Retirement Wealth Pro

I work with a ton of folks who are investing money in a 401K every month.

The challenge is that before they met with me, they were having to manage that money by themselves.

Unless you are following markets daily, have a rotation strategy, and know when to be in and when to be out, it becomes very difficult to know if you are making decisions with all the critical facts.

To solve this, I use a tool called the 401K optimizer. This is like having a personal money manager working full time on your behalf every day.

The program will help you choose which investments in your retirement plan are the most optimal for your risk tolerance, and will tell you exactly what percentages should be in each fund.

Then, quarterly, you will receive an email updating you on the status of the markets, trends, and ultimately, if you need to make any changes to the strategy.

In years like 2008, we used the Optimizer to help our clients cycle to cash before the crash, then cycle back into equities as the market rebounded in March of 2009.

There is no rule in the investment world that says you have to lose 50% of your money just to make some money.

If you have questions or would like to sign up, DM me, or go to this link to register. The cost is nominal.

You can register here:

www.401koptimizer.com >Howard Capital Management 401(k) Optimizer

This is something that I see in many portfolios.

Target date funds are designed to be "safer" as one gets closer to retirement.

In reality, their are severe flaws with the structure and theory behind these types of investments.

As this article states, when the market cycles downward, the challenge is taking money from a portfolio that is losing in value.

Ask a retiree in 2007 if it was easy to make up a 50% loss they took in 2008.

Mathematically this is very difficult. If you have target date funds in your portfolio it may be time to rethink the strategy.

Target-date fund design may be wrong for retirees Researchers suggest the funds don't adequately hedge against sequence-of-returns risk in retirement.

It will be interesting to see if this becomes law.

As of right now Required Minimum Distributions are mandatory at age 70 1/2 for qualified plans.

If this passes that will be moved up to 72. Here is a good breakdown of the provisions of the proposed new law:

House passes bipartisan retirement bill—here's what it would mean for you if it becomes law On Thursday, the House of Representatives passed the Secure Act, a bill that aims to improve the nation's retirement system. The changes would be the most significant to retirement plans in over a decade.

Interest rates in the world are still at 5,000 year lows.

In the EU interest rates are actually negative. Meaning, you pay THEM to hold your money.

Our Fed chief Jerome Powell has said that they will not raise interest rates anymore this year for fear of slowing growth.

Does that sound like things are strong? That Europe can't make it at 0% interest rates and the United States struggles at 2.5?

But turn it on CNBC and every pundit is telling us that America is stronger than ever. Numbers don't lie in this sense.

As of 2 days ago, the 3 month bill and the 10 year bill were had something like a 10 basis point spread..this is super important.

When the premium for money you lend over 3 months is equal to what you would get for 10 years, that's a problem.

That means the market is telling us they value you holding that cash over investing it.

This is also known as "inversion" (when the short term is paying more than long term) and has been a reliable indicator of a recession for the last 50 years.

While it doesn't mean one is eminent, recession follows inversion by 5-19 months.

This also doesn't mean it's time to hoard cash.

Keep enough to be able to make moves but most of the indicators I follow tell me we have one more leg up with equities before the next major crash.

Then the real fun will begin.

Never forget...

For those of you that are parents and actually care that your child understands money and how an economy truly functions...

Get this book and read it as a bedtime story. It will teach them better than an economics degree today at most any college. Literally.