Charting
the Course

Press Release

OKLAHOMA CITY – After only six years as a Registered Investment Advisor, Oklahoma City-based Full Sail Capital has reached $2 billion in assets under management, a rare threshold of achievement that has been built on a foundation of authenticity, service and passion.

Established in 2018 by three veterans of the financial industry, Full Sail Capital was founded with zero assets under management, but quickly grew its client base, surpassing the $1 billion mark during the COVID pandemic and reaching the $2 billion milestone for the first time in late July. Today, the firm serves more than 650 households, all with ties to Oklahoma.

Co-founders David Stanley, chief executive officer; Scott Cravens, chief operating officer, and Zac Reynolds, chief investment officer, are proud of the firm’s Oklahoma roots.

Full Sail has grown one-client-at-a-time, the co-founders say, and the firm was built through a culture that cares about people and it is driven by a growing team of talented employees who love what they do.

“Full Sail’s family culture is another reason for the firm’s success,” CEO Stanley said. “Clients are part of the Full Sail family, and we want to help them, sometimes in ways that have little to do with finance. That’s what makes Full Sail unique, and it’s one of the reasons behind the firm’s rapid growth.”

Full Sail Capital was established as a fiduciary, placing its clients’ interests ahead of their own, and the firm’s wealth advisors offer a variety of services, such as investment management, financial planning, estate plan consulting, real estate advisory, qualified plans expertise and family office services.

Comparing Full Sail to other financial institutions can be difficult because of the variety of regulatory classifications, rules and the interstate business models of so many firms and banks that serve Oklahoma City. But Full Sail’s $2 billion achievement distinguishes the firm as one of the largest Registered Investment Advisers (RIAs) in the state.

Of course, the assets under management measure can vary over time because of natural market volatility, but Full Sail Capital was pleased to have reached that milestone for the first time last month. As an RIA, the firm updates its assets under management at the end of each calendar year in a report available at: adviserinfo.sec.gov.

“While the $2 billion milestone is significant, we are most grateful for the opportunity to help so many families plan for their futures, build their dreams, and enjoy peace of mind,” Stanley said.

For most of us, goals are an important part of our lives because that’s one of the ways we get things done. We have short-term goals, like losing 15 pounds before a beach vacation, and long-term goals like earning an MBA.

Some goals may not matter that much in the grand scheme of things while others may mean everything to us, and those are the ones that are hardest to achieve. In many cases, we count on others to help chart a path to our goals and stay with us along the way.

Olympic swimming icon Michael Phelps attributes much of his gold-medal success to his dogged coach Bob Bowman. And would Tom Brady have won all those Super Bowl rings without Bill Belichick?

Almost everyone has had a coach, a teacher, a mentor or someone in their lives to show them a point on the horizon and then help guide them to it. And those advisors are not just for the young or the athletic.

In the financial world, advisors are important no matter how old the client is. Advisors lend their expertise on markets and investing strategy while employing the tools necessary to analyze opportunities, assess risk and chart growth plans. While all of that is essential, the relationships advisors have with their clients are at the heart of what they do.

They help clients set goals and make financial plans, but that’s the easy part. The hard part comes when storms arise, obstacles pop up and distractions develop. Tom Brady would tell you the road to a Super Bowl championship is rarely a straight line. To get there takes discipline and accountability to the plan.

And just like Tom Brady needed his coach by his side, investors benefit from advisors who can help them stay on course. Everyone knows markets are not always predictable. Bull markets bloom while bear markets seem to drag out forever as investors ride waves of emotion ranging from jubilation and happiness to fear and frustration.

Greed and fear are natural elements within the investing world. In bull markets, it’s easy to make bold investment decisions, forgetting that a market downturn could be just around the corner. And who hasn’t felt the urge to sell assets amid the frustration of a bear market?

But emotional decisions will almost always lead to costly decisions and the value lost because of them is not easily recovered. Like any good coach, advisors hold their clients accountable, keeping them on course when they would rather jump overboard when waters get rough or from steering into the rocks when tailwinds get strong.

They see markets through a lens of opportunity – not emotion – sometimes advising clients to buy during down times and to sell when prices are high, capturing value that occurs from the ebb and flow inherent in financial markets.

In sports and investing, winning is never guaranteed, but athletes and investors with plans are more likely to succeed than those who are guided only by their emotions. Just ask Tom Brady.

With emerging technology and an abundance of digital options for savers and investors to use these days, it’s easier than ever to access markets and track your financial information.

When the Philadelphia Stock Exchange opened more than 200 years ago, investors had to have a broker to help them buy and sell financial instruments. But today, buying and selling is only a few mouse clicks away for millions of people who now have enormous technological power at their fingertips.

App-based platforms that are rich in analytics are making markets more accessible, while artificial intelligence along with machine learning tools are helping people gather up-to-date information, review their portfolios and identify trends like never before.

In short, a technological revolution in the financial industry is in full gait and the financial planning profession will undoubtedly be impacted greatly. With all this technology and access, one may ask who needs an advisor anymore with so many online investment platforms available at low or no cost at all?

Meanwhile, the number of financial advisors appears to be on the decline with reports that more than a third of the industry’s advisors will retire within the next decade. At the same time, fewer students are earning finance and accounting degrees these days, reducing the pool for potential new advisors.

On the surface, all of that may seem like a concern, but in reality, this is just another day in the modern world. Technology is disrupting just about everything right now, and through it all, we are being reminded that human interaction has not lost its value. In fact, we are learning that a handshake, a friendly face and a relationship with someone you know and trust may be worth more than ever.

Jobs, businesses, families and other obligations demand our time and make it difficult to keep up with all the complexities of shifting markets and risk matrices. When their life savings and future dreams are at stake, many people still feel better when they have financial professionals standing behind them.

But the role of a financial advisor is evolving. Clients now have a broader range of expectations and advisors are beginning to offer a wider variety of services that are not necessarily within the traditional context of asset management.

It’s not just about stocks and bonds anymore. Today’s planners are also thinking about babies, children and college students. They’re thinking about brothers, sisters, parents, and grandparents. They keep track of new jobs and big dreams, as well as weddings, and funerals.

They’re now spending more time on their clients’ life issues, such as healthcare, wealth protection, real estate, education, family dynamics, behavioral biases and the plethora of other challenges of day-to-day living.

And why wouldn’t they? Life is at the center of everything today’s advisors do. The whole purpose of financial plans, retirement savings, investing and wealth management revolves around families, their security, their health, their dreams and their futures.

The world is changing fast, and the role of today’s financial advisor is changing right along with it because we know that, with technology, there will always be gaps. The only way to fill those voids is through the hands-on involvement that only comes through personal relationships, and that is something that will never change.

We’ve all heard the fairytale stories and happily ever after fables of newfound wealth. We may even dream about winning the lottery, inheriting a million dollars, or hitting it big in Vegas.

But newfound wealth is no dream. The fact is windfalls are a reality for more people than you might think, and they have nothing to do with the lotto and they don’t require a trip to Navada.

According to wealth management firm Cerulli Associates, some $50 trillion will be passed down from Baby Boomers to their Generation X, Millennial and Generation Z heirs between now and 2045.

While that may sound like great news, there’s a catch that frequently stands in the way of “happily ever after” outcomes that so many of us dream of. Seven in 10 families tend to lose their fortunes by the second generation and nine in 10 lose it by the third generation, according to a 20-year study by The Williams Group.

Without going into details of the 3,200 families involved in the study, the outcome illustrates how difficult it can be to manage money and how easily wealth can evaporate without a savings and investment plan. There is no doubt that newfound wealth can change a person’s financial perspective, clouding decisions about spending, sharing, and investing.

In those circumstances, financial advisors can step in to take emotions out of the equation and provide personalized advice based on specific situations.

Unexpected wealth can present surprises that financial professionals can help navigate, and windfalls can come in many forms, such as IRAs, 401ks, cash, real estate, stock and so many others. Each type of asset can come with unique tax implications. And no one wants to be surprised by a tax bill from an unexpected financial gain, especially if the taxes could have been mitigated through professional advice.

Some individuals and families already have estate plans set up and teams of financial advisers in place to help incorporate new assets into existing portfolios. For those who do not, help is never far away, and it’s not too late to reach out to financial professionals who can recognize the red flags and provide strategies to avoid them.

While windfalls can be exciting, they come with responsibility and plenty of questions. You’ll want to re-evaluate your financial plans and assess your new tax position. That’s why your first call should go to trusted financial professionals, starting with a financial advisor bound to act in their clients’ best interests, as well as a CPA and an attorney.

Newfound wealth is no dream. Whether it is expected, or it comes out of the blue, life-changing windfalls happen. The question is, what happens next.

We all know about the stages in life, but it’s sometimes easy to overlook the fact that we live through stages in our financial lives as well.

That starts with our first job, probably in high school, and it continues as we begin our careers, then get married, purchase a home, start a family, put children through college, plan for retirement and so on. Our lives and our financial lives tend to blend, so we frequently overlook the difference between the two.

But there is a difference. And just as we envision the long-term paths that we would like our lives to take, we also should consider our financial futures as well. We should consider things like savings strategies, investment strategies, college savings plans, tax strategies, retirement planning, estate planning, and legacy planning.

And it’s never too early to start, because there are plenty of people who have started later in life, and they’ve ended up saying, “I wish I knew then what I know now.”

Technology has driven industry changes that have made financial information and resources more widespread and accessible, opening the door for more people to invest, often encouraging saving and investing at younger ages – which is great. And you can read about the differences between a traditional IRA and Roth IRA, nuances of pre-tax 401ks or Roth 401ks, which investments create income tax, and which are taxed at capital gains rates, etc. all day long, but how will you know which is right for you and your situation?

Planning is different than investing, and regardless of the point in a person’s financial life, it’s a good idea to talk to a financial advisor about savings strategies, investment vehicles, tax liabilities, and ways to mitigate future taxes. Financial education is important, and people should seek out financial professionals who are genuinely interested in learning about their needs, goals, objectives, and what keeps them up at night. Ideally, people can walk away from these conversations with more peace of mind and a better understanding of the value that a trusted advisor can often bring.

It’s easy to get complacent with how we are saving and investing now. But before investors and savors get too far down the road, they should reach out to a professional who can help guide their path with transparency and integrity, so they won’t end up like so many others proclaiming the age-old mantra.

“I wish I knew then what I know now.”

For investors who like roller-coaster rides, the beginning of 2023 must have felt like a trip to Six Flags. The markets were full of so many twists, turns, ups and downs that people were jumping out of their cars right and left.

Jumping out of a moving roller coaster is never advisable, but considering all the fear people were feeling about a faltering economy, craziness in Washington, and a world at war, you can see why so many investors wanted out.

But long-term investing is a lot like reading a book or watching a movie. You have to stay with them to know how they turn out, and investors who held on in 2023 were rewarded with a happy ending, seeing the S&P 500 up 20% for the year.

Riding a roller coaster is an emotional experience, and that’s what makes them fun. A few minutes of fear and excitement and you’re grateful to be back on solid ground. While long-term investing might seem like riding a roller coaster, there really is no similarity.

Successful, long-term investors follow their plans, not their emotions. They know financial markets will be volatile from time to time, but that’s just part of the journey, which can last a lifetime. And they know that the amount of time they spend in the market is important because the longer they stay in, the probability of a negative return decreases.

So, looking back on the year, 2023 started with plenty of negative news along with large helpings of scary commentary predicting recessions, joblessness, and continuing inflation. Some people yielded to the fear, cashed in, and put their money in safe havens with little risk and little reward.

They believed they could climb back into the market when conditions got better, but seasoned investors know that timing the market can be as futile as catching one of those roller coasters. By the time they see better conditions have arrived, the bull market has already passed them by and is screaming down the track. The saddest part is that those who opted out for a 5% money market investment could have finished the year with five times more than what they earned, and that is wealth they will never recover.

So, as we continue our investment journey into 2024, we should avoid the prognosticators, the doomsayers and the pundits who try to predict what’s over the horizon. Because the evidence tells us that no one knows what markets will do from month to month. And when the world is rocked by wars, politics, and economic turbulence, it might help to look outside.

You’ll see trucks hauling goods, trains carrying freight, and hungry consumers crowding into drive-through lines across America. That’s what it looks like when money is in motion, and when money is moving, our economy is working.

And remember that roller coasters can be full of surprises and so can markets, but motion and turbulence are part of life, and the only way to climb higher is to keep moving.

While saving, investing, and planning are at the foundation of secure, long-term retirement portfolios, the close relationships and personal connections financial advisors share with their clients are at the center of what’s important.

Sometimes advisors can get caught up in market returns, advising, or planning, and look up only to realize they’ve forgotten a special birthday, new grandchild, or anniversary. As an advisor, beyond the fiduciary standard to place clients’ interest before your own, having a genuine interest in the personal lives of clients and their families is important for strong long-lasting relationships.

Money is personal, and many people avoid talking about it. Advisors can be tasked with hosting difficult meetings and communicating information to family members that the client is reluctant to discuss themselves. Client-advisor relationships that are formed through and based on trust are crucial to planning for future generations.

Trust grows when an advisor can anticipate a client’s needs and resolve problems before they ever materialize. That kind of personal attention and focus is the hallmark of a good advisor. When clients know that their advisors are paying closer attention to their portfolios than they are, it allows them to sleep better at night knowing they are in good hands.

Some financial decisions aren’t made based on numbers in a spreadsheet. A lot of them are made with and driven by feelings and emotions such as fear and anxiety. Making difficult decisions and being faced with challenging circumstances are inevitable, and having an advisor whom you trust to help navigate those situations is valuable when the time comes.

Financial advisors are sometimes the first to hear news about an unexpected surgery or a lost job. They can be called on to help sort out Medicare and Social Security applications or to help with an estate plan. Questions can come up about selling a home, buying a home, or even repairing a home. While advisors may not have the expertise or the credentials to help with home repairs, the good ones know people who can.

When the advisor role extends beyond financial guidance and provides comprehensive support and understanding through the complications and celebrations in everyday life, true value is created.

I had the good fortune to work with an award-winning veteran in the Oklahoma City financial community, and he would always remind me, “this business is about the people”.

The holidays are the season when charitable giving goes into overdrive with nearly half of all annual giving reported during the month of December.

And while a lot of people think tax benefits are the primary motivator behind giving this time of year, research suggests there’s more to it than that. People who give tend to feel satisfaction, and they experience joy from helping others.

While it’s good to know that people are going to give, whether there’s a tax benefit or not, we can still take a moment with a financial advisor and look for ways to give even more to charity by considering our tax options. Because the fact is, donations don’t always lead to tax savings at the end of the year.

That’s especially true for people who file standardized tax returns. By taking a standard deduction, we can lower our income by a fixed amount. A married couple who files jointly, for example, is allowed to take a standardized tax deduction of $27,700 in 2023.

While that’s the best option for millions of people, it doesn’t necessarily lead to end-of-year tax benefits from charitable giving. Consider someone who takes a standardized deduction that decides to contribute $10,000 to charity. While that might seem like a big gift, it still may not be enough to exceed the standard deduction on the individual’s tax return, so there would be no potential tax benefit.

Fortunately, there are measures within the tax law that can result in tax benefits from giving, even when people tend to take a standard deduction.

For example, people currently 73 or older must take Require Minimum Distributions (RMD) from their individual retirement accounts (IRA). While some choose to donate that money to charity, the RMD is considered taxable income.

But they can avoid reportable taxable income by transferring the money directly to a 501(c)(3) organization through a Qualified Charitable Donation (QCD), which is a financial strategy to help people donate their required distributions. The QCD permits people who are older than 70 ½ to avoid the income taxes from their distributions by allowing the money to bypass the account holder and flow straight from the IRA to the designated charity. A financial advisor can help execute the process.

For those who don’t face required distributions, bundling is another way standardized tax filers can realize a tax benefit from charitable contributions. A $10,000 charitable donation may not be enough to exceed an individual’s standard deduction in any given year. However, by bundling two or three years of annual donations into one year a taxpayer can utilize the itemized deductions over a standard deduction for that year, which could produce additional tax benefits over that two- or three-year period. A good way to do that is to open a Donor Advised Fund (DAF) and contribute a couple years of charitable donations in one year, which allows the taxpayer to recognize the charitable deduction immediately. The DAF funds can be distributed to qualifying charities whenever the account holder chooses, and a much larger gift can result from investment earnings or interest on those funds.

Those are two examples of how tax strategies can open the potential for hundreds or even thousands of dollars in tax savings that might otherwise slip away. As we head into Christmas, it might be a good idea to take the extra step with a financial professional. It might just lead to bigger gifts during the holidays, and an even happier season for everyone.

Sometimes Uncle Sam gets a bad rap. As a metaphor for the federal government, he’s frequently the target of wry jokes, complaints, and criticism.

Maybe the worst of it comes when the Internal Revenue Service (IRS) is involved, what with the rules, regulations and all those taxes. It’s a tough gig for a tough guy, but buried under all that red, white, and bureaucratic garb is a big heart with some soft spots.

Take capital gains taxes, for example. As investors, we take risks and buy stocks, and if we’re fortunate, the value grows far beyond our stock’s original price. We can either hold the stocks and possibly watch their value grow even more, or we can sell them, and reap the rewards. But those who sell will soon face Uncle Sam with his hand out, asking for his share – the capital gains tax payment.

Selling stocks can be necessary, especially when investment portfolios lose balance over time and need to be adjusted to protect against market volatility, forcing investors to sell, even if it results in extra tax liability.

But here’s where Uncle Sam’s soft heart shows through. Investors can solve their portfolio problems by gifting some or all of their problem stocks. They can give the stocks to children, grandchildren, close friends, or anyone they choose. By doing so, they can benefit their loved ones with a gift of great value, and under IRS rules, the capital gains tax liability goes to the gift recipient.

That can solve the investors’ tax problems, but what about the loved ones? If they decide to sell their gift, they may need to hold onto a percentage of the proceeds to pay the government what’s due.

But there may be a silver lining for the loved ones as well. Depending on their annual income, loved ones may not be required to pay capital gains taxes. Under the law, individual filers in 2023 do not have to pay capital gains taxes if their total taxable income is $44,626 or less. For married couples who are filing jointly, the taxable income threshold is $89,250 or less. And when qualifying charities receive stock gifts, they never have to pay capital gains taxes.

So, when it comes to capital gains taxes, Uncle Sam has a soft spot, after all.

Who knows what he’s thinking, but maybe he likes it when investors give shares to charities and when parents and grandparents pass equities down to children. Perhaps he supports investors who share some of their gains to support the common good, and maybe he thinks it’s a good idea to teach young people about the power of investing and the long-term benefits of compounding interest.

In light of all that, it looks like capital gains taxes really aren’t for everyone. That’s something to keep in mind next time we want to crack a joke, complain, or criticize. If we look deep enough, even Uncle Sam has a softer side.