Accounting education

College students attending an Ernst & Young tax career event acknowledged they are seeing more interest on campus in accounting as jobs in the financial industry dry up.

U.S. households worth $1 million or more have seen their assets decline 30 percent during the financial crisis, according to a new report.

Patty Duke and her look-alike cousin from her old TV series are back, this time helping seniors apply for Social Security benefits online.

Wade Slome has led an adventurous life. He started trading penny stocks in high school stock market competitions after the 1987 crash. As a freshly minted MBA graduate from Cornell University in 1998, he never expected in his wildest dreams to land on one of the largest mutual funds in the entire United States, but at the age of 32 he was managing a $20 billion dollar fund. In his newly released book, How I Managed $20,000,000,000.00 by Age 32, Slome shares what he learned on his way to becoming an investment giant, trading billions of dollars while rubbing elbows and hanging out with corporate heavyweights. Here are his key recommendations for surviving the present economic climate. 1. Don’t listen to the TV and don’t take what you read as gospel. Reporters are merely looking in the rear-view mirror and telling you what happened – not what is going to happen. You make money by anticipating what’s next, not by reacting to what has happened. 2. Invest objectively and independently, not emotionally. The worst decisions are made under the pressure to follow the herd. It is best to buy fear and sell greed--not the opposite. The historic Nifty Fifty, technology, real estate, credit, and tulip bubbles exemplify the hazards of following crowds. 3. The financial markets are inefficient and emotional in the short-run and efficient in the long-run. History proves over and over again that an unbiased approach that takes advantage of short-term dislocations will lead to prosperity. This philosophy requires a patient, then aggressively opportunistic mentality if you want to build true wealth over time. 4. The long-term efficiency of the financial markets requires a healthy dosage of passive investing strategies. Seventy-five percent of all active professional money managers under-perform the passive indexes over time. Investors can dramatically improve their investment performance over the long run by integrating passive investing products like index funds and exchange traded funds (ETFs). 5. Understand three things: Fees, fees, and fees. Brokers (salesmen) do a great job at being your friend and partner, and they are perfectly willing to make excessive fees for this privilege. It’s your responsibility to understand and ask the right questions that are buried in the fine print. The more you pay in fees, the further you push out retirement and the farther the path to reach your financial goals. 6. Don’t be myopically focused on your backyard. Opportunity abounds internationally, especially in certain emerging markets. The U.S. is five percent of the global population, but 25-30 percent of global Gross Domestic Product (GDP). Our slice of the GDP pie will be smaller in the decades to come due to faster growth rates abroad. Grab a larger slice of the pie by opening your eyes to international possibilities. 7. Experience matters. Would you want a nurse to handle your brain surgery? Or how about the flight attendant controlling your plane? Obviously not. And so goes the case for your investment/financial advisor. It behooves the investor to shop around and ask the right questions. Are the advisors registered? What type of education do they have? Do they hold any certifications? Have they ever invested money before, or are they just selling product? 8. The power of compounding interest is a miracle. Einstein called the power of compounding interest the "8th wonder of the world." What would 1¢ invested in 1492 by Christopher Columbus be worth today if it was invested at six percent with interest compounded? The answer: $114,242,178,628.50. Yes, that right, $114 billion with a “b”! Apply the power of compounding to your portfolios. 9. Taxes matter. That’s great if you make a lot of money, but if you pay it all back to the IRS in the form of capital gains or estate taxes, then what good is that? Longer term tax efficient products and strategies will build your wealth faster, all else equal. 10. Learn from your mistakes. The best investors make errors, learn from them, and avoid repeating similar mistakes in the future. Slome says that perhaps the most important recommendation is the crucial need to have a disciplined, systematic investment plan that can be reviewed periodically to chart your path to your financial goals. His new book is available at bookstores online. For more information visit www.Sidoxia.com

Colleges and students trying to understand International Financial Reporting Standards now have access to free course materials and case studies through Deloitte’s IFRS University Consortium.

With 210 federal securities class-action lawsuits filed in 2008, the level of litigation last year was at its highest level since 2004, according to a new study.

The economic turmoil of the past year presents a unique opportunity for accountants to broaden their practices to include financial planning.

The Internal Revenue Service recently gave 403(b) plan sponsors an extra year to comply with new requirements.

Accounting firm Goldstein Lieberman has introduced a consulting team to help business clients cope with the recession.

The stock market crash, plummeting real estate values and the credit crunch have created general-purpose anxiety for most CPA clients. But for those with children someday headed for college, that looming burden weighs particularly heavily.According to the most recent College Board survey, the average tab this academic year at a four-year private college is $37,390. And total expenses at four-year public institutions average $18,326 for in-state residents, and $29,193 for out-of-state students.

Having a long-term financial plan gives your clients' logic a leg up over their emotions during times of market volatility.The past year has seen the stock markets swinging hundreds of points a day in either direction. That roller coaster ride has tested even the most stoic of investors, but those with a professionally prepared, long-term financial plan most likely have fared better than most do-it-yourself investors.

It looks as though many Americans are cashing in their 401(k)s prematurely. So says Take Charge America, one of the nation’s largest non-profit financial education, credit counseling, and debt management companies-- based upon a recent survey. According to Take Charge America, more than one-third of the individuals polled said they would consider meeting current financial obligations through their 401(k) and retirement savings. Of course, add to this that pursuant to a recent AARP study, more than 10 percent of people 50-70 years of age had already retired and are going back to work because of the economy. “The age at which Americans can retire will continue to increase as many individuals look for quick fix solutions for current financial woes,” says Mike Sullivan, director of education for Take Charge America. The company offers certified credit counselors to provide financial advice for those dealing with the financial crisis and Sullivan has some good advice to navigate retirement planning: 1) Don’t Consider Cashing Out a 401(k) Early. He says this is almost always a bad idea because the individual is slapped with large penalties and taxes. He notes that if the person is under 59 ½, there is likely to be a 10 percent penalty plus taxes owed on the funds. “The government requires that 20 percent of the amount payable is automatically withheld on the taxable portion of the withdrawal and that could mean a total of 30 percent of the investment paid in taxes and penalties.” 2) Don’t Retire, Hold onto the Paycheck. Sullivan adds that postponing retirement can provide larger benefits. In fact, he notes that the government is now looking at age 67 as the new retirement age although many people are targeting 69 or 70. 3) Take Care of Health. Sullivan points out that staying healthy helps avoid medical costs and though its sounds simple, he says that keeping weight in check by eating less and avoiding fats and sweets can pay dividends in the future. Plus, exercise regularly and vigorously, and avoid alcohol and tobacco. 4) Change the Lifestyle. Although he admits it may seem drastic, Sullivan says that the best response to credit issues is to stop charging, put away credit cards, and get on a budget. He concludes that it is tempting to look at the 401(k) as a resource to alleviate current financial burdens but that changes in lifestyle, including spending habits, taking care of health, and eliminating excess expenditures can help secure financial independence “without jeopardizing” the future. Take Charge America can be reached at (888) 822-9193. Their Web site is www.takechargeamerica.org.

A group of 61 members of Congress has written to President Bush asking him to suspend rules that require senior citizens to withdraw money from their severely depleted retirement accounts by the end of the year.

CEOs at many companies are earning a greater proportion of their compensation in the form of stock, but they're still getting more cash than ever, according to a new study.

The Internal Revenue Service has given Section 529 tuition programs the ability to change their investment strategies more frequently in response to the financial crisis.

Cheshire Software has added estate planning features to its wealth management product.

The Internal Revenue Service and the Treasury Department have decided against changing a rule that requires retirees to withdraw a minimum distribution from their retirement savings accounts by the end of 2008.

WebCPA's financial crisis survey is gauging the reactions of accountants and their clients to the financial crisis.

The Financial Accounting Standards Board has issued the first of two proposed standards intended to simplify the accounting for financial instruments in response to the financial crisis.

There are possible tax strategies that are particularly suited to the times that we are in. Here are two that I keep seeing, with the latest in a press release from a major tax publisher. According to analysts with the Tax & Accounting business of Thomson Reuters, C corporations may secure a refund of overpaid estimated taxes, or use projected current-year NOL to offset taxes owed for the previous year.