Financial & Estate Planning

Baby boomers are retiring—or being forced to retire—at alarming rates. And this unprecedented rate of workers leaving their jobs is redefining what we mean by the word “retirement.” Many of these aging boomers aren’t quite prepared to handle the options that… Read More

As the American population grows older, the need for long-term care continues to increase. The Department of Health and Human Services has estimated that 70 percent of people 65 and older will need some form of long-term care services during their lifetimes…. Read More

Four of Douglas Fairbanks, Sr.’s best friends were told they would be remembered in his will, so they were surprised when the document did not mention them. Sixty days after his father’s death, Douglas Fairbanks, Jr. produced an envelope containing… Read More

Legend has it that the following exchange took place between F. Scott Fitzgerald and Ernest Hemingway: Fitzgerald: The rich are different than you and me. Hemingway: Yes, they have more money.     Maryland Estate and Inheritance Taxes Hemingway probably… Read More

Actor Jack Lemmon once found Rita Hayworth working her way through a large pile of letters by tearing them up-unopened! “Stop!” he cried, mortified. “There may be checks in there.” “Oh there are,” Hayworth nonchalantly replied. “But there are also… Read More

Before becoming a comedian, Jeffrey Jena worked as a grade-school teacher. “Children are stupid,” he says. “That’s why they’re in school. I’d lecture for an hour about percentages and interest rates, and at the end I’d ask one simple question:… Read More

Though born the son of slaves and reared by his master, George Washington Carver earned a degree in agriculture in 1896 and worked for the Bureau of Plant Industry at the U.S. Department of Agriculture, specializing in the industrial uses… Read More

What did the late King Prajadhipok, the last absolute ruler of Siam (now Thailand), do to prepare himself financially for life after his anticipated overthrow in the early 1930s? He took out unemployment insurance with French and British insurance companies…. Read More

“Anyone who says businessmen only deal in facts, not fiction, has never read old five-year projections.” ~ Malcolm Forbes, Forbes Magazine The financial plans created by BWFA project our clients’ income and expenses many years into the future. Unfortunately, sometimes… Read More

In January 2002, the Coen brothers made their first foray into Super Bowl advertising by directing a commercial for H&R Block. Why did they do it? “We have always been fascinated with the mysteries of the tax code,” the brothers… Read More

Igor Stravinsky was once ordered by an airport official to pay a surcharge for excess weight. When the composer vociferously expressed his annoyance, the official endeavored to explain the charge. “I quite understand the logic of it,” Stravinsky interrupted. “What… Read More

Often we hear from clients when they receive good news such as inheriting money, getting a large bonus or earning a major job promotion. However, we also want to hear from clients when the news is not so good, such… Read More

We are well aware of how declining stock prices affect our investment portfolios. However, little attention has been paid to how the recession is affecting pension plans, even though most pensions hold risky investments, such as stocks and real estate,… Read More

Disappointment occurs when you expect one thing and get something else. Disappointment in the service we receive from businesses occurs all too frequently these days. So, what should you expect from your financial advisor? Here are the basics: Your advisor… Read More

On June 9, 1978, Bob Specas attempted to topple 100,000 dominoes at New York’s Manhattan Center. Unfortunately, his effort to break the world record was thwarted during the preparations when a television cameraman dropped his press badge—and set off 97,500… Read More

Following on my last newsletter column, I will continue to look at how BWFA can help you implement the goals of your estate plan. For some clients, trusts are an important part of handling their assets today and cost-effectively transferring them… Read More

“I don’t want to achieve immortality through my work…I want to achieve it through not dying.” ~ Woody Allen The first member of the baby boomer generation (1946-1964) is turning 62 this year and becoming eligible for Social Security. Our… Read More

“Work as if you were to live a hundred years. Pray as if you were to die tomorrow.” ~ Benjamin Franklin Leonardo Da Vinci’s life expectancy was 30 years when he was born in 1452. When my Grandma Branan was… Read More

You must pay taxes. But there’s no law that says you gotta leave a tip. ~Morgan Stanley advertisement Nobody wants to leave the IRS a tip, but without proper planning, we often do that when our retirement ends (when we… Read More

“The large print giveth, but the small print taketh away.” —Tom Waits, singer and songwriter We have always advised clients that they should roll over their employer-sponsored retirement plan, such as a 401(k) or 403(b), to an IRA when they… Read More

Clients come to Baltimore-Washington Financial Advisors with many questions about their retirement. Often, these are financial — How much money will I need in retirement? How do I draw down my savings for living expenses? But we have found that… Read More

Many employers will begin adding a Roth 401(k) option to their retirement plans over the next few years. If your employer is among them, you will have to make a decision whether to contribute to the traditional 401(k) or the… Read More

In 1960, shortly before his execution by firing squad, the convicted murderer, James Rodgers, was asked whether he had any final requests. “Why yes,” he replied. “I’d like a bulletproof vest.” Unlike James Rodgers, most of us can have our… Read More

Ron Johnson is a physical therapist who loves to play basketball. During a routine medical checkup he “flunked” his stress test. It turned out that Ron had heart disease and needed quadruple bypass surgery. Fortunately, Ron’s heart disease was found… Read More

If you are considering getting professional help with your investments, you are NOT alone. Although the media constantly suggests that the average investor can and should “do it yourself,” the fact is most people want assistance. They are too busy… Read More

Our financial lives automatically become more complex. Even something as simple as selecting a mortgage has become a complicated undertaking fraught with danger. As in many other financial transactions, the interests of the lenders and brokers are not always in… Read More

When Dr. Milo Tedstrom arrived in California in 1928 he had a wife, a doctor’s bag, and all his possessions in a Ford Model A. When Dr. Tedstrom retired in 1977, at age 76, he had an estate worth 3… Read More

This fall, Hurricane Katrina slammed into Mississippi and Louisiana and forever changed many lives. It reminded us all of the uncertainties that we live with every day. In the wake of Katrina we were all frustrated with the delays, confusion,… Read More

Mr. and Mrs. Client are very excited; they have found a cottage in a retirement community and everything seems perfect! The only things standing between them and their dream retirement home are contracts, fees and refunds. Oh my! They’ve been… Read More

A common mistake people make is to leave their retirement plans (401(k), 403(b), 457, etc.) with their previous employer. When they do this, they incur costs which they can avoid by moving the funds to a Rollover IRA. There are… Read More

Wouldn�t it be great to have a written financial plan so that no matter what happens in the market or the economy, you still feel confident that you are going to be ok? At BWFA, we have found that where… Read More

Anyone who has ever looked into long term care (LTC) insurance knows it is not cheap. Depending on your age and the policy you choose, this coverage can cost thousands of dollars per year. If you are retiring and want… Read More

There have been well-publicized changes in the federal estate tax system, beginning with the new law that took effect July 1, 2001. The $600,000 federal exemption has been gradually increased to $1.5 million beginning January 1, 2004. However, much less… Read More

The Franklins Larry (age 60) and Jill (age 58) Franklin live in Ellicott City, Maryland and have two adult children, Joe (age 31) and Liz (age 33), who live, respectively, in Miami and Naples, Florida. Larry has worked for PFC… Read More

After preparing a highly detailed analysis of the Franklins� current financial position and their future income, expenses, taxes, and asset values, we were able to provide them with the following recommendations about their upcoming retirement and future estate. Larry and… Read More

After careful review of the Franklins� situation, we provided specific recommendations to them in the area of investments. Our investment recommendations are intended to help them manage their money in an intelligent manner that reflects their needs and special circumstances,… Read More

The table below demonstrates the dramatic changes we expect to occur during Larry and Jill’s early retirement years. (The numbers are approximate and are intended to show the trends in retirement income and tax liability for a typical retired couple.)… Read More