ViewPoint – A Message from the Desk of Tom Wilkins
“Why should anyone hire Trust Company of Oklahoma to serve as corporate trustee and invest the assets if a family member can do it for free?” she asked me. Here’s what I responded.
Retirement Planning articles
Playing Hoops With the IRS
Are you a small business owner or investor? Please meet Qualified Business Income (QBI) deduction.
Happy Birthday, Batman!
Batman, the first comic strip trust fund baby, turns 80 today. What lessons can we draw from the Dark Knight?
My Aunt’s Close Call – Bob’s Market Observations
Luckily, one day, Bob discovered that a beneficiary document his aunt signed could put her estate plan at risk of entering the troubled probate waters.
2019 Taxes Cheat Sheet
Easily find out how much you owe the IRS on income taxes, long-term investment capital gains taxes, or trust taxes. A printable cheat sheet to keep on your desk.
Jobs of the Future – Bob’s Market Observations
“Many jobs in the future aren’t even in existence today.” Are we unprepared for what’s coming? Read more.
Alzheimer’s and Dementia Patients Are Easy Prey For Scammers
Each day, Alzheimer’s or dementia patients are at a high risk of being financially exploited. Learn how to spot it and how to prevent it.
“Drill, Baby, Drill”
The oil and gas market has been a rollercoaster. Oil barrels reached the $75 price range then dropped again. What does 2019 hold for the energy industry?
The Return of Volatility
It was a challenging year for investors. We wrapped up 2018 with a second 10% correction for the year. What’s driving investor anxiety and how does 2019 look like for the markets?
New Year’s Day Reflection- Bob’s Market Observations
We ended 2018 with high volatility, but McCormick is optimistic our investments will be better off soon. It’s not shaping up to be a straight line though.
Cracking The Medicare Code
What You Need To Know Before Signing Up for Medical Coverage.
How to Survive A Bear Market – Bob McCormick’s Market Observations
The recent market volatility got many investors in a panic. Again. What’s the best strategy to live through a bear market?
Market Observations – October 2018
I’ve recently crossed the Southwest towards California, and one of my favorite parts of the trip was driving by the trains transporting goods to and from the West coast, a statement of the power of rail road transportation and our economy. As for investments, September brought record highs for large-cap U.S. stocks. Read more.
Qualified Charitable Distribution
Maximize your charitable gifts while saving on Medicare, income taxes and Social Security. Learn how making contributions directly from your Individual Retirement Account (IRA) can be good for the nonprofit and for your pocket.
Tariffs And Raisins – Children Pick Up On The Darndest Things
The Trump administration recently imposed steep tariffs on several countries, including China. In retaliation, China imposed tariffs on American products. This isn’t the first time the U.S. grapples with competitive tariffs, though. Learn more about our country’s history of tariff conflicts and the current conflict’s impact on our economy.
Market Observations by Bob McCormick – September 2018
Market Observations by Bob McCormick – September 2018
Legendary singer and songwriter, Aretha Franklin died in August. Without a will. As a result, her assets are to be divided equally between her four sons per statute set by the state of Michigan. It is estimated her estate, including business interests and artistic work, is worth upwards of $80 million, so a really large estate tax also appears due. Proper estate planning would have possibly saved her family millions.
Ms. Franklin was also characterized as intensely private. How ironic then that her death without an estate plan makes her finances very public for the whole world to see. Plus, if there is litigation due to the absence of planning, the settlement could drag on for years and cost a lot of money.
Dying intestate (without a will) may be fine for some people.* Yet, the need for an estate plan usually gets stronger as we age, marry, have children, become blended families and grow our wealth. I am not going to delve into the affliction PRD-itis** (Procrastination, Rationalization, Denial), but why is it so hard for some of us to do the important planning when it comes the time?
Here are a few of the more common reasons we have heard over the years that cause inaction:
- My assets are held in joint tenancy with my spouse and in accounts with specified beneficiary designations. This may work out for some couples, at least for the spouse who dies first, and if both spouses are competent.
- My spouse and I cannot agree on a plan. This is a big hurdle so it’s definitely time to get real-world guidance from an estate planning professional so that you can try to find common ground.
- I am not sure who to leave my estate to. Remember, if you don’t decide, the state has already decided for you. Make sure you are fine with its formulas.
- I am having difficulty how best to address the need to treat one or more children differently. It is a fact of life that not all kids are ready for wealth at the same time or same age. Professionals can help design estate plans to handle all sorts of family needs and dynamics.
- I don’t want to incur big attorney fees. This may be a case of penny wise, pound foolish. You should be able to get the legal services you need at a fair price. Some estates need complex (read expensive) planning while many others do not.
- “I can ignore it since I’m not going to die right away.” “It’s too depressing.” “I don’t like to think about it.” “I haven’t had time.” “I don’t care – I will be dead.” Ok, these are not valid reasons but cases of PRD-itis. Sometimes the person suffers from a severe case and just says “I’m not going to die.” This last one has a really poor track record.
The importance of wills and estate planning cannot be stressed enough.
I don’t know why Ms. Franklin didn’t have even a will, much less a trust to keep her estate transfer private. And she appears to have been a prime candidate for more comprehensive planning to reduce estate taxes and protect assets from illegitimate heirs and other “hanger-on’ers“. Maybe she struggled with some of the same issues many of us have. Yet, the right planning will not only put our own minds at ease but make our family’s life less stressful.***
*I am not an attorney so nothing I say should be confused with legal advice.
**I made this ailment up.
***Other parts of an estate plan often include a power of attorney and an advance health care directive. These are two big items that help your family handle matters when you are alive but are unable to act or decide on your own.
Robert A. McCormick, CFA, CAIA
Senior Executive Vice President & COO
(918) 744-0553
Bob.McCormick@TrustOk.com
Market Observations by Bob McCormick – August 2018
Market Observations by Bob McCormick – September 2018
It takes:
• 3 seconds for a cheetah to go from zero to sixty;
• Less than 1 second for an Indy 500 car to travel the length of a football field;
• Less than ½ second for a baseball to travel 60 feet, 6 inches from the pitcher’s mound to home plate at 100 mph.
I thought about the speed of things when I read that high heat and humidity in New Jersey last month was slowing down radio waves that were transmitting trade data between Nasdaq’s center in Carteret to the New York Stock Exchange’s facility in Mahwah. That’s about 27 miles as the crow flies. The 90-degree heat combined with 60 percent humidity caused the data to be delayed by about 8 microseconds.
A microsecond is one-millionth of a second. Sum up about 350,000 microseconds and you have the time it takes the average person to blink, so 8 of these is still pretty darn fast in my book.
What would the founders of the NYSE think of this as they signed the agreement under the shade of a buttonwood tree forming the exchange on May 17, 1792?
It is astounding this delay makes a difference for some investors. Not for us, mere mortals, but for computer-driven, high-frequency trading (HFT) firms the delay was noticeable – and newsworthy. Hundreds of millions of dollars were spent in 2010 on building just one fiber optics line from Chicago to New York in order to increase one-way speeds by about 3 milliseconds (3,000ths of a second) – over 300 times faster than it takes to blink. Since then, at least two competing microwave networks have been built to increase speeds by even a few more milliseconds between these two cities. Big bucks spent for minuscule, but profitable, time improvements.
Consider these speeds the next time you are sitting around in your pajamas day-trading on your laptop, trying to take advantage of the tiny little blips in stock prices that occur throughout the day. It’s not just some big powerful machine you are competing with. It is the near speed of light trading you are racing against. May the force, and very fast fingers, be with you.
Cheers,
Bob
Robert A. McCormick, CFA, CAIA
Senior Executive Vice President & COO
(918) 744-0553
Bob.McCormick@TrustOk.com
The Certainty of Taxes in Retirement
Many retirees mistakenly believe that once they retire they won’t have to pay taxes anymore. Your retirement success depends on planning carefully your income and taxes. Read article.
Market Observations – July 2018
Corporate earnings are growing at a double-digit rate, yet halfway through the year the S&P 500 posted a meager 2.6% return. Read Bob’s investment market commentary.
Catching Up with Your Retirement Savings
Most Americans don’t have enough saved for retirement. Is your nest eggs not where it should be? Are you not maxing out your 401(k) contributions? Don’t panic. There’s still time to catch up with a few strategies and enjoy financial peace of mind soon.
Decrypting the Bitcoin Bubble
The cryptocurrency’s meteoric rise in 2017 had the investment community in awe. Today, the Bitcoin phenomenon has turned into a bloodbath. Investors’ confidence is gone. Read an interview with Senior Vice President Michael Abboud about Bitcoin’s rise and fall.
Tax Reform: How It Affects You
Congress recently passed the largest piece of tax reform legislation in more than three decades. The bill affects most taxpayers. One area is the ability to deduct charitable contributions. Vice President Emily Crain broke it down to what you need to know.
Market Observations – June 2018
A lot of factors impact economic growth, and demographics are certainly one of them. The government just released the 2017 births report, and the findings show a 30-year low in the number of births and a large increase in deaths for age group 25-34. Read Bob’s commentary.
Top 5 Retirement Planning Mistakes
Along with getting married and having kids, retiring is one of the most serious decisions you will make in life. If you plan carefully, your retirement years can be filled with joy and financial independence. But the alternative can lead you to serious financial problems. Here are our top 5 retirement planning mistakes to avoid in order to achieve a successful retirement.
Why You Might Want Both a Traditional 401(k) and a Roth
Planning for retirement involves balancing what you’re willing to set aside now with what you’ll pay in taxes while in retirement. Splitting your retirement savings between a traditional 401(k) and a Roth 401(k) — or IRA — is sound planning.
Taking Shortcuts on Retirement
Deciding when to retire is a very important financial decision. Some choose to retire later in life.
Let’s Get Personal
Ensuring future generations respect your values, intentions and hard-earned savings.
Overcoming The Emotion of Family Properties
Family legacy properties are extremely emotional assets. The feelings triggered by the thought of parting with the family farm, lake cabin or beach house can become the cause of tension among family members.
Retirement Income Planning: Escaping from the Daily Grind
Odds are you too have invested far more time than necessary researching some banal household purchase. But if you are nearing your retirement or are already in the midst of it, how much time have you have considered your income strategy in retirement? Was it more or less than the time spent on your last Amazon.com purchase?
The Dangers of Senior Isolation
Old age “ain’t for sissies.” There is some truth to that.
Roth Rules
How to Make a Roth Work for You
Whatever it Takes?
U.S. stocks were up modestly the first half of the year. The trip was anything but calm. A sharp drop early in the year was followed by a rally moving in tandem with higher oil prices.
A Better 401(k)
Learn to Love the Pullbacks
Dangerous Words
There are five words investors should always use with caution: “It is different this time”. In this article Bob suggests two unusual suspects which may explain why “different” may be happening now.
Taxes & Scams, Ham & Eggs
Tax season is unnerving enough without scammers preying on you. In this article, Bob shares the latest scam to be wary of.
It’s Better To Be Safe Than Sorry
David Stanley offers some helpful questions that we should be asking our financial advisors.
All Eyes On The Fed
Jim Arens discusses what the new year might hold for both stocks and bonds and whether the strong stock returns of 2013 are likely to continue.
Don’t Let Your Digital Assets Evaporate Into the Cloud
In this article, Melissa Taylor sheds light on a subject that has never crossed the minds of many, Digital Assets & Estate Planning.
Just How Safe Are Bonds?
In this article, Zac Reynolds shares his insights on the market and the safety of Bonds.
Fees Matter
In Debi Combs article, Fees Matter, she explains the importance of knowing what fees are being charged in your 401(k) plan and how those fees can effect your bottom line at retirement.
A Legacy of Wealth and Purpose
In Jamie O’Shields article, A Legacy of Wealth and Purpose, she provides helpful tips on how to make sure your family legacy is carried on… long after you are gone.
Tough Love
In his article, Tough Love, Bob McCormick shares his thoughts on how the possible change in Federal Reserve policy may affect interest rates and the stock market.
Why Establish a Trust?
In this article, Jean Kates shares her perspective, as a rancher’s daughter, on why establishing a trust is so important.
Are Your Assets Protected?
In this article, Michael Hairston discusses a variety of asset protection options to consider in this uncertain world.
Can Stocks Stay “In The Zone”?
With a strong first quarter for stocks, Cameron Turner explains the reasons and offers his thoughts as to what the future might bring.
Retire On Time
Don’t miss Paul Giehm’s timely article on four important principles.
Is Free Market Capitalism Fair?
“Success is not final, failure is not fatal: it is the courage to continue that counts.”
It’s All About Medicare
With the dawn of 2013, Jim Arens shares his thoughts on what the upcoming year may hold for the investment community and more importantly, for you.
Making Cents
In the December 2012 issue of Tulsa People
So You Think You’re Rational?
Cameron Turner’s article poses three questions to help you determine if you are a rational investor.
How Do You Spell Taxmeggedon?
Joanna Murphy describes the impact of these changes as they relate to investments and estate planning.
Avoiding A Fall Off The Fiscal Cliff
With the presidential election only a month away, the “fiscal cliff” looming at the end of this year, and the potential for significant increases in taxes beginning next year, investors are focusing on what might happen and what they should do about it.
The Retirement Myth
Two popular yet contradictory mindsets in modern culture say that you should love what you do and that you should strive to stop doing it as early as possible.
Well, Shake It Up, Baby, Now… Twist & Shout
It’s July, which typically means summer vacation! However, that’s not the case for the Federal Reserve, as Corey Redington discusses the impact on investors of the Fed’s continuation of Operation Twist announced in June.
Preventing Exploitation of Elders
Jennifer May discusses a topic we all hope to never experience but need to be made aware of. Elder exploitation is no joke. Learn how to arm yourself and your loved ones.
IRAs: Why, When & How Often
Karen Ellis provides important guidance on when to withdraw funds from your IRA. While withdrawal may seem like an easy task, you may find yourself paying more in taxes than necessary.
Yes, We Can!
David Stanley clears up a common misconception some individuals have when they hear the name “Trust Company of Oklahoma.”
Family Wealth Preservation Trust
Protecting your assets from creditors may not be the first thing you think about when you wake up but all too often, people do not think about it at all until it is too late. Fortunately, in Oklahoma we have an attractive asset protection vehicle called the Oklahoma Family Wealth Preservation Trust (FWPT) that can help Oklahoma residents and non-residents alike. Read Lesa Creveling’s insightful article (originally published June 2006) on the benefits of this asset protection trust, its tax treatment and how it works in relation to federal bankruptcy law.
The Road to Trustee Hell is Paved with Good Intentions
Joanna Murphy discusses the challenges individuals face when serving as a trustee or as an executor of an estate. Being a fiduciary carries a tremendous amount of responsibility ranging from detailed record keeping to bill paying, from tax returns to investments. But don’t despair – Joanna also shares how having a corporate trustee such as Trust Company of Oklahoma can help ease the burden when filling this role, especially for friends and family.
Prosperity with a Purpose
Is there a purpose for your prosperity? In other words, what are you trying to accomplish with your wealth?
Planning & Caring for Children with Special Needs
Parents of children with disabilities are often faced with the challenge of providing a level of care most families never experience.
What About My Retirement?
When I retire, I plan to travel to exotic places, spoil the grandkids I hope to have someday and spend lots of time on the beach. I know these dreams won’t come true without some wise decisions on my part–many of which have to do with my retirement plan.
The Unknown Certainty of Taxes
As the old saying goes, nothing in life is certain but Death and Taxes.
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