Who Owns Stocks & Mutual Funds

 

First Date Finances

 

1^ST DATE FINANCES — (a sweet story)

 

One of my favorite things about the work I do is the privilege of 

getting to hear stories like this one from a couple who I have grown 

to respect and admire over many years.  Hope you enjoy this piece 

of real life here in OKC. 

 

“Have I told you about our first date?” Mr. B. asked me (his financial advisor) 

while his wife was out of the room for a moment.  “No, I’ve not heard.”  

I replied with an eager tone. 

 

“For our first date we went to a nice Italian place, had a pleasant 

meal and conversation, and I got up to pay the bill.  While fiddling with 

my wallet, my date walked up and asked—“are you having issues with 

your credit card?”—to which I replied, NO.  I am trying to find my 2 for 1 coupon.”

 

“Her positive response is part of why we have such a happy marriage 

after decades of life together.”

 

Troy

 

Living Comfortably in Oklahoma

 

ID Theft

 

Credit Freeze - On Repeat

Food Inflation Perspective

 

To read the chart:

Red lines and numbers on the left axis are the number of hours/week people work to purchase a week of groceries.

Black lines and numbers on the right axis and the bars are Food Inflation

Green lines show the President in charge and Pre-Covid vs Post Covid time periods.

 

What does all of this mean?

1. Covid clearly caused food prices to go up.
2. Food affordability actually improved since 2015.  4.2 hours/week in 2015—3.6 hours/week in 2024
3. Food inflation started under Trump during Covid and is now below where he ended, and affordability is still well below the 2015-19 average.
4. YES—food is more expensive.  BUT—we have more money to spend on it and more time to go to restaurants (my opinion based upon experience lately.)

 

What I hear on the news most days is not what these charts are saying.  Back in the 80’s when I took Dale Carnegie training, he taught a 3-step process for solving problems.  His main point was that identifying the PROBLEM is harder than you think. 

1. Identify the problem.
2. Possible solutions.
3. Best possible solution.

 

Well, FOOD INFLATION, according to these charts, is NOT the problem.  In my opinion, National Debt and Deficits, getting Wall Street influence out of Washington, fixing our immigration system which is essential to our success and has been a problem for 40+ years—these are the issues, that if addressed correctly, will improve our chances of continuing the America we know and love, which currently is one of the best economies in the world—and at least part of why we have an illegal immigration problem.  Have you ever heard of anyone immigrating to Russia, Hungary, China, or North Korea?  Nor have I. 

Positive Feedback Loop

 

Estate Plan for Regular Folks

 

 

If you don't have an estate plan in place, create one now. 
Right now.

You see, an estate plan isn't just for the super-rich.

Thanks to today's ultra-generous $12.92 million exemption for singles, or effectively $25.84 million for married couples, you may have ignored an estate plan. (BTW—this generous number is set to expire at the end of 2025-- and go to who knows what.)

 

Here are five facts well 
worth remembering.

1. Even if you're not exposed to the federal estate tax, you still need to plan for the distribution of your assets and the guardianship of your minor children.

2. Having a will ensures that your wishes are respected and legally enforced after your death.

 3. A living trust can help your beneficiaries avoid probate, which can be a costly and time-consuming process—especially if you have property in more than one state. 

4. Keeping your beneficiary designations up to date, on things like IRA, 401K, and insurance policies, takes precedence over wills and living trusts when your assets are distributed.

5. Wills and living trusts alone, do not minimize federal estate tax or state death taxes.

Additionally, if you have children who have reached age 18 or above, then encourage them to give mom and dad powers of attorney for health and financial.  This will authorize you to help the young adults, if need be, without a bunch of hassle.  

We have given away many copies of FIVE WISHES which is a legal document form which works great for young people and those in the process of figuring out their estate plans. There is also a standard form on the Oklahoma Bar Association website for Power of Attorney and Living Will which many have used as well.  Ask us about this next time we meet if you have someone in your life who could benefit. 

Spending Habits Research

   ** All written content is for information purposes only. Material presented is believed to be from reliable sources. No representations are made by our firm as to another parties’ informational accuracy or completeness.  All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. **

SWEET Potatoes may be the death of our healthcare system

Recently my dad has been in the hospital dealing with pneumonia and other issues related to not handling anesthesia very well.  However, after he was making an impressive comeback, he woke up with pain in his abdomen.  The doctors jumped in to action and ran a cat scan and x-rays 

The Wealth of a Nation

Adam Smith is often referred to as the father of modern capitalist economics. He was known to have said--"the decisions of individual owners to use their capital for their own gain, and of purchasers to buy for their own interests, would somehow be guided by an "invisible hand" to produce the greatest overall prosperity of society."
That was back in the day when money represented HUMAN productivity.  Needless to say our world financial systems have diverged from such a practical  measure.  Below is a clip from a piece that struck me as interesting, challenging and on some level bothersome.

MAKE HAY WHILE THE SUN SHINES

 Jim Rhone is an old school motivational speaker who talked about life in the seasons of a farmer.  In the winter you prepare for summer and in the summer you "make hay while the sun shines".  The hay is for putting back for times when the harvest is non-existent or less bountiful.  Certainly now, in Oklahoma at least,  we have bountiful supplies of water and it might be a great time to re-visit the "Comprehensive Water Plan" created a couple of years ago by the Oklahoma Water Resources Board. 
In contrast this morning at breakfast an attorney mentioned having just attended a seminar on WATER RIGHTS.  

How To Easily Pay Down Debt

Whether in the global economy or your personal economy the picture shown here is true.  We as Certified Financial Planner Practitioners (tm) are regularly asked to make recommendations regarding college savings.  We also see student debt as liabilities for some clients years after entering the workplace.  It occurred to me how college debt could be compared to government debt as an example of how income growth makes paying down debt SO much easier.

Why Mandatory Social Security Makes Sense

NO--that is not a picture of the neighborhood in which I live.  However, a few years back I was blessed (read tormented) to serve as president of a neighborhood with 1600 or so homes that did not have a mandatory homeowner's association (HOA).  This neighborhood is very nice but only about half of the homeowners choose to pay the voluntary dues ($300/yr) that pay for common area  maintenance, security patrol and regular events.

Whose Money Is It Anyway?

In the past few years Credit Unions have offered interest rates on savings that are quite compelling.  HOWEVER,  hoops abound through which one must jump in order to achieve these higher rates.  Below is an annual notice regarding some of the hoops and "costs" of the good interest rate shell game  

Disability "Insurance"--the REAL Thing

In the dental business--according to insurance companies--the number one cause of disability insurance claims is due to neck and back issues. Just imagine that you spend your entire day seated and leaning over a patient with at least a little tension in the room;-)  That seems like a prescription for some sort of physical therapy to counter the long-term potentially negative effects.  However, in my 33 years in business the most common solution is to buy disability insurance--which is more expensive than ever and not nearly as good as it used to be.  Recently, a dentist client asked 

Lipstick on a Pig

Two stories recently have converged to make me wonder about a couple of the biggest financial decisions people make.  This morning CNBC reported that 4 of the worst cars in crash tests were Jeep and Dodge. (Chrysler/Fiat products)  The reporter went on to say that in the last few years the Jeep specifically was reported as unreliable, had poor owner satisfaction, and bad crash tests BUT--sales are up 21% in the past year due to pretty design.  

Last week a local builder told me about a neighborhood, in which they are building, where the smaller more energy efficient homes are not selling nearly as well as the larger less efficient but "fancier" ones.  Hence his motivation to build more of the latter rather than the former. (BTW--the builder has a more efficiently built home for his personal use.)  

Years ago I considered building a house but only wanted it to be on the smaller size allowed for the area. After meeting with an architect and building designer it became clear that the only way to make the project make sense on a COST PER FOOT basis was to build a multi-level house with more "cheap" square footage to average down the cost.  For me the project never made sense and so it never happened.  

Maybe I just don't get it OR maybe the explanation resides in another report recently showing that the sales of SPIRITS are up dramatically in the past few years.  That along with the burgeoning business of marijuana and SHAZAM--it's starting to make sense;-)

You know the age old FRAM oil filter commercial--"pay me now or pay me later"--it certainly applies to housing and vehicles in today's world.

What's Your Motivation?

In January ATT--the original Ma Bell--lowered their expected return on pension fund assets to 4.3% from a previous 5%.  They also increased life expectancy for retirees to accommodate current longevity trends.  RESULT--over $8 Billion dollar charge to their financial statements for the increased cost in funding the pension plan.  (BTW--Auntie is 105 and has been on an ATT pension since she was 55.)  

Below is a clip from the most recent valuation of the Oklahoma Teachers Retirement System Pension Plan (OTRS):

Dying With Class and Leaking Oil

If everything goes as planned and you have a chance to do something like this at the end of life--WOW--what a way to go.  We have witnessed many families beautiful endings with loved ones.  If you choose to click on the video link below then you can see one families story.

Upside Down Oil Wells

Every now and then you see a simple picture that fills in a lot of blanks.  The link below is a graphic representation of how North Dakota would look if the oil wells ACTUALLY drilled in the state were above ground instead of below.  

Makes me wonder what the plan is when the wells are fully depleted. Otherwise it is quite an impressive visual of what is below the ground.


http://www.nytimes.com/interactive/2014/11/24/upshot/nd-oil-well-illustration.html

Interest--ing Global Bond Yields

• In the first transactions of this kind, BoJ purchased Japanese government bonds (JGBs) from banks at a negative interest rate.

• Earlier Thursday, the yield on Germany's two-year bond actually went negative, touching -0.004%. In other words, investors are effectively paying the German government to hold their money.

• The yield on the 5 year TIP (US treasury inflation protected security) on 10-22-14 was -.04%.

• At its September 30th meeting, the Reserve Bank of India left the repo rate on hold at 8 percent, waiting for more evidence that inflation rate is slowing. 

Three of the top 5 economies in world have recently had bonds with negative yields.  This is more like the days of old when people were charged DEMURRAGE fees for storing their excess crops--which would equate to savings and investments today.  It was also at this time when some of the most fantastic European buildings were built and which continue to create value to the local communities hundreds of years later.

I wonder what these long term projects would look like in today's quarter-to-quarter markets?