Accounting education

The Supreme Court has handed down a unanimous decision in a case involving the deductibility of investment advisory fees by trusts, ruling that the expenses are deductible only to the extent that they exceed 2 percent of the adjusted gross income.

KPMG has created a Web portal with accounting and business resources for university professors.

New York University's School of Continuing and Professional Education plans to begin offering a new certificate in not-for-profit accounting and governmental reporting.

Ernst & Young has been holding a conference in New York this week to attract ethnically diverse college students to the tax profession.

Payroll processor Paychex has introduced a debit card that offers a way for a business client's employees to access their flexible spending account funds.

Tax practitioners who take the plunge into financial planning find that it's a natural step to go from preparing a tax return and answering a client's questions, to tax planning and full-scale financial services."Financial planning has been a nice blend of what I'm already doing for my clients," explained Matawan, N.J.-based CPA Salim Omar.

In gearing up for a new season of continuing professional education, providers are offering more of the same popular courses - updates in ethics, risk assessment standards and internal control - but are also responding to growing demand for diversity in delivery formats."We found that many of our members are favoring four-hour programs, contrasted with eight-hour programs," said Alan Schmelkin, managing director of operations for the New York State Society of CPAs, adding that he plans to offer upwards of 15 new titles at the shorter length. "Some people aren't able to commit for a full day. It's a much more acceptable kind of education timing for some of our audience."

By now, the excitement of receiving college acceptance letters is likely to have been long ago replaced by the shock of the tuition bills that follow enrollment. Or the joy of a child's graduating from college - and no longer incurring tuition - is eclipsed by the obligation to repay student loans. As families scramble to get the largest grants and lowest interest rates available, they should not overlook the tax implications of the arrangements they make.The tax breaks fall into two categories: ones for paying the education costs themselves, and deductions for paying interest on loans used to pay the bills. Most of the tax provisions are restricted to those with incomes below specified amounts, and those amounts vary from one tax provision to another. This creates additional confusion for families attempting tax planning and increases their need for professional guidance.

FIXED-INCOME ANNUITY HELPS RETIREMENT INCOMEMixing 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.

A new wealth management firm is launching as a result of a merger between Yampolsky Mandeloff Silver Ryan and Citrin Cooperman & Co. LLP.

Is weather more important than healthcare costs? According to a new national research from Longevity Alliance and conducted by Harris Interactive, U.S. adults aged 40+ who plan on relocating after they retire may overlook how their healthcare costs could change from one location to another. Actually, about three in four (76 percent) of adults planning to relocate after retirement say that they consider the cost of healthcare as important or very important in their decision. But, the cost of healthcare is ranked number three of five behind the overall cost of living, and climate, and just ahead of ease of transportation and proximity to friends and family. What this means is that overlooking the cost of healthcare and health insurance can have real consequences for retirees. Costs vary from one part of the country to another and insurance premiums, Medicare health plans, Medicaid, and long-term care rates can also change exponentially. As an example, consider that the average annual premium for a Medicare Supplement insurance policy in New York could be around $3,700; yet that same policy holder moving to Phoenix will find the premium to be as low as $1,200. Quite a difference. According to Longevity Alliance president Steve Zaleznick, too may times, people considering retirement and relocation don’t give any thought to how it could affect their healthcare and insurance costs. “As retirees grow older, those costs grow larger, so choosing a region that makes those costs affordable is a key component of a sound retirement strategy.” Zaleznick offers five specific tips before anyone moves:

Banking giant HSBC USA has said it would sell its Wealth and Tax Advisory Services USA business to some of its managing directors for up to $65.9 million as part of a management buyout.

The Internal Revenue Service and the Treasury Department have proposed two sets of regulations relating to pension plans.

In the event you just came in from Mars, you will note that we are getting ready to launch into the year 2008. This is generally the time of year when everybody and his dog begin to hit us over the head with all kinds of financial advice. It’s also the time of year which is usually referred to as “housekeeping time.” That’s where you take an annual review of your total financial picture. Not everybody does this, which is kind of unfortunate. Most people don’t seem to realize that during the last year, things have changed such as personal goals, financial plan, even life circumstances. According to Stoker Ostler Wealth Advisors (formerly Private Wealth Management), a fee-only wealth management firm based in Scottsdale, Arizona, this is the time to revisit key areas and see if changes need to be made that will better serve your needs. Cody Amis, senior financial planner at the firm, says “Just like getting an annual physical, doing maintenance on your house or having your car tuned up, you want to take a look at your total financial picture at least once a year. Accounting for life changing events can help steer you on the path to your dream of a secure future.” Amis is a firm believer that organizing financials annually will set the right tone for financial success. “It’s a myth that this is only for people who are older or wealthy,” he adds. “I can’t emphasize enough how important this process is for young families, single mothers, retirees, and anyone who owns a house or property.” He offers five tips to help people get organized: 1) Create a Statement of Net Worth. This, he says, serves as a snapshot of all of your individual assets and liabilities. 2) Review your Estate Plan. Amis advises that it is important to have a will, Revocable Living Trust, Durable Powers of Attorney, and Health Care Powers of Attorney. 3) Risk Management. He notes that it is also important to identify any significant changes to your family or your assets that may warrant an adjustment to your insurance policies. In other words, the advice is to make sure that your property, liability, and health insurance policies offer coverage consistent with your needs. 4) Review Your Retirement Plan. Amis says that the new year is an ideal time to maximize your retirement plan contributions or revisit the plan’s investment allocation. 5) Don’t Procrastinate. Make a commitment to have your financials in order by the end of January so that you can get the most out of 2008. In short, the sooner you get organized, the better. And a Healthy and Happy New Year to you and yours. See you in ’08.

The Government Accountability Office has released a report on the possibility of using accrual budgeting instead of cash budgeting to bring more attention to the nation's long-term fiscal challenges.

Hey, all you single, married, and divorced women out there. Guess who the model investor is? Nope. Guess again! It’s not any of you. Can you believe that widows make model investors? How’s that again? Well, based upon a recent national survey from OppenheimerFunds, it was found that widowed women had more confidence when it came to managing their money with some 65 percent of the respondents giving themselves a rating of 8 or better on a scale of 100 when asked how good of a job they were doing. You can compare this number with 40 percent of married and co-habitants, and 52 percent of divorced respondents. Lauren Coulston, Assistant Vice President, Advocacy and Training Manager at OppenheimerFunds, says “It makes sense that women who are responsible for their own finances through a major life event such as widowhood or divorce have more confidence in their money management skills.” She notes that one possible reason for this confidence is that more widows work with financial advisors. In other words, widowed women are often forced to deal with their own finances. Seems to make a lot of sense in that widowed women appear to do more financial planning and on a more methodical basis. Incidentally, according to the survey, widowed respondents were also more likely to list retirement as their primary investment goal followed by divorced, married/co-habitants, and single women. Moreover, they are least likely to cite a lack of money as the reason they are not participating in a retirement savings vehicle or plan. I was especially interested in who widows relied on for investing advice. You got it! The financial advisor. “The fact is, eighty to ninety percent of women will be solely responsible for managing their own finances at some point of their life due to longer life expectancies and higher divorce rates,” adds Coulston. “Regardless of marital status, financial advisors should bring women into financial conversations as early as possible.” I couldn’t agree more. By the way, consider too the fact that more than 60 percent of the women surveyed here had over $5,000 in household debt and more than 30 percent maintained over $20,000 of debt. Number one source of debt? The credit card, of course. And to put a topper on all this, consider this salient fact. Widowed respondents were the least likely to carry any debt. Bottom line? You don’t have to be in a widowed state to work with a financial advisor. All marital demographics could benefit. And the earlier you get started, obviously, the better off you will be.

The American Institute of CPAs received 24 marketing awards, mostly for its "Feed the Pig" campaign aimed at encouraging Americans to prepare better for long-term financial security.

Financial planning isn't magic, but it is an art as much as it is a science. Different planning practices deal with different kinds of investment vehicles. But regardless of the vehicle, financial plans are rarely static.That's because clients' investment goals and resources change over time. What was right for last year's goals may not be right today, and will almost certainly change tomorrow.

FIDELITY LAUNCHES WEB-BASED FP TOOLFidelity Investments has introduced the Fidelity Retirement Income Evaluator, a Web-based planning tool designed to help advisors create and manage retirement income plans for their clients, as well as build a more efficient and profitable retirement business model.

You know what a Honey is? No, it’s not my wife, at least not in this context. It’s $100,000. Suppose you hit one of those lotteries or publishing prizes and a cool $100,000 is dropped into your lap. And let’s say you or your client (if you’re the financial planner or CPA involved) is between the ages of 62-75. Well, my friend Frank Piemonte, of River Communications, who is a fount of information and has his finger on the pulse of what’s happening with the senior community, told me about this new Senior Sentiment Survey from Financial Freedom, one of this country’s largest reverse mortgage lenders. The study explored the financial, social, and quality of life attitudes of older Americans. What were the results? Basically, 55 percent of seniors would bank the windfall. In fact, according to the survey, more than half of those seniors interviewed felt confident that they will have enough income to meet their needs during retirement and 51 percent say that the top two sources of income are Social Security and income from pension plans or other defined benefit plans. Insofar as debt is concerned, the majority (69 percent) do not have, or do not plan to have, any debt in retirement. Of those with debt, 79 percent have more than $15,000 and 23 percent never expect to pay it off. By the way, 40 percent of homeowners plan to still carry a mortgage into retirement. Survey While we’re at it, it’s interesting to note that 79 percent of seniors live in a single family home that is not part of a retirement community. They say that they would drop the $100,000 in a savings account or CD as their top choice, followed by paying off debt, making a charitable donation, and investing it in conservative, low risk investments, So, here’s the way it stacks up: - 55% Bank it (savings account or CD) - 48% Pay off debt (loan, mortgage, etc.) - 41% Donate some money to charity - 41% Invest the money in conservative, low risk investments - 24% Give the money to children/relatives - 21% Make a major change or renovation to home - 17% Invest the money in stocks, thereby assuming a higher level of risk - 15% Purchase a luxury item such as a car, boat, RV, etc. - 10% Use it to underwrite health care costs - 8% Purchase a new home - 4% Become a benefactor and donate some of the money to an alma mater - 3% Retire - 6% Other - 3% Nothing, just hold on to the money Now, as a financial planner, consider where you may come into all of this. In order to build trust among seniors, direct contact is still the key. Seniors are most likely to trust professionals if they deem the person to be of good character (67 percent) or deem the person to be an expert in the field. Bottom line? Become a honey to the honey. Seniors desire personal contact to build trust among professionals.