Time to Talk Taxes
We’re getting close to the end of the year, which means mutual funds will be declaring and distributing capital gains. Earlier this year, the prospect of capital gains was minimal, but with the resurgence of the stock market, it is an issue to consider. Also, when the market was struggling, I sold some funds to capture capital losses in anticipation of the day when it would rebound. It seems today is that day. In addition, I plan to ask clients about any capital loss carryforwards they may have from previous years. These two issues also present a prime opportunity to reduce the total number of funds under my purview. A few months ago, I had 98, today I have 88. Eventually, I’d like to get this down to fewer than 50. Since capital gains season is approaching and the market has risen over 50% from March 9th, it seems to be a good time for this.
Advising Clients
Last week I had a new client ask me to help him with some important decisions pertaining to retirement. Specifically, he asked me to attend a meeting and advise him on the best course of action. Once again, I am reminded why I am in this business. It’s not just about investing money. It’s about being there for the client when they have decisions to make. It’s about simplifying their lives, and one way that can be accomplished is through consolidating their investment holdings.
Continuing Education
When I was new to the financial services business more than 20 years ago. I recall being nervous that some clients might know more than I knew. After all, I was the new guy on the block and lacked the experience of the seasoned veterans. Perhaps this is one of the motivating factors behind my placing such a high value on learning. Perhaps my desire to learn was born out of fear? Fear is a key motivator. In any event, as we encounter clients with unique circumstances it forces us to read and learn, and when we do we add value to the client relationship. We’re in the question-answering business. Since we cannot possibly hold the answers to every question we may encounter, it pays to have a good resource handy.
I’d be interested to know what you resources you use to research various issues on taxes, estate laws, and other complicated topics that you may not deal with every day.
Research on tax, estate planning, qualified retirement planning.
Mike
The tax code drives much of the estate planning and qualified retirement planning stuff in addition to income taxes. I find a lot of answers in the Quick Finder Tax Planning for Individuals and Quick Finder Tax Planning for Business. These readable guides are organized by situation such as retirement plans, children, education, etc. Plus, the guides are updated and published each year. They also have Quickfinder for tax preparation.
Good luck,
Elaine Webb CFP(R) EA
Mike, I have been reading your blog with great interest over the past several months. Thanks for everything you share with us.
I have found Quickfinder to be a good basic resource for personal and business income tax issues. Practitioners Publishing Company also publishes good resources, and they are available by annual subscription. One of the things I like about PPC is that they seem to have thought of just about everything–and they have great checklists.
Another invaluable resource is having a CPA and an estate attorney to exchange ideas with.
Elaine & Paul,
I was introduced to Quickfinder in 2004 and found it as you say, a great resource. Actually, I had forgotten about it. Thanks for the reminder. I’ve also used Forefield and PPC. Paul, Do you subscribe to PPC and if so, how costly is it and I suppose I should ask which modules you subscribe to?
Thanks for your comments!
Mike, I do subscribe to PPC. I have their 3-volume guide to Personal Financial Planning, and I think the annual subscription is around $250. I have an active business valuation practice in addition to my wealth management business, and I subscribe to other PPC products at a similar price.
Hi Paul,
Just got back in town from a cruise to nowhere. $250 per year? Is this an online subscription, a CD, or a print version? I might like to check it out.
Hi Mike,
I get the print version. I would be happy to email you the table of contents, if you would like. My email address is on my website.
Paul,
Since my last post, I’ve contacted Thomson and have a 30 day free trial to the web based version. Thanks for pointing this out!