Articles and Videos

Which Pension Payout Option Should You Take?
Lucia Capital Group Weekly

Which Pension Payout Option Should You Take?

September 26, 2019

If you’re one of the lucky people who own a pension, you may have noticed that it before you start receiving the payments, it will offer different payout amounts. Normally, if you are married, benefits have to be paid in the form of a “qualified joint and survivor annuity”. This annuity pays a certain dollar amount to you during your lifetime, usually monthly, with at least 50% of that amount continuing to your surviving spouse after you pass. People who want to maximize their monthly retirement income are often tempted to choose the higher-paying single-life annuity for exactly this reason, but many of them are also concerned about providing for their spouses after they die. So how do you solve this problem? One way to potentially do that is through what’s called a “Pension Maximization” technique.

The Risks, Rewards, and Who Should Own Preferred Stocks
Investing and Personal Finance

The Risks, Rewards, and Who Should Own Preferred Stocks

September 26, 2019

Preferred stocks are really designed to provide a steady income through dividend payments, and their yields tend to be higher than traditional fixed income investments.  For some people, this really adds to their appeal.  Most of them are traded on a stock exchange, so you may also see greater transparency with the price. However, there are some risks and potential rewards of owning preferred securities, along with the big question: how do you know if they’re suitable for YOU?
Repos: No, the Fed isn’t coming for your car—but it still could signal a problem
Market Commentary

Repos: No, the Fed isn’t coming for your car—but it still could signal a problem

September 18, 2019

This week the Fed has had to intervene several times in the cash markets to provide liquidity where buying demand dried up, Treasuries were oversupplied and consequently rates spiked. The so-called “Repo” operation, allows primary dealers to exchange collateral for cash, up to $75 billion worth each day. In this way, the Fed can keep short-term rates within its target range—an important part of implementing its monetary policy. Depending on the reporting source, overnight rates were said to have spiked to 8-10% at one point prior to Fed intervention.