CPA Observation Post

Retirement-distribution talk must be done earlier, expert says

Financial advisers should talk with clients about retirement distribution as much as a decade earlier than is customary, said C. James Johnson, vice president of Allianz Life Insurance. The distribution phase of retirement investing is more important than the accumulation phase, but many financial advisers never get around to talking about it, Johnson said. Read More>>

Survey: Finances Causing Rifts for American Couples

Financial matters are the most common source of discord among American couples, prompting an average of three arguments per month, according to a national telephone survey conducted for the American Institute of CPAs (AICPA) by Harris Interactive. >>Read More

Report: Social Security is running out of money faster than forecast

The U.S. Social Security program's trustees said in a report that the combined old-age benefit and disability trust funds are running out of money faster than expected and won't be able to pay full benefits in 2033. That is three years sooner than the trustees projected in their report last year. If Congress does nothing, one official said, the government will still be able to pay 75% of promised benefits. Read More>>

Congress might reduce tax breaks for retirement savings

For the first time, Congress is seriously considering reducing exemptions for taxation of retirement savings. Such incentives cost the government more than $200 billion annually in lost revenue. Read More>>

Financial advisers embrace social media despite concerns

Financial advisers' move to social media is accelerating, despite concern about compliance, according to a survey by Registered Rep. and WealthManagement.com. Advisers increased business use of social media by 12 percentage points during the past six months, the survey found. LinkedIn is most popular among advisers. Read More>>

IRS proposes easing IRA minimum distribution rules to allow retirees to purchase annuities (via @AICPA_JofA)

In proposed regulations issued on Thursday, the Internal Revenue Service proposed changing the required minimum distribution rules for IRAs and certain other retirement savings plans to allow taxpayers to purchase "qualified longevity annuity contracts." These would serve as a hedge against the taxpayers' risk of outliving their retirement savings. Read More>>

Social Security recipients to get 3.6 percent increase

Some 55 million Social Security recipients will get a 3.6 percent increase in benefits next year, their first raise since 2009, the government announced Wednesday. The increase, which starts in January, is tied to a measure of inflation released Wednesday morning. Read More>>

Senate finance panel considers retirement, 401(k) reform

The Senate Finance Committee hearing today will consider options for overhauling the retirement-investment industry. Among the options under consideration: the replacement of the 401(k) tax deduction with a flat-rate tax-break; an increase in retirement age; and a change in the method for calculating Social Security benefits. Read More>>

Retirees Should Delay Social Security, Add Annuities, GAO Says

Retirees may have to delay Social Security benefits and buy an annuity to have enough money for retirement, said a U.S. government study. Increased life expectancies and health-care costs coupled with declines in financial markets and home equity over the last few years have “intensified” workers’ concerns about how to manage their savings in retirement, the report said. Read More>>

Americans Raiding Retirement Funds Early

Nearly one-fifth of full-time employed Americans have raided retirement accounts in the past year to cover emergencies, according to a national Bankrate survey. Despite increasing signs of a stabilizing U.S. economy, 19% of Americans -- including 17% of full-time workers -- have been compelled to take money from their retirement savings in the last year to cover urgent financial needs, the Financial Security Index found. Read More>>