Published on October 22nd, 2009

Exxon Valdez interest payouts delayed

By CORDOVA TIMES STAFF

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An estimated $466 million in interest from the Exxon Valdez oil spill case has been delayed due to minor legal issues. Fisherman/financial planner Frank Mullen from Homer has placed some items for Exxon Valdez oil spill plaintiffs to consider.

"We have been waiting for six weeks for Judge Holland to sign the order authorizing distribution. Today I discover that Judge Holland has a bit of an issue with a stipulation in the order having to do with assignments from processors and has asked for clarification regarding this stipulation," Mullen said. "It is expected that our attorneys will file the clarification immediately. Then, hopefully, Judge Holland will be able to sign the order of distribution. Our attorneys indicate that they can distribute money for this round 20 days after the judge signs the order. So, best case scenario, payment in November. Hey, we've waited over 20 years," Mullen said.

"Remember that the recipients of this distribution will be very similar to those that received checks in December 2008, the "clean claims" list. If you are not on the "clean claims" list, you will likely wait until 2010 for payment. For tax-planning purposes, I would much prefer a check in 2010," Mullen said.

With regard to financial planning ideas Mullen has put together a list of financial questions asked frequently.

How much can I contribute to my IRA given the special legislation passed a year ago?

You can contribute a maximum of $100,000 from Exxon payments. Your contributions can be made incrementally. If you already contributed $40,000, you have $60,000 "room". In addition, every taxpayer with earned income can make an additional contribution (to the same IRA) of $5,000 per year or $6,000 per year if you are age 50 or more.

I stuck my first Exxon payment into an IRA at a bank and have done nothing with it. What do you recommend?

Earlier this year, there was good reason to be concerned about the economy and fundamental safety of your money. Although we are not out of the woods yet, conditions have improved. If you are sitting on cash in your IRA at current money market rates hovering around 1 percent, you may want to consider a conservative portfolio of bonds, which have produced nice returns year-to-date. Or, depending on your risk tolerance, you may want to develop a well-rounded portfolio containing stocks and bonds.

Rolling your existing IRA over from another institution is an easy task. Mullen can send you a one-page form to accomplish this. You would not need to contact your "other institution" at all.

I don't feel like I have a good grip on my long-term financial future. What do you recommend?

Give me a call so we can meet personally to discuss your current situation and talk about strategies for long-term retirement income. My goal is to offer you some ideas so that you can create an income stream that lasts as long as you do. There is no cost or obligation to meeting with me for a financial discussion.

Frank Mullen is a financial planner/fisherman. Frank will be in Cordova in November meeting with fishermen.

Cordova Times Staff can be reached at editor@alaskanewspapers.com, or by phone at 907-235-9151

 

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