Advisers should discuss longevity planning with clients as soon as possible, given that life expectancy is lengthening. This article addresses six issues you should cover. PFP/PFS section members can access the Retirement Resources Page, filled with guides, articles, charts and more on helping clients through the retirement planning process.
Make a Positive Difference in Someone's Life Financial planning is not only where the future is heading; it's also a way you can truly make a meaningful impact on someone's life. It could be one of the 10,000 baby boomers turning 65 each day for the next 10 years. Or, it could be a younger person who just needs competent, credible, ethical and holistic financial advice. In other words, they need a CPA just like you
Morningstar, which has suggested an alternative to the best interest contract provision, is among the groups that have proposed changes to the Department of Labor's fiduciary rule. One survey indicates that 93% of Americans believe professionals who give retirement advice should be required by law to act in their clients' best interest.
The Trump administration is working to finish an overhaul of US tax law by the end of the year, Treasury Secretary Steven Mnuchin says. "Whether health care gets done or doesn't get done, we're going to get tax reform done," he said. Stay informed by bookmarking and referencing this AICPA resource center on tax reform.
How to keep client information safe This report aims to evaluate the potential risks tax preparers will face during the next busy season. Learn how to combat widespread phishing schemes, guard against phone scams by ferreting out scammers, and securing and protecting your personal and financial data. Free report >
Legislators across the US are discussing and, in some cases, shoring up laws related to financial abuse of seniors and other vulnerable adults. Sen. Susan Collins, R-Maine, called such fraud "a growing epidemic that costs seniors an estimated $2.9 billion annually." PFP/PFS section members can learn more about how to help prevent abuse in this podcast series.
The IRS has ruled that a trust failed to qualify as a charitable remainder trust because it did not comply with its governing instrument. The situation highlights the need to carefully set expectations and communicate throughout the trust administration process. Learn more about CRTs and access client-friendly discussion pieces in Broadridge Advisor, available to PFP/PFS section members.
Some retirees and advisers focus on investing for income rather than using a total return strategy, which seeks to create long-term growth through a diversified portfolio. Investing for income may mean shifting more assets into higher-yielding dividend stocks, which may limit portfolio diversity and create problems if the market declines.
An economics-based approach to creating financial projections known as dynamic programming can offer clients guidance on how they should act now and in the future. This approach may excel at showing how spending and asset allocations may vary based on market conditions.
Advisers can help their clients' retirement portfolios last longer by using effective tax strategies. Traditional wisdom calls for withdrawing from taxable accounts first and tax-exempt accounts last, but in some cases, better results may be achieved by adopting a different strategy. Hear Bob Keebler, CPA/PFS, speak more on creative tax strategies in this recorded webcast, available to PFP/PFS section members.
Because a brokerage firm mistakenly rolled over funds from an inherited IRA into a taxpayer's IRA and the funds to settle a debt to the taxpayer's stepson were withdrawn from that account, the taxpayer was bound by the form of that transaction. Therefore, she was subject to tax on the distributions and the 10% penalty for an early withdrawal.
Clients who make excess contributions to individual retirement accounts can remedy that problem by removing the money up to six months after the day their returns are due for that tax year. Otherwise, they'll be hit with a 6% penalty on the amount for every year the money is left in the IRA.
Financial advisers differ on whether they should cut fees for clients. Those willing to give discounts say some clients might not need the full spectrum of services offered or that some clients might deserve a discount as their assets increase, while others say discounts can undermine the value of their services.
Video podcast series: Banish Burnout: Boost Your Personal Efficiency, Effectiveness & Profit
Now is the perfect time to regain control over your time and your business. This three-part video podcast series offers practical personal development and time management techniques you can use immediately to take charge of a business that's running your life. Part 1 (download slides) will help you identify what burnout is and why it happens (15 to 20 minutes).
Updated for 2017: Planning charts from Bob Keebler
As part of your member benefit suite, you have access to powerful planning tools and decision charts provided by Bob Keebler, CPA/PFS, to help you advise your clients on estate, retirement and tax planning strategies. Updated resources include DrawDownTM Strategies, Traditional IRA Distribution Flowchart and 75 Best Income Tax Strategies for Financial Professionals to Generate TAX ALPHATM.
Personal Financial Planning Section
is the premier provider of information, tools, advocacy and guidance for CPAs who specialize in providing
estate, tax, retirement, risk management and/or investment planning advice to individuals, families and
About the CPA/PFS Credential:
Personal Financial Specialist
program allows CPAs to gain and demonstrate competence and confidence in providing estate, tax,
retirement, risk management and/or investment planning advice to individuals, families and business
owners through experience, education, examination, and a resulting credential.
AICPA Personal Financial Planning Section Resources