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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Great question. Here is a link to a description of a tender offer for those who may not be familiar with the details.
The answer to your question lies in what you currently own and the company offering the tender offer is as well as the price of the offer. If you feel the company you currently own is a better investment than the tender offer company, then you may not want to accept the offer.
If you feel the tendering company may be a good investment, then you may want to accept the offer. If you accept the tender, you will end up holding the new company asset. You should also attempt to determine if the offering price is at a level you feel is good for your situation.
You have a tremendous amount of options with an inherited IRA. Regarding your question of an inherited IRA of your own, your receipt of your father’s IRA as an inherited IRA is in most cases, the only way to open such an account. You may be able to open an IRA, just in your name, with yourself as owner, but not as an inherited IRA.
Since you are now the owner of this IRA, you may want to determine your investment goals, desires, and time frames, and adjust the assets in your inherited IRA to match your situation rather than your father’s. If there was no Required Minimum Distribution (RMD) taken this year and one was due, you may need to take this year’s RMD based on your fathers age, with future years based on your age. The amount of taxes you will need to withhold will depend on your tax situation. Based on your questions, your tax liability may be greater this year than next due to the age differences of you and your father, as it relates to your mandatory RMD. You may want to check with your tax professional for more precise amounts.
By interest rates, assuming you mean possibly the Federal Funds rate, controlled by the Federal Open Market Committee (FOMC) and other rates such as the treasury yield and commensurate rates.
Many say that if interest rates rise, this is generally a headwind to many areas of the economy such as you mention. (Click here for a detailed explanation) However, since rates have been low for an extended period of time, possibly too low, many argue there is a possibility that higher rates may actually be good for the overall economy.
Dramatic, fast paced, and unexpected moves, historically have been more disruptive. Again, slower higher rates, many argue may be beneficial to real growth.
There is no set time frame for this distribution to be complete in most cases. If you wish to expedite the process you may wish to contact the HR representative or the Third Party Administrator (TPA) directly to get a sense of the time they expect you to receive your funds.
Company/TPA policy may determine the timing of your distribution, again as there is generally no set time frame. The 5500 filing may or may not cause any problems with the timing of the distribution depending on the timing of the extension, however just because a 5500 has been extended, it does not mandate your distribution be delayed in many cases.
Assuming your life insurance policy has a cash value, in most cases it is possible to borrow or receive funds from your life insurance cash account. Here are a couple steps you should review; Determine how much you would like to receive and call your insurance company to find out if that is available; Next, while talking to your insurance company find out the most tax efficient way to receive these funds. There are generally two possibilities, a return of premium or borrowing. Depending on your situation and your insurance policy, one may have more favorable tax consequences. Do not be afraid to ask your insurance company for the tax consequences of each. One last item, if you borrow or draw from your insurance policy, you may need to continue your regular premiums in order to keep your policy in force. If you draw a sizable amount from your cash value, and do no pay premiums, it is highly likely your policy will lapse, thereby nullifying your death benefit.