Exhibit 5: Active Investment Strategies

To actively approach the market, CPAs should employ these strategies:

  1. Develop a specific investment goal for your client or employer and establish an investment policy that governs the management of the portfolio.
  2. Review the prospectus of any potential or existing investment to help determine whether the fund’s investment policy matches your understanding and expectations. If the prospectus does not provide sufficient information, dig deeper. Request the “Supplemental Part B Prospectus” (statement of additional information) from the fund.
  3. Incorporate the basics: research, value, buying low and selling high, rather than being swept up in market hype about index funds.
  4. Engage in an active rather than passive approach to investing. Select managers with a defined management discipline that liquidates overvalued stocks in favor of rebalancing in undervalued issues. Avoid the market creep of momentum investing presented by index funds.
  5. Blend the advantages of growth and value styles. These styles tend to balance one another during up- and down-market cycles.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.