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Sanibel Captiva Trust Company hosts investment seminar

By Staff | May 19, 2011

The Sanibel Captiva Trust Company capped the 2011 season with their final WOW seminar (Women.Opportunity.Wealth) at The Sanctuary Golf Club on May 10. CEO Al Hanser and Naples Trust Company President Adria Starkey greeted the ladies as they arrived.

Amy Lord, CFA, a senior portfolio manager for the Tampa Bay Trust Company, a division of The Sanibel Captiva Trust Company, presented the women with a slide show entitled, “What’s Your Plan?”

Lord noted in her initial remarks that women live longer, are more often caretakers, and more likely to be single. As such, it is in a woman’s best interest to become knowledgeable about finances and investing.

“A common myth is that women aren’t as good at investing as men…but women tend to be more patient and less impulsive, and women can think more objectively in volatile markets,” said Lord.

Lord began the seminar by touching on a topic foremost in the minds of many investors — inflation. Over the past 85 years the inflation rate has averaged 2.9 percent. Today the inflation rate is just 2.7 percent, but scores of investors believe the decline in paper currencies is creating a powder keg for future inflation.

Assets that may protect against inflation include: Treasury Inflation Protection Securities (TIPS), precious metals such as gold and silver, natural resources and commodities, and real estate.

Lord said it is important to approach these inflation hedges with a degree of caution. TIPS has been giving a negative return, she remarked, and gold is difficult to value. “Gold does not produce income, and it is only worth what someone will buy for it,” she said. “It is important for an investor not to get caught up in the emotion of the market.”

Her preference is blue chip companies such as Johnson & Johnson, Apple and Coca-Cola, which have pricing power.

“There may be more opportunities in equities,” she said.

Lord offered a chart that showed the historical return of various asset classes. T-Bills have averaged a 3 percent return, 10-Year U.S. Treasuries 5.3 percent, U.S. Large Caps 10.4 percent, and U.S. Small Caps 12.2 percent. To illustrate the power of compounding at a 10 percent annual return, she said a 20-year-old who invested $10,000 for eight straight years could retire at the age of 60 with $2.58 million.

Lord concluded her talk by discussing asset allocation in domestic equities, international equities, and opportunistic strategies.

After a question-and-answer session, the ladies enjoyed an end-of-season luncheon served by The Sanctuary staff.

“This was a ‘wow’ experience,” said Lord. “The questions were excellent, and I enjoyed meeting everyone. The purpose of these seminars is to inspire and empower women, and I think we did that today.”