Olympic athletes are at the peak of their careers, but even they need rest days to stay healthy. Sometimes financial markets need to reset from record-setting performance, too. Here’s what you need to know about bear, or down, markets. To read the full article in Hartford Funds, click: 10 Things You Should Know About Bear Markets.
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If clients fail to consider their heirs’ tax brackets when crafting estate plans, heirs could lose more money to taxes than they need to. Dividing taxable and tax-deferred accounts in accordance with the unique financial situation of each heir can lead to better results. To read the full article in Kiplinger, click: Equal Shares for Heirs? Not Unless You Take Taxes into Account.
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Full-Time Mother and the Firm Perspective (Part II of II) This article is a follow-up article to an earlier article written by Laura Whitman, CPA, MS, manager, WithumSmith+Brown, PC titled Part-Time Accountant; Full-Time Mother. In this article, Edward Mendlowitz, CPA, ABV, CFF, interviews John Mortenson, CPA, partner in charge of the Withum East Brunswick, NJ office who interviewed Laura Whitman regarding how she managed her roles and how this impacted the firm. Follow-up to article by Laura Whitman, CPA, MS, manager, WithumSmith+Brown, PC, titled Part-Time Accountant; Full-Time Mother. Interview with John Mortenson, CPA, partner in charge of East Brunswick, NJ…
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CPA financial planners name charitable giving, business structure and estate plans as the areas of clients’ financial plans they have had to adjust most frequently after passage of the law known as the Tax Cuts and Jobs Act. Planners can tap into their technical expertise to evaluate how different tax strategies would align with a client’s overall financial picture, said Robert Westley, CPA/PFS. Ultimately, the goal is to ensure that plans “support [clients’] life goals and to keep them and their family secure,” said Andrea Millar, CPA/PFS. To read the full article in the Journal of Accountancy, click: How Tax…
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Public company auditors remain the group investors trust most to protect their interests, but investors’ confidence in U.S. capital markets and U.S. public companies has dropped in the past year, according to a Center for Audit Quality (CAQ) survey report released Tuesday. To read the full article in the Journal of Accountancy, click: Investors Trust Auditors, But Confidence in U.S. Markets Drops.
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The SEC has charged an advisor and his wholly-owned RIA firm with operating a nearly $5-million Ponzi scheme that defrauded scores of investors over almost a decade, according to the regulator’s complaint filed in federal court. To read the full article in Financial Planning, click: SEC Accuses Advisor of $5M Ponzi Scheme.
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Advisors failing to embrace ETFs will miss out on the next generation of clients. While only 42% of millennial investors say their portfolios currently hold an ETF, 91% say the funds are their investment vehicles of choice, according to Schwab’s annual ETF investor study. To read the full article in FinancialPlanning, click: Interested in Working with Millennials? Start with ETFs.
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One rule of thumb that’s commonly incorporated into financial plans assumes clients will have paid off their mortgage before entering retirement. Not only does it ease cash-flow concerns for initial retirement years, but it can also create a sense of calm as clients become debt free. To read the full article in FinancialPlanning, click: Mortgage Advice it Might be Best to Ignore.
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As technology continues to change the investment landscape, a new Merrill Edge report has found that nearly 40% of mass affluent Americans are comfortable consulting artificial intelligence for financial advice. But that’s not all… To read the full article in FinancialPlanning, click: 40% of Americans are Comfortable Seeking Financial Advice From AI.
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Clients can use tax-free, non-alternative minimum tax municipal bonds to create a source of tax-free income, an advisor on CNBC writes. While long-term investors will be better off building a portfolio of equities and bonds than having a 100% bond portfolio, muni bonds are a good alternative to annuities and other fixed-income vehicles, according to the expert. Clients who invest in annuities will incur taxes and other costs, but they “can invest the same amount into a diversified municipal bond portfolio and pay no taxes and receive tax-free income until the bonds are called or mature.” To read the full…
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In completing the comprehensive project to change the conceptual framework, the International Accounting Standards Board (IASB) confirmed the objective of IFRS financial reporting as providing financial information that is useful to investors and others when deciding whether to provide resources to a company. To read the full article in the Journal of Accountancy, click: New IFRS Conceptual Framework Revises Foundational Reporting Concepts.
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The owner of a retirement planning firm cheated dozens of investors out of $3.8 million in two related scams that included a Ponzi scheme and fraudulent stock offerings targeting elderly retirees, the SEC says. To read the full article in FinancialPlanning, click: $3.8M Ponzi Scheme Funded Spa Treatment, Maids, Church Tithes: SEC.
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Despite several projections about the future strength of digital advice, executives took to social media to express doubts that wealth management disruptors would remain standing—undone instead by private equity investor demands, tepid growth and evolved competition. To read the full article in FinancialPlanning, click: What Wealthfront’s Reported Valuation Drop Means for Indie Robo Advisors.
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Three in five affluent Americans (63%) said they are very or somewhat likely to change their personal financial plans based on the new federal tax law, according to a poll conducted on behalf of the AICPA. To read the full article in the Journal of Accountancy, click: How the New Tax Law Will Change Wealthy Americans’ Financial Plans.
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Before investing client assets, advisors are required to assess a client’s risk tolerance. If the investor takes on more risk than they can endure, they are likely to lose more money than they can stomach when the inevitable bear market comes. And even if the market recovers, there’s a risk that the investor will panic sell at the bottom of the market. To read the full article in Financial Planning, click: Risk Tolerance: The Misperception that Keeps Hurting Clients.
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As competition in the advisor tech space tightens, discount brokerages are expanding their platform’s offerings to appeal to a wider range of advisors. One of the more compelling new tools is automated portfolio management software that allows advisors to create recommendations digitally without the time and expense of consulting with an expert. To read the full article in FinancialPlanning, click: A New Tool to Help Slash Portfolio Management Costs.
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Client confidence has climbed and that rosier outlook for the economy and the stock market is propelling robust flows into equities and retirement accounts, advisors say. Allocations to stocks strengthened sharply, according to the latest Retirement Advisor Confidence Index—Financial Planning’s monthly survey of wealth managers—and helped to support further improvement in business conditions for the investment industry. To read the full article in FinancialPlanning, click: Rosier Client Confidence Drives Heavy Inflows into Stocks.
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Many Americans have not saved a sufficient amount to retire comfortably. Financial advisors can help their clients determine not only when to retire, but also if they should consider working at least part time in their early years in retirement. Here are a few questions to ask to jumpstart the retirement planning process with clients. To read the full article in FinancialPlanning, click: Is Your Client Ready for Retirement.
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The implementation effort surrounding FASB’s new revenue recognition standard is nearing an end for many companies; the deadline for compliance for public companies is the beginning of 2018. Despite the years of preparation, certain aspects of compliance, particularly the complex disclosure requirements, are being left to the final hours. Some companies are playing catch-up, scrambling to have their disclosures in place as the deadline approaches. To read the full article in the Journal of Accountancy, click: Last-Minute Revenue Recognition Implementation Tips.
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Seemingly overnight, the internet of things (IoT) has become a technology buzzword, challenging businesses to embrace a technology in its infancy before they can firmly grasp the pitfalls and opportunities involved. Sylvia Edwards Davis explains this concept and what to do to propel your business forward. To read the full article in CGMA, click: How to Stay Ahead of the IoT Curve.