Wealth management

There are some classes of software that simply don’t change much from year to year, and retirement planning software is one of them.In any given year, you may see tax tables updated or compatibility with new operating systems and hardware slip in, but these are, by definition, very stable applications whose core strength is that they offer reliability and a strong set of features. Nor do they need to compete with consumer applications for the beauty of their interface or use of colors. Most of the work of a good retirement planner is done in the background, with little or no reason to bother with aesthetics anywhere other than in the final client presentation.

PLANNING NICHE GROWS FOR CPASFinancial planning has helped fuel an increase in revenues at CPA firms, according to a new study by the American Institute of CPAs and CPA firm Moss Adams. The survey found an average financial planning practice size of $460,000 among the 431 CPA firms that responded, with an average yearly growth rate of 34.9 percent between 2004 and 2006. Respondents anticipated a 20.6 percent increase in assets under management in 2007.

The MetLife Mature Market Institute has available to consumers, especially those who are not in "traditional families," some tips on how to make the right choices in preparing for retirement, notwithstanding the challenges they face.

UCLA Extension has teamed up with Dalton Education to offer an online certificate program in personal financial planning.

XBRL International has appointed Gilles Maguet as secretary general of XBRL Europe, giving him the job of promoting the adoption of the Extensible Business Reporting Language in Europe.

As economic indicators continue to trend downward, Baby Boomers are feeling less confident that their retirement savings will see them through retirement. So says the results of a new research by Longevity Alliance that was conducted by Harris Interactive. Interestingly enough, the survey shows that few of these Baby Boomers really know what steps to take next. According to Longevity, 56 percent of all Boomers (adults 44-62) claim they are less confident than they were only three months ago that their retirement savings will last them through retirement. In fact, of those with such savings, seven in 10 say that were “less confident” overall, with 35 percent being “somewhat less confident,” and 36 percent indicating that they were “much less confident.” Despite the concern, few Boomers have done anything—or plan to do anything—about such flagging retirement savings. Longevity shows that only two out of five with such savings have changed or plan to change their retirement savings as a direct result of the current economic conditions. In fact, of those with such savings who have made a change (or plan to), some 43 percent say they would seek the advice of a financial advisor or retirement planning professional. Hooray! There’s hope alive here. Longevity president Steve Zaleznick says that the Boomers “know the train is coming, but they’re frozen on the tracks.” Unfortunately, he adds, too many are unsure of the best steps to take to guarantee that their money lasts. “In uncertain economic times like these, knowing what to do and when to act is critical; and seeking the advice of a professional can be extremely reassuring.” Also of interest were the distinct differences in attitudes about retirement between men and women. Among adults of all ages, men were more likely to have retirement savings although female Boomers are much more likely to say they have less confidence in their savings. Zaleznick notes that the survey shows clear consumer preferences among Boomers who plan to make changes in their retirement savings. Seeking the advice of a financial advisor or retirement planning professional was the top response followed by a reallocation of funds from stocks to more conservative investments. Other options were investing in value-priced stocks, buying long-term care insurance, and purchasing an annuity. Longevity has a Web site where you can tap into its “Five Tips for Retirement Planning” (www.longevityalliance.com). Boomers can also take the “Longevity Ready” quiz to get a better understanding of their personal preferences and planning style for a longer life.

A week after proposing requirements for public companies to start filing their financial statements with interactive data tags, the Securities and Exchange Commission wants mutual fund companies to begin filing risk and return information using the technology.

In recent months, captives have come to the forefront of the insurance industry.As a result, there has been increased interest in what they are, the benefits that they provide, and if they are a viable option for companies.

AICPA Finds Economic Worries Delay Life DecisionsApproximately four out of 10 American adults are postponing making major life decisions either because they haven’t saved enough money or they’re worried about the U.S. economy, according to a recent poll conducted for the American Institute of CPAs by Harris Interactive. Decisions involving home ownership, higher education, marriage, children, medical procedures and retirement are among those that Americans are fretting over. Eleven percent more adults are postponing such decisions compared to a year ago.

The financial advisor of the future must go beyond today's conventional wisdom to favor a more complete risk management framework that better recognizes the retirement income needs of millions of retirees, says The Retirement Income Industry Association (RIIA), a national, not-for-profit organization whose members are defining the future of retirement security in the United States. RIIA's chairman and executive director Francois Gadenne, points out that the association has already developed a job description for financial advisors that he believes is more relevant to the practical challenges that retirees are now beginning to confront. "In order to be effective in the future, financial advisors seeking to provide the best possible results for their clients must embrace a host of new responsibilities and personal professional skills. And, based on feedback that financial advisors have brought to RIIA, they are concerned about helping investors plan, implement, and manage their retirement to achieve and maintain a desired standard of living over the long term. That's a complex task which calls for new insight and education." The association’s director, David Macchia, explains that the advisor's job description has expanded significantly. "The advisor must have the skills to not only help investors accumulate financial capital--such as savings, investments, insurance, annuities, and IRAs--but also to understand the changing roles of financial capital combined with human capital (wages and earnings) and social capital (social security, support from family or friends, defined benefit plans) as investors address their retirement income security needs." RIIA says foresees a new dimension of professional advisor education that will be called for in light of the shifting challenges confronting retirees. To support advisors in maintaining a high degree of proficiency in retirement income planning, including specialized professional education that provides the skills and insights needed in the years ahead, RIIA is developing a Retirement Income Management Body of Knowledge. This curriculum, it notes, will match specific learning objectives with practice management skills derived from a Retirement Management Professional job description and leading to a Retirement Management Analyst™ (RMA) designation. Elvin Turner, its director, asserts that the association’s expanding body of knowledge is the key to addressing financial advisors' concerns about delivering comprehensive retirement income planning to their clients. "Ethics and practice management skills are foundational elements of RIIA's body of knowledge. The reason is to help RMA designation candidates sharpen their ethical behavior and practice skills needed to address retirement needs in an effective and objective fashion." According to Gadenne, the ability to identify the vital attributes of tomorrow's successful financial advisors is attributable to what he feels is the association’s unique perspective in the financial services industry. "RIIA and its members have been able to view across silos by pulling down barriers between product and process, manufacturer and distributor, academic and business, to achieve a needs-based perspective that would otherwise not be possible. It is this perspective that is driving the definition of prudent retirement planning, including the skill set that advisors must maintain and refine over time." For more information, visit www.riia-usa.org.

The Internal Revenue Service has published the 2009 inflation-adjusted deduction limits for health savings accounts.

Accounting firm Moss Adams has named Rebecca Pomering CEO of its wealth management division.

If you haven’t heard by now, there’s a big conference coming up in July. It’s being billed as “How CPAs Can Make Money in Financial Planning” and it’s being held on July 20-22 at the Chicago Fairmont. Why this conference? Because the Baby Boomers, as we all know, are hitting retirement age with the Barely Boomers right behind, and they are certainly looking for financial planners to advise them. In the interests of full disclosure, the conference is being offered by the premier publications in this field: CPA Wealth Provider, Accounting Today, and Practical Accountant. The conference will detail exactly what it takes to be really successful in such a practice area, which includes estate, tax, retirement, insurance, and succession planning and, of course, wealth management. This breakthrough conference is also targeted at those firms not yet in financial planning as well as those who have not been successful. In fact, the conference will allow you to determine how deeply your firm should be in this growth area and in what capacity. You will also learn how to select the right strategic partner and how to get financial planning up-to-speed quickly. Moreover, you will hear success stories from financial planners and learn the challenges of those CPAs who entered the business without the proper training, analysis, and understanding and therefore, failed or had a number of false starts. Incidentally, the conference will offer 16-18 CPE credits. Most importantly, a number of the preeminent people in the field will be conducting sessions at this conference including the keynote speaker, Stuart Kessler, considered by many as the “Godfather” of financial planning and including, as of this date, Garrett D'Alessandro, Sidney Blum, Mitchell Freedman, Peter Jaworski, Rebecca Pomering, Larry Swedroe, Enrique Vasquez, Troy Waugh, and Clare Wherley. For more information, contact Julie.Dienes@sourcemedia.com.

iPro One has reached an agreement to purchase an ownership interest in HbK Sorce Financial, an investment advisory and wealth management firm with more than $1 billion in assets under management.

Genworth Financial Investment Services has launched a new section of its Web site dedicated to practice management.

As an accountant, you observe your clients’ business successes and failures every day. However, many accounting firms struggle in their efforts to deliver financial planning services profitably.Why?

H.D. VEST TURNS 25Broker/dealer H.D. Vest, which pioneered the strategy of using CPAs and tax professionals as financial planners, is celebrating its 25th anniversary. Since its founding in April 1983, 47 states now allow CPAs to accept commissions for advising their clients and implementing investment planning strategies and products. Currently, H.D. Vest has some 5,400 independent advisors.

The American Institute of CPAs found a range of responses when it surveyed Americans on how they intend to use their tax rebates.

Accounting software developer Intacct has raised $15 million in financing led by Bessemer Venture Partners.

Financial planning and advisory services have helped fuel an increase in revenues at CPA firms, according to a new study by the American Institute of CPAs and Moss Adams.