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Remember Depeche Mode? You know the 80’s New Wave band? They blasted through the US charts. One of their iconic album’s was called “Black Celebration”.  This album was a sensation. One particular song of interest from the album was “A Question of Time”.

Lyrics:

It’s just a question of time
And it’s running out for you
It won’t be long until you’ll do
Exactly what they want you to


This can be referenced in the US bond markets with interest rates.

In the 90’s there were the “Bond Vigilantes” that put the bond markets back into equilibrium. If rates were out of the norm, they would take a counter position in hopes of the spread narrowing.


The US Treasuries rates are at an all time low. From a historical standard, there’s only 2 directions the rates will go.  The rates will go sideways or go up. 


Because rates are so low, savers have been punished with low interest rates.  These investors have been looking for higher yield.  But, as the yield increases, so do the risks.  Some of these riskier markets are corporates, high yield corporates, mortgage back securities, shadow crypto banking markets, and more.

These alternative fixed income markets create risk arbitrage interest rate opportunities for investors.  Capital will flow out of low interest rates into these higher yielding opportunities.  Examples can be seen with low bank rates and savers moving out seeking higher yield in corporate bonds.

Does it matter if the Fed lowers rates anymore? Which way will they go?

Is it a Question of time before the Fed raises rates?  As the song continues:

It’s just a question of time
And it’s running out for you
It won’t be long until you’ll do
Exactly what they want you to
It won’t be long until you’ll do
Exactly what they want you to



As the title of this article, “It’s a Question of Time.”
Be prepared. Review and analyze your portfolio today.  Contact us NOW!

Lyrics:
Depeche Mode, Martin Gore

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. For information about Treveri Capital LLC’s, please consult the Firm’s Form ADV available at www.adviserinfo.sec.gov

Big government agencies, cities and municipalities are becoming larger and financially unsustainable.  Many jobs performed by humans are being eliminated.  As an employee of a government entity, it’s important to insulate your retirement against the impending robot revolution. Here are 4 common mistakes before retirement to avoid:  

# 1 – Pension Equals Security

The most common mistake government employees make is thinking that a pension equals financial security.   Because of a false sense of security, employees often fail to have a retirement strategy. This illusion creates a heartbreaking situation very late in ones career. By the time an employee plans for retirement, they realize their miscalculation.  This calculation is often too late to correct. Employees often overlook the incredible advantages offered by their 457b, 403b or 401k. Utilized properly, these supplemental retirement options can provide flexibility on when or how to retire in the future.  Instead of being dependent on the pension, with proper planning, you could retire early and comfortably.

#2 – Pension Credit Knowledge

It’s important to review your pension credits annually with a fiduciary financial advisor.  You need to make sure your credits have been calculated correctly.  Employers make mistakes that must be caught by the employee or their financial advisor, BEFORE they retire. Each pension varies on their calculation method, so it’s important that you know how to maximize your credits. If you transfer jobs, will your credits come with you?  Are you looking to retire early and move out of state? Do you need to buy credits?  A financial advisor can help you devise the right exit strategy, maximize your investment, and avoid penalties. 

# 3 – Portfolio is Weak Sauce

It’s important to invest in higher yielding assets for greater returns. Without proper guidance, many employees will only yield 1 or 2% a year from a stable fund, money market, or low paying CD. This is very detrimental to long term portfolio growth. If you have just landed a job with these great benefits, you will need a more aggressive approach. If you are close to retirement, a more conservative strategy can be applicable. Your portfolio needs to be customized by a retirement professional, for the time you plan to invest and your risk suitability. 

#4 – Retirement Account Collecting Dust

A retiree that wants to generate more income to keep up with inflation may want a portfolio with high paying dividend stocks and various bonds ranging from high yield to corporate bonds. Rolling a 457b, 403b, or 401k into an IRA can offer that flexibility. 

With proper planning and strategy, your retirement portfolio can provide you with healthy options. Don’t wait until you are unhappy with your job to find out you made poor investment decisions and you’re trapped. Talk to an investment advisor and let them help you plan for unexpected crisis, layoffs, promotions, and early retirement.  There are lots of options that can help you plan for a safe and comfortable future.

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

Every year people do spring cleaning at their homes.  The cleaning is to sort, organize, get rid of things, and sometimes repair old items.  Just like your house, financial portfolio reviews need to be done periodically.  Although they are reviewed, there are common 401k to IRA rollover mistakes to avoid.

  • Accumulating 401k’s

The days of one job careers are long over.  The median number of years that wage and salary workers had with their current employers is 4.1 years as of January 2020 from US Bureau of Labor Statistics.  This means by the time an individual is in their 40’s, they may have accumulated 4 or 5 different 401k’s. Because each 401k has different fee structures and investments, it’s important to consolidate them.  Consolidating them helps on organizing and tracking because every year there are millions of forgotten 401k accounts (24.3 million accounts 2021 Department of Labor data).

  • Transferring 401k to 401k

Retirement accounts like the 401k are great retirement savings vehicles.  The problem with them is the limited amount of investment choices for an investor.  Instead of rolling over a 401k to an IRA, some individuals make the mistake of transferring an old 401k to another 401k with limited investment choices. The perfect opportunity is when you start a new job and move the old 401k to an IRA.  IRA’s have many more investment choices and the ability to have a fiduciary financial advisor manage it for you.

  • Too Conservative

It’s important to invest the money.  Putting the money in a money market is very safe but lacks the ability for market growth and accumulation.  Being too conservative can be prohibitive to the benefit of these tax deferred accounts.  But keep in mind, portfolio allocation can vary with risk parameters and time frame.

  •  Indirect Rollover

When rolling over your account, it’s important to roll it directly over from one retirement account to another retirement account. Sometimes people do an indirect rollover which is when a check is cut directly to you.  This is a 60-day rollover and you have 60 days to deposit all or a portion into another retirement account.  Keep in mind, 20% is withheld and potential penalties if early distribution. The easiest way to do a direct rollover is by setting up the 2nd retirement account before any transaction occurs so that there’s an account number already established for the rollover.  When you do the rollover it’s going from a retirement account to an existing retirement account.

Smarter 401k to IRA Retirement

Because most people have several jobs before retirement, it’s important keep track and consolidate 401ks to IRA’s.  Being too conservative can hurt you long term on growing the assets.  When rolling over the accounts, it’s ideal to do a direct rollover.  These are simple house cleaning tips to your financial future success.

Treveri Capital is here to help you.  Contact us today HERE.

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.

https://www.bls.gov/news.release/tenure.nr0.htm
https://www.hicapitalize.com/resources/the-true-cost-of-forgotten-401ks/
https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions