MFG Named One of Pittsburgh’s Fastest Growing Companies!

Using Emotion as Your Investment Guide?

As the market climbs and falls, your emotions are probably following suit. But could letting emotions guide your investment decisions cost you returns? In their latest Calm, Steady and Common Sense video, our partners at Dunham & Associates look at why emotions aren’t necessarily the best advisors:

Feel free to pass this along to family and friends. If you or they have any questions, we are here to help!

Is There Hope in a Bear Market?

Wondering if there’s hope in a bear market? Our partners at Dunham & Associates think so. Watch this video to learn why.

Feel free to pass this along to family and friends who are curious about the bear market, too. If you or they have any questions, we are here to help!

What Goes Up…Must Come Down

“No one can ruin your day without your permission.” ~Unknown

Back in 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.

Healthcare Power of Attorney: A Document Every 18 Year Old Should Have

As many of you know, earlier this year our Vice President of Operations, Rosalind Frazier, was devoted to caring for her daughter, Alex, after Alex was seriously injured in a car accident and required long-term medical treatment. When the accident happened, Alex was still 17 and Rosalind managed everything from doctor’s appointments to insurance claims. During her treatment, however, Alex turned 18, which meant her mother was no longer allowed automatic access to her health records and could no longer sign or submit paperwork on her behalf.

Fortunately, Rosalind and Alex were prepared for this change and had Alex’s Healthcare Power of Attorney ready to go on her 18th birthday. Without this important document, Rosalind wouldn’t have been able to help Alex with all of the critical decisions and paperwork that go along with medical treatment…and in the worst case scenario, Alex’s treatment might have been delayed.

To help ensure you and your loved ones are as prepared as Rosalind and Alex, we’ve invited Estate Planning attorney Tracy L. Zihmer of The Lynch Law Group back to share more detailed information about Healthcare Power of Attorneys. 

By Tracy Zihmer
Estate Planning Attorney
The Lynch Law Group

Many parents understand the importance of having a healthcare power of attorney in place in preparation for caring and making decisions for their elderly parents or even for their spouse. However, rarely do they understand how important the document can be when it comes to caring for their recent high school graduate, who is heading off to college at the end of the summer.

Once a “child” reaches the age of 18, he or she is no longer a child but a legal adult with all of the rights to privacy of any other legal adult. This includes the right to medial privacy under HIPPA. Parents that have been scheduling appointments, receiving test results, and making virtually all healthcare decisions for their child for the past 18 years suddenly find that they can no longer receive their child’s healthcare information so freely. 

This situation usually occurs when children go off to college or move away to start their first job and have a medical issue. Parents quickly learn that getting access to their child’s medical information and current medical condition can be challenging, frustrating and perhaps scary. This is especially true in healthcare organizations today, where medical staff have been trained to be afraid of legal action for releasing information to someone without authority to receive it. Simply put, if the child is not able to give permission for the nurse or doctor to release healthcare information to the parents, then that information will not be released.

The easiest way for parents and their adult child to avoid this situation is with a healthcare power of attorney. In this legal document, the child (the principal) appoints a person (called an agent), presumably a parent, to make healthcare decisions for him or her if he or she is unable to make those decisions. The document also allows the agent to obtain medical information about the principal. By planning ahead and signing a healthcare power of attorney, parents can avoid unnecessary stress when their adult child needs medical attention.

MFG Welcomes Katie Martin

We’re pleased to announce Katie Martin, Financial Advisor and owner of Martin Financial Solutions, has joined The Musuneggi Financial Group.

Katie is a great fit for our family because, like us, she keeps clients at the heart of everything she does. Read more about Katie here.

We hope you will join us in welcoming Katie and stop by to say hello during next week’s Open House:

OPEN HOUSE

Thursday, July 30
3:00 PM – 7:00 PM

1910 Cochran Road
Manor Oak Two, Suite 520
Pittsburgh, PA 15220

Stop by our offices and meet Katie!

Light food & refreshments will be provided.

Please RSVP to Chrissy by Tuesday, July 28
ChrissyG@mfgplanners.com
412-341-2888 ext. 312

Christine Pikutis-Musuneggi Begins Term as President of NAIFA-PA

Join us in congratulating Christine Pikutis-Musuneggi, CRPC®, CLTC, on starting her term as President of the National Association of Insurance and Financial Advisors of Pennsylvania (NAIFA-PA). Her term began July 1, 2015, and Christine is only the second female state president in the history of the state association. She is also the first president from the Pittsburgh association since 2008. Previously, she was the youngest female president of the Pittsburgh association.

As President, Christine will oversee 19 NAIFA associations across the state and 1213 members. She will lead the Executive Board in its advocacy efforts, which include working as liaison between congressional leaders and financial and insurance advisors.

Christine is excited to bring NAIFA’s annual conference to Nemacolin Woodlands, where one key focus will be creating opportunities for the next generation of advisors: “We aren’t only preserving our industry, we are ensuring fresh ideas-especially as they relate to technology-and our connection to a younger audience aren’t lost. Succession planning is such a large part of what we do for our clients, and we need to practice what we preach.”

Christine was also recognized as July’s Member of the Month by Chatham University’s Center for Women’s Entrepreneurship.

How Can Parents Help Adult Children with Financial Issues?

“There are times as a parent when you realize that your job is not to be the parent you always imagined you’d be, the parent you always wished you had. Your job is to be the parent your child needs, given the particulars of his or her own life and nature.” ~Ayelet Waldman

For those of us who have children, the months of May and June, with Mother’s Day and Father’s Day, remind us how important we are in our children’s lives. My mother used to tell me that “When God turns a mother on, he never turn her off.” So we are always the parent. It doesn’t matter how active we are in their lives, or how far away they live, or how independent they are; being a parent starts at birth and goes on and on in some way or another.

Some of the most difficult conversations that we have with our clients about their financial situations are those that have to do with parents who are caring for adult children. This situation may arise because the children have health issues or special needs; lost a job; went through a divorce; incurred bad debts; or made lifestyle choices that have brought them back to being a dependent in some way. And this situation takes many forms: the children may live with the parent; they may live on their own but can’t afford the bills; they may have incurred debt they cannot pay; or they may have asked the parent to cosign for college costs, their first house, or some other financial need.  And with the recent recession, jobs being scarce, foreclosures hitting all time highs, and student debt soaring, it isn’t uncommon for adult children to take refuge in the homes of their parents.

In the end, it doesn’t matter why the children are dependent as adults; what we try to focus on is how the parents can best manage once again assuming the job of caretaker to the child in their adult life.  All parents can probably understand this situation, even if they don’t agree with it.

In most cases, the issue with supporting an adult child is that it may be detrimental to the parents’ financial health and detrimental to the child’s financial independence.  Unless the parents’ funds are unlimited, this choice comes with serious potential consequences.

But you are a parent. And you want to help. Or you have a child who, for health reasons, you will always need to be there to help. As in most situations, there is a right and wrong way to help.

A parent providing a monthly income is a wrong approach. It will end when you do…and then what will happen? Parents providing a significant down payment on a house for the child is another wrong approach. If your child is buying a home and cannot afford the down payment, chances are this is a house the child cannot afford. Providing all the money to help the child start a business is another wrong approach. This makes you a partner in the business, and if it defaults the creditors will come after you for the money. Finally, reducing your retirement assets to provide money to the child is a wrong approach. A serious family meeting should occur before this is even a consideration. Your financial health is at risk; and if you have other children, the continuity of the family can be jeopardized if one child is favored over another.

But…if you have adequate assets, gifting from you to your children may be a great idea. Loans to a child for a business or home purchase may also be the right thing to do. Drawing up a contract and charging interest on the loan is a good idea and it can work well. If you have multiple children, reducing the dependent child’s portion of your estate may also be right. Not only is it a lesson learned, but other children who have not received help are more likely to feel they have been treated fairly. The “Sink or Swim” approach can be a good idea, too. It might sound a little heartless and unfair, but if you are providing assets and financial assistance for a child, you need to believe that when the time comes when you are out of assets and need help, they will be there for you in return.  If this isn’t likely to happen, then “Sink or Swim” could be the right thing to do. Establishing special needs trusts may also be the right approach because they can keep you financially secure and help your child in the short- and long-term.

The fact is, as parents we want to help our children with their financial situations and we think this is what any good parent would do. Just remember: Helping our children with their financial situations by teaching financial responsibility, modeling wise financial decisions, and making them independent is what makes a good parent great. 

What is Your Most Important Asset?

From www.LifeHappens.com

Can you name your most important asset? If you said your home, your car, your jewelry, or other possessions…guess again.

It’s your ability to earn a living.

Think about it: All of your plans for the future–from buying a home to putting your kids through college to building a retirement nest egg–are based on the assumption you will continue to earn a paycheck until you retire.

But what would happen if those paychecks stopped?

That’s where disability insurance comes in. It provides an income for you and your family if you are unable to work because of illness or injury.

At 45, attorney Peter Zatir attributed the fatigue he was feeling to middle age. Add to that a busy law practice and five active kids-the youngest just a year old-and it’s easy to see how he could have written off the early signs of a serious illness. When he finally visited his doctor, the diagnosis was grim. He had an aggressive form of thyroid cancer and was given less than a year to live. As Peter lay awake at night, his financial situation was one thing he didn’t lose sleep over. Watch his story to find out why…

And if you have any questions about disability insurance, call us at 412-341-2888 or email info@mfgplanners.com.