Why investing in employees matters more than ever

Why investing in employees matters more than ever. In late 2020, Robert Half’s Paul McDonald delved into the hiring outlook for 2021. The second part of that conversation addresses the ways organizations can keep those already on staff during …

Actived: 5 days ago


The Dos and Don’ts of IRA Investing

(6 days ago) Investing in stocks, bonds or mutual funds. Purchasing properly leveraged real estate, including rental property, when the entire transaction takes place within the IRA trust (the CPA should encourage the client to obtain an advance ruling).

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Tax-efficient investing in gold

(4 days ago) A brief history of investing in gold and typical investment vehicles While it is a popular investment today, gold ownership was restricted for years. President Franklin D. Roosevelt signed Executive Order 6102 in 1933, making it illegal to own more than …

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10 Commandments of Mutual Fund Investing

(4 days ago) Clients can minimize taxable distributions by not investing in a fund just before its "ex-date"—the date the fund pays distributions. For example, assume a client buys shares in a fund for $8.50 per share just three days before the fund pays its quarterly dividend. If the fund makes a distribution of 50 cents per share, the client now has

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Qualified opportunity zone rules are relaxed

(7 days ago) In Notice 2020-39, the IRS extended some deadlines for investing in qualified opportunity funds (QOF) and relaxed some investment requirements to make it easier for QOF investors to deal with the coronavirus pandemic.. The QOF program created a process for designating certain low-income communities and qualifying contiguous census tracts as qualified opportunity zones (QOZs) (Sec. …

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Restricted stock awards and taxes: What employees and

(6 days ago) The use of restricted stock awards to compensate employees is growing in popularity in place of the much-maligned stock option. One of the reasons for the shift to restricted stock is the reduced charge against income provided by restricted stock awards as compared to stock option grants. Restricted stock is

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Taking the "Sting" Out of S Corporations' Earnings and Profits

(6 days ago) Or the corporation might acquire a new active business, either directly or by investing in a partnership from which an allocable portion of the partnership’s active gross receipts will flow through to the corporation. Section 702(b) preserves the character of items constituting each partner’s distributive share of partnership items.

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Advising Private Foundations

(4 days ago) Investing in working interests in oil and gas wells ; Buying puts, calls and straddles ; Buying warrants ; Selling short ; Program-related investments made by a foundation are never considered to be jeopardizing investments, even if the investment is income-producing or is considered high-risk.

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Inscrutable Index Funds

(9 days ago) Momentum investing. In a rising market, the index fund’s upward performance attracts investors to buy more shares. This, in turn, causes the fund to invest in more of the stocks that make up the index. Investor expectations become self-fulfilling and create a phenomenon referred to as momentum investing

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Investing Dos and Don'ts for This (and Every) Market Cycle

(4 days ago) Investing Dos and Don'ts for This (and Every) Market Cycle. Mark Twain wrote, “History doesn’t repeat itself, but it does rhyme.”. With the recent extraordinary events that have rattled the markets and investors, it pays to heed historical precedent and apply (often forgotten) lessons to …

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Taking Stock of ESPPs

(6 days ago) CPAs can help clients compare long-term investing in an ESPP with other options they might have for pre- and post-tax purchases of securities. Some criteria are the ESPP’s discount rate, individuals’ tax rate now and expected tax rate after retirement and the outlook for tax policy on long-term capital gains.

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Don’t Invest for Clients—Plan for Them

(9 days ago) By investing in the mutual fund instead of using that money to repay the loan, Mary is actually losing money—a fact most investment advisers would overlook—due, in part, to annual income taxes on the mutual fund. After paying taxes on capital gain and dividend distributions, Mary’s return shrinks to 8%.

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Socially Responsible Investing

(6 days ago) Community investing. A more direct way for clients to create social change is to invest in both the debt and equity of entities that work to bring about such change. Most community investing involves lending to inner city businesses, depositing money in banks that lend in underdeveloped neighborhoods or investing in mutual funds that engage in

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Corporate Governance and Client Investing

(5 days ago) His current approach to corporate governance investing is to “have confidence in money managers rather than inspecting their individual criteria” for choosing stocks. The key, he says, is for CPAs to “select managers who have established reputations for integrity and ethical practices.”.

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SEC Jurisdiction Over Investment Advice

(3 days ago) According to the SEC division of investment management staff, a CPA is offering investment advice if he or she advises a client “concerning the relative advantages and disadvantages of investing in securities in general as compared to other investments” (Release 1092).

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Self-directed IRAs: A tax compliance black hole

(6 days ago) The appeal of investing retirement funds outside of the typical securities market has driven a surge in the use of self-directed IRA (SDIRA) investment structures. These structures come in various forms, but they all start when an IRA account holder forms an SDIRA with a custodian (e.g., a bank or

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Personal Financial Planning

(5 days ago) Internet Investing Is Getting a Bad Name It’s hard not to get caught up in the hype surrounding online investing. After all, you can’t turn on the television these days without seeing clever advertisements from Internet trading companies exhorting would-be investors to “get rich quick” by trading stocks online. The

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Lessons on Managing Risk in Emerging Markets

(4 days ago) In recent years, as economies in developed countries have slipped and stagnated, a number of U.S. and other companies have sought to fuel growth by investing in emerging markets. There are many benefits to employing such a strategy: By and large, developing countries …

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New Guidance on Auditing Investments

(6 days ago) EXECUTIVE SUMMARY STATEMENT ON AUDITING STANDARDS no. 81, Auditing Investments, updates the auditing literature for recently issued accounting standards related to investments in securities. The SAS offers guidance for auditing the existence, ownership, completeness and valuation assertions for investments. WHEN A THIRD-PARTY CUSTODIAN provides services related to an …

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Fear, Greed and the Madness of Markets

(9 days ago) The term hadn’t even been coined in 1711 when the British government granted the South Sea Co. a monopoly on trade with South America and the Pacific islands. It was a time of unfettered optimism, and all Sir Isaac and others knew was that there were easy fortunes to be made by investing

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Index Funds: Who Are They Good For

(5 days ago) The study—in the Spring 1997 Journal of Investing —assumed a hypothetical mutual fund that Matched the performance of the S&P 500. (During the period the average actively managed fund actually underperformed it by almost 2% annually.) Had average turnover of 80%. Incurred expenses of 1% (although the average fund has expenses of about 1.5%

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Risk and Return in Mutual Fund Selection

(6 days ago) As it relates to investing, it is a measure of how much individual returns vary from the average expected return over a certain period of time. Since the performance history of mutual funds often is reported on the basis of 1-, 3-, 5- or 10-year average annual returns, it is important for CPAs to understand how consistent those returns have been.

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Investment Tax Planning for Retirement

(2 days ago) In the case of Sam and Sue, lower rates mean the “added accumulation” of $81,454 ($232,725 – $151,271) from investing in a deductible pension will exceed the related tax bill. For example, a 15% tax rate during retirement results in a tax bill of $34,909, which is more than offset by the additional $81,454.

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The Internet as an Investment Tool

(7 days ago) has wide-ranging information on investing, managing and spending money, chats with editors, the Boiling Point forum, Dr. Tightwad column, an eConsumer column and more. has market news, fund picks, stock picks, analyst research and alerts. Paying customers get access to premium features.

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What investors want to see

(6 days ago) The top five answers for issues that will affect investing decisions a lot were: Actions taken by the White House (45%). Actions taken by Congress (44%). Changes to U.S. tax policy (43%). Cyberattacks targeting personal financial information or the capital markets (42%). Rising cost of health care (42%). Asked to name the greatest risk to the U

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Business Basics in China

(6 days ago) With U.S.-China trade at record highs and China as the world’s second largest economy, the JofA asked Timothy J. Hilligoss, CPA, MST, partner in charge of Asia for Southfield, Mich.-based firm Clayton & McKervey PC, to share some basics on what U.S. companies face when investing in Chinese ventures. LEGAL/REGULATORY

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Investors’ confidence in U.S. public companies grows

(5 days ago) Investors’ confidence in investing in U.S. public companies—and in audited financial information released by those companies—has risen to a seven-year high in 2014. According to the Center for Audit Quality’s (CAQ’s) Main Street Investor Survey, 80% of 1,049 investors surveyed said they have some, quite a bit, or a great

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Shaking Up Financial Statement Presentation

(7 days ago) The investing category would include all assets and liabilities that management views as unrelated to the central purpose for which the entity is in business and any changes in those assets and liabilities. An entity would use its investing assets and liabilities to generate a return but would not use them in its primary revenue and expense

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Avoiding the squeeze: Trusts, estates, and the new ATRA

(9 days ago) The American Taxpayer Relief Act of 2012 raised the top income tax rate to 39.6%, and a new 3.8% tax on net investment income also applies beginning in 2013. Both taxes apply to trusts and estates with income in excess of $11,950 in 2013, in contrast to much higher thresholds for individuals. This new tax regime necessitates drafting wills and trusts to give executors and trustees maximum

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Where Do Investors Prefer to Find Nonfinancial Information

(4 days ago) The retail investors had on average 10 years of personal investing experience. Criteria for inclusion of nonprofessionals included income greater than $75,000 and availability of assets greater than $50,000 for investing. While we based case materials on an actual company for realism, we disguised the company’s identity (that is, its name and

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The Best Use of Spare Cash

(9 days ago) The most prudent choices are investing, putting money in college savings or retirement accounts, or paying off debts. To help clients rate these alternatives, CPAs should consider three criteria: the after-tax rate of return, the risk and the effect on asset diversification. While risk tolerance and asset diversification decisions vary for each

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FASB proposal addresses cash flow issues

(7 days ago) Cash proceeds received would be classified as cash inflows from investing activities. The cash payments for premiums on corporate-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. Distributions received from equity-method investees.

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Pricing on Purpose: How to Implement Value Pricing in Your

(6 days ago) A business is defined by the value it creates for its customers. Your price speaks volumes about your value proposition, more so than any other component of your firm’s marketing. The business world pricing revolution began in the 1980s, when many of the Fortune 500 companies began to employ professional

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Capex risk management during the coronavirus pandemic

(7 days ago) Less tangible issues are impacts on employee morale, stakeholders, reputation, and the company's mission. It is important to identify these hard-to-measure costs of investing in external business drivers because the impact of external forces on cash is less obvious. 2. Conduct risk identification and scenario analysis

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Investing Ideas and Opinions Only a Click Away

(7 days ago) Investing Ideas and Opinions Only a Click Away. Advisers beware: Social media is increasingly influencing individual investors’ financial decision making. A report from Cogent Research, Social Media’s Impact on Personal Finance & Investing, identified three major trends among investors: Investors are highly engaged in social media.

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Tax-advantaged investing for an uncertain economy

(1 days ago) Investors and their advisers have weathered several years of turmoil, with market conditions often upending conventional investing approaches and related tax strategies. As recently as summer 2010, Federal Reserve Board Chairman Ben Bernanke testified before Congress that the outlook for the U.S. economy remained “unusually uncertain.”

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Tolerance for high risk puts Americans’ investments in

(1 days ago) Tolerance for high risk puts Americans’ investments in jeopardy. Americans’ embrace of high-risk strategies — along with a limited understanding of investing — may put their savings in jeopardy, a new poll shows. Despite the stock market’s volatile record in 2018, at least a third of Americans would describe the market as stable

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Index Funds: Criticisms and Comments

(9 days ago) However, this is a macro issue unrelated to index investing. Following the notion that index funds cause momentum stock buying, the article suggests that one should cut back or “rebalance” from winners to other, presumably, less winning names.

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Ask the expert: Investing with an eye on taxes

(3 days ago) Duncan Gates is Avantax’s Strategist–TSI Advisor Experience. In this role, he is responsible for providing education on tax-related topics and concepts, advisor training, and distribution of the Tax-Smart Investing platform.

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SEC changes disclosure rules, redefines ‘accredited

(5 days ago) SEC changes disclosure rules, redefines 'accredited investors'. The SEC voted Wednesday to change certain public company disclosures and make more investors eligible to participate in private capital markets as accredited investors. Public company disclosures of the description of business (Item 101), legal proceedings (Item 103), and risk

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