Health care surtax will take a bite out of trust and estate income
The American Taxpayer Relief Act of 2012 imposes a 3.8% net investment income tax on trusts and estates that generate more than $11,950 of net annual income, in addition to being subject to the top federal income tax rate of 39.6%. Experts advise that there are ways to protect trust assets from the new tax, including the use of grantor trusts and a strategic approach to managing the underlying investments in the trust. PFP/PFS members save an additional 10% off the already reduced AICPA member price on Tax Planning After the Healthcare Surtax, which analyzes and explains the application of the 3.8% surtax, strategies to avoid the surtax and more. InvestmentNews (free registration)
(5/8)
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New: Unlocking the Mystery of Healthcare Planning for Retirement From Medicare to Medicaid to long-term care, this 2013 guide will help you unlock the mysteries of healthcare planning for your clients, including Medicare Advantage Plans, Medigap and more. Available free in electronic format to Personal Financial Planning Section Members. Order Now
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Study: Sustained low interest rates could lead to a sparse retirement
A study to be released by the Employee Benefit Research Institute projects that retirees who rely solely on retirement income and wealth could run out of money if current low interest rates hold, as compared with yields under historical interest rates. The hypothetical scenario looked at baby boomers and Generation Xers without additional sources of income such as Social Security benefits. Stacy Schaus, an executive vice president at PIMCO, says the modern investing climate requires advisers and plan administrators to be more proactive in managing retirement funds for their clients and employers. Financial Planning
(5/2013)
Dept. of Labor: Proposed rule would require projected retirement plan payouts
The Department of Labor's Employee Benefits Security Administration is seeking public comment on a proposed rule to require 401(k) plans to include projected monthly payments after retirement in addition to account balances in benefit statements. "Retirees run the risk of outliving their savings. If workers have the benefit of seeing how long their savings could last, it might spur better planning for the future, such as adopting more effective savings strategies," said Phyllis Borzi, assistant secretary of labor for the Employee Benefits Security Administration. The deadline for submitting comments on the proposed rule is July 8. Financial Advisor online
(5/8)
What questions must advisers be ready to handle?
Investors should come into meetings with their financial advisers armed with the right questions. Likewise, advisers need to have the right information for their clients. This article provides five questions that advisers should be prepared to answer in order to remain relevant. RIABiz.com
(5/12)
Other News
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When to consider guardianships for impaired young adults
Guardianships are often used in the context of minor children, or adults with dementia, but it is becoming increasingly common to employ them with adult children whose decisions are impaired, such as those with drug addictions. An estate lawyer discusses the pros and cons of guardianships for young adults, and what the process involves. CPA Insider
(5/13)
To help seniors with housing matters, CPAs should use a team approach
CPAs typically focus on the financial aspects of helping clients when it's time for them to choose a senior living facility, but the array of options can be confusing for clients to negotiate. A columnist discusses why it's vital to employ a team approach, using an elder law attorney and a geriatric care manager to coordinate the delivery of professional services. CPA Insider
(5/13)
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| Retirement, Investment & Insurance Planning |
A fresh look at Coverdell Education Savings Accounts
The American Taxpayer Relief Act of 2012 made Coverdell Education Savings Accounts permanent. Financial columnist Michael Kitces looks at the two types of college savings plans -- the Qualified Tuition Program under Section 529 of the Internal Revenue Code and Coverdell Education Savings Accounts -- comparing contribution limits, expense limitations, tax benefits and plan costs. Nerd's Eye View blog
(5/8)
Bull market harks back to '90s boom, but valuations are down
The soaring equity market has good news for both bullish and bearish investors. The Standard & Poor's 500 has gone up 26.2% annually since March 2009, matching the hot market of the technology boom and drawing predictions of continuing growth ahead. Valuations, on the other hand, are down from 25.7 times annual profits in the 1990s to 18.6, indicating to some experts that investors lack confidence in the market. Financial Advisor
(5/2013)
Other News
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Mine social media sites for high-income clients
Registered investment advisers are finding that trolling social media such as LinkedIn and Twitter can land some big clients. Not only are many mass-affluent families active on social sites, a study by LinkedIn shows that 40% of mass-affluent and "uber-wealthy" investors use the sites for financial education and to check out potential financial advisers. Join the PFP Division on May 23 for a free Web seminar on utilizing social media in your firm, including adviser-specific compliance considerations. RIABiz.com
(5/9)
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Free guide: Do you have an investment adviser registration requirement with the SEC or state?
If you provide retirement, estate and/or investment planning advice to your individual clients, it is critical to understand investment adviser registration rules and when that advice is not considered incidental to your accounting practice. The CPA's Guide to Investment Advisory Business Models provides an overview of the various investment advisory business model options and assists you in understanding whether you have crossed the line when providing investment advice and determining whether you need to be registered as an investment adviser. This free guide is provided by the AICPA's Personal Financial Planning Division.
What financial advisers need to know to be safe, connected and productive in the Mobile Age
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By 2015, experts predict that mobile phone subscriptions will outnumber the world population. Financial advisers recognize that the shift to the Mobile Age will forever change the way they manage their businesses and engage clients and prospects. However, most advisers simply aren't aware of the best ways to use smartphones, tablets, the cloud and more. The office in the Mobile Age isn't a physical place, as it is now possible to work from any location on any device at any time. In this Web seminar with Bill Winterberg, to be held from 1 to 2:45 p.m. ET on May 15, financial advisers will learn how to stay safe, connected and productive as they seek to become "The Mobile Adviser." This webinar is free for PFP Section members, inclusive of PFS credential holders, without optional CPE or discounted CPE for purchase for PFP/PFS and Tax Section and PCPS members. This seminar is available for purchase to all. Register now.
Latest Inside Information
The May 2013 edition of Inside Information includes stories on professional study groups for back-office administrators, risk parity, Bob Veres' review of a recent white paper on the advisory profession, and more. *Note: Access to the Inside Information newsletter service is a benefit of PFP/PFS membership, which is an individual membership. If your colleagues would like access to this newsletter service, they can either purchase directly from Bob Veres or sign up for PFP membership.
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Be not angry that you cannot make others as you wish them to be, since you cannot make yourself as you wish to be."
-- Thomas à Kempis, Dutch religious scholar
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The AICPA's
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
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