Clients may have several behavioral biases that make it difficult for them to make smart decisions as they draw down their retirement assets. Advisers can help with decumulation by asking questions and presenting a range of outcome-oriented choices.
Reap the reward of payroll services Payroll services can provide CPA firms with an opportunity to build loyalty and stronger relationships with their clients. In this report, CPA experts detail their tactics for performing successful payroll services, how to mitigate risk, and the impact payroll can have as a value-added service. Get the FREE report >
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Financial professionals can help create better planning outcomes for clients with dementia by acting as part of a team that also includes designated decision makers, physicians and others. A first step for the financial planner is to encourage clients to draw up a durable power of attorney after receiving their diagnosis. Check out these elder planning resources (included with PFP/PFS Section membership) for more information on helping your clients who are aging.
Many households overspend, leaving them with little money to put toward retirement, so establishing prudent spending habits is critical. Resources such as the Bureau of Labor Statistics' Consumer Expenditure Survey can be helpful for benchmarking purposes. However, it is important to remember that this survey simply shows how other households are spending their money, not how they should be spending their money.
The existence of a 529 college savings plan may affect the financial aid eligibility of a client's child. When a couple is divorced, the impact will depend on whether the custodial or noncustodial parent owns the 529 account. The Managing College Expenses Center in Broadridge Advisor (included with PFP/PFS Section membership) contains presentations, articles and more on managing college expenses and decisions regarding funding college.
Two primary liability risks are expected for tax practitioners as a result of the Tax Cuts and Jobs Act. Professionals can alleviate these risks by using compliance engagement letters and providing clients with information about the law.
Changes made in the Tax Cuts and Jobs Act could affect the tax circumstances of clients with mixed-use vacation homes. Here is a look at how taxable income may differ under two different methods for allocating expenses between business and personal use. For more help with planning for your clients' personal finances after tax reform, check out this free resource hub (available to all) and this toolkit (for PFP/PFS Section members only).
New tax rules reduce the size of the deduction clients can claim for mortgage interest and generally bar deductions for interest on home equity loans. However, other changes may lower the total 2018 tax bill for high-net-worth individuals, so it's important to "review the overall tax calculation," said Larry Pon, CPA/PFS.
The past year has seen significant changes in rules regarding the deduction of personal casualty losses from natural disasters at the same time such disasters seem to be increasing in frequency. Find out how to calculate and report the deduction for these losses from residential property and other nonbusiness property for federal tax purposes.
It's critical for firm owners to create a succession plan and review it regularly. Here is a look at a real-world situation in which an advisory firm was able to transfer its assets to another firm by using a buy-sell agreement after one of the owners had a stroke. Check out this podcast series on succession planning for more information (for PFP/PFS Section members).
Formerly the Tax Rate Evaluator, Bob Keebler's Tax Planning Calculator has been updated for the Tax Cuts and Jobs Act. With this tool, you can finally see the full picture: the effect the multi-dimensional tax system has on your clients. The full-color, user-friendly reports generated by the Calculator will help you to explain all the planning options and variables to your clients. Check out all its features, including 15-year projections, gain and loss harvesting, IRA distribution calculator and more.
Comprehensive PFS exam can now be taken any time
The PFS exam can now be taken any time at national test centers open throughout the year. You no longer have to wait for one of the quarterly windows. (The processes for purchasing and scheduling the exam remain the same.) Many members find they are most successful when preparing with the online PFP Boot Camp and taking the PFS exam shortly after. Learn more.
Personal Financial Planning Section
is the premier provider of information, tools, advocacy and guidance for advisors 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