Personal financial planning news and resources

TOPICS

February 1, 2005

Hedge Fund Investing

EXECUTIVE SUMMARY SINCE THE BEAR MARKET IN STOCKS STARTED FOUR years ago, hedge funds have become one of the hottest investment vehicles, growing at a rate of 20% a year. The hedge fund market is expected to increase to $1.5 trillion in the next two to five years. A HEDGE

January 1, 2005

What CPAs Need to Know About Separately Managed Accounts

EXECUTIVE SUMMARY SEPARATELY MANAGED ACCOUNTS ARE PRIVATE portfolios of stocks and bonds guided by professional money managers, who make decisions according to specific investment objectives. SMAs ARE APPROPRIATE FOR CLIENTS WITH significant assets who may have special tax considerations, such as capital gain/loss management and coordination with existing holdings. SMAs

January 1, 2005

Explore the Art of Consultative Selling

EXECUTIVE SUMMARY CONSULTATIVE SELLING IS A NONMANIPULATIVE process that focuses on clearly defining a client’s needs and objectives and securing agreement that they should be addressed. In traditional selling, on the other hand, the emphasis is on the product. USING OPEN-ENDED QUESTIONS THAT CAN’T BE answered “yes” or “no,” the

December 1, 2004

When Investor Trust Is Shaken

his article, a companion article to “ The Mutual Fund Trading Scandals ,” discusses the techniques that five investment advisers used in dealing with client concerns over the mutual fund trading scandals. These techniques can be used by CPA/investment advisers. TAKE A PROACTIVE APPROACH The criminal and unethical practices by

December 1, 2004

The Mutual Fund Trading Scandals

EXECUTIVE SUMMARY SINCE THE FIRST MAJOR MARKET-TIMING and late-trading scandal broke, a barrage of federal and state enforcement actions against funds has followed. LATE-TRADING IS ILLEGAL UNDER FEDERAL securities laws and some state statutes. It occurs when a mutual fund or intermediary permits an investor to purchase fund shares after

October 1, 2004

Smart Stops on the Web

TAX SITES Links for Professionals www.taxsites.com CPAs and tax preparers will want to bookmark this directory to accounting, payroll and tax Web sites. In the tax software category, users can find many links to electronic programs for income tax preparation, payroll and 1099s, estate, trust and retirement, and sales and

September 1, 2004

EE Vs. I Bonds: Which Are Better?

EXECUTIVE SUMMARY CPAs WHO PROVIDE FINANCIAL PLANNING SERVICES need to weigh the similarities and differences between U.S. Treasury series EE bonds and I bonds to help clients make savings bonds a part of their investment strategy. SERIES EE AND SERIES I BONDS HAVE interest rates that vary over the life

April 1, 2004

Tips for Working With Female Clients

EXECUTIVE SUMMARY WITH THE WEALTH CONTROLLED BY WOMEN PROJECTED to reach more than $22 trillion by 2010, the opportunity to provide these women with financial and investment advice is a good one. But to do the job properly, CPAs will need the right communication skills and to understand some key

April 1, 2004

The Rich Truly Are Different

EXECUTIVE SUMMARY CPAs WILL FIND THAT ULTRAWEALTHY CLIENTS DEMAND a broader range of services and skills than the merely wealthy. To serve this group, CPAs will need to tailor their offerings and sharpen their estate planning and investment management skills. Most financial planners define the truly rich as families with

April 1, 2004

A Tech Tools Sampler for PFP

EXECUTIVE SUMMARY TECHNOLOGY TOOLS CAN HELP personal financial planners provide reliable cost-effective services to clients. This article presents a range of useful personal financial planning (PFP) software as well as Web sites with calculators and education suitable to the public. MANY VENDORS OFFER FREE demonstrations and free trials via the

March 1, 2004

Small Business Insurance Checkup

or most people a preventive visit to the doctor for an annual checkup has become routine. Similarly, each year drivers have their cars inspected to ensure safe and reliable transportation. But too often, small business owners—including CPAs—don’t take similar measures to ensure the financial health of their organizations by conducting

November 1, 2003

Investment Adviser Advertising

EXECUTIVE SUMMARY THE SEC REGULATES THE ADVERTISEMENTS investment advisers create to promote their services under rule 206(4)-1 of the Investment Adviser Act of 1940. The goal is to prevent advertisements that are false and misleading. RULE 206(4)-1(a) INCLUDES FIVE RESTRICTIONS advisers must follow. They can overcome two of these restrictions

August 1, 2003

Investment Tax Planning for Retirement

EXECUTIVE SUMMARY FOR CLIENTS DREAMING OF A FINANCIALLY SECURE retirement, CPAs need to offer assistance on which savings vehicles—qualified and nonqualified—will help them reach their goal. This decision involves both tax and nontax considerations. CLIENTS PREPARING FOR RETIREMENT HAVE a wide variety of savings vehicles available to them including 401(k)

July 1, 2003

Real Estate Is Hot…Don’t Get Burned.

EXECUTIVE SUMMARY IN A HOT REAL ESTATE MARKET, CPAs HAVE AN opportunity to advise clients buying homes on a wide range of issues including financing and price negotiations. Accountants also can help clients refinancing existing mortgages make the right decisions while interest rates hover at historic lows. LOW INTEREST RATES

June 1, 2003

Smart Stops on the Web

SMART STOPS ON THE WEB Spend Time to Save Money financialplan.about.com Financial planners, CPAs and their clients will want to visit this Web site for money-saving tips on, for example, college, divorce, real estate and retirement. Visitors also can access financial advice for people in their 50s and 60s and

April 1, 2003

Death and Taxes

EXECUTIVE SUMMARY CPAs WHO FILE FORM 706 ON BEHALF OF DECEASED clients should be familiar with some common pitfalls. The form shows the decedent’s assets, liabilities and allowable deductions that together are used to calculate the estate’s tax liability. FOR HELP IN DETERMINING WHICH ASSETS TO LIST on form 706,

January 1, 2003

Web Sites Worth a Visit

PERSONAL FINANCIAL PLANNING SITES www.ihatefinancialplanning.com Don’t let the URL fool you. Whether they love or hate financial planning, PFP professionals and clients can find useful information at this Web site. Visitors can register for free to access articles, checklists and interactive forms on topics such as annuities, asset allocation, budgeting,

January 1, 2003

It Works for Them

ersonal financial planners help clients identify financial goals, organize ways to achieve them and set timetables for implementation. Together, a planner and client look at the clients total financial picture, including income, savings, investments and debts as well as his or her personal situation. Then, they analyze where the money

January 1, 2003

Socially Responsible Investing

EXECUTIVE SUMMARY AS CONCERN FOR THE ENVIRONMENT, SOCIAL ISSUES and corporate governance increases, CPAs may find more interest among their clients in investment strategies and mutual funds that emphasize social responsibility. SOCIALLY CONSCIOUS INVESTORS MAKE DECISIONS by screening for positive and negative issues, shareholder advocacy, community investing and providing social

January 1, 2003

What’s Hot, What’s Not.

o be successful financial planners and investment advisers, CPAs must keep up with a wide range of changes in investment products, technology, economic conditions and client management techniques. While the body of required knowledge may at times seem overwhelming, much of it is in fact just common sense. Here are