CPAs explain key factors to consider when moving to life’s next chapter. The calendar says it may be time to retire, but how do you know if you are emotionally ready to take that step? The decision to retire is intensely personal, according to Michael Goodman, CPA,PFS, president and principal of Wealthstream Advisors Inc. of New York City, who often counsels individuals on their retirement plans. To read the full article in the Journal of Accountancy, click: How to Know if Retirement is Right for You.
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Ditch the 4 Percent Rule. Here’s How to Handle Your Retirement Withdrawals It might be time to scrap the 4% retirement rule, as it could be unsafe if there are large portfolio losses in the early years of retirement. Here are three factors to weigh when developing a financial plan. To read the full article in CNBC, click: An Alternative to the 4% Rule.
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What to do With an Underperforming Life Insurance Policy Several options exist for handling a universal life insurance policy that is no longer serving a client’s needs. In this real-world example, four experts offer advice on what they would do with such a policy, with some of them recommending that the policy be surrendered. To read the full article in WealthManagement, click: Surrender a Universal Life Insurance Policy.
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The Role of the Forensic Accountant There are a number of instances where damage estimates are uncertain and where a customer is lost. What should one do in these instances? Losses sometimes require reasonable estimates, as well as a reasonable forecasting of the market—both for the generation of revenues and for mitigation. In the case where there is greater perceived loss than a single contract, a forecast is necessary to determine the long-term future lost net profits for the value of the lost customer. Dr. Kreuter shares his views on how to address these more complicated engagements.
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Estate of Morrissette v. Commissioner, 146 T.C. No. 11 (April 13, 2016) The Tax Court’s ruling in Morrissette is very important to the estate planning community, in that, intergenerational split-dollar life insurance arrangements have become much more popular since the IRS released its final split-dollar regulations in 2003. Yet, widespread use of this technique has been suppressed by uncertainty with respect to the tax result. Further, the IRS has oftentimes taken the position (in audits) that a lump sum premium payment should be treated as a gift to the lower generation even if the economic benefit regime was used to…