BY: Harvie Roe
Argent Trust Oklahoma-Tulsa
“…in this world nothing can be said to be certain, except death and taxes.”
Benjamin Franklin, in a letter to Jean-Baptiste Le Roy (1789)
Let’s add a third item to Franklin’s short list of certainties—change.
The evidence is all around us.
Each week, we watch couples marry, families grow, and friends retire.
And every day, less dramatic changes—peeling paint, fast-growing lawns, expanding waistlines—remind us that life is dynamic, not static. Nothing is ever really “done.” Everything requires upkeep.
Including our financial lives.
An ongoing process—not a one-time project
Argent has been helping clients navigate the changes of life by offering three primary services:
- Financial planning
- Investment management
- Trust administration
There’s an obvious synergy between those activities. A good financial plan has to be implemented and managed. At some point, the fruit of all that labor gets transferred to the proper beneficiaries.
But again, because of the changing nature of life, these financial activities are never “one and done.” In the same way that one great workout at age 25 doesn’t give you fitness for life, a couple of helpful sessions with a financial advisor back in 2007 aren’t enough for success.
Once in place, financial plans require regular alterations. Investment strategies need careful adjustments. Estate documents should be updated periodically. This ongoing process ensures that your financial future remains secure and aligned with your goals.
The CEO of the volatile company
Years ago, we were approached by a man who’d become the CEO of a large, foreign-based company. Sensing tumultuous changes ahead, he charged us: “Figure out my lifestyle, the way I like it. Tell me how much I’ve got to put back and how to invest it. That way, if things get crazy, I can walk into the next board meeting and say, ‘I’m not putting up with this anymore. I’m through.’”
From that very specific goal, we created a financial plan and implemented certain investment strategies. Through repeated modifications—necessitated by multiple life changes—we helped this man get where he wanted to be. We’ve since been fortunate to serve as a financial guide to his entire extended family.
The first step is creating a plan. After that, adjustments are necessary whenever market conditions, U.S. tax policy, or clients’ lives or goals change.
When a client’s desires change
Sometimes, a client will tell us about an organization that is important to them. Often, it’s their church or university, a local charity, or a national nonprofit like the Red Cross, and they express the desire to support it more generously.
That’s when comprehensive planning is able to show the tax implications of an existing estate plan (or lack of a plan).
In one instance, we analyzed a couple’s finances and discovered they had large balances in their 401(k)s and IRAs. According to our projections, they were facing the prospect of seeing about 70% of that money eaten up by income and estate taxes.
We showed them how forming a private charitable foundation could allow them to fund their favorite charities forever.
They’d never seen their charitable options outlined so clearly. They were excited to involve their family in the process. While we addressed their estate tax issues, they formed a foundation. Through that process, they gave their children the opportunity to research and support worthwhile charities. Their goal was to raise the value of generosity in their family while benefiting charities using income off 100% of the funds transferred to the foundation.
These small changes will benefit countless people for a long, long time.
How dynamic is your financial plan?
Life is dynamic, not static. That means your financial plan needs to be dynamic too.
If you don’t yet have an estate plan, I urge you to make that change to your financial situation this week. If you do have a plan but haven’t looked at it in a while, make an appointment with an expert to review it…this week.
John Maxwell, a leading author on the subject leadership, wisely says, “Change is inevitable. Growth is optional.”
I would add, “A wise reaction to change makes growth inevitable.”
