1. ACCOUNTABLE
ADVICE
M a r c h / A p r i l + 2 0 1 5
Ask a trust officer + PG2
Risks of amateur trustees + PG3
Women and Social Security + PG5
F i n a n c i a l P l a n n i n g
I n v e s t m e n t M a n a g e m e n t
Tr u s t & E s t a t e S e r v i c e s
P r i v a t e B a n k i n g
R e t i re m e n t P l a n S e r v i c e s
A good year
The economic recovery in the U.S.,
now in its sixth year, produced much
good news in 2014:
• The SP 500 rose 11.4%, and the
Dow Jones Industrial Average posted
a 7.5% gain on the year, following the
stellar performance of stocks in 2013.
• The six months of economic growth
that included the 5% spurt in the
third quarter was the best half-year
period since 2003.
• 2.7 million jobs were added through
November, the best year for employ-
ment growth since 1999.
• Oil prices declined sharply in 2014,
bringing major relief at the gas pump
to U.S. consumers. All signs point to
lower oil prices for the intermediate
future.
But the picture is not entirely rosy,
it never is. While the U.S. is doing well,
Europe and Japan are not. Countries
using the Euro have not yet surpassed
their pre-recession economic output, as
the U.S. has. The Dow Jones World
Index, which excludes the U.S., fell 5.5%
in 2014. Robust, stable economic growth
requires strong economic partners.
CAPE fears
Higher stock prices are powered
by two factors: increased profits and
increased investor optimism. Optimism
is generally measured by the price/earn-
ings ratio. A high ratio means that inves-
tors are willing to pay a high price for
future profits, and it suggests that they
expect those profits to grow.
Nobel Laureate Robert Shiller has
traced a cyclically adjusted price earn-
ings (CAPE) ratio from 1871 to the pres-
ent. His CAPE ratio includes an inflation
adjustment and a ten-year time frame
for smoothing annual variability. For the
20th century, the average CAPE ratio
was 15.21. At this writing, the CAPE
ratio stands at 27.34. Speaking histori-
cally, that number is in the stratosphere.
That’s where it was in 2007, just before
the financial meltdown. In 1929, before
the Black Friday crash, it stood 32.56.
Before the dot-com bubble burst, CAPE
reached 43.83.
A high CAPE ratio for the stock mar-
ket is not necessarily a sell signal, even
though it may be suggestive of “irra-
tional exuberance.” High stock prices
may also be a reflection of the absence
of satisfactory alternatives for investing.
However, once the CAPE has reached
high levels, future increases in stock
prices will have to be fueled primarily by
increased profits, not improved investor
sentiment.
Continued on page 4.

2. A S K A T R U S T O F F I C E R :
A F F O R D A B L E C A R E A C T T A X F I L I N G S
DEAR FULLY:
The IRS has been charged with monitoring compliance with the ACA,
which will be done as taxpayers file their income taxes for 2014. The major-
ity of taxpayers simply will check a box to confirm that they did have health
insurance for the full year.
However, an estimated 6.7 million people received subsidies for their
health insurance when they bought the insurance on an exchange. Those
subsidies actually were advance tax credits, and they were based upon 2012
income reports. A reconciliation will be required. Those who had the good
fortune of a higher income in 2014 than in 2012 will have their subsidy
reduced, which will mean a smaller refund check. Those whose income
declined may be eligible for a larger subsidy and a bigger check.
Everyone who purchased health insurance through an exchange will
receive Form 1095-A in the mail from the exchange. The Form will show
who was covered in 2014 and any premium tax credits that were applied.
Those who received premium tax credits will need to file Form 8962 with
their tax returns for the reconciliation.
Anyone who went without health insurance for three consecutive
months in 2014 may owe a penalty, which the U.S. Supreme Court has
characterized as a “tax.” Exemptions from the penalty are available, but
paperwork will be required. Those who are denied an exemption may
appeal that decision.
Tax filing this year will be a learning experience for everyone.
Do you have a question concerning wealth management or trusts? Send
your inquiry to wealthmanagement@fnni.com.
© 2015 M.A. Co. All rights reserved.
DEAR TRUST OFFICER:
How will the Affordable Care Act (ACA)
affect my tax filings this year?
— FULLY COVERED
2

3. a red flag should go up when any one holding accounts for
more than 10% of a trust. Problems with that holding could
lead to lawsuits by disgruntled beneficiaries against the trustee.
On the other hand, the person who creates a trust may override
the diversification requirements. For example, shares in a family
business could be exempted from the diversification mandate.
Biased distributions. One of the most important benefits
of trust-based wealth management is delivery of financial
resources to multiple generations, today and in the future.
Trouble is, finding the appropriate balance between current
and future interests is not easy. Trustees need to document
reasons for allowing or denying invasion of a trust for par-
ticular beneficiaries, for example. What’s more, the investment
strategy chosen for a trust may inadvertently favor some ben-
eficiaries over others. When a family member is a trustee, the
issue of bias can become quite emotional.
Expecting a payday. Trustees should be paid, but benefi-
ciaries don’t always see it that way. When the trustee is a family
member with an interest in the trust, the payment issues can
be especially sensitive. Compensation matters should be settled
before the trustee assumes the duties of trust management.
Continued on page 4
Risks of amateur trustees
A family member has the advantage of personal under-
standing of the trust beneficiaries, and that is no small thing.
Unfortunately, family members usually lack experience and
ability in several other crucial areas.
Amateur trustees—watch out for these traps
There are many ways for a trustee to fail to meet the obliga-
tions of sound trust management.
Faulty records. There’s much more to trust accounting
than balancing checking accounts and keeping track of portfo-
lio statements. Income, asset values and distributions must be
reported to the beneficiaries on a regular basis. “Beneficiaries”
refers not only to those who receive current trust income, but
also to those who will receive the assets when the trust termi-
nates. We suggest a team approach, including a trust attorney,
a tax professional and an investment manager. Note: We are
pleased to serve as agent for a trustee!
Failure to diversify. Laws governing the prudent invest-
ment of trust assets vary from state to state. In general, concen-
tration of assets should be avoided. According to many experts,
More and more affluent families are turning to trust-based solutions for their
wealth management and inheritance problems. However, a trust is only as good
as its trustee. Have you been asked to serve as trustee, perhaps for a parent’s
trust? Do you plan to ask your child to be your trustee? Although such a course
of action may be a natural impulse, it may not be the best approach.
3

4. Risks of amateur trustees continued from page 3.
False sense of safety. Some amateur trustees assume that,
given their relationships to the family and trust beneficiaries,
their work won’t be scrutinized closely. Not so. The role of
trustee has potentially unlimited liability. Trustees may be
called to account for their investment choices, as well as for the
quality of their fiduciary judgments about trust distributions.
Consider the professional alternative
as your trustee
Given the complexities of modern trust management, one
would expect that businesses, such as trust companies and
bank trust divisions, would become available to meet the need.
One would be absolutely correct! That’s us!
Key qualifications that we bring to the table:
• Integrity. The single most important qualification for any
trustee is … trustworthiness. A trustee must live up to stan-
dards higher than those that prevail in everyday business.
• Investment experience. A trustee may be called upon to con-
sider the current income needs of a surviving spouse and the
capital growth needs of two children who face heavy educa-
tion expenses in years to come, and then to come up with an
investment program that does justice to both requirements.
• Administrative know-how. A trustee must make sure that
trust assets are properly titled and safeguarded, collect
income and distribute or reinvest it as the terms of the trust
direct, and perform any number of other chores.
• Tax and accounting capabilities. A trustee must be aware of
federal and state tax requirements, keep detailed, accurate
records, and submit timely reports to beneficiaries.
• People skills. The ability to serve as a trustworthy financial
advisor, both for the individuals who create trusts and the
beneficiaries that they name, may not be a formal require-
ment of trusteeship, but it’s important nonetheless.
We offer you our technical skills and our financial and
auditing infrastructure for the successful implementation of
your trust plan. Most importantly, we offer you our experience
as trustee. It’s a truism that every wealthy family is different,
and so is every trust plan. Yet all trust management is governed
by the legal standards of fiduciary duty. We’ve seen a range of
family circumstances, of market environments, of trust pur-
poses and objectives. We invite you to put our experience to
work for you and your family.
Shall we discuss your needs?
We invite you to learn more about our capabilities as trustee
for your family. You may designate us to serve as sole trustee, or
as cotrustee along with family members. Call on us to discuss
the possibilities.
© 2015 M.A. Co. All rights reserved.
Housing
Another cloud on the horizon is the
housing market. New home sales in
November were 1.6% below the year-
earlier figure, and existing home sales
fell 6.1%. Home price growth has slowed,
following the recovery of the recession
lows. Historically, the success of the
housing industry has closely tracked the
ups and downs of the economy generally.
An uptick in interest rates in 2015 would
not be helpful to home buyers or sellers.
Interest rates
Throughout 2014, investors were con-
cerned about what the Federal Reserve
Board would do, and when they would
do it. When interest rates go up, the
value of existing bonds necessarily goes
down, with the longest maturities hit the
hardest. As it turned out, investors’ worst
fears did not materialize.
The story could be different in 2015,
however. In December, the Federal
Open Market Committee reconfirmed
its patience with below-normal inter-
est rates so long as projected inflation
remains below a target of 2% annu-
ally. Given the drop in oil prices rippling
through the economy, that target is not
likely to be breached in the near term.
On the other hand, another quarter of
5% growth might stimulate the Fed to
accelerate a plan of lifting interest rates
back to normal levels.
© 2015 M.A. Co. All rights reserved.
A good year continued from page 1.
4

5. Newsletter Opt Out: We hope that you find this information helpful as you make financial
decisions. However, should you decide that you would rather not receive the newsletter, please contact
us at 800.495.1293 or wealthmanagement@fnni.com.
Deposit and Lending Products are: First National Wealth Management is a division of
First National Bank of Omaha.
Women
and Social Security
In actuarial terms, this confers a small but important extra
benefit on women as a group, because they live longer than
men. They will collect more in benefits over the course of
retirement than will men. The Social Security Administration
reports that 56.0% of beneficiaries age 62 and up are women,
and 66.7% of those over 85 are women.
On the other hand, the average Social Security benefit for
women is lower than it is for men, because both their years
of coverage and their lifetime taxable compensation tend to
be less. In 2012, the average annual Social Security income
received by women 65 years and older was $12,520, compared
to $16,398 for men. What’s more, studies show that single
retired women, including both widows and the never-married,
are more reliant upon Social Security for their retirement
income. For this group, Social Security benefits provide about
half of their income, compared with about 36% for elderly men
and 30% for elderly couples.
The shortfall has led to some calls for a rethinking of
the benefit structure. Last December, at a Senate Finance
Committee meeting on the subject of working women and
Social Security, Senator Ron Wyden (D-Ore.) called for chang-
es in the way that benefits are calculated for surviving spouses
(March, 2015) © 2014 M.A. Co. All rights reserved.
The general information in this publication is not intended to be nor should it be treated as tax, legal or accounting advice.
Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek
advice from an independent tax advisor based on their particular circumstances before acting on any information presented.
WWW.FIRSTNATIONALWEALTH.COM
Investment Products are: Not FDIC Insured • May Go Down in
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• Not Insured By Any Federal Government Agency
5
and closing of the gap between benefits received by disabled
elderly and other disability beneficiaries. Wyden also recom-
mended the creation of “caregiver credits” for those who have
to leave the paid labor force to care for children or disabled
family members. If such credits were offered, being a caregiver
would no longer have a negative impact on earning a Social
Security benefit.
Chart your own course
Whether or not changes are made to Social Security ben-
efits, women—and men!—need to take steps to maximize their
retirement capital. That means saving as much as possible in
employer-sponsored retirement savings programs, such as
401(k) plans and 403(b) plans. Contributions of up to $18,000
are permitted for these plans in 2015. Additional “catch-up”
contributions of up to $6,000 are permitted for those 50 and
over, who are closing in on their retirement start date.
Don’t overlook the opportunity to contribute to an IRA or a
Roth IRA, up to $5,500 ($6,500 for those over age 50). Having
a substantial capital base to rely on for retirement income will
dramatically improve retirement financial security.
© 2014 M.A. Co. All rights reserved.
Social Security benefits are gender neutral. They are based only upon work
history. A man and a woman with identical work histories will have identical
Social Security benefits.