Join Tom for a CE event on July 31!

On July 31, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of The Replacement of a Life Insurance Contract: The Good, The Bad and The Ugly.

On a rare occasion, a life insurance contract will have to be replaced. The Internal Revenue Service mandates strict rules as to the replacement and design of the new life insurance contract. Financial advisers need a keen awareness of the applicable sections of the Internal Revenue Code; the various types of life insurance contracts; and the unique features and benefits of each contract type. This presentation will walk the adviser through the replacement process and illustrate the “finished product” with a case study.

The Webcast will be held on Friday, July 31, 2015 at 1:30PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Financial Planning: An Orphan Looking for a Home – Part 5 in an 6 part series

Editor’s note: Portions of the following posting by Susan Tillery, CPS/PFS, CFP, appeared in the January 2011 edition of AICPA Wealth Management Insider Newsletter.

Financial planning needs to be a “stand alone” discipline devoid of conflicts of interest and the moral dilemmas which accompany them.

Financial Planning, without national certification, without universally recognized standards, and without recognition as a profession, has found itself in the midst of a storm of regulatory inquiry. Everyone from consumer groups to Congress wants to regulate this orphan of professional disciplines.

The sky is not falling; the world is not coming to an end even though the media and some financial advisers continue to create a state of fear to facilitate their own agendas. The reality of what is actually happening is that the financial services sector is in the midst of a great moral dilemma. The exact meaning of a dilemma is a situation in which you have to choose between two equally unpleasant alternatives. [Read more…]

Why can’t we be friends? Part 2 in an 6 part series

It was in 1975 during my enlistment with the U.S. Air Force that I first heard the song “Why Can’t We Be Friends?” by the American Funk band War. The song was the title track of an album, which bore the same name. This song, like many by the band, was socio-political in nature and addressed the senseless animosity between races in the United States. Also, NASA played this song was played during the linking of U.S. astronauts and Soviet cosmonauts for the Apollo–Soyuz Test Project.

I would like for all of the various financial planning credentialing entities to hold hands and sing: “Why can’t we be friends?” The needless bickering and infighting is senseless, without purpose, and detracts from the profession. All of this ‘chest thumping’ about ‘my credential is better than your credential’ is a waste of their membership’s valuable resources (dues). [Read more…]

Debt & Moderation

I typically begin a posting with a quote. Today’s posting on the need for, and the responsible use of debt, provided several challenges in the quote department. One challenge is current popular opinion which states that all debt is Biblically and morally wrong. The second challenge, and perhaps very revealing, is that quotes on the responsible use of debt, outside of economic circles, is very limited.

In our practice we use debt with our clients in a variety of ways: asset protection, short term cash flow needs, and as an investment. The ‘true north’ in the application of debt in financial planning is moderation. Moderation as a quotable phrase provided a more substantial harvest. [Read more…]

Home for the Holidays

The holidays provide a time to reconnect with family members. So this is an appropriate time to discuss the family of financial planners. For decades, this financial planning family, as covered by the financial press, has included Chartered Financial Consultants® and CERTIFIED FINANCIAL PLANNERSTM. One family member absent from the published festivities has returned—the CPA Personal Financial Specialist (CPA/PFS).

In this season I am reminded of the critical role of CPAs in the financial planning process because of another cyclical event: the recruiting of CPAs by financial services firms. About every ten years financial services firms go on a binge to recruit CPAs to both refer business (and share in compensation) or to recruit the CPA into Financial Planning, asset management and product sales. The economy has recovered and the season as begun anew. Some recent headlines that have come across my desk are: “10-Step Plan to Meet More CPAs” and “What CPAs Want.” The articles opine that financial services firms through “strategic arrangements” with CPAs hope to provide financial services and products to the CPA’s clients. [Read more…]