We welcomed Tom Canon to the show to discuss all the details about the upcoming Westminster Fall Fest.  The annual Fall Fest runs from Thursday – Sunday over the last weekend in September each year. It’s a great way to stimulate downtown Westminster’s economy for local businesses, each year, over 40,000 people visit Westminster to attend or be a part of the Fall Fest.

Thursday always features the parade which kicks off the fest. Main Street is lined with spectators and volunteers for the event. Friday is always Midnight Madness for downtown shops, they have huge sales and stay open until 12am for excited shoppers to visit. It’s a great way to draw traffic to locally owned businesses and shops. Saturday and Sunday are the biggest days for the vendors, carnival rides, games and food suppliers/restaurants. Fall Fest is the largest event of the year in Westminster.

This month is life insurance awareness month. It is so important to have sufficient life insurance for you and your family. It is something that many people put off and wait until it is too late. If you do have life insurance, it is also important to annually review your current policy.

Examples of Why It is Important to Get a Policy Review:

1. Make sure you have enough – you can never leave your loved ones with “too much” but you can leave behind a shortage to cover expenses.
2. 1035 exchanges
3. Kill two birds with one stone
4. Update/review health insurance coverage in the process
5. Avoid waiting too long
6. Estate taxes are important to have and understand now

For our last show before the summer break, we were joined by Joe DiMaggio, Senior Vice President at Kelly & Associates and group health care consultant. Health care right now is having a major impact on the economy, which is what we wanted to discuss with Joe. At Kelly & Associates, they work with companies to set up group coverage and other services. One important task is to keep clients aware of the current state. With the Obama-care, Joe and his team has had to help customers navigate and understand the changes. It has made the insurance world much more difficult to follow and there are many uncertainties. The Obama-care changes have NOT made insurance more affordable. It increases costs and decrease the level of care. Mandates are going to be outrageous and include many unnecessary requirements.

Insurance companies pay the majority of medical costs in the US. People don’t know the actual cost of screenings, tests, exams, etc. because most just pay a small dollar amount co-pay. But when government starts to mandate health care coverage and requiring “one size fits all” products will waste money and increase costs. Someone in their 20’s doesn’t need extensive cancer testing or other screenings needed by someone in their 50’s or older. It will cause insurance companies to increase because of costs of unneeded procedures.

Group billing was created for individuals to be put together to qualify for the group rates. Age and health conditions are huge factors, so keeping a leveled, fair “pool” can be an issue. Another change was the movement to allow adults to stay on their parents’ health care coverage until the age of 26, regardless of marital status or career status.

Question from a caller: what is going to happen when someone new takes office and doesn’t agree with the ObamaCare system and the health care reform? It would take time to unwind it if someone takes office that doesn’t agree with it, but it will take time to change and will need the funding to do so. For the sake of the nation, changes need to happen sooner to stop the uncertainties before they are in place.

For information about health care options, you can call Kelly & Associates at 410-527-3400.

Biggest Mistakes Made Regarding Financial Planning:

1. Deferring saving for retirement to pay for other things
2.  Failing to plan for the impact of aging – physical restrictions and medical costs
3.  Not updating beneficiaries
4.  Fail to communicate within your family about money
5.  Avoiding to create/sticking to a budget
6. Making investment decisions based upon emotions
7. Neglecting to periodically conducting a risk management review  

Today we keep with our usual theme of being an unusual financial radio show. Our interesting guest, Paul Carney joined us to explain his experiences dealing with dramatic traumas and crippling natural disasters. Of course our first topic we were curious about was the recent catastrophe in Japan. The earthquake/tsunami hit the people of Japan and people across the world were eager to help. Mr. Carney reminded us, however, that it is very important to consider the cultural differences in other societies when attempting to offer assistance. Many times helpers rush in without fully knowing or understanding the circumstances. Paul explained that is important to understand this to avoid further stress or other traumatizing experiences to the people that are in need of help. Cultural differences can range from Macro-Cultures (nations, countries, etc.) to Mico-Cultures (states, counties, towns, neighborhoods). It is vital to learn, understand and respect the culture of the people in need.

Mr. Carney explains how spectators and people who were not physically impacted by a disaster can be vicariously traumatized. People many times want to help in a situation but see many disturbing and damaging sites by doing so. Also, the media often spreads fear and traumatizing visuals to the public. There is a “ripple effect” when it comes to a tragedy. There is a point of impact which hits directly and then the effects slowly spreads to other areas, people and situations.

Paul Carney explained that people interested in helping or donating to people suffering from disasters can visit contact their local Red Cross facility or by looking up information on the FEMA website.

Delegate Justin Ready joined the show over the phone to give us an update on an important issue that we were discussing on the show with him last week. Delegate Ready explained a possible bill to give instate tuition breaks to illegal immigrants. Many people, including Delegate Ready, believe this is a bad idea and unfair to other college students, as well as those who have immigrated legally. It will also be very expensive to fund and could even increase tuition to both in-state and out-of state students . He explained that there is a petition currently circulating to oppose this bill. Go to www.mdpetitions.com to fight this decision, there is a target number of 200,000 signatures to make an impact.

It is important to take precautions in case a disaster impacts your family. Our advice, as always, is how you can be prepared financially.

1. Develop an EMERGENCY FUND. Set aside liquid, ready funds in an easily accessible account like a savings account. This can be helpful to quickly repair damages caused to your home from a natural disaster, or any unexpected financial emergency.
2. Keep cash on hand. It is important to have cash available in case of a disaster that may cause banks to be closed or a power outage that would prevent you from accessing accounts.
3. Maintain a list of all your accounts with the account number and company contact information.
4. Flood-proof important documents. Keep in a safe area in bags or another water-proof container.
5. Use cell phone and email as a back-up record keeper. Keep important phone numbers saved in your cell phone and copy vital information to your personal email for easy access away from home.
6. Be sure to have a fire proof filing system
7. Don’t give all account information/cash/credit cards to just one family member in the event of an emergency. Disperse funds and give cash to all members of your family incase you are separated for any reason.
8. Have an emergency credit card available with no balance and ready for immediate use.
9. Take updated “inventory” pictures of your home, property, valuables, etc. on a digital camera for records. 
10. Have an insurance policy review annually.

April 6^th, 2011

Segment I Guest: Jay Merwin, Estate Planning Attorney Bowie & Jensen

Segment II Topics: Top 10 Strangest Last Will & Testaments/Top Industries That Will Be Affected by NFL Lockout

Jay Merwin, an estate attorney at Bowie & Jensen explained the importance having of an updated will, designating power of attorney and creating a living will.  A will is something everyone should have to document you wishes in case of your death. Having a power of attorney gives authorization to someone you trust to act on your behalf in a legal or business matter, in case you are unable to do so. A living will includes instructions given by individuals specifying what healthcare actions should take place in the event that they are no longer able to make decisions due to illness or incapacity, a person is appointed to make such decisions on their behalf. These are all important precautions to take. Many people are reluctant to go through the process of estate planning. It is very important to do so and have your wills and other documents up to date. Don’t wait until you make your next big trip or make sure you will is updated, death or serious injuries are more likely to occur in every day travels than just on an airplane. Prepare yourself and your family before it’s too late. Even though it may be difficult to think about or discuss with your family, it is crucial to have these legal documents established. Young families need to remember that having a will also determines where your children will go if something were to happen to you and the other parent without the need of the court system. It is also important to title your assets correctly so that you funds are given to the places you want them to. This is an important reason why it is best to go to a lawyer to create your will and assist you with other important legal decisions. They can guide you through the process correctly and ensure that you are in good standing.

Beneficiary designations are important to be updated from time to time, especially after major life events such as, marriage, divorce, birth of children, etc.  Non-probate assets such as 401k policies, life insurance policies are instruments that need correct beneficiaries, but are not included in a will. Having an estate plan created for you allows them all of these instruments to flow and work together.

Powers of Attorney come into play immediately upon signing or upon any type of disability. Spouses usually name each other in order to sign for the other. But typically, powers of attorney are given when an individual is unable to voice their opinion or make decisions for their assets.

Recent change in the law was required because of a recent case where a person’s trustee stole assets, so a ramification was made to limit the duties and hold accountability. This will help prevent mishandling of assets by the person appointed as power of attorney.

Living Trusts are often stated in an individuals will name in case of death. Or it can be instated if a person is ill and does not want to handle their personal finances. This is transfer some or all of his property to a trustee, who holds that trust property for the benefit of the beneficiaries. The trustee has legal title to the trust property, but the beneficiaries have equitable title to the trust property. Appointing a trust for a vacation home or property that is a distance away from your residence is also an option, so they represent you if a decision needs to be made and you are unable to physically be there.

A Pet Trust ensures that your pet will be cared for in case of your death, you can name the person that you would like to look after your loved pet. 

Estate planning is an important part of financial planning to ensure that all your assets are set up properly, which is something that we work with regularly at Aquino & Wolpoff Financial Group, LLC. Knowing and understanding changes in laws and regulations is important. We can answer questions about these issues.

10 Strange Will and Testaments

1. Harry Houdini: Known master escapee and daredevil passed away in 1926 on Halloween. He promised his wife, Bess that he would contact her in the afterlife, using a pre planned ten digit secret message that only she would know. His last will and testament stated that a séance should be held each anniversary of his death.
2. Gene Roddenberry: The creator of Star Trek included instructions to have his ashes scattered via space satellite orbiting Earth in his last will & testament. The act was carried out in 1997.
3. Charles Vance Miller: Bequeathed a large sum up for grabs to any Toronto woman who could produce the most offspring in the decade following his death. Four winners emerged in a tie for nine children; each receiving about $125, 000. This wish became known as the “Great Stork Derby”.
4. Leona Helmsley: A real estate investor and hotel owner that was dubbed “The Queen of Mean” established a $12 million trust to her Maltese dog in her last will and testament. This was later overruled and reduced to $2 million dollars by a judge and the remaining balance was split between her two grandsons, on the condition that they visited their grandfather’s grave each year. 
5.  Eleanor Ritchey: The heiress to the Quaker State Refining Corporation left $14 million to her 150 stray dogs. When the last dog dies, the remainder was to go to Auburn University Research Foundation to research canine disease. 
6. Nina Wang: The richest woman in Asia left her entire estate valued at $12.8 billion to a charity that she and her late husband founded in 1988. After her death, her lover, Tony Chan, a fortune teller, married man and “opportunist” forged a fake will in the attempt to claim her fortune.
7. Dusty Springfield: The British singer, known for hits such as, “I Will Follow Him” made her cat priority in her last will and testament. Instructions stated that the cat was to be fed imported baby food and serenaded with Springfield’s songs. Additionally, the singer also arranged for the car to marry his new guardian’s pet cat.

Six Industries That Will by Hurt by the NFL Lockout:

1.       Beer & Beverage Industry (NFL official sponsor)

2.       Television Networks (Primarily, Direct TV because of the loss of their NFL Package)

3.       Vendors, Souvenirs & Tourism

4.       Video Games

5.       Food Industry

6.       Sporting Goods