Chair's Message
George Cohen
Fiscal Therapy The area of financial planning has so many facets — investment advisory services, wealth management, budgeting, cash flow planning, succession planning, retirement planning, estate planning and asset protection. These different, but complementary services, have one commonality, they all require accountants to be fiscal “psychiatrists.” Finally, on a different note relative to financial planning, I wish to call your attention to the 360-degree financial literary campaign sponsored by the AICPA and supported by state societies and individuals across the country. Like most learning, the earlier it is started the better, but also remember it is never too late to start getting finances in order. (See Lynn Clark’s article, “10 Ways to Help Your Children Become Financially Literate,” on page 10.) AZ CPA – June 2006
Think about the concept. Whether we are advising our clients, our employees, our family or friends, they come to us for fiscal direction. Sometimes they use us as a sounding board or come to us for a reality check, other times they want a voice of authority.
I learned a long time ago to generally say, “yes,’” when asked, “Can I afford (fill in the blank)?” Most people simply do not want to hear a negative response. Before you think I’m crazy, understand a “yes” response is most often followed by, “but what are you willing to give up?” and “Can you give me additional information?” These questions begin a type of “fiscal therapy.” Either question requires the person to come to their own conclusions, once we accountants provide insight and data to help them make an informed decision.
Of course, those in need of financial planning do not possess our professional skill sets. Professional advisors need to ask, “What is your risk tolerance?” “Why do you want to expand your business or retire?” Or, “How important is it to obtain what you want?” For sure, all of these psychological questions help gain clarity.
I have found the outcome of this process is much more acceptable, and more “buy in” is attained when those relying on our judgment and direction understand the fiscal consequences of their actions.
It is important to realize we are part of a financial planning team necessary to individuals and businesses. Our advice has profound effects on those around us, and it is important to understand not only the underlying facts of questions posed to us, but also our own expertise limitations. Once all of the questions are answered, we can offer our prescription for financial stability or independence.
Take a few minutes to visit the AICPA Web site at www.AICPA.org/financial literacy. The resources are plentiful. Think about what you can do to make a difference, and then act on your thoughts. I promise this prescription will make you feel better.
I hope many of you can plan to attend our 6th Annual Financial Planning Conference on June 9 in
Talk to you soon.
This content has not yet been Rated.
To Rate content, please Login.
