J.K. Financial, Inc
Financial Planner, Founder
John A. Kvale CFA, CFP, is the founder of J.K. Financial, Inc., and with 22 years of industry experience, is currently the president of J.K.Financial, a fee only financial planning and wealth management firm.
J.K. Financial specializes in wealth management, adhering to unique approaches to investing in the capital markets. The company has a global presence, serving individual and institutional clients across the United States, as well as several foreign countries.
John is a co-author of a Quarterly Wealth Management and Financial Planning Newsletter, which is distributed to clients and investors across the country. He actively analyzes and updates ideas and investing on $treet-¢ents.com, a community blog site. John appeared on Good Morning America as the winning planner for ABC's Frugal Family Challenge, co-sponsored by USA Today. He recently concluded a term as president for the CFADFW Society, the local society in Dallas representing the CFA Institute. John began his financial planning career 24 years ago in Dallas, and resides there with his wife, Pamela, and children, Sophia and Pierce.
BBA, Finance, Stephen F. Austin State University
Assets Under Management:
Percentage of Assets
Your Life on 1 Page - John Kvale
3 questions Clients Ask - John Kvale
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If you originally purchased the bond at 95, and it is now being priced at 75, due to the aforementioned stress you’ve spoke of, if you sell the bond you will lock in the loss. If you decide to keep the bond with the goal of holding it until maturity and regaining the full amount of the bond, 100, you are choosing to bear the risk of default. Said another way, bond investors are pricing the bond at a discount, 75, for fear that the bond issue or may default, or go bankrupt.
It would be wise to check the covenants of the bonds you were speaking of, along with other bonds from other companies of similar issue to see if they are also at a discount. Ultimately it’s your decision and you will only know what the correct one was in 20/20 hindsight.
Depending on your 401k plan, it MAY be better to roll your 401k into an IRA. Frequently 401k plans have a large number of participants, limiting options and ease of distributions. Discount brokers such as Schwab, TDAmeritrade, Fidelity and many others may be able to handle specific needs of you as an individual and not be bound by the masses of a company plan. Comparing your current 401k plans to these services would be advisable before making any moves.
Yes it is possible to be too or over diversified. This usually results in holding several convention assets –think mutual funds, that own almost all the same positions. It is also possible to spread your portfolio across so many asset classes that a portfolio is watered down and has excessive transaction costs. A good start is your Fixed/Equity allocation- then decide term and quality of your fixed; next with your equity, determine domestic and international along with large and small. Depending on the size of your portfolio several traditional packaged assets can get you as general or as specific as you may want to express your portfolio allocations.
It would not be recommended to open and draw from a margin account in order to meet your monthly income needs. Generally, a margin account used for this type of withdrawal may cost more than your funds otherwise would earn. If the minimum amount needed for your annual expenses is $2000 a month, then blending the draw between each of these assets may be a good idea. It should be noted that the annuity may have some type of surrender charge, if this is the case you may want to draw from other asset pools first. You may also want to check the basis in your annuity along with the tax ramifications of drawings from your IRA. These two assets may have more demanding tax ramifications if drawn from directly in an accelerated manner. A more important factor, is this draw amount will greatly reduce your portfolio value quickly due to the percentage draw as it relates to the assets. You may want to consider reducing your monthly draw to extend the time horizon of your funds.
Great question, while there has been a lot of press about the effects of HFT trading, there are many other factors to consider. Depending on the stock you may be trying to purchase or sell, liquidity may be a factor. Capital markets have also been volatile as of late. Given that you have said one of the best brokerage firms, it’s very likely they are doing all they can to give you the best execution possible. You may want to check into their order flow routing and execution policies.
A possible simple solution would be to place limit orders. No matter the solution, it is wise to keep an eye on this especially if you are doing a lot of trades, which brings us to another possible solution, attempt to trade less.