Washington Informer

Financial planning in your 50s is all about enjoying what you have and looking forward to an even better few decades to come. If you are in your 50s, you are hopefully looking forward to soon reaping the goals of your hard work of investing and saving money. However, if you don't have quite the portfolio you'd always dreamed of having at this point, there's no need to panic just yet. With some smart (and possibly even higher-risk) ventures, you can get back on track and still enjoy the life you've spent so many years building.

Here are some common financial planning concerns for people in their 50s and how to address them:

Retirement planning - By now, you've hopefully been regularly contributing to a 401(k) or an IRA plan for a few decades. As you get closer to retirement age—or if you plan on retiring early—you will want to take a look at living expenses. Take a long, realistic look at the lifestyle you will want to live once you retire and estimate what your expenses are going to look like.

Once you have that estimate, it's time to determine what your accounts will be worth when you retire. There are calculators on the Internet that can help you with these figures, or you can contact your financial planner to give you a more accurate number.

By taking into account any income you are likely to receive during retirement (social security, pension, etc.) as well as your savings, you can now accurately predict whether or not you will meet your goal or fall short.

This would be a good time to review your portfolio. Are you being too aggressive or too conservative in some of your portfolio choices? While these types of oversights might have been okay ten years ago, errors now can have a much more immediate impact .Consult with your financial advisor about any concerns you may have and make any allocation changes you decide are necessary to help ensure a safe, comfortable retirement.

Estate planning - While no one wants to think about their final expenses, finding a financial advisor who can help you with estate planning will help give you peace of mind. Estate planning ensures that your estate is handled in a manner that you approve of and that your children are not burdened with making your final financial decisions after your passing.

Consult a lawyer or an estate planner to help with this portion of your financial future. At the very least, an estate plan should include a will as well as a durable power of attorney. A power of attorney gives a designated person the right to make financial decisions on your behalf if you become unable to do so.

Your estate plan should also include a living will, which will notify people of your wishes regarding medical care in case you become ill or seriously injured and are unable to make decisions yourself.

Of course, one of the best things about financial planning in your 50s is enjoying the money you have (either through earning or a few years of saving). While financial responsibility is in your best interest, you can also afford to spend a little on the types of purchases that will add quality to the life you have.

Questions? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and visit our website at http://www.thewandwgroup.com. New Money Talk is a weekly article focusing on retirement, personal finance, and estate planning.

Comments and questions are welcome, but because of the volume of email, personal responses are not always possible.

A business begins with a great idea that will provide a product or a service to a community. Although every great idea deserves to be explored, not everyone has the same opportunity to develop his or her business ventures. Even though minorities currently make up 33 percent of our population, minorities own only 18 percent of the 23 million U.S. firms. In an effort to balance these figures, some lending institutions and loan programs have special programs in place to provide grants and loans to minority-owned businesses.

Loans for Minorities

Accion USA: Accion is a microfinance organization specializing in small business loans that serve minority populations. Loans range in amount from $500 to $50,000, have terms up to 60 months, and offer fixed annual interest rates from 8 to 15 percent.

Basic 7(a) loan program: The Small Business Administration (SBA) backs this loan program for existing and start-up small businesses to provide an avenue to receive financing when others are not available. 7(a) loans are the most flexible and most commonly used type of small business loan. Because the loans are provided by a lender, but guaranteed in part by the SBA, borrowers must meet the requirements of both the lender and the SBA.

The Microloan Program: This program provides short-term loans to small businesses through intermediary lenders, typically nonprofit community-based organizations. Six years is the maximum term for these loans, and $35,000 is the maximum amount. Interest rates depend on the lender, but are generally 8 to 13 percent.

CDC/504 loan program: This program is designed to provide funding for "brick and mortar" projects, purchasing land, buying existing buildings, modernizing, and purchasing machinery equipment. A Certified Development Company (CDC), a private, nonprofit corporation, works with the SBA and private lenders to provide financing.

Grants for Minorities

Grants are not provided by federal agencies for small businesses; however, some states offer small business grants to encourage small businesses in the local area. Check with your state's economic development agency, and your local non-profit organizations to see if there is anything available in your area.

Additional resources are available to open doors for minority owned businesses. Minority Business Development Centers (MBDC) offer training, one-on-one help, and other links to services and information that aid minority businesses. There are currently five regional offices. To find more information, visit their website at www.mbda.gov.

The Small Business Administration, along with many lenders, are encouraging minority owned businesses to apply for financing and increase their presence in the business world. Discussing your options with a financial advisor is a good idea to help you determine which programs may benefit you.

Questions? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and visit our website at http://www.thewandwgroup.com. New Money Talk is a weekly article focusing on retirement, personal finance, and estate planning.

Comments and questions are welcome, but because of the volume of email, personal responses are not always possible.

When investing your money, it's important to take risk versus reward into account. Like so many other areas of life, the risky path has the most potential for a big payoff, but the safe route is all but guaranteed to earn you at least a little something. Knowing your personal risk tolerance level and using this in conjunction with where you are in meeting your financial goals will help you determine the best way to balance your investments.

Smart Investing Means Knowing Yourself

What is your personal tolerance for risk? Would you rather hope for the big payoff and possibly lose money in the meantime, or would you prefer to invest your money in solid accounts with a small rate of return? While no investments are guaranteed, the small accounts can provide you with a fairly reliable return over time. All the same, riskier investments become significantly less risky, statistically, over years, often leading to great returns. After a year of dwindling accounts, it's hard to be confident that riskier investing can be worth it, but if you have enough time left before retirement, playing risk versus reward may be a great bet.

Smart Investing Means Knowing Your Long-Term Goals

If you are almost ready to retire, it's probably safest to keep most of your wealth in medium- to low-risk investments. While these types of investments don't have the same return potential as high-risk ones, they also aren't likely to leave you with less money than you started with. When you look at it like that, it may sound strange to recommend riskier investing to anyone. How can high-risk investing possibly beat the odds?

Try to think of risk versus reward this way: if you invest in a high-risk fund, the value may go up or down. When it's up, you are making money, which you can put back into the investment or invest elsewhere. When it goes down, you may be losing some money on the fund, but you can buy more shares at a decreased rate at this time, giving you higher earning potential in the future. When examined over the span of many years, the higher risk options often provide a greater rate of return than less risky investments. If you have many years before you retire, this may be a great method to build your wealth.

No matter what your feelings are towards risk vs reward, you should seek the help of a financial advisor. These professionals can help you determine both what your personal feelings are toward risk, as well as how to best meet your financial goals. Investments that may seem too risky on the surface may have better returns over time, and seeking the help of a financial planner is the best way to know what the right choices are for you. Maximizing your wealth with the right mix of risk is critical, and with proper research and guidance, you can make it happen.

Questions? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and visit our website at http://www.thewandwgroup.com. New Money Talk is a weekly article focusing on retirement, personal finance, and estate planning.

Comments and questions are welcome, but because of the volume of email, personal responses are not always possible.

If you worry about money, you are not alone nearly as alone as you think you are. A recent financial poll demonstrated that two-thirds of respondents felt anxious about their long-term financial situation, yet less than half of that actually seek formal help in making changes to their bottom line.

Fortunately, getting help isn't nearly as difficult – or as expensive – as you might think. Whether you make only a little bit of money and are worried about making ends meet, or you have a six-figure salary and are wondering how to make your money work for you, you can benefit from financial planning.

What is Financial Planning?

Financial planning is the process of meeting your life goals by properly managing your finances. It can be done by yourself or in conjunction with an investment professional. The basic steps to creating a financial plan include:

1. Establish goals. What are the goals you want to achieve? Do you want to get out of debt? Buy a home? Establish wealth? Figuring out where you want your money to take you will help you find a reason to start saving and investing.

2. Gather data. Once your goals have been established, it's time to gather all your financial data. This can include things like your tax returns, insurance polices, bank and brokerage statements, etc.

3. Evaluate your financial status. After you have all your documentation in one place, it's best to meet with a qualified financial planning advisor who will help you make sense of your financial situation. The objective point of view will help you reach new conclusions about yourself and your finances.

4. Develop a plan. After you and your financial planning advisor have gone over your status, your advisor will help design a plan that is right for you. Depending on your goals, this may include setting a budget, creating an investment plan, or planning for your estate.

5. Implement the plan. Once your financial plan has been developed, it is up to you to implement it. This can take anywhere from a few months to the next twenty years.

6. Monitor. Once the plan has been implemented, you should get together with your financial planner from time to time to evaluate how it is working for you. Most investments are long-term, so you can most likely expect to have annual reviews. Of course, if your life changes through job change or loss, marriage, divorce or another unforeseen circumstance, you should visit your financial planner. Your planner will review your plan and help you make any changes necessary to accommodate your new circumstances.

Benefits of Financial Planning

One of the key elements to financial planning is understanding where you want to go and how your money will help take you there. By examining your life goals and understanding how your finances will help you reach those goals, you can make informed and meaningful decisions about your finances.

Having a good financial plan in place can help you meet your financial goals such as getting out of debt or purchasing a home. A good financial planner can also advise you on how to protect your family and possessions financially in case of emergency.

Questions? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and visit our website at http://www.thewandwgroup.com. New Money Talk is a weekly article focusing on retirement, personal finance, and estate planning.

Comments and questions are welcome, but because of the volume of email, personal responses are not always possible.

From the outside, couples have it all when it comes to money. Many relationships have two working heads of household, with a nice, padded double income to provide stability. Other relationships have one full-time professional and one stay-at-home partner, who can take care of the house and cooking on a budget. It seems like the ideal scenario.

However, this is rarely the case. One of the biggest challenges of taking care of finances when there are two people to consider is that it's very easy for arguments and bad money habits to get in the way of the relationship. The result is often fighting, divorce, and a tough financial situation for everyone involved.

Why the Subject of Money is So Hard to Avoid

Of over half of the couples who undergo a separation or divorce, the culprit is money. No matter what type of income a family has, there rarely seems to be enough of it, and there never seems to be an easy way to discuss it. Many couples struggle with:

• How much of the family income should go to maintaining quality of life?

• How much of it should go into savings?

• Who should make the financial decisions?

• What happens when a nest egg disappears?

• What happens when there simply isn't enough to pay the bills?

• What if one partner is more of a financial risk taker than the other?

• What if there is a sudden change in jobs, family size, or financial situation?

When the economy takes a turn for the worse, all these questions become harder. After all, issues that might not have been a deal-breaker before suddenly hold the key to the entire relationship and the balance of power within it.

How Couples Can Address Financial Issues

As with any kind of long-term financial investment plan, the most important tool for being an economically sound couple is flexibility. Not only do couples need to be able to adjust the way they spend and view money, but they also need to be flexible with one another. Sometimes, this is as simple as finding ways to cut back the weekly grocery bill, and sometimes it's as huge as downsizing a home to start building a more viable retirement plan.

It's also important for both partners to take an interest in the long-term financial plans. This way, there are no secrets when it comes time to cash in a 401(k) or to start selling bonds to pay for the kids' college. If both partners know from the very beginning what type of savings plan is in place and what each party is contributing to the bigger picture, there is a much smaller chance of unpleasant – and potentially disastrous – surprises later on.

Relationships are difficult, for a variety of reasons not related to money. That's why it's best to start taking care of the financial questions early on. By working with a financial advisor before or after the marriage vows are exchanged, you can have that solid foundation firmly in place while you build an entire life together.

Questions? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and visit our website at http://www.thewandwgroup.com. New Money Talk is a weekly article focusing on retirement, personal finance, and estate planning.

Comments and questions are welcome, but because of the volume of email, personal responses are not always possible.

Beginning in April of 2010, some of the largest brokerage firms in the United States are imposing penalties on accounts that don't fall within a substantially high investment range. As part of a larger plan to focus only on those top-tier clients who bring in an impressive income, these brokerage firms are bypassing the potential revenue from first-time investors and the average American family.

One of the biggest announcements is the addition of quarterly fees averaging at $35 for any account under $25,000. While the fee may seem fairly small ($140/year), it represents a rather large percentage when you're considering investments in the $1,000 to $10,000 range, which are already subject to commission fees and decreased payouts.

Additional changes at top brokerage firms include:

• Limited or no payouts on accounts under the $50,000 to $100,000 range

• Annual fees on accounts under the $1 million range

• No more discounts for friend and family member accounts

Some companies have also moved accounts under the $250,000 range to a "call center" model, wherein clients are served by whoever happens to answer the phone, rather than invited to build a relationship with a single broker.

Why All the Investment Changes?

The reasons larger brokerage firms are making these changes are primarily to free up their brokers to concentrate on larger investment portfolios. Although these companies certainly make money on the smaller accounts, the time needed to handle them doesn't provide the best outcome for the company's bottom line.

Of course, this doesn't mean that only millionaires can open brokerage accounts and set up investment plans. In fact, some smaller financial firms are more than happy to take on the clients the other brokers don't want. This is especially true among community-oriented brokers who specialize in small opening accounts and first-time investors. Internet brokerage firms are also taking advantage of non-millionaire investors, offering low- to no-cost initial set up fees and restrictions.

How to Get Started Investing

If you're looking to start investing with any dollar amount between $500 and $25,000, it's a good idea to look at small brokerage firms first. Many of these firms have information packets for first-time investors, and they may provide a breakdown of how much your investment costs will be and how they relate to your initial investment. These types of firms may also cultivate a more personal approach to the process, so that even if your investment is low, you'll still get access to "your" broker when you have questions, concerns, or changes to make.

Although the big name brokerage firms are the ones most people turn to in the beginning, it's important to realize that there are other options out there. Whether you take a do-it-yourself approach with an online brokerage firm, or you find a smaller, community firm that works with other people with your financial background, the most important thing to remember is that you don't have to have tens of thousands of dollars in order to start building a portfolio of your own.

Questions? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and visit our website at http://www.thewandwgroup.com. New Money Talk is a weekly article focusing on retirement, personal finance, and estate planning.

Comments and questions are welcome, but because of the volume of email, personal responses are not always possible.

The Office of Prince George's County Executive Rushern L. Baker recently announced seven imdividuals who will comprise the Financial Advisory Committee (FAC) for the $50 million Economic Development Incentive (EDI) Fund.

Under the law that created the EDI Fund, the Committee is responsible for reviewing and providing credit guidance to Brad Seamon, the County's Chief Administrative Officer (CAO), regarding financial assistance applications of loans and grants from the EDI Fund. The Committee members are all County residents with backgrounds in business and finance.

"I want to thank the members of the EDI Fund Financial Advisory Committee for volunteering their time and talents to help spur economic growth in Prince George's County," said Baker. "Now with the Financial Advisory Committee in place we can approve our first EDI loans and grants and allow this investment money to begin creating jobs and opportunities for County residents."

The EDI Fund, signed into law on November 17, 2011, became operational on March 1, 2012. Applications for financial assistance from the Fund are being accepted by the Economic Development Corporation and as of this date, 39 discrete applications have been received. Those applications have been undergoing review for consistency with the statutory goals and priorities of the EDI Fund law, as well as for credit underwriting.

The first applications are nearing the completion of internal review by the EDC, FSC First, and the Prince George's County Economic Development Team and CAO. FAC review is a necessary step prior to the submission of applications to the County Council for notice or approval.

By law, the seven-member FAC shall be comprised of independent financial services professionals experienced and skilled in banking, finance, real estate, commercial development, accounting, or business. Three of the members were recommended to the CAO by the County Council and serve at their pleasure. The remaining four members were nominated by the CAO from the business community and from the general public, and serve at the pleasure of the CAO. The members shall serve for a term of 5 years with no compensation.

"The individuals selected to serve on the EDI Fund Financial Advisory Committee bring a broad range of backgrounds and experiences to the important task of protecting the County's interests and ensuring responsible stewardship of EDI funds," said Prince George's County Council Chair Andrea C. Harrison. (District – 5) "We look forward to their insight and recommendations as we move the County forward in the area of economic development with new opportunities for residents and businesses."

Members of the Financial Advisory Committee are:

Rochelle S. Andrews was raised in Montclair, New Jersey. She received her B.S. Degree in Management from Rutgers University, and her MBA in Marketing and HR Management from Vanderbilt University. While at Vanderbilt; Rochelle co-founded a class called the Initiative for a Competitive Inner City (ICIC).

Earl W. Checkley A Controller in Deloitte Consulting's Federal Government Services Practice, Earl W. Checkley has almost 20 years of experience leading and transforming organizations in the military, commercial and public sectors. He currently serves as the Lead Controller for the Department of Defense Segment within the National Project Controller Practice.

Kimmey Doney is Vice President of Wells Fargo Bank and has 15 years of professional banking experience with Wells Fargo. This includes the role of Financial Advisor managing an investment portfolio valued at $25 million, a Financial Sales Leader for Prince George's County area with responsibilities over a banking portfolio valued at $440 Million and a District Manager of the Prince George's Community Banking Market with responsibilities over 8 branches and 100 employees. He currently serves as the Chairman of the Prince George's Financial Service Corporation Bankers' Task Force.

Mia N. Pittman has over 20 years of experience in banking and finance. She currently works with the Federal Deposit Insurance Corporation (FDIC) as a bank examiner with expertise in commercial loan review. Prior to FDIC, Ms. Pittman worked for BB&T as a commercial lender covering Prince George's County, MD. She has been an instructor at a community college in Blue Bell, Pennsylvania where she taught the inaugural classes of a well-regarded small business program for women.

Timothy Sanders is currently President, Capital Lending and Mortgage Group, a Capital Funding Group affiliated organization. Mr. Sanders joined Capital Funding Group (CFG) in October 2008, where he is responsible for managing the operations of the bridge loan business, Capital Lending and Mortgage Group. In addition, he currently oversees Capital Spend Management, a supply chain management company owned by CFG.

Dion W. Smith is a career banker with over 30 years of experience in the suburban Maryland market. He is currently a Vice President and Commercial Loan Officer with Old Line Bank located in Bowie, MD., where he is primarily responsible for business development and portfolio management. Prior to joining Old Line Bank in 2003, Mr. Smith held commercial loan officer positions with local banks in Montgomery and Anne Arundel Counties.

Maurice C. Taylor is Vice President for University Operations at Morgan State University in Baltimore. In addition to his responsibilities at Morgan, Dr. Taylor has served as a member of several task forces and work groups for the Maryland Higher Education Commission. Prior to moving to Bowie, he served for six years as the Chair of the Baltimore County Human Relations Commission.

The National Newspaper Publishers Association has announced the appointment of William Tompkins to the post of president and chief operating officer of the 69 year-old trade organization. The appointment was made last week during the NNPA's annual convention in Atlanta.

The selection of Tompkins culminates a nine-month search conducted by Carrington & Carrington, Ltd.

According to criteria that circulated throughout the industry, the new president will be charged with developing a new vision for the organization and implementing strategic plans and programs that serve the needs of the more than 200 Black community newspapers represented by NNPA. The trade group is commonly referred to as The Black Press of America.

Tompkins, 55, currently heads his own consultancy firm, Williams Tompkins Associates, in Los Angeles.

Before starting his company, Tompkins held positions at Eastman Kodak, including General Manager and Vice President of the Motion Picture Film Group and Chief Marketing Officer for the company's Entertainment Imaging division.

Prior to joining Kodak, Tompkins spent 19 years at The Washington Post, last serving as vice president of Marketing. Tompkins has a degree in economics from Tufts University, where he graduated magna cum laude and also earned an M.B.A. from Harvard University.

Tompkins will report to Clovis Campbell, publisher of the Arizona Informant and chairman of the NNPA board.

In an address to the Conservative Black Forum hosted by Congressman Allen West (R-FL) focusing on the economic empowerment in the African American community, Robert L. Johnson, founder and chairman of The RLJ Companies, called for a renewed national discussion on the growing wealth gap which he referred to as a "wealth gap Tsunami threatening African Americans."

Johnson cited a recent study conducted by the Pew Research Center, which concluded "The wealth gap between white and African American families has more than quadrupled over the course of a generation; the racial wealth gap increased by $75,000, from $20,000 to $95,000; the median wealth of white households is 20 times that of black households; and at least 35 percent of African Americans have no assets."

In response to this compelling national crisis, Johnson stated that, "We must admit the harsh reality of a history of institutionalized racism and economic discrimination against African Americans is the primary cause of wealth disparity between Black and white Americans" and "we must be willing to talk about race recognition remedies at the highest levels of government as well as between Black and white Americans."

In his remarks to the Forum, Johnson listed several race recognition policy initiatives that could be discussed. For example, encourage majority-owned businesses to invest in black-owned companies by deferring the taxes on the economic gain similar to the FCC "tax certificate program" which motivated major media companies to sell to minorities and create a Treasury-backed fund to securitize short-term borrowing or emergency loans made by minority banks or other lending institutions to Black families provided these loans are marketed and made in a regulated and transparent manner. The securitized loans would encourage banks and lenders to make short-term or emergency borrowing available at reasonable rates and end "payday" lending as we know it today and break the cycle of borrowing at outrageous interest rates.

"Something has to be done to recalibrate our economic system to address these problems. We need the political courage to propose race-based remedies based on the disparity caused by past and present race discrimination. In the next 25 to 30 years, the majority of Americans will be black and Hispanic. There is a compelling national interest in addressing racial disparity and if we are to be a successful nation and compete globally, we must ensure that all Americans are given an opportunity to fully participate in the U.S. economic system," he concluded.