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CPA financial planners poll cites client concerns.

According to 151 CPA financial planners attending the American Institute of CPAS 1993 Personal Financial Planning Conference, the possibility of income tax increases in the 1990s was the most important client concern. The survey, taken about one week before President Clinton's inauguration, found that 38% of CPA financial planners' clients were concerned income taxes would take a larger portion of their income. Another 24% of the clients were concerned they would not be able to reach retirement goals. Volatile investment markets and estate taxes were each cited as client concerns by 13% of the CPA financial planners.

As further confirmation of client concern over higher income taxes, 37% of those polled said income tax planning was the practice area that had drawn the most attention since the election. Estate planning was mentioned by 25% of the CPA financial planners, with 14% citing health care costs.

Seventy-three percent of the respondents said they had experienced a moderate increase in the number of people seeking financial planners over the past year. This confirmed the response of 61% of the CPA financial planners that clients were either concerned or very concerned over their personal finances in light of the presidential election.

The poll also confirmed that clients tended to save less than CPA financial planners suggested. For example, 22% of clients saved 0% to 4% of their gross income, a savings level recommended by only 2% of the planners polled. Another 31% saved between 5% and 9%, a range recommended by only 17%.

On the other hand, 60% of the CPA financial planners said they recommended clients save between 10% and 14% of gross income, but only 35% did so. Seventeen percent of the planners recommended saving between 15% and 19 of gross income, but only 7% of clients did so. Whereas 5% of the planners recommended saving 20% to 24%, only 4% of clients saved that much.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Mar 1, 1993
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