Wealth management

It has been said repeatedly that the one aspect most investors can really count on is that markets are cyclical.

The Treasury Department is advising Social Security check recipients who live in hurricane- and other disaster-prone areas to switch to direct deposit as hurricane season gets underway along the Gulf Coast and Eastern seaboard states and severe weather continues to impact other regions of the country.

Americans today are being forced to review their retirement planning goals with greater scrutiny. No one knows that more than Robert Fishbein, vice president and corporate counsel with Prudential Financial, Inc. He has now offered tips on how to get through this economic turmoil.

A nanny who worked for a wealthy business owner was driving her employer's children to school, talking on her cell phone, when she ran a red light and crashed into another car, killing a family of three. State law stipulated that in such cases both the driver and the vehicle owner were liable. Both the business owner and his wife were named on the car's registration - as they were on all of their personal and professional assets. Due to the lack of protection planning, the accident ultimately put all of the business owner's assets in jeopardy.

POLL: INVESTORS PREPARING FOR LONG RECESSION

Tough times deplete already-scarce resources across the economy, and governments are increasingly asked to provide more and more assistance as tax revenues diminish. Should the government's wells dry up, this will shift the service burden to the nonprofit sector.

Financial professionals gathered at a recent life insurance conference expressed relief about two revenue rulings issued by the IRS this month.

Award-winning author and financial planner Jonathan Pond told a crowd of more than 500 small firm principals and sole practitioners that while the current recession is life-changing for many, conditions will improve despite the media’s best efforts to portray the current climate as “hopeless.”

ADAPTIVE PLANNING ON SUITECLOUD

Do your clients have life insurance or annuity policies? If so, they - and you - may be in trouble.

A coalition of three prominent financial planning trade associations called for legislation to create a national organization to oversee the financial planning profession but prevent the Financial Industry Regulatory Authority from acting in that capacity.

Swiss President Hans-Rudolf Merz told a news conference that he had talked with U.S. Treasury Secretary Timothy Geithner over the weekend about dropping a case against UBS over its tax shelters in return for signing a new tax treaty between the two nations.

The Internal Revenue Service now has a new interest in sports and entertainment - and not just as a spectator.

NEW PFP WEB RESOURCE

With the repeal of the federal estate tax set for 2010 and its reinstatement scheduled just one year later, estate tax planning has become more complicated than ever. Wealthy clients need to incorporate flexibility into their current plans while taking advantage of favorable planning opportunities.

Given the current economic situation, conducting a financial planning practice isn't getting easier. With the financial uncertainty of the past several years, investors have become uncomfortable with the "business as usual" planning approach.To some extent, this is good news for planners, as it provides the opportunity to perform more in-depth planning for many clients, as well as providing clients with a more proactive approach to investing and planning. With investor goals undergoing frequent revisions, and the means to achieve those goals also increasingly unstable, clients are increasingly willing to allow you to play a more active part in monitoring their investments on an ongoing basis and suggesting changes when appropriate, not just at an annual or bi-annual planning session.

PCAOB STARTS REGISTERING BROKER/DEALER AUDITORSThe Public Company Accounting Oversight Board has issued guidance on the recent requirement for registration of auditors of privately held broker/dealers.

Gen X and Y may reap some big benefits from the bear market, and advisors who target those generations could profit from helping them.

More than half of affluent 60-year-olds are revamping their retirement plans, according to Bell Investment Advisors’ fourth annual Affluent Boomers at 60 Survey of 500 high net-worth 60-year-olds. This represents double the number who reported making such changes a year ago, Of those who have altered their retirement plans in the last six months, two out of three are delaying their retirement, with 34 percent of these planning to work an additional five or more years. Almost 75 percent have reduced spending, and nearly half have changed their investments. The survey shows that some 57 percent of respondents say they feel more financially stressed than they were six months ago. In fact, 76 percent claim they feel less wealthy and 35 percent note they do not have enough money on which to retire. The survey also reveals a loss of confidence in America’s financial system. These boomers indicate they’ve lost the most confidence in government regulators (34 percent) and banks and financial institutions (30 percent). “It is critical for investors to realize that there is no bailout package for retirement,” points out Jim Bell, CFP®, founder and president of Bell Investment Advisors. “The current economic situation is a wake-up call for investors at 60 to have a clear retirement plan that incorporates a sound investment strategy.” Of investors surveyed, 54 percent estimate they will need $1 to $3 million at retirement, but 42 percent have invested or saved less than $1 million. Among respondents who plan to reduce their spending this year, 46 percent are doing so in order to rebuild their retirement savings. More than half (55 percent) of those boomers who have decided to delay their retirement cite the same reason for adding more working years to their plans. When it comes to investing, the majority (56 percent) think the stock market is too risky for people their age. Even more, (61 percent) of those surveyed, plan to make a change in their investment strategy this year, with one-third of them intending to invest more in fixed income investments. Half of those investors who plan to change are taking a “wait and see” attitude about which direction they will go. “Merely increasing savings and working longer will not fill the gap for most Boomers approaching retirement,” says Bell. “Recent stock market volatility has many Boomers reconsidering risk, but it’s critical to keep in mind that when you reduce investment risk you also reduce the upside potential to rebuild wealth. Boomers who choose to wait for a market recovery to decide when to reinvest will miss early gains.” Despite the radical changes this group of boomers is making to their retirement plans, the market downturn of 2008 has not altered their core positive feeling about their lives. Almost all (97 percent) claim they feel great about their lives, as they have in the prior four years Bell has sponsored this survey. Looking forward, 73 percent say they expect the stock market to finish 2009 higher than it started, and 43 percent feel 2009 will be a year where they increase their wealth. Bell Investment Advisors offers investment management, comprehensive financial planning, and career/life planning services to help investors plan and achieve their personal and retirement goals. The firm manages more than $360 million for its more than 600 clients. To learn more, visit www.bellinvest.com.

The Internal Revenue Service has issued guidance to clarify the COBRA benefits offered under the recently passed stimulus bill.