Category: Financial Advisors

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

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.

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.

COVID-19 & Teacher 403B Retirement Savings

I was doing my normal daily routine of looking at news and emails this morning when I came across a Reddit post about a teacher that resigned.  The teacher had asthma and a partner with heart issues.  The school was unwilling to work with the teachers need for telecommuting.  So, the teacher resigned.  Where’s the union at you may ask?  Although the work environment for educators has unforeseeable events, it creates the perfect opportunity to review your 403B or TSA retirement account.

Depending on if you leave the school district or not will be a question you need to ask yourself.  The only time a 403B can be rolled over to an IRA is if you leave your employer which is the school district.  Keep in mind you can get a job in another school district and roll over the account.

The next step you need to determine is if you have a regular 403B or a Tax Sheltered Annuity (TSA).  Typically TSA’s will have higher fees such as surrender charges and Mortality Expense (ME) fees.  Surrender charge fees vary on each contract and need to be looked at.  Also, there’s a mortality expense fee (ME) which is a fee paid to the insurance company for the risk they take.  Depending on any surrender charges will be a factor if you will be penalized now vs. risk the opportunity cost of reinvesting in the current environment.  Each individual is different.

Once you determine that you want to rollover your 403B, you have a wealth of choices to choose from.  This is also a perfect time to review your pension.  Keep in mind you will want to speak with a fiduciary like myself with transparency on business practice, fees, and client interest.

You can setup a free consultation HERE.

Copyright © 2020 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.





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