especially in this economic climate, when clients need more help than ever, cpas have an obligation to break out of their compliance-only mindset to help clients plan for their futures.
richard l. engebretson, vice president at wealthstar alliance, a service of aviva usa, suggests cpas are overlooking huge opportunities if they’re not helping clients with retirement planning.
engebretson, a pivotal figure in the creation of the trusted advisor network of pfp cpas, is now applying his ideas to a new project, wealthstar alliance, for aviva usa, the big insurance company. we had a few questions for engebretson, and, predictably, engebretson had some pithy answers:
1. short-term, what should cpas be doing in this economic environment to best help their pfp clients?
cpas should be managing the investment behavior of their pfp clients and helping them remain focused on their long-term objectives and goals. in addition, cpas should be conducting “retirement audits” for all of their pfp clients near and in retirement to insure the clients’ assets will have the propensity to generate the necessary income to substantially sustain their lifestyle and needs during their life expectancy.
2. long-term, what’s the outlook for cpa pfp services?
the outlook for cpas in the pfp arena is very promising. cpas have the unique advantage of helping their clients create tax optimized comprehensive financial plans. no other financial services professional can effectively provide tax advice in combination with the client’s overall wealth management needs like a cpa can. this reality will serve the cpa well in a new era of potential higher taxes for america’s affluent citizens.
3. and how can cpas best seize those future opportunities?
cpas need to proactively assume the position of being their client’s financial guardian. cpas need to go beyond the basic threshold of pure compliance work and reach out to their clients in these troubled times and take the responsibility of looking at their comprehensive financial picture and guiding them to their desired financial end.
4. what’s the biggest misconception cpas may have about adopting or expanding their involvement in pfp services?
many cpas consider it a conflict of interest to help their clients in the area of wealth management and significantly underestimate the privileged opportunity available to help their clients. the vast majority of their clients need and want their help. studies have shown that clients want their cpa to serve as their central planner who will coordinate their financial life and guide them into the future.
5. what else should we be asking?
it appears that many cpas are leaning towards registered investment advisor activities vs. broker dealer related activities, and cpas may be interested in principle protection products.