Financial Planning

While the word is that defined-benefit plans are no longer in favor, they can still provide a tax savings for the right client.“A lot of the press would lead you to believe that defined-benefit plans are on the way out,” said Karen Shapiro, chief executive of Dedicated DB, a San Mateo, Calif.-based provider of such plans. “But for some small-business owners, it’s a terrific tax strategy.”

The Internal Revenue Service has issued a sample notice that 401(k) and 414(w) plan sponsors can use to tell plan participants about their rights and obligations under the Pension Protection Act’s eligible automatic contribution arrangements and qualified automatic contribution arrangements.

Unfortunately, since December 31 coincides with the tax-reporting period for 99 percent of U.S. individual taxpayers, the average taxpayer will only begin thinking about their 2007 taxes during the first quarter of 2008. Unfortunately, this delay is generally very costly, since almost every individual taxpayer reports taxable income on a cash basis, as opposed to an accrual basis.

The difference between a rhetorical question and a survey question is someone answers. Before we find out what type of question my title is, here’s why I posed it. Firms find about how other firms operate in a number of ways. It might be from contact with partners in other firms; via membership in groups, organizations, or societies; by hiring consultants; or possibly by reading about other firms in professional publications.

WebCPA presents a free online session discussing various facets of philanthropy and its potential benefits for accountants.

I just received the results of a new survey that was conducted by market research provider Vizu Corporation on behalf of RetireeWorkforce.com (courtesy of my friend, Nazli Ekim of SS/PR) in which it is noted that more than three-quarters of people working today say they plan to continue being employed into their retirement years. In fact, almost 40 percent of all respondents report that they anticipate doing so for monetary reasons, either to meet daily needs or to boost their quality of life. These are not surprising results given what’s been happening with the economy today and especially the housing world. Actually, to break this down even more, 34.1 percent of those surveyed claim they will work to “make ends meet,” while another 14.7 percent note they seek employment to “earn extra income to boost their quality of life.” Interestingly enough, 22 percent say that their motivation for working would be “the mental stimulation and challenge” while a scant 4.7 percent explain that it would be for “personal and human interaction.” I always thought that last one was the primary reason. Apparently not…at least, not according to this survey. Joe Salice, the president and CEO of RetireeWorkforce.com, points out that attitudes about work are definitely changing. “People are perceiving work as much more of a lifelong endeavor, rather than simply a lengthy phase.”

Microsoft has debuted a blog, Money Insider, focusing on the latest news about its Microsoft Money personal finance software and MSN Money site.

Mixing a fixed-income annuity into a retirement income account provides greater long-term wealth for investors than a portfolio of equity and bond investments alone, according to a study by MassMutual Financial Group.

California wealth management firms Kochis Fitz and Quintile Wealth Management said they plan to merge, effective Jan. 1, 2008, with the combined firm to be known initially as Kochis Fitz/Quintile until a new name can be found.

Did you know that women provide the lion's share, up to 70 percent, of the $350 billion AARP estimate of the total value of uncompensated caregiving last year in the U.S.? Yep, according to the National Center on Women and Aging, a majority of those female caregivers are employed, but are often forced to reduce their hours or retire early due to their caregiving responsibilities, which can end up costing them each a staggering average of $659,130 in lost wages, savings, benefits, and pension over a lifetime. To help the estimated 40 million women who will retire over the next two decades to achieve increased financial viability, retirement security, and avoid the negative consequences so often related to care giving, LifeSecure Insurance Company and the Women's Institute for a Secure Retirement (WISER) have partnered on a consumer awareness and education initiative. LifeSecure's marketing efforts will include special communications targeting female consumers and creating awareness of the issues. In addition, consumers will be directed to the comprehensive library of useful financial planning, caregiving, and related information at WISER's online data center (see www.wiser.heinz.org/portal). "At LifeSecure, we are committed to helping women overcome the extreme financial and other dangers so often associated with informal caregiving,” says Lisa Wendt, president and CEO. “Having a complete understanding and easy access to accurate and relevant information are probably some of the best weapons women can have in dealing with these issues.” Jeffrey Lewis, chairman of WISER, notes of the partnership, "Over the years, we've found that many people--and most women--simply don't have enough information about building a secure retirement or dealing with negative financial impacts of informal caregiving. The solutions they need begin with understanding and education.” WISER works to increase awareness of the structural barriers that prevent women's adequate participation in the nation's retirement systems. Created in 1996 by Teresa Heinz Kerry, chairman of the Heinz Family Philanthropies, its goal is to improve the long term economic security of millions of American women and men. It is an independent 501(C) 3 organization. LifeSecure Insurance Company (www.yourlifesecure.com) offers a new generation of long-term care insurance coverage. The company is focused on providing understandable, affordable coverage, and high levels of customer service and support. The intention behind all this is to help women feel financially secure and knowledgeable enough about a critical financial issue such as the informal caregiving environment.