Wealth Management FAQs

We do not specialize in constructing detailed financial plans for clients; however, we can assist you in locating a Certified Financial Planner. We work closely with your financial planner, CPA, and attorneys to develop a plan that meets your long-term goals and needs.

At First Financial Trust, we recognize that your money is important to you, no matter how much it is. We do not have a minimum dollar amount for accounts, but due to our fee arrangements, accounts smaller than $50,000 are generally not advised.

We offer Trust Management, Estate Management, Investment Management, Company Retirement Plan Management, and Oil and Gas and Real Estate Management services. 

We have a wide selection of accounts to meet your needs, such as revocable trusts, living trusts, irrevocable trusts, investment management agencies, insurance trusts, testamentary trusts, estates, and retirement accounts (including IRAs, 401(k)s, and profit sharing plans).

Each office maintains a competitive fee schedule for its service area. Our fees are generally based on the value of the assets under management and the authority you give us as Trustee or Agent. Additionally, we may charge fees based on the income produced from assets we manage (mineral income or real estate income, for example). All of our fees are fully disclosed, and understandably so. Please contact us with specific questions about our fees or a fee schedule for your area.

The primary differences are in our Company's corporate status as a Trust Company (rather than an individual broker or agent) and fee structure.

We are not saddled with a product line to sell and do not generate sales commissions based on our business relationship. Our trust company is a corporate fiduciary with a legal obligation to put our clients' interests above ours. This structure allows us to manage your assets without undue influence on product quotas or commissions on specific products.

No. We provide each client with a separately managed account. Managing separately allows us to tailor your portfolio to your specific goals and limitations.

The investment services we offer at First Financial Trust are not FDIC-insured. If something happens to our firm, your assets will remain intact because your money is held at an outside, independent firm separated from First Financial Trust. Also, we do not use your assets as collateral or reserves in banking operations. In today's uncertain economic environment, we want to feel secure and protected. Rest assured, we undergo frequent audits and are held to high regulation and reporting standards.

We internally manage all of our portfolios based on our investment team's many years of knowledge and experience. We subscribe to outside investment research to assist our investment team in developing their strategies; however, the ultimate decisions in investing your money are based upon the views and opinions of our investment team, along with the policies and oversight of our Investment Committee and Board of Directors.

All of the investment advice we provide to you is independent and unbiased. We are not affiliated with any outside firms.

There are many reasons to set up trusts.

• Married couples can realign the ownership of their assets to save substantial federal estate taxes and pass more on to their heirs.
• If you are no longer able to handle your own affairs, trusts can ensure that someone experienced and objective will handle your needs.
• If there is a serious illness or disability, a trust ensures that a plan is in place to take care of your needs and those of your loved ones.
• When the trust is managed by a full-service trust company, other professional services, such as bill paying, can be provided.
• Business owners can use trusts to save on estate taxes when passing along businesses to heirs.
• Trusts are also helpful for blended families with spouses or children from previous marriages.
• Naming an independent trust company removes the emotional element often associated with friends or family members. By naming First Financial Trust, you can replace the administration burden from friends or family members during a highly emotional period with professionals with many years of administration experience.

A Special Needs Trust, or a Supplemental Needs Trust (SNT), is a discretionary trust that allows a trustee to use trust funds to supplement a beneficiary's government entitlements. It will enable a third party to leave assets to a disabled beneficiary in a manner that preserves the public benefits available to that beneficiary and enhances the quality of the disabled beneficiary's life.

Yes. More than half of our accounts are simply investment management accounts. There are asset managers.

If you need to set up access initially or have lost or forgotten your username or password, please contact your Relationship Manager or call us at 325-627-7100. To access your retirement plan account, please contact Ed McGowan at 325-627-7662.

Brokers are more transaction-based. Their primary goal is to sell products to help you reach your financial goals.

Trust Banks, on the other hand, are focused on giving advice. We will provide financial services, but we also offer planning and investment guidance to our clients. We take the time to look at the entire financial picture, factor in the client's goals, and set a plan to help them reach them. 

Also, Brokers are typically paid on commission for each financial product sold, whereas a Trust Bank uses fee-based compensation that does not compensate for a particular financial product. Therefore, we are motivated to present low fees and tax efficiency options to meet a client's goal.

Lastly, a broker is required to make recommendations based on "suitability." This means they are allowed to present products that pay the broker higher commissions, as long as they are suitable for the client. 

While a trust bank must act in a fiduciary capacity, we must legally act in the client's best interests.

The term “Fiduciary” can have different meanings depending on the context. In the investment advisory context, First Financial Trust is a Fiduciary with a legal obligation to act in our customers’ best interest, ensuring that the customer receives objective advice and minimizing conflicts of interest. Our firm does not profit by pushing particular investment products, which may result in additional fees for us but may not be in your best interest. To the contrary, the only “products” we offer are service and expertise, which always prioritize your best interest. Outside of our investment advisory services, First Financial Trust is also a Corporate Trustee under Texas law, which allows our firm to serve as a Trustee or Executor (a legal Fiduciary for a trust or estate). First Financial Trust must be appointed to accept the role of trustee or executor to create this type of Fictitious relationship. In this context, First Financial Trust is legally obligated as a Fiduciary to follow the terms of the trust or will, act in the best interest of the applicable parties, and meet other duties such as loyalty, good faith, and care.

Although many of our relationship managers hold professional designations and licenses, including CPAs, CFPs, and attorneys, and are well-versed in various matters regarding trusts and estates, First Financial Trust does not provide customers with tax or legal services. Instead, we recommend that you engage competent tax professionals and attorneys to assist in formulating and drafting a trust or estate plan. Our relationship managers work hand-in-hand with a network of high-quality, trusted tax professionals and attorneys daily and routinely help connect customers with the appropriate professionals to assist in structuring, drafting, and implementing a trust or estate plan. Our relationship managers are glad to discuss any matters regarding a prospective trust or estate plan before and after engaging the appropriate professionals. They will remain as involved in the process as the customer prefers.

As a corporate trustee under Texas law, First Financial Trust often serves as either a primary or successor trustee or executor of trusts and estates. To serve as a Trustee or Executor, FFTAM must be appointed per the terms of a trust agreement, last will, or a court order, and First Financial Trust must accept the appointment. Our firm policy requires that we perform due diligence before accepting an appointment as a Trustee or Executor to ensure that acceptance is appropriate. As a result, we believe it is essential for our firm and the customer to have an opportunity to speak with you and any professionals helping draft your trust or estate plan before naming our firm as Trustee or Executor. This will allow all parties involved to discuss any potential issues or conflicts, establish expectations, and understand what First Financial Trust's role as Trustee or Executor entails.

 Developing an appropriate investment strategy depends on individual circumstances and overall financial goals.  There is generally a balance between achieving the necessary risk-adjusted growth to achieve long-term spending goals and maintaining an appropriate focus on asset preservation.  Generally, asset allocation is the first and most crucial decision (determining what percentages of your overall investments will be allocated to each asset class).  From there, the most common next step is to fine-tune the strategy by deciding between value, growth, taxable income, tax-free, and domestic and international diversification.  It is also essential to consider the tax favorability of each account and structure the investments to maximize the after-tax benefit.  The complexity of these decisions emphasizes the importance of working with a qualified financial advisor.

Many types of trusts serve specific purposes. One practical approach to answering this question involves reviewing some common trusts' goals and determining which purposes can benefit your circumstances. For example, people establish revocable trusts to avoid the costs and delays associated with probate. These trusts also allow a successor trustee to manage your affairs if you become incapacitated. Testamentary trusts, created through your last will, help you maintain control over your assets after your passing, particularly useful if your heirs struggle to manage their inheritance. 

You can use irrevocable trusts to gift assets during your lifetime, often reducing the value of your taxable estate. Additionally, you can create trusts to care for a surviving spouse, fully utilize lifetime gift and estate tax exemptions, keep inherited assets within the family, and provide liquidity for an estate. Ultimately, you generally create trusts as solutions to specific problems. A good first step involves narrowing down your goals and collaborating with a qualified financial advisor and attorney to move forward effectively.

 There is no specific number that answers this question for everyone.  The final retirement goal solves a mathematical problem that starts with current or anticipated spending immediately before retirement.  Most people's spending will increase as they buy homes, have children, and otherwise expand their financial picture through adulthood.  Spending typically increases gradually through your thirties and forties, sometimes leveling out as children grow up and begin to support themselves.  This is where you can drill down into what your retirement number should be, because you now know approximately what it will take annually to support your standard of living when you retire.  Most people do not need to replace their gross pay immediately before retirement.  There are several reasons for that: you will no longer be paying payroll or income tax on your employment income.  Another is that you will no longer be saving for retirement.

Additionally, some expenses may decline or disappear now that you have retired.  Generally speaking, it can be good to plan to strive for a replacement rate of 70%-80% of your current income.  Conventional wisdom also states that, given the appropriate investment strategy and time horizon, it is reasonable to expect that you can withdraw 4% of your retirement savings the first year of retirement, and then maintain that distribution throughout retirement, increasing it by a reasonable inflation rate.  If that approach is taken, you can calculate your wage replacement ratio (70-80% of pre-retirement income), and then set that as your 4% target withdrawal and back into the total savings needed when you retire.  While this is the most straightforward answer, the real world is oftentimes less clear, and it is advisable to work with a qualified financial planner to help you achieve your retirement goals.