Last week, the US Small Business Administration and Department of Treasury released guidance on the revived and reconstituted Paycheck Protection Program in the form of two interim final rules. SBA and Treasury said that the PPP program will reopen this week, with community financial institutions able to make first-draw loans starting today. (AICPA members can get more information on the year-end COVID relief package here).
Several trends could shape the advisory profession in 2021 and beyond. Among other things, be ready for deeper client relationships, potential changes to tax policy, a continuance of remote work and an ongoing shift in advisory revenue models.
The Small Business Administration and the Treasury Department have released borrower application forms for the revived Paycheck Protection Program. The forms are Form 2483 for first-draw PPP loans and Form 2483-SD for second-draw PPP loans (the latter form is available for previous PPP borrowers that need further assistance and meet eligibility requirements).
Deregulation pursued during the tenure of former Securities and Exchange Commission Chairman Jay Clayton reduced investor protections, SEC Investor Advocate Rick Fleming says. In a report to Congress, Fleming urged a rollback of certain SEC actions and pointed to the launch of nontransparent ETFs as "triggering potential new investor protection concerns."
A Democratic president and Democratic control of Congress could lead to tax changes that affect estate planning. This article offers several planning tips for the new year, including establishing trusts and working with clients to determine which discretionary assets they might want to gift. (Hear from top CPA financial planners in this upcoming webcast on their top client and practice tips for 2021 -- free for PFP and PFS members).
With the coronavirus pandemic still taking its toll on the US, clients might forget that the suspension of required minimum distributions under the CARES Act has not been extended for 2021. Clients who pay estimated taxes and skipped RMDs last year should be aware that 2020 might not be a good guide for what they owe, notes Michael Goodman, CPA/PFS. (As you help clients navigate retirement planning strategies, be sure to reference this in-depth guide, which is open to PFP and PFS members.)
Many households have experienced extra financial pressure during the coronavirus pandemic, so this article offers various strategies that can help with problems that have arisen in recent months. One fix for couples needing extra income is for the lower-earning spouse to claim Social Security early while the higher earner waits until age 70. "You'll be really glad as you get older that you waited," said Paula McMillan, CPA/PFS. (PFP and PFS members can use the client-friendly materials found in Broadridge Advisor to jump-start retirement planning conversations and ideas.)
There are several potential pitfalls to keep in mind if you have decided to add financial planning to your firm's list of services. John Graziano, CPA/PFS, lists six common stumbling blocks related to issues such as implementation, resource planning and compensation structure.
Life is full of contradictions, and some of these paradoxes can affect the financial planning process. This article explores several common paradoxical situations related to issues such as retirement accounts and inheritance. (AICPA members can use the Personal Finance Scorecard, courtesy of the PFP Section, with clients to help identify planning needs.)
When working on your firm's strategic plan, it's as important to know why you are aiming for specific goals as it is to identify those targets. This article lists three important questions to keep in mind, starting with defining the problems you are seeking to solve.
Firms of the future: Business consultant Matthew Jackson is mapping out the next evolutionary stage of the planning profession
The profession: Three professional associations that financial advisers can join and what they've been up to lately
Client services: How to integrate coaching into your service model and a training program for those skills
Happy new year! Looking ahead to 2021
Congratulations on making it through 2020! Join your PFP Executive Committee and PFS Credential Committee chairs, Susan Tillery, CPA/PFS, and Dave Stolz, CPA/PFS, as they share tips for success for your business and clients and fill you in on what the PFP Division is doing for you in 2021 in this new podcast episode (open to all).
The AICPA's 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 business owners.
About the CPA/PFS Credential: The 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