In our explanative post here, we overview the RMD season items …. and remind those in the first year of their chose to defer or take …
RMD $$ mandated amounts are determined by the value of applicable accounts on the last day of the prior year
Current year age is a necessary factor included in calculating the RMD – see below next, first time exception – each year of seasoning (getting older) we are forced to take more out of the applicable accounts – hey the IRS has never taxed us on these in many cases – it’s their time!
After tax contributions to a qualified account MUST be accounted for in order to avoid taxes – here are greater details and our taxpayer obligations on this – don’t overpay – the IRS is not tracking this and will not come to the rescue and lower your taxes
All of an individual’s accounts must be included/totaled/value (certain exceptions are made to those continuing to work) to ascertain the needed distribution
Any one account can be used to satisfy the needed distribution (you do not have to take a little from each account, making it easier from an organization standpoint) BUT you must take at least the minimum distribution
Failure to take the mandated distribution amount COULD result in a 100% tax – Break in – our experience has been the IRS is nice about this, but let’s not test them
Social Security COLA Bump
Congratulations to those on a fixed income, the Social Security Administration SSA’s favorite inflation gauge measured a 2.8% increase, which we review in our post here and also even created this neat historical graph for our collective review…
Capital Market Comments –
Suddenly it’s Raining?
After a drop at the beginning of 2018 – mostly blamed on a creative synthetic product that bets risk will stay low (XIV) our patience was rewarded and footing found … until Ugly October came to roost…
What Gives?
At this time, no one with 100% certainty, can pin point what turned the market sky’s grey and sent rain…
Oddly, it may not be any one thing, just like an auto accident – usually multiple items occur at the same time that lead to an opening for contact with another …
Here are our best thoughts in order of our priority/possibility – again no one knows for sure…
Trendy high flying stocks that have been a momentum favorite, suddenly took it on the chin – alone in time not a big deal – seen next
Most mutual funds and many other assets managers close their books at the end of October – many heavily invested in the above trendy stocks had their year turn very ugly right at the finish line, possibly setting a musical chair like exit, causing much more volatility than what would have otherwise occurred if not so near the end of many fiscal years – an extra worry juggle ball in the air
Mid-Term elections are finally here, and it is unlikely anyone can predict with any certainty the outcome of the elections – capital market participants hate uncertainty – not a big deal if this was all they are watching, but another juggle/worry ball up in the air
Interest Rate Increase banter on how many an how long rates will increase before being “Normal” – we have discussed in great length the inverted yield curve and while we are no where near this event, yes… another juggle worry ball in the air
Tarif Talk has been around all year, but looks to come to more of a peak near the end of the year – yet another worry/juggle ball up in the air
The good news is the sun will likely come out again soon, but in true rain like fashion, it seems like the days go by SLOOOOWER when your stuck inside, under cover, without sun!
The GREAT news is earnings have been for the most part very good, not GREAT and screaming as they had earlier in the year, but still very good by comparison.
MAYBE ? – we are just overdue for a correction – This fantastic chart from our friends at JPMorgan reminds us all that these type of corrections are more of the norm, not the abnorm – we have just been without regular bouts for some time!
Have a Great Day – Talk to you at the end of November!
Social Security Website and Items to check while you are perusing
In our Social Security related post here, we discuss the tons of new options for use as well as the fantastic updates the Social Security Administration has done with their website.
The most important item to check if you are not already drawing Social Security is your credits… which can be done on this site… recall there is a possible time sunset of loosing your benefits if you do not have the Social Security Office notified, leading to a possible lower benefit.
New Tax Table and Rates – Personal
Here are the new tax tables… if they look complicated, well it is because they ARE !
Expect much more on this throughout the coming months as we dig DEEP into the actual rates and the planning techniques necessary to optimize our tax liability …. One Important five letter word…. CLUMP – more later on this!
Bottom line, at its most basic level the yield curve should go upward and outward just as our home made chart below (the starting point for our discussion.)
When it does completely the opposite or inverts, as seen below… a recession is just around the corner for as long as the eye can see!
Expect a complete detailed video over the summer on this phenomenon … along with another review in the coming Newsletter… It can be boring info, not to worry … we will liven it up!
Have a Great Day – Talk to you at the end of June!
We wanted to give a shout out to the Social Security Website. Over the last few years we have continued to be impressed with their improvements.
Since we are here, it is a good time to remind everyone to go check your Social Security Records to make sure they have received proof of your income for the last few years. There is a 3 year window to get your credits added to your statement, otherwise they may be lost…
Social Security Web Page
Use this link to find out the maximum full retirement age benefit – $2788/Month
How about find how remarrying will affect your benefits? Here is the answer!
If I retire early, will my benefits be reduced ? Just need 40 Credits! Here is the link to the calculator page to get a more precise estimate.
All answers were found on the site above… Well done guys !
With Tax season finally over, here we mentioned how it seemed to never end…but we digress…
It appears the Cyber Thieves are back at it again, and have a new technique involving Social Security. Here in our Social Cyber Post, we discuss just how they are doing this.
Bottom line, if you see something suspicious, be sure to notify the appropriate agency.
Capital Market Comments
Early Discussions of the Interest Rate Yield Curve – Rates
This is going to be fun …. In the first of a multi-part series here, we discuss the basics of the yield curve.
Bottom line, at its most basic level the yield curve should go upward and outward just as our home made chart below (the starting point for our discussion.)
The last several years marked double digit cyber invasive events through us and our friends and clients at the start of the year, peaking at tax time. Topping out at a new high last year with 12 invasive events.
This year we’re happy to announce that total threats were low single digits.
However, we did hear of a unique new trick from the tricksters worth noting.
The Social Security Trick
This year through our peer study groups we heard of one of the most clever Cyber tactics in recent memory. This Cyber attack involves signing up for your Social Security, but not being you, and depositing your Social Security into someone else’s account.
Bottom line if you receive ANYTHING from the Social Security thanking you for commencing your services for whatever reason, check into it may be fraudulent …. likely is if you have not had any interaction with the Social Security Administration!
Wish the thieves spent as much time working productive as they do destructively … the world would be a better place…… but we digress!
Have a Great Less Social Security Cyber Attacks Day!
Last week we discussed the coming big article in our Q1 2018 Newsletter concerning the new Medicare Tiers and Means Testing. In that article we discuss the income levels that will trigger higher premiums.
If you have been targeted of higher means, you will receive an IRMAA letter! You have been IRMAATized
IRMAA Letter
Short for Income Related Monthly Adjustment Amount –
Definition – You have been Mean’s Tested and the Social Security Administration (SSA) is asking you to pay more for Medicare Premiums.
The SSA is likely looking at your income from two years ago.
Good News- There is a solution if this is an unusual income amount or you have had a life changing event. This SSA Form 44 from the SSA is what you will need.
Life Changing Events According to SSA:
Marriage
Divorce/Annulment
Death of Your Spouse
Work Stoppage
Work Reduction
Loss of Income-Producing Property
Loss of Pension Income
Employer Settlement Payment
There are literally check boxes with these subjects in it. Of course life has curve balls that may not allow you to “Check the Box” … We have had continued success with folks going to the SSA office and presenting their case directly to the agent.
We would suggest the timely but productive visit if there is anything out of the ordinary with your proving of “Life Changing Event”!
Bring Proof
“ I understand that signing this form does not constitute a request for SSA to use a more recent tax year information unless it is accompanied by:
Evidence that I have had the life-changing event indicated on this form;
A copy of my Federal tax return; or
Other evidence of the more recent tax year’s modified adjusted gross income”
This information is stated just before a signature section on the SSA Form. Heed the warning and bring whatever proof in order to speed processing.
There you have it … many more options to correct the situation than a “Dear John” letter!
Here is our October 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.
Break In – D Magazine Honors – Best Wealth Managers
We are super happy to be honored in D Magazines Best Financial Planner and Wealth Managers Award !!
Thanks so much and congratulations to our fellow recipients.
11th Consecutive Honor – John Kvale Best Individual Financial Planner
The 11th consecutive D Magazine best Financial Planner award was also in this edition and we are super happy to announce, John received his 11th consecutive nomination!
Wow and again thanks to our fellow recipients!
Financial Planning Tip(s)-
Social Security Increase
Don’t smirk at 2%, every penny counts! With a CPI (Consumer Price Index) increase of 2% year over year, the Social Security Administration passed the good news on earlier this month. Take that 2% increase and run!
Capital Market Comments
Rates are Slowly Ticking Up
After much silence on interest rates, we have taken notice of recent movement as the global economy begins to pick up steam … Overseas seems to really be getting their act together.
Consumer Sentiment Also Higher
The University of Michigan Consumer Sentiment hit a post “Great Recession” high this month.
With two thirds of our US Economy being based on consumer consumption, this bodes well for the Economy.
See you at the end of November, which also features our very special Blooper Thanksgiving Video from a few years ago!
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.
October — BOOOO- 2018 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our October 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 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!
October – Booo – 2018 Video
Break In – Holiday Party Reminder
Financial Planning Tip (s) –
RMD Season
In our explanative post here, we overview the RMD season items …. and remind those in the first year of their chose to defer or take …
Social Security COLA Bump
Congratulations to those on a fixed income, the Social Security Administration SSA’s favorite inflation gauge measured a 2.8% increase, which we review in our post here and also even created this neat historical graph for our collective review…
Capital Market Comments –
Suddenly it’s Raining?
After a drop at the beginning of 2018 – mostly blamed on a creative synthetic product that bets risk will stay low (XIV) our patience was rewarded and footing found … until Ugly October came to roost…
What Gives?
At this time, no one with 100% certainty, can pin point what turned the market sky’s grey and sent rain…
Oddly, it may not be any one thing, just like an auto accident – usually multiple items occur at the same time that lead to an opening for contact with another …
Here are our best thoughts in order of our priority/possibility – again no one knows for sure…
The good news is the sun will likely come out again soon, but in true rain like fashion, it seems like the days go by SLOOOOWER when your stuck inside, under cover, without sun!
The GREAT news is earnings have been for the most part very good, not GREAT and screaming as they had earlier in the year, but still very good by comparison.
MAYBE ? – we are just overdue for a correction – This fantastic chart from our friends at JPMorgan reminds us all that these type of corrections are more of the norm, not the abnorm – we have just been without regular bouts for some time!
Have a Great Day – Talk to you at the end of November!
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
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Posted in General Financial Planning, Insurance, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Video
Tagged Fang, RMD, Social Security