Welcome to the bi-annual issue of COMPASS Magazine, an official publication of Compass Capital Management, LLC.
Spring is here and thus brings new opportunities for not only financial growth, but also, personal growth. Through this Spring issue of COMPASS Magazine, we hope you’ll feel inspired by the accumulation of articles to help educate you on your financial journey.
In this issue, you will find a range of articles designed to inform and inspire:
Estate Planning Spring Cleaning your Retirement College Savings for your children Schedule of client events, workshops and more!
We hope you continue to find valuable resources and inspiration through these pages. Our team is ready to help you find financial growth and security in this new year and will be there to assist as you SPRING FORWARD!
As we step into the spring season, we wanted to take this opportunity to express our sincere gratitude for your continued trust and partnership with our firm. Your support has been instrumental in our collective achievements and we are excited to embark on the next chapter together
This fresh start brings with it a wealth of potential for innovation, growth, and education We are committed to leveraging our expertise and continually seeking new ways to deliver even greater value and support to you in 2025.
We are particularly focused on ease of access to your financial information, helping you stay on track with your goals, and keeping you educated regarding new opportunities to put your savings to work for you We are working to consolidate access to your accounts, financial planning information and goal tracking for the coming year We will hold regular client training workshops to help you navigate your digital access more easily and utilize the software to its greatest potential Additionally, we will be hosting some fun and educational events this year, so you can have opportunities to pick the brain of some local experts in things like estate law and income tax We believe these service enhancements will further empower you to achieve your goals and navigate the evolving landscape of finance and retirement planning.
We are eager to hear your thoughts, ideas and feedback as we move forward Please don't hesitate to reach out to your dedicated Compass Capital Management team to discuss how we can best partner to achieve your aspirations in this year Wishing you a prosperous and fulfilling 2025
Sincerely,
Jimmy J Williams LeAnn Lewis CEO COO
This
fresh
Gettoknow Michelle Lowe
Director of First Impressions
Born and raised in Texas, Michelle raised two successful boys, Keen and Carter Glover, and has served in the mortgage and banking finance industry for over 25 years. She previously served clients within various positions from processor, to loan officer and concluded her career in banking as auditor before moving to Oklahoma in 2023.
As Compass Capital Management’s Director of First Impressions, Michelle is responsible for handling front office receptionist and administrative duties including greeting guests, handling company inquiries as well as performing customer service work in support of the staff
She currently resides in Wilburton with her husband Jacob and two youngest children Claire and Audrie.
When she’s not servicing clients within Compass Capital Mgt., Michelle is continuing training on the side while managing her bookkeeping role for a company in Texas
In her spare time, Michelle enjoys watching her step daughters Claire and Audrie cheer at school functions and attending cheer competitions with McAlester Stars throughout the year Her family enjoys playing games at home and also trying new restaurants, attending concerts, or supporting Thunder Basketball in Oklahoma City
We are delighted to have Michelle on our team and looking forward to the positive attributions she brings to our company!
COMPASS
15 Years of Excellence
Personalized Approach, and Unwavering Dedication
Compass Capital Management celebrated 15 years of dedicated service to clients during the open house and ribbon cutting event on September 27, 2024 Family, friends and clients alike celebrated Compass’s milestone and achievements thus far while continuing to look forward to the future. In addition to the celebration, Compass Capital team members led all attendees on a personal tour of the new office location at 215 E Choctaw, Suite 101 in McAlester, Oklahoma
This special occasion marked years of commitment to providing exceptional financial advisory services and innovative investment strategies Since our founding in 2009, Compass Capital Management has established itself as a leader in the financial sector
Our financial professionals are known for their personalized approach and unwavering dedication to client success Over the past 15 years, the firm has grown from a small advisory practice into a trusted partner for individuals and businesses seeking to navigate the complexities of financial planning and investment
“We are honored to work with families in and around Pittsburg County, ” CEO and Founder of Compass Capital Management, Jimmy Williams said “Our goal to develop a new location was a culmination of the vision we had for an efficient, modern office and the desire to continue serving our wonderful clients with greater levels of and new retirement planning services. We are proud to call McAlester, Oklahoma, our home. ”
MeetStell a
Get to know me!
What’s
Hi! My name is Stella and I am a 9 year old Maltese
my favorite treat?
My favorite snack is a little dollop of Cool Whip!
What’s my favorite way to play?
When I was just a young pup, my favorite game was tug-of-war Now, I prefer to enjoy my backyard where I typically get the “zoomies”!
Mommy says what makes me special is...
She was my first "Baby" before my son was born She would go everywhere with me! She been with me through all the good and bad times in my life since I was 20 years old She knows when I'm sad and she will stay by my side to comfort me. She's always happy to see me after I've gone even if its just for 5 minutes! She has a very special place in my heart Some people say she's just a dog but to me she's so much more!
Chief Comfort Officer
MEET OUR TEAM
Executive Assistant/ Cli t S ice Associate
Chief Operating Officer Chief Compliance Officer
WE’RE HAPPY TO HELP YOU REACH YOUR FINANCIAL GOALS Directorof FirstImpressions
Co-Owner Marketing Director
CEO / President
MICHELLE LOWE
ALEXANDRIA WILLIAMS
DENA WILLIAMS
JIMMY WILLIAMS
ANNA MCELHANY
JULIE HOKIT
LEANN LEWIS
COLLEGE COSTS AHEAD?
Author
Bill Good Marketing
A question I often get around this time of year is: I'm not saying that you need to start an education savings plan for any yet-to-be-born child, but the longer you allow for your money to compound and ride out any market ups and downs, the better.
When should I start saving for my kid's college fund?
The short answer is that you should get started as soon as possible
We all know that college is expensive Depending on the degree necessary and the chosen school, without scholarships, you could be looking at an annual cost of as high as $50 to $60 thousand It’s no wonder that as of the first quarter of 2023, Americans owe $1.78 trillion in student loan debt. That represents the second largest pile of total household debt – topped only by mortgages.
Consider this simplified example: Let's say that you want to have $25,000 available to help put a child through college once they turn 18 Let’s also shoot for a more aggressive average annualized return of 7% on your investments
HOW MUCH SHOULD YOU SAVE?
If you wait until your child is 10 years old to start saving, you'll need to set aside about $2,100 per year, or about $175 per month to meet your goal
But, if you start when they are born, you'll only need to set aside $669 each year,
or $56 per month in order to meet your $25,000 goal Of course, there’s no guarantee of performance as your results and needs may differ
Now as to HOW to save, there are many options
Many families choose to start a 529 plan, which will allow you to enjoy some tax advantages as you save Money contributed to a 529 savings plan can be used for tuition, room and board, and even to pay off student loans Even though these plans can only be used for education-related expenses, the beneficiary of this plan can be changed – from you to that new baby, or from your oldest that just got a full-ride scholarship to your youngest.
But there are other savings options You can also invest in eligible savings bonds, open a Coverdell Education savings account, or even use a Roth IRA Remember though, any one of these strategies do not outweigh the others Your choice will depend on your financial goals and timeline
If you want to start saving now, we can help you create a College Savings Plan that will meet the needs of your family. We’ll take many things into account, including, of course, the estimated cost of tuition with the expected increase by the time you’re filling out applications Just remember, the bottom line is that the sooner you start saving for college, the easier it will be to reach your goal
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IT’S THINK INVESTINGSpring Spring GREEN
Authors:
Julie Hokit, Associate Wealth Advisor and Jimmy Williams, CPA/PFS, CFP®
“ First, make certain to have good soil...“
Springtime brings renewal and opportunity for plants, flowers, and other ecological life The same could be said for individuals who may have not “blossomed” in their habits for saving for the future It is never too late to begin to plan for your future Similar to a plant or tree, think about your savings process as if you were planting your flower or vegetable garden We are not speaking of investing in green energy or other types of environmentally friendly stocks or bonds Rather, we desire to assist you in growing your assets for a future need in a manner that is prudent and practical, similar to that of growing your garden In the financial realm this means that you begin with sound investments
Consider the types of investments that you know and are comfortable with the associated risk of such investments Remember, to “grow” a bountiful harvest, you must allow time, nutrients, and water to help the plant grow to maturity
Growth affects financial investments in the same manner.
Start with a selection of a reasonable portfolio of well diversified investments and test your portfolio on paper for possible underlying risks and overlap of market sectors that may not be evident on the surface A good seed equals a potentially good harvest
www.compasscapitalmgt.com
Next... plant the seed for long-term growth
To invest in a manner that gives you the most probable means of success, start early in life One of my favorite quotes is by Albert Einstein, “The 8th Wonder of the World is compound interest He who understands it, earns it; he who does not understand it, pays for it ” The earlier in life one starts to save for the future, the less one may have to invest to reach the designated target Compound interest (and dividends reinvested) allowed to “grow” over a period of forty years or more will yield a significant amount to support your future
Another important step to growing any plant is to water appropriately and watch it grow .
One method of watering your “green” investments is to continue to contribute to the portfolio through your employer’s plan or an IRA These investments will grow without the impact of immediate taxation to allow for exponential opportunities in your future By dollar-cost averaging into an IRA or employer-provided retirement plan, you may purchase some of your investments at a lower-than-average cost By utilizing this method of funding your retirement account, you will achieve the lowest average cost over time in the same investment If inclement weather strikes your garden, you simply must allow the plant to become resilient in its strength and overcome the challenge of the environment, your portfolio will indeed suffer times of market contractions and expansions which will affect your value of the investments However, similar to a plant that is well cared for, you will see your portfolio persevere for a longer period of time by continuing to “water” it with contributions
Lastly, harvest time will come .
Either through time or the target level of growth desired, you will need to harvest your investments for use in your future Some of the fruit of the investments, called “dividends,” may be used to support your cashflow needs in retirement Other investments, like “growth stocks,” may need to be sold to realize your gains and utilize the proceeds for lifestyle needs By consistently investing, you may experience a bountiful harvest that allows you to live by your own design.
Planning for your future should include careful consideration of the current environment you find yourself Think about what you want to experience in the future and how you wish to live Invest in a portfolio that provides you with the projected income or growth to live where and how you desire in retirement. To guide you through the process of designing the appropriate investment allocation, underlying securities, monitoring your progress, and adequately contributing to the overall health of the portfolio, meet with a CERTIFIED FINANCIAL PLANNER® professional You need to think long-term to meet your lifetime needs. It is a challenge but the best-looking gardens are those that require the most important work before the bloom is on the stem Your future is just ahead of you Be confident and comfortable as you make decisions to create the future you design
Registered Principal Securities offered through Cambridge Investment Research, Inc , a Broker/Dealer, Member FINRA/SIPC Jimmy J Williams is an Investment Advisor Representative of Compass Capital Management, LLC, a Registered Investment Advisor Cambridge and Compass Capital Management, LLC are not affiliated 215 E Choctaw, Suite 101, McAlester, OK 74501 Cambridge does not offer legal and tax advice Please consult your legal and tax advisor for specific estate and income tax planning strategies Registered Representative Cambridge Investment Research, Inc , a Broker/Dealer, Member FINRA/SIPC Julie Hokit is an Administrative Investment Advisor Representative of Compass Capital Management, LLC, a Registered Investment Advisor Cambridge and Compass Capital Management, LLC are not affiliated Julie does not offer securities or advisory services The information in this article is for educational purposes only and is not intended to be tax advice Further, you should not rely on this information to make investment decisions
“Do It Yourself” Estate Planning
by Wendell Cayton; Bill Good Marketing
A “Do It Yourself” estate plan and a “Do It Yourself” appendectomy have two things in common both can be accomplished if one reads enough of the right books and both are not wise to attempt (for obvious reasons).
Today, thanks to the world’s largest library, the Internet, it is possible to gather the information necessary to attempt your own estate plan However, it is much too easy to overlook key planning opportunities that can cause the estate to pay unnecessary taxes, high fees, or distribute assets to the wrong people at the wrong time
The following are a number of areas where I often see mistakes made by
“Do It Yourselfers”
Out-of-date wills and trusts
done prior to the enactment of specific estate and gift tax laws often do not take advantage of the new regulations Specifically, wills and trusts done prior to September 12, 1981 are likely to contain language that does not allow for a couple to take full advantage of the unlimited marital deduction This may result in unnecessary estate taxation at the first death
Family additions, deaths, and divorce
are often not accounted for in out-of-date plans The most striking example I have seen was the couple, both with prior marriages and one with children from a first marriage, who adopted an infant Their old will left their entire estate to the older children with no mention of support for the adopted child!
Powers of attorney
play an increasingly important role in estate plans as Americans live longer; increasing the risk that court ordered guardianship may be necessary This expensive and cumbersome process can be avoided with proper powers of attorney in place for health care decisions and financial management These documents allow a person of your choosing to step into your shoes and make decisions for you regarding your health, such as what care you will receive, who will provide it, where you will be treated, and how it will be paid for A power of attorney for financial management will allow your attorney-in-fact to make property management and disposition decisions for you, access your retirement accounts for living expenses, file your tax returns, and make estate planning decisions, including gifts and formations of trusts
e s t a t e
Improper beneficiary designations
for life insurance, annuities, and retirement accounts can turn a simple plan into chaos For example, I often see instances where one spouse has had multiple jobs, with multiple 401Ks or IRAs, and multiple marriages If that spouse dies leaving old 401K plans or company-sponsored group term life insurance to an ex-spouse, his estate will be taxed for the transfer To add insult to injury, the tax in most cases will be paid from the current spouse’s inheritance.
Another common error occurs when the estate is named as the beneficiary of a retirement plan resulting in the immediate incursion of applicable income taxes that might have been deferred by an individual beneficiary
deathbed checks
Finally, can be used to make last-minute gifts that will qualify for the annual exclusion Keep in mind that the check must clear the bank while the giftor is alive for the gift to be complete Wire transfers or certified checks should be used when possible
There are reasons lawyers are paid well for keeping us out of trouble The above examples are but a few when it comes to proper planning
DOWN
Payments made by a corporation to its shareholders
A fixed income investment instrument
A formal written agreement between an investor and a fund manager.
A collection of investments held by an individual or institution.
Legal documents evidencing ownership of stock or bonds
Shares or stocks of a company traded on the stock market
Securities that offer a regular interest or dividend
Place where goods or services are bought and sold.
Currency in use, or funds available.
Risk factor affecting businesses in a particular market sector
ACROSS
A financial or physical input made to a fund or business.
A security that represents ownership in a corporation.
Process of exchanging goods, services, or assets
The return on an investment, usually expressed as a percentage
A strategy in which assets are balanced according to the investor's goals
TA person or entity that invests capital in financial markets.
H o w t o P l a y
Fill in the crossword grid with the words provided above Each clue corresponds to a word in the grid Across clues go horizontally, while Down clues go vertically
Use the provided letters and clues to fill in the blank boxes.
SPRING CLEANING YOUR RETIREMENT
SO, HOW DO YOU BEGIN?
e - R e t i r e m e n t
SPRING CLEANING
c h e c k l i s t
Contribute the maximum amount to your IRA if you have one. Remember, an IRA is a valuable way to save for retirement in a simple, taxadvantaged way. For 2024, the annual IRA contribution limit is $7,000 under age 50, and $8,000 for those 50 and older.1
Review your 401(k) and increase your contributions if necessary. How has your 401(k) been performing? Do you understand how your money is being invested and why? Are you contributing enough to take advantage of any employer matching?
Start looking at your existing expenses Which are likely to continue after retirement? What expenses can you remove right now? This is a good way to find extra ways to save for retirement, and it will make your life a lot simpler once retirement comes.
Make sure you know where all your estate planning documents are. You should have a copy of your will, power of attorney, advance medical directives, letter of instructions, and other documents in a secure but easily accessible place Make sure your spouse (or other loved ones) knows where these documents are kept
Review your current insurance policies. Are there any potential gaps you see? (For example, Critical Illness and Long-Term Care insurance are two types of policies many people don’t have but are often extremely valuable for retirees.)
But most of all...
Make a list of your top retirement concerns Is there anything you are confused or nervous about? If so, start getting the answers you need now instead of waiting till you’re already retired. Remember, you want to enjoy your golden years, not stress over them.
Similarly, make a list of any new goals or dreams you have for retirement. What will it take to achieve or afford them? Are you on track? If you’re not sure, it’s time to start planning.
Spring cleaning is never the most fun thing in the world, but it’s often one of the most beneficial. Just as you probably enjoy living in a clean, organized home, you’ll enjoy the peace of mind that comes with getting your finances in order.
Q1 MARKET OUTLOOK FOR 2025
Inflation rose by 0 2% and 0.3% in October and November While neither was a significant jump, they do signal that the inflationary roller coaster may not yet be over.
The Federal Reserve cut interest rates by 0.25% in November and December, but hinted there may be fewer cuts in 2025 if inflation remains turbulent. The unemployment rate ticked up from 4.1% to 4.2% in November, but the economy added 256,000 jobs in December, and unemployment returned to 4.1% by year ’ s end.
WHAT COULD IMPACT THE MARKETS IN Q1
If you haven’t contributed to your IRA for 2024 yet, there’s still time. The deadline is April 15. The contribution limit for 2024 is $7000 for those under 50, and $8000 for those 50 or older
Q1 is a great time to rebalance your 401(k) if needed. This means to realign your investments so they match your original allocation.
Get your taxes done early it’s the best way to reduce mistakes, ensure you take all available deductions and credits, and reduce the headaches of tax season.
Market Data: "Wall Street ends lower, capping a banner year, " Reuters, December 31, 2024
U S Jobs Data: "Employment Situation Summary," Bureau of Labor Statistics, January 10, 2025
Inflation Data: “Consumer Price Index Summary,” Bureau of Labor Statistics, December 11, 2024
