Research Center >> October 2008

Market Crisis Creates New Opportunities in
Financial Services
CPAs gear up for surge in client needs with new offerings.
by Rick Telberg/For the CPA Channel Marketer
AICPA Custom Media Solutions

With the money market meltdown and a deepening economic slowdown, readers of the AICPA Insider family of electronic newsletters are swinging into action by beefing up their financial planning services.

Vendors of financial and investment may have a once-in-a-lifetime opportunity to seize the initiative in the suddenly burgeoning demand for the sage advice and trusted relationships that CPAs are uniquely positioned to provide to affluent families and individuals.

A CPA Trendlines survey of 393 CPAs by Bay Street Group LLC reflects deep concern over the financial and economic fallout. At the same time, it also shows that CPAs are bracing for a huge surge in demand for financial planning and investment services.

Do you think CPAs will become more or less involved in personal financial planning services?
Much More	30%
Somewhat More	50%
No Change	15%
Somewhat Less	4%
Much Less	2%
Source: CPA Trendlines survey by Bay Street Group LLC

Tax, estate and trust planning services lead the list of initiative they will be undertaking with current and prospective clients, followed by retirement planning and business succession planning.

Which of these services will you, or your firm or company, be providing to clients?
Tax/Estate/Trust planning	53%
Retirement planning	46%
Business succession planning	36%
Savings and Investments (in general)	33%
Wealth management	29%
1031 exchanges/Other real estate issues	25%
College savings	25%
Health savings accounts	17%
Insurance (personal, not business)	15%
Specific advice on Stocks /Bonds/ CDs / Mutual Funds/REITs/etc.	14%
Mortgages/Home Equity Loans	10%
Life settlements	4%
Source: CPA Trendlines survey by Bay Street Group LLC

CPAs are particularly alarmed that most clients seem to be under-funded in their retirement accounts. Indeed, 69 percent of CPAs say it’s a problem. But, close behind, CPAs also believe that clients need a good dose of reality.

What do clients need most?
Under-funded retirement accounts (IRAs, 401Ks, etc.)	69%
Unreasonably high expectations for investments' rate of return	57%
Portfolio not properly invested or balanced	54%
At this rate, they'll be working longer than they expect	47%
Failure to follow through on plans	39%
Failure to heed professional advice	28%
Failure to consider all advisable choices	18%
They're not properly insured	16%
Source: CPA Trendlines survey by Bay Street Group LLC

No professional is better equipped to both talk tough to investors and to offer the right financial solution than the CPA.

RICK TELBERG is AICPA Editor at Large and president of Bay Street Group LLC.

FOR MORE about CPA Trendlines research from Bay Street Group, contact Rick Telberg at (914) 674-4531, or by email here.