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R

Spring is at hand and with it comes the rejuvenation of everything living or imagined. It is a time when burdens seem lighter. A time when many of us decide that we can do more in life. We are filled with life’s possibilities and the sense that it is time to act.

Those possibilities can be large or small, far away or very close at hand. In whatever way that you want to do more in life, the first step is likely a careful examination of where you are right now and that almost always means a review of your finances. If your goals include more than simply spring cleaning, it’s time to establish a plan or examine the plan you have in place to make sure it’s still doing the job you intended.

For most of us, it is not that we are incapable of great things, it is that we have failed to manage the everyday details on the way to larger goals. And one of those details is either failing to adhere to a plan or failing to create one that’s based in reality. Whatever it is you would like to do next with your life, perhaps the time to take stock is now. Planning doesn’t have to be just a chore in the dismal science of economics. With the help of a qualified financial professional, you can build both your plan and your sense of optimism.

Best,

Your Financial Professional

“Without leaps of imagination or dreaming,

we lose the excitement of possibilities.

Dreaming, after all, is a form of planning.” -Gloria Steinem

sPRIng 2011 VoL 3 Issue 2

This information contained within is for educational purposes only and should not be considered specific financial advice. Always consult with a qualified advisor regarding your individual circumstances.

The word “estate” often conjures up images of vast wealth well beyond our own means. But that line of thinking can be dangerously naïve, particularly for women. Many wives out live their husbands, inheriting both assets and financial obligations. other women, including single working professionals or single mothers, may put off estate planning until it’s too late. But estate planning is simply a way of preparing for the unexpected and ensuring that your heirs and beneficiaries receive the assets you intend, with the smallest tax impact possible.

Who Needs An Estate Plan? you should consider an estate plan if you may face wealth transfer taxes, including estate and inheritance taxes. Also, if you’re an investor or entrepreneur, you’re likely to have appreciating and illiquid estates. you may want to look for ways to defer or reduce income tax or capital

gains tax exposure to help ensure a cost-effective and tax-efficient transfer of assets to your intended recipients.

Understand the Consequences Without an estate plan and a valid will, the state where you live will appoint an administrator to divvy up your estate, pursuant to state intestacy laws, and may appoint a guardian for your children. It’s not at all unusual for surviving families to be forced to sell treasured assets or the family business to cover estate or inheritance taxes or other debts—a situation that is, in many cases, entirely unavoidable.

Also, what the state deems fair and equitable may not agree with the choices you would have made. For example, you may have a special-needs child who may need more of your assets than your other children.

Beyond your family, there may be other beneficiaries you want to consider. you may want to leave a portion of your estate to a favorite charity. If you want to financially benefit a charitable organization most efficiently, you’ll need to spell that out as part of a carefully considered estate plan.

Leaving a LegacyThrough consulting with qualified legal and financial professionals and crafting your estate plan carefully, you can help secure your planning objectives. you can also help ensure you will have enough liquidity for your survivors to manage debts, tax obligations and expenses. A successful plan begins with careful consideration of your goals and your family’s future needs. Remember to make regular updates to match your changing circumstances.

My Plan

The new “Payroll Tax holiday” means the employee’s share of social security tax is reduced from 6.2 percent to 4.2 percent and the self-employment tax is reduced from 15.3 percent to 13.3 percent for this year only. If you earn $50,000 a year you could see a potential savings of $1,000.

here are three things to do with your tax savings, other than the online shopping spree that first came to mind:

1. Take this opportunity to jump start an emergency fund. experts go back and forth over whether it should cover your living expenses for three or six months, but no one argues that you should have one. 2. Consider saving the money in a tax-deferred account such as an annuity, IRA, 401(k) or other employer-sponsored plan. Contributing just $1,000 into a tax-deferred plan could turn into $10,000 in thirty years, as opposed to just $5,000 in a taxable account.* For a more accurate assessment of what your savings could be, try the Taxable vs. Tax Deferred Savings calculator found in the Tools & Resources tab at WorthForWomen.com.

3. Pay down a high-interest credit card. Maybe in the past you were only able to make minimum payments. now is the time to start paying more than the minimum on a high-interest card, while continuing with minimum payments on other cards. When you’re able to pay off the highest-interest card, continue with that strategy for the next card.

* example above is for hypothetical purposes only and uses an annual return rate of 8% with an individual tax rate of 25%. Actual results may vary.

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WhAT’s The sTATe oF youR esTATe?

Take 3neW TAx LAWs

Taxes don’t usually make a person’s list of ”favorite things,” but due to tax law updates in effect as of January 2011, extra change may already be found in many wallets this year.

Birds chirping and the scent of fresh-cut grass are clear signals to store away winter boots to make space for peep-toes in every “must-have” color.

Maybe this shopping season, you’ll consider putting your best foot forward to refresh your spring wardrobe and help others. ToMs shoes (www.toms.com) was founded in 2006 on the commitment that for every pair of shoes purchased a pair would be sent to a child in need.

The company outfits children in footwear to allow them to attend school. Without shoes, a child is often considered “out of uniform,” and unable to enter a classroom.

A purchase from ToMs could be the way for you and a very grateful stranger miles and miles away to do more in life.

Shoe Box

WhAT’s The sTATe oF youR esTATe?

Vision 2020 is an initiative of Drexel university College of Medicine Institute for Women’s health and Leadership. It aims to make equality a national priority through shared leadership among women and men. Last fall, 102 delegates from across the country met in Philadelphia to create an action agenda for at last achieving this long fight for equality.

Between now and the year 2020, Vision 2020’s Campaign for Equality will focus on five overarching national goals:

* Achieve pay equity, so that equal pay for equal work will be the norm in America.

* Increase the number of women in senior leadership positions in American life to reflect the workforce talent pool and demographics.

* educate employers about the value of policies and practices that enable men and women to share fairly their family responsibilities.

* educate new generations of girls and boys to respect their differences and to act on the belief that America is at its best when leadership is shared and opportunities are open to all.

* Mobilize women in America to vote, with particular emphasis on a record-setting turnout in 2020, the centennial of the 19th Amendment.

Penn Mutual, the presenting sponsor of Vision 2020, believes wholeheartedly in this movement. Leading this charge is Penn Mutual’s President and Ceo, eileen McDonnell, who spoke at the conference’s opening session. eileen stressed the importance of developing mentoring and sponsorship programs for women in the workplace; creating more family-friendly workday options for men and women; and helping to eliminate the notion of implicit bias in the workplace.

From the second-smallest state of Delaware to the second-largest state of Texas, and many places in between, Penn Mutual has continued to carry the momentum from the conference six months ago. In keeping with the aforementioned goals, several Penn Mutual agencies have plans for hosting speaking engagements and workshops, involving younger generations of women through Girl Scouts of America and The Junior League, and promoting financial literacy through community organizations and Penn Mutual’s Worth program.

For more information on Vision2020 and ways you can get involved visit www.Drexel.edu/vision2020/.

The Money MuseAccording to the IRs, the average American tax refund for tax year 2010 is about $3,000, a slight increase over the previous year (Cha-ching!). no matter the size of my tax refund, I can’t help but feel as though I’ve hit the lottery, if even for just a moment or two. My mind races with ideas about how to spend this windfall.

I am, after all, on sound financial footing. Life insurance? (Check.) Contribute the maximum to my 401(k)? (Check.) savings? (yes, indeed.) Credit card debt? (Zero, thanks very much.) And, after an annual review of my finances with my financial professional, I’ve made a couple of adjustments to help assure my plan is on track with some of the recent changes in my life.

It would appear I am in a good position to throw caution to the wind and have some fun. Then reality strikes. experts say home values have yet to hit rock bottom. With oil prices climbing steadily, I loathe filling up at the pump. And, unemployment news continues to rattle me. I am not a pessimist. I tend to maintain a sunny outlook when the forecast calls for gray skies. But I have to honestly assess the present situation and use my money wisely to make the most of my life.

Doing more sometimes requires doing less, at least for a time, and nearly always requires planning. My tax refund is a little boost that can help me achieve what I really want over the long haul. sure, it’s oK to indulge a bit. I’ve set aside some cash for a short spring trip and a wardrobe refresh (but not an overhaul) to go along with it. But most of my refund is earmarked for savings and investments.

With the market instability over the last couple of years, my children’s 529 plans took a hit. We may consider increasing our monthly contributions. After a call to my financial professional, she suggested we review some of our other assets, like our life insurance, to see how these may be used to supplement our college savings. I am confident all of these steps will help me get what I want now and most of all, what I desire for myself and my family in the future.

yours,

The Money Muse

Investing involves certain risks, including loss of value. The above story is for illustrative purposes only and is not a guarantee of future performance or success. Life insurance policy loans and withdrawals will reduce a policy’s stated cash value and death benefits.

© 2011 The Penn Mutual Life Insurance Company. Philadelphia, 19172 www.pennmutual.com

PM1474 04/11 A1CD-0406-07

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Whether you’re looking for easy listening to accompany a sunday afternoon stroll, or insightful ideas to get you through the heart of rush-hour traffic, here are a few suggestions for downloadable audio books that share ideas, advice and options to consider as you plan your financial future:

* Money Girl’s Guide to Retirement Planning: Strategies to Save and Invest for a Secure Future sorts through a number of investment choices, including IRAs, 401(k)s, insurance and annuities in an informative and practical voice, to help women achieve the retirement lifestyle they deserve.

* Determining Living Expenses for Retirement: Planning How to Live Well in Your Post-Work Life enables listeners to better gauge their financial situation by highlighting how many people underestimate their financial needs in retirement and overestimate their prospective resources.

* The Number: A Completely Different Way to Think About the Rest of Your Life urges people to assume responsibility and take control of their financial destiny. It brings commonsense ideas to life for everyone — from those accustomed to financial jargon to those who haven’t begun to consider their approach to retirement planning.

This information is being provided solely as a courtesy and is for educational purposes only. Penn Mutual makes no endorsement of or representation as to the completeness or accuracy of the information provided.

In Your Corner