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October 23, 2012
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  Top Story 
  Industry News and Trends 
  • Midsize advisory firms have until Dec. 17 to move to state registration
    The Securities and Exchange Commission says nearly 300 advisory firms have failed to switch to state oversight and could lose their registration if they don't make the change by Dec. 17. The agency sent notices to the firms that under the Dodd-Frank Act, advisers with less than $100 million in assets under management are to be regulated by states rather than the SEC. InvestmentNews (free registration) (10/19) LinkedInFacebookTwitterEmail this Story
  • Wealthy clients should sell assets before 2013, advisers say
    Some advisers are telling their wealthy clients to sell assets now to take advantage of historically low rates that are to expire at year's end and move taxable income and investment gains into this year. Strategies include selling appreciated securities, relocating assets to tax-deferred retirement accounts, converting IRAs, exercising stock options and making large gifts to heirs this year. InvestmentNews (free registration) (10/19) LinkedInFacebookTwitterEmail this Story
  • Other News
  Retirement, Investment & Insurance Planning 
  • Investors better off with index funds, study finds
    Actively managed mutual funds do perform better than index funds during recessions, but in periods of expansion and over investment horizons encompassing both expansion and recession, index funds perform better than actively managed funds, according to a study by Shaun Pfeiffer, a professor at Edinboro University in Pennsylvania, and Harold Evensky, president of financial planning firm Evensky & Katz. "Collectively, these results show that there is more risk (i.e., variability and downside exposure) in performance across recessions and that risk-adjusted alpha for the worst performers in recessions is significantly more negative than that for the worst performers in expansions," the authors write. AdvisorOne (10/18) LinkedInFacebookTwitterEmail this Story
  • Other News
  Tax Topix 
  • IRS releases annual inflation adjustments
    The Internal Revenue Service announced the 2013 annual inflation adjustments for many items, such as the annual gift tax exclusion (which increases to $14,000) and the kiddie tax limit. Pension contribution limits were also increased. However, several items that expire or change at the end of this year, including the tax tables, were not updated. Journal of Accountancy (10/2012) LinkedInFacebookTwitterEmail this Story
  • Grantor trusts are a tax-efficient structure for succession
    A grantor trust is a tax-efficient way to structure the handover of a family business from one generation to the next, writes Heidi Bolger, CPA/ABV. An installment sale of the business interest to a grantor trust can result in no taxable gain recognized on the sale. The trust also freezes the business' value at the time of the purchase. Wealth Management Insider (10/18) LinkedInFacebookTwitterEmail this Story
  • Other News
  You and Your Practice 
  • Kitces picks AICPA PFP conference as among the top in the industry
    The AICPA Personal Financial Planning Conference is not just for CPAs but for any financial adviser interested in excellent content, according to financial adviser Michael Kitces, who picked the conference as one of the top seven events to consider for 2013. "[T]he conference has a pretty strong lineup of insurance and retirement content as well, and has put together a strong investment track," Kitces writes. Go to the AICPA's conference website for more details. PFP/PFS members save $100 off the early bird AICPA member price. Nerd's Eye View blog (10/15) LinkedInFacebookTwitterEmail this Story
  • How to fight wire fraud
    Financial advisers have seen a noticeable increase in attempts at fraudulent wire transfers by "spoofing," in which a request for money is sent from a fake-but-similar email address, writes Michael Kitces. To prevent wire fraud, he recommends that advisers pay special attention to wire transfers that are going to a third-party account, double-check any email addresses for wire transfer requests and follow up with a phone call to verify the request. Nerd's Eye View blog (10/22) LinkedInFacebookTwitterEmail this Story
  • Other News
  • PFP Executive Committee is granted standard-setting authority
    AICPA's governing council has granted the Personal Financial Planning Executive Committee standard-setting authority. These new professional standards will provide AICPA members who offer financial planning services with practice and competency guidelines. Next steps include full vetting by senior committees and thorough public exposure, expected to begin in late April. The current practice aid, Statement on Responsibilities in Personal Financial Planning Practice, has been in place since 1992. Learn more about the responsibilities of CPAs as they relate to providing financial planning advice. LinkedInFacebookTwitterEmail this Story
  • Free: AICPA PFP Division opens Forefield Advisor and Proactive Planning in Preparation for 2013 Toolkit through year-end
    With so many unknowns in 2013 compounded by an election year, 2012 presents an unprecedented opportunity for you to differentiate your firm and services and show that you provide significant value to your clients by having all of their financial planning needs in mind, including retirement, estate, tax, investment and insurance planning. If changes in tax rates and estate, gift and GST exemptions are known prior to year-end, a plan needs to be in place to trigger in order to ensure that no opportunities are missed. If tax cuts and current estate, gift and GST exemptions are extended at some point in the near future, change will occur, and a plan needs to be in place to be ready to act when appropriate. The AICPA Personal Financial Planning Division is sharing two of its most popular tools (Forefield Advisor and the Proactive Planning in Preparation for 2013 Toolkit) at no charge until Dec. 31 to help you educate and plan for your clients now. If you are a PFP Section member or CPA/PFS credential holder, you already have access to these resources as part of your membership. To access these tools, go to LinkedInFacebookTwitterEmail this Story
  • Today: The Domestic Asset Protection Trust: Combining It With Double LLC
    Asset protection has become one of the hottest areas of practice for estate planners, and the domestic asset protection trust has become one of the leading asset protection vehicles. In this Web seminar (1 to 2:15 p.m. ET today), Steve Oshins, Esq., AEP (Distinguished) will describe this technique and the use of charging orders for additional creditor protection and how they can be combined create a nearly insurmountable wall using a special design where the Domestic Asset Protection Trust is combined with two LLCs. This webinar is free for PFP Section members, inclusive of PFS credential holders without optional CPE. Discounted CPE is available for PFP/PFS members and Tax Section members. This seminar is available for purchase to all. Register now. LinkedInFacebookTwitterEmail this Story

  • Download October issue of Inside Information
    The October 2012 edition of Inside Information from Bob Veres is now available exclusively to PFP/PFS members. This issue includes articles on how to create a process-centric office, anomalies and inefficiencies in the investment markets, rethinking the SEC's restrictive testimonial rules for RIAs, and how to reposition your role for a successful succession planning process. Not a PFP member? Join the PFP Section today and save $50 on your first year of membership when you enter promo code CPALDPFP at checkout. LinkedInFacebookTwitterEmail this Story

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AICPA Advanced Personal Financial Planning Conference  |  Fox Financial Planning Network for CPAs

Only those who will risk going too far can possibly find out how far one can go."
--T.S. Eliot,
American-British writer

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About the PFP Section
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 investment planning and advice to their individuals and closely held entities. The PFP Section’s primary objective is to support its members by providing resources that enable them to perform valuable personal financial planning services in the highest professional manner. Members of this section broaden their technical expertise, improve their professional competence and receive resources to deliver high-quality, profitable PFP services. All AICPA members, generally, are eligible to join the PFP Section.
About the PFS Credential
The Personal Financial Specialist credential distinguishes CPAs as having demonstrated that they have the subject matter expertise and experience necessary to deliver financial planning services of the highest, as well as the CPA's traditional hallmarks of uncompromising objectivity, integrity and adherence to the AICPA's Code of Professional Conduct. CPA/PFS credential holders demonstrate their expertise through financial planning education, experience and testing.

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