Donald Jay Korn

the move from a defined benefit world to a defined contribution world “is unlikely to reduce retirement preparedness.”

“The findings are eye-opening for financial advisors because investors are clearly saying they are worried about the economic situation,” said Joe Ready, director of Institutional Retirement and Trust at Wells Fargo.

Only 31% of women feel “extremely” or “very” secure about their current financial situation, according to a study by the State Farm Center for Women and Financial Services at The American College of Financial Services. This widespread sense of insecurity indicates broad opportunities for advisors who can make female clients more confident about their finances.

A Nationwide Financial survey found that 42% of advisors have clients who are asking about giving away all of their money to their children as a means of financial planning.

In January, the fabled 3.8% surtax on investment income becomes law. This surtax, included in health care legislation to bolster Medicare’s finances, is based on two key numbers. The IRS has just issued proposed regulations on one of those numbers: net investment income.

With 20% of wealthy investors under age 55 planning to change their primary advisor in the next 12 months, tech enhancements may be the difference between acquiring or losing clients.

“We always have an opinion,” said James Odorczuk. “That’s what clients want. You can’t just ‘set it and forget it.’ A lot of clients are unhappy with a passive investment style.”

Gen X, Y and Z investors may years from retirement but they already have multiple concerns about their future finances.

Investors looking out for the fabled fiscal cliff should be careful not to tumble down the “earnings cliff,” if corporate profits plunge.

With gas prices flat, the IRS has announced a 1-cent increase in standard mileage rates for the business use of a vehicle. Thus, that rate will be 56.5 cents per mile for business miles driven in 2013, up from 55.5 cents a miles this year.

“Our report confirms the hypothesis that investment advisors need to engage in technology to attract and retain clients in this market segment,” said Al Chiaradonna, senior vice president of SEI’s Global Wealth Services.

Investors will continue to pour money into funds, especially into target date funds and ETFs, according to a report on mutual funds from Tiburon Strategic Advisors.

The annual gift tax exclusion, which has been $13,000 since 2009, will be $14,000 in 2013, the IRS has announced.

After six months of negative cash flows, non-qualified annuities turned positive in the third quarter.

Most Medicare enrollees will pay 5% more for Part B in 2013. Considering that the Social Security cost-of-living adjustment for next year will be 1.7%, advisors can see that seniors’ medical costs are rising faster than the overall inflation.

“After years of recommending tax deferral, I’m suggesting accelerating tax payments,” Dean Mioli, director of investment planning for the SEI Advisor Network, told Financial Planning. “I’m not advocating this for every taxpayer, but it can make sense in some cases.”

When it comes to talking about retirement, eldercare, and inheritance, parents may be from Mars while their grown children might as well be living on Neptune.

In fact, a couple age 65 might need $387,000 saved in order to be confident of covering their health care costs in retirement, not including outlays for long-term care.

“The financial advisor is critical, as he or she has the job of opening the estate and trust accounts," Peter Lang wrote in a white paper. "This can only be done once the will has been probated, the executor has been appointed, and a Tax Identification Number has been issued by the IRS.”

Just as the cobbler's children go without shoes, two-thirds of independent advisors ignore succession planning. Such advisors could fall into an “annuity trap,” watching the value of their business degrade as they near the exit from their practice.