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Meet Grace Ghezzi
Vice President of Financial Planning
CPA/PFS/CFF, CFP®, CFE, AEP®

Grace Ghezzi, a Vice President with Benefit Consulting Group, oversees the financial planning division of the firm. Grace advises clients on a fee-only basis, and her focus is on comprehensive financial planning. Her areas of practice also include estate and retirement planning, income tax planning and fraud examination.

Prior to her position with BCG, Grace was a partner at Grimaldi & Nelkin, CPAs, P.L.L.C. She served as an adjunct professor of Federal Income Tax Accounting at Le Moyne College. Grace has taught over 250 eight-hour Continuing Professional Education courses for Surgent McCoy, CPE, LLC and has consistently ranked in the top 25% of national discussion leaders in technical expertise.

Grace appeared regularly on TV’s "Financial Fitness" for twenty years and currently appears on WSTM’s "Financial 411" which she has done for five years. She has given hundreds of presentations to groups, including more than thirty-five State CPA Societies (including the New York State Society of Certified Public Accountants), the International Association of Certified Fraud Examiners, the Financial Planning Association, the Canadian Association for Financial Planning, the New York State Bar Association, the Institute of Internal Auditors, the Estate Planning Council, and the Institute of Management Accountants.

She was the recipient of the 2007 Frank Fernandez Le Moyne College Business Leader of the Year Award; the 2004 American Red Cross, Onondaga-Oswego County Chapter, Clara Barton Award for Volunteer Leadership; the 2002 Central New York Women in Business Award; and the 1999 Association of Certified Fraud Examiners Distinguished Achievement Award.

EDUCATION

• Bachelor of Science in Accounting, Le Moyne College, magna cum laude
• Licensed as a Certified Public Accountant in New York and Florida
• Certified Financial Planner
• Certified Fraud Examiner
• Personal Financial Specialist
• Certified in Financial Forensics
• Accredited Estate Planner

PROFESSIONAL AFFILIATIONS / COMMUNITY

• Member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants
• Member, past president and past board chair of the Upstate New York Chapter of the Financial Planning Association and the Central New York Chapter of the Estate Planning Council
• A founding member of the Upstate New York Chapter of the Association of Certified Fraud Examiners
• Serves on the Diocese of Syracuse Finance Council, Investment and Audit Committees
• Serves on the Planned Giving Committee of Catholic Charities
• Chair of the Planned Giving Committee of the Onondaga-Oswego Counties Chapter of the American Red Cross
• Past Treasurer of the Onondaga-Oswego Counties Chapter of the American Red Cross

Grace can be reached by email at gghezzi@bcgcny.com or by telephone at (315) 413-4460.

• Contact Grace Ghezzi
• Learn more: Click here for insights on personal financial strategies

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Anatomy of a Financial Plan
Many people don’t know what a financial planner does, or what a financial plan looks like. This is with good reason, since every financial planner I know does things differently. Let’s set the record straight! A comprehensive financial plan can truly be a roadmap to assist an individual in taking total control of his or her financial future. Certified financial planners are required to use a specific process in performing financial planning services. Here are those steps:

• Establish and define the client – planner relationship
• Gather client data, including goals
• Analyze and evaluate the financial status
• Develop and present financial planning recommendations and/or alternatives
• Implement the financial planning recommendations
• Monitor the financial planning recommendations

These steps may seem obvious to you, but it is important that we first come to an agreement as to the scope of services to be provided. We then must assess our clients’ goals, gather pertinent data, use this information to determine what should be done, and ensure that our recommendations are appropriate to meet those needs. We are only required to perform the above steps if our client wants us to perform this level of service, and agrees to compensate us to do so. For example, perhaps you are interested in investments and retirement planning only. Alternately, maybe you want the comprehensive financial plan but are not interested in retaining the planner on an ongoing basis to monitor the plan. It’s usually a good idea to put your agreement in writing.

There are also certain areas typically addressed in a financial plan. Those broad categories are:

• Insurance
• nvestments
• Income taxes
• Retirement planning, other goals (such as budgeting, debt management and education planning)
• Estate planning, including related goals (such as long term care planning)

Everyone needs financial planning. It has nothing to do with whether or not you are rich. You may want a planner that sells insurance or investments, or one that is independent of product. Fees vary widely, and usually depend partly on whether there are commissions or fees involved.

Each financial plan is unique. If you have millions of dollars, I would expect the plan to address estate taxes and the many techniques that may be appropriate to minimize its exposure. Perhaps life insurance in an irrevocable trust should be considered to pay estate tax. An irrevocable trust structured and administered properly can keep the death benefit free of estate tax. This is critical, otherwise the very assets being used to pay the tax are themselves subject to the tax. For illiquid estates with substantial real estate holdings or closely held businesses, life insurance may be of primary importance, otherwise the assets may have to be sold to pay the tax. Our federal estate tax exemption is a moving target, so flexible strategies should be implemented, since we know neither when we will die nor what the laws will be at that time. Currently, we have a two million dollar federal exemption and a one million dollar New York State exemption. The federal exemption is increasing to three and a half million dollars in 2009, unlimited in 2010, and decreasing to one million in 2011. If the fair market value of your assets exceeds these limits, you will be subject to estate tax. There is also a partial loss of stepped up basis in 2010, which means there may be a capital gains tax at death.

Investment planning has a significant impact on your readiness to be able to meet your financial goals. Do you have the right investment mix to meet your needs of growth, income, or a combination of the two? Can you sleep at night with what you have? This is what risk tolerance is all about. Have you established an appropriate emergency fund? Can you retire when you want to with the income stream you desire?

Retirement planning is critical. If you are unable to meet your goal based on your current strategy, you have three main alternatives: you can work longer, spend less after retirement, or save more prior to retirement. Perhaps you will work part-time once you retire.

What other goals do you have? Can you educate your children? What if a parent dies at a young age or needs a skilled nursing facility? What if your home was destroyed by a natural disaster or the stock market experienced a 10% correction? What is your plan of recovery? Even if you have sufficient income the year you retire, what impact will inflation have on your purchasing power, especially if you have a defined benefit pension with no cost of living increases? How will you pay for the rising cost of health care?

We haven’t talked much about insurances yet. My mantra is to insure what you cannot afford. If there is insufficient liquidity or assets at death to cover final expenses, pay lump sums such as your mortgage or estate tax, or fund income needs for your survivors, then life insurance is for you. Do you want to leave an inheritance for your children? Is there a pension that may disappear partially or in full at your death? Life insurance is the only way I know to add instant cash at a critical time. If you become disabled, where would your future income come from? Do you have adequate coverages on your homes and vehicles? Is there an umbrella policy in place to cover remaining gaps? Don’t forget about professional liabilities or director positions you may hold. Adequate protection is important in all of these situations.

Let us not forget about income taxes. You may need your investments at retirement to generate a specific dollar amount, net of expenses and taxes. How about those required minimum distributions once you turn age 70½? Do you know the rules and are you prepared to deal with them?

Okay, enough question for now. I could go on and on. As you can see, there is tremendous coordination required among the various areas of financial planning, which is what makes this comprehensive process so incredible. Every financial plan is different because every client is unique. Needs also change at various times throughout your lifetime. When should you begin? Is there a particular age or event that should prompt financial planning? Well, today is the best day to start. You are never too young or too old to begin the process. So quick, sharpen your pencil, get yourself a financial planner and get to work. Most people don’t have plans that fail --- they fail to plan.

• Contact Grace Ghezzi
• Learn more: Click here for insights on personal financial strategies

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Open Letter to Prospective Clients

Dear Financial Planning Prospective Client:

I’m looking forward to meeting with you in regard to personal financial planning. I have enclosed a questionnaire for you to complete and bring to our meeting. Also, please bring the following information with you:

• List of assets at fair market value. If you are married, please list ownership as husband, wife or joint.
• All life and disability insurance policies. Also, most recent annual statement, indicating cash value information. All information in regard to beneficiary designations or ownership of policies.
• All property/casualty insurance policies on your home and cars, and also your umbrella policy, if you have one.
• Most recent statements on all investments, whether pre-tax or after tax.
• Beneficiary designations on all retirement accounts and annuities.
• Income tax returns you last filed.
• Wills, durable powers of attorney, health care proxies, and living wills.
• Social Security benefit estimate statement.
• Anything else you feel may be of value or interest to me in regard to this process.

Financial planning services typically include the areas of estate planning, retirement planning, income taxes, investments, and risk management. We will make recommendations in light of the current economic and tax environment, your financial circumstances, and stated goals. In our gathering of information from you, you warrant that the information is true and complete to the best of your knowledge, and that you have provided us with all the essential information required for us to properly assist you.

The information we will provide you with generally includes recommendations for a course of activity, or specific action, to be taken by you. This may include referring you to an attorney, broker, insurance agent, or other professional, to provide services that are not offered by our Firm. We may assist in the implementation of recommendations, and may also review your situation periodically and suggest revisions. Our Firm assumes no responsibility for the actions of other professionals that may assist in this process.

In performing financial planning services, we will be relying on the accuracy and reliability of financial data provided to us by you and other professionals. We will not audit or review this financial information and will not express an opinion or any other form of assurance on it. In the area of investments, we take no responsibility for the achievability of investment performance, and you may encounter substantial risks which are inherent in investment of financial assets. Our engagement cannot be relied upon to disclose errors, irregularities, or illegal acts, including fraud or defalcation that may exist.

The goals, objectives, recommendations, and implementation plans that we may suggest will be based on key assumptions about the future, and changes in these assumptions or similar unforeseeable events could modify our suggestion and/or the information presented to you. We do not assume responsibility for updating our suggestions or information for such events or circumstances that may occur subsequent to the performance of our engagement.

Our fees will be based on our Financial Planning Fee Schedule, which is enclosed. This engagement will be performed under my direction, Grace B. Ghezzi, CPA/PFS, CFP®, CFE and my profile is enclosed for your examination. Our fees are payable on presentation of our invoice to you.

Please call me to set an appointment. Feel free to call me with any questions. Thank you for the opportunity to work with you in assisting you to meet your financial goals and objectives.

Very truly yours,
BENEFIT CONSULTING GROUP, INC.
Grace B. Ghezzi, CPA/PFS, CFP®, CFE, AEP

• Contact Grace Ghezzi
• Learn more: Click here for insights on personal financial strategies

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FINANCIAL PLANNING FEE SCHEDULE, 2013

FULL, COMPREHENSIVE FINANCIAL PLAN	$7,200.00
Fee may be increased for closely held business planning or unusually complicated matters.
PARTIAL FINANCIAL PLAN
Insurance (life, disability, property/casualty)	$2,000.00
Investments	$2,000.00
Income Tax Planning	$750.00
Retirement Planning	$2,000.00
Estate Planning	$950.00
Education planning, budgeting, debt management, and other related areas may be included in the above fees on an as-needed basis. Health and Prescription Drug Coverage Planning may be included for an additional fee of $300.
HOURLY RATE	$200.00
For financial planning and consulting for those interested in meeting for a set amount of time.
ANNUAL RETAINER	$1,200.00
Once the financial plan is done, the annual retainer keeps the plan current. The fee is billed $300 per calendar quarter.

A Comprehensive Financial Plan Considers Every Aspect of Your Financial Life

Insurance

• Life
• Disability
• Health
• Property/casualty
• Long-term care

Investments

• Asset allocation and diversification
• Budgeting & debt management
• Tax-managed investing
• The effect of inflation on returns

Income Taxes

• Marginal & effective tax rates
• Roth vs. traditional IRA
• Tax-free vs. taxable investments
• Annual projections

Retirement Planning

• Coordinate with other goals, such as education planning
• The value of compound investing
• The effect of inflation on retirement income need
• Projected income needs at retirement
• Two best times to increase savings
• Just paid off a loan
• Received a raise
• Where to save---how to achieve desired fixed income and still generate much-needed growth to maintain purchasing power

Estate Planning

• Family protection after death
• Appropriate beneficiary designations
• Minimize estate tax
• Lifetime directives - health care proxy, living will, durable power of attorney

• Contact Grace Ghezzi
• Learn more: Click here for insights on personal financial strategies

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