Mary Grace Musuneggi Publishes Second Book

We are excited to announce the publication of Mary Grace Musuneggi’s second book, A Man is Not a Plan: Success Strategies for Independent Women, which gives women a map for living life to its fullest.

At the age of 25, as a widow with a nine-month old son, Mary Grace became keenly aware that Cinderella was a fairy tale and that her salary as a parochial school teacher would never be enough to realize her goal of owning a home. Mary Grace decided to take charge of her own situation and carve out the abundant life she wanted for herself and her son.

The story of her journey to become the first female agent in an insurance firm, to that firm’s first female financial planner, to Chairman and CEO of her own successful firm is filled with anecdotes, humor, and practical advice.

In her role as a financial planner, Mary Grace meets women of all ages who rely on a man as a financial plan with disastrous results. But you won’t find detailed instructions about how to make a budget here because this book is about more than money. It is about finding the courage to be CEO of your own life, whether a man is in it or not.

This book will inspire you to examine your own dreams and goals and get on the path of achieving them one step at a time. Grab a cup of coffee or a glass of wine and start reading. A Man is Not a Plan will change the way you think and the way you live.

Mary Grace Musuneggi to Speak at Chatham University Center for Women’s Entreprenuership

Beyond Market Risk: Financial Risks Everyone Should Know

By: Mary Grace Musuneggi, CLU, ChFC, CFS, RFC

When new clients come to our firm, they sometimes begin by saying, “I just don’t want to lose my money.” I normally laugh and say it’s the first time I’ve ever heard that, as most people who come here hope they will…and then I get a laugh from the client. No one ever wants to lose money. Even losing $5 on the lottery or $100 at the casino can be painful for some of us. But the thought of losing your retirement money is a nightmare.

So one part of our job is to assess the amount of risk a client is willing to take to meet their financial goals. For a few, the amount of risk they are willing to take is zero. These clients are typically referring to market risk, or risking their assets in the stock market.

In the financial world, though, this represents only one of many risks associated with money. Besides market risk, there is interest rate risk. Some people believe only investing in bonds will eliminate some of the market risk, but bonds face interest rate risk. When interest rates go up, the value of a bond can go down. We are facing that risk currently as interest rates were at a historic low and now they are rising.

Having a Power of Attorney: A Requirement for Good Financial Planning

As you have probably noticed, everything we do in the world of business and finance seems to require more and more paperwork. New consumer information laws require disclosure forms; there are forms to comply with the Patriot Act and the Privacy Act; we have forms to protect you from not getting the right information and forms to protect those who give you the information. All in all, everything requires a document or form of some sort.

If you are a client of The Musuneggi Financial Group, you’ve heard us talk about the need to have an updated will, beneficiary forms, powers of attorney, living will and family letter. Although having these documents was always important, in today’s world they are critical. Over the years, our firm has too often been party to situations where not having these documents cost our clients time and money; put strains on their businesses; and complicated relationships with spouses and family members.

And with so many changes in federal, state and local laws, even if you do have these documents, you need to be sure they are not outdated.

We encourage you to meet with your attorney to be sure your documents are up-to-date. If you do not have the proper documents, we encourage you to get them as soon as possible. If you don’t know an attorney, we will be glad to introduce you to one who is a specialist in the areas of estate and business planning. Once you update your documents, be sure to contact us so we can help coordinate your beneficiaries with your updated wills.

The way your assets are titled is also extremely important in case of a life-changing situation, including divorce or death. Be sure all of your investments, savings and bank accounts are titled correctly.

If you have accounts titled in your name only, you need to have a Power of Attorney who can act on these accounts if/when you are unable to do so. The solution may not be to add someone else’s name to the account. This could cause a gifting issue or other serious problems. Many married couples believe that because all of their accounts are held jointly, they do not need a Power of Attorney. But IRA’s are owned individually, and if you are disabled your spouse cannot automatically act on your behalf for these accounts.

And if you are the person who normally handles an account for another, such as a parent or even a spouse, there may be times that you need to act on their behalf when they are not here to sign or give consent. A Power of Attorney can help to resolve this issue. Note, too, that in accordance with privacy laws, our firm is not permitted to give a child, sibling, or even a spouse information on another individual’s account without written permission.

Therefore, we are now requiring all of our clients to provide us with a copy of their Power of Attorney. Please fax (412-341-0725) or mail this to our office, or bring it to your next appointment. If you do not have one, contact your attorney. We also have a Release of Information form that you can complete; this gives us written permission to reach out to your support person if needed, but it is not a replacement for properly executed POA documents. To request a Release of Information form, please call our offices.

Also know that if you have a child over the age of 18 in Pennsylvania, you are no longer the default person for handling your child’s affairs. In many cases you will need to provide a Power of Attorney to show that you can act on your child’s behalf.

As your financial consultants, we feel it is part of our responsibility to help you survive any unexpected life situations that happen, and to help you prepare for those who may survive you. This is one way we hope to accomplish this goal.

Replacing New Year’s Resolutions with New Year’s Routines

We all know what happens to New Year’s resolutions. By now most of them are a memory; or you might be thinking that some of these would be better left until next year. But in your financial world, resolutions should be replaced by routines.

Routinely, at the start of a new year you should be:

Setting goals. And putting them in writing. What would your perfect year look like? What are you major life plans for 2017? Share this information with your financial advisor.

Checking your credit score. Go to Credit Karma’s website, which is free and does not hurt your score.

Reviewing your credit report. We suggest Annual Credit Report’s website for free annual reports. Be sure to correct any erroneous information that can be hurting your credit score.

Reviewing your Social Security benefits and providing the 4-page report to your financial advisor. These are important for preparing your annual retirement analysis.

Doing an annual retirement analysis. Call us to set an appointment.

Reviewing your beneficiaries on your employee benefits, insurances, and investment accounts. Expensive mistakes are made when beneficiary arrangements are not complete.

Updating your Family Letter and your Estate Planning Documents. If you do not have a Family Letter, ask us for one. If you do not have Estate Planning Documents, ask us for a referral to an attorney who can handle these. For many people, the cost of dying without a will can be much more expensive than the cost of preparing these documents.

Ordering an inforce illustration on your life insurance policies to see that they are guaranteed to stay in force for as long as you find necessary. Some policies can lapse over time. (Not sure how to do this? Ask us!)

Finding a great CPA. If you need one, we know some! Ask her or him for a data collection booklet to help you gather your tax information so that no deductions are missed. Remember, if people cheat on their taxes it is usually because they cheat themselves…by not getting all that is owed to them.

Reviewing your property and casualty insurance. When was the last time you sat for a review with the people who handle your car and homeowners insurance? Do you really know what you are covered for? Or not?

Checking for unclaimed property. Start at www.patreasury.gov/claim. If you have ever lived in another state, try its website, too. We have had a number of clients find money that is just sitting out there, waiting to be claimed. This is better than the lottery because you can do it for free!

Joining our Starting Out/Starting Over program. A great way for young people to begin their financial life, or a great way for anyone to start their financial life over again. Learn all about the program on our website.

Remembering that no one plans to fail, but often people fail to plan. If you need help with your plan, we are here.

Good Grief: The Gift of Final Expense Planning

By: Christine Pikutis-Musuneggi, CRPC, CLTC

If you would rather spend your free time in retirement researching your next car or vacation instead of final expense options, you’re probably not alone. We all know that the earlier you begin saving for retirement, the better.

But what happens after you retire? Does your planning stop? Of course it doesn’t. We transition our focus to the next 30 years, or long term care planning. But sometimes that focus can be a little cloudy. When we retire, we spend a lot of time on our financial and physical health, strategizing our income and choosing the best medical coverage.

Long term care planning is the thoughtful consideration of our needs into and through retirement, and it is an integral part of a financial plan.

We often discuss plans for our home–will we “age in place” or downsize? We consider our social options, an encore career, time spent volunteering with an important cause, or spending more time with our friends and our family. And of course, there are the vacations.

With all of the distractions, it’s no wonder that we meet so many clients who are ready to retire but haven’t looked at their insurance, wills, or powers of attorney since their last major life event. In many cases this major life event was the purchase of the first home, marriage, a job change, or children.

The best time to start working on your long term care planning is before your health changes, and here are 5 tips to get started:

1. Review your Life Insurance Policies: If planning to use for final expenses, will they be in force 20-30 years from now? If used for final expenses, will you leave anything to your family? Are beneficiaries accurate?

2. Talk to your Attorney: Does your will follow your wishes? Is your power of attorney updated?

3. Talk to your Funeral Home: Pre-paid funeral plans are sold by funeral homes and allow you to make arrangements in advance. Is your plan complete?

4. Review Your Final Expense Insurance: Final expense insurance is there to cover any expenses or costs directly related to your funeral. Does your insurance coordinate with your pre-planning?

5. Review Your Family Letter: Is your letter accurate and does your family know where to locate it?

Most people are recognizing that final expense planning, especially planning a funeral in advance of the need, demonstrates a thoughtful gift. Pre-planning allows family to spend time together as they go through the grieving process.

As planners, we believe in the importance of pre-planning to ensure that your final wishes are met without causing financial strain on family. So before you start planning that next vacation, spend a few minutes getting started with the tips above.

 
Christine Pikutis-Musuneggi, CRPC, CLTC is a Financial Planner with The Musuneggi Financial Group. She guides clients in everything from budgeting basics to milestone moments like buying a home, paying for education, running a business, planning for retirement, and creating a legacy. Have questions about pre-planning or long term care planning? You can reach Christine at 412-341-2888 x314 or christine@mfgplanners.com.

Planning After the Election: What to Expect Under President-Elect Trump

Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us.” –Hal Borland

On January 20, 2017, Donald Trump will become the 45th President of the United States. Earlier in January, the Senate and House will convene with Republican majorities. How you update and manage your estate plan and financial plan under the Republican controlled Congress and Presidency can make a significant difference in your tax burdens and the way your wealth continues to accumulate. We’re here to help guide you during this time of transition and change.

We are monitoring the situation vigilantly, and we are already strategizing for a wide range of potential tax and regulatory changes in order to provide you with the best possible advice about any changes to your estate plan.

Let’s look briefly at how some of the preliminary details of President-elect Trump’s proposals could affect your estate.

Donald Trump’s proposals

Donald Trump has proposed across-the-board reforms in the tax codes, and while he promises to close up some loopholes, the general trajectory of his proposals is toward lowering taxes overall.

You can find the details of his tax plan on his website, but the most pertinent points are:

* Lowering income tax rates across the board, including significant raises to the standard deductions

* Reducing the number of individual income tax brackets from 7 to 3, with a maximum tax rate of 33 percent (down from 39.6% today)

* Reducing the business tax rate from 35 percent to 15 percent

* Eliminating the estate tax

Remember that any change to the tax laws requires Congressional approval and won’t happen automatically. In spite of Republicans being in control of the Presidency and Congress, there will still be negotiation and compromise reflected in the “final” tax law that comes out of Washington. And remember, the rules are only “final” until the government decides to change them again. This is one reason you must remain in contact with us as 2017 begins.

Recommendations, assuming President-elect Trump’s agenda is put into law:

* Be cautiously optimistic. The elimination of the estate tax in particular is likely to be welcome news if you have higher net worth (or even if you are on your way there), but this proposal may be subject to opposition or compromise in Congress. This compromise could range from a “sunset” provision to gradual phase-in or something else entirely. We’ll have to wait and see. Don’t assume that the “death tax” is automatically gone on Day 1 of the Trump Presidency.

* It’s more than taxes. Although taxes have long had top billing in many conversations about estate planning, the real reasons for estate planning are present, no matter who is in the White House and Congress. This includes planning for medical or financial decisions during incapacity, directing your financial legacy to your intended beneficiaries, asset protection, and more. No matter how hard Congress may try, they can’t seem to legislate away lawsuits, wasteful spending by young beneficiaries, and other issues that can be overcome through proper planning. The great news is that we might soon be able to focus our time with you on these issues almost entirely.

* Stay tuned for updates.

As tax and regulatory reform starts being fleshed out in Washington and ultimately enacted, we will provide recommendations to you.

Preparing your estate for the next administration

With all the volatility surrounding this now-concluded election cycle, the only thing of which we can be certain is change. Regardless of who you supported, any election requires you to take some action to protect yourself. Proactivity is the best way to protect your wealth against any changes to come.

Between now and when President-elect Trump becomes President Trump, you would be wise to schedule an appointment with us for a full review of your will, trust, and estate plan. Depending on your circumstances, there may be actions that need to be taken now, some that might need to wait, and some that need to be back burnered until we know the “final” tax rules that come from President Trump and the Republican Congress.

As always, we are here to help. Give us a call today to schedule an appointment.

Yes Christopher, There is a Santa Claus

Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.”
Frank P. Church, “Yes, Virginia, there is a Santa Claus”

By Mary Grace Musuneggi

With the onset of the holiday season, I find it easy to recall the days of my childhood and the memories of my Christmases past. When I was young, on random Saturdays, my mother and I would ride the streetcar to downtown and get off under the Kaufmann’s clock. I still remember the department store Christmas windows as we walked along Smithfield Street. I remember the bells of the Salvation Army Santa. I remember the Christmas music that filled the air.

The wonderful Christmas memories and traditions of my past are probably the reason that the holiday season is still as exciting to me as it was when I was a child. I have never let go of the joy and delight that the season can bring. I have never forgotten the spirit of the holiday. And I have never stopped believing in Santa Claus.

Almost 30 years ago, when my son, Christopher, was 10 years old, a group of his friends had 2013 gathered in our family room to play video games. The boys were talking about the hottest new game on the street, and as I passed by, Christopher called out to me, “Mom, can you buy this new game for me for Christmas?” I responded with, “We will see. Maybe Santa Claus will bring it for you.” With that the other boys began to laugh as they chided him with “You mean you still believe in Santa Claus?” And in a voice barely above a whisper, hoping I would not hear, Christopher replied, “No, I don’t; but my Mom still does.”

And I do. I believe in the Santa Claus that helps us find the time that we never seem to have the rest of the year. The time to shop and decorate and bake. I believe in the Santa that helps us find the extra energy needed to write out the cards, to wrap the gifts, to attend the parties, to cook the dinner. I still believe in the Santa Claus who, in years where money was tight, somehow made it appear to help to pay for the gifts and the tree and the new outfits. And I believe in the Santa Claus that brings family and friends closer and makes us wish for Peace on Earth and Goodwill to All, no matter what the state of the world might be.

Although for some the holiday season may seem lackluster with the state of the economy, the endless negative news from the media, issues facing the country or because of personal or family concerns, more than ever, once again, I believe that Santa will appear and bring the blessings of faith and hope; the kindness of strangers and the love of family and friends; the miracle of sharing; the knowledge that all we have is all we need; and the realization that we still live in the greatest country in the world.

And when years have gone by these blessings will still exist, and hopefully our current struggles will be lost memories and Santa will continue to be part of Christmas.

We at The Musuneggi Financial Group wish this year that the miracle of Santa will be part of this holiday season for everyone we know.

Can you remember…

No act of kindness, no matter how small, is ever wasted.” –Aesop

When you were a child, what was your favorite toy? Maybe it was a stuffed animal, a game, or a bike. Maybe it was as simple as a baseball glove or as complicated as a model plane you built from a kit.

Whatever it was, it was special…and you remember it to this day.

Every child deserves that experience. This is why we are so proud to be part of The United States Marine Corps Toys for Tots drive. Can you believe we’re celebrating a decade of service with Toys for Tots? In that time, we’ve developed a fantastic partnership with South Fayette High School and collected nearly 17,000 toys.

To commemorate our 10th anniversary with Toys for Tots, we’ve set a lofty goal: 20,000 total toys donated. That 20,000 toys translates to countless children and families waking up to a very special Christmas morning.

Our lobby is already starting to fill with toys and bikes, and we will continue collecting until December 8th. Toys can be dropped off any time during office hours, and we hope you’ll also join us for our annual Toys for Tots Holiday Donation party on Thursday, December 8th from 4:00 PM – 7:00 PM.

South Fayette Student Government members will be here that evening to “stuff a bus” with all of the toys and deliver them to the Toys for Tots donation center.

From all of us at The Musuneggi Financial Group, and on behalf of all the children who will receive these toys, thank you!

No Better Time than Now

By Mary Grace Musuneggi

If you own any kind of investment vehicle or retirement plan, or you participate in a 401k, you may have heard, or will certainly hear soon, about new government regulations from the Department of Labor (DOL) that will affect how people in the financial world do business. The word being thrown around is “fiduciaries.” This means that people in financial services have to put the client’s needs before their own.

Now you may be saying, “isn’t that the way it always had to be?” Well, no. Some advisors may not have had the best interests of their clients in mind, nor were they required to. As the law currently stands, broker dealers, insurance salespersons and investment advisors operate under the “suitability standard,” which merely requires that an investment is suitable for a client at the time of the investment.

This contrasts with the “fiduciary standard,” which requires advisors to avoid conflicts of interest and operate with full transparency-including doing at all times what is in the best interest of the client. We at The Musuneggi Financial Group are proud to say that we are fiduciaries and have always practiced this way. 

In addition to these new rules will come potential changes for investment managers, fee arrangements, mutual funds, investment accounts, retirement plans and financial planning services that you need to be aware of. There can also be a significant impact for small investment accounts.

You may have recently seen some significant changes to your company 401k’s. This may be the result of the impending DOL rule changes. You may have learned that a company with whom you have investments is eliminating their advisors or specific products.

Besides these new laws there are also potential changes in the economy, including impending changes to health care laws, interest rates, and government programs. We are therefore recommending, more than ever, that it is time for all investors to talk with their advisors and review their financial plans and investment programs. Outdated plans have no real value for you or your family, and you need to be assured that your personal programs are appropriate.

Some things that you should consider: