December 2008

Focus

The Parent Care Solution: How Planners Can Help Clients with Aging Parents
by Jim Grote, CFP^®
Helping clients as they age, from buying long-term care insurance to finding assisted living, has long been a standard role for planners. But they are finding that they also need to help clients with their aging parents who may be hurting their clients' financial position.

Columns

Professional Issues 
Living with Grace
by Ross Levin, CFP^®
It's been—and will likely continue to be—a difficult year for planners and their clients. But there is much to be grateful for, including having a job that can make a difference in your clients' lives.

Investment Research 
Depression Fears Overblown
by Mark W. Riepe, CFA
A recent national poll found that 60 percent of Americans believe the U.S. economy is heading for a depression. Not by a long shot, says our columnist, who offers eight reasons why we won't repeat the 1930s.   

Tax & Estate Issues 
Estate Planning and the 2009 Increase in Exemptions and Exclusions
by Jon J. Gallo, J.D.
The 2009 increase in estate and gift taxes, the 2010 suspension of estate taxes, and the return to the old rates in 2011 (this author says it's not likely) are almost upon us. Here are some planning strategies to cope with these fast-moving changes.

Money & Soul 
Back to Basics: Helping Clients Manage Cash Flow
by Eric H. Kies, CFP^®
In the midst of a disastrous market, planners need to get back to the basics: helping their clients understand and manage their cash flow.

Contributions

Creating Wealth in the 'Overlooked' Defective Beneficiary Trust
by James F. Hopson, J.D., CPA; Jo Lynne Koehn, Ph.D., CPA, CFP^®; and Patricia D. Hopson, CPA
Defective irrevocable grantor trusts are a common tool for estate planners, but many of these planners overlook the benefits of the defective beneficiary trust, including favorable income tax and estate tax treatment for the trust and tax-free transfers between the trust and the trust's owner.

Joint Life Expectancy and the Retirement Distribution Period
by David M. Blanchett, CFP^®, CLU, AIFA^®, QPA, CFA, and Brian C. Blanchett, CPA, CFP^®, AIF^®, CFA
Most research on sustainable withdrawals from retirement portfolios is based on fixed distribution periods. But the real issue is whether the portfolio runs out of money before the client dies. Using joint life expectancy instead of a fixed period suggests that clients can withdraw more.

Understanding the Factors Influencing the Income Gap Between Divorcees
by Kelly D. Hale; Adolph A. Neidermeyer, Ph.D.; Timothy A. Pearson, Ph.D.; and Richard A. Riley, Jr., Ph.D.
Most planners know that a divorce typically results in a greater negative financial impact on the woman than on the man. But by knowing why that happens, planners can more effectively help the client reduce that income disparity.

Departments

Starting Thoughts
Observer (PDF | 5.3MB)
10 Questions: Marsha Firestone on the Future for Women Entrepreneurs (PDF | 3.2MB)
Continuing Education Exam