Financial planning

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.

H.D. VEST ADDS REMOTE CHECK SCANNINGBroker/dealer H.D. Vest Financial Services is offering remote check scanning and depositing services to its network of financial planning advisors.

Government officials now expect 401(k) plan sponsors to conduct periodic due diligence reviews. With respect to their 401(k) or other retirement plans, the problem is that most sponsors (owners) do not have the in-house resources to do so.This is not something that 401(k) plans historically did. On the heels of the recent mutual fund scandals, though, Labor Department officials indicated that sponsors had a duty to periodically investigate plans and benchmark funds and fees.

PLANNERS GET NEW CLIENTSTwo thirds of certified financial planners have seen an increase in potential clients as economic turbulence has increased in the past several weeks, according to a recent survey.

When was the last time you or your clients took a hard look at your 401(k) plans?If you're like many small and midsized business owners, chances are that you haven't spent much time reviewing the plan since the day it was set up three, five and perhaps even 10 years ago. Most employers implement a plan and simply assume that even years later it will continue to do what is best for themselves, their company and their employees.

IRS RE-ASSURES MONEY FUNDSThe Internal Revenue Service issued a notice aimed at calming fears that it would act against insurance-dedicated money market funds that take advantage of a new temporary guarantee program. Notice 2008-92 provides that the Treasury and the IRS will not assert that participation in the program by an insurance-dedicated money market fund causes a violation of the diversification requirements of Section 817(h) of the Tax Code in the case of any segregated asset account that invests in the fund.

As the turmoil continued to wreak havoc with the markets and Congress mulled the mammoth $700 billion bailout package for Wall Street, five high-profile CPA financial planners holding the American Institute of CPAs' Personal Financial Specialist credential advised concerned investors to take a calm approach to savings and investments amid the present financial crisis.While their individual investment strategies may differ slightly, all agreed that clients should not lock in market losses through panic selling.

IPRO BUYS INTEREST IN TEGRAiPro One said that it has acquired a minority ownership interest in Tegra Financial Partners, an affiliate of Georgia accounting firm Habif, Arogeti & Wynne.

The Census Bureau estimates that there are nearly 78 million Baby Boomers, many of whom are facing retirement in the next few years with little or no savings.These 40-, 50- and even 60-year-old late-starters have been too busy educating children, caring for parents and making ends meet to properly save for their own retirement. By taking the time to understand their personal needs and goals, and staying on top of changes in relevant plans and laws, advisors can give clients one more reason to rely on them and their financial guidance.

AMERIPRISE TO ADD 900 BLOCKERS

SURVEY: EMPLOYEES WORK HARDER WITH STOCK PLANSSome 76 percent of employees participating in a Fidelity Investments survey indicated that they work harder for a company that offers employee stock purchase programs and employer-sponsored stock plans.

What's the future of CPAs in the financial planning area?The answer has been the same for the past 100 years.

As waves of retiring Baby Boomers begin their planned exits from CPA firms, the newer accountants will employ very different skill sets and tools than did their predecessors as the succession planning torch is passed to the next generation.

There are hundreds of CPA firms that claim to provide wealth management services to their clients. For those that truly do, hats off, as many do a fine job.But for the majority of firms that I encounter, they're dreaming if they think that what they are doing is remotely close to wealth management.

AICPA AND TEXAS TECH PARTNER ON PFS TRAININGThe American Institute of CPAs and Texas Tech University's Division of Personal Financial Planning have teamed up to offer a new educational program for gaining the AICPA's Personal Financial Specialist credential.

Successful small-business owners tend to be hard-working, tenacious, smart and highly focused. They have to be. According to a study by Dun & Bradstreet, businesses with fewer than 20 employees have only a 9 percent chance of surviving a decade.Yet even those that are successful fail miserably when it comes to planning for their financial future. In fact, it’s their proclivity to hone in so intensely on their business — certainly an attribute of being successful — that often gets in the way of their personal financial planning.

CAR DONATIONS PLUMMETAutomobile donations have sharply declined since 2004, when Congress tightened the tax rules for claiming charitable deductions, according to an analysis of IRS data by Grant Thornton. Before 2005, taxpayers who donated a vehicle were allowed to deduct its fair market value. Tax legislation enacted in 2004 changed the rules to generally limit vehicle donation deductions of over $500 to either the actual proceeds from a vehicle’s sale or the vehicle’s fair market value, whichever is less.

Will health issues force your clients to retire earlier or spend their nest eggs quicker than they planned?Four in 10 Americans retire sooner than they expected. Of those, 40 percent do so because of health issues or disability, according to the Employee Benefits Research Institute.

HOUSE CONSIDERS MANDATING EMPLOYER IRA PLANSThe House Ways and Means Select Revenue Measures Subcommittee held hearings on bills that would encourage employers to automatically enroll their employees in individual retirement account plans. One bill is aimed at creating automatic payroll deposit IRAs for workers who do not have access to employer-sponsored pension plans.

As the life settlement industry grows at an accelerating pace, an increasing number of life insurance producers are opting to transact directly with life settlement providers -- companies that actively purchase life insurance policies in the secondary market.While executing life settlement transactions through a specialized life settlement broker is beneficial for life insurance producers who do not have the know-how, resources or desire to transact directly with life settlement providers, producers who do elect to work directly with life settlement providers may benefit from the significant opportunity to execute more efficient transactions, while raising the level of the total policy sale consideration for their clients.