EXECUTIVE SUMMARY THE NEW BANKRUPTCY LAW protects tax-qualified retirement plans—pensions, profit-sharing and 401(k) plans—from creditors in bankruptcy. SEP AND SIMPLE IRAs ARE excluded from bankruptcy estates under the new law, even if they qualify as ERISA pension plans. TRADITIONAL AND ROTH IRAs that are created and funded by an individual
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Personal financial planning
How to Prevent Investment Adviser Fraud
EXECUTIVE SUMMARY SECTION 206 OF THE INVESTMENT ADVISERS ACT OF 1940 provides guidelines for investment advisers on what constitutes fraud. THE SUPREME COURT HAS HELD THAT THE ACT imposes a fiduciary duty on investment advisers to act in the best interest of their clients by fully disclosing all potential conflicts
Financial Aid 101
EXECUTIVE SUMMARY COLLEGES AWARD FINANCIAL AID IN THE FORM OF scholarships, grants, loans and work-study awards based on the financial need of a student. The formula used to determine financial need is: financial need 5 cost of attendance (COA) 2 expected family contribution (EFC). THE EFC IS DEPENDENT ON THE
Sell It or Rent It?
Should I sell it or rent it out? How will you respond when your clients ask you that question when they’re moving out of a home? CPAs can provide a valuable service by helping clients think through this issue in a structured way. To help, we’ve created an Excel spreadsheet
Sell It or Rent It?
PERSONAL FINANCIAL PLANNING hould I sell it or rent it out? How will you respond when your clients ask you that question when they’re moving out of a home? CPAs can provide a valuable service by helping clients think through this issue in a structured way. To help, we’ve created
Is Your Retirement Plan Really Safe?
EXECUTIVE SUMMARY BENEFITS IN TAX-QUALIFIED RETIREMENT PLANS generally are protected from the creditors of plan participants and insulated from claims in bankruptcy. PLANS NOT PROTECTED FROM CREDITORS are those that cover only the business owner and/or the owner’s spouse and section 403(b) tax-sheltered annuity plans whose assets are held in
Build Customized Bond Portfolios
EXECUTIVE SUMMARY FOR HIGH-NET-WORTH CLIENTS with fixed-income investable assets over $500,000, firms might consider designing customized bond portfolios that meet each client’s unique financial goals and risk tolerance. IN ADDITION TO SERVING THE BEST INTERESTS of clients, CPAs introducing such customized fixed-income portfolios also add value to their firm by
AICPA Creates Community Web Site for Personal Financial Planning Services
his year will mark the AICPA’s 20th anniversary in support of CPAs in the expanding field of personal financial planning (PFP). More than 23,000 AICPA members provide PFP services, while an estimated 10,000 members are registered investment advisers (RIAs) and another 60,000 CPAs provide limited financial planning services as an
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
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
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
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
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
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
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
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
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
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
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
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
Features
FROM THIS MONTH'S ISSUE
Making the right choice when no one is watching
The true test of one’s character is the decision made when no one is looking over your shoulder. Learn how CPAs can uphold ethical standards and take actions that help limit liability risk.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
