these numbers are likely so exaggerated, we want more air time!
Ok…that’s a wrap for the July review….
Have a Great Day, Talk to You at the End of August!
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
Share this:
Like this:
Leave a comment
Posted in Audio, Clients/Clients Only, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Retirement Planning, Social Security, Tax Related, Video
Tagged Cola, Forward PE, Inflation, IRS, IRS Delays, IRS Refunds, JPMorgan, Natixis, Natixis Investor Survey, Pension COLA, Social Security COLA