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The Trust & Investment Industry: A Historical Perspective

The Trust & Investment Industry: A Historical Perspective. FIRMA’s 25th Anniversary: 1987-2011. A Historical Perspective. Then 6,000 Providers Full Service Banks Banks Dominate CTF’s were Prevalent Numerous Mid-size Limited Certifications Law Against Perpetuity Principal & Income

Melvin
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The Trust & Investment Industry: A Historical Perspective

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  1. The Trust & Investment Industry: A Historical Perspective FIRMA’s 25th Anniversary: 1987-2011

  2. A Historical Perspective • Then • 6,000 Providers • Full Service Banks • Banks Dominate • CTF’s were Prevalent • Numerous Mid-size • Limited Certifications • Law Against Perpetuity • Principal & Income • Prudent Person • Numerous System Vendors • Now • 2,400 Providers • Ltd-Purp. Trust Co. • Brokers, Insurance, etc. • Mutual Fund Replace • Barbell: Small & Large • Numerous Certifications • Dynasty Trusts Prevalent • Total Return • Prudent Expert • Consolidated to a Few System Vendors

  3. A Historical Perspective • Then • Savings Banks Excluded • Wills • Audit/Exam: Transaction • Compliance: Secondary • Estate Tax Rate: 55% • Estates Over: $600K • Qualified Gift: $3,000 • Gift Tax Rate: 55% • Income Tax Rate: 38.5% • IRA Contribution: $2,000 • 401(k) Deferral: $7,000 • Now • Savings Banks Power’s • Living Trusts • Audit/Exam: Risk • Compliance: Primary • Estate Tax Rate: 35% • Estates Over: $5MM • Qualified Gift: 13,000 • Gift Tax Rate: 35% • Income Tax Rate: 35% • IRA Contribution: $6,000 • 401(k) Deferral: $16,500

  4. A Historical Perspective • Then • Uniform Laws • P&I 1962 • N/A • Unclaimed Property ’54 • N/A • MIFA ’72 • Reg. 9 • Annual Reviews <15 months apart • 36-month vault asset verification • Numerous Precedence & Opinions • Now • Uniform Laws: • P& I Act 1997 & 2000 • PIA 1994 • Unclaimed Property ‘95 • MPERSA ‘97 • PMIFA ’96 • Reg. 9 • Annual Reviews • Rescinded • Most rescinded

  5. A Historical Perspective • Then • I was slimmer and more handsome. • Teaching in Cannon’s FIRM II as a part-time faculty member • Now • See for yourself & I’m a Grandfather (2X) • Teaching in Cannon’s FIRM I & II as well as other programs and now full-time faculty

  6. Economic Data • Unemployment • 10.4% • Gold • $367 • Oil • 17.50 • Bank Failures • 262 • T-Bill • 5.98% • DJIA • 1,895 • Unemployment • 9.0% • Gold • $1,416 • Oil • $105.00 • Bank Failures • 157 • T-Bill • 0.24% • DJIA: • 12,200

  7. Inflation • How Much things cost in 1987 • New house $92,000 • Income: $24,350 • Monthly Rent: $395 • Gallon of Gas: $0.89 • US Postage Stamp $0.24 • Dozen Eggs $0.65 • How Much things cost in 2010 • New house $232,880 • Income:$39,423 • Monthly Rent: $675 • Gallon of Gas: $3.50 • US Postage Stamp $0.44 • Dozen Eggs $1.37

  8. The Stock Market • Landmarks • The DJIA first hit; • 2,000 points on 1987-01-07 • 3,000 points on 1990-07-13 • 4,000 points on 1994-01-31 • 5,000 points on 1995-11-16 • 6,000 points on 1996-10-0 • 7,000 points on 1997-02-13 • 8,000 points on 1997-07-08 • 9,000 points on 1998-04-02 • 10,000 points on 1999-03-12 • 11,000 points on 1999-04-28 • 12,000 points on 2006-10-13 • 13,000 points on 2007-04-20 • 14,000 points on 2007-07-16

  9. The Stock Market • Five Best One Year Performances (points)1999 +2315.69 points2003 +2112.29 points2006 +1745.65 points2009 +1651.66 points1997 +1459.98 points • Five Worst One Year Performances (points)2008 -4488.43 points2002 -1679.94 points2001 -766.42 points2000 -709.13 points1974 -234.62 points

  10. The Stock Market • Five Largest One Day Point Gains:1. 2008-10-13 +936.42 points2. 2008-10-28 +889.35 points3. 2008-11-13 +552.59 points4. 2000-03-16 +499.19 points5. 2009-03-23 +497.48 pointsFive Largest One Day Point Losses:1. 2008-09-29 -777.68 points2. 2008-10-15 -733.08 points3. 2001-09-17 -684.81 points4. 2008-12-01 -679.95 points5. 2008-10-09 -678.91 points

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