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In the 80’s Smith Barney a very large financial investment firm used to run TV commercial advertisements that were targeted toward savers and small business owners. The commercials would have an older gentleman saying, “We earn money the old fashion way, we earrrn it!”. Its a very iconic commercial because it portrays to investors that the hired investment firm has “financial advisors” with strong work ethics. Fast forward to today and we have similar terminology with the use of the word “fiduciary” thrown around in the financial advising industry. Although financial advisors have a fiduciary duty to its clients, they are all different.

Blurring the lines of a fiduciary financial advisor is when a investment firm is related to a broker dealer. Broker dealers conduct business based on commissions. The reason this is important to know is because an advisors goal may not be aligned with the individuals financial goal but of generating commissions for the broker dealer. Full disclosures usually has to be made to the client so the client is aware of any potential conflicts of interest. We see this conflict of interest recently with TIAA CREF investment advisors with incentives and firm pressure to peddle proprietary products. They have incentives to peddle firm products with compensation, sales target goals, and will be terminated if not met. The compensation model of the employees is widespread throughout big Wall Street and banks.

Because of these compensation packages, fancy words to incite clients trust are used to give the appearance of a “fiduciary” financial advisor. Again, we see this with the TIAA CREF case page 7 when they used the words “fiduciaries”, “objective”, and “non-commissioned”. But, in reality the advisor is trying to hit their corporate sales goals without getting fired regardless of the clients investment goals. Now, does this sound like a fiduciary looking out for your best financial interest? Will your investment goals be met with the firm proprietary products or employee compensation models? This is a industry wide practice to keep an eye on because the firm may be paid differently based on proprietary products versus non-proprietary products. These issues can be easily eliminated when the broker dealer is an independent third party.

A often overlooked conflict of interest is the 12b-1 fees on funds. This is a fee on mutual funds that get paid out but sometimes are not disclosed to the client as seen recently with an investment advisor failing to disclose conflicts of interest for mutual fund share classes.

A fiduciary financial advisor today can blur many lines depending on how they are structured. At Treveri Capital, we are a non broker dealer with a 3rd party custodian for transparency, and aligning our goals with your financial goals. Our fiduciary duty is earned with your trust as a boutique investment firm catering to individuals investment goals.

Copyright © 2021 All rights reserved. No part may be reproduced, altered, or copied in any form without written consent. Information contained herein is for informational purposes only and should not be construed as an offer, solicitation, or recommendation to buy or sell securities, or personalized investment, tax or legal advice. The information has been obtained from sources believed to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice. TreveriCapital LLC is a California registered investment advisor.

Big banks jump on the latest trends with the term “financial inclusion” for the masses. But, is financial inclusion from big banks a myth?

Recent news from Wells Fargo shows quite the opposite of inclusion from Wells Fargo by eliminating revolving lines of credit of users borrowing $3,000 to $100,000. Although this is financial exclusion, can this be seen as a form of “financial empowerment”? Elimination of debt is good but sometimes debt is used to create more wealth and savings which is “financial empowerment“.

What most people forget about is investment advisor accounts and/or brokerage accounts offer margin which can be used as a line of credit. Contact your investment planner today!

Information contained herein is for informational purposes only and should not be construed as an offer, solicitation, or recommendation to buy or sell securities, or personalized investment, tax or legal advice. The information has been obtained from sources believed to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice. Treveri Capital LLC is a California registered investment advisor. For information about Treveri Capital LLC’s, please consult the Firm’s Form ADV available at www.adviserinfo.sec.gov.

We are now seeing how important crypto is within portfolios. Being a non-correlated asset, crypto investment vehicles are being created by major financial institutions. Guggenheim is registering with the SEC a new fund for financial advisors and asset managers.

Cryptocurrency, Digital Assets, or Virtual Currency Investments. The Fund may seek investment exposure to cryptocurrency (notably, Bitcoin), often referred to as “virtual currency” or “digital currency,” through cash settled derivatives instruments, such as cash settled exchange traded futures, or through investment vehicles that offer exposure to Bitcoin or other cryptocurrencies through direct investments or indirect exposure such as derivatives contracts.

Guggenheim Active Allocation Fund- SEC Form N-2 Registration Statement

Some unique characteristics of crypto with it’s beta.

Being a highly non-correlated asset, Bitcoin is very important for portfolios to help minimize volatility risk which is seen with standard deviation. Find out how we can help you and your portfolio. Contact us HERE.

Information contained herein is for informational purposes only and should not be construed as an offer, solicitation, or recommendation to buy or sell securities, or personalized investment, tax or legal advice. The information has been obtained from sources believed to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice. TreveriCapital LLC is a California registered investment advisor. For information about Treveri Capital LLC’s, please consult the Firm’s Form ADV available at www.adviserinfo.sec.gov.