By Mary Grace Musuneggi, RFC®

Estate Planning should be a fundamentally positive discussion on how to best use client’s assets during the their lifetime; how to adjust to a changing economy or a changing lifestyle; how to protect the goals and plans that the client has for all stages of their life, and then, after death.

Securing the Client Relationship Through Estate Plannings

With the current state of the market, you might feel that the best thing you can do for your clients right now is to review their asset allocation or discuss historic returns, find new investments, or buy and sell stocks. Although we know that communication with your clients during times like these is imperative, it is difficult for some consultants to pick up the phone or schedule the meeting while their clients’ accounts are tumbling. During the last bear market, we significantly increased our client base as new clients came to us, when their own consultants were not reaching out to them. One woman told us, “I have a financial consultant, but she never contacts me,” to which I replied, “Then you don’t have a financial consultant”.

If you do not want to have your client conversations focus on falling returns or the bad economy because you are worried about how your clients may be rethinking their relationship with you, we find that times like these are the best time to discuss Estate Planning and secure your client and consultant relationships. As we know, a strong estate plan is more than just a will or some life insurance, nor is it simply the distribution of your client’s assets after they die. If these are the main bullet points of your estate planning strategy as a financial consultant, all you are doing is trading the depressing discussion of the client’s investment losses for the depressing discussion of your client’s death.

Estate Planning should be a fundamentally positive discussion of how to best use their assets during the client’s lifetime; how to adjust to a changing economy or a changing lifestyle; how to protect the goals and plans that the client has for all stages of their life, and then, after death.

More importantly, working with the client on their estate planning is a great way to secure the client relationship. As consultants, we actively participate in the process. We begin with a detailed questionnaire that we work on together with the client, which gives a real insight into their financial and lifestyle goals for now and an understanding of their financial goals for when they are gone. We use this information to begin a conversation with their estate planning attorney, and we make sure we are actively taking part in said conversation. For those clients that don’t have an estate planning attorney, we have a list of attorneys that we trust to do a good job and keep us in the loop.

We ask the client to prepare a “Family Letter” that they will share with their heirs that includes much more information than what is contained in a will, such as funeral arrangements, what they want in their obituary, and the names of friends or associates for the heirs to reach out to who may not see the obituary, such as those who are out of the country. It can also include their plans for assets prior to their death, such as charities they would like to contribute to during their lifetime, gifts they may want to make while they are still alive, and a list of websites and passwords in case someone needs to take over control of their computer.

We then invite the client, client’s family, or other heirs to join us in our offices for a “Family Meeting”. This gives us the opportunity to meet other family

members and demonstrate that we are an integral part of the client’s financial life; this builds trust with those who may be responsible for the clients while they are still alive and who will receive their assets after they pass.

We have often been told after these meetings how grateful the participants are to have had the opportunity; how happy they are to have a chance to discuss things they really wanted to know but did not want to bring up at the Thanksgiving dinner table; and actually, have been told many times that the family is glad we care so much about them and they feel like we are one of the family.

At our firm, we require our clients to designate a “Trusted Personal Contact” and to provide us with a copy of their Financial Power of Attorney. When their estate planning is completed, we request that the attorney provide us with the proper beneficiary designations for all of our client’s accounts so that they coordinate with the client’s wishes in conjunction with the decisions they made in their will. We provide the clients a copy of their beneficiary arrangements to keep with their documents and suggest that they get hard copies of any arrangements made for accounts or insurances that are not under our control.

We have come to this arrangement with our clients as we have realized over the years that most of the major issues we have had to address with our clients, that cause both client and consultant the greatest stress, is improper estate planning. We have had to watch clients with incomplete planning have no one to address their finances when they are disabled. We have seen business owners watch their businesses fail when there is no one to handle operational issues when they cannot. We have seen clients designate juveniles as beneficiaries with no trustee; leave everything to one child to share with the others; and, thinking that personal planning documents are all that is needed when someone owns a business. These are big mistakes that have big consequences.

I have heard that some studies say only 33% of Americans even have just a will. The fact is that the other 67% are going to die just like the 33%, and will be leaving behind something that someone else has to deal with. As their financial consultant, you can be a hero to the family by being the one who knows that everything is under control, because you have stressed the importance of estate planning. If you assume that because your client has a CPA, attorney, business manager, and insurance agent, that all of this is done, remember what happened to the estates of Prince, Michael Jackson, and even Howard Hughes. They all died without a will.

We do hear the objection from our clients: they don’t want to spend money on estate planning, because they have “no estate”, somehow believing that an estate is a house in the Hamptons. We laughingly tell them that ownership of anything means they have an estate, and if they have a dog or a cell phone, then they own something. Again, we don’t want to just concentrate on what will happen to the dog and the phone when they die, but what if they are disabled? Who gets the dog?

Good financial planning cannot be good if a large part of the planning isn’t done. While it is important to help our clients see their money grow and plan for them to not outlive their income, that is not the whole plan. Having the right people and processes in place, making sure legal documents are in order so the people and the processes work, providing the client with the sense of well-being while they are alive, and ensuring that, when they do pass, their wishes are fulfilled, is truly a great plan.

Recently I visited a client of mine in a nursing home. He was contented and comfortable, and more importantly felt that he was prepared financially and emotionally for whatever happened. A life well lived; sufficient income, final planning all completed. His family came to visit often. He told me he was grateful that none of them would be burdened when he was no longer here, and that they would not have the stress of having to take care of all the “arrangements”. Everything was done. It made me feel glad that I was part of this process.

When I want to begin a discussion about estate planning with my clients, I tell them the story about the greatest gift my mother gave me. Although she only had a high school education and made minimum wage most of her life, she was a hard worker and a planner. My father passed away when I was very young, and she raised me and my brother all on her own. Having a will was very important to her because she worried what would happen to us if she should pass away. Thankfully, it didn’t happen until she was almost 90, but being the planner she was, she took the time in her later years to do her estate planning and final arrangements. The day she passed away, my brother and I went to the funeral home to find that we only had to sign one piece of paper. Everything was done and paid for. This was most certainly a final, parting gift as it allowed us to spend our time over the next few days with family and friends, reminiscing about my mother’s life and reminding ourselves that this was just like our mom, always wanting to be in control of her own life.

Once I finish my story, I ask the client if they would like to be able to do the same for their family, and they almost always say yes. The discussion of estate planning begins, and our relationship is taken to a higher level. We truly become their consultants.

Mary Grace Musuneggi, RFC®, CLU, ChFC, CFS

For over 40 years, Mary Grace Musuneggi has been helping individuals and small business owners develop comprehensive strategies for pursuing their financial goals. An award-winning entrepreneur and Chairman & CEO of The Musuneggi Financial Group, Mary Grace is also a financial educator, award-winning author, and motivational speaker who frequently lectures on financial planning and lifestyle issues.

The Musuneggi Financial Group, LLC Phone: (412) 341-2888 Option 2 www.mfgplanners.com

1706 Advisors

The Story Behind the Name Change According to the Kahans...

Ben Franklin was born in 1706 and is known as the “father of American insurance.” We proudly continue this tradition of protecting people.

Lang Financial Group aka 1706 Advisors

Legacy and transition are important concepts to those in Financial Services and are integral to a successful succession plan. From the client’s perspective, it means continuity and longevity in the guidance they receive during their financial journey. In this issue, we explore a generational consulting firm embarking on its own succession plan and coming out as a rebranded entity that serves the future. As the firm sunsets its former name Lang Financial, Founder Stacy Kahan, RFC® officially passes the leadership reigns to her daughters, CEO Cara D. Kahan, RFC® and President Alana Lang Kahan, RFC® under the firm’s new name: 1706 Advisors.

Register: First, give us the historical roots of Lang Financial. How does your father/grandfather fit in this picture?

Stacy: My father, Stanford Lang, started in the insurance business, as an agent, in 1959 with New York Life. After a number of years, he decided to open his own brokerage. He became an official entrepreneur by opening Lang Kruke Financial Group in Cincinnati, OH, with the goal of better serving corporate and individual clients as an independent agency.

I inherited my father’s love of and knack for insurance and took insurance classes as a business major in college. After graduation, I moved to Chicago and worked at a number of large insurance and finance houses for ten years. Then, I decided to open Lang Financial Chicago and run it as a sister company to my dad’s. While we never owned each other’s businesses, we were each other’s sounding boards for years.

In the mid-2000s, my daughter Cara joined the business; a few years later, my daughter Alana joined as well.

Cara: We’ve been in business for over 30 years and are continuing to grow and modernize. 1706 Advisors is built on experience and constantly innovating. We have a modern approach to insurance, group benefits, and strategic planning that’s connected to what’s happening in the world today. Register: Cara and Alana… Discuss the life lessons you have learned from your grandfather and mother that transition to helping clients.

Alana: My mother, we always said, is our grandfather in a woman’s body. They each have a knack for understanding the person in front of them and giving them their undivided attention. People feel special around them.

Feeling understood allows people to open up and tell us what is on their minds. With that trust established, we can help them put a plan in place for their personal goals and dreams and help them protect their families and businesses.

Register: Relate your own personal journeys on how you settled into a career in Financial Services.

Stacy: My father was my hero, and I always admired how he cared so deeply about helping others. He started every conversation with “How can I help?” which made a big impression on me. I followed in his footsteps to study insurance and began to make my own way after college. Working for some larger firms was a great experience. Still, I loved the idea of running an independent agency and being able to provide in-depth, personal advice and attention to my clients. There were ups and downs along the way, but I started getting repeat business, referrals, and more clients.

Then my father’s health started to decline. He was diagnosed with Parkinson’s disease and Dementia and eventually needed full-time care. It was such a gift to our family that he had planned ahead and had long term care insurance in place to help cover his care during an emotional and challenging time.

Cara and Alana with Grandfather Stan

That’s one thing I love about what I do. I meet people and learn about their hopes and dreams, and then put plans in place to help them. Sometimes they never need the insurance or benefits, but if they do, it can be life changing.

Cara: When I graduated college with a marketing and entrepreneurship degree, I was not sure what I wanted to do. I ended up working for a large family business in Chicago. Each day, I would see this family come together and work towards a common goal.

During this time, I talked to Stacy’s personal coach, Leo, as I was working to determine my career path. After talking and talking and talking, Leo told me to build a list of what I wanted out of a job and my life from that job. He said, “Ignore the day-to-day, but 30 years from now, what do you want to have done for people?” So, I created a list. On the list were things like – work/life balance, helping people, making changes in people’s lives, providing guidance to someone, etc., etc. Then one afternoon after work Leo and I talked about my list. And I will never forget the first words Leo said to me after reviewing it. He said, “Cara, I hate to tell you this, but I think the insurance business is your place.” I was shocked. We continued to talk about what it meant to be in the insurance business and how it was the perfect career for me.

Later that week, I met with my mom and said, “I know you are looking for a new account manager. Can I apply?” She was surprised, and the rest is history.

Alana: I have always been a numbers person. I gravitate towards the definitive and love the story that numbers can hold. But I’ve also always been a people person. I love to travel and explore other places, cultures, and experiences that differ from my day-today. From the beginning, financial services fit my personality – numbersbased yet relationship-based, and an ever-changing industry that allows me to meet people from all walks of life. It was and is a perfect fit. At the end of the day, we help people using financial tools. We allow people to follow their path and dreams while ensuring their eco-system and the overlap between their professional or personal lives are financially protected from life’s uncertainties. As insurance brokers, we get a peek into how people tick, what they value, how they operate, and what their objectives and aspirations are. This mix of math and personal relationships has allowed me to flourish, helping me and creating my life path and journey and helping those around me.

Register: What strengths do each of you bring to 1706 Advisors?

Cara: The 1706 Advisors leadership team is the perfect mix of personalities and strong attributes. Stacy is an entrepreneur in every way possible – a true visionary. She leads development, makes sure we keep growing, and finds the most modern yet strategic solutions for our clients and prospects. I am the analytics – my ethos is driven by data, and I am deliberate and organized in my tactics. All decisions are wellthought-out and backed by facts that put our clients and business in the best position possible. Alana focuses on ensuring our clients, their employees, and family members are taken care of with the most optimal solutions. She will go to bat for anyone, advocating on their behalf with insurance carriers so their stories are told, and they aren’t “just a number.”

If you want someone on your team to back you up, Alana is the person you want.

Register: Let’s learn more about 1706 Advisors. It’s foundation of longevity looms organic. How does that impress your clients and prospects?

Cara: The fact that we have been in business more than 30+ years provides a level of confidence for our clients. Clients want to feel valued. We have learned that an independent agency with strong partnerships gives the client the best of both worlds. On the one hand, we’re independently owned and operated, giving us the freedom to make our own decisions and provide customized solutions while offering the most personal client experience. On the other hand, we’re a Partner Firm of United Benefits Advisors (UBA), a nationwide community of firms. With UBA’s additional resources, brain power, and negotiating skills, we compete with large insurance houses, providing cutting-edge solutions to our clients.

Register: What changes have been made along the way and what key elements have stayed consistent?

Cara: Independence allows us to be nimbler and more malleable in the ever-changing insurance landscape. We always maintain a client-first philosophy, and that has never changed. We continuously adapt to industry and economic changes, so our clients are always getting the most up-to-date information, benefits, and choices.

Register: Explain why you feel insurance is much more dimensional than just policies.

Alana: Insurance is a multi-dimensional planning process that includes assets, liabilities, cash flows, debt, medical history, personal and professional goals, and much more. As consultants, we take a holistic approach to our client’s needs, wants, and objectives. Insurance is simply the tool we use to solve problems, whether it’s an employee retention tool, a family protection tool, or a business protection tool.

Register: Relate a policy story that has helped, healed, or saved clients.

Stacy: One, in particular, stands out. Joel is both our client and our friend and has a life-long relationship with our family. Years ago, we were working with him to protect his business, and he pushed back on getting disability insurance. We see this all the time – people think “it won’t happen to me.” Joel’s CFO at the time had a different opinion. He told me that I made such a compelling case that he got the disability coverage anyway, even though Joel hadn’t agreed. A few years later, Joel broke his neck in an accident and lost the use of his legs. Joel told me, “Because of your passion and persistence, I’ll never have to sell my house or rely on the generosity of friends and family – and neither will my children. I will be financially independent for the rest of my life, and I owe that to you Stacy.” Stories like Joel’s are why we find so much meaning in what we do at 1706 Advisors.

Register: Why do you feel your clients stay with your firm? What do they value the most?

Cara: There are many reasons we have a retention rate of over 90%: • First, we believe in straight talk and building authentic, genuine relationships with our stakeholders. • We approach every client situation holistically, so all areas of a person’s life are considered and covered. • We’re problem solvers! We find clarity in the complex and work tirelessly to find the right solution. • We have a data-driven approach but believe in exceptional client service and personal attention. • Our client’s lives and businesses change over time. We help them update or change their protection plans so there aren’t any coverage or benefit gaps.

Register: Daydream about the future of 1706 Advisors. What are your goals and aspirations for the firm?

Alana: To grow while staying clientfocused. We want to continue changing the insurance industry and how our clients relate to the industry. Our goal is to make people feel empowered by their financial decisions. These decisions can make tremendous differences in people’s lives and their businesses.

Register: Moving to IARFC membership, what are the reasons that you became a Registered Financial Consultant?

Stacy: One of the hardest parts of the financial service industry is finding like-minded people with the same standards and values. When we found the IARFC, I knew this would be a community of like-minded individuals from whom we could learn and grow. The IARFC is continually focused on learning to make our industry stronger.

Register: How important to you are the ethical standards of the Association?

Cara: In our business, we are nothing more than our reputation. Reputations are built on having an extremely high ethical standard. We take comfort in knowing that the IARFC’s pillars are built around the highest ethical standards, and we will always have a professional association to align with.

Register: What can the IARFC do to help promote their members to the general public?

Alana: It is fabulous that everyone in the financial services profession knows (or should know) of the IARFC. It would be amazing if we could continue to spread the word about the Association’s standards so when people hear “IARFC,” they immediately know it represents consultants of the highest caliber and ethical standards.

Register: On to family dynamics… How do you relate as family working together? When does business stop and family time start?

Alana: We are so fortunate to have business partners that are also family. There is an inherent trust that was first built around family camaraderie, and this trust carries into our business. We have one common goal, which is to protect clients. To do that, we know we need to maintain a strong business organization. We have worked very hard over the past ten years to create boundaries, and we know those boundaries must be protected, respected, and honored. We are business partners, mothers, and sisters – that relationship is sacred, and we work daily to support each other in all aspects of our professional and personal lives.

Stacy and Alana in Iceland Register: What does a “time out,” “I disagree” situation look like?

Stacy: Of course, we are human and go beyond the normal business boundaries. In those moments, we take a step back, pause and take a deep breath. In a professional setting, we are business partners first, and if we need to reconvene later as a family, we will do just that.

Register: Lastly, what are your hobbies, interests, passions that drive you outside of work?

Cara: We all love to travel, connect with family and friends, and enjoy the outdoors. To us, having the ability to ground ourselves and take a moment to relax and re-examine our successes and failures is imperative. We all love a great adventure and spending time together…I know it’s surprising; we really like each other!”

Stacy’s Travel Adventures

Family Mexican holiday