The Road to Bankruptcy


NUMEROLOGY

o you and your clients have enough disability insurance? Most people buy insurance to protect their lives, their homes and their cars, but too many put disability insurance at the bottom of the list.

A study of bankruptcy filings by Harvard University revealed that medical disability led to nearly half of the 1.458 million bankruptcy filings in 2001. According to Harvard Law School professor Elizabeth Warren, a good education, decent job and health insurance are “no guarantee a person won’t be wiped out by an illness or accident.”

The 2005 Harvard research parallels the findings of an earlier Housing and Home Finance Agency study that found 48% of home foreclosures were the result of disability while only 3% resulted from the homeowner’s death. Combine that with the fact that one out of seven people who are between the ages of 35 and 65 can expect to become disabled for five years or longer and disability insurance becomes just as important as any other coverage. CPAs who are self-employed are particularly at risk, since there may be nobody to carry on their practice if they become disabled.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.