Financial Planning

The 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.

In "The Graduate," A family friend utters one word, "Plastics," to Dustin Hoffman at his graduation party. Let’s fast forward some thirty–plus years later and understand that Benjamin Braddock, Dustin’s character, is now a Baby Boomer, and let’s make a healthy substitute for the word “plastic” and update that conversation to: “I just want to say one word to you ... just one word." says Mr. McGuire "Yes, sir."--Ben "Are you listening?"--Mr.McGuire "Yes, sir. I am."--Ben "Sugar-free."--Mr. McGuire Let me explain the reasoning for the change. In the exhibit area at the last annual conference of the Association for Accounting Marketing in San Diego, I stopped by a booth to talk to a representative of a business development company that has and continues to impress me. I had met the individual before, so we struck up an easy-going conversation of how the conference was going for each of us. As I left, he reached to give me a tin of mints with the company’s name printed on it. I refused it I told him the tin, unlike an offer of a piece of candy, was a great idea, as every time you take the tin out of your pocket for a mint, you are reminded about the company. He beamed as I spoke and explained that he came up with the idea of imprinted tins, and then convinced his CEO to approve the expenditure even though it cost considerably more than simply having out a bowl of sour balls. I suggested that his company’s next order should include tins of sugar-free mints, explaining that his company’s target was primarily the managing partners of firms (those that would approve using his company), and like me are probably Baby-Boomers, many of whom aren’t supposed to eat sugar as they are diabetic or pre-diabetic. If you want to see my theory in action, come to Atlantic City with me the next time I go. The busiest casinos are those that have a substantial sugar-free dessert section at their buffets and offer many sugar-free dessert choices at their restaurants, thereby appealing to and drawing those with the most disposable income and wealth, the same Baby Boomers. Column dedication: To GH.

Kellogg & Andelson Accountancy is expanding its presence here by acquiring the West Los Angeles office of Kelson Rood Stoll & Winkler.

I believe there are some important points that should be addressed in response to the author's perspective of the life settlement industry ("Be your own life settlement broker," Accounting Today, Aug. 4-17, 2008, page 16).A provider's No. 1 objective is to have the least amount of competition possible on any policy that they're reviewing, so they can pay the least amount for that policy. The provider is representing the institutional buyer, and their responsibility is to protect that fund's rate of return on its portfolio.

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.

With literally millions of Baby Boomers moving rapidly toward retirement, the demand for retirement income planning is slated to grow dramatically, says the Financial Planning Association in a new study sponsored by Transamerica. The study, 2008 FPA Financial Planner Attitudes and Perceptions about Retirement Income Planning, concludes that the demand for retirement income planning, retirement income products, and services, is increasing quite a lot, driven by what the FPA says is a greater understanding on the part of Americans relating to the important differences between the two broad phases of retirement: the accumulation or preparation phase and the distribution or income phase. According to the Diversified Services Group, which conducted the study along with the FPAS and Transamerica, this trend is likely to continue as Baby Boomers get older and want to learn more about retirement issues and solutions. Actually, financial planners say that they expect retirement income planning to be a key foundation of both their short- and long-term business growth. In fact, some 25 percent of advisers surveyed report that more than 50 percent of their new clients and assets will come from IRA rollover activities alone over the next year. Moreover, the planners surveyed say that 50 percent of their clients will retire over the next five years. For financial planners, this study shows an urgent need for them to become experts in retirement income planning as well as the need for them to examine their practices and how their revenue, revenue mix, and profitability could change as their clients retire. “The findings in this report point out that there is a significant spike in consumers’ appetites for help in retirement income planning, and advisers who become the subject matter experts in this area are the ones who will continue to find success as the market shifts due to demographics and the changing reality of what retirees' need to do in their retirement years,” concludes Will Prest, chief marketing officer of Transamerica Retirement Management, Inc. The study, the third annual study of its kind, is available for purchase by FPA institutional members for $7,500. Nonmembers can purchase the study for $10,000. To learn more about this study, send an e-mail to ResearchCenter@FPAnet.org.

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

The Treasury Department said it has opened its Temporary Guarantee Program for Money Market Funds, whereupon the Treasury will guarantee the share price of any publicly offered eligible money market mutual fund – both retail and institutional – that applies, and pays a fee, to participate in the program.

iPro One said it has acquired a minority ownership interest in Tegra Financial Partners, an affiliate of the Georgia accounting firm Habif, Arogeti & Wynne.

A recent survey by Harris Interactive conducted for Charles Schwab and Age Wave asked some 4,000 Americans ages 21 to 83 what they thought of different generations. It was broken down into Generation Y (ages 13-31), Generation X (32-43), Baby Boomers (44-62), the Silent Generation (63-83), and the Greatest Generation (ages 84 and older). Some of the findings show that Baby Boomers (35 percent) are most widely viewed as having a positive effect on society followed by Generation X (25 percent), the Silent Generation (33 percent), and the Greatest Generation (30 percent). These are considered the most widely admired generations. Actually, the Silent and Greatest Generations are viewed as the most generous while the Bay Boomers and Generation X are deemed the most productive. Interestingly, Gen X is considered the most self-indulgent followed by the Baby Boomers and Gen Y. There is no consensus as to which generation is most socially conscious although Baby Boomers and Gen X appear at the top of the list. One fascinating aspect is that the results show that Gen Y would like to rename themselves the Internet Generation. The survey shows that 53% of respondents view Gen Y as the most self-indulgent generation. They really dislike being called Generation Y or Millennials. And Gen X says that it would rename to Generation Tech. From the survey, some 41 percent view Gen X as the most innovative generation. Only the Baby Boomers seem to like the name given to them. In fact, 45 percent of the respondents view them as the most productive, and The Silent Generation would re-name themselves the Responsible Generation. They strongly dislike being called Silent or Invisible. I can affirm that because it’s my generation. I was certainly not silent or invisible, and was downright responsible. Some 33 percent of respondents view them as the most admired. I like that. The survey is entitled “Rethinking Retirement.” For more information, see http://rethinkingretirement.schwab.com/survey.