Tag Archives: Secure Act

Q2 2021 J.K. Financial, Inc. Newsletter … Video Audio Podcast Review – Reminders ! By John Kvale

Welcome to our Video and Audio Podcast Review of our Q2 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

Let’s get going! We hope you enjoy!

Q 2 2021 Newsletter

(YouTube)

Social Security Earnings Record Check Reminder

In our lead article of the Q 2 2021 Newsletter, we remind all of the importance of checking your Social Security Record, no matter your thoughts on the longevity of Social Security….

Additionally we walk you through step by step on how to do this and also how to set up your SSA on line account!

Secure Act – Possibly Forgotten But Important Changes

With the passing of the SECURE act, the old age of 70.5 mandatory RMD (Required Minimum Distribution) was pushed to age 72.

Many times, it is not appropriate to wait until this age, depending on the location of some assets. EX Large IRA compared to other non iRA investment, Tax Brackets, One Off income Years

For those where it is appropriate to wait until the latest possible date, you can actually wait until the year AFTER you turn 72 as long at you take the distribution before April 1 of the year AFTER turning 72.

Warning, in almost all cases we discourage this last maximum delayed technique as it ends up forcing two RMD’s in the same tax year of your 73 birthday.

Buffet Valuation Indicator

Warren Buffett, the usually closed lip investor, years ago mentioned his macro Valuation indicator which is shown below.

It has never flashed “Over Valuation” as much as it is now!

Expecting tremendous Earnings Growth to help turn this indicator around and head the other direction!

We hope you enjoy … talk to you in the Summer!

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
www.street-cents.com

January 2021 Financial Planning and Capital Market Review – By John Kvale

Hello and Welcome to our January 2021 (First Monthly Review of the New Year) 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!

January 2021 Video – First of Year

YouTube

Financial Planning Tips

Required Minimum Distributions Now 72

As mentioned here in our post, do not feel bad if you lost track of changes, as in just over 12 months there were THREE – yes three major laws implemented.

Late December of 2019, the SECURE act (Setting Every Community Up for Retirement) among other things, upped the first mandatory RMD (Required Minimum Distributions) from Qualified/IRA/401k type plans to 72!

The Covid 19 related Cares Act passed in late March of 2020 nullified RMD’s for all of 2020, making for some confusion.

Second Stimulus Check Update

In this post, we review the new Stimulus check amounts, and where you can CAREFULLY go to check the status of your check…. here are the highlights…

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment.

Here is the link to the US Government tracking site:

https://www.irs.gov/coronavirus/get-my-payment

Once open need to Click on “Get My Payment” Tab

Be very careful when opening this site to NOT allow your browser to jump to any other site than that associated with the IRS as you will be asked for confidential information!

Capital Market Comments

Buffett Back Of Napkin Valuation Metric

After happily receiving an “OK” to reprint graphs directly from the CEO of this industry publication – Look Out, there are tons of Great Articles that we look forward to bringing you!

Up first, a great broad Buffett “Back of the Napkin” Market Value Metric- This is the Market Capitalization of the S&P 500 divided by the US Gross Domestic Production…. This measure has never been this high before- sending a warning signal for Current Valuations.

“Price is what you pay, value is what you get!”

Chart Via Jill Mislinski 1-5-21 (Advisor Perspectives)

Happy Start to the New Year!

Have a Great Day and Super Start to the New Year!

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

RMD (Required Minimum Distributions) Changed to Age 72 Reminder … Stimulus Payment Method Reminder … Friday!

Very late in 2019, which sometimes seems like an eternity ago, and with the waiving of mandatory distributions in 2020, due to several comments and questions this week we wanted to briefly remind folks.

RMD – Required Minimum Distributions Commence at age 72 Now!

This week we had several occasions to discuss and remind that as of December 2019 due to the Secure Act RMD’s (Required Minimum Distribution‘s) were moved up from age 70 1/2 to age 72. We will talk about this in much greater detail in our next quarter newsletter along with a more detailed post just directed at the RMD new age requirement and the various other items that were adjusted by the afore mentioned Secure Act!

Stimulus Payment Method Reminder

Also due to repeat conversations …always happy to have as you give us terrific content and others are certainly in the same situation … ok digressing… this week about the method of payment for the stimulus funds. As a reminder the IRS essentially issues us a rebate for the stimulus funds as such they’re using the banking instructions that they had on file for our 2019 tax return. If you had no banking instructions on file they will be mailing the stimulus.

Friday

OK sorry for being a little heavy on a rainy Friday .. here in Texas it’s been very overcast for almost a week which seems like a year this time of the year, but that’s OK enjoy your Friday … have a great weekend will talk to you next week!

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

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) –

12-31-19 Secure Act House Ways and Means

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:

  1. Age 72 RMD, up from the confusing 70.5
  2. 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

12-16-19 Fed Funds Rate

 

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

Break In: SECURE ACT – (New Retirement Plan Rules) a Breath Away from Law – Friday – Office Hours Over Next Holidays – Happy Holidays

Break In:

SECURE ACT looks to be passed at the last minute amid year end legislation…

We rarely comment on items that are not law, but the SECURE ACT (Setting Every Community Up for Retirement) is just a pen stroke by the President away from law, as both the House and Senate have approved.

Two Biggest Items of Secure Act (Many Others, but the following are the elephants):

  1. Delayed mandatory RMD until age 72 – Nice
  2. Non-Spousal Beneficiaries to IRA’s will only have 10 years to empty the account – Tax Acceleration here – will require planning

These laws, if passed will commence for actions occurring after 1-1-2020…

 Back to our Regularly Scheduled Program….

Today is a Friday and with local schools only a half day, we will be adhering to the same schedule to help keep the streets safe…haha

Office Hours Over the Holidays

Each of us are taking time off over the next two weeks, but an attempt to not all be gone at the same time is always made…. there will be several days where we will all be out.

I always make myself available via the technology tether to let the others disconnect…

That being said, there are travels in the schedule as well!

So if a delayed response, it may be due to bad WiFi flight times….

Fun Pre-Scheduled Posts

Over the year, a few neat comments have caught the eye and will be shared over the Holidays!

Have a Great Holiday Season and talk to you in 2020!

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