kitces.com | Nerd's Eye View

Navigating the Future of Planning by Understanding the Past

nospam@example.com (Michael Kitces) — Mon, 02 Nov 2009 13:43:06 -0500

As George Santayana said, "Those who cannot remember the past are condemned to repeat it," but fortunately we don't need to remember the past ourselves, at least when it comes to financial planning. E. Denby Brandon, Jr., and H. Oliver Welch, have done it for us in their new book "The History of Financial Planning: The Transformation of Financial Services."

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FPA Slashes Away - At Staff and Conference Prices

nospam@example.com (Michael Kitces) — Mon, 02 Feb 2009 10:52:01 -0500

Already being experienced by consumers and financial planners, it seems that the economic downturn has arrived on the doorstep of the Financial Planning Association as well. In the past week, the FPA national organization has slashed their staff by approximately 12%, and the price of their upcoming conference by over 70%!

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State Farm backs away from CFP designation

nospam@example.com (Michael Kitces) — Thu, 29 Jan 2009 13:53:15 -0500

In a message board thread on financial-planning.com, initiated by Harold Evensky, there is an interesting discussion of the fact that apparently State Farm has directed all of their agents to voluntarily relinquish their CFP marks. It appears that an overarching fiduciary standard is "not conductive to [their] business model."

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CFP Board off to a Good Start for 2009 Communications!

nospam@example.com (Michael Kitces) — Mon, 05 Jan 2009 10:09:38 -0500

After nearly a decade of ongoing complaints about the poor communication with respect to the CFP Board and changes/initiatives that it launches, it appears the organization, under the guidance of its "new" CEO Kevin Keller, has turned over a new leaf for 2009. Or at least, it's off to a good start.

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A new way to promote visibility for a fiduciary standard?

nospam@example.com (Michael Kitces) — Tue, 30 Dec 2008 09:44:52 -0500

Noted financial planning writer and commentator Bob Veres has initiated an entry on Change.org, entitled "Fix the financial regulators by imposing a fiduciary standard on all who offer financial advice." Will this be a new way to make the call for fiduciary standards better heard in Washington?
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IRS Expands Investment Flexibility for 529 Plans - For 2009 Only!

nospam@example.com (Michael Kitces) — Wed, 24 Dec 2008 13:38:16 -0500

Under the existing rules for 529 plans, account owners can only make investment selection adjustments once per year (or when there is a change in beneficiaries). Under the new relief just released from the IRS for 2009, 529 plan account owners will now be eligible to make changes... twice.
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Is There Really Much Value to Suspending 2009 RMDs?

nospam@example.com (Michael Kitces) — Wed, 24 Dec 2008 12:18:55 -0500

Yesterday, President Bush signed into law H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), which included certain provisions designed to suspend so-called Required Minimum Distributions (RMDs) for the upcoming 2009 tax year. But will that really do much to help our clients? Probably not in most cases.
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Learning More About How NOT To Do Financial Planning

nospam@example.com (Michael Kitces) — Fri, 17 Oct 2008 15:52:27 -0400

The results are in for FPA's first ever video competition on "How NOT To Do Financial Planning", and congratulations to Dave and Rob Daline of Minnetonka, MN, for their winning video "Winston the Pug."
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Are We Really Ready for true Standards of Care?

nospam@example.com (Michael Kitces) — Wed, 15 Oct 2008 11:30:24 -0400

Continuing the fiduciary financial planning momentum created by the CFP Board's release last year of their updated Standards of Professional Conduct, the FPA has promulgated one of the first formal statements of a "Standard of Care" for the delivery of financial planning services - a step that many consider to be crucial for financial planning to become widely recognized as a profession. But is the planning community really ready to go where this road leads?

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Is the Safe Withdrawal Rate too safe? Or too aggressive!?

nospam@example.com (Michael Kitces) — Mon, 22 Sep 2008 11:36:57 -0400

As readers of my newsletter know, in May I published research that challenges the safe withdrawal rate as potentially being TOO safe in some environments, where market valuation is not at unfavorable extremes. However, in some feedback I've received from readers, another important point is being made - in some cases, the safe withdrawal rate may also still be too aggressive!
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Using average cost accounting for Exchange-Traded Funds?

nospam@example.com (Michael Kitces) — Fri, 05 Sep 2008 16:33:01 -0400

The average cost accounting method was first created to allow a taxpayer to simply report the gain on partial sales based on the average cost of all shares purchased (instead of the default FIFO treatment, or by using specific share identification), but was reserved exclusively for mutual funds and not for individual equity securities. However, it appears now that the rules may be a little broader than anyone realized - because technically, an exchange-traded fund (ETF) may also be eligible, notwithstanding the fact that it trades more like a stock than a mutual fund.

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The plight of the independent RIA

nospam@example.com (Michael Kitces) — Wed, 27 Aug 2008 10:15:42 -0400

A new campaign is underway to help promote the visibility of independent RIAs to the general public. But the focus is not to increase awareness of the differences between RIA and broker/dealer compensation, nor to explore the fiduciary versus suitability debate. Instead, it's simply to convey the message "We exist."

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Is the Military Leading the Cutting Edge of Financial Planning?

nospam@example.com (Michael Kitces) — Tue, 19 Aug 2008 17:42:16 -0400

In the midst of the financial planning community's struggles to figure out how to serve the mass middle market in an effective manner, a surprising new entrant to the field may lead the way in showing how to get it done right. Welcome to the Personal Financial Counselor Network, brought to the U.S. military courtesy of the Department of Defense!
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Negative buzz about Vanguard's IRA beneficiary rules

nospam@example.com (Michael Kitces) — Mon, 18 Aug 2008 10:42:31 -0400

Do your clients have retirement accounts held directly with Vanguard? More than one? Do you know who the beneficiaries are for each account? Are you SURE you have that right? Sorry, think again.

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Things are Heating Up with the Next Generation... of No-Load Life Insurance!

nospam@example.com (Michael Kitces) — Thu, 26 Jun 2008 15:50:30 -0400

For many years, the no-load space for life insurance products has been very limited, to a large extent because fee-based advisors were perceived as being a very weak target market by the traditional insurance companies. However, a new entrant to this marketplace is raising the stakes on the pricing and transparency of permanent life insurance, and is starting to get some attention as a result!

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