Life Insurance 101

When it comes to life insurance:

  • How much do you need?
  • What will it cover?
  • How can you get it?

Before you ask these important questions, it helps to know the basics. In about a minute and a half, this Life Insurance 101 video will provide you with an easy, direct introduction to what life insurance is and how it works.

Then when you’re ready to ask the big questions above, we can help you to find the answers.

    Securities offered through Grove Point Investments, LLC, member FINRA/SIPC. Investment Advisory Services offered through Grove Point Advisors, LLC. Grove Point Investments, LLC & Grove Point Advisors LLC are subsidiaries of Grove Point Financial, LLC. The Musuneggi Financial Group is not affiliated with Grove Point Financial, LLC or its subsidiaries. Click here to view Form CRS.

    Avoiding Phone Scams

    cell phoneWe are reposting this message from Senator Matt Smith—we thought it was useful and hope you do, too!

    Do Not Call List: Step 1 to Avoid Phone Scams

    Recently, I’ve heard from a number of constituents who are receiving unwanted telephone calls from telemarketers and others asking for personal information or claiming to be representatives of government agencies or businesses. As part of my ongoing efforts to provide constituents with the necessary tools and information to combat identity theft and fraud schemes, below you will find information about how scammers may obtain your personal information, and ways you can protect yourself. If you are receiving these kinds of calls, the first step you should take is to make sure you are signed up for both the federal and Pennsylvania Do Not Call lists. These lists are maintained by the Federal Trade Commission (FTC) and the Pennsylvania Office of the Attorney General and bar telemarketers from calling the numbers registered on the list.

    • You can sign up for the federal Do Not Call list by visiting www.DoNotCall.gov or by calling 1-888-382-1222.
    • To register your number on the Pennsylvania Do Not Call list, you can visit this link or call 1-888-777-3406.

    If you continue to receive calls after enrolling, you should inform the caller that you are registered on the Do Not Call lists and report to the FTC and Attorney General’s office that you received a call.

    • You can register a complaint with the FTC by visiting this link or by calling 1-888-225-5322
    • Complaints with the Attorney General’s office can be filed here or by calling 1-800-441-2555

    While signing up for these lists should cut down on the number of unwanted calls you receive, they only apply to legitimate, registered telemarketing businesses and will not prevent scammers or would-be identity thieves from calling you.

    Recent Scams and Ways to Protect Yourself

    According to constituents who have contacted my offices and reports from the Attorney General’s office, individuals are calling homes claiming to be from credit card companies, utility providers, or government agencies such as the IRS or the Attorney General.

    It can be difficult to figure out if a call is legitimate given the sophistication of some of these schemes. However, here are some trademark signs to look out for:

    • Many scammers rely on pressuring you to act, telling you that there is an emergency or a problem with an account. The caller might claim that there is an issue with your taxes, credit card or utility bills and that you must pay immediately to avoid penalties or service shutoffs.
    • The caller says you’ve won a prize, were specially selected, or won money in a foreign lottery, but to collect you must send money, provide a credit card or bank account number, or mail a check. They may even ask for your social security number to verify your identity.
    • Some scammers pretend to be law enforcement or lawyers. They may claim that there is a warrant for your arrest, that you have an outstanding ticket, or that a relative needs bail money.

    It is important to note that first contact with the IRS, Attorney General’s office, or your utility providers will not be a call from out of the blue, but through official correspondence sent through the mail. Likewise, the IRS and Attorney General will never ask for credit card, debit card or prepaid card information over the telephone.

    Many of these schemes are complicated and may seem legitimate. However, there are steps you can take to avoid becoming a victim.

    What You Can Do:

    • If you receive a call from a number you don’t recognize, don’t answer it and if you do, don’t press 1 or any other numbers. Many scammers illegally use robocall devices to call thousands of random numbers. If a person answers the call, they know the number works and will likely continue to call.
    • Find out if your telephone provider permits you to block phone numbers. Many providers offer this as a free service. Blocking numbers you know are illegitimate can cut down on the number of unwanted calls received.
    • Never give out your personal information such as billing information, social security numbers, bank account and credit card numbers over the phone. Especially if you receive an unsolicited telephone call.
    • Never wire money or purchase prepaid cash cards in response to a telephone call, whether it is from a stranger or someone who claims to know you.
    • Do not overreact. If someone calls you asking for money for a friend or relative, verify everything and don’t let anyone rush you.
    • If the caller is claiming to be law enforcement, ask for their name and badge number then hang up and call the agency they claim to be from to verify that they are telling the truth.
    • If you have not received written notice from the IRS, Attorney General’s office, or your utility company about unpaid taxes, penalties, or service shut offs, then the call is likely illegitimate.
    • Never forget that you are in control. You can always hang up and call the advertised public number for any business or agency to verify that you received a genuine call.

    It can be easy to fall prey to such schemes given their complexity. It is important to act immediately if you think you have been targeted.

    Steps to Take If You May Be a Victim of Fraud or a Scam

    • Immediately notify local law enforcement, the Attorney General’s Office, FBI, and the Federal Trade Commission.
    • Notify your bank or credit card company that your accounts may be compromised.
    • Stop payment on any checks you may have written or freeze your credit and debit cards.
    • Contact the three major credit reporting companies and put a fraud alert on your account

    Please contact my office if you need any help or have any questions. My staff and I are available to assist you and connect you to existing resources. All of my offices have sample dispute letters for fraudulent charges on bank accounts or credit cards along with brochures about how to avoid fraud and identify theft.

    I will be sure to provide updates on any new schemes as information becomes available. I will also continue to host informational seminars with the Attorney General’s office to help arm residents with the tools required to protect against identity theft and fraud along with free secure paper shredding events to help keep sensitive documents out of the hands of would-be identity thieves.

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    Christopher S. Musuneggi Selected for 40 Under 40

    PrintChrisWeb

     

     

     

     

     

    We have an exciting announcement to share with you — Christopher S. Musuneggi, our Vice President of Business Development, has been named to the Pittsburgh 40 Under 40 Class of 2014!

    Each year, Pittsburgh Magazine and PUMP sponsor the 40 Under 40 Program. Their goal is to recognize 40 people under the age of 40 who are committed to shaping our region and making it a better place for everyone to live, work and play.

    We are thrilled to see Christopher recognized locally for his professional accomplishments and leadership in the community. Please join us in giving Christopher a well-deserved round of applause, and look for his feature in Pittsburgh Magazine’s November issue.

    Name the New Baby…Beagle!

    baby beagleThe Musuneggi Financial Group needs your help naming the newest addition to our family: this adorable pup.

    As you may know, last year Mary Grace and her friend, Tom, lost their very special beagle, Duncan Oliver Watson Jones.

    Now, this little guy is nearly ready to move in—but he still needs a name!

    Can you help?

    Cast your vote for one of these names—or suggest an alternative–by emailing Sara at sara@mfgplanners.com.

     __ Bentley

     __ Quincy

     __ Oliver

    We’ll announce the results next month.

     

    Can I Afford to Grow Old?

    By Mary Grace Musuneggi

    picnicDid you ever think you would ask yourself that question? But we hear it all the time. It usually comes after, “Can I afford to retire?”

    Should I? Could I? What happens if I didn’t plan? What doesn’t happen if I did? Where do I begin? When should I start?

    These questions abound as our clients move into pre-retirement…the senior years. And whether or not they take the time to get the answers, it doesn’t mean that the questions will disappear. If you don’t get the answers, someone else certainly will have to deal with the questions someday: Your spouse. Your children. Your caretaker.

    Or the default option will be to let the government handle it all for you, as they take your assets as payment for doing the work that you should have done.

    Over the last year we have begun a program we call The Family Legacy Initiative, encouraging our clients to address the issues of aging as well as “Having the Talk” with family members who will at some point need to be part of the process. Estate Planning, Final Expense/Pre-planning, Long Term Care planning, Medicare Planning, Gifting and Asset Protection are just a few of the concerns that should be addressed.

    None of this is the “fun” stuff. But once the questions are answered then the fun stuff of enjoying the senior years can begin. The planning will be done. The questions will be answered. The kids will know what to do and they will be on board. The kids will know what you expect of them and what the costs will be. The financial worries will be addressed. The plans will be made the way you want them to be. The questions won’t remain to haunt you and your family day after day. The unanswered questions will not pop up every time there is an illness or a family dilemma.

    Sometimes we hear people say that their answer to all the questions is that they simply will rely on their spouse to care for them, or more often, that they will rely on their children. But some studies show that if you are currently over age 65, you have almost a 70% chance of requiring long term care services and financial and medical support.* And although most children are glad to help when they can, many of them are not prepared to financially, physically, or emotionally to take on the responsibility of aging parents.

    So how to begin? Because there is so much mis-information about issues of aging, and because even the government changes the rules for seniors and for estate planning periodically, the first thing to do is educate yourself about the basics.

    Join us at our upcoming workshops:

    Tuesday, August 26 –The Cost of Aging

    Michael Baker – Target Insurance Services of PA

    Thursday, September 25 –The Greatest Gift – Pre-Planning Your Final Arrangements

    Patrick McGowan, Conroy Funeral Home

    Tuesday, October 14 – What is Estate Planning And Why Should You Do It?

    Tracy Zihmer, Feldstein, Grinberg, Lang & McKee

    These can be a good start to having the Family Talk. So parents, bring your adult children; adult children bring your parents.

    Attendees will receive a complimentary Long Term Care Analysis and an Estate Planning Review.

    *The US Department of Health & Human Services (2013)

    Christine Pikutis-Musuneggi Named 2014 President-Elect of NAIFA-PA

    IMG_6699We are so pleased to announce MFG Financial Advisor Christine Pikutis-Musuneggi, CRPC, CLTC, has been elected President-Elect of the National Association of Insurance and Financial Advisors of Pennsylvania (NAIFA-PA).

    Next year, Christine will be the second female state president in the history of the state association, and she will be the first president from the Pittsburgh association since 2008. Previously, she was the youngest female president of the Pittsburgh association. As President-Elect, her goal for the association is to focus on succession planning in advisory practices and the industry. In the year leading up to NAIFA’s annual conference, which Christine plans to hold in Pittsburgh in 2015, she will focus on growth opportunities for young advisors: “By mentoring college graduates and young people into the business, we are preserving our industry and placing a focus on the longevity of planning.”

    Please join is in congratulating Christine on this well-deserved honor!

    Look for Christine’s recent feature articles in the Pittsburgh Post-Gazette and Pittsburgh Business Times.

    Stoportunities

    All things in life are temporary.
    If they’re going well, enjoy them…
    they will not last forever.
    If they’re going wrong, don’t worry…
    they can’t last long either.
    ~Author Unknown

    A note from Mary Grace:

    Having a firm belief in the philosophy of “Carpe Diem…Seize the Day,” I read the article below with great delight. Wanted to share it as a reminder that all days are precious and we need make the most of every one.

    Thank you, Jeffrey, for sharing your thoughts with the world.

    Stoportunities
    Posted on June 6, 2014 by Jeffrey Tobin

    finchesToday the finches died. I don’t know what happened, but the nest of baby birds is empty and they all lie dead on our porch.

    As I write this, the mama and papa finches are in a panic, twittering away with calls that sound like questions: “Where? Where? Where?” (To the left is a picture of those actual finches.) They dart around – always within a wing-span of each other – searching for their young. But the fledglings are gone. And it is very sad.

    The sole purpose of these birds was to create and raise the next generation. But now that purpose has evaporated. Opportunities are like that. One day an opportunity is there, and the next, it’s gone.
    I sometimes wonder how many people in Manhattan have never been to the Statue of Liberty. No doubt many of them have had a real desire to visit it, but what’s the rush? It was there yesterday. It is there today. It will be there tomorrow. It can wait another day.
    And suddenly the days are gone. Something has changed and the opportunity is lost.

    There will be more baby finches. But not these finches. And the Statue of Liberty will probably be there tomorrow. Probably. And hundreds will put off their goal of a visit today. Again.

    Do you have a Statue of Liberty of your own? I’m thinking in terms of things you really want or need to accomplish, but have been putting off because there’s no real sense of urgency. I’m talking about matters of real consequence – important opportunities that could disappear at any moment. This is the place where dreams come to a complete stop.

    Perhaps your Statue of Liberty is to take your big idea to upper management. Open a new retail location. Take a chance and start your own business. Apply for the other job. Maybe you need to spend quality time with a family member. Run that marathon. Set up the trust fund. Write your book. Pick one: It’s your Statue of Liberty. And the opportunity may well not be there in the morning.

    Perhaps it will be gone today.

    If this message is to be of any value, you’re going to need to decide what’s really important. You need to identify the matters of real consequence to your life’s purpose. The question isn’t really that hard to answer, because if you’ll take a moment right now, some of the answers will come to you immediately. They really will.

    The finches can’t turn back time. The stairs in the Statue of Liberty may one day close to visitors. Your opportunities – your dreams — may vanish as easily. Don’t let your dreams stop dead. Don’t let the day go by without naming them. Write them down. Set your purpose – and your will — to act right now.

    Act on your dreams before your opportunities fade into stoportunities.

    Jeffrey Tobin is a business owner, business coach, and speaker. To subscribe to his blog visit http://jeffreytobin.com/mailing-list/

    MFG Advisors Receive Five Star Awards

    RozWebChrisWebPlease join us in congratulating Rosalind Frazier and Christopher Musuneggi on winning the 2014 Five Star Award! The Five Star Awards recognize providing quality services to clients, and we are honored to once again be selected. These mark the third and fourth Five Star Awards for our firm: Mary Grace Musuneggi, President & CEO, won in 2012 and Christopher won in 2013.

    Additionally, Rosalind and Christopher will be featured in the July issue of Pittsburgh Magazine as 2014 Five Star Wealth Managers! Thank you to everyone who took part in the survey process that contributed to Rosalind and Christopher receiving this award.

    We also thank you all for the loyalty and confidence you’ve given us throughout the years. If you feel one of our partners or advisors has provided you with excellent service, please pass our information along to someone you know. We promise to treat your friends and relatives with the same care and dedication.

    Have you considered Charitable Gifting?

    Have you considered Charitable Gifting?

    Could it make the world a better place? Could it make sense financially?

    charityProvided by Mary Grace Musuneggi, of The Musuneggi Financial Group

    A gift to charity may prove to be a great financial favor to you. Some charitable gifting methods offer you notable tax advantages. Here’s a brief look at some popular options.

    Charitable remainder trusts (CRTs). These trusts can be useful estate planning tools. People with highly appreciated assets – such as stocks or real estate – are often hesitant to sell those assets and reinvest the proceeds because of the capital gains taxes that could result from the sale. Could the CRT offer a solution to this problem?

    CRTs are tax-exempt trusts. In transferring highly appreciated assets into a CRT, you may get: a) a tax deduction for the present value of your future charitable gift, b) income payments from the CRT for up to 20 years, and c) tax-free compounding of the assets within the CRT. Generally, you avoid paying capital gains taxes on the amount of your gift, and you may exclude an otherwise taxable asset from your estate.1

    After you die, some or all of the assets in the CRT will go to the charity (or charities) of your choice. (What about your heirs? You can structure a CRT in conjunction with an irrevocable life insurance trust so that they are not disinherited as a result.)1

    A charitable remainder annuity trust (CRAT) pays out a fixed income based on a percentage of the initial fair market value of the asset(s) placed in the trust. In a charitable remainder unitrust (CRUT), income from the trust can increase as the trust assets grow with time.2

    Charitable lead trusts (CLTs). This is the inverse of a CRT. You transfer assets to the CLT, and it periodically pays a percentage of the value of the trust assets to the charity. At the end of the trust term, your heirs receive the assets within the trust. You don’t get an income tax deduction by creating a CLT, but your gift or estate tax could be markedly reduced.3

    Charitable gift annuities. Universities commonly suggest these investment vehicles to alumni and donors. (The concept has been around since the mid-1800s.) Basically, you donate money to a university or charity in exchange for a flow of income. You (and optionally, your spouse) receive lifelong annuity payments. After you pass away, the balance of the money you have donated goes to the charity. You may also claim a charitable deduction on your income tax return in the year you make the gift.4

    Pooled income funds. In this variation on the charitable gift annuity, the assets you donate are unitized and “pooled” with the assets of other donors. So essentially, you are buying “units” in an investment pool, like an investor in a mutual fund. The rate of return on your investment varies from year to year.

    Pooled income funds often appeal to wealthier donors who don’t have a pressing need for fixed annuity payments. As just interest and dividends are paid out of a pooled income fund, it is possible to shield the whole gain from, say, a highly appreciated stock through such a fund. You get an immediate income tax deduction for a portion of the gift, which may be spread over a few consecutive tax years. Also, the balance of the assets left to the charity at your death may be greater than if a charitable gift annuity is used. Another nice option: you can put more assets in the fund over time, whereas a charitable gift annuity is based on one lump sum gift.5

    Donor advised funds. A DAF is a variation on the “family foundation” concept. Unlike a private foundation, it is not subject to excise taxes, and it does not require employees and lawyers to implement and administer. You establish a DAF with a lump sum gift to a public charity. The gift becomes property of the charity, which manages the assets. (You can continue to contribute to the fund.) Each year, the charity determines the percentage of the value of the fund which will become available for grants or other programs. You advise the charity how to spend the money. DAF contributions are tax-deductible in the year that they are made. You may avoid capital gains taxes and estate taxes on the gift, and the assets may grow tax-free.6

    Scholarships. These can be created at a school in your own name or in memory of a loved one, and you can set the criteria. Commonly, you and your advisor can work directly with a school to create one.

    Life insurance and life estate gifts. Some people have unwanted or inadequate life insurance policies that may end up increasing the size of their taxable estates. In such cases, a policyholder may elect to donate their policy to charity. By doing this, the donor reduces the size of his or her taxable estate and enjoys a current tax deduction for the amount of the cash value in the policy. The charity can receive a large gift at the donor’s death, or they can tap into the cash value of the policy to meet current needs.7

    Life estate gifts are an interesting option allowing you to gift real estate to a charity, university, or other non-profit – even while you live there. You may take a tax deduction based on the value of property, avoid capital gains tax, and live on the property for the rest of your life.8 (If somehow you can’t remain at that residence, the charity may opt to lease or sell it. You can gift all of a property or just some of a property as appropriate.)9

    Give carefully.  Charitable gifting is a complicated estate planning tool and is not suitable for all clients. If you are thinking about making a charitable gift, remember that the amount of your tax deduction will ultimately depend on the kind of assets you contribute, and the variables of your individual tax situation. Remember also that some charitable gifts are irrevocable. Trusts are drafted by licensed attorneys who will charge a fee for the service. Be sure to consult qualified financial, legal and tax professionals for more information before you decide if, when and how to give.

    Mary Grace Musuneggi may be reached at 412-341-2888 or info@mfgplanners.com.

    www.mfgplanners.com

    This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
    1 library.findlaw.com/1997/Dec/1/128372.html
    2 giving.mit.edu/ways/planning/trusts/index.html
    3 360financialliteracy.org/Life+Stages/Retirement/Articles/Charitable+giving/Charitable+giving.htm
    4 plan.gs/CategoryDetailList.do?orgId=327&categoryId=228
    5 cmu.edu/giving/planned/pooled.shtml
    6 worldlawdirect.com/article/570/What_are_donor_advised_funds.html
    7 younglife.org/Giving/LifeIns.htm
    8 purdue.edu/udo/planned_giving/life_estate_gift.shtml
    9 ucsf.edu/support/trustsandbequests/realEstate.html

    Exciting Announcement!

    We are pleased to announce The Musuneggi Financial Group is expanding through the addition of Tweardy & Associates.

    Like The Musuneggi Financial Group, Tweardy & Associates is a Pittsburgh-based independent and family-owned financial firm. This expansion will allow Tweardy & Associates to enhance the service they currently provide to clients, and it is the most recent development in The Musuneggi Financial Group’s consistent pattern of growth over the last decade.

    Visit John Tweardy, Jr.’s bio page to learn more about him, and in the coming months stop by the office and say hello!