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:

Christopher S. Musuneggi Receives Alumni Achievement Award

On Friday, October 7, the Keystone Oaks School District presented Christopher with their 2016 Alumni Achievement Award.

This award recognizes outstanding personal and professional achievements and highlights Christopher’s work with The Musuneggi Financial Group, Single Steps Strategies, Dress for Success, and Toys for Tots.

Christopher was honored to be recognized by his alma mater at Friday’s ceremony. Please join us in congratulating him on this special accomplishment.

What Goes Up Must Come Down…and Probably Will

Starting Out? Starting Over?

By Mary Grace Musuneggi

Start here.

Are you a recent college graduate? A newlywed? A new parent? Starting your first job?

Are you divorced, widowed, out there on your own? Would you like to start a business? Have you changed jobs or careers?

Then you probably wish that you had help, advice and professional assistance with the many financial decisions you will need to make. I know from personal experience how important it is to get help with life’s challenges and changes. I have been married, widowed, and divorced. I have been a single parent. I changed careers a number of times until I started my own firm. And I know that my success has always been tied to the level of support I received when I needed it most.

I learned early about the importance of getting professional help. Many years ago, purchasing my first home also meant purchasing its metallic orange, black and silver wallpapered bathroom. I knew right away I needed to get rid of that wallpaper. But money was tight, and I didn’t want to spend too much. So I decided to do it myself. After all, how hard could it be? I was an intelligent, well-educated person. I thought I was capable of doing anything.

After three days of stripping, measuring, cutting, and hanging, the bathroom had gone from ugly to frightening. It became blatantly apparent that I had no talent for this kind of work. Everything I could have done wrong, I managed to do wrong. In the end I called a professional, and she charged me twice as much to undo the damage I had done.

This experience taught me some valuable life lessons:

#1: The cheapest way is not always the best way.

#2: Being intelligent means being smart enough to know what you don’t know.

#3: Talent, expertise, knowledge, and experience are invaluable tools that are worth paying for.

Most people who avoid working with a professional financial advisor think they can’t afford to. There is a common assumption that financial professionals are looking for clients with $100,000 to invest or a million dollar retirement rollover. But that’s simply not true. After all, most people have financial needs and concerns long before they have any big investment. Where do they go? What do they do?

This is where our financial coaching program “Starting Out/Starting Over” comes in. We’ve designed “Starting Out/Starting Over” to be affordable for anyone. The fee structure works like a gym membership or movie subscription, and the program provides assistance with budgeting, financial literacy, debt management, and investing 101. “Starting Out/Starting Over” also connects you to an advisor who is available to help you make wise financial decisions.

To learn more about this unique program please contact us at 412-341-2888. It can make an excellent graduation or wedding gift, too!

My Company is Downsizing. Now What?

Whether you’re hearing rumors about layoffs at work or you’ve experienced it firsthand, knowing these six strategies can help you handle being downsized.

Post-Brexit Bear Market? Oh my!

By Mary Grace Musuneggi

In the wake of the Brexit decision, I can’t help but think back to June 2008. I remember fielding calls from clients who were pretty sure they would spend their retirement years living under the Smithfield Street Bridge. As 2008 and early 2009 brought financial markets to their knees, we felt their pain. In lighthearted moments we would laughingly say maybe we needed to change the name on the door of the office from The Musuneggi Financial Group to The Musuneggi Dog Walking Gang. But the fact is it was more important for us to hold on to the belief that “this too shall pass”–and it did.

In 2014 we began to advise clients that we were at the historic highs of the stock market…and we had bond rates that were at historic lows. Double whammy! And although there is no crystal ball, and past history cannot predict future history, we do believe that history can lend some perspective.

At that time, Brenden Gebben, Portfolio Manager for Absolute Capital, shared an article in which he referred to the Ned Davis Research that says during Bull Markets, on average, the stock market has historically sustained upward trends for 331 market days before a 10% correction occurs and upward for 1105 market days before 20% correction occurs. So from this view we were certainly due for a correction.

And here it is. So what are some things we need to do? What are some things we need to remember?

1. Avoid trading too frequently.

2. Stop. Don’t panic. Trust your strategies. Trust your money managers’ strategies; after all, that’s what you’re paying for.

3. Don’t get out of the market at the worst times.

4. Be sure you are diversified. There are other market segments beyond just domestic stocks and government bonds. Be sure you understand them all.

5. Re-balance sometimes. Often. Frequently. Or whenever it is appropriate for your risk tolerance and for your objectives.

6. Don’t ignore tax ramifications. Return on investment is not the same as after-tax return on investment.

7. Know that we cannot control economies, performance over the years, or returns, but we can control strategies and asset allocation.

8. And remember, in 1921 the Dow Jones was at 60. Obviously it has gone up. But to get there it has gone up and down and up and down and up and down along the way. Time can certainly be more important than timing.

No matter what the markets are doing, your investment decisions need to be those that are right for you. At the right time. In the right allocation. To review your current strategy give us a call.

And if you’re concerned about a Bear market post-Brexit, we’ve just added a Bear Market Webinar to next week’s calendar. For more details and to sign up, click here or contact Chrissy at chrissyg@mfgplanners.com.