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In January, we all start looking forward to the future with new resolve to reach our goals and desired accomplishments. From the President in his State of the Union address, to the budget committees of businesses to our own personal resolutions, the new year offers a great opportunity to take stock of what we have accomplished and where we stand as we look forward. The process of deciding on our vision for the future, determining which goals will help us realize this vision and mapping a path to achieve these goals is a worthwhile exercise.
At First Western we embrace this opportunity not only for ourselves but also for our clients. Revisiting wealth plans and investment strategies with your First Western advisors will help you start the new year off right. We look forward to partnering with you on your wealth management vision in 2010.
In A Letter from Scott, Scott offers thoughts on First Western’s strong performance in 2009 and our strong standing relative to our peers. Warren gives us perspective on some of the things pushing and pulling the economy and what we have to look forward to in the markets this upcoming year in Cocktail Party Chatter while Karen Post reviews market performance in 2009 in The Devil’s in the Details. In A Little Education, Melissa Montgomery-Fitzsimmons also looks forward to 2010: The Year of the Roth IRA. In a new section, Our Take On . . . , Shane Phillips brings to our attention a possible opportunity to benefit from the current mortgage environment. Also, look for year-end goings-on in New with First Western.
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A Letter from Scott
by Scott Wylie
The new year is always a good time to look back at the year ending, which I imagine many people are happy to see behind us, and to look forward as well. Many are looking at how they emerged from the storms of 2008–2009, and trying to plan for the weather in 2010, which is likely to be at least a bit cloudy.
For First Western, our preliminary 2009 financial results were very good, thanks to the hard work and fantastic support of our many stakeholders. We’ll report soon on final numbers as we finish our annual audit with Ernst & Young, but we clearly ended the year with excellent growth, a positive earnings run rate, very positive consolidated cash flow, and two clean FDIC exams for our banks.
[FULL STORY]
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Cocktail Party Chatter
by Warren Olsen
As I write this piece,
I’ve got my television on as background noise, and the two big pieces of
television news really span the spectrum of importance. On the utterly unimportant side (but one I
have to admit I am following) is the NBC late-night fiasco and the Jay
Leno/Conan O’Brien feud. On the vitally
important side is the devastating earthquake in Haiti that has killed over 200,000 people and, despite the best
efforts of the United States, Brazil and other countries, will lead to huge
suffering in the coming days, weeks and months for a people already accustomed
to greater suffering and poverty than any other people in the Americas. By the way, if you want to read a terrific
book that gives great insight into Haiti and also chronicles a remarkable man
making a difference in the world, I highly recommend Mountains Beyond Mountains by Tracy Kidder.
I mention these two items
because I’ve always believed that a big part of investing is keeping
perspective – of both the good and bad, the important and the unimportant. As you will see from my piece, despite a lot
of economic problems, I believe that 2010 is going to be a year of progress for
the economy and a good year for investors.
We in the United States have a strong, rich, fundamentally solid base
to build and rebuild from, and 2010 will be a year we will do so on the
economic front.
[FULL STORY]
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Devil's in the Details
by Karen Post
Markets continued the powerful rally off of March lows through year-end, staging a scorching recovery from the brink of what had felt like disaster. Thanks to unprecedented government efforts worldwide, confidence in markets was rebuilt and a potential repeat of the Great Depression was averted. Trillion-dollar deficits, billion-dollar stimulus packages, near-zero interest rates, inflation bordering on deflation, and government guarantees and purchases of debt supported investors’ shift out of safe havens and into riskier assets. Once-in-a-lifetime investment opportunities were realized in the riskiest areas, which had fallen to extremes. After back-to-back, mid-teen and higher returns in 2Q09 and 3Q09, markets settled into a trading range as the year drew to a close and investors protected their gains. The economy, after four quarters of negative GDP growth, stabilized from its free-fall and pulled out of recession in June (perhaps, as this is not officially confirmed yet), posting a positive real GDP growth of 2.2% in 3Q09.
[FULL STORY]
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A Little Education
by Melissa Montgomery-Fitzsimmons
2010: The Year of the Roth IRA
As we ring in the New Year, 2010 brings with it a new opportunity for tax planning regarding your Individual Retirement Account. In 2010, anyone with a traditional IRA or an eligible rollover distribution from a company plan can convert that distribution to a Roth IRA, regardless of income or tax filing status. Prior to 2010, only those taxpayers with incomes under $100,000 were eligible to convert to a Roth IRA. This income limitation has been permanently repealed, so high-income earners can now convert their IRAs. Married individuals filing separately can also now convert.
[FULL STORY]
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Our Take on . . .
by Shane Phillips
Mortgages
You are likely aware that mortgage interest rates have been at record lows over the past 12 months. Lower mortgage rates have been the result of various stimulus programs created by the Federal Reserve, the U.S. Treasury, and the federal government.
Several of these programs are set to end in 2010, some as early as March 31st. If you have not had your mortgage analyzed in the past 12 months, now is the time to do so. Mortgages are a significant component of your overall financial picture and as a part of First Western Trust Bank’s WealthView 360ºTM approach to wealth management, we offer free mortgage analysis. We will talk with you about your short and long term goals as it pertains to mortgage debt and your expected stay in your home. It may make sense to simply keep the mortgage you have, but there may also be a great opportunity to reposition the mortgage into a better rate or term.
For more information, please contact your First Western Relationship Manager, or email mortgages@fwtb.com
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New with First Western
Our Professional Development Program
This past year marked the inception of First Western's Professional Development Program. The bank invited six recent graduates to join the First Western team for a year-long training program during which the new associates will focus on specific departments while also having the opportunity to explore the broader operations of the organization and the financial industry. The initiative is structured to encompass both formal coursework and in-house training through monthly presentations by bank leaders and opportunities to shadow executives. Since the program started, the participants have already completed projects in lending, bank operations, investment strategy, equity research, human capital, accounting, insurance, marketing and wealth planning. This year's inaugural class comes from Colorado State University, University of Colorado at Boulder, University of Denver, and Georgetown University, with a wide range of academic backgrounds including finance, international politics, real estate, and accounting. The program aims to grow our own leaders that will join our current team of high performing members as we continue our rapid growth and expansion.
Our Anniversary
In November, Pulitzer Prize-winning columnist George Will joined a distinguished list of First Western presenters which includes George Tenet, Cokie Roberts, Robert Reich and David Gergen. For three nights in Colorado, Mr. Will unabashedly tackled some of the most pressing - and most polarizing- national issues, while using his trademark wit to leave those sitting in the audience with a smile regardless of where they stand on the political spectrum. With over 800 people in attendance to celebrate First Western's 5th anniversary, we look forward to Arizona's anniversary event in mid-February where former secretary of labor and political commentator Robert Reich will speak.
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The First Western Trust Bank Newsletter and the information and research contained herein do not represent a recommendation of investment advice to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment and it does not constitute an offer or solicitation to buy or sell any securities. The articles within the First Western Trust Bank Newsletter represent the authors' own opinions and should not be construed as personalized investment advice. Investments, insurance, annuities and similar products are not FDIC insured, may lose value, and have no bank guarantee.
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