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Survey reveals worry, confusion - and opportunities.

In January 1997, 1,000 people, aged 30 to 59, were interviewed by phone on a variety of financial planning concerns. Some of the results presented here are compared with earlier surveys. Barton Francis, CPA, PFS, a partner of Ernst & Young and chairman of the recent American Institute of CPAs personal financial planning conference, commented on what these trends reveal about financial planning attitudes. He also discussed opportunities for CPA financial planners. (Francis, the AICPA, and the firm were not involved in collecting data or organizing this survey, however.)

Francis advised CPAs to look over these results and consider how they reflect their clients' situations. "Qualified CPAs would be doing a great service to their clients by bringing up these issues and helping clients develop solutions to their problems." "The increasing number of people who cite `making ends meet' as their greatest financial concern shows that many are adjusting to the possibility of unexpected layoffs. With respect to retirement and investment planning, companies are shifting responsibility for retirement savings from traditional plans to 401(k)s, and I think the 7-percentage point rise is a good sign. It shows the population has a higher level of interest, which should lead to increased knowledge." "The baby boomers have moved from the free-spending 1980s to the asset-accumulating 1990s. They're aging." "This big jump occurred as people recognized the high cost of long-term care and other needs of the elderly." "This is interesting. Older workers may find it necessary to continue working. The boomers haven't been that great at saving and Social Security is becoming weaker; working may be essential to their financial well-being. Also, employers may realize that workers in their 60s and 70s are an underused resource and hire them in great numbers than previously." "Will employees be more responsible now that they have more choices? You have to hope that increased interest and concern convert into knowledge and action. Employee education and advising on 401 (k) options are two of the greatest opportunities for CPAs to provide value-added services." "Since all professionals are lumped together, I think the reduced reliance on professionals may show a distrust of commission-based advisers. Opportunities exist for independent, objective advisers who are not out to sell products. I think people turn to friends and relatives because they're just overwhelmed with information. An objective, qualified CPA can be of great help here." "This is confusing. They expect to have money but fear they won't. CPAs should help clients focus on managing the long-term risk of not having enough money, and prevent clients from focusing on what the markets are doing today. The goal is not how much you make today; it's having enough at the end of the game."
COPYRIGHT 1997 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:financial planning
Publication:Journal of Accountancy
Date:Jul 1, 1997
Previous Article:FASB to address pooling of interests.
Next Article:Public hearing on SSARS no. 1.

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