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
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!”
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
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Posted in Care Act, Economy, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning
Tagged Buffett, Buffett Valuation, Cares Act, GDP to SP 500, Review, RMD, Secure Act, Stimulus Check, Stimulus Check Link