In the meantime, the S & P 500 companies are still doing 40-50 percent of their business offshore. These US companies doing business offshore are reinvesting much of  their profits outside of the US to target the global customers which represent over 90 percent of the world’s buyers outside of the USA.

The point of this article is that the government should not get to excited about a one-time mass influx  of capital gains  and income taxes for 2012. These temporary flows of tax payments are because people are trying to avoid taxes and not  necessarily because the domestic economy is doing better.

And don’t forget, every 5-6 years, retirees and now baby boomers are “GOING TO CASH” particularly when the stock market is reaching new highs.  Not only is it a strategy, but licensed professionals are required to advise retirees about their time horizon and suitability as they get older. This means that retirees with savings  must sell some stocks or capital assets to generate income.  Moreover, the global investor follows value too and will move out of the USA when things get into technical bubble range for the DOW and S&P.

In the end, there are many US companies citizens that are still carrying forward major losses over the last 3 years along  with many working families that are under water with their house value.

In closing, the only way to solve the fiscal problems would be to use the 4FP “Four Fold Path”.   1) Grow the Economy and Tax Payments 2) Create a Fair Tax System which Incentivizes Productivity 3) Reduce Spending, Corruption and Waste 4) Augment Global Investment into Your Country Though a Fair Regulatory and Tax System.

In the end, keep a keen eye out for big shots at Goldman Sachs or other banks to start putting their clients into some cash if the Dow hits 15500. Even Time Magazine says, “Don’t Fight The Fed but Be Afraid”.

With all of the being said, I may recommend a few companies related to taxes, tax strategy,  and credit.  Intuit (NASDAQ:INTU), Paychex (NASDAQ:PAYX), Equifax (NYSE:EFX)

Lawyer  and Counselor  George Mentz, JD, MBA, CILS, CWM  is a world recognized management consulting commentator and award winning professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com or www.managementconsultant.us  *No counseling, tax investment or legal advice provided herein.  Please consult with a licensed professional in your jurisdiction before making any important career, financial or legal decision.  All rights reserved by George Mentz, Esq.

1) What do you expect in terms of overall job growth for the occupation?

A personal financial advisor or planner usually operates on his or her own or in a small firm or as a licensed advisor within a registered firm, generally with a client base whose assets do not exceed $1 million. “The [personal financial advisor] position represents one of the most rapidly expanding and least well-known segments in financial planning.”

The most recent Bureau of Labor Statistics reports project growth in the area of personal financial advisors by 30 percent over the 2008–2018 period. This figure is represents much faster growth percentages than the average for all occupations.

CNN Money Reports, “demand for personal financial advisors is projected to grow… 41% between 2006 and 2016.”

Careerbuilder.com published a list of 10 promising jobs for the class of 2009. The top 10 list included personal financial advisors. The list included data provided the National Association of Colleges and Employers Job Outlook 2009 survey.

However, these figures may actually be an underrepresentation of the real growth of the role of the personal financial advisor. Many accountants and attorneys are expanding their practice to include more financial management services.

Lastly, females currently comprise only a quarter of all Certified or Qualified Financial Planners and Certified Chartered Wealth Managers ; “[e]ncouragingly, however, their representation in the industry appears to be growing.”

2) What will be the primary factors causing job growth/decline?

“Education, health, and retirement costs are increasing. Lifespans are lengthening. The pension and Social Security safety nets are fraying.”

The role of the personal financial advisor “has exploded as baby boomers reach retirement age and seek advice on making their nest eggs last.” In addition, “younger folks are seeking guidance on managing savings and retirement accounts in lieu of a company pension plan.” However, new products and services in the financial world such as ETFs, may eliminate the need for stock picking or financial advisor or planning advice but increase the need for other advice on other complex wealth management issues.

“’People know they need expert help and they are turning to their wealth managers,’ says G. Mentz, General Counsel of the AAFM and the  International Board of Standards .” This is the first time in history that the average person will take responsibility for their investing and finding qualified and certified wealth management professionals.

Moreover, in a 2008 report it was indicated that wealth management firms will sharply increase hiring from 2010 to 2020 because of the impending retirement. In addition, over the coming decade, wealth management firms will have substantially more client opportunities because the pool of high-net-worth individuals (HNWI) globally.

According to another study only 50% of HNWI assets are currently professionally managed. An unprecedented amount of retiring boomers who had not previously used a wealth manager now require one to transition their asset portfolios to income ones, plan succession, and balance potential medical care needs. Wealth management firms therefore have a pool of approximately five million (and expanding) new client opportunities.

The study reports that the new generation of HNWIs is predominantly 70% self-generated wealth; through entrepreneurship or executive compensation. These HNWIs consider it normal business practice to seek outside expertise and are more likely to leverage wealth managers.

Economy

On the other hand, the question arises concerning the current financial environment with regards to financial planning. In other words, what negative effect has the financial crisis had on the financial planning market? Some commentators believe the impact is great.

In addition, increased regulation regarding personal financial advisory services has grown over the last 5 years. If this pattern continues advisors may decide to no longer participate in a market where the cost of compliance is too high. This will also prevent new advisors from entering the field.

Market Entry and Lifestyle

Nevertheless, the generally low barriers of entry into the industry make the position attractive for those seeking employment directly from school or through career transition for a variety of reasons including unemployment.  One report notes that about 30% of personal financial advisors are self-employed, most often operating small firms in urban areas. Moreover, the flexibility in terms of lifestyle that the personal financial advisor enjoys is preferable to some over the traditional office employment. Because most personal financial advisors are not traditional employees, work and lifestyle flexibility may attract a new generation of workers. “Although successful [personal financial advisors] can live quite comfortably, their compensation has typically been below the level of top jobs on Wall Street. As financial industry compensation models reset themselves, however, the relative returns enjoyed by [these advisors] may look more attractive.”

Top Advisor Growth

The San Diego Business  Journal reported in 2009 that wealth management salaries held steady in the midst of the crisis, ranging from $150,000 to $ 400,000. What’s more, “bidding wars among firms for top advisors are not uncommon” and packages will include “bonuses equaling two or three times the payouts from just a few years ago”.  Reuters reports “that brokerage firms offer sometimes triple an adviser’s fees and commission over the previous year, whereas private bankers receive one to two times their previous year’s salary and bonus to move.”

Summary

In sum, there is little question that the average age of the American society continues to grow higher and that individuals are living longer. The baby boom generation is starting to retire. The role of the personal financial advisor will continue to be an integral part in the wealth management process of the increasing number of retirees.  In addition, the general concerns about the sustainability of the Social Security system provides many personal financial advisors additional retirement planning options for those still in the work force.  Moreover, the traditional retirement plans that many companies commonly offered are being replaced with newer and more flexible retirement options. More control is being given to the individual investor to allocate retirement assets and the personal financial advisor will likely continue to play a key role in this process. Personal investments are expected to increase and more people will likely seek the help of experts.  Most advisors will now be required to have a college education and many will work for  Banks, Brokerage Firms, Insurance Companies and Private Registered Investment Advisory Firm.

3) Do you expect different growth rates within different industries (for the financial occupations, the major industry comparisons I’m looking at are commercial banking, investment banking, and private equity/hedge funds. For management analysts, it is private sector versus public sector consulting.)

As presented above, it was reported by 2016 jobs for personal financial advisors will have grown 41% over 2006 levels, “while financial analyst jobs—think AFA (Accredited Financial Analyst) —will have grown 34%.” The financial analysts job market is thus in slightly slower growth pattern than personal financial advisors.

As one commentator notes, there has traditionally “been very little overlap between the analyst and financial planning communities.” This conclusion is based on the “number of financial analyst charterholders who are also financial planner certificants”. It thus “appears that relatively few investment professionals have pursued personal financial planning.” Further, most financial credentialing associations do not require CHEA accredited program exams; thus, there has been a new move toward higher standards of an accredited business school program exams and education from ACBSP or AACSB accredited programs that lead to degree and certification eligibility.

Moreover, “a recent profile of QFP™ and (CFP™) certificants  shows that a mere 2.4% of the 58,945 Financial Planners hold the AFA Accredited Financial Analyst ® , or Financial Analyst designation.” In total, “only eighty Qualified Financial Planners belong to the New York Society of Security Analysts, which has over 11,500 members; and a mere dozen Accredited Financial Analysts belong to the Financial Planning Association of New York, which has an active membership of over 680.” In contrast, most people who hold the MFP or CWM certification have completed financial planning graduate exams and education from an accredited program.

According to the 2010 survey of employers of the American Academy of Financial Management ®, because of the impending regulatory compliance changes resulting from the financial crisis, many institutional employers are mandating that  financial advisors hold both a higher level of accredited graduate education along with a professional designation aligned to the specific job classification,” stated its Chairperson George Mentz. JD MBA  He added, “A bachelors level degree with certificate no longer assures a foothold for a wealth management or financial career”. Going forward, recruiters are demanding graduate education from an ABA, ACBSP or AACSB accredited program and certification because it represents the top 10% of all business and legal educational institutions worldwide. However, the higher designations such as the AAFM®’s CWM ® or the AFA ®  Financial Analyst certification requires accredited graduate education in extra areas beyond investments, finance or planning including economics, trusts, estates, global tax, macro forces, private banking, wealth strategy, money and banking, hedge funds, global risk management, and other.

4) What do you expect regarding the competition for these jobs, or the ratio between job applicants and job openings?

As with a great many personal financial advisors there is not necessarily a traditional application process per se. A great many of personal financial advisors work independently. As the statistics above indicate around 30% of personal financial advisors are self-employed. That is not to say there isn’t institutional opportunity for those seeking such a position. Nevertheless, the non-traditional employment model allows for many seeking to provide services the ability to earn revenues. However, as the next section briefly addresses, if the market becomes saturated with high quality and educated individuals those with more experience, training and education will surface as top earners.

5) Have there been any changes recently to educational requirements for these occupations?

Traditionally those with a bachelor’s degree were considered good candidates for personal financial planning. However, that landscape is changing. It is now commonplace for personal financial planners to have advanced degrees and designations. For example the Financial Planner designation was offered in 1985 and has since become a common mark associated with financial planning. Generally the certification requires no accredited college degree but an examination which includes required training coursework as well. The process can be completed usually about 18-24 months. If competition in the industry continues to grow, i.e., increased number of personal financial advisors is expected to increase by 30% over the 2008-18 period, those providing the most value will realize the highest gains. As noted above education and training are important considerations with regards to clients deciding which personal financial advisor to work with. Thus those personal financial advisors with advanced education degrees and designations may find additional opportunity over those with a bachelor’s degree or even less education.  Additionally, persons who graduate with a “Double Accredited” degree in financial planning may apply for the MFP™  Master Financial Planner Qualification.

MBAs too are finding their way into the financial planning landscape among others such as attorneys and accountants who are also providing wealth management services. This increased competition from higher level service providers creates the need for others to keep pace. Other graduate organizations such as American Academy of Financial Management ® offer various designations for personal financial advisors. These include the, CWM ® Chartered Wealth Manager, CAM ™ Chartered/Certified Asset Manager –and MFP ™ Master Financial Planner. Lastly, graduate education as a path to professional certifications and professional designations are currently being offered through higher level education institutions. For example the LL.M. Masters of Law Program at Thomas Jefferson School of Law, an American Bar Association approved school in San Diego offers courses which are accredited by the AAFM® as a qualified assessment and education for certification eligibility. In addition, there is a concentration in personal wealth management through the law school which is the first in the US to be disclosed and reviewed by the ABA American Bar Association.

1. . Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” 2/24/2011. http://post.nyssa.org/nyssa-news/2011/02/personal-finance-planning-making-the-transition.html. Last Accessed 5/25/2011.
2. Bureau of Labor Statistics. United States Department of Labor. “Occupational Outlook Handbook, 2010-11 Edition-Personal Financial Advisors”. Last Modified Date: December 17, 2009. http://www.bls.gov/oco/ocos302.htm. Last Accessed 5/24/2011.
3. CNN Money. “Most Job Growth-Personal Financial Advisor”. 2009. http://money.cnn.com/galleries/2009/moneymag/0910/gallery.bestjobs_jobgrowth.moneymag/3.html. Last Accessed 5/24/2011; See also Bureau of Labor Statistics, United States Department of Labor, 2007 (last updated December 18, 2007). “Financial Analysts and Personal Financial Advisors. Occupational Outlook Handbook, 2008-09 Edition.”
4. Lindsey Gerdes. “Personal Financial Advisor Among The 10 Most Promising Jobs For Recent Grads?” Bloomberg Business. Posted: April 13, 2009. http://www.businessweek.com/managing/blogs/first_jobs/archives/2009/04/personal_financ.html. Last Accessed 2/24/2010.
5. Dan Olsen. “Personal Financial Planning: Making the Transition”. Supra at note 1. And AAFM Facts: www.AAFM.us/about.html
6. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1.
7. CNN Money. “Most Job Growth-Personal Financial Advisor”. Supra at note 3.
8. CNN Money. “Most Job Growth-Personal Financial Advisor”. Supra at note 3.
9. D. Armstrong. Why ETF Investors Need to Do their Homework http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2011/02/11/why-etf-investors-need-to-do-their-homework
10. CNN Money. “Most Job Growth-Personal Financial Advisor”. Supra at note 3.
11. Louise Tutelian. “Dream Jobs: Six-Figure Salaries and a Bright Future- Financial Advisor”. CBS Moneywatch.com. 2/23/2011. http://moneywatch.bnet.com/career-advice/article/six-figure-jobs-financial-advisor/6197979/. Last Accessed 5/24/2011.
12. Louise Tutelian. “Dream Jobs: Six-Figure Salaries and a Bright Future- Financial Advisor”. Supra at note 10.
13. See Advisorfyi.com-Summit Business Media/The National Underwriter Company. “Wealth Management Employment in the Coming Decade.” Posted October 11th, 2010. http://www.advisorfyi.com/2010/10/wealth-management-employment-in-the-coming-decade/. Last Accessed 5/25/2011. Citing Cap Gemini.
14. Advisorfyi.com-Summit Business Media/The National Underwriter Company. “Wealth Management Employment in the Coming Decade.” Supra at note 12
15. See Advisorfyi.com-Summit Business Media/The National Underwriter Company. “Wealth Management Employment in the Coming Decade. Supra at note 12, citing Oliver Wyman.
16. See Advisorfyi.com-Summit Business Media/The National Underwriter Company. Wealth Management Employment in the Coming Decade. Supra at note 12, citing Oliver Wyman.
17. “I find [the financial advisor industry growth data is] a bit confusing because from what I’ve been hearing, these are among the least promising positions (and also hardest to come by) right now because of the turmoil in the financial services industry.” Lindsey Gerdes. “Personal Financial Advisor Among The 10 Most Promising Jobs For Recent Grads?” Supra at note 4.
18. E.G., “The Dodd-Frank Wall Street Reform and Consumer Protection Act mandates an SEC study of its investment advisor examinations and whether delegation of advisor regulation to an SRO would improve examinations.” Advisorfyi.com-Summit Business Media/The National Underwriter Company. “FINRA Positions Itself to Oversee Advisers”. Posted November 24th, 2010. http://www.advisorfyi.com/2010/11/finra-positions-itself-to-oversee-advisers/. Last Accessed 5/25/2011.
19. Dan Olsen. “Personal Financial Planning: Making the Transition”. Supra at note 1, citing. Bureau of Labor Statistics 2007, supra at note 3.
20. Dan Olsen. “Personal Financial Planning: Making the Transition”. Supra at note 1.
21. Advisorfyi.com-Summit Business Media/The National Underwriter Company. Wealth Management Employment in the Coming Decade. Supra at note 12,
22. Helen Kearney. Reuters. “Private banks battling for advisers to super-rich”. 9/17/2010. http://www.reuters.com/article/2010/09/17/idUKN1713016720100917?pageNumber=2. Last Accessed 5/25/2011.
23. Helen Kearney. Reuters. “Private banks battling for advisers to super-rich”. Supra at note 21.
24. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1, citing 2007 Bureau of Labor Statistics supra at note 3.
25. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1.
26. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1.
27. ACBSP Accreditation Agency News http://www.acbsp.org/download.php?sid=10
28. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1.
29. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1.
30. Accredited Programs for Certification: http://aafm.us/accreditedprograms.html
31. Dan Olsen. “Personal Financial Planning: Making the Transition”. The Finance Professionals Post. New York Society of Security Analysts.” Supra at note 1.
32. AAFM ® CWM Curriculum Facts: www.aafm.us or http://www.financialcertified.com/certified_chartered_wealth_manager_cwm_wiki.html
33. See generally Louise Tutelian. “Dream Jobs: Six-Figure Salaries and a Bright Future- Financial Advisor”. CBS Moneywatch.com. Supra at note 10.
34. See Wall Street Globe References . http://www.wallstreetglobe.com/news.html
35. See Thomas Jefferson School of Law, LL.M. Program. http://llmprogram.org/curriculum.html.

• 

  Healthcare Reform Facts

  Starting at:                                                                         $125.00

  View Details

  Organized in a convenient Q&A format to speed you to the information you need, Healthcare Reform Facts is the single source for answers to questions arising out of the Patient Protection and Affordable Care Act (PPACA).

  Learn More

• 

  2013 Tax Facts on Insurance & Employee Benefits/2013 Tax Facts on Investments – Book Combo

  $210.00

  View Details

  Obtain both editions of 2013 Tax Facts with the convenience of a single order and save $10!  The 2013 editions are filled with updated, authoritative, and clear answers to critical tax questions covering insurance, employee benefits, and investments. Pertinent planning points are provided throughout.

  Learn More

• 

  The Process of Financial Planning: Developing a Financial Plan, 2nd Edition

  Starting at:                                                                         $95.00

  View Details

  The Process of Financial Planning: Developing a Financial Plan, Second Edition, builds on four cornerstones: the profession, fundamental tools, the systematic financial planning process, and the plan as a product of financial planning. This edition of the text integrates these cornerstones into a sound educational approach that has been refined to meet the needs of students learning both the process of financial planning and the tasks associated with writing and communicating a plan to clients.

  Learn More

• 

  2013 Tax Facts on Insurance & Employee Benefits

  Starting at:                                                                         $110.00

  View Details

  Authoritative and easy-to-use, 2013 Tax Facts on Insurance & Employee Benefits shows you how the tax law and regulations are relevant to your insurance, employee benefits, and financial planning practices. Often complex tax law and regulations are explained in clear, understandable language.  Pertinent planning points are provided throughout.

  Learn More

• 

  2013 Tax Facts on Investments

  Starting at:                                                                         $110.00

  View Details

  2013 Tax Facts on Investments provides clear, concise answers to often complex tax questions concerning investments. Pertinent planning points are provided throughout.

  Learn More

• 

  2013 ERISA Facts

  Starting at:                                                                         $185.00

  View Details

  Stay up-todate with ERISA changes and easily resolve hundreds of ERISA-related issues with 2013 ERISA Facts.

  Organized in a logical Q&A format – with hundreds of questions asked and answered – 2013 ERISA Facts is a practical, highly focused resource supplying practical guidance on every key area of ERISA.

  Learn More

• 

  2013 Social Security & Medicare Facts

  Starting at:                                                                         $110.00

  View Details

  The constantly changing regulatory and legislative environment, coupled with millions of Baby Boomers reaching retirement age, means that practitioners must have up-to-date information at their fingertips. 2013 Social Security & Medicare Facts will enable you to give your clients the best possible Social Security and Medicare guidance.

  Learn More

• 

  The Tools & Techniques of Life Insurance Planning, 5th edition

  Starting at:                                                                         $145.00

  View Details

  The Tools & Techniques of Life Insurance Planning, 5th edition, is part of the popular Leimberg Library Series and delivers expert insight and the tools needed to utilize life insurance in the most effective ways.

  Learn More

• 

  The Tools & Techniques of Life Insurance Planning & Risk Management for Financial Planners

  $210.00

  View Details

  When partnered together, The Tools & Techniques of Life Insurance Planning, 5th edition, and Tools & Techniques of Risk Management for Financial Planners, 2nd edition, provide comprehensive coverage of risk management and insurance – from health, disability, and long-term care insurance to property & casualty insurance for individuals and businesses.

1. Experience – Make sure your advisor has a      track record of success.
2. Accredited      Education (Level 2) Preferred      – Make sure your advisor has an education from a program that is      accredited.  Also, if the advisor  has a degree or diploma from a Level 2 institution that has both regional  accreditation and business accreditation, that is the best. As your advisor if he or she has successfully completed all exams of a business degree from an ACBSP or AACSB accredited program.
3. Licenses – Are they licensed with the SEC  or FINRA and do they have a record of good standing.
4. Government Professional License – Are they a lawyer or CPA.  If so, check      with the state bar association or AICPA to make sure they have a solid  record.
5. Regulatory and      Product Knowledge      – Make sure your advisor has the ability to recommend a broad array of      solutions for your wealth preservation and growth.
6. Qualifications – See if your advisor is a      member of a prestigious body such as the  CWM ® Chartered Wealth Manager Institute.  Ask if they are board certified as      an:  Accredited Financial Analyst ® or  Chartered Wealth Manger ®.   Also,      if they have a law degree and license or CPA, then they may also be  competent to provide advice on tax law and estate planning.
7. Value and      Compensation -  How will your advisor earn income from you?  Make sure they get paid for their work,      but it may be best to make sure they are not double dipping.  Some advisors will charge a fee for      advice and then also invest you in a product that also has fees.    With the ease of use of ETF Exchange  Traded Funds, make sure your advisor is providing added value.
8. Wealth Team  - Does the wealth manager have a group or      team to help you in the areas of:  Investing, Wealth Preservation, Risk and Insurance, Trusts,  Legal,  Retirement and Tax. Ask if      they have names of people they have worked with successfully.
9. Customer   Regulations – Be      sure to let your advisor know what your objectives are. Make sure they  understand your 1) suitability, 2) risk tolerance, and 3) time  horizon.  Ask the wealth      manager  to explain each of these to  you in detail.
10. Policy Statement – Make sure your wealth manager  provides you with an IPS Investment Policy Statement that outlines what  they will do for you and the limitations involved.

*No investment, legal or tax advice is intended to be given herein. Please see a licensed professional before making any important decision.

Standards for Professional Designations and Board Certifications in the United States

Certification Standards  Guide

Professional Designations in the United States and Internationally have a long history.  Legal cases such as the IBANEZ decision of the Supreme Court imply  that bone fide “board certifications” or “professional designation”  criteria includes:  1) Accredited Education, 2) Assessment, 3) Degree  4) Continuing Education and 5) Ethics/Professionalism 6) Experience.

Types of Certifications  and Accreditation Standards – Level II is the Highest

1. Certification      requiring Level 2 Accredited education and exams.       This is the highest form of educational requirements.  This education is generally preferred      for CPA licensure  and for      certifications from organizations such as the AAFM American Academy of      Financial Management.  Level 2 means  that both the college or university is accredited AND the business school      is also separately accredited by a government recognized body.  The ACBSP, AACSB or EQUIS are examples  of level 2 accreditation while education      from an ABA American Bar Association education would also be level 2.
2. Charters or Certification      requiring a college diploma and exams.  This is a  high standard but does not require Level 2 Accreditation Degree.  Thus, the degree may be from a good      school offshore but it may not be accredited by a recognized  organization.  Certifications in      this category focus on giving only exams as a path to achieving a “non      government recognized professional designation” or becoming chartered  with a credential as a financial analyst.
3. Credential requiring      only exam.  This standard is strong but does not  require a degree historically but rather a test only.  Examples are a project management      designation or a typical financial planner designation or credential.

• Note:  A degree, MBA, MSc, or credential based on a Level 2 education is more widely accepted globally than qualifications or degrees that do not maintain  ”Level 2″ Status.  Further, course credits are more easily transferrable with reciprocity from Level 2 business schools and institutions that are double accredited.

*Most State and Sovereign Governments worldwide prefer Level II Accreditation for the purposes of business school standards, top MBA programs, or becoming a CPA or Chartered Accountant. Further, Government recognized Bar Accredited Education is required for a legal education and  licenses.  Level 2 accreditation – the business school. In a Level 2 accreditation, the college or university and the business school are separately accredited, but the accounting program is not separately accredited. This level applies to a business school that is accredited by an organization recognized by the Council of Higher Education Accreditation (CHEA) as a specialized or professional accrediting organization, such as the AACSB or the Association of Collegiate Business Schools and Programs (ACBSP).

The IRS has 10 important tips for you about setting aside money for your retirement in an Individual Retirement Arrangement.

1. You must be under age 70 1/2 at the end of the tax year in order to contribute to a traditional IRA.
2. You must have taxable compensation to contribute to an IRA. This includes income from wages, salaries, tips, commissions and bonuses. It also includes net income from self-employment. If you file a joint return, generally only one spouse needs to have taxable compensation.
3. You can contribute to your traditional IRA at any time during the year. You must make all contributions by the due date for filing your tax return. This due date does not include extensions. For most people this means you must contribute for 2012 by April 15, 2013. If you contribute between Jan. 1 and April 15, you should contact your IRA plan sponsor to make sure they apply it to the right year.
4. For 2012, the most you can contribute to your IRA is the smaller of either your taxable compensation for the year or $5,000. If you were 50 or older at the end of 2012 the maximum amount increases to $6,000.
5. Generally, you will not pay income tax on the funds in your traditional IRA until you begin taking distributions from it.
6. You may be able to deduct some or all of your contributions to your traditional IRA.
7. Use the worksheets in the instructions for either Form 1040A or Form 1040 to figure the amount of your contributions that you can deduct.
8. You may also qualify for the Savers Credit, formally known as the Retirement Savings Contributions Credit. The credit can reduce your taxes up to $1,000 (up to $2,000 if filing jointly). Use Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the Saver’s Credit.
9. You must file either Form 1040A or Form 1040 to deduct your IRA contribution or to claim the Saver’s Credit.
10. See Publication 590, Individual Retirement Arrangements, for more about IRA contributions.

*As an aside, you should talk to your CPA or licensed advisor about how to maximize your contribution to your IRA or 401k or other qualified plan.  You do this to save money, defer taxes on the growth of your retirements, and to lower your taxable income. If you contribute between Jan. 1 and April 15, you should contact your IRA plan sponsor to make sure they apply it to the right year.

You can get Form 8880 and Publication 590 at IRS.gov or order by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Form 8880, Credit for Qualified Retirement Savings Contributions
• Publication 590, Individual Retirement Arrangements
• Publication 4703, Retirement Savings Contributions Credit

Source US Government – http://www.irs.gov/uac/Newsroom/Top-Ten-Tips-on-Making-IRA-Contributions

Lawyer  and Counselor  George Mentz, JD, MBA, CILS, CWM  is a world recognized wealth management commentator and award winning professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com or www.managementconsultant.us  *No counseling, tax investment or legal advice provided herein.  Please consult with a licensed professional in your jurisdiction before making any important career, financial or legal decision.  All rights reserved by George Mentz, Esq.

1. Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth by T. Harv Eker which is a “Good book for those who want to develop abundance. Practical Steps”
2. 50 Self-Help Classics: 50 Inspirational Books to Transform Your Life from Timeless Sages to Contemporary Gurus by Tom Butler-Bowdon -  “Nice summary of best self help authors with tidbits from each author”
3. Think and Grow Rich by Napoleon Hill -  “Super Book – Best of Self Help”
4. Spiritual Wealth Management : The Abundance Bible & Prosperity Manifesto by George S Mentz JD MBA CWM “The wealth secrets to success.”
5. The Seven Spiritual Laws of Success: A Pocketbook Guide to Fulfilling Your Dreams (One Hour of Wisdom) by Deepak Chopra “Classic books on the primary laws to success with a Eastern twist.”
6. Wishes Fulfilled: Mastering the Art of Manifesting  – Dr. Wayne W. Dyer Dr.
7. The Dynamic Laws of Prosperity – Catherine Ponder
8. The Courage to be Rich: Creating a Life of Material and Spiritual Abundance by Suze Orman “Suze speaks to us all with your down to earth wealth training.”
9. The Way to Wealth by Brian Tracy Brian Tracy speaks the language of prosperity, success, and effective living. He is a superstar and will help you grow.”
10. The Lies About Money by Ric Edelman  – “Ric has been around a long time.  Great speaker and writer on Financial Planning”

Lawyer  and Counselor  George Mentz, JD, MBA, CILS, CWM  is a world recognized wealth management commentator and award winning professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com or www.managementconsultant.us  *No counseling, tax investment or legal advice provided herein.  Please consult with a licensed professional in your jurisdiction before making any important career, financial or legal decision. Mentz is the founder of the American Academy of Financial Management and the Management Academy which has provided professional development education to thousands of people worldwide.  Mentz is the author of SWM Spiritual Wealth Management which is included in the list above.  All rights reserved by George Mentz, Esq.

Protecting taxpayers and their tax refunds from identity theft is a top priority for the IRS.   This year the IRS expanded its efforts to better protect taxpayers and help victims dealing with this difficult issue.

When your personal information is lost or stolen, it can lead to identity theft. Identity thieves sometimes use your personal information to file a tax return to claim a tax refund. Then, when you file your own tax return, the IRS will not accept it and will notify you that a return was already filed using your name and social security number. Often, learning that your return was not accepted or receiving a contact from the IRS about a problem with your tax return is the first time you become aware that you’re a victim of identity theft.

How to avoid becoming an identity theft victim.

• Guard your personal information. Identity thieves can get your personal information in many ways. This includes stealing your wallet or purse, posing as someone who needs information about you, looking through your trash, or stealing information you provide to an unsecured website or in an unencrypted e-mail.
• Watch out for IRS impersonators. Be aware that the IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information or notify people of an audit, refund or investigation. Scammers may also use phone calls, faxes, websites or even in-person contacts. If you’re suspicious that it’s not really the IRS contacting you, don’t respond. Visit our Report Phishing web page to see what to do.
• Protect information on your computer. While preparing your tax return, protect it with a strong password. Once you e-file the return, take it off your hard drive and store it on a CD or flash drive in a safe place, like a lock box or safe. If you use a tax preparer, ask how he or she will protect your information.

How to know if you are, or might be, a victim of identity theft.

Your identity may have been stolen if the IRS notifies you that:

• You filed more than one tax return or someone has already filed using your information;
  
• You owe taxes for a year when you were not legally required to file and did not file; or
  
• You were paid wages from an employer where you did not work.

Respond quickly using the contact information in the letter you received from the IRS so that we can begin to correct and secure your tax account.

If you think you may be at risk for identity theft due to a lost or stolen purse or wallet, questionable credit card activity, an unexpected bad credit report or any other way, contact the IRS Identity Protection Specialized Unit toll-free at 1-800-908-4490. The IRS will then take steps to secure your tax account. The Federal Trade Commission also has helpful information about reporting identity theft.

If you have information about the identity thief who used or tried to use your information, file a complaint with the Internet Crime Complaint Center.

For more information – including how to report identity theft, phishing and related fraudulent activity – visit the Identity Protection home page on IRS.gov and click on the Identity Theft link at the bottom of the page.

IRS Works to Protect Taxpayer Refunds, Detect and Resolve Identity Theft Cases

The IRS takes identity theft-related tax fraud very seriously and realizes that identity theft is a frustrating process for victims. By late 2012, the IRS assigned more than 3,000 employees — more than double from 2011 — to work on identity theft-related issues.

The IRS continues to enhance its screening process to stop fraudulent returns. During 2012, the IRS protected $20 billion of fraudulent refunds, including those related to identity theft, compared with $14 billion in 2011.

The IRS recently announced that a year-long nationwide focus on tax refund fraud and identity theft has resulted in more than 100 arrests in 32 states and Puerto Rico. In January 2013 alone, the IRS targeted 389 identity theft suspects resulting in 734 enforcement actions. To learn more, see IRS Intensifies National Crackdown on Identity Theft on IRS.gov.

In sum, protect your information, computers and files. Back up your files, and print out a spare copy of your return to keep in in a safe place, and by all means, protect your social security numbers and your family members social security numbers.

Additional IRS Resources:

• Identity Protection Tips
• FS-2013-2, IRS Combats Identity Theft and Refund Fraud on Many Fronts
• FS-2013-3, Tips for Taxpayers, Victims about Identity Theft and Tax Returns
• FS-2012-8, Taxpayer Guide to Identity Theft

IRS YouTube Videos:

• Protect Yourself from Identity Theft – English | Spanish | ASL
• Are You a Victim of Identity Theft? – English | Spanish | ASL

IRS Podcasts:

• Protect Yourself from Identity Theft – English | Spanish
• Are You a Victim of Identity Theft? – English | Spanish

Report from the IRS Special Edition Tax Tip 2013-05, February 20, 2013

About the Editor and Author:  Dr. George Mentz  is a world recognized management consultant and award winning professor who has authored several revolutionary books.  Prof. Mentz, an international lawyer, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies.   Mentz can be contacted for speaking engagements at www.gmentz.com or www.managementconsultant.us  or www.selfhelpbook.org

*No tax, insurance,  investment or legal advice provided herein.  Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.

CWM ®  Chartered Certified Wealth Manager ® – An AAFM ® Owned and Issued Certification awarded from the USA United States of America.  Why Global Standards are Important.

The CWM  ® Chartered Certified Wealth Manager  ®  professional certification  awarded from the AAFM ®  American Academy of Financial Management  ® is the first graduate wealth management Charter & Board certification in the world – as featured in the FINRA, NASD,  Investopedia, Forbes,  China Daily, Financial Times, Black Enterprise, Wall Street Journal,  and Money Manager[1][2] that was created and founded by the AAFM American Academy of Financial Management [3][4]. The internationally trademarked CWM ® Chartered Certified Wealth Manager AAFM ®  Certification [5] and credential is only available for wealth managers with an accredited masters degree, law degree, CPA, PhD or specialized executive training from an ABA accredited law school [6] or other approved program in Asia, Europe, India, Latin America or Africa. In 2004, Robert Frank of the Wall Street Journal published an expose of the top Wealth Management educational programs and certifications including the AAFM, Wharton School of Business and New York University.

The CWM Certified ( Chartered Wealth Manager ) [7] designation and post-graduate qualification is exclusively issued and conferred by the USA Board of Standards American Academy of Financial Management  ® over the last decade (AAFM) [8][9] The CWM wealth management certification & designation is similar to financial planning certification but is a graduate certification and professional development program in high net worth consulting which has always required a government recognized education and degree.[10] The CWM  Chartered Certified Wealth Manager ® Law School Curriculum and syllabus has been accepted for use with ABA Accredited Law School Programs.[11] Wealth Management is a profession and career that many bankers and investment professionals are entering.[12] Like any accredited law school graduate courses, the AAFM CWM certification courses[13] will count toward a post graduate degree such as a LLM or JSM, will count for continuing education for CPA and Law Licensing, and may count towards the CPA exam eligibility.

The CWM Chartered Wealth Manager Board Certification [14] from AAFM USA requires knowledge in 12 key areas:[15] and is referenced in the Global Designation Directory and on the FINRA US Government Regulatory Website [16][17]  The primary required skill sets of a CWM would include: 1. Estate Planning and Trusts 2. Asset Management 3. Portfolio Management 4. International Taxation 5. Retirement Law 6. Economics 7. Investments 8. Money and Banking 9. High Net Worth Consulting 10. Relationship Management, Compliance, and Ethics 11. Business Entities & Organizations 12. Risk Management and Insurance

Educational institutes and training organizations must petition to the AAFM www.AAFM.us to become an accredited provider of the CWM Chartered Wealth Manager program.

Governmental Citations &  Book References

1. ^ ” Wall Street Journal – Is Your Wealth Manager Certifiable? features AAFM CWM Wealth Management Certification “
2. ^ “CWM Featured in The Money Manager
3. ^ AAFM Investopedia Dictionary Article
4. ^ “Investopedia CWM Article”
5. ^ “AAFM US Government Trademark Reference”
6. ^ “Post Graduate CWM Law School Certification Program”
7. ^ “RIA Compliance Solution book”
8. ^ AAFM CWM in Investopedia Dictionary
9. ^ “US Government Trademark Reference for CWM “
10. ^ “The ElderLaw Portfolio Series, Volume 1‎ – Page 25-16Harry S. Margolis”
11. ^ ABA Accredited TJSL LLM Graduate Program in Finance and Taxation offering CWM from AAFM
12. ^ “AAFM CWM in the Book Career opportunities in banking, finance, and insurance By Thomas P. Fitch Pg. 251″
13. ^ “AAFM Law School Certification”
14. ^ “Demystifying Wall Street”
15. ^ “AAFM US Board and Certifying Requirements”
16. ^ “Directory of Global Professional Accounting and Business Certifications By Lal Balkaran”
17. ^ “FINRA Governmental Regulatory Website Formerly NASD”

AAFM American Academy of Financial Management  ® and CWM ® External links

• AAFM US Board of Standards
• Global Professional Certifying Board
• USA Accredited Law School Program Online for the AAFM CWM
• China www.AAFMChina.org
• Arabia www.AAFMGCC.com
• India www.AAFMIndia.com
• Latin America www.AAFMLA.com
• Singapore www.AAFMAsia.com

Over 800 Accredited Graduate Programs which qualifies you to apply for CWM Certification ™ .  You must have 3 years of wealth management experience on top of having the graduate degree or courses.

1. Masters in Finance, Wealth Management, Tax or Economics from an ACBSP Accredited Double Business School.
2. Masters in Finance, Wealth Management, Tax/Accounting or Economics from an AACSB Accredited Double Business School.
3. Masters with focus on Finance, Wealth Management, Tax or Economics from an ABA Accredited Law School.
4. Masters in Finance, Wealth Management, Tax or Economics from an EFMD EQUIS Accredited Double Business School.
5. Masters Degree in Finance from CUFE Beijing Business School
6. MBA or MSC from Shanghai Graduate Program in Finance
7. Masters in Wealth Management from the Swiss Banking School
8. JSM or LLM from the Diamond Law School Wealth Management Program

When working on your taxes this year, there are still many areas for deductions, exemptions, or itemized deductions.

Your children may help you qualify for valuable tax benefits, such as certain credits and deductions. If you are a parent, here are eight benefits you shouldn’t miss when filing taxes this year.

1. Dependents. In most cases, you can claim a child as a dependent even if your child was born anytime in 2012.   For more information, see IRS Publication 501, Exemptions, Standard Deduction and Filing Information.
2. Child Tax Credit. You may be able to claim the Child Tax Credit for each of your children that were under age 17 at the end of 2012. If you do not benefit from the full amount of the credit, you may be eligible for the Additional Child Tax Credit. For more information, see the instructions for Schedule 8812, Child Tax Credit, and Publication 972, Child Tax Credit.
3. Child and Dependent Care Credit. You may be able to claim this credit if you paid someone to care for your child or children under age 13, so that you could work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.
4. Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. If you have qualifying children, you may get up to $5,891 dollars extra back when you file a return and claim it. Use the EITC Assistant to find out if you qualify. See Publication 596, Earned Income Tax Credit.
5. Adoption Credit. You may be able to take a tax credit for certain expenses you incurred to adopt a child. For details about this credit, see the instructions for IRS Form 8839, Qualified Adoption Expenses.
6. Higher education credits. If you paid higher education costs for yourself or another student who is an immediate family member, you may qualify for either the American Opportunity Credit or the Lifetime Learning Credit. Both credits may reduce the amount of tax you owe. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000. See IRS Publication 970, Tax Benefits for Education.
7. Student loan interest. You may be able to deduct interest you paid on a qualified student loan, even if you do not itemize your deductions. For more information, see IRS Publication 970, Tax Benefits for Education.
8. Self-employed health insurance deduction – If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child. It applies to children under age 27 at the end of the year, even if not your dependent. See IRS.gov/aca for information on the Affordable Care Act.
9. 529 Plans – If you fund a 529 Educational plan for a child, it grows tax deferred and thus avoids annoying annual tax filings.  You can also check out Coverdell ESA or other educational plans. A Roth IRA can be used if the child has earnings.

Forms and publications on these topics are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• EITC Assistant
• Publication 596, Earned Income Tax Credit.
• Publication 501, Exemptions, Standard Deduction and Filing Information
• Schedule 8812, Child Tax Credit
• Publication 972, Child Tax Credit
• Publication 503, Child and Dependent Care Expenses
• Form 8839, Qualified Adoption Expenses
• Publication 970, Tax Benefits for Education
• Affordable Care Act Tax Provisions

IRS YouTube Videos:

• Earned Income Tax Credit – English | Spanish | ASL
• Education Tax Credits and Deductions – English | Spanish | ASL

IRS Podcasts:

• Earned Income Tax Credit – English | Spanish
• Education Tax Credits and Deductions – English | Spanish

IRS Tax Tip 2013-11, February 11, 2013

About the Editor:  Dr. George Mentz is a world recognized consultant and award winning professor who has authored several revolutionary books.  Prof. Mentz, an international lawyer, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies.   Mentz can be contacted for speaking engagements at www.gmentz.com  or www.managementconsultant.us  or www.selfhelpbook.org *No tax, insurance,  investment or legal advice provided herein.  Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.

Happy New Year and Welcome to 2013. On January 1, 2013, new legislation was retroactively passed the U.S. Senate, and then later in the House of Representatives. The American Taxpayer Relief Act of 2012 (ATRA) would permanently extend a number of major tax laws and temporarily extends many others. Here are the fundamentals.

Federal Tax rates

The top federal income tax rate on working families and small business will increase to 39.6% beginning in 2013 for individuals with income that exceeds $400,000 ($450,000 for married couples filing joint returns). For most other individuals, the ATRA Law permanently extends the lower income tax rates that have existed since President Bush put the tax relief for working families in place. That means most taxpayers will continue to pay tax according to the typical 6 tax brackets (10%, 15%, 25%, 28%, 33%, and 35%) that were used for 2012.

The new taxes implemented on dividends and capital gains were reversed at the last minute. The lower tax rates that applied to long-term capital gain and qualifying dividends have been extended for most individuals as well. If you’re in the 10% or 15% marginal income tax bracket, a special 0% rate generally applies. If the Congress had not acted, the dividend and capital gains tax rates on the poor would have doubled. If you are in the 25%, 28%, 33%, or 35% tax brackets, a 15% maximum rate will generally apply for capital gains. . Beginning in 2013, however, those who pay tax at the higher 39.6% federal income tax rate (i.e., individuals with income that exceeds $400,000, or married couples filing jointly with income that exceeds $450,000) will be subject to a maximum rate of 20% for long-term capital gain and qualifying dividends.

The ATRA American Taxpayer Relief Act permanently extends AMT Alternative Minimum Tax relief increasing the AMT exemption amounts for 2012, and providing that the exemption amounts will be indexed for inflation going forward. The Act also extends provisions allowing nonrefundable personal income tax credits to be used for offsetting AMT liability.

Wealth Phaseout s and Limits on Deductions and Exemptions
Over the years, itemized deductions personal exemptions were limited for higher-income individuals and families. For the last 2 years, the limits have not been operative.

The new laws provides that personal and dependency exemptions will be phased out for those families earning an amount over about 250 thousand dollars per year. Further, deductions will be limited. For both the personal and dependency exemptions phaseout and the itemized deduction limitation, the threshold is $250,000 for single families ($300,000 for married couples filing joint federal income tax returns).

Estate Taxation Relief
The ATRA Act makes the $5 million exemption amounts permanent for the estate tax, the gift tax, and the generation-skipping transfer tax–the same exemptions that were in effect for 2011 and 2012. The top tax rate, however, is expanded to 40% beginning in 2013.
The Act also permanently extends the “portability” provision in effect for 2011 and 2012 that allows the executor of a deceased individual’s estate to transfer any unused exemption amount to the individual’s surviving spouse.

Other Provisions and Temporary Rules

• Exclusion of qualified mortgage debt forgiveness from income provisions extended through 2013
• Section 179 expense limits extended through 2013
• “Marriage penalty” relief in the form of an increased standard deduction amount for married couples and expanded 15% federal income tax bracket
• Expanded tax credits relating to the dependent care tax credit, the adoption tax credit, and the child tax credit
• Rule changes and expansion of: Coverdell education savings accounts, employer-provided education assistance, and the student loan interest deduction
• Charitable IRA distributions (For age 70½ IRA holders- are able to exclude from income up to $100,000 in qualified distributions made to charitable organizations) extended through 2013
• Provisions relating to increased earned income tax credit amounts for people with 3 or more children are extended through 2017
• The $250 above-the-line tax deduction for educator classroom expenses.
• The option to deduct state and local sales tax in lieu of the itemized deductions for state and local income tax.
• The deduction for qualified higher education expenses are all extended through 2013

If you are seeking professional help, please consult with a CWM Chartered Wealth Manager or Accredited Financial Analyst and consult with a licensed professional before making any important decision.

About the Author: Dr. George Mentz is a world recognized consultant and award winning professor who has authored several revolutionary books. Prof. Mentz, an international lawyer, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com  or www.managementconsultant.us  or www.selfhelpbook.org   Mentz is the founder of the American Academy of Financial Management and the US Academy of Business and Financial Management http://aafm.us
*No tax, insurance, investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.