Monthly Archives: February 2011

Four More Years: Clients Delay Retirement

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“Boomers have been scarred.”

Half of Baby Boomer clients who have postponed retirement due to the economic downturn expect to work at least four years longer than they originally planned, according to CPA financial planners.

Fifty-two percent of CPA financial planners said their clients – who typically have between $500,000 and $5 million in assets – are at least somewhat confident in the stock market now — a turnaround from a year ago when 54 percent said their clients were not very confident.

More highlights:

  • 48 percent of CPA financial planners said their typical client is somewhat or very pessimistic about the U.S. economy amid gaping budget deficits and high unemployment.
  • 51 percent of CPA financial planners said at least one client was turned down for a mortgage or refinance in the past year. The most common reasons: Lower home values and higher underwriting standards.
  • 44 percent of CPA financial planners said their average client emerged from the recession with increased net worth and 17 percent saw their net worth stay the same.

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Are Refund Anticipation Loans Dead?

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“Last nail in the coffin.”

via consumeraffairs.com

The Federal Deposit Insurance Corporation has notified Republic Bank & Trust of Kentucky that the bank’s high cost refund anticipation loans are “unsafe and unsound,” effectively cutting off Jackson Hewitt and Liberty Tax, the second and third largest tax preparation chains in the country.

The FDIC’s action follows a similar action by the Office of Comptroller of Currency, which issued a regulatory directive on Christmas Eve against HSBC (H&R Block’s RAL partner bank) prohibiting that bank from making RALs.

“This may be the last nail in the coffin for RALs,” said Adam Rust, Research Director for Community Reinvestment Association of North Carolina. “If so, we will be glad to see the death of these high cost, high risk loans.”

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Is Your Cell Phone a Security Disaster Waiting to Happen?

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In annual AICPA survey, CPAs advise companies to manage risk of mobile devices.

via AICPA

Smartphones, tablets, laptops and flash drives in the workplace emerged for the first time as the top business technology concern for CPAs and financial executives in the AICPA’s annual Top Technology Initiatives Survey.

The 22nd Annual AICPA Top Technology Initiative survey shows control and use of mobile devices was the No. 1 challenge for IT professionals. The finding was based on responses from nearly 1,400 CPAs nationwide specializing in information technology. In addition to mobile devices, the survey signaled future IT issues will revolve around implementation of touch-screen technology, deployment of faster networks and voice recognition technology.

Top Tech 2011 ranking:

  1. Control and Use of Mobile Devices
  2. Information Security
  3. Data Retention Policies and Structure
  4. Remote Access
  5. Staff and Management Training
  6. Process Documentation and improvements
  7. Saving and Making Money with Technology
  8. Technology Cost Controls
  9. Budget Processes
  10. Project Management & Deployment of New Technology

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