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It’s Not Too Late To Build A Fence When The Cows Are Out

Estate planning and asset protection are really nothing more than building and maintaining fences. A successful plan keeps the cows (assets) in and the wolves (creditors) out.

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.

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

Our Commitment

We opened our doors for business over 37 years ago, not yesterday. We are not a start up, pressured for quick results. Read Joe Ray’s letter.

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.

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.

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.

Market Observations – May 2018

What are the lessons history taught us? Today’s headlines are troublesome, but a quick look at American history provides a healthy dose of perspective. Read Bob’s commentary on the market performance and social issues.

Is Estate Planning Now Dead?

When Instincts Are Wrong: Overcoming Behavioral Biases

One of the fascinating aspects of managing wealth for individuals is getting to watch the wide range of human emotions play out in real time.

Spotlight: Oklahoma Council on Economic Education

The Oklahoma Council on Economic Education (OCEE) is dedicated to reaching every student in Oklahoma.

The Class of 2030 – Gearing Up For College Without Going Broke

According to some predictions, the estimate cost for my five-year-old to attend a four-year public university is around $175,000 and this is assuming he receives in-state tuition. A private college is expected to be closer to $475,000. Gulp!

Multi-Coping

Innovation Everywhere, Except in the Numbers

Spotlight: Big Brothers Big Sisters of Oklahoma

Big Brothers and Big Sisters provides children facing adversity with enduring, professionally supported one-to-one relationships that change their lives for the better, forever.

Get to Know Us – Rhonda Kerr

A closer look at one of our team members.

Short-Term Pain for Long-Term Gain

A close look at where the interest rates may be headed.

Spotlight: Coffee Bunker

In the field of military operations, a bunker is a place for respite and rest, a place to regroup and prepare to reengage.

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.

Predictably Unpredictable

What a predictable year it’s been.

January 2017 Viewpoint: A message from the desk of Tom Wilkins

A Message From the Desk of Tom Wilkins

Finding Meaning in the Noise

When I wrote in this space last October, stock market averages had fallen sharply in August and September and investors were fearful of further declines.

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.

Spotlight: Tulsa Habitat for Humanity

Since 1988, the nonprofit has worked with more than 350 families to realize their dream of homeownership.

Spotlight: Oklahoma Firefighter’s Burn Camp

Oklahoma Firefighters Burn Camp is a five-day summer camp that accepts children ages six to 16 who have suffered severe burn injuries or traumatic injuries causing scarring and disfigurements. It began in 1999 and is held every August at Dry Gulch USA, in Pryor, Okla. The camp is a place of unconditional love and acceptance, where scars do not limit future goals and successes.

Viewpoint: A message from the desk of Tom Wilkins

It’s always my pleasure to share our good news in Investment Perspectives, and this news usually comes in the form of new team members to serve you.

Introducing TCO Title Services

Trust Company of Oklahoma is proud to introduce TCO Title Services, LLC.

The Money Market Reform

The Securities Exchange Commission (SEC) has issued new rules for prime (nongovernment) money market funds. Learn how this affects your investments.

Establishing Trust, Step-By-Step

Creating a trust is a very important step in the estate planning process; but without funding the trust, there is no value to the trust document.

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.

Spotlight: Zero 2016 Tulsa

It is estimated that on a single night in January 2014, over 578,424 people in this country slept outside, in an emergency shelter or in a transitional housing program. This epidemic is not a distant statistic, it is right here in Tulsa. Approximately 6,500 individuals flow through our local shelters each year.

Tough Times for Oil Producers

Belt-tightening is taking place all across the oil and gas industry, impacting Oklahoma families.

A Tale of Two Halves

We were in the midst of March Madness when I realized the first quarter of 2016 was like a basketball game for the markets, comprised of two unique halves.

Spotlight: Tulsa Campaign to Prevent Teen Pregnancy

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.

The Real Deal?

Forget about the get rich quick schemes for a moment and read Scott’s level-headed advice about the pros and cons of owning real estate.

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.

HEMS To Live By

Joanna Murphy reviews how important language and communication are when it comes to estate planning.

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 Sunny Side of the Street

While most Oklahomans are hoping for a little rain, it’s a safe bet that no one wants it to start raining on the real estate market’s slow and steady recovery.

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.

The Sword of Damocles: Funding the Living Trust

Jamie O’Shields writes about unfunded living trusts and the dangers of staying in the hot seat.

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.

Q & A with Becky Frank

Becky Frank, Tulsa Metro Chamber Chairman & CEO of Schnake Turnbo Frank| PR recently visited with two
of Trust Company of Oklahoma’s portfolio managers, Michael Abboud and Cameron Turner, to get their perspective
and opinions on investments in the world today.

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.

Q & A – The Safety of your Money at TCO

(Originally published January 2009)

Yes, We Can!

David Stanley clears up a common misconception some individuals have when they hear the name “Trust Company of Oklahoma.”

It’s All About Europe… For Now

Jim Arens shares his thoughts on what investors can expect from the stock market in 2012.

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.

Double Dip – Ice Cream or the Economy?

Published in Investment Perspectives October 2011 issue.

Nation’s debt level must be addressed now

Published in the Tulsa World on August 18, 2011.

Is Inflation Back?

It depends on your outlook.

Prosperity with a Purpose

Is there a purpose for your prosperity? In other words, what are you trying to accomplish with your wealth?

The Oil & Gas Industry in Oklahoma

Many do not realize that gasoline accounts for less than one-half of the products made from a barrel of crude in the U.S

Kicking The Can

If there is one thing our Congress is good at, it is their ability to consistently kick the can…

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.

Geopolitical Events – Abroad and Here

Crises around the globe have consumed much of our attention as of late.

Tread Carefully in Naming a Trust as an IRA Beneficiary

The Path to Bringing Jobs Back Home

America must address currency manipulation and focus on exports so as to lessen our dependence on personal consumption and housing as sources of economic growth.

The Unknown Certainty of Taxes

As the old saying goes, nothing in life is certain but Death and Taxes.