A perspective based in trust, not transactions

Thought Leadership from our Financial Experts

Truxton Trust offers sound financial advice and perspectives to help you navigate through your greater financial world, from experienced people you can trust. Explore our insights to see how we think.

The Buttonwood Blues

Mitch Van Zelfden, CFA

The headline of the Wall Street Journal article framed on my wall reads: “Stocks Plunge 508.32 Amid Panicky Selling.” It is dated October 20, 1987 and, as many of you might have guessed, describes the events of and investor reaction to Black Monday, which saw the largest single-day percent price decline in U.S. market history. Nearly 40 years old, the newspaper appears stressed, worn and jaded – probably emblematic of investors’ faces and attitudes on that infamous day. But, it is an eternal reminder that stock price drawdowns—however large in scale and scope and regardless of rationale—are inevitable during all investors’ timelines.

Tax Law Provisions (Part II): Don’t Let the Sun Go Down

Buck Patton, CFP®, CPWA®

A recent piece by my colleague Peter Deming presented the changes coming after December 31, 2025, when the Tax Cuts and Job Act (TCJA) “sunsets.” In this Part Two, I detail several strategies clients should consider for taking advantage of the higher estate and gift tax (aka transfer tax) exemptions before they are halved at the end of 2025.

Tax Law Provisions: Riding Off into the Sunset?

Peter E. Deming, CPA

In less than two years, a host of taxpayer friendly provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are to expire or “sunset”, leaving many high-net-worth and/or high-income earning individuals and families potentially surprised by larger income tax and estate tax liabilities. Congress could act to extend or make permanent many of these provisions, but as the political landscape seemingly continues along a path of divisiveness and laws are passed closer and closer to deadlines, you should not wait to start planning.

Don't Let the Market Knock You Out

Mitch Van Zelfden, CFA

Being an investor sometimes feels like being in a boxing match. The stock market’s seemingly endless volatility of “up big one day and down big the next” is like “jabs” to the head and “gut punches” to the stomach. The volatility can be mentally exhausting. And, after a while, it could make one want to give up and pull out entirely, just like Roberto Duran did when he evidently uttered the now-famous capitulatory phrase “no más” after being pounded for eight rounds by Sugar Ray Leonard’s speedy right-left jab combination in the 1980 Welterweight Championship. However, we believe long-term investors should never cry “no más.”

The Social Security Cliff Is Coming

Social Security’s trust fund is projected to be exhausted in 2034, only ten years from now. As a 64-year-old, this gets my attention! After the fund disappears, Social Security will still receive the funds from current year taxation of wages, an amount that the government predicts will cover about 80% of benefits. Truxton’s older clients have income beyond Social Security (SS) benefits. But Social Security payments form a base. Budget and demographic issues will force some changes in the program over the next 25 years. The changes may affect affluent and wealthy recipients more than lower income seniors as Congress considers how to allocate the inevitable pain. One concept is “means testing”: determining benefit reductions based on the financial status of the beneficiary. This seems superficially “fair.” Surely poorer seniors cannot afford to see their Social Security reduced since they have little or no other income.

End of the Year Planning

As the year comes to a close, there are a number of strategies available to better position your family for a financially successful New Year. Reviewing your accounts and investments with your trusted wealth advisors today can help you to make and save more money in 2024 and beyond.

Facing Some Difficult Facts

Miles T. Kirkland, CFA

The S&P 500 declined 3% in September due primarily to general acknowledgement that the Federal Reserve “the Fed” meant what it has been saying all along: rates will remain at (or slightly above) current levels for some time. The Fed has hiked interest rates from 0 to 5.5% in about 18 months to contain an unacceptably high inflation rate. While inflation has declined, we would characterize the progress as stubborn. Employment remains very strong with strong wage growth, a low rate of unemployment, and a growing labor force. The S&P 500 index has returned 12% year-to-date primarily on the strength of a small group of large cap technology stocks tied to artificial intelligence following the launch of ChatGPT. The rest of the market is sending mixed signals based on varying assessments of what is to come with rising energy prices, concerns about systemic risks from China’s debts and anticipation of the delayed fallout of higher interest rates.

Interest Rates Pummel Banks, Yet Truxton Remains Resilient

After a rough 2022, stock investors have experienced a modest recovery in 2023 through mid-July. The broad big-cap index, the S&P 500, has rallied 10% since we rang in the New Year. The gains have left out some sectors, however. Including ours: The Banks. We monitor an index with the symbol KRE, an index of regional banks, all far larger than Truxton, but below the size of the global giants. That index was down 17% in 2022 and is down a further 32% in 2023. This analysis leaves out dividends, but that won’t have eased the pain very much against these declines. Truxton shares have done far better but remain below all-time highs. TRUX started 2022 at $64 per share and closed today at $59. Now, you’ve received over $2.14 in dividends during that period, but the stock is still below the highs. What has the investor base so grouchy about banks?

It's Always Something

Mitch Van Zelfden, CFA

Many of you may remember Saturday Night Live’s Roseanne Roseannadanna, the program’s Weekend Update reporter that opined on current issues and questions, only for her monologue to morph into a comedic rant about another topic, typically a problem or inconvenience, that had little, if anything, to do with the original issue. When pressed by the anchor for the rationale behind her tangent, Roseannadanna would reply: “It’s Always Something. If it’s not one thing, it’s another.”

Estate Planning with Revocable Trusts

Buck Patton, CFP®, CPWA®

Estate planning should be a foundational aspect of a person’s financial life and wellness. The traditional approach to delineating one’s final wishes and dispositive plan is to build and execute a Last Will and Testament. And while everyone needs a will, there is an alternative approach known as the revocable trust that includes one’s dispositive wishes – how your “stuff” flows after you die – to heirs, to charity, or elsewhere, whether in trust, or outright.

Tax Payment Strategies: Safe Harbors

Peter E. Deming, CPA

Making payments to the government is perhaps the most unattractive thing we do and advise our clients about, however, careful planning and timely payments are more important now than ever.

529 Plans: More than Education Savings for Wealthy Families

Buck Patton, CFP®, CPWA®

You may have noticed Congress passed a new bill dubbed “SECURE Act 2.0”, and, over the last month, many outlets have begun unpacking the legislation, doling out articles covering the many facets of the new retirement plan rules. One provision that has garnered a lot of attention is the new option to rollover unused 529 funds to a Roth IRA for the benefit of the 529 plan beneficiary. While this provision is helpful for some families who wish to kick-start their child’s retirement savings, it does come with a list of prerequisites that must be met. Since 529 plans are having their spotlight moment right now, I want to shed more light on just how robust these vehicles can be for wealthy families.