[quote]You arrogant fool. What exactly is financial planning? It's nothing more than asking a client what are your financial objectives for the short-term, the intermediate-term and the long-term, assessing whether those objectives are reasonable, and then devising a savings plan and portfolio of investment that will achieve those objectives, and then periodically analyzing the results and making the appropriate adjustments. Any CPA is qualified to assist with all of those except the selection of the specific investments, that is where the financial/investment advisors come in.

I am confused as to how anyone could possibly develop a comprehensive financial plan without considering income and gift and estate taxes. Since those tax issues are an integral part of the plan how can you exclude the CPA from the process? Or do you feel you are competent enough in tax matters to deal with those issues?

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Posted by Janky

Team Primo

Member since Jun 2011

35957 posts

Posted on 7/16/12 at 3:13 pm to Poodlebrain

quote:
I am confused as to how anyone could possibly develop a comprehensive financial plan without considering income and gift and estate taxes. Since those tax issues are an integral part of the plan how can you exclude the CPA from the process? Or do you feel you are competent enough in tax matters to deal with those issues?

The odd thing is that alot of FA's don't really want to include the CPA or attorney because they might shitcan their chance to sell some insurance. 9 out of 10 times the comprehensive plan will say they need more insurance and that the client should establish an ILIT. However, the CPA often times will suggest using other methods such as FLP's as well as other things.

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Posted by Maderan

Member since Feb 2005

809 posts

Posted on 7/16/12 at 4:00 pm to Poodlebrain

I think the CPA is an important part of the process especially when it comes to financial planning.

But as you noted Poodle financial plans and investments are two different animals. I don't think anyone can act as a CPA and investment advisor and really be great at both. Just not enough hours in the day.

Kind of falls into the "Jack of all trades, master of none" approach.

When it comes to qualified plans I do believe a large portion of the CPA community is lacking in general knowledge as to what is best to achieve a client's goals.

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Posted by amsterdam

In His Word

Member since Jul 2008

1033 posts

Posted on 7/17/12 at 3:07 pm to Poodlebrain

Relax Poodle, your entitled to your opinion but mine is that CPA's should shy away from giving investment advice. I work closely with many of my clients CPA's. I respect them for the integral part they play and the advice they give. At the same time the simple nature of many of the questions they ask me reveals how little they know when it comes to certain investments.

quote:
I am confused as to how anyone could possibly develop a comprehensive financial plan without considering income and gift and estate taxes. Since those tax issues are an integral part of the plan how can you exclude the CPA from the process? Or do you feel you are competent enough in tax matters to deal with those issues?

Dont be confused because I couldnt imagine implementing a financial plan without the assistance of a CPA and an estate attorney. Yet is seems to me you were advocating excluding a CFP from the financial planning process which is something I have a hard time understanding.

To directly answer your question of CPA's being competent on tax matters - yes obviously they are, being competent to develop a comprehensive financial plan? Um...No they are not

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