careIn 2017 my Website was migrated to the clouds and reduced in size.
Hence some links below are broken.
One thing to try if a “www” link is broken is to substitute “faculty” for “www”
For example a broken link
http://www.trinity.edu/rjensen/Pictures.htm
can be changed to corrected link
http://faculty.trinity.edu/rjensen/Pictures.htm
However in some cases files had to be removed to reduce the size of my Website
Contact me at 
rjensen@trinity.edu if you really need a file that is missing

 

 

Bob Jensen's Bookmarks
Accounting, Finance, and Business Section
Bob Jensen at Trinity University

Here are several calculators to help you with your investment decisions:
Mutual Fund Cost Calculator
Tax-Free vs. Taxable Yield Comparison Calculator
College Savings Calculator
Loan Calculator
Savings Calculator
Social Security Retirement Planner
Ballpark Estimate Retirement Calculator
529 College Savings Plan Expense Calculator
Investor Quiz: Test Your Money Smarts

Facts and statistics (Fast Facts) --- http://gwu.edu/~gprice/handbook.htm 

Immigration Since 1840 Social studies dp.la/browse-by-topic/immigration-since-1840 ---
https://dp.la/browse-by-topic/immigration-since-1840

Country Briefings (international statistics) from The Economist http://www.economist.com/countries/ 

This U.S. Department of Commerce Website has a wealth of data and news --- http://www.doc.gov/ 

Commerce Organizations

Assistance
Freedom of Information Act (FOIA), Grants, Reference

Business Development
Contracting Opportunities, Disadvantaged Businesses, Publications, ...

Economic Analysis
Bureau of Economic Analysis, Demographics, Economic Data, ...

Economic Development
Innovative Programs

Environmental Management
Conservation, National Environmental Satellite, Data, and Information Service (NESDIS), Publications, ...

Industries
Exporting, Industries and Sectors Information, Technology

International Trade
Bureau of Export Administration, Defense Trade, Export Controls and Regulations, ...

Electronic Commerce
Programs/Initiatives, Publications and Reports, Statistics

Employment and Internship Opportunities

Laws and Regulations
Economic Development, Exporting

Patents and Trademarks

Programs and Initiatives
Quality, Relief and Reconstruction

Science and Technology
Internet, Science, Spectrum Mgmt, ...

Statistics and Research
Publications

 

 

Finding Colleges, College Rankings, Financial Aid, and Online Programs

Guides to Distance Education Courses and Programs --- http://faculty.trinity.edu/rjensen/245progs.htm 

Finding Colleges, College Rankings, Financial Aid, and Online Programs --- http://faculty.trinity.edu/rjensen/bookbob2.htm#EducationInGeneral 

 

Bookmarks are Listed Below

Accounting

In March 2000 Forbes named AccountantsWorld.com as the Best Website on the Web --- http://accountantsworld.com/.
Some top accountancy links --- http://accountantsworld.com/category.asp?id=Accounting 

Accounting - Accounting Education
Online Accounting Education

AccounitngEducation.com has database links category of international university directories --- http://accountingeducation.com/links/ 
 
Bob Jensen's Links to Accounting Education Programs
Bob Jensen's Links to Accounting Software and Vendors
On Balance Forum - Conferences (Accounting Education Listservs)
On-line CPE Source - Quick, Easy, and Convenient CPE
Insight CPE: Continuing Profesional Education for CPA's
Welcome to the CPEInternet Campus!
RARC(Rutgers Accounting Research Center) Secured Site
BEST CPE - ONLINE CPE Courses for CPA's: Hardwick Publications
NRI Schools -- Leader in Career Training for Busy Adults
http://www.isworld.org/isworld.html
Accounting Related Resources
BUSINESS RESOURCES
AAA American Accounting Association
Financial Accounting Standards Board (FASB) 
Accounting Education Change Commission (AECC)
Summerfor Web (AAA Accounting Education News)
ACCOUNTING TOP FIVE WEB SITES
AICPA Home Page
AICPA Journal of Accountancy
AICPA Index by Subject
AICPA Online Audio/Video Library
AICPA Webtrust Principles and Criteria
ANet Australia home (International Accounting Network)
Association of Government Accountants 
Smart Communities Network --- http://www.sustainable.doe.gov/
Case-Based Reasoning in the Web
Global Window Main Menu (Business Schools and Culture of Japan)
Jim Hasselback's On-line Accounting Faculty Directory
NAN Nordic Accounting Network
PIC-AECM Pacioli Web Server
RAW Rutgers Accounting Web Introduction
CPA Online: Your source for Accounting Information on the Internet
Newsand Information (Legislation, Law, Accounting, Auditing, Health)
Wm. Dennis Huber's Web Page
Will Yancey's Home Page
Master of Business Taxation Degree Program University of Minnesota (tax)
Good links to education sites http://www.teleport.com/~hadid/bookmark_page.html

Accounting Professors


Jim Hasselback's On-line Accounting Faculty Directory
Jensen & Sandlin Survey of U.S. Accountancy Education Programs (This is now out of date)
Bob Jensen's Links to selected colleges and accounting education programs
Gerald Trite's great set of links --- http://iago.stfx.ca/people/gtrites/Docs/bookmark.htm 
Tax and Accounting Sites Directory
Rutgers Accounting on the Web Mailing List WWW Gateway
E. Barry Rice, Loyola College in Maryland
Accounting Quiz Demo (Richard Campbell, ToolBook Demo of Java)
Roger Debreceny Home Page
Trends in Technologies for Ocean-Spanning Asynchronous Learning
ACCOUNTING SOURCES (Pamela Jarvis)
ANEWS-L: Hasselback Directory now on ANet
ANet Australia home (International Accounting Network)
Jim Hasselback's On-line Accounting Faculty Directory (Prentice-Hall Web Site)
InterNIC Guide to U.S. Universities (Directory)
000021 AmericanCollegesand Universities
Jensen & Sandlin Survey of U.S. Accountancy Education Programs
Ceil M. Pillsbury
Sharon Lightner at San Diego State University
AcctgInfoPlus Accounting Education Links
Cital-Welcome
Department of Accounting & Finance,UOW
Favorite Sites -- Accounting, AIS & MIS Students & Professionals
Homepage for Larry Tomassini
Pacioli Web Server
Randall B. Dunham
School of Accountancy - Faculty - Charles Christian
Stonehill College: Programs in Accountancy (John A. Schatzel)
Tennessee Quality Award
Internet Exploration: Hot Sites
Darrell Walden at U. of Richmond - Accounting Information Systems
Univeristy of Waterloo - School of Accountancy - J.E. Boritz
Will Yancey's Home Page (great accounting links)

Colleges (Accounting Programs)

AccounitngEducation.com has database links category of international university directories --- http://accountingeducation.com/links/ 
 
Bob Jensen's Guides  (Old and Outdated)--- http://faculty.trinity.edu/rjensen/245progs.htm 
 
Yahoo! - Education:Higher Education:Colleges and Universities
Tax and Accounting Sites Directory
Accountant's Home Page
Accounting Sites Directory
ANet People Database Welcome
ANet Australia home (International Accounting Network)
Jim Hasselback's On-line Accounting Faculty Directory
Marr and Kirkwood Official Guide to Business School Webs
US News Online Comparisons of Programs in Higher Education
 

Accounting Course Syllabi, Materials, & On-line Courses

Bob Jensen's Guides --- http://faculty.trinity.edu/rjensen/245progs.htm 

                                     http://faculty.trinity.edu/rjensen/255wp.htm 

Free Tax Tutorials for Professors and Students
Tax Analysts, a non-profit pubic service organization that provides in-depth tax information resources for tax professionals, has announced it is making its news and research products available at no charge to accounting, law, and economics professors and their students.
AccountingWeb, June 28, 2007 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=103676
See http://taxprof.typepad.com/taxprof_blog/files/tax_analysts_campus.pdf

Bob Jensen's tax helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

The Journal of Accountancy has many free accounting and tax helpers ---
http://www.aicpa.org/pubs/jofa/joahome.htm

You can order back issues or relevant links management and accounting books and journals from MAAW --- http://maaw.info/

Free Access to Back Issues of The Accounting Review --- http://maaw.info/TheAccountingReview.htm 

From MIT:  OKI and DSpace --- http://faculty.trinity.edu/rjensen/000aaa/updateee.htm#OKI 

From Smart Stops on the Web, Journal of Accountancy, July 2007 ---
http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm

 

THE BLOGGING PROFESSOR
http://taxprof.typepad.com

This Smart Stop provides a daily dose of tax news, papers and court judgments. Professor Paul Caron of the University of Cincinnati College of Law updates the site frequently with a balance of academic and practical items, ranging from IRS reports to details on upcoming tax conferences. CPAs can use the topical archive to find posts by subject tag. Caron’s site is part of the Law Professor Blogs Network (see “Smart Stops on the Web,” JofA, Oct. 06, page 27), which hosts a variety of academic blogs on securities, banking, nonprofits and trusts.

August 30, 2005 message from Walter Antoniotti [antonw@ix.netcom.com]

Good day Bob!

I am a retired college professor building an Accounting Internet Library to serve the accounting community.
I recently added a free internet version of these accounting books from the Quick Notes Learning System.

Financial Accounting covers Accounting I and II college courses and with concise topic  explanations and problem oriented tests.
The Accounting Cycle A Debit and Credit Approach covers debits and credits for the accounting cycle through merchandising.
Financial Accounting For Owners, Managers, and Administrators  covers basic principles without using debits and credits.
Financial Accounting Practice Sets One practice set briefly reviews the accounting cycle and the other is an extensive example 
of the conversion of a merchandising company to a computerized system.

Please consider
1) using these materials in your classes
2) linking to them at your site
3) telling students and fellow teachers about them
4) adopting the paper versions for your courses

Information on these and other accounting books are available at our Business Book Mall Accounting Store.

Thanks!

 
American Accounting Association Accounting Coursepage Eschange (ACE)
American Accounting Association Teaching Section
Accounting Journals Index
Arthur Andersen KnowledgeSpace
Bob Jensen's Links to selected colleges and accounting educators
Bob Jensen's Vendor Database
Sharon Lightner at San Diego State University
Also see my review of Sharon's innovative international accounting course http://faculty.trinity.edu/rjensen/255light.htm
Ceil M. Pillsbury
Course Outline ACTG 691
David R. Fordham
Global Window Main Menu (Business Schools and Culture of Japan)
Homepage for Larry Tomassini
Jensen & Sandlin Survey of Accountancy Education Programs
Jensen & Sandlin Survey of Commerical Learning Materials in Accounting
JohnSon's Accounting and Auditing Page
Abstract97 (compliance detection, real-time audits)
Marr and Kirkwood Official Guide to Business School Webs
OSU Department of Accounting & MIS
Rethinking Teaching and Learning (Accounting, Microsoft Award Winner)
Spiceland's Intermediate Accounting II
Tax Resources (U. of Iowa)
Will Yancey's Home Page
 

Februrary 16, 2003 message from Gerald Trites [gtrites@STFX.CA

The Canadian Institute of Chartered Accountants has a publication "Information Technology Control Guidelines" which was published in 1999. The book is quite large and there has been some talk about a possible decision support system that might be developed, loaded with the ITCG guidelines, placed on a CD and used in the field for assistance in analyzing system controls for particular systems/companies and developing recommendation letters. I would think the preferred approach would be to find a suitable shell and then build the system around it. In the course of my research of a good system, I came across VP-Expert which at one time was highly recommended, but it is DOS based and appears to be out of date. There is a variety of others. Does anyone have knowledge of a good DS shell that might be useful for this application and that would run on current Windows platforms? It should have run-time capability so the CD can run on its own.

Any advice you might have would be most appreciated.

Gerald Trites, FCA 
Professor of Accounting and Information Systems 
St Francis Xavier University Antigonish, 
Nova Scotia Tel.  
Website -
http://www.stfx.ca/people/gtrites 

The CICA home page is at http://www.cica.ca/ 

Activities Based Costing (ABC)

http://akao.larc.nasa.gov/dfc/abc/abcbib.html (annotated bibliography)

http://users.aol.com/caspari/l118.htm (Is ABC Fundamentally Flawed?)

http://www.chief.co.il/toc/ 

http://members.aol.com/caspari0/toc/BIBLIOG.HTM (bibliography)

http://www.focusedmanagement.com/FMI%20Articles/softabc%281%29.htm (ABC Software)

http://www.deloitte.com.au/index.asp?MenuId=0&Page=/content/abc.asp 

http://www.mmsonline.com/articles/119803.html 

http://mba.vanderbilt.edu/germain.boer/Creating%20Value/Discussions/InvLevelandProfit.htm (from my good friend Germain)

http://www.intentia.se/liston/1762_2.lxml 

http://www.neiu.edu/~hchen/202/98/ 

http://web.mit.edu/lfm/www/working_papers/1996_abstracts/strimling_abstract_1996.html 

http://www.sba.pdx.edu/faculty/darrellb/dbaccess/finalstu.htm 

http://www.acq-ref.navy.mil/wcp/abc2.html 

http://www.tocc.com/Geyser_G.html (you have to do a little hunting)

http://hamilton99.execmba.com/activity.htm (Case Study)

http://www.acca.org.za/publications/studenews/9811p34.html (Value Added)

http://www.sbm.temple.edu/~jmereba/research.html (See the Working Papers section)

I would examine the listing of the Managerial Accounting texts at http://www.bn.com/. Enter the search terms "Managerial Accounting" and "Management Accounting." 

I also recommend that you look at the Managerial and Cost Accounting Courses in ACE at http://www.rutgers.edu/Accounting/raw/aaa/ace/index.htm 

Activities Based Costing (ABC) Costing Bibliography
http://www.saffm.hq.af.mil/SAFFM/FMC/ABC/bibliography.htm

Activities Based Management and ABC Costing http://www.rpm-abm.com/cami_idx.htm 

"Towards a New Cost-Aware Evaluation Framework" 
http://ifets.ieee.org/periodical/vol_4_2000/ash.html
 

Added later 

Dear Professor Jensen,

There is an interesting website about ABC and EVA that named: Activity-Based Costing (ABC) Economic Value Added Internet Website GuideWritten by Narcyz Roztocki (http://www.newpaltz.edu/~roztockn/)  at http://www.pitt.edu/~roztocki/abc/abc.htm 

Regards,

Rudi Handoko
Tim1 [Tim1@jsx.co.id

Added later

Dear Mr. Jensen, 
 found your web site, which is remarkable, and I was wondering if you would consider adding our organization to your listing of Activities Based Costing (ABC) links. ICMS, Inc. has been around training & coaching organizations in all industries to implement ABC/ABM since 1988. Please visit our web site for more information:

URL: http://www.icms.net 

Thank you!
Christine Nola, ICMS, Inc. 6031 West I-20, Suite 219 ~ Arlington, Texas 76017 Phone: 817.483.6511 ~ Fax: 817.483.7097 
Webs: http://www.icms.net  and http://www.learnabm.com 

 

Financial Ratios

Financial Calculators and Other Tools for Business Valuation and Forecasting --- http://faculty.trinity.edu/rjensen/bookbob3.htm#080512Calculators 

Hi Thomas,

I hope you are doing well. In response to your financial ratio question, I am afraid that I do not know of a free site that maintains company profiles and industry profiles for a complete set of ratios. Most services charge for this service, although some services provide a few free ratios and other indicators.  Beware of ratio definitions.  As you well know, there are various ways to compute almost any financial ratio.  Naive analysts may be comparing apples and oranges when looking at values of any ratio.

ACCOUNTING AND FINANCE LINKS

Thanks to Chris Nolan I found a pretty good free web site for company and company-to-industry comparison ratios at http://www.financialweb.com/  . Click on the research tab in at that web site and enter a symbol like IBM.

Chris also recommended http://www.stockpoint.com/ .  Enter a symbol or company name such as IBM.  Get the Quote for that company.  Then click on the Company Profile button to see some ratios. 

Another free web site that I recommend is  http://www.investorguide.com/cgi-bin/research.cgi
After searching on a particular company's symbol (try IBM), you will find a Market Guide link.
Alternately, you can begin with Market Guide at http://www.marketguide.com/mgi/snap/4741N.html or http://Yahoo.marketguide.com  .
Users should carefully examine the Market Guide Glossary at http://yahoo.marketguide.com/mgi/HELP/glossary.html .  A possible exercise for students is to have them verify (for selected companies and selected ratios) the Market Guide calculations.

My next recommendation is to go to http://www.natcorp.com/framedirectory.html . By entering a company's stock symbol, you can get all sorts of links, including that company's profile and fundamentals links. The "Company Data" path at this web site leads to http://www.natcorp.com/traded.html

ABC News has some quick and very limited company information for free at http://webapp.abcnews.com/profiles/abc_comp_profiles.asp

The New Google Stock Screener (sort of nice as online screeners go) --- Click Here


If you want to look up a company's annual report online, a very good annual report directory is located at
http://www.reportgallery.com/content/glry_a.htm .  Of course there are some good SEC links at

EDGAR Database
at http://www.sec.gov/edgarhp.htm
EDGARSCAN from PriceWaterhouseCoopers at http://www.pwcglobal.com/gx/eng/ins-sol/online-sol/edgarscan/  
Free EDGAR  at http://www.freeedgar.com/


From the CFO Journal's Morning Ledger on May 4, 2016

The hottest metric in finance: ROIC
A metric known as return on invested capital is all the rage, used by companies such as General Motors Co. to placate activist investors. For ROIC lovers, which also include traditional stock pickers, the measure is the best way to distill what activists view as the most critical skill of management: how they allocate capital.


For a fee, you can get more complete company and industry profiles at http://www.wsrn.com . This is a very good service but some good things in life are not free.

If you are interested in online financial analysis, I highly recommend some of Larry Tomassini's great links.

Tomassini's CorpOnline at http://www.cob.ohio-state.edu/~tomassin/corps/corp.html

Tomassini's Financial Analysis Online http://www.cob.ohio-state.edu/~tomassin/fanon.html

Jim Borden mentioned the Deloitte & Touche web site at
http://www.peerscape.com/member/index.cfm
I found the above server to be painfully slow.  However, Jim's recommendations should always be taken seriously.

MACRO ECONOMICS LINKS (including data classified by industry)

Last year I shared a platform with David Boldt at an education technology conference at Bentley College. David has a great web site for economists, particularly in the area of macroeconomics. His materials are listed at http://www.westga.edu/~dboldt

If you are looking for industry and economic statistics. one place to begin searching is at http://rfe.wustl.edu/ 

The 2008 Statistical Abstract --- http://www.census.gov/compendia/statab/

IPUMS USA (census data from 1850 to present) --- https://usa.ipums.org/usa

U.S. Census Bureau: Random Samplings --- http://blogs.census.gov/

Statistical Abstract of the United States 2004-2005 --- http://www.census.gov/statab/www/
Bob Jensen's threads on encyclopedias are at http://faculty.trinity.edu/rjensen/bookbob3.htm#Dictionaries

U.S. Census Bureau: Random Samplings --- http://blogs.census.gov/

Historical Census Browser --- http://fisher.lib.virginia.edu/collections/stats/histcensus/

U.S. Census Bureau --- http://www.census.gov/

From the U.S. Census Bureau --- http://www.census.gov/hhes/www/income/income.html

Explanations of economic statistics can be found at EconDash.com http://www.econdash.net/ 

The above web site leads to a heap of macro data, but you were more interested in industry ratios. A bit of searching from the above site led me to a University of Michigan site at
http://www.lib.umich.edu/libhome/Documents.center/stats.html

There are various industry categories at the above web site. The Business and Industry button led me to the FedStats web site at http://www.fedstats.gov

Facts and statistics (Fast Facts) --- http://gwu.edu/~gprice/handbook.htm 

Country Briefings (international statistics) from The Economist http://www.economist.com/countries/ 

Another good set of Federal Government links can be found at
http://www.sec.gov/others.htm
Not much in the way of ratio data at that web site, but you will find a variety of interesting documents and links.

A personal finance site geared to the younger generation
Jump$tart.org http://www.jumpstart.org/ 

Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

Portfolio Management

Journal of Portfolio Management - http://www.cpanet.com/up/s0210.asp?ID=0606

Portfolio Management Forum - http://www.cpanet.com/up/s0210.asp?ID=0607

Portfolio Knowledge - http://www.cpanet.com/up/s0210.asp?ID=0608

The Small-Cap Alpha Myth - http://www.cpanet.com/up/s0210.asp?ID=0609

50 Most Common Mistakes Made by Traders and Investors ---
http://www.ratiotrading.com/2009/09/50-common-mistakes-most-traders-make/

Multistyle Rotation Strategies - http://www.cpanet.com/up/s0210.asp?ID=0610

myCFO - http://www.cpanet.com/up/s0210.asp?ID=0611

Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

Consumer Reports subscribers can access an excellent helper site for personal finance --- http://finance.ConsumerReports.org 
A separate subscription for online access is available that also provides a discount to the hard copy magazine subscription.

Investments
Bond funds 1/02 R
Domestic hybrid funds 8/02 R
Exchange traded funds update 10/02 R
Investing in bear market 8/00
Investing online help 3/00
Managing your portfolio 3/00
Mutual-fund families 3/01 R
Rollover rules 1/00
Shoring up your 401(k) 3/02
Short-term bond funds 6/02 R
Stock mutual funds 3/02 R

Shopping & spending Better baseball caps 5/01
Booksellers 1/02 R
Cell-phone calling plans
CR Gift Guide 11/01
Eyeglasses 6/01 R
Groceries online 9/00
Long-distance calling plans
Megastores 7/02 R
Online auctions 5/01 R
Online auctions: Sellers 7/01
Online shopping 11/00 R
Returns 1/99


Banking
Financial privacy 5/01
New face of banking 6/00 R
Online banking 2/02 R

 

Insurance
Life insurance premiums 12/00
Life settlements 2/01


Lifestage transitions
2nd marriage finances 6/02
College-loan debt 7/02
Midlife career changes 9/02
Raising baby on a budget 10/01
When a parent moves in 10/02
Working past age 65 8/02


Saving
Budgeting ideas 8/01
College on credit cards? 7/01
Electricity meter 1/02
How to cut phone bills 2/00
Phone-service wars 3/00
Prepaid phone cards 2/01
Saving for college 2/00
Saving options 9/01

 

10/7/2002

Keeping track of your pension
Employees have seen once-lush 401(k) retirement accounts--already whipped by two years of stock market losses--shrink even more in the summer's market slide. But some 44 million workers have another asset: a defined-benefit pension plan

Index funds you can trade
We provide details on exchange-traded mutual funds, and how they might save you money on your year-end income taxes.

529 college saving plan
Our expert advice and recommendations for the many families who can benefit from this plan.

The "crime tax"
Here, the details on retail theft and how consumers are paying the price.

Shopping online
Now that you know what to buy, find the best places to buy it, with our e-Ratings.

Key

* indicates a product that is part of our continual-testing program.
R indicates a Ratings report.
A indicates an archive Ratings report. Many of the tested models may no longer be available.

The Consumer Reports home page is at http://www.consumerreports.org 

A complete index of all reports is available at A to Z index


Reply from Thomas,
Thanks to everyone who responded to my request for information about industry financial ratios on the Web. After reviewing several sites, I decided to settle with the following:

Yahoo Market Guide: http://Yahoo.marketguide.com .

If you enter a company’s Name or Ticker Symbol in the "Search For" field and then click GO and then Comparison, you will not only obtain financial ratios for the company you have searched for, but you will also find ratios for (1) the company’s industry, (2) the economic sector in which the company operates, and (3) the S&P 500. Other items that you may view about a selected company include:

A Snapshot of the company
Stock Market Quotes
Recent News about the company
Custom Price Charts (this is very interesting)
Highlights
Analysts’ Earnings Estimates and buy/sell recommendations
Market Performance data and summary of institutional ownership
Financial ratio Comparisons—Industry, Sector, S&P 500
Insider Trading
Instit. Ownership
Financials

I plan to use this site for a class project in which students are required to analyze/evaluate a small number of companies. Although it "works", I am concerned about the underlying source and reliability of the numbers and other information that appear at this and other similar sites. Are there any unpublished or published studies on this issue?

Thomas G. Calderon, Professor
G. W. Daverio School of Accountancy
College of Business Administration
The University of Akron
Akron, OH 44325-4802
Tel: (330) 972-6099
Fax: (330) 972-8597
mailto:tcalderon@uakron.edu

Advanced Stock Information http://www.stockadvanced.com/ (note that ratios are available)

Enter a symbol and click "go!" to get the following information: Stock Prices, Options, Stock Splits, Charts, Live Stock Quotes, Stock Performance, Earnings Estimates, Analyst Opinions, Company Performance, Stock Valuation, Broker Reports, Company Profile, Earnings Release Dates, Latest News, Fundamentals, Intraday Charts, Forum Discussions, Technical Charts, Annual Reports, Significant Events, Institutional Ownership, Financial Ratios, Insider Trading, SEC Filings, Financial Statements, Stock Dividends, Competition, Momentum Rating, Management Discussion, Conference Calls, Short Interest, and more.

Update on November 29, 2001 from Ken Neet

Try http://moneycentral.msn.com/investor/invsub/results/compare.asp 
Enter a stock symbol. The next page allows you to select from several categories of ratios.

Update on November 29, 2001 from Enrique Bonson Ponte

You can find Spanish industry averages for free at http://www.registradores.org/iestadis.htm and then financial statements of Spanish quoted companies at http://www.cnmv.es 

Update on November 29, 2001 from Tom Omer

Here is one I use that works very well.
http://www.corporateinformation.com/ 

Jalal Soroosh  recommends http://edgarscan.pwcglobal.com/  

First Research, Inc. Publishes seven- to fourteen-page targeted Industry Profiles on over 100 industries.
http://www.accountingweb.com/firstres/index.html

 

Faculty and Program Performance Appraisal Trends and Accreditation

You may want to especially note the AACSB's  International Performance Indicators Project --- http://www.aacsb.edu/PerformanceIndicators/index.html 

The Performance Indicators Project focuses AACSB International resources on building the most comprehensive and complete database about business schools available anywhere. This database will be used to provide members with a customizable set of information products and services designed to support planning, budgeting and continuous improvement efforts. The online system, scheduled for launch in January 2001, will be available for use only to schools that provide data.

Certain data, specifically indicated in AACSB International surveys and questionnaires, also will be available via the AACSB International Web site to promote member schools to key stakeholders such as prospective students, employers and the media. The Web increasingly serves as the primary resource for prospective business faculty, students and employers. Participating schools also will be eligible for inclusion in exclusive AACSB International lists and other informational pieces designed to better inform stakeholders about business schools, accreditation and the management education industry.

AACSB International Newsline articles about the Performance Indicators Project 

Frequently Asked Questions (FAQs) about the Performance Indicators Project – PDF 

This is also one of the topics covered in the American Accounting Association's benchmarking/partnering initiative.  See http://accounting.rutgers.edu/raw/aaa/partners/partners.htm 

ACADEMIC PARTNERS will help your department improve through:

  • A newsletter especially for program leaders
  • Leadership Express, bi-weekly electronic bulletins alerting program leaders to the latest trends and issues in the field
  • Electronic discussion groups led by experts in their areas. Share your expertise and interact with leading accounting educators.
  • Opportunities to connect electronically with colleagues worldwide to discuss topics of relevance to you.
  • Faculty and administrator development programs
  • Discounted registration for midyear Annual Seminar of the AAA’s Accounting Programs Leadership Group (APLG)
  • Toolkits, comprehensive collections of resources such as videotapes, books, bibliographies and CDs, on topics like assessment, faculty evaluation, active learning, and cognitive development and professional skills

You may want to track the new Leadership Express Newsletter at http://accounting.rutgers.edu/raw/aaa/partners/vol1no1.htm 

Then if you really want to be overwhelmed, enter the phrase "Faculty Assessment" under the category "exact phrase" at http://www.google.com/advanced_search 

The American Academy of Accounting and Finance (AAAF) --- http://www.aaafonline.org/ 

In 1993 a group of accounting and finance professors at a small, teaching oriented, public university started discussing the idea of a cross-disciplinary organization for academicians in the accounting and finance disciplines.

AACSB - International had only recently revised its accreditation standards to make accreditation a realistic option for smaller schools. Even those revised AACSB accreditation standards required faculty to be active in the production of intellectual contributions, i.e. research.

Given the increased emphasis that many teaching oriented schools began to place on research as a result of the change in AACSB standards, the organizers believed there were insufficient research outlets then available to faculty at primarily teaching institutions with limited resources. Accordingly, the organizers decided to move forward with the creation of organization that would give faculty at smaller, primarily teaching institutions access to an organization with a process that would assist them in achieving their research goals.

Also see the following accrediting organizations and summaries:

Specialized Accrediting Agencies --- http://yeah.indstate.edu/hypermail/archive/elaf686/elaf686.9903/0002.html 

AACSB --- http://www.aacsb.edu/ 

ACSBP --- http://www.acbsp.org/ 

Jack Anderson's Accounting Information Finder --- http://www.umsl.edu/~anderson/accsites.htm

From The Wall Street Journal Accounting Weekly Review on September 3, 2010

The Decline of the P/E Ratio
by: Ben Levisohn
Aug 30, 2010
Click here to view the full article on WSJ.com
Click here to view the video on WSJ.com WSJ Video

TOPICS: Analysts' Forecasts, Financial Statement Analysis, Forecasting

SUMMARY: "While U.S. companies announced record profits during the second quarter, and beat forecasts by a comfortable 10% margin, on average, the stock market has dropped 5%. Based on trailing 12-month earnings, the average price earnings (P/E) ratio in the overall market is about 14.9 compared to 23.1 in September 2009; "based on profit expectations over the next 12 months, the P/E ratio has fallen to 12.2 from about 14.5 in May, 2010." The reason for this divergence is, of course, economic uncertainty that is not evident in the (average) point estimates of earnings nor in the relatively good earnings numbers of both the first and second calendar quarters of 2010. The related article is a WSJ graphic of earnings per share actual compared to average analyst estimates, by industry and by week.

CLASSROOM APPLICATION: The article is useful to show the need for understanding context of ratios in undertaking financial statement analysis. It also demonstrates that ratios can be measured in more than one way, such as the use of past earnings or analysts' average forecasts. The related article can be used to introduce students to analysts' earnings forecasts.

QUESTIONS: 
1. (Introductory) Define the price earnings ratio (P/E) and explain its meaning.

2. (Introductory) What two methods of measuring P/E are described in the article? Why do you think both are used?

3. (Introductory) Refer to the related article. How are analysts' estimates used in this WSJ graphic analysis? In your answer, also describe who are the analysts producing these estimates.

4. (Advanced) How did companies perform relative to analysts' estimates in the second calendar quarter of 2010?

5. (Advanced) What has happened to the P/E ratio? Why does the author say the P/E has fallen in relevance? Do you agree with that assessment?

6. (Introductory) What other evidence in the article corroborates the issues in the recent fall in the average P/E ratio?

Reviewed By: Judy Beckman, University of Rhode Island

RELATED ARTICLES: 
Now Reporting: Earnings
by
Aug 01, 2010
Online Exclusive

"The Decline of the P/E Ratio," by: Ben Levisohn, The Wall Street Journal, August 30, 2010 ---
http://online.wsj.com/article/SB10001424052748703618504575459583913373278.html?mod=djem_jiewr_AC_domainid

As investors fixate on the global forces whipsawing the markets, one fundamental measure of stock-market value, the price/earnings ratio, is shrinking in size and importance.

And the diminution might not stop for a while.

The P/E ratio, thrust into prominence during the 1930s by value investors Benjamin Graham and David Dodd, measures the amount of money investors are paying for a company's earnings. Typically, companies that post strong earnings growth enjoy richer stock prices and fatter P/E ratios than those that don't.

But while U.S. companies announced record profits during the second quarter, and beat forecasts by a comfortable 10% margin, on average, the stock market has dropped 5% this month.

The stock market's average price/earnings ratio, meanwhile, is in free fall, having plunged about 36% during the past year, the largest 12-month decline since 2003. It now stands at about 14.9, compared with 23.1 last September, based on trailing 12-month earnings results. Based on profit expectations over the next 12 months, the P/E ratio has fallen to 12.2 from about 14.5 in May.

So what explains the contraction? In short, economic uncertainty. A steady procession of bad news, from the European financial crisis to fears of deflation in the U.S., has prompted analysts to cut profit forecasts for 2011.

"The market is worrying not just about a slowdown, but worse," said Tobias Levkovich, chief U.S. equity strategist at Citigroup Global Markets in New York. "People want clarity before they make a decision with their money."

Three months ago, analysts expected the companies in the Standard & Poor's 500-stock index to boost profits 18% in 2011. Now, they predict 15%. Mutual-fund, hedge-fund and other money managers put the increase at closer to 9%, according to a recent Citigroup survey, while Mr. Levkovich's estimate is for 7% growth.

"The sustainability of earnings is in doubt," said Howard Silverblatt, an index analyst at S&P in New York. "Estimates are still optimistic."

Equally troublesome, analysts' forecasts are becoming scattered. In May, the range between the highest and lowest analyst forecasts of S&P 500 earnings per share in 2011 was $12. Morgan Stanley predicted $85 per share, while UBS predicted $97 per share. Now, the spread is $15. Barclays said $80 per share; Deutsche Bank predicts $95.

When profit forecasts are tightly clustered, it signals to investors that there is consensus among prognosticators; when they diverge wildly, it shows a lack of clarity. The P/E ratio tends to fall as uncertainty rises, and vice versa.

"A stock is worth its future earnings, but that involves uncertainty," said Jeremy Siegel, professor of finance at the University of Pennsylvania's Wharton School. "The more uncertainty there is, the lower the P/E will be."

Not only is the P/E ratio dropping, it also is in danger of losing some of its prominence as a market gauge.

That is because, with profit and economic forecasts becoming less reliable, investors are focusing more on global economic events as they make trading decisions, parsing everything from Japanese government-debt statistics to shipping patterns in the Baltic region.

To some extent this is in keeping with historical patterns. P/E ratios often shrink in size and significance during periods of uncertainty as investors focus on broader economic themes.

P/E ratios fell sharply during the Depression of the 1930s and again after World War II, bottoming at 5.90 in 1949. They plunged again during the 1970s, touching 6.97 in 1974 and 6.68 in 1980. During those periods, global events sometimes took precedence over company-specific valuation considerations in the minds of investors.

There have been periods when the P/E ratio was much more in vogue. A century ago, the buying and selling of stocks was widely considered to be a form of gambling. P/E ratios came about as a way to quantify the true value of a company's shares. The creation of the Securities and Exchange Commission during the 1930s made financial information more available to investors, and P/E ratios gained widespread acceptance in the decades that followed.

But thanks to the recent shift toward rapid-fire stock trading, the P/E ratio may be losing its relevance. The emergence of exchange-traded funds in the past 10 years has allowed investors to make broad bets on entire baskets of stocks. And the ascendance of computer-driven trading is making macroeconomic data and trading patterns more important drivers of market action than fundamental analysis of individual companies, even during periods of relative calm.

So where is the P/E ratio headed in the short term? A few optimists think it could rise from here. If corporate borrowing costs remain at record lows and stock prices remain depressed, companies will start issuing debt to buy back shares, said David Bianco, chief U.S. equity strategist for Bank of America Merrill Lynch. As a result, earnings per share would increase, he said, even if profit growth remains sluggish, and P/E ratios could jump with them.

But today's economic uncertainty argues against that scenario. Consider that while P/E ratios dropped during the inflationary 1970s, they also fell during the deflationary 1930s. The one common thread tying those two eras of falling P/E ratios: unpredictable economic performance.

"We're looking at a more volatile U.S. economy than we experienced in the last 30 years," said Doug Cliggott, U.S. equity strategist at Credit Suisse in Boston. "The pressure on multiples may be with us for quite some time."

September 8, 2010 reply from John Briggs, John  [briggsjw@JMU.EDU]

I saw this article and didn't quite "get" it...the title at least.

Of course the P/E ratio is still relevant.

My favorite site for this is www.multpl.com, where a guy provides a daily look at the Shiller ("Irrational Exuberance") 10-year P/E...10 years of data instead of 1.  It's currently 20.  It used to be 45.  Indeed, 45 was a bubble.

Right now, you would think 16 would be appropriate, but extremely low interest rates argue for higher (in comparison to investing in bonds), but economic uncertainly argues for lower.

So I'd make the case that this metric should be around 16 right now...20 indicates to me that stocks are slightly overvalued.

The only time the P/E ratio really was ignored was in 2000, it seems to me.  I'm glad I had no money then.

Bob Jensen's bookmarks for financial ratios --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303FinancialRatios
Also see http://en.wikipedia.org/wiki/Financial_ratios

Bob Jensen's threads on valuation are at
http://faculty.trinity.edu/rjensen/roi.htm

 

 

Online Accounting Textbooks and Cases

Bob Jensen's listing of free online textbooks and other learning materials are at http://faculty.trinity.edu/rjensen/ElectronicLiterature.htm#Textbooks
Note that most of these are not repeated below, so please click on the above link.

Comparisons of National and International accounting rules --- http://faculty.trinity.edu/rjensen//theory/00overview/theory01.htm#FASBvsIASB

Bob Jensen's summary of accounting theory --- http://faculty.trinity.edu/rjensen//theory/00overview/theory01.htm

O'Keefe Accounting Library Searches http://library.sau.edu/bestinfo/Majors/Accnt/accindex.htm

Free CPA Review Course --- http://cpareviewforfree.com/

CPA Examination candidates and accounting faculty should check out the free database at
http://www.cpa-exam.org/cpa/literature.htm

The Trinity University library has a single-user license (with an academic discount) for PwC’s Comperio --- http://www.pwcglobal.com/comperio
The single-user limitation really has not been problematic for us. Our Library guru wrote some front end code that lets any Trinity faculty member or student go directly into Comperio without having to remember a password

Comperio evolved out of a CD-Rom database that Price Waterhouse  sold under the name “Price Waterhouse Researcher.” Updated CDs were sent to us each quarter in the old days before things were as networked on the Web. Now it’s all Comperio on the Web.

Andersen had a competing CD database called Research Manager. That was bought out after Andersen fell, but I think it is now defunct (I could be wrong about this).

Now Comperio is the main commercial database available other than FARs --- http://www.fasb.org/fars/
I think each student can buy this from Wiley, but there have been numerous complaints about it.

PwC's Comperio Accounting Research Manager

Comperio is the most comprehensive on-line library of financial reporting and assurance literature in the world. Over 1,500 financial executives from around the world use Comperio on a daily basis. Comperio content includes AICPA, DIG, EITF, FASB, IAS, ISB and the SEC as well as pronouncements and standards from Australia, Belgium, Canada, New Zealand and the United Kingdom.

With Comperio, the answers you need are always available - right now, right at your fingertips. There is no software to install - just go to the Comperio website and start researching!

The entire online library can be immediately accessed by browsing a pronouncement or topic directly, or by searching the entire database for key words, topics or terms.

Visit the Comperio product information site at http://www.pwcglobal.com/comperio . You will find the necessary forms to order Comperio today or to request a 30-day free trial.

Andersen's old Accounting Research Manager is now updated and maintained by CCH. The AICPA has accounting research literature in the FARs database.

For national and international accounting rulings and online research, it is best to subscribe for a fee to one of the leading services shown below:

PwC Comperio --- http://www.pwcglobal.com/comperio

CCH Accounting Research Manager --- http://www.accountingresearchmanager.com/ARMMenu.nsf/vwHTML/ARMSplash?OpenDocument

AICPA FARs (marketed by Wiley) --- http://www.fasb.org/fars/

For looking up filings with the SEC, there are two major sources:

EDGAR --- http://www.sec.gov/edgar/quickedgar.htm

PwC EdgarScan --- http://edgarscan.pwcglobal.com/servlets/edgarscan 

It is possible to do comparative company financial analyses using the core earnings databases --- http://faculty.trinity.edu/rjensen//theory/00overview/theory01.htm#CoreEarnings

Many IFRS and multiple nation standards and reviews are available from Deloitte's IAS Plus --- http://www.iasplus.com/index.htm

Free International Auditing Standards
All documents issued by IFAC and the International Auditing and Assurance Standards Board (IAASB) are now available for immediate download at no charge. Visitors must simply fill out a one-time registration to gain access to the documents. http://www.accountingweb.com/item/96952 

Bob Jensen's search helpers are at http://faculty.trinity.edu/rjensen/searchh.htm 
Accounting topic search helpers --- http://faculty.trinity.edu/rjensen/searchh.htm#Accounting
Note that most of these are not repeated below, so please click on the above link.

A Selected Listing of Accounting Textbooks from AccountingStudy.com --- http://accountingstudy.com/books/textbook/ 
Most of these books are not available online, but many have online supplements.

There are very surprising omissions.  For example, under Financial Statement Analysis, I view Stephen Penman ' s Financial Statement Analysis and Security Valuation Book (Irwin McGraw-Hill) as the best book available, but AccountingStudy.com left it out of the list in favor of  books I respect much less such as the Palepu, Healy, and  Bernard book (which has a recent cheap shot inferior revision) and the badly outdated Foster Book (1986).  

Under Managerial Accounting, the lead selling book by Garrison and Noreen (McGraw-Hill) is not included in the list.


Flat World Knowledge will no longer publish versions of its textbooks at no charge ---
http://www.insidehighered.com/news/2012/11/05/flat-worlds-shift-gears-and-what-it-means-open-textbook-publishing

Jensen Comment
At $19.95 a Flat World book may sound like a real deal compared with a competitor's $180 alternative. But keep in mind that the higher priced textbook may be more current and have much better exhibits, end-of-chapter material, and multimedia supplements. As a rule the more expensive versions have value added unless there are some unfair marketing tactics employed (such as giving instructors 20 free copies that they can sell in the lucrative cash market offered by the sleazy guys prowling around faculty offices).

Also keep in mind that students may sell the $180 textbooks back to campus bookstores for as much as $90. There's not much a used book market for books published by Flat World.

"Textbooks for Tightwads:  As classes start, business students are in for a shock: Textbook prices are higher than ever. A word to the wise: It pays to shop around," by Rachel Z. Arndt, Business Week, August 26, 2009 ---
http://www.businessweek.com/bschools/content/aug2009/bs20090826_069900.htm?link_position=link1

Shopping for textbooks can be burdensome at best, painful at worst. And it's no different for business students. By the time students get to B-school, they're probably well-versed in the tricks of the textbook trade. They need to be, with some books required at top B-schools retailing for well over $200.

Although textbook shopping is as inevitable as picking classes or group projects, spending tons of money on books doesn't have to be part of the process. The catch is knowing what you're doing, which isn't as obvious as it sounds, even for students with top-of-the-line spreadsheet skills. Of course, you can still look for the least beat-up copy in the campus bookstore, but that should be just the beginning.

The Web is overflowing with sites claiming to offer the cheapest textbooks around. So, with book prices rising, the cost of higher education higher than ever, and a dreary economy to boot, it'll certainly pay off to spend some time shopping around. Publishers may be resourceful, but students are, too.

An Oligopoly
To say they have to be is an understatement. The General Accounting Office says textbook prices have increased at twice the rate of inflation since 1986. And today, students spend on average about $700 per year on required course materials, according to a 2008 survey by the National Association of College Stores (NACS).

Part of the problem is rising production costs, but the textbook market itself plays a role. The industry is an oligopoly, says James V. Koch, president of Old Dominion University, in a 2006 report by the U.S. Education Dept. Advisory Committee on Student Financial Assistance. According to Koch, five publishers—Thomson, Wiley, Houghton-Mifflin, Pearson, and The McGraw-Hill Companies (Businessweek's parent)—control the market, putting out about 80% of all college texts.

What's more, Koch says, the textbook market is unique. Unlike markets for most consumer products, where demand is generated by consumers themselves, textbook demand is created by another group: the faculty choosing texts for their classes. That makes it possible for publishers to introduce higher prices without much&mdashlif any—loss in revenue.

Publishers can also introduce "bundled" versions of books—books sealed with additional CD-ROMs or other materials—for higher prices. This means, even if just the book itself is required, students are stuck buying a more expensive version.

Tricks of the Trade
But the situation for students isn't as dire as it sounds. First of all, as some economists point out, students are smart and know how to consume. Yes, textbooks are expensive. But they are expensive at list price—usually the highest price a student can find. The prices charged by most bookstores, online retailers, and even online trading posts are well under this publisher-set price.

As BusinessWeek found out, those retail prices can vary wildly, which is why it pays to shop around. One of the easiest and fastest ways to find the best prices is to use a site that aggregates prices from many retailers. Booksprice.com and allbookstores.com are good places to start. They both list prices from the most popular Web retailers, such as alibris.com, half.com, bookbyte.com, and even Amazon.com. If aggregated searches aren't turning up the results you want, you can go to individual retailers' sites. Make sure to know the edition, author, and publisher of the book you're looking for—some books, on topics such as microeconomics, share the same title for completely different products.

Expect some surprises. Sometimes a retailer will sell the new version of a textbook for much less than a used copy. Abebooks, for example, charges $69.99 for a new copy of Jonathan Berk's and Peter DeMarzo's Corporate Finance and $120.54 for a used one. It's unclear why this happens, but one possibility might be that the owners of the used books simply overpriced their product.

Continued in article

Jensen Comment
Keep in mind that the campus bookstore probably will buy back a book that they did not sell originally.

 


Thompson Learning's  WebTutor --- http://snipurl.com/WebTutor 

McGraw-Hill --- http://www.mhhe.com/catalogs/ 

Prentice-Hall --- http://vig.prenhall.com/ 

http://www.cybertext.com/
http://www.wadsworth.com/
 
http://www.prenhall.com/ 
South-Western College Publishing --- http://www.swcollege.com/

RJ Interactive Home Page (Online Accounting, Publishing) (Richard J. Campbell)

 

Taxpoint: http://taxpoint.swcollege.com/taxpoint_2001/taxpoint.html
StudyLive: http://www.swcollege.com/acct/studylive/studylive.html
INTACCT: http://www.swcollege.com/acct/rama/intacct/intacct.html
Computerized Principles of Accounting:  http://www.swcollege.com/acct/klooster_introacct/klooster.html

The European Case Clearing House (ECCH) homepage is at http://www.ecch.cranfield.ac.uk/ 

COLIS:  Case Searching by Internet --- http://www.ecch.cranfield.ac.uk/europe/pages/search/index.html 

COLIS is the single most comprehensive electronic bibliography of management case study and reprint materials in the world. Regularly updated, COLIS contains abstracts of over 30,000 case studies, journal article reprints and supplementary materials, many with inspection copies on-line for immediate previewing.

ON-LINE INSPECTION COPIES 
In December 2003 99 new on-line inspection copies were added to COLIS. The total number now available to view on-line is 7,358. 

Electronic Delivery

Who is eligible?
Electronic delivery is only available to full educational and corporate members of ECCH.

What is available?
Case masters
The facility to reproduce cases in-house is available to eligible organisations. In granting permission to copy, ECCH supplies a complimentary case master and charges for the number of copies to be made for teaching
*. The member organisation has the choice of receiving the master in either paper or electronic format**.
Teaching notes
A large proportion of the cases distributed by ECCH have accompanying teaching notes which are available separately. These may be delivered electronically
** for use only by named faculty members in educational organisations and named trainers in corporate training departments.

What are the advantages?
Electronic delivery eliminates shipping charges and ensures case materials are received within one working day
**.

How does it work?
Materials delivered electronically will be supplied as sealed (ie encrypted) pdf files, thus fulfilling ECCH security requirements. Customers will receive the sealed files as an e-mail attachment.

Demonstration
If you require further information or you would like to see a demonstration please contact Lucy Baldwin at la.baldwin@ecch.cranfield.ac.uk or on 
+44 (0)1234 756420.

EECH has, with the co-operation of most case-authoring institutions, recently introduced a concessionary pricing program (CPP) to provide business schools in 65 underdeveloped nations affordable access to cases for use in public education programs --- http://www.ecch.cranfield.ac.uk/cpp/ 

Until now, ECCH's efforts have concentrated largely on encouraging the use of cases within business schools and companies situated in the developed economies of the world. Schools in developing countries have been effectively excluded from obtaining ECCH's materials due to price.

In response, ECCH has introduced a scheme (CPP) to make cases and associated materials more accessible to educational institutions in the developing world.

Top Ten Emerging Technologies According to CFO Magazine in October 2002

THE NEED-TO-KNOW LIST
1. XBRL
2. Business Intelligence
3. Wireless Connectivity
4. Grid Computing
5. Multivariable Testing (MVT)
6. Digital Cryptography
7. Rich Media
8. Internet2
9. Biometrics
10. Small Technology
 

XBRL tops the list.  Bob Jensen's threads on XBRL are at http://faculty.trinity.edu/rjensen/XBRLandOLAP.htm#XBRLextended 

 

You can order back issues or relevant links management and accounting books and journals from MAAW --- http://maaw.info/

Free Access to Back Issues of The Accounting Review --- http://maaw.info/TheAccountingReview.htm 

International Accounting News (including the U.S.)

AccountingEducation.com and Double Entries --- http://www.accountingeducation.com/
        Upcoming international accounting conferences --- http://www.accountingeducation.com/events/index.cfm
        Thousands of journal abstracts --- http://www.accountingeducation.com/journals/index.cfm
Deloitte's International Accounting News --- http://www.iasplus.com/index.htm
Association of International Accountants --- http://www.aia.org.uk/ 
WebCPA --- http://www.webcpa.com/
FASB --- http://www.fasb.org/
IASB --- http://www.fasb.org/
Others --- http://faculty.trinity.edu/rjensen/bookbob1.htm

Gerald Trite's great set of links --- http://iago.stfx.ca/people/gtrites/Docs/bookmark.htm 

Richard Torian's Managerial Accounting Information Center --- http://www.informationforaccountants.com/ 

 

Social Accounting

Ethics Study

Hi Iman,

There are many useful sites, and I am sorry to say that I have not cataloged Websites on social accounting.  A few sites that might help you get started are listed below (although not all links are focused at financial reporting):

Introductory Reading Lists

http://scout.cs.wisc.edu/archives/SRA--LCSHSearch.php?SubjectID=9907 

http://www.gla.ac.uk/departments/accounting/csear/studentresources/introread.html 

http://www.business-ethics.com/web-ethi.htm 

http://webapps.unl.ac.uk/apps/faq/cf_tag_verity_detail.cfm?ID=510&sectionname=Library 

History

http://www.sustainability.com/programs/engaging/history-reporting.asp 

Journals --- http://www.mbs.unimelb.edu.au/library/mconline/serials/Serindex.htm 

Special Issue of the European Accounting Review --- http://www.bham.ac.uk/EAA/ear/conts/volume9.html 

The Ecologist --- http://www.theecologist.org/links.html?section=48 

UK Organizations --- http://cei.sunderland.ac.uk/ethsocial/orgs.htm 

http://www.ids.ac.uk/eldis/hot/ethicsguide2.htm 
Especially note the Subject Guides

Ponemon --- http://www.ftc.gov/acoas/nominations/ponemonbio.htm 

India and Bangladesh --- http://www.mimap.org/index.cfm?fuseaction=viewrep&doctype=Research  

THE NEED FOR FUNDAMENTAL RESEARCH IN ISLAMIC ACCOUNTING --- 
http://islamic-finance.net/islamic-accounting/acctg.html
 

Social Indicators --- http://www.ccsd.ca/si_exec.htm 

Impact Assessment 

http://www.enterprise-impact.org.uk/pdf/EINDecember01.pdf 

http://www.ag.unr.edu/uced/reports/technicalreports/9899reports/9899_04rpt.pdf 

Radical Disclosure Theories --- http://www.commerce.adelaide.edu.au/courses/at3/slides/disclosuresocialacc2001.pdf 

Unaccountable Accounting --- http://www.commondreams.org/views02/0128-02.htm 

Misc.

http://www.warwick.ac.uk/fac/soc/Economics/research/resdevel.htm 

http://www.neweconomics.org/default.asp?strRequest=areasofwork&pageid=57 

http://www.sums.ac.uk/staff/owen.htm 

http://www.foe.org/international/cswg/ 

http://www.cbs-network.org.uk/SocAdbib.html  

Great Old Stuff

PHANTASMAGORIC ACCOUNTING: Research and Analysis of Economic, Social and Environmental Impact of Corporate Business (Sarasota, FL: The American Accounting Association, 1977).

Hope this helps!

Bob Jensen

Dear Dr. Jensen,

My name is Iman Aref. I'm a student at the American University in Cairo, majoring in Accounting. I'm currently doing a research paper on the Social Responsibility of Financial Reporting. I was wondering if you know of any credible websites or links you can refer me to?

I did try searching the WWW for the topic, but unfortunately, I was unlucky.

Thank you for your help.

Iman Aref

History

Bob Jensen's Brief Summary of Accounting History --- http://faculty.trinity.edu/rjensen//theory/00overview/theory01.htm 

History of the Securities and Exchange Commission (SEC) --- http://www.sechistorical.org/ 

Shared Accounting Courses and Other Materials

Shared Open Courseware (OCW) from Around the World: OKI, MIT, Rice, and Other Sharing Universities --- http://faculty.trinity.edu/rjensen/000aaa/updateee.htm#OKI
 
Free online electronic literature, including free textbooks --- http://faculty.trinity.edu/rjensen/ElectronicLiterature.htm
 

Free Mathematics and Statistics Tutorials --- http://faculty.trinity.edu/rjensen/Bookbob2.htm#050421Mathematics

Free Science and Medicine Tutorials --- http://faculty.trinity.edu/rjensen/Bookbob2.htm#Science

Free Social Science and Philosophy Tutorials --- http://faculty.trinity.edu/rjensen/Bookbob2.htm#Social

Free Education Discipline Tutorials --- http://faculty.trinity.edu/rjensen/Bookbob2.htm

Teaching Materials (especially video) from PBS

Teacher Source:  Arts and Literature --- http://www.pbs.org/teachersource/arts_lit.htm

Teacher Source:  Health & Fitness --- http://www.pbs.org/teachersource/health.htm

Teacher Source: Math --- http://www.pbs.org/teachersource/math.htm

Teacher Source:  Science --- http://www.pbs.org/teachersource/sci_tech.htm

Teacher Source:  PreK2 --- http://www.pbs.org/teachersource/prek2.htm

Teacher Source:  Library Media ---  http://www.pbs.org/teachersource/library.htm

Free Education and Research Videos from Harvard University --- http://athome.harvard.edu/archive/archive.asp

VYOM eBooks Directory --- http://www.vyomebooks.com/

From Princeton Online
The Incredible Art Department --- http://www.princetonol.com/groups/iad/

Online Mathematics Textbooks --- http://www.math.gatech.edu/~cain/textbooks/onlinebooks.html 

National Library of Virtual Manipulatives --- http://enlvm.usu.edu/ma/nav/doc/intro.jsp

Moodle  --- http://moodle.org/ 

The word moodle is an acronym for "modular object-oriented dynamic learning environment", which is quite a mouthful. The Scout Report stated the following about Moodle 1.7. It is a tremendously helpful opens-source e-learning platform. With Moodle, educators can create a wide range of online courses with features that include forums, quizzes, blogs, wikis, chat rooms, and surveys. On the Moodle website, visitors can also learn about other features and read about recent updates to the program. This application is compatible with computers running Windows 98 and newer or Mac OS X and newer.

Some of Bob Jensen's Tutorials

 

Damodaran Online: A Great Sharing Site from a Finance Professor at New York University and Textbook Writer --- http://pages.stern.nyu.edu/%7Eadamodar/

Jim Mahar's finance sharing site (especially note his great blog link) --- http://financeprofessor.com/

Financial Rounds from an anonymous finance professor --- http://financialrounds.blogspot.com/

The AICPA Issues Business Fraud Case Studies --- http://www.aicpa.org/antifraud/spotlight/030409_cases.asp
 
TheAICPA has made its Year 1992 through Year 2000 Accounting Educators Conference Professor/Practitioner Cases available.  See http://www.aicpa.org/members/div/career/edu/ppcdp.htm 
 
Accounting Coursepage Exchange (ACE) - American Accounting Association
Jensen & Sandlin Survey of U.S. Accountancy Education Programs
Bob Jensen's Web Site
Innovation in Accounting Education Award 1999 Submissions to the American Accounting Association
(I will review some of these documents in future editions of New Bookmarks)
http://www.rutgers.edu/Accounting/raw/aaa/facdev/teaching/awardsub.htm

AICPA Professor/Practitioner Case Development Program
Please be informed that the winning case materials (student notes only) are now available on the Institute Web site at http://www.aicpa.org/members/div/career/edu/caseidx.htm.
ACCT 5341 (International Accounting Theories)
ACCT 5342 Accounting Information Systems
Study Web
WebCT Homepage (Wayne Ingalls' Accounting Courses)
Accounting Theory Course in Australian National University)
ACCOUNTING SOURCES (Pamela Jarvis)
Brown and O'Leary Tutorial
6E:002 RealAudio Lecture Home Page (University of Iowa, Real Audio)
Introductory Accounting I Virtual Course (Barry Rice, Loyola College)
Management Accounting Modules
OptionSource.Com Home Page (Options Trading Tutorials)
AC3029Accounting Systems
Stonehill College: Programs in Accountancy
KenyonCollege - Academic Projects on the Kenyon Web
Favorite Sites -- Accounting, AIS & MIS Students & Professionals (Shared Course Materials)
Favorite Sites -- Accounting, AIS & MIS Students & Professionals (Accounting and AIS Links)
AAA IS/MAS Homepage
Management Accounting Section of the American Accounting Association
Management Accounting Modules
Accounting and Financial Information
Welcome to CAROL (online annual financial reports)
http://www.isworld.org/isworld.html
Master Budget-Master Index
Peter Kenyon at Humboldt State University
SMAP 96 Homepage
Spiceland's Course Resources
G. Gray at CSUN
Great Ideas in Teaching Accounting
Intermediate Accounting - UC Santa Barbara
Introduction to Management Accounting
NSNS Syllabits: Accounting Syllabi
Riding the Information Superhighway - Course Syllabus
Slides on "Why [Study] Accounting?"
Tax Resources (U. of Iowa)
Tax World Homepage
US University's Accounting Departments
High Q Learning Products - Courseware - Software - Accounting Courseware, Accounting Education, Accounting Training
Consumer Behavior Book With Online PowerPoint and Cases
AC3029 Accounting Information Systems (AIS)
Yale SOM Accounting Home
Every now an then I stumble on a very helpful website with many links. One of these is @theBeech from SUNY College at Fredonia. Thank you Fredonia for sharing these links on education in general and on accounting education in particular  The main website is at http://beech.ait.fredonia.edu/teaching.htm 

Learning Skills Links --- http://beech.ait.fredonia.edu/learning.htm 
Teaching Resources Links --- http://beech.ait.fredonia.edu/teaching.htm 
The above links are very comprehensive --- I recommending making bookmarks on these pages.

For other education links go to http://faculty.trinity.edu/rjensen/bookbob2.htm 

Some Course Web Pages Supported from SUNY College at Fredonia --- http://beech.ait.fredonia.edu/course/default.htm 

Newsgroup messages are located at http://beech.ait.fredonia.edu/newsgroups.htm 

Some Accounting Career Information from SUNY College at Fredonia --- http://beech.ait.fredonia.edu/careers.htm 
This is a great website with lots of useful links about accounting careers, continuing education, and certification specialties.  
In particular, note the Accounting Career Information Link at http://beech.ait.fredonia.edu/careersac.htm 

 
From Phil Livingstone, President of the Financial Executives Institute (since this is linked from the Download Archives that anybody can access, I assume that this Excel Workbook is available to the general public)

Acquisition Model - Bruce Valentine, CFO of McStain Homebuilders, and a member of the Rocky Mountain Chapter, contributed a great Excel workbook for pro forma acquisition modeling. It takes the historical and projected results of the seller and buyer and combines them with consideration of the accounting and tax treatments. Thanks so much to Bruce for this great contribution to all FEI members. I’ve known and worked with Bruce and he is a bona fide rocket scientist. 

I believe FEI’s future will contain much more model- and presentation- sharing. Please think about the tools you use or tools you need and send me e-mail if you want to contribute something or are looking for a particular tool. Web-enabled tools for information sharing and analysis should be a priority.

Go to http://www.fei.org/download/dl_index.htm (Then click on MS Excel Acquisition Model. Bruce Valentine)

Charles A. Dice Center for Research in Financial Economics http://www.cob.ohio-state.edu/~fin/dice/index.htm  

 

The New Hampshire Society of CPAs has a rather nice service providing abstracts of articles of interest to accountants --- http://www.nhscpa.org/May2002News/enews.htm 

Shared Courseware in Business and Finance

Index for ACCT 5341 (International Accounting Theories)
Study Web
Developing World Wide Web pages at Cornell
Lessons from Business School Web Sites
ECO/FIN/INBhome
University of Newcastle Department of Economics
Finance--UC Berkeley, Brad De Long's Shared Course Materials, Shareware, Education)
Pamela P. Peterson (FIN 3403, Accounting Financial Statements, Shared)
Homepage For David Boldt (economics education)
Charles A. Dice Center for Research in Financial Economics
 

Shared Accounting Resource Materials

Bob Jensen's Links

Globalization Strategic Alliances Roundtable (GSAR), Berlin, Germany, June 22, 2001 --- http://www.cs.trinity.edu/~rjensen/GSAR2001/000start.htm

Accounting Journals Index
Accounting, Finance, Business, and Other Glossaries
Jensen & Sandlin Survey of U.S. Accountancy Education Programs
AuditNet Home Page  (Includes link to Auditors Sharing Audit Programs (ASAP) page
BUSINESS RESOURCES
Business Resource Archive - Accounting
Online Calculators

Guides to using a financial calculator without having to be confused by the manual
http://moon.pepperdine.edu/~mkinsman/Using.html  

Ernst & Young LLP - Download Library - SFAS 133 Financial Instruments Derivatives
Ernst & Young LLP - Download Library - SEC Rules on Financial Instruments Derivatives
InfobyteHomepage (Accounting, General Ledger Software)
Wow International Accounting Helper Site 
Paul is a former student during my years at Michigan State University and has been project director of various FASB and IASC accounting standards before joining Deloitte on special assignment in Hong Kong.

Hello Bob,

As part of my work at Deloitte here in Hong Kong, I have developed IASPLUS, which is both a web site (http://www.iasplus.com) and a quarterly printed newsletter (the latter is available on the website in electronic form).  The website and newsletter are devoted to the development, dissemination, understanding, and use of International Accounting Standards.  Both include country-specific information -- currently limited to Asia but soon to be expanded to include Europe and beyond.

I thought these might be of interest for your bookmarks.

I enjoyed our panel together at the AAA.  I hope to see you this summer at the Atlanta meeting.

Paul Pacter

Reply from John Phillips [jphillip@UOG9.UOG.EDU] on March 7

This is a great site it provides details not only on IAS but on the countries of the world as to their accounting standards and CPA organizations

Distributed Network General Ledger Software and Services 

Bob Jensen's Threads on Webledgers for Distributed Network Computing of Accounting Systems and Business Services  http://faculty.trinity.edu/rjensen/webledger.htm

Just for Educators from the AICPA --- http://www.aicpa.org/edu/justedu.htm 

 
Accounting Education: Charting the Course through a Perilous Future
Taylor Report on Student and Academic Research Study
AICPA Core Competency Framework for Entry into the Accounting Profession (The Framework)
150-Hour Education Requirement
Academic and Career Development
Best Academic Practices
CPA Examination Reformation and Computerization
CPA Vision Project
Conferences
Curriculum Development Guidance
Education Programs and Services
Educational and Professional Updates
Pathfinders
Publications


Free CPA Review Course --- http://cpareviewforfree.com/

Center for Financial Research & Analysis, Inc.

CFRA, Inc. Launches Free On-Line Service for Academic Community

Rockville, MD - August 1 - The Center for Financial Research & Analysis (CFRA, Inc.), a leading provider of independent research to over 2,000 institutional investors, will now offer an academic version of its product to professors and their students. Since there is no cost for this service, its use is restricted for research and teaching purposes.

What's included with the Academic Version?

1. Access to all educational pieces in our database. 2. Access to selected company-specific reports that focus on quality of earnings issues 3. Weekly e-mail notification of new companies added to the database

Who qualifies for this service and how can you sign up?

All professors teaching courses in financial accounting, auditing, and finance qualify. To sign up, click on the URL http://www.cfraonline.com  and register. Then sign and fax the agreement to (301) 984 8617. Once activated, you will have access to the Academic Version of CFRA's database.

About CFRA

CFRA has become known internationally for its pioneering research ferreting out companies with operational problems that use unusual accounting practices to camouflage such practices. Founded in 1994 by Dr. Howard M. Schilit following a 20 year career as an accounting professor (author of FINANCIAL SHENANIGANS: How to Detect Accounting Gimmicks and Fraud in Financial Reports) http://www.cfraonline.com/publications/publications.jsp#FinancialShenanigans  CFRA provides a daily on-line news wire of financial analysis and a database on over 900 companies. Its mission is to warn investors and creditors about companies experiencing operational problems and particularly those that employ unusual or aggressive accounting practices to camouflage such problems.

Howard Schilit
 http://www.cfraonline.com  
301-984-1001 ext. 105

The University of Kansas International Business Resource Connection http://www.ibrc.bschool.ukans.edu/ 

The IBRC, a business outreach program of the Center for International Business Education and Research (CIBER) within the School of Business at the University of Kansas, was created to encourage trade opportunities and expand international business education. Through strategic alliances with major partners (including the U.S. Department of Education and the Kauffman Foundation), private sector affiliates, faculty and students at the University of Kansas, the IBRC assists small and medium-sized Kansas companies explore available trade opportunities and broaden international business skills. Particular emphasis is placed on the emerging role of electronic communication resources (the Internet) in developing international business opportunities for firms located in the heartland of the United States.

Also, don't forget Paul Pacter's great international accounting site at http://www.iasplus.com/ 

OSU

AMIS Faculty Home Pages
Fisher College of Business
In the Classroom
Waleed Muhanna's Home Page

Accounting Software and Related Software

Accounting Textbooks, Software and Instructional Aids

Wikipedia has a rather nice summary of accounting software at http://en.wikipedia.org/wiki/Accounting_software
 

Bob Jensen’s accounting software bookmarks are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

For Educators
Bob Jensen's threads on tools and tricks of the trade are at http://faculty.trinity.edu/rjensen/000aaa/thetools.htm

"So you want a new desktop accounting package?" by David Carter, AccountingWeb, June 5, 2007 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=103569

David does not mention my oft-preferred alternative of a Webledger system (such as NetSuite) that can be accessed at a range of needs and sizes and prices with some huge advantages over installing accounting software on your own hardware --- at http://faculty.trinity.edu/rjensen/Webledger.htm

Bob Jensen's helpers on accounting software alternatives are http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware


The Tax Adviser:  2019 tax software survey ---
https://www.thetaxadviser.com/issues/2019/sep/2019-tax-software-survey.html

2018 CPA Journal:  Finding the Right Tax Software ---
https://www.cpajournal.com/2018/11/12/finding-the-right-tax-software/


Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/


"Technology 2012 Preview: Part 1 Experts explain what should be at the top of your tech wish list for the new year,"  by Jeff Drew,  Journal of Accountancy, November 2011 ---
http://www.journalofaccountancy.com/Issues/2011/Nov/20114310.htm


December 3, 2011 message from Rick Newmark

For collaboration tools, we used Sharepoint in our intro to MIS course, which is required for all business students. Since we adopted Pearson products, Pearson provided with the full version of Sharepoint and 200 access codes. Students can rent the ebook for 180 days on Coursesmart for $24 (list price of hard copy is $56). My techphobic students struggled with learning Sharepoint, and all of us, I included, did take some time to get the hang of it. I think Sharepoint makes a great tool for an AIS course because students have to make many security/control/access decisions for their own group sites. For example, what kind of permissions do you grant to various people/groups? How are you going to control access to documents? Are you going to use check-out/check-in for documents or are you going to let multiple people edit simultaneously?

I am going to use it in my graduate AIS course next semester for the reasons stated above and because they will likely use Sharepoint or some other set of collaboration tools in their professional careers.

Rick Newmark

 


Business Technology from Business Week Magazine --- http://bx.businessweek.com/business-technology/

The Journal of Accountancy has a great monthly technology section (with particular focus on things you never, ever thought you could do with MS Office, particularly Excel) --- http://www.journalofaccountancy.com/
The Q&A modules are particularly informative and should be centralized in one place in addition to monthly editions.

Bob Jensen's threads on accounting software --- http://faculty.trinity.edu/rjensen/bookbob1.htm#AccountingSoftware

Bob Jensen's threads on education technology --- http://faculty.trinity.edu/rjensen/000aaa/0000start.htm

RIP:  The End of Microsoft Office Accounting
Microsoft is formally backing away from the small business accounting market after announcing that the Office Accounting program will no longer be distributed after November 16, 2009. In addition, the Microsoft Professional Accountant's Network (MPAN) will no longer accept new members as of that date.
AccountingWeb, November 4, 2009 --- http://www.accountingweb.com/topic/technology/end-microsoft-office-accounting

Bob Jensen's accounting software threads are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

 

Software Buying Guides
 SMB Finance and Accounting Checklist


February 6, 2008 message from CHRISTINE KLOEZEMAN [ckloezem@PRODIGY.NET]

At Glendale Community College in California we teach our Financial Accounting and Basic Accounting without a computerized accounting program. I have previously included both a tutorial computerized accounting program and later a commerical accounting program. It took too much time out of the class that meets 5 hours a week.

Instead we have a Computerized Accounting class that uses Quickbooks Pro that is required for the Accounting AA. We also have Payroll accounting that uses Quickbooks pro. We were using Business Works (lower version of MAS 2000) but Quickbooks was suggested by our Advisory Committee. We also have a Advanced Computerized Accounting class that teaches Peachtree and others. We also require students to take Excel to get both a certificate and an AA.

Christy


February 6, 2008 message from Carol Flowers [cflowers@OCC.CCCD.EDU]

We have the financial /managerial accounting class meeting 5 hours per week and using epacks. However, we have a "computerized accounting" course that stands alone and is required for an AA degree. In that course, the student completes an integrated accounting package and also excel. We also offer stand alone courses in Quickbooks, Payroll and MAS 90/200.

We have found that our population learns the concepts better with pen and paper (for lack of a better word) and then we use the Computerized Accounting to re-enforce their principles while exposing them to industry software and excel.


June 7, 2007 message from Ray Slager [slgr@CALVIN.EDU]

I wonder if anyone is currently using commercial software in their courses. I tried to use QuickBooks at one time but the company makes it very difficult to use. First of all it must be loaded on each computer - not on the network. Secondly it needs to be updated each quarter for the payroll module to work and of course the entire package must be "upgraded" every two or three years. Does anyone know if this is still the case?

Does anyone use other commercial software that is easier to administer? I currently am using MYOB and find it very easy to use. I currently am looking at their latest version and think it is very promising. It can be loaded on a file server and comes in a "10 pack" - good for use on 10 computers for about $300.

Ray Slager
Calvin College

June 7, 2007 reply from Davidson, Dee (Dawn) [dgd@MARSHALL.USC.EDU]

We use Peachtree and get the software free for the network. Use this link. http://www.peachtree.com/training/educational_partnerships.cfm 

Find the license and application forms. Fax them to Peachtree and the software CD will be mailed to you. They send you last year's version - we just received 2006 - but the changes are very minimal year to year. Each spring we send in the forms and get a new CD to be installed on the network for the following school year. We develop our own exercises, but they also have education material available. Hope that helps.

dee davidson
Leventhal School of Accounting
Marshall School of Business
University of Southern California
(213)740-5018 tel (213) 747-2815 fax

dgd@marshall.usc.edu 

June 7, 2007 reply from Formosa, Jim [Jim.Formosa@NSCC.EDU]

We are using QuickBooks but are looking at Microsoft's accounting software for small business. We have the same problems you describe with QuickBooks.

Jim Formosa, MS, CPA
Certified Senior WebCT Trainer
Associate Professor of Accounting
Nashville Community College
615-353-3420 FAX 615-356-1213

June 7, 2007 reply from Fisher, Paul [PFisher@ROGUECC.EDU]

I have found that Peachtree is much better. I am running an older version, but it does not seem to matter. Peachtree provides an educational version that does not lock the student out after 25 visits, and does not have the payroll deadfall. It also has a "tutorial"

embedded that makes it almost textbook free if you are willing to produce class handouts. I am going to be attempting Timberlake for a construction program. Anyone have experience in that?

Paul

June 7, 2007 reply from Prachyl, Cheryl L [cprachyl@UTA.EDU]

I use Peachtree. They provide a free educational site license. The educational version is one year behind the currently marketed version, but I don't find that to be a problem.

I tried using Quickbooks for one semester but we had no money in our budget to purchase the software. We got a donation to the department for a one year site license but we had problems with the installation in our labs.

I have found that Peachtree works well. It also can reinforce the "cycle" approach to business through the navigation aids.

Cheryl Prachyl
University of Texas at Arlington

June 7, 2007 reply from Leslie Kren [lkren@UWM.EDU]

I use SAP in my cost management courses. SAP is the leading ERP system and using it in the classroom provides exposure to the 'big systems' most of our students see in practice. The startup cost for me was quite high several years ago, but now the SAP University Alliance is quite active and provides summer workshops and substantial assistance with instructional materials to interested faculty.

Leslie Kren, PhD, CPA
Associate Professor
Lubar School of Business
University of WI - Milwaukee
3202 N. Maryland Milwaukee, WI 53201
414 229-6075 fax: 414 229-6957

lkren@uwm.edu
http://www.uwm.edu/~lkren/ 

June 8, 2007 reply from David Fordham, James Madison University [fordhadr@JMU.EDU]

Ray,
I guess my answer is no and yes. I don't use it in class, but I use it in the course.

The first half of our basic systems course is spent on systems concepts relating transaction cycles and the traditional accounting systems flows and operations. We don't demonstrate any commercial software, we mainly concentrate on manual paper document flow to teach them the use of documents like reqs, PO's, receiving vouchers, invoices, etc. and mention that "most of this flow is now computerized." During the second half of the course, while the classroom activities are covering stuff like REA (organization), XBRL (retrieval and reporting), SDLC, information security, PoET, networking, etc., the students are engaged in a lengthy homework assignment (5 weeks long): a group project wherein they, without help or assistance from anyone, keep the books for a small hypothetical company for a month (the shoebox full of receipts concept), by using a commercial software package of their choosing.

They not only choose the package, they must buy it, and then teach themselves how to use it, on their own. This includes setting up the master files, creation of the chart of accounts (or modification of the stock chart to eliminate the hundreds of fluff accounts not required by this company), entry of the month's of data, creation of reports (including some involving the report writer), plus the internal controls necessary for the company to use their particular software package, which might involve form design and creation, etc.

The project is done in student groups (3, 4, or 5 students). The students must first evaluate several packages, and then get approval from the professor for the package of their choice. Since I don't use a textbook for the main part of the course, I expect them to pool and spend their "Textbook" money on a legal copy of the commercial software ($150 per student should give them about $400-700 for software, although some groups try to find suitable packages for under $300). I'd say the average group spends about $400 for their software.

The case is complex enough that the "demo" versions and the low-end versions of packages like Quickbooks and Peachtree absolutely won't suffice. In fact, even the mid-range versions won't be usable UNLESS the group goes to a heckuva lotta trouble designing manual internal controls, in which case their controls usually begin interfering with the efficiency and effectiveness of operations. What's more, low-end package groups often must resort to additional tools to provide some of the required reporting information: excel, etc., and eventually their accounting "system in toto" begins to get quite cumbersome. Students learn valuable lessons in software features versus advertising, features vs. usability, software-based controls vs. manual controls, etc. Plus, during the evaluation phase, they get to compare packages based on the criteria we cover in the first part of the course vis-a-vis the handling of the critical/non-critical data elements, transfer of data between job fun! ! ctions within the company, etc.

They learn one package well enough to put it on their resume, and they get some exposure to one or two others. The fact that they learn it on their own surprises most of my colleagues from my generation, but I've found that after having the accounting system concepts explained to them, and getting some "manual or semi-automated" transaction cycles demonstrated and illustrated, they can pick up the software a whole lot better than my generation. They use the tutorials, they use on-line help (they can use any aid except for a living human -- they can't use email help, for example -- but they can use existing on-line user group posts, blogs, etc. as long as they haven't posted something to the source in question). They get two 30-minute "consulting" sessions with the professor if they get in trouble. Most groups need at least one of those sessions, but I never need to teach them how to use the software, their problems are usually more related to efficiency vs. controls.

Yes, it is a boatload of work, for both the students and for me. But the project counts the same as one of the two major exams, and although they complain about the amount of work while they are doing it, in the end, their deliverable is immensely personally satisfying. Very few of them recocmmend dropping the project from the course (or even scaling it back) in the end-of-course evaluations.

The ability of today's students to rise to the challenge of teaching themselves the intricacies of today's complex commercial software is truly amazing to some gray-haired baby boomers like myself. Thus, I don't spend class time on any commercial package anymore.

(Yes, some groups do make some mistakes in their selection, and learning from their mistakes often turns out to be one of the most effective learning strategies.... this is education, after all, and mistakes aren't fatal.)

So we use commercial accounting software in the course, but not in class.

David Fordham
James Madison University

June 10, 2007 reply from Tom Sentman

Hi David,

I really like your approach to exposing students to accounting software in your class.

Do you teach this course to beginning or second year students?

What are some of the accounting software packages your students have used?

Is there a way that I could obtain an outline and/or syllabus for your course? It would be most appreciated.

Tom Sentman
Springfield, MO

June 11, 2007 reply from David Fordham, James Madison University [fordhadr@JMU.EDU]

Tom, my course is designed to be taken in the junior year, but some put it off until the first semester senior year. Students arrive having taken principles 1 and principles 2, plus Intermediate 1. Some have also taken Intermediate 2, Tax, and a few have even taken Cost. My course is the pre-req for auditing.

Students have used lots of different packages, but the high-end Peachtree Pro Plus, Great Plains, Microsoft Small Business Pro, and similar packages (those in the $250 to $500 price range) seem to be the most popular. My case calls for more than simple 'sell four products to two customers'. It requires departmental sales reporting, consignment, commissions, differing terms for different customers, taxable and non-taxable sales, different tax rates, freight prepaid and collect, FOB shipping point and destination, and even some non-traditional stuff (I call them "easter eggs" because the students have to find them -- critical thinking exercise!) such as a sale that isn't really be a sale, a sale that might or might not be a sale, a purchase that isn't really a purchase, etc... I don't stick to the easy accrual/deferral stuff, I want them to have to stop and think. The reports I ask for are analyses not normally found in the $19.99 packages.

I use Blackboard for the course, and my institution is pretty stingy with the guest log-ins since we put copyrighted materials on our Blackboard webs. Can you give me a personal email and I'll shoot you a PDF copy of the syllabus and course calendar.

The case is one that I came up with. I've been using it and polishing it for about 15 years, and about a dozen other AIS profs (including Nancy Bagranoff) have used it too, but no one is interested in publishing it -- I'm too busy to waste time coming up with the darn "learning bjectives", "teaching notes", and "assessment instruments" junk that the gatekeepers demand these days. (I'm at the point in my career where I don't have to lick quite as many boots as I used to, back in the days when I was young and foolish...) I'll be happy to send you the case and give you permission to use it if you think it would help your students. Like I said, it basically is an exercise in thinking as well as software learning. What I like about it is that the students have to do this "on their own", with only two "consulting sessions", so it forces them to think before they come into my office. It is amazing how many students rise to such a challenge and can think and think well when calle! ! d upon. And as I said before, learning software is something that the kids today can do with their eyes shut (... or glued to their iPhone, or YouTube, or MySpace, etc.)

David Fordham
PBGH Faculty Fellow
James Madison University


New and enhanced features in QuickBooks 2010 ---
http://www.accountingweb.com/topic/technology/new-and-enhanced-features-quickbooks-2010


39 Free QuickBooks Online Tutorials ---
http://fitsmallbusiness.com/free-quickbooks-online-tutorials/
Thank you Crystalynn Shelton and Kristian Rivera --- |
http://fitsmallbusiness.com/category/accounting/


2008 Quickbooks Update

December 12, 2008 message from Scott Bonacker [lister@BONACKERS.COM]

Hello Scott,

 

Thank you for contacting me.  Here is some information for your records.  Click on any of the hyperlinks below for more information and please let me know if you have any questions. 

The Instructor's Resource Center for QuickBooks is located at www.accountant.intuit.com/iep. Go to Register Now and enter your institution's information.  If you do not have your license number (it is a required field) you may enter "IEP" in the license number field.    This will give you full access to the fifteen lesson plans, reviews and PowerPoint presentations.  The lesson plans are for your use only.

DON'T FORGET the Educator's Corner!  Discussion forums, tools, resources and allows the sharing of curriculum from review exercises and quizzes to test questions. 

Pricing is as follows for software used for instructional purposes:    Site licenses come with a 2 year site license agreement to be filled out by the user and returned to Intuit.   Site licenses are strictly for classroom installation for instructional purposes.

NEW ! ! - QUICKBOOKS PREMIER ACCOUNTANTS EDITION IS HERE - Access other versions of QuickBooks 2009 through the Accountants Edition with the toggle feature. Click here to learn more!   The appearance and basic workflows are the same as Pro, but you will also have access to all versions of QuickBooks 2009 (Simple Start, Pro and all of the Industry Specific Versions).  

    • 10 Pack $259.95 - QuickBooks 2009 Premier Accountants Edition for Windows  
    • 25 Pack $399.95 - QuickBooks 2009 Premier Accountants Edition for Windows   
    • 50 Pack $599.95 - QuickBooks 2009 Premier Accountants Edition for Windows   
    • 2008 QuickBooks Student Guide $36.95.  The 2009 text is be $45.95, and includes a 140 day trial CD that student can install on their personal equipment.
    • QuickBooks Pro Academic Version  - CLICK HERE for eligibility requirements and description 

QuickBooks Pro for their individual academic use at a special discounted price:  Bookstores can purchase four or more licenses at 15% discount direct through Intuit's Education Program.  Students can purchase independently by contacting one of Intuit's approved resellers:  Academic Superstore, (800) 817-2347 or Genesis, (800) 433-6326.

QUICKBOOKS USER CERTIFICATION   CLICK HERE for more information. Get 50% off the regular price!  Get the Training & Exam for only $49.98!  Please let me know if this is something you would like to include in your curriculum.   I will need to assign a code to your class so they receive the discount.  Initially each user will need to sign up for the certification through the web site.  Bulk pricing and sign up will come at a later date.   

 

INTEREST IN PERSONAL FINANCE AND QUICKEN?  - Go to www.quickeneducation.com for more info.

Additional Resources and Tools      

20% off Interactive CD Training! -  A great tool to help you learn and teach QuickBooks in your classroom.  Wonderful for overhead presentations.

ProSeries PowerTax Library - Free software for educators. For classroom/instructional purposes only. Click here to view the License Agreement

Ordering Information

FAX or email - DO NOT MAIL - Purchase Orders and State Tax Exempt Certificate to 520-844-6412 or education@intuit.com

The Intuit payment address that will appear on your invoice is Intuit Inc., PO Box 513340, Los Angeles, CA 90051-3340

Credit card and EFT orders are also accepted

If you have any questions, please feel free to contact me.  

LISA SCHWARTZ - INTUIT EDUCATION PROGRAM   - TUCSON, AZ   

(866) 570-3843 - Fax 520-844-6412

education@intuit.com - www.accountant.intuit.com/iep

Bob Jensen's threads on accounting education software are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#software

Bob Jensen's threads on accounting software in general are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/


New and enhanced features in QuickBooks 2010 ---
http://www.accountingweb.com/topic/technology/new-and-enhanced-features-quickbooks-2010


Also see Accounting Software at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware 


Excel, JavaScript, and Other Helpers and Videos --- http://faculty.trinity.edu/rjensen/HelpersVideos.htm


Free Access to Back Issues of The Accounting Review --- http://maaw.info/TheAccountingReview.htm


Auditing and Audit Sampling Software

May 2, 2006 message from Douglas Ziegenfuss [dziegenf@ODU.EDU]

I teach a graduate IT Auditing course in which we use both ACL and Idea. Both are taught because both are used in the business world. We use the version of ACL that comes with Hall's IT Auditing book. Idea sells the students a version and workbook for $25 per student and gives us a free copy of the software and workbook. The students then load the software on their laptops and bring them to class. This turns any classroom into a lab. The students generally like IDEA better but still enjoy ACL.

I hope this helps.

Douglas E. Ziegenfuss
Professor and Chair,
Department of Accounting
Room 2157 Constant Hall
Old Dominion University
Norfolk, Virginia 23529-0229

ACL Business Assurance Analytics --- http://www.acl.com/solutions/audit.aspx?bhcp=1
ACL is bundled with some auditing software textbooks, such as the Rittenberg text --- Click Here 

IDEA Data Analysis Software --- http://www.audimation.com/product_feat_benefits.htm

May 2, 2006 reply from Roger Debreceny [roger@DEBRECENY.COM]

Over the years I have switched between ACL and IDEA. I currently use IDEA in my teaching. A major factor is that students greatly value having the ability to work on their own computer. I do not think there are substantial differences between the products or that the file size restrictions is a major problem.

Roger

Bob Jensen's threads on accounting and auditing software are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware


Top Ten Emerging Technologies According to CFO Magazine in October 2002

THE NEED-TO-KNOW LIST
1. XBRL
2. Business Intelligence
3. Wireless Connectivity
4. Grid Computing
5. Multivariable Testing (MVT)
6. Digital Cryptography
7. Rich Media
8. Internet2
9. Biometrics
10. Small Technology

XBRL tops the list.  Bob Jensen's threads on XBRL are at http://faculty.trinity.edu/rjensen/XBRLandOLAP.htm#XBRLextended 


Recommended Reading in Accounting, Finance, and Business

"Recommended Reading," by Beckey Bright, The Wall Street Journal, March 26, 2006 9:21 p.m.; Page R2 --- http://online.wsj.com/article/SB114305346764805424.html?mod=todays_us_the_journal_report

Bookkeeping and Accounting

 "Streetwise Finance and Accounting ... How to keep your books and manage your finances without an MBA a CPA or a PhD," By Suzanne Caplan
"While sales and marketing are the driving forces to get the cash register ringing, it's the dull task of crunching numbers that determines what the business owner gets to keep! The problem is that most small business owners hate dealing with numbers. This book is an easy to understand primer for the business owner who wants … and needs … a basic understanding of accounting and finance."
 
 "Small Business Accounting Simplified," By Daniel Sitarz
"Every year tens of thousands of small businesses fail because the owners have been unable to manage their financial affairs properly. Simplified for use by nonaccountants, this book explains the fundamentals of small-business bookkeeping in plain language and provides a comprehensive set of clear and understandable forms for tracking a small business's finances."
 
 

Finances and Investing

 "Savvy Investing for Women," By Marlene Jupiter
"This book takes a basic approach to help readers understand the world of money and investments, how to evaluate your risk tolerance, and how to create and manage a wealth-building strategy that works. Whether you are just starting out in the work force, recently inherited a family fortune, or have arrived at the peak of your career, it presents a very good base of information on strategic investing and protecting your assets as your life changes."
 
 "Wake Up and Smell the Money," By Ginger Applegarth
"For those of you who have come to realize that if your stock broker was so smart he (or she) would be retired by now, it's time to take a hard look at your financial habits and get some good old fashion money smarts. This book offers readers an excellent guide to build wealth on real street savvy time tested methods. While this book doesn't promise you a windfall or that you will become a multi-millionaire … it does offer valuable advice and guidance and just might be the best investment you'll make this year."
 
 "Values Based Financial Planning," By Bill Bachrach
"While there is a never ending stream of books on investing, most of the books were written by people who presume the reader already has bushel baskets of money lying around to invest. So what about the people who are not at the point where they have substantial money to plant and grow? This book takes a solid business approach to financial planning and a program similar to a business plan. In other words, one philosophy doesn't fit every person. Before you can achieve better financial success you have to determine what your priorities are and what will motivate you."
 
 

Taxes

 "Schedule C from A to Z - The Sole Proprietor's Guide to Tax Savings," By Robert Hughes, CPA
"With more and more sole proprietors taking on the task of doing their own bookkeeping and tax returns, not having a solid understanding of what makes up the Schedule C return means that many, if not most, sole proprietors overpay taxes by hundreds or thousands of dollars. This guide de-mystifies taxes that apply to the self-employed with the aim of helping business owners increase cash available to help their businesses prosper and grow. It takes the reader step-by-step through each line of the Schedule C and includes information to help them understand and comply with IRS rules. The updated full version for the 2005 tax year is available at
www.NASE.org/scheduleC."
 
 "Tax Savvy for Small Business," By Frederick W. Daily
"Most people don't go into business to be tax experts, but not having a basic understanding of business taxes is an expensive error to make. One of the most common mistakes small business owners make is thinking that they can just turn all their financial matters over to a bookkeeper or accountant. However, the first rule of business finances is that nobody, absolutely nobody, is going to have as much concern for your money as you will! This book is one of the best plain language books on small business taxes. Unless you have an army of accountants working for your business this book is a must read.
 
 

Raising Money

 "Where's the Money?" By Art Beroff and Dwayne Moyers
"Raising capital can be frustrating for any business. While there is no book that can guarantee you will find the money you need to start or grow a business, this guide slashes through much of the red tape and confusing jargon to put financing solutions at your fingertips. Unlike many other books on small-business financing, this book offers up expert tips, advice and secrets for writing financial statements that appeal to different audiences, filling out loan applications that get results, anticipating investor questions, and how to present your business, and yourself in a professional manner.
 
 "Investors in Your Backyard: How to Raise Business Capital from the People You Know," By Asheesh Advani
This is an excellent resource to find the information, documents and calculators you need to put a deal together and negotiate all the particulars to convince people to invest in your business. You'll find step-by-step instructions on how to raise business capital from non-traditional sources such as bank – capital in forms such as gifts, loans or equity investments – from people you already know or who know people you know. Once you have the investment team together Investors in Your Backyard will help you create the paperwork to formalize the deal and protect both sides' interests.
 
 

Marketing

 "Money-Tree Marketing," By Patrick Bishop and Jennifer A. Bishop
Written for business owners who want to achieve higher than normal yields from their marketing efforts, this book helps entrepreneurs generate customers, regardless of the business owner's budget or marketing experience, by keeping to the basics and capitalizing on what the competition "might not be doing". This book helps a small business owner increase their profits by using some unique techniques that entice potential customers into their business. More importantly, it identifies ways to make a business more customer friendly, use a customer profile to get in-depth knowledge about customers and to keep those customers coming back for more.
 
 

Legal

 "The Legal Guide for Starting & Running a Small Business," By Fred S. Steingold
Legal questions come up everyday that make business owners scratch their head and wonder what to do. Will incorporating your business give you more liability protection? Do you have all the proper permits and licenses? These are just a couple of the hundreds of questions that are routine in everyday business. Having a resource to get a basic understanding of small business legal issues is not any further away than reaching for this excellent resource of street savvy small business legal information.
 
 "Small Business Legal Smarts," By Deborah L. Jacobs
"This simple to understand book will offer readers enough information about legal issues in business to raise those little red flags in your head when something needs closer attention. Actually, it is more like a big Q&A book and a reference tool with a twist. It's organized completely around the needs of micro and small businesses. This book filters out the legalese and untangles some of the most frequent questions an entrepreneur might encounter."
 
 "The Employer's Legal Handbook," By Fred S. Steingold
For any employer, with 1 or 50 employees, having access to a well laid out reference book of "answers" is important to staying out of trouble and getting the most out of their employees. In this case this book offers a sensible, real life, approach to dealing with employees and all in easy to understand language from the initial hiring process - and asking or saying the right things - to firing an employee without getting your pants sued off.

 

 



 

Financial Statement Analysis Software

September 3, 2005 message from Angela Lee

Dear Robert Jensen,

In case you missed our demonstration at the American Accounting Association conference in San Francisco, we hope you will find the information below helpful.

FinancialZ, Inc. is a financial software company based in Tempe, AZ. We have an Educational version of our software, Financial Grammar, which is currently being used at universities across the country.

The software is best utilized in managerial finance courses to teach analysis of financial data. It is designed as a teaching enhancement tool to accelerate students' learning of financial analysis concepts (i.e. how to spot red flags). It can be used in either MBA or undergraduate classes. In addition, some of our client-universities currently use it in entrepreneurial courses, financial statement analysis and business development courses. The software is CPA- engineered, (US) GAAP compliant and can be used for AICPA review courses.

In order to download a trial version, go to: www.financialzinc.com . If you look under the PRODUCTS tab, a PDF formatted brochure can be downloaded.

The software can be delivered via CD-Rom or downloaded to the student's computer. The cost is $34.95/per student/per course. If you are interested in incorporating this tool in just one class it can be purchased, by the student, directly from our website using a designated school code.

I invite you to download and experience our software. I will follow up with you again next week to answer any questions that you may have. In the meantime, please don't hesitate to contact me at the number below.

Best regards,

Angela Lee Director,
Marketing FinancialZ, Inc. 480.941.4567

www.financialzinc.com


For 20 years Cougar Mountain Software has been a leading developer of not-for-profit accounting software. Many of the nation's largest non-profit organizations and government agencies depend on Cougar Mountain to provide a fully-integrated software solution, powerful enough to meet their growing needs.

Click below to learn more about the Cougar Mountain FUND Accounting® for Windows® software package. http://www.as411.com/DomBanAd.nsf/WebAdClick?OpenAgent&A=COUGAR-LNK1 


"Consolidation In The Accounting Software Industy: Two Perspectives," by Scott H. Cytron, AccountingSoftware.com --- http://www.as411.com/AcctSoftware.nsf/00/TIS22003246 


February 16, 2003 message from Gerald Trites [gtrites@STFX.CA

The Canadian Institute of Chartered Accountants has a publication "Information Technology Control Guidelines" which was published in 1999. The book is quite large and there has been some talk about a possible decision support system that might be developed, loaded with the ITCG guidelines, placed on a CD and used in the field for assistance in analyzing system controls for particular systems/companies and developing recommendation letters. I would think the preferred approach would be to find a suitable shell and then build the system around it. In the course of my research of a good system, I came across VP-Expert which at one time was highly recommended, but it is DOS based and appears to be out of date. There is a variety of others. Does anyone have knowledge of a good DS shell that might be useful for this application and that would run on current Windows platforms? It should have run-time capability so the CD can run on its own.

Any advice you might have would be most appreciated.

Gerald Trites, FCA 
Professor of Accounting and Information Systems 
St Francis Xavier University Antigonish, 
Nova Scotia Tel.  
Website -
http://www.stfx.ca/people/gtrites 

The CICA home page is at http://www.cica.ca/ 


October 12, 2002 message from Scott Bonacker, CPA [scottbonacker@moccpa.com

I don't know anyone that is using this yet, but this product may be of interest. It doesn't seem to be all that expensive."...a fund accounting software solution that's designed to meet the specialized needs of nonprofit organizations. Designed as a companion application to Intuit's popular accounting programs

QuickBooks Pro 2002..."

 

http://www.nonprofitbooks.com/qbpro_info.asp

http://www.nonprofitfinancial.org/sw/

http://quickbooksusers.com/nonprofit.htm

http://www4.compasspoint.org/p.asp?WebPage_ID=385

http://www.smallbusinesscomputing.com/biztools/article.php/1025041


November 29, 2002 message from CompAcct Solutions Ltd. [csl@COMPACCTSOLUTIONS.COM

Our company has recently developed an entry level computer accounting program called Breeze Basic Bookkeeper. We have received a positive responce from educators who have tried the program. The program is designed around GAAP using an approach that you might find in a 1st year accounting textbook. The program was designed by an accountant to do basic bookeeping without the glitz and glitter that a lot of programs use to purposely hide basic accounting principles. You will see no flashy invoice or check screens in this program. Journal entries are made in standard Debit/Credit format in an easy to use Journal Form. The program has a Debit/Credit Helper to assist the beginner get orientated into the proper use of debits and credits.

You can download a Free Demo at http://www.compacctsolutions.com 

The price of a single user license is US$69.95. However, Lab Discounts, which combine a volume and educational discount, are available by request for qualifying Educational Institutions. The lab discounts range from 45% to 65% depending on the number of users starting at a 5 user license. Send an email to csl@compacctsolutions.com for complete information on the discounts available and how to take advantage of the discounts.

Bryan


Software at huge educator discounts www.edu-software.com  or call us 800-679-7007


Business office software tools (including accounting and tax software)
Phil and Mac's Secret Free Place --- http://www.maxpatch.com/misc4.html 
Readers should definitely take a look at this annotated software index, although some items appear to be out of date.


A review of accounting software (commercial not academic apps) http://www.cfo.com/buyers_guide/index_article.html 


High-End Accounting Software Vendors http://www.cfo.com/buyers_guide/high_end_chart_1.html 
Search the high-end packages that generally target companies with revenues over $100 million. Vendors are listed by the integrated functions, integrated manufacturing, Internet functions, platform, and pricing.

Midrange Accounting Software Vendors http://www.cfo.com/buyers_guide/mid_range_chart_1.html
Search the midrange packages that generally target companies with revenues under $100 million, and find which vendors offer the right mix of functions and compatibility.

 Bob Jensen's Threads on Webledgers (e.g., NetLedger) for Distributed Network Computing of Accounting Systems and Business Services  http://faculty.trinity.edu/rjensen/webledger.htm

The Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) have announced the launch of a new Web site designed to provide information about money managers, financial planners, and other investment advisors. http://www.accountingweb.com/item/59363 

Accounting Software 411 (AS411) --- http://www.accountingsoftware411.com/ 

Accounting Software 411 (AS411) is the place on the Web where you can find the latest news and information on accounting software products. This site is targeted to software consultants, software vendors and anyone who is either researching or is interested in information about accounting software and related solutions. Our goal is to create a community whereby everyone can learn and share their knowledge about the accounting software industry.

There is a great review of tax software in the following cover story:

"Ranking the Products," by Stanley Zarowin, Journal of Accountancy, October 2001, pp. 28-32 --- http://www.aicpa.org/pubs/jofa/oct2001/zarowin.htm 

Vendor Tax program Address Telephone E-mail address
ATX
Forms
Saber, Max
and Taxsolver
PO Box 1040,
Caribou, ME 04736
800-944-8883 sales@atxforms.com
CCH ProSystem fx 21250 Hawthorne Blvd.,
Torrance, CA 90503
800-457-7639 cust_serv@cch.com
Creative
Solutions
UltraTax 7322 Newman Blvd.,
Dexter, MI 48130
800-968-8900 sales@CreativeSolutions.com
Drake
Software
Drake Tax
Solution
235 E. Palmer St.,
Franklin, NC 28734
800-890-9500 drakeinfo@drake-software.com
Dunphy
Systems
1040 Professional
Tax Preparation
6740 Huntley Rd., Suite 103,
Columbus, OH 43229
614-431-0846 dunphy@dunphy.com
Intuit ProSeries 2535 Garcia Ave.,
Mountain View, CA 94043
800-934-1040 www.proseries.com
Lacerte/Intuit Lacerte 1040
Tax Software
13155 Noel Rd., 22nd Floor,
Dallas, TX 75244
800-765-7777 www.lscsoft.com
Micro Vision
Software
Tax Relief 1040 140 Fell Court,
Hauppauge, NY 11788
800-829-7354 www.microvisioninc.com
Orrtax
Software
IntelliTax 13208 NE 20th St.,
Bellevue, WA 98005
800-377-3337 webmaster@orrtax.com
TaxACT 2nd Story Software 5925 Dry Creek Lane, NE,
Cedar Rapids, IA 52402
800-573-4287 www.taxact.com
Taxworks By
Laser Systems
TaxWorks By
Laser Systems
350 North 400 West,
Kaysville, UT 84037
800-230-2322 www.taxworks.com
Universal
Tax Systems
TaxWise 6 Mathis Dr. NW, PO Box 2729,
Rome, GA 30164
800-755-9473 sales@universalsystems.com
Xpress Software Xpress Individual
Package
P.O. Box 280760,
Columbia, SC 29228
800-285-1065 www.xpresssoftware.com

 

 

Accounting Software Library http://www.excelco.com/tal.htm 

Ed Scribner provided the following links:

http://www.4accountingsoftware.com/ 

http://www.2020software.com/acct.htm 

The following has lots of great links. You might have to right click on it and paste it into your browser.

http://www.ecompany.com/webguide/0,1660,14554%7C121%7C0%7C0%7C1%7Ca,00.html 

The 2/20/01 PC Magazine has an article (pp. 144-152) that includes reviews of ePeachtree 3.0, NetLedger 5.0, Peachtree Complete 8, QuickBooks Pro 2001, and QuickBooks for the Web.  The reviews are linked at:
http://www.zdnet.com/eweek/stories/general/0,11011,2678673,00.html

Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/

Another great website is Payroll Online at http://www.payrollonline.com/ 

A great set of links to electronic journals and databases (unfortunately the software database links now have restricted access)
http://www.lib.polyu.edu.hk/electdb/index.htm

Accounting Journals Index
http://www.businessfinancemag.com/archives/appfiles/Topics.cfm?Action=Lookup
ABC Costing Glossary and Software http://www.rpm-abm.com/cami_idx.htm 
Jensen & Sandlin Survey of U.S. Accountancy Education Programs
Bob Jensen's Links to Accounting Software and Vendors
AccountingStudents is the complete online resource for accounting students
Bob Anthony’s Essentials of Accounting multimedia CD ROM http://www.cstone.net/~ivysoft/
Dan Gode (Accounting Tutorials)
So, you want to learn Bookkeeping! by Bean Counter's Dave Marshall --- http://www.dwmbeancounter.com/tutorial/Tutorial.html
RJ Interactive Home Page (Online Accounting, Publishing) (Richard J. Campbell)
Omnis Mus (George Bodnar)
Bruce Hutton CGA - Accounting: Software, Publications and Bookkeeping Software
Software Vendors
Omnis Mus (a general ledger practice set)
Accpac User Area
Accounting Systems -- Accounting System Locator / Selector
High Q Learning Products - Courseware - Software - Accounting Courseware, Accounting Education, Accounting Training
Great Plains Software - Higher education site
Microsoft's Accounting Industry Page
Peachtree Software  

Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/

SBT
Solomon Software
The CMA Review Online!
AccountingStudents.com
RJ Interactive Home Page (Online Accounting, Publishing) (Richard J. Campbell)
Darrell Walden at U. of Richmond - Accounting Information Systems
TAL Standard Edition "Quick LOOK" AIA Accounting Information Systems
Spreadsheets in Education
Welcome to CAROL (online annual financial reports)
The International Corporate Environmental Reporting Site / Milieujaarverslagen
Charles A. Dice Center for Research in Financial Economics http://www.cob.ohio-state.edu/~fin/dice/index.htm
 
Accounting Software Vendors Listed on Page 36 of the Journal of Accountancy, September 1999
Products Vendor Contacts
ACCPAC for Windows


ACCPAC International
Craig Downing
925-461-6716
http://www.accpac.com/ 
Acuity Applications
MAS 90 for Windows
BusinessWorks for Windows
State of the Art
Taylor Mac Donald
770-804-5845
http://www.sota.com
Crystal Reports


Seagate Software
Phil Walston
800-877-2340
http://www.crystalreports.com
Forest & Trees


Platinum Technologies
John Ulrey
603-430-6587
http://www.platinum.com
FRx


FRx Software
Robert Rohan
303-741-8000
http://www.frxsoft.com
Great Plains Dynamics
Great Plains Dynamics C/S+

Great Plains Software
Pamela Kram
281-265-1662
http://www.greatplains.com
Navision Financials


Navision Software--US
Geni Whitehouse
770-798-8386
http://www.navision-us.com
Peachtree Complete Accounting
for Windows

Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/

Peachtree Software
Cynthia Williams
770-564-5700
http://www.peachtree.com
Platinum for Windows
Platinum ERA

Epicor Software
Tami Eshelman
800-999-1809
http://www.epicor.com
QuickBooks Pro 99


Intuit
Richard Walker
619-453-4446
http://www.quickbooks.com
RealWorld Expertise.LAN
RealWorld Expertise.SQL

39 Free QuickBooks Online Tutorials ---
http://fitsmallbusiness.com/free-quickbooks-online-tutorials/
Thank you Crystalynn Shelton and Kristian Rivera --- |
http://fitsmallbusiness.com/category/accounting/
RealWorld Software
Christine Gilroy
800-678-6336
http://www.realworld.com
SAP R/3

Also see http://faculty.trinity.edu/rjensen/245glosap.htm 
SAP Software
Ken Bernstein
973-331-6000
http://www.sap.com
SBT ProSeries
SBT Executive Series

SBT Corp.
Brian Austin
415-444-9900
http://www.sbtcorp.com 
Solomon IV for Windows
Solomon IV for BackOffice

Solomon Software
Cindy Bechtel
419-424-0422, ext. 485
http://www.solomon.com
Traverse


Open Systems Accounting Software
Amy Reynolds
612-403-5726
http://www.osas.com

"Sizing Up NPO Software," Roberta Ann Jones, Journal of Accountancy, November 2000, pp. 28-44 --- http://www.aicpa.org/pubs/jofa/nov2000/jones.htm 

Software Search Here www.findaccountingsoftware.com 

Online Magazine (for Information Professionals) --- http://www.onlineinc.com/onlinemag/index.html

ONLINE is written for Information Professionals and provides articles, product reviews, case studies, evaluation, and informed opinion about selecting, using, and managing electronic information products, plus industry and professional information about online database systems, CD-ROM, and the Internet. This site contains selected full-text articles and news from each issue of the magazine. Direct letters to the editor to Marydee Ojala ( Marydee@xmission.com ). If you are interested in writing for ONLINE, please see the Authors' Guidelines.

e-Commerce and e-Business Helpers for Accountants --- http://faculty.trinity.edu/rjensen/ecommerce.htm 

A message from Julie Smith David [Julie.Smith.David@ASU.EDU
Arizona State University

I teach a course in software selection and evaluation, and the following is a list of sites that I have collected, with the help of several years of students.  The students have to research software products, and they use these sites to find articles, reviews and comparisons.  Therefore, they're not all appropriate for "comparisons," but they all seem to add value at some point in the class.  Perhaps the best for ERP and CRM is TechnologyEvaluation.com (has a selection tool that is REALLY good!).  Intelligent Enterprise is great for CRM, KM, and integration.   Hope these help!

MAGAZINES:
Business 2.0 <http://www.business2.com/> (http://www.business2.com/)
Business Finance Magazine <http://www.businessfinancemag.com/> (http://www.businessfinancemag.com/) Often has feature articles that highlight technology issues that CFO's and CIO's need to handle.

Business Week Online <http://www.businessweek.com> (http://www.businessweek.com)
Byte Online <http://www.byte.online> (http://www.byte.online)
CFO <http://www.cfonet.com/html/cfocont.html> (http://www.cfonet.com/html/cfocont.html)
CIO <http://www.cio.com/> (http://www.cio.com/)
CNN Interactive <http://www.cnn.com/> (http://www.cnn.com/)
Context <http://www.contextmag.com/> (http://www.contextmag.com/) Business Strategies for the Digital Age
Datamation <http://datamation.earthweb.com/> (http://datamation.earthweb.com/)
DB2 Magazine <http://www.db2mag.com/> (http://www.db2mag.com/)
e.biz by BusinessWeek <http://www.businessweek.com/ebiz/> (http://www.businessweek.com/ebiz/)
E&Y's Perspectives on Business Innovation <http://www.businessinnovation.ey.com/journal/loader.html> (http://www.businessinnovation.ey.com/journal/loader.html)

EAI Journal <http://www.eaijournal.com/> (http://www.eaijournal.com/)
ERP News Center by Allen David & Associates <http://www.softwarejobs.com/cgi-bin/swjobs/news.cgi?hits=10&action=show&category=/NEWS/ERP/&ion=TRADE&gcode=erp&skill=ERP&topic=Trade+Articles> (http://www.softwarejobs.com/cgi-bin/swjobs/news.cgi?hits=10&action=show&category=/NEWS/ERP/&ion=TRADE&gcode=erp&skill=ERP&topic=Trade+Articles)

Fast Company <http://www.fastcompany.com/homepage/> (http://www.fastcompany.com/homepage/)
Financial Times <http://www.ft.com> (http://www.ft.com)
FindArticles.com <http://www.findarticles.com> (http://www.findarticles.com)
Forbes <http://www.forbes.com/> (http://www.forbes.com/)
Forbes - directly to archives <http://www.forbes.com/forbes/archives/> (http://www.forbes.com/forbes/archives/)
Fortune <http://www.fortune.com/fortune/> (http://www.fortune.com/fortune/)
Harvard Business School Publishing <http://www.hbsp.harvard.edu/home.html> (http://www.hbsp.harvard.edu/home.html) No articles available on-line.

IBM Systems Journals <http://www.research.ibm.com/journal/> (http://www.research.ibm.com/journal/)
Inc. <http://www.inc.com/> (http://www.inc.com/)
Information Week <http://www.informationweek.com/> (http://www.informationweek.com/)
Infoworld <http://www.infoworld.com/> (http://www.infoworld.com/)
Intelligent Enterprise <http://www.intelligententerprise.com/> (http://www.intelligententerprise.com/)
Manufacturing Systems <http://www.manufacturingsystems.com/> (http://www.manufacturingsystems.com/)
Midrange Enterprise (soon to be APS) <http://www.apsmagazine.com/> (http://www.apsmagazine.com/)
Midrange ERP <http://www.mfg-erp.com/> (http://www.mfg-erp.com/)
Mobile Computing <http://mobilecomputing.com/> (http://mobilecomputing.com/)
News 400 <http://www.as400network.com/> (http://www.as400network.com/)
Purchasing Magazine <http://www.manufacturing.net/magazine/purchasing/> (http://www.manufacturing.net/magazine/purchasing/)

Red Herring <http://www.redherring.com/mag/home.html> (http://www.redherring.com/mag/home.html)
Software Magazine <http://www.softwaremag.com/> (http://www.softwaremag.com/)
Strategy & Business <http://www.strategy-business.com/index.html> (http://www.strategy-business.com/index.html)
US News & World Reports <http://www.usnews.com/usnews/home.htm> (http://www.usnews.com/usnews/home.htm)
Wired <http://www.wired.com/> (http://www.wired.com/)
ZDNet <http://www.zdnet.com/> (http://www.zdnet.com/)

ORGANIZATIONS:

American Productivity & Quality Center (APQC) <http://www.apqc.org/> (http://www.apqc.org/)
APICS-The Educational Society for Resource Management <http://www.apics.org/> (http://www.apics.org/)
Arthur Andersen Global Best Practices <http://www.arthurandersen.com/> (http://www.arthurandersen.com/)
ASP Island <http://www.aspisland.com/> (http://www.aspisland.com/) An organization serving the application service provider industry

Association of Computing Machinery <http://www.acm.org/> (http://www.acm.org/)
Benchmarking Partners <http://www.benchmarking.com/> (http://www.benchmarking.com/)
Cambridge Technology Partners <http://www.ctp.com/> (http://www.ctp.com/)
Center for Virtual Organization and Commerce <http://isds.bus.lsu.edu/cvoc/learn/bpr/mprojects/bp/bpbasics.html> (http://isds.bus.lsu.edu/cvoc/learn/bpr/mprojects/bp/bpbasics.html)

CorpTech -- Database of high tech companies <http://www.corptech.com/> (http://www.corptech.com/)
CORBA <http://www.corba.org/> (http://www.corba.org/)
Enterprise Integration Council <http://www.eicouncil.com/> (http://www.eicouncil.com/) Organization for Application Integrators

Ernst & Young: <http://www.ey.com> (http://www.ey.com) Lots of information about IT, industries, and strategy
ERP Super Site <http://www.erpsupersite.com/> (http://www.erpsupersite.com/)
Forrester Group <http://www.forrester.com/Home/0,3257,1,FF.html> (http://www.forrester.com/Home/0,3257,1,FF.html)
Gartner Group IT Vendor Direct <http://gartner4.gartnerwebcom/vendors/static/index.poll.html> (http://gartner4.gartnerwebcom/vendors/static/index.poll.html)

GIGA Information Group <http://www.gigaweb.com/> (http://www.gigaweb.com/)
The Hackett Group <http://www.thgi.com> (http://www.thgi.com)
International Data Corp. <http://www.idc.com/> (http://www.idc.com/)
Intraware's Everything XML <http://www.intraware.com/control/shop/TechTopics?page=index.jsp§ion=xml> (http://www.intraware.com/control/shop/TechTopics?page=index.jsp§ion=xml)

Intraware <http://www.intraware.com/index.html> (http://www.intraware.com/index.html)
MessageQ.com <http://www.messageq.com/> (http://www.messageq.com/)
Meta Group <http://www.metagroup.com/> (http://www.metagroup.com/)
Netscape's Small Business Source <http://netbusiness.netscape.com/login.psp> (http://netbusiness.netscape.com/login.psp)

Object Management Group (OMG) <http://www.omg.org> (http://www.omg.org)
Solution Matrix: The business case web site <http://www.solutionmatrix.com/> (http://www.solutionmatrix.com/) Resources for performing ROI, Cost-Benefit Analysis, and other justification processes.

SPEX for software evaluations <http://www.checkspex.com/index.htm> (http://www.checkspex.com/index.htm)
Supply Chain Council <http://www.supply-chain.org/> (http://www.supply-chain.org/)
TechnologyEvaluation.com <http://www.technologyevaluation.com/> (http://www.technologyevaluation.com/)
Workflowsoftware.com <http://www.workflowsoftware.com> (http://www.workflowsoftware.com

"How to Select the Right Accounting Software," by by J. Carlton Colling, Journal of Accountancy, October 1999 --- http://www.occpa.com/joasw3.htm 

"Sizing Up NPO Software, Roberta Ann Jones, Journal of Accountancy, November 2000 --- http://www.aicpa.org/pubs/jofa/nov2000/jones.htm 
NPO = Not-for-Profict Organization (including governmental agencies).

Accounting Software Directory http://www.bizforms.com/hlpchrt1.htm 

Each listing includes the manufacturer's name, software titles, platforms supported, price range, web site links and telephone numbers. A brief description of the company's software products is also included. Please note that Software Manufacturers almost always offer technical support for their own products on their respective web sites. Their sites frequently provide excellent business help or have excellent links to other sources for business help. We will mention when a software site includes help or access to resources that are of general interest to businesses of all kinds.

Accounting Software Review --- http://www.cpasoftwarenews.com/editorial/articles/1999/9-7.htm 

Accounting Software News --- http://www.accountingsoftwarenews.com/

"Software for Beyond the SOHO and Single-Office Environment"
By David B. Moody, CPA

[ACCPAC] [AccTrak21] [Champion Business Systems] [Cougar Mountain Software] [CYMA] [Database Creations] [DataModes] [eTEK International] [International Accounting Software] [Peachtree Software] [Red Wing Business Systems] [Sage] [SBT] [Sirius Software]

"High-End Accounting: Big Business Features with a Small Business Feel"
By David B. Moody, CPA

[ACCPAC International] [Appgen] [eTEK International] [Macola] [Open Systems] [Sage] [SBT] [Solomon Software] [SouthWare Innovations] [The Versatile Group] [Due-Diligence Table]

CPA Exam Review Courses and Continuing Education (CEP)

Accountancy Career Threads --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#Careers

CPA exam requirements by state ---
https://financialanalystinsider.com/cpa-state-requirements/

Bryce Welker:  Tips on Passing the CPA Exam ---
https://crushthecpaexam.com/

The Uniform CPA Examination Website --- http://www.cpa-exam.org/ 

From the CFO Journal's Morning Ledger on April 12, 2017

Accountants may need to go beyond their expertise with numbers. The uniform certified public accountant exam began testing candidates on critical thinking, problem solving and analysis at the beginning of the month. The American Institute of CPAs, National Association of State Boards of Accountancy and Prometric announced the change Wednesday. One of the biggest changes is to the "exam blueprints" which have replaced the Content Specification Outline (CSO) and Skill Specification Outline (SSO) as the primary testing element. They identify knowledge linked directly to representative tasks performed by newly licensed CPAs, according to the AICPA. The new assessment will help accountants who are using these skills early in their career “stay ahead of the curve,” said Michael Decker, the vice president of examinations at AICPA, in a written statement

Possibly the Number 1 Resource for CPA Exam Candidates
AICPA:  Uniform CPA Exam Blueprints ---
https://www.aicpa.org/content/dam/aicpa/becomeacpa/cpaexam/examinationcontent/downloadabledocuments/cpa-exam-blueprints-effective-jan-2019.pdf

 

CPA exam will increase focus on higher-order skills
"What Higher Order Skills Will be Tested on the Next CPA Examination," by Ken Tysiac, Journal of Accountancy, April 4, 2016 ---
http://www.journalofaccountancy.com/news/2016/apr/new-cpa-exam-201614166.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=04Apr2016

. . .

Why the exam is changing
The CPA exam is designed to provide state boards of accountancy reasonable assurance that those who receive passing grades have sufficient technical knowledge and skills to be licensed. The AICPA periodically conducts a practice analysis to ensure that the exam measures the right knowledge and skills to protect the public interest and meet the needs of the boards of accountancy as they license CPAs.

A practice analysis launched in early 2014 collected input from boards of accountancy, state societies, public accounting firms, academics, standard setters, regulators, and business and industry on the knowledge and skills needed by newly licensed CPAs. The research revealed that because of advances in technology and outsourcing of routine tasks, newly licensed CPAs increasingly need to use higher-order cognitive skills and professional skepticism while performing tasks such as planning and reviewing the work of others.

As a result, the research showed, the profession supports changing the exam to enable more testing of higher-order skills that would align more closely with the tasks newly licensed CPAs regularly perform.

“With this practice analysis, we heard from the profession that newly licensed CPAs not only need to have the knowledge, but they need to have higher-order skills,” Decker said. “They need to analyze financial and tax information. And they must be able to think critically and problem-solve in their day-to-day jobs.”

What’s new

The next CPA exam will continue to test in the familiar four sections—Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). The exam will place less emphasis on remembering-and-understanding skills, enabling higher-level analysis and evaluation skills to be tested:

  • The number of task-based simulations, a highly effective way to assess higher-order skills, will increase. Task-based simulations will be added to the BEC section for the first time, and the AUD, FAR, and REG sections each will have their number of task-based simulations increased to eight or nine.
     
  • Total testing time will increase from 14 to 16 hours. This will accommodate increases of one hour each for the BEC and REG sections. The extra time is being allotted partly because of the increase in task-based simulations. A review found that there is sufficient time for prepared candidates to complete the AUD and FAR sections.
     
  • Multiple-choice questions and task-based simulations each will contribute about 50% toward the candidate’s score in the AUD, FAR, and REG sections. In the BEC section, multiple-choice questions will contribute about 50% of the scoring, with 35% coming from task-based simulations and 15% from written communication.

In the past, multiple-choice questions were weighted about 60% in the total scoring of the exam. That will decrease to about 50% in the next exam.

“The profession is demanding stronger critical-thinking skills from newly licensed CPAs,” Decker said. “They need to be able to form conclusions in basic areas and identify issues in more complex and riskier areas. And, based on the feedback from our stakeholders, we have designed each of the exam sections based on a task and skill framework to meet those requirements.”

New blueprints for preparation
To prepare for the next exam, candidates will be able to use new blueprints that will replace the current Content Specification Outline (CSO) and Skill Specification Outline (SSO). The blueprints will provide candidates more detail about what to expect on the exam. The blueprints contain about 600 representative tasks, which are aligned with the skills required of newly licensed CPAs, across the four exam sections. The blueprints are designed to provide candidates with clearer information on the material the exam will test, and will show educators what knowledge and skills candidates need as newly licensed CPAs.

Continued in article

A Practice Analysis ---
http://www.aicpa.org/BecomeACPA/CPAExam/nextexam/DownloadableDocuments/2016-practice-analysis-final-report.pdf

 

Free CPA Review Course --- http://cpareviewforfree.com/
Not updated for recent changes in exam coverage

TUTORIAL AVAILABLE FOR NEW COMPUTERIZED CPA EXAM http://www.cpa-exam.org/ 

CPA Exam Slated for International Debut in August --- http://www.journalofaccountancy.com/Web/20113892.htm

CPA Experience Requirements Vary by State ---
http://www.becker.com/accounting/cpaexamreview/state/index.cfm  

For more details, check with your state's board of accountancy:


WileyCPAExamExcel:  CPA Exam Students’ Study Tips ---
http://blog.efficientlearning.com/cpa/cpa-exam-stories/cpa-exam-study-tips

How a 17-Year-Old Female Passed the CPA Exam ---
http://blog.efficientlearning.com/cpa/cpa-exam-stories/17-year-old-passed-cpa-exam

Crush the CPA Exam ---
https://crushthecpaexam.com/

Why Take the CPA Exam ---
 https://www.cpaexamguide.com/learn/cpa-exam-worth/


The Jr. Deputy Accountant finally got around to Texas:
"Don't Worry, We Didn't Forget Those Texas College CPA Exam Results," Adrienne Gonzalez, Going Concern, February 15, 2012 ---
http://goingconcern.com/post/dont-worry-we-didnt-forget-those-texas-college-cpa-exam-results

Jensen Comment
Even though I'm proud of the performance of Trinity University in 2011, once again I remind readers that there is much more variability among small universities like Trinity University that have so few CPA exam takers each year. The University of Texas at Austin is consistently at or near the top in Texas with low variability because it has a relatively large number of CPA exam candidates each year, and UT has relatively very high admission standards for the masters of accounting program. Trinity, on the other hand, is more likely to have good years and bad years due to small sample effects and loss of some of the best graduates (see below).

Because of Trinity has much higher tuition for an accounting masters degree than the state universities, there is some attrition of Trinity's four-year accounting graduates to the state universities, especially to the University of Texas at Austin. It was always sad to lose some of our best graduates to UT, but we knew UT would take good care of them.

Texas CPA examination performances are heavily impacted by SAT/ACT/GMAT exam scores of accountancy graduates. This is consistent with virtually all the other 50 states in the United States. Schools with the highest admission standards will have the higher performing graduates on average.

I don't attribute high CPA exam scores to curricula focused more heavily on teaching toward the CPA examination. When I left Trinity University, Trinity was experimenting with a CPA exam review course at the very strong request of accounting students in the masters program. I did not teach that course, but when I retired in 2006 the professor (Katherine Lopez) teaching the CPA review course was re-assigned to teach my Accounting Theory course. The CPA review course was dropped from the curriculum without having any adverse impacts on CPA exam performance of Trinity's graduates. I might add that when I taught Accounting Theory my students complained that the course really did not help them on the CPA examination. The topics covered (like accounting for derivative financial instruments, portfolio theory, risk metrics, financial structures, and securitization) are considered too complicated for the CPA examination ---
http://faculty.trinity.edu/rjensen/acct5341/acct5341.htm

We should not give too much credit to accounting faculty when their top students do well on the CPA examination. Because those students also are top performers in terms of SAT/ACT/GMAT exam scores, those students have more intellectual ability and motivation to get the most out of commercial CPA examination review courses like Becker, Bisk, Gleim, etc.


"Comparing CPA Review Courses," by Junior Deputy Accountant Adrienne Gonzalaz ---
http://goingconcern.com/2011/03/comparing-cpa-review-courses/#more-27710

We’ve gone over how to choose a CPA review course in the past but it seems we’ve been getting more emails than usual asking about specific review programs. Due to a potential perceived bias (this author was employed in CPA Review for four years), we have avoided covering this subject in detail until now.


The following list of review courses is by no means comprehensive and we do not endorse any of these courses (unless, of course, they would like to get in touch with our
advertising folks and set up a sweet deal to be pimped out). CPA exam candidates are highly encouraged to do their own research by checking blogs and forums. Coworkers can also be a good source of info but keep in mind colleagues are less likely than strangers on the Internet to be honest about their own performance so take any information you glean from them with a grain of salt.

Many have asked if additional supplemental products are necessary when dropping a big chunk of cash on CPA review. I generally tell candidates to save their pennies, get a $2 pack of index cards and make their own flash cards. Not only do you save money, by writing them out yourself you’ll actually see that you’re understanding the concepts better simply due to the mechanical motion of putting pen to paper.

We’ve included links to CPAnet where appropriate so you can check out actual candidate feedback (the positive and negative) which former students of each of these courses have posted on the forums there.

Becker: Retail Price: $3,065 (all four parts)
Per part if ordered individually: $990 (CPAnet)

CPAexcel: Retail price (Gold Medal option): $1690 (four parts) Per part if ordered individually: $580 (CPAnet)

• Kaplan, Gleim and Bisk: Considered self-study or supplemental, check CPAnet for feedback on these courses.

Roger: Retail Price: $2095 – $1695 (all four parts) Per part if ordered individually: $595 – $695 (CPAnet)

Wiley: Price varies based on options. (CPAnet)

Yaeger: Retail price: $1787 (four parts) Per part if ordered individually: $545 (CPAnet)

This is where our lovely GC readers come in. We know you all are really proud of how you’ve kicked the CPA exam’s ass, so please let us know in the comments what worked for you. If you all can get extra excited about this, we can put together a GC reader CPA review deathmatch based on your input.

Note: prices current as of 3/29/11 based on available information. If you have a correction, please get in touch.

 

Jensen Comment
This approach to comparing alternatives will make most accountics professors shudder. Can't you just imagine the course managers' contacting their "alumni" requesting that you send Going Concern raving reviews about their CPA Review "alma maters?"

Actually most any way I can think of to compare these coaching course alternatives makes me shudder. These coaching courses are often very important to some exam takers, but in every instance a coaching course is only one variable leading to success, and it's not an independent variable. It's a variable that interacts with many other factors in complicated and dynamic ways. I defy anybody in the real world to isolate its first-order plus its higher order impacts and to robustly extrapolate the findings to a person comparing these coaching course alternatives.

Firstly, exam takers may not know what factors really led to success when they took the CPA Examination and/or they may falsely attribute success to factors that in the grand scheme of things were truly less important. For example, coaching courses have a "recent-timing bias" in that they are the last big efforts to study for the exam when in reality the success may be largely attributable to some parts of undergraduate courses they took years ago.

Secondly, exam takers may attribute too much to things that don't necessarily differ greatly between coaching courses. Some exam takers attribute success to coaching courses that kick butt and force them to study a lot weekly. But since nearly all the coaching courses kick butt in one way or another, this hardly distinguishes the best butt kickers. Other exam takers attribute success to the coaching course "wizards" who successfully predicted what would be on a particular exam. But coaching courses may have varying success in this regard over time and with varying degrees of luck.

Thirdly, when education researchers compare different pedagogies among good students, the general finding is that there's no significant difference between one pedagogy versus another. Good students adjust to different instructors, different textbooks, different teaching methods, different coaching, etc. ---
http://faculty.trinity.edu/rjensen/assess.htm#AssessmentIssues

I think there are many ways coaching courses can be compared on the input side. I don't see a good way of comparing them on the output side. Also it's not at all clear to me that many students get what they pay for, although the fault for this may vary. Some coaching courses are overpriced in my viewpoint. Going for the most expensive course does not mean you get what you paid extra for to pass the exam.

Some things are probably more important than coaching courses. For example, how much time off does your employer give you to study for the exam and how efficiently do you make use of that free time? Do you have to study in hotel rooms more than you can study conveniently at home? Do you have to study for the exam while having to also bounce a child on each knee most of the time? WC Fields said there's only one good way to have kids --- cooked. How much do you really, really, really want to pass this exam? Are you really studying so intently that you have to change underwear six times a day? Are there too many outside distractions in your life such as excessive success or failure in your love life? Are you spending too much time pouring over Bob Jensen's AECM messaging?

When the Great Scorer at NASBA comes to write against your name, he writes if you won or lost, not how you played the game.

Educational Resources and Exams to Become an Accountant or CPA --- http://www.accountingedu.org/

Bob Jensen's threads on the CPA Examination are at
http://faculty.trinity.edu/rjensen/BookBob1.htm#010303CPAExam

Also see Test Prep Support ---
http://www.testprepsupport.com/test/cpa-exam/resources


"The Quickest 2011 CPA Exam Breakdown You’ll Ever Read," by Adrienne Gonzalez, Going Concern, September 24, 2011 ---
http://goingconcern.com/2010/09/the-quickest-2011-cpa-exam-breakdown-youll-ever-read/

Because we know all of you are very busy tearing up your last exams before CBT-e hits in January of 2011, we won’t waste your time and get right to the point. 2011 is coming, the exam is changing and though we’ve been over it plenty in the last several months, let’s go over it one more time.

Simulations – This year’s simulations are next year’s simlets. Simulation problems will be shorter, task-based problems that should take you about 10 – 15 minutes to complete as opposed to the 45 minutes they take now. AUD and FAR will have 7 smaller simulation problems while REG will have 6. As usual, not all of these are graded.

Multiple choice – BEC and REG will contain 24 MCQ per testlet while FAR and AUD will still contain 30. MCQ will make up 60% of the FAR, AUD and REG exams and 85% of BEC.

Research – if you’re taking the exam this year, research is buried in simulations and doesn’t carry much weight point wise. Next year, however, research will be its own tab worth as many points as any of the other simlet problems. FAR research will be easy as it is limited to the ASCs (Accounting Standard Codification) and REG will mostly draw from the Internal Revenue Code but AUD will come with a dropdown menu that includes PCAOB ASs, the Code of Professional Conduct and SSARS just to name a few. You’ve been warned.

Written communication – WC is out of FAR, REG and AUD and slapped into BEC. You’ll have to write three written communications, of which two will be graded.

International standards IFRS and international auditing standards will be added to current FAR and AUD content (respectively) while REG is mostly unchanged by this as you can’t really test international standards of federal taxation. Keep in mind that this additional content will most likely be gently mixed in with what is already being tested and does not make GAAP completely irrelevant so don’t use 2011 as an excuse to procrastinate all the way through the holidays.

Now stop wasting your time with inflammatory nonsense blogs and GET BACK TO STUDYING!

(btw: if you have a CPA exam question for us – anything from applying to qualifying to passing – do get in touch)

CPA Exam Guy --- https://cpaexamguy.com/

Bob Jensen's threads on the CPA Examination are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam

PS
Joe Hoyle and his former partners elected to make their commercial CPA Examination Review materials free online. I am contacting Joe to see if they intend to keep those materials up to date for future CPA examinations. A link to the Hoyle et al. free materials is provided at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam 

September 25, 2010 reply from Joe Hoyle

-----Original Message-----
From: Hoyle, Joe [mailto:jhoyle@richmond.edu]
Sent: Saturday, September 25, 2010 8:42 AM
To: Jensen, Robert
Subject: RE: Question for Joe Hoyle: The Quickest 2011 CPA Exam Breakdown You'll Ever Read
 

Hi Bob,

Hope this finds you well.   I just got through giving a bunch of tests last week (Intermediate Accounting II and Introduction to Financial Accounting) and, as always, some learned it all and some learned a lot less.   I am using my own new Financial Accounting textbook this semester.   As you may know, the book is written in an entirely Socratic Method (question and answer style).  I find that approach stimulates student curiosity much better than the traditional textbook which uses what I call a sermon or monologue style.   The Socratic Method has been around for 2,500 years -- isn't it strange that it has been ignored as a possible textbook model?  

I'm not a big fan of college education presently (that is college education and not just accounting education).   There are three major components to education:  professors, students, and the textbook (or other course material).  It is hard to change the professors and the students.   I think if we want to create a true evolution in college education in a hurry (my goal), the way to do that is produce truly better college textbooks.   I wish more college accounting professors would think seriously about how textbooks could be improved.  At the AAA meeting in San Francisco in August, I compared a 1925 intermediate accounting textbook to a 2010 intermediate accounting textbook and there was a lot less difference than you might have expected.   Textbooks have simply failed to evolve very much (okay, they are now in color).   It is my belief that textbooks were created under a "conveyance of information" model.   An educated person writes a textbook to convey tons of information to an uneducated person.   In the age of Google, Yahoo, Facebook, YouTube, and Wikipedia, I think the need to convey information is no longer so urgent.  I think we need to switch to a "thinking about information" model.  And, if that is the goal, the Socratic Method is perfect.   You can start off with a question like "Company X reports inventory at $500,000.  What does that mean?   Is it the cost or is the retail value?  And, if it is one, why is not the other?"  Accounting offers thousands of such delightful questions.

But, I digress -- you asked about CPAreviewforFREE.   We just finished our 117th week and it has been so much fun.   We had a person write in this week (on our Facebook page) to tell us that she had made three 99s and an 89.   Over the summer, we averaged about 300,000 page views per week.   That is page views and not hits but that is still a lot of people answering a lot of questions.

We are currently writing new questions for the new exam starting in 2011 including task-based simulations, IFRS, and written communications questions for BEC.   I personally think the exam will change less than people expect.   Currently, roughly 50 percent of the people who take a part pass that part.  I would expect that in January under the new CPA exam format, roughly 50 percent of the people who take a part will pass that part.   And, I would guess it will be almost exactly the same 50 percent.

However, to be honest with you, we are in the process of adding a subscription service.  I don't know if you ever go to ESPN.com but they give a lot of free information (Red Sox beat the Yankees last night 10-8) but they also have a subscription service where you can learn about things in more depth for a monthly fee (almost like a newspaper).   Our 2,100 free questions and answers will ALWAYS stay free.   But we found that people really wanted to have some content.   If they missed a question on earnings per share, for example, they wanted to know more about how convertible bonds are handled in that computation.   They didn't feel the need to pay $2,500 (don't get me started on what I think about that) but they wanted a bit more information.

To date, we have subscription content for FAR and Regulation.  Each is available for $15 per month which I think is a reasonable price (especially in a recession).   (As an aside, I have long felt that the high cost of CPA review programs keeps poor people out of the profession which I think is extremely unfair and even unAmerican.)    In our FAR content, for example, we have 621 slides that cover everything I could think of that FAR will probably ask about.   There are probably more slides in Regulation but I haven't counted them yet.   BEC and Auditing will be ready as quickly as possible.   When you have no paid employees, things only get done as fast as you can get them done.

Bob, I was delighted to see your name on my email this morning.   I'm actually in Virginia Beach on a 2 day vacation but decided I'd rather write you than go walk on the beach :).    If I can ever address more questions about textbooks, CPAreviewforFREE, or the Red Sox and the Yankees, please let me know.   As my buddy Paul Clikeman (who is on the AECM list) will tell you, I am a person of opinion.

Joe

See --- http://cpareviewforfree.com/


One site of possible interest for international accountants is the International Qualification Exam site ---
http://www.nasba.org/nasbaweb/NASBAWeb.nsf/wpeip?openform

 
However, you may have to have a higher CA credential for the IQEX, but it's worth a try.

Best states for International Student CPA Candidates ---
http://ipassthecpaexam.com/cpa-international-students/
Check for updates, however, because some of this information is outdated


Bisk Sites
Bisk CPA Examination Review
http://www.cpaexam.com/cpa-review-courses

Bisk Awards for Accounting Resources in 2012--- http://www.cpaexam.com/top-accounting-resources-2012  

cfo-coach.com - Helping CFO's Repackage, Position, and Land!

Dr.DavidKass - Commentary on Warren Buffett and Berkshire Hathaway.

360taxes.org -360 Degrees of Taxes is a public service site, designed by Certified Public Accountants and sponsored by the AICPA, offering tips and checklists to help you during tax season and with year-round tax planning.

accountingcoach.com - Changing the way people learn accounting.

BobJensonattrinity. BobJensenatrinity.edu - Daily entries, fraud updates, and insightful conclusions ( http://faculty.trinity.edu/rjensen/ )

financial-market-commentary.com - Financial commentary you can trust.

 


"The AICPA Talks to Going Concern About the New CPA Exam," by Jr. Deputy Accountant and often foul-mouthed Adrienne Gonzalaz, Going Concern, January 14, 2011 ---
http://goingconcern.com/2011/01/the-aicpa-talks-to-going-concern-about-the-new-cpa-exam/

Because I genuinely care about the well-being of you little CPA exam candidates out there, I recently put aside the inflammatory nonsense for a moment and took some time out of my busy schedule to chat with the AICPA about the new CPA exam that they were proud to say launched early this month without a hitch. We’re pretty excited about that too, mostly because it means we can finally stop talking about 2011 changes and get back to talking CPA exam strategy, which is largely unchanged as a result of CBT-e.

We here at Going Concern value reader input (even if we do value chastising said reader just as equally) and therefore reached out to get your input on the sorts of questions we should ask. You spoke and we listened so let’s cut right to the chase and give you some answers.

John Mattar, Ed.D., Director of Psychometrics and Research and Mike Decker, Director of Operations and Development, both of the AICPA Examinations Team, were kind and brave enough to speak with me and give me plenty of insight on the brain behind the new CPA exam.

First of all, we need to talk scoring as that’s the one thing you guys have complained about consistently since the exam went computerized in 2004 (except for written communication but that is an entirely different issue). We’re proud to tell you that we can finally say with certainty that the AICPA will not be changing the passing score from 75 moving forward. That’s right, put down your flaming pitchforks, all you 74s who were ready to flip should the score have been lowered to 70. “In terms of the score reported to candidates, right now the passing score on that reported scale is a 75 and it’s going to remain there because we want to have consistency over time,” John told us.

That means a 75 last year might not necessarily be the same as a 75 this year but a 75 is still passing and that’s what matters. As we all know, the AICPA uses a complicated and mysterious psychometric formula to determine weights for each question and bases a candidate’s score on this formula. It isn’t for you, little candidate, to worry about how they come up with their numbers nor should you feel as though the AICPA gets some sick thrill out of seeing you get a 74. Believe it or not, they’re neutral. They don’t care if you pass or fail, they only care about overseeing a professional examination that successfully tests the knowledge base of entry-level CPAs in the United States. That’s it.

Second, while the AICPA will be using a single score release formula for at least the first three testing windows of the year, candidates can anticipate a new and improved score release system that will hopefully be introduced by the end of the year. This means all candidates who test early in their window will be eligible to receive their scores in the first release and all other candidates can expect to receive their scores in more frequent batches through the end of that window’s blackout month. So forget the Wave 1/Wave 2 nonsense. “Due to a lot of the work we’re doing on the backend, we’re going to be able to release scores faster. We’re not actually going to be able to release the scores earlier until the 4th quarter because we need to do a greater analysis in the first three quarters,” Mike said. So while you guys see the new simulations and international content on the frontend, it’s important to remember that a lot of time and effort went into improving the backend of the CPA exam and faster scoring is one such improvement that we can expect to see by the end of the year. But these changes come at a price so be patient while the AICPA works through the first three windows of this year to finalize their new scoring process.

If you haven’t already, I recommend you check out How the CPA Exam is Scored for more details on this process. Expect an update to that document when new scoring takes effect later in the year.

As for CBT-e content, I initially congratulated the AICPA for finally streamlining some questionable areas of the exam (especially BEC) in the updated CSOs/SSOs but forgot that they don’t actually come up with content on their own. You can thank an extensive practice analysis and subsequent input from practicing CPAs for the CPA exam you know and love today, a process that takes into account input from the profession on what entry-level CPAs should know. That means the introduction of international financial reporting and auditing standards is entirely independent of the SEC’s do-we-or-do-we-not IFRS roadmap. This should be a comfort to some of you who are wondering just how much IFRS will appear on the exam in coming windows as it means the exam will most likely continue to test remedial international content and will mostly focus on major differences between IFRS and GAAP. Entry-level CPAs in the U.S. are not expected to be experts in IFRS, just as they are not expected to be experts in cost accounting, government accounting, non-profit accounting or any number of areas that have been consistently tested on the CPA exam for years now.

The best news is that though the e in CBT-e stands for evolution, those expecting to take the exam in 2012 or beyond shouldn’t expect such a large overhaul as we just saw any time soon. “We don’t plan to change the exam,” John said. “What we plan to do is keep the exam current with the profession to protect the public interest. If we do have significant changes in test content we would have to let candidates know in advance.”

That being said, the largest takeaway I got from my conversation with the AICPA was that they are simply interested in providing a consistent examination that continues to evolve to meet the needs of the profession. I swear to you that they really don’t get a sick thrill out of torturing you guys with changes, scoring delays and new content though it may appear that way sometimes, especially if you’re in the 74 x 3 club. It’s their job to make sure that the CPA exam represents the best interests of the profession, which means revising their strategy to keep up with the evolution of the industry.

We applaud the AICPA on a job well done and congratulate them for a successful CBT-e launch. So far, candidate feedback I have gotten on the new exam format has been mostly positive, which means that their hard work was totally worth it.

Bob Jensen's threads on the CPA examination are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam

Educational Resources and Exams to Become an Accountant or CPA --- http://www.accountingedu.org/


NASBA --- http://en.wikipedia.org/wiki/Nasba

 NASBA video that you may want to watch --- http://bit.ly/HowToBecomeACPA

"NASBA Gives Its Accounting License Library a Makeover," by Adrienne Gonzalez, Going Concern, July 23, 2010 ---
http://goingconcern.com/2010/07/nasba-gives-its-accounting-license-library-a-makeover/

For those of you that aren’t already aware, we implore you to check out NASBA’s incredibly useful Accounting Licensing Library – a comprehensive, continually-updated database that can help future CPAs find a state in which to be licensed and offers accounting firms access to important state data to assist in their efforts across state lines. In other words, the tool’s main goal is to facilitate mobility by bringing all 55 jurisdictions together in one easy-to-use area while offering a one-stop shop for those considering CPA licensure.

We recently got a chance to chat with NASBA General Counsel and Director of Business Development Maria Caldwell about the new ALL.


The new ALL tool features
a new section for accounting students, an enhanced state requirement comparison research tool and expanded product information. The refreshed ALL website offers the same features and benefits as the previous site in a more user-friendly format. Users can find detailed licensing information and even use their research tool to determine if their educational requirements meet any state’s licensure requirements without having to click through each state board’s website individually. This is huge for candidates and for NASBA, as it allows them to spend more time dealing with candidate issues and less time pointing candidates in the right direction.

The birth of the ALL actually began within NASBA four years ago as they wanted a single resource for internal use that would take each state board’s requirements and aggregate them into one place. “There really wasn’t one source to go to and look up all these different rules, so that was the impetus for putting the tool together,” Caldwell told us. “We wanted to offer it to firms at first but once it was out there we realized there were several different audiences using it. Students use it as a licensing tool and international candidates use it as well.”

With over 700 candidates accessing the tool per year (before the makeover) and a significant leap in CPA exam applications since the first whispers of an economic downturn in 2008, interest in the tool and CPA licensure does not appear to be waning any time soon.

Beyond the licensure aspect of the tool, the ALL gives both individuals and firms a way to improve their own economic outlooks by reaching across state lines to find clients. “In this kind of environment, the firms are looking to neighboring states if their state is suffering from a lack of business,” Caldwell said. The tool allows for mobility without firms wasting countless hours combing through state requirements and allows CPAs in a specialty practice to meet the needs of clients who may be in areas that lack qualified accountants who offer their specialized services.

As the CPA exam prepares to go international, NASBA is counting on increased interest in not only the ALL but the all-important CPA designation. Let’s face it, not every industry can say it has weathered the economic downturn as well as CPAs have and passing the exam is still considered a prestigious accomplishment across the globe.

Great job, NASBA, we definitely approve!

Bob Jensen's threads on passing the CPA Examination ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam

Educational Resources and Exams to Become an Accountant or CPA --- http://www.accountingedu.org/


How will IFRS affect the 2011 CPA Examinations?
If I Pass CPA Exam Parts in 2010, Will I Have to Pass Them Again in 2011?

Click Here
http://goingconcern.com/2010/06/if-i-pass-cpa-exam-parts-in-2010-will-i-have-to-pass-them-again-in-2011/#more-12870  

Bob Jensen's threads on accountancy careers
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


Skills and knowledge should be required as part of the pre-certification education of CPAs
Prompted by New York’s forthcoming adoption of the 150-hour requirement to sit for the CPA exam, the NYSSCPA’s Quality Enhancement Policy Committee drafted a white paper to encourage discussion on what skills and knowledge should be required as part of the pre-certification education of CPAs. This white paper, which was approved by the Society’s Board of Directors, is presented here, along with additional commentary from the NYSSCPA’s Higher Education Committee.
Quality Enhancement Policy Committee Sharon Sabba Fierstein, Chair, August 2008 --- http://www.nysscpa.org/cpajournal/2008/808/infocus/p26.htm

Mary-Jo Kranacher, Editorial, CPA Journal, August 2008 --- http://www.nysscpa.org/cpajournal/2008/808/essentials/p80.htm

Specific requirements for becoming a CPA, and the rights and obligations of a licensed CPA, are set forth in the laws and regulations of 54 United States jurisdictions --- http://www.cpa-exam.org/global/boards.html

NASBA Tools --- http://www.nasbatools.com/display_page
NASBA Resources (Includes documents and audio files on knowledge requirements) --- http://www.nasba.org/nasbaweb/NASBAWeb.nsf/wpmtp?openform

Free and Fee CPA Review Courses --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam

Bob Jensen's threads on accountancy careers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

"Pre-Med Education Must Be Compatible with Liberal Arts Ideals," by Timothy R. Austin, Inside Higher Ed, July 31, 2008 --- http://www.insidehighered.com/views/2008/07/31/austin

Also see http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#CatFights

 


Although you might not agree with some of Irv's opinions below, the announcement is important to note.

Irv probably knows more about accounting and flying (i.e., pilot) certification examinations than any other human being in the U.S.

Bob Jensen

-----Original Message-----
From: Irvin Gleim [mailto:irvin.gleim@gleim.com]
Sent: Tuesday, March 23, 2004 5:42 PM
To: Jensen, Robert
Subject: Major CMA Exam Changes Affecting Your Students

 

The IMA is making substantive changes to the CMA exam beginning July 1, 2004. The IMA will release a new exam this summer and will remain in 4 parts, although it will be significantly different than the prior exam. However, there is good news; the current exam (unchanged) will be available to your students until December 31, 2007, PROVIDED YOUR STUDENTS REGISTER FOR THE CURRENT CMA EXAM PRIOR TO JUNE 30, 2004.

The current CMA exam is an easier exam to prepare for and pass. Your students should consider pursuing the CMA either in place of the CPA or in addition to the CPA. The total cost to take the CMA as a student is $265; undergraduate students can take the exam, and there is not a 150-hour requirement.

An explanation of the reorganized CMA exam is available at http://www.gleim.com/accounting/cma/examnews/cmaexam.php

A comparison of the current (unchanged) CMA exam with the reorganized exam is available at http://www.gleim.com/accounting/cma/examnews/comparison.php

PLEASE RECOMMEND THE FOLLOWING TO YOUR STUDENTS:

A. Join the IMA for $35 (required to take the CMA exam) at https://www.imanet.org/forms/MembershipAppform1.asp

B. Decide which part to take first: See http://www.gleim.com/accounting/cma/examnews/passfirst.php

C. Register for the exam and pay $57.50 (which is 50% of the regular fee) per exam part. The $75 credentialing fee is waived for students. https://www.imanet.org/forms/examregform.asp

D. Purchase Gleim/Flesher CMA Review. Substantial discounts are available through Gleim's complimentary Academic Site License program. Call 800-874-5346, ext. 104 for details.

E. Study CMA Review books, software, and audios (approximately 40 hours) per part.

F. Take and pass each part.

G. Continue with any remaining parts and become a CMA and/or CFM.

Irv

Dr. Irvin N. Gleim
Gleim Publications, Inc.
P.O. Box 12848
Gainesville, FL 32604
352-375-0772, x.110
800-87-GLEIM, x.110
352-224-1310, direct
352-870-2742, cell
Fax 888-375-6940

http://www.gleim.com

June 23, 2004 message from Irv Gleim [irvin_gleim@gleim.com

The IMA will make substantial changes to the CMA Exam beginning July 1, 2004. These changes will include a new essay section that incorporates material from all four exam sections. In addition, CPAs will no longer be waived from the financial accounting and reporting material, and will instead be waived from economics and business applications topics.

However, there is good news; the current exam will be available until December 31, 2007, allowing plenty of time for completion. BUT, you must apply by June 30, 2004. In other words, APPLY NOW! Click the link below to open the online registration form.

https://www.imanet.org/forms/examregform.asp 

Gleim will continue to provide up-to-date materials throughout the current exam's duration. Gleim will also release a new edition for the revised exam this summer so that we will be able to meet all of your students' certification needs. You can view more information on Gleim's CMA Review and see how we will prepare your students to PASS by visiting the link below:

http://www.gleim.com/accounting/cma?lj062204


CPA Exam Information and Vendors

NASBA --- http://en.wikipedia.org/wiki/Nasba

 NASBA video that you may want to watch --- http://bit.ly/HowToBecomeACPA

 

NASBA 2008 Update:  120 Versus 150-Credit Hour Requirement to Become a CPA
There are now only two states that do not require 150-credits to become a CPA, with California being the largest jurisdiction
Most states require 150 credits to sit for the CPA examination, whereas a few states impose the 150-credit rule for licensure only

DRAFT Education and Licensure Requirements for Certified Public Accountants: A Discussion Regarding Degreed Candidates Sitting for the Uniform CPA Examination with a Minimum of 120 Credit Hours (120-Hour Candidate) and Becoming Eligible for Licensure with a Minimum of 150 Credit Hours (150-Hour Candidate) (120/150 Discussion), Issued by the National Association of State Boards of Accountancy (NASBA) , November 2008 ---
http://snipurl.com/150nasba  [www_nasba_org] 
 http://www.nasba.org/862571B900737CED/318CD757B9F57F75862574FA00763F36/$file/120_150_Paper_Draft_November_08.pdf

The above draft has quite a lot of data and provides extensive history of the 150-Hour Rule.

For a wider history see http://en.wikipedia.org/wiki/Uniform_Certified_Public_Accountant_Examination
Part of the above Wikipedia module was out of date, so I changed the Wikipedia module on December 13, 2008.

NASBA has some learning tools at http://www.nasbatools.com/display_page

Free CPA Examination Review Course --- http://cpareviewforfree.com/
AccountingWeb Student Zone --- http://www.accountingweb.com/news/student_zone.html 

For many students, the fee-based CPA Examination Review materials and courses are likely to get better results, especially those that force students to weekly stay on track and those that have multimedia helpers and those that meet onsite as a regular class.

Accounting Institute Seminars
Becker CPA Review
Bisk-Totaltape CPA Exam Review
Conviser Duffy CPA Review (now merged with Becker)
CPA Review Twin Cities
CPAexcel CPA Exam Review
Dynasty School
Exam Matrix (formerly Micromash)
Gleim Publications
Hoyle CPA Ventures (now free)
Intensive CPA Examination Review
Kaplan
Lambers
Mark's CPA Review
Person/Wolinsky CPA Review Courses
Rigos Professional Education
The Tutorial Group, Inc.
Wiley CPA Exam Review
Wise Guides

Bob Jensen's career helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

Online continuing education credit CPE programs for accountants

McGraw-Hill CPE Online from McGraw-Hill/Irwin at http://www.mhcec.com

CPEasy from Bisk Publishing at http://www.cpeasy.com

Insight CPE from Insight CPE at http://www.insight-cpe.com

Association of Government Accountants  
Continuing Education ---   http://www.agacgfm.org/education/index.htm 

CPE Internet from the University of Phoenix at http://www.cpeinternet.com/catalog/default.asp

Jouarnal CPE Online from Rutgers University at http://rarc.rutgers.edu:80

Best CPE (for tax only) from Hardwick Publications at http://www.bestcpe.com

ICPE from the Institute for Continuing Professional Education at http://www.icpe.com (No longer available for public access)

A review is provided in the Journal of Accountancy, November 1998, 59-62. Online Journal of Accountancy articles can be found at http://www.aicpa.org/pubs/jofa/joaiss.htm

 
Internet Companies Directory (A Partial Listing)
COMPANY DESCRIPTION URL

e-Retail (consumer products and services)

1-800 Contacts Contact lenses http://www.1800contacts.com/
Alloy Online Goods for teens http://www.alloy.com/
Amazon.com Books, music, electronics http://www.amazon.com
Autobytel.com New, used car guide http://www.autobytel.com/
Barnesandnoble.com Books, music http://www.barnesandnoble.com/
Drugstore.com Medical products http://www.drugstore.com/
eBay Auctions http://www.ebay.com/
Egghead.com Computer products http://www.egghead.com/
Expedia Travel planning http://www.expedia.com/
Hotel Reservations Network Discounted hotel rooms http://www.180096hotel.com/
Priceline.com Travel reservations http://www.priceline.com/
Stamps.com Postage http://www.stamps.com/
Ticketmaster Guides, tickets http://www.ticketmaster.com/
Travelocity.com Travel reservations http://www.travelocity.com/
e-Finance (banks, brokerages and credit companies)
Ameritrade Securities broker http://www.ameritrade.com/
Charles Schwab Securities broker http://www.schwab.com/
CSFBdirect Securities broker http://www.csfbdirect.com/
E-Trade Securities broker http://www.etrade.com
IndyMac Bancorp Mortgage lender http://www.indymacbank.com/
Intuit Personal finance info http://www.intuit.com/
NetBank Consumer banking http://www.gefn-compubank.com/
NextCard Consumer credit http://www.nextcard.com
TD Warehouse Securities broker http://www.tdwaterhouse.com/
Wit SoundView Securities broker http://www.witsoundview.com/
e-New Media (advertising/subscription-supported media)
AOL Time Warner Consumer content http://www.aoltimewarner.com/
Ask Jeeves Search engine http://www.ask.com/
Cnet Networks Technology content http://www.cnet.com/
HomeStore.com Real estate content http://www.homestore.com/
HotJobs.com Career content http://www.hotjobs.com/
InfoSpace Wireless content http://infospace.com/
MarketWatch.com Financial content http://cbs.marketwatch.com/
McAfee.com Computer protection http://mcafee.com/
MP3.com Music content http://www.mp3.com/
Multex.com Financial content http://www.multexusa.com/
NBC Internet Consumer content http://www.nbci.com/
SportsLine.com Sports content http://sportsline.com/
Terra Lycos Consumer content http://www.terralycos.com/
TheStreet.com Financial content http://www.thestreet.com/
Apollo Group U of Phoenix Online Education content http://www.ipopros.com/histdeal_pla.asp?deal=2285
Yahoo Web guide http://www.yahoo.com/
e-Access providers (connections to the Internet)
Aether Systems Wireless Internet access http://www.aethersystems.com/
Excite At Home Internet access http://www.excite.com/
EarthLink Internet access http://www.earthlink.net/
Juno Online Services Internet access http://www.juno.com
Metricom Wireless Internet access http://www.metricom.com/
IMPORTANT NOTICE:
Please be advised that Metricom has filed for Chapter 11 bankruptcy protection.
NetZero Internet access http://www.netzero.net/
Prodigy Communications Internet access http://www.prodigy.com/
RCN Internet access http://www.rcn.com/
Research in Motion Wireless Internet access http://www.rim.net/
WorldGate Communications Internet access http://www.wgate.com
e-Learning providers (corporate) For more details go to http://faculty.trinity.edu/rjensen/000aaa/0000start.htm 
Caliber Training and executive dev. http://www.caliber.com/ 
Pensare Executive development with plans for degree programs in partnership with prestige universities http://www.pensare.com/ 
UNext Executive development and for-credit programs through UNext's Cardean University and in partnership with prestige universities http://www.unext.com/ 
Smart Force Executive development http://www.smartforce.com/ 
Quisic Content development, executive development, and for-credit courses http://www.quisic.com/ 
(Formerly called University Access)
Headlight (From CyberU) Recreational learners and an online small business training center http://www.cyberu.com/training/headlight/index.asp 
OnlineLearning.net Training and executive development and for-credit courses http://www.onlinelearning.net/ 
University of Maryland University College Training and executive development and for-credit courses http://www.umuc.edu/ 
Fathom (headed by Columbia University in conjunction with many prestigious partners)  A huge knowledge portal that offers over 600 courses http://www.fathom.com/index.jhtml 
New York University Online Training and executive development and for-credit courses http://i5.nyu.edu/~jmm282/nyupage.html 
University of Phoenix Training and executive development and for-credit courses (The largest accredited private university in the world.) http://www.phoenix.edu/index_open.html 
The Kaplan Colleges Training and executive development and for-credit courses (including the online Concord School of Law) http://www.kaplancollege.com/ 
Sylvan Learning Systems Training and executive development and for-credit courses (and testing centers) http://www.sylvan.net/ 
Intellnex from Ernst & Young (the first Big 5 accounting firm university) Training and executive development http://www.intellinex.com/flash/index.htm 
Many other corporate providers are discussed in a book that can be downloaded free:
The Business of Borderless Education, by S.C. Cunningham, et al., (Australian Department of Education, Evaluations and Investigations Programme of the Higher Education Division, 2000).  Hard Copy ISBN 0 642 44446 3 and Online Copy ISBN 0 642 44447 1 --- http://www.detya.gov.au/archive/highered/eippubs/eip00_3/bbe.pdf 

Bob Jensen's documents on e-Learning are available free at http://faculty.trinity.edu/rjensen/000aaa/0000start.htm 
(Note that most prestige universities have already or are forming private corporations for online delivery of training, executive development, and for-credit courses)

Bob Jensen's other bookmarks are at http://faculty.trinity.edu/rjensen/bookbob.htm 

 

Miscellaneous Accounting Education

Jim Hasselback's On-line Accounting Faculty Directory
Jim Hasselback's On-line Accounting Faculty Directory (Prentice-Hall Web Site)
Gerald Trite's great set of links --- http://iago.stfx.ca/people/gtrites/Docs/bookmark.htm 
Accounting Journals Index
Innovation in Accounting Education Award 1999 Submissions to the American Accounting Association
(I will review some of these documents in future editions of New Bookmarks)
http://www.rutgers.edu/Accounting/raw/aaa/facdev/teaching/awardsub.htm

AICPA Professor/Practitioner Case Development Program
Please be informed that the winning case materials (student notes only) are now available on the Institute Web site at http://www.aicpa.org/members/div/career/edu/caseidx.htm.

Dennis Schmidt's Accounting and Tax Guides
Prentice Hall Online Gallery
Bob Jensen's Links
e-Commerce and e-Business Helpers for Accountants ---  
      http://faculty.trinity.edu/rjensen/ecommerce.htm 
accounting history
AICPA Home Page
AICPA The Vision Process
Featured Applied Ethics Web Site
The AICPA Issues Business Fraud Case Studies --- http://www.aicpa.org/antifraud/spotlight/030409_cases.asp
Tax and Accounting Sites Directory
Rutgers Accounting on the Web Mailing List WWW Gateway
World-WideGraduate School Directory
WELCOME TO THE CPA VISION PROJECT!
Arthur Andersen - History of Accounting
Home Page for MicroMash
Chapters (Internet Guide for Accountants by Kogan, Sudit, and Vasarhelyi)
Accounting, Management and Information Technologies
ANet Home Page
ANet Australia home (International Accounting Network)
CUSI at Pacioli
Ernie. Your online business consultant.
http://www.isworld.org/isworld.html
International Accounting Network - Hawaii
Rutgers Accounting Web Introduction
The Nordic Accounting Network
US University's Accounting Departments
School of Accountancy (U. of Waterloo)
Weatherhead School of Management
Yahoo! - Education:Higher Education:Colleges and Universities
Accounting Education Using Computers and Multimedia

CPA ListServ

A Forum for Accountants (Click on Forums)

Howard Schilit wrote a (1993) book called "Financial Shenanigans: How To Detect Accounting Gimmicks & Fraud in Financial Reports". He has since opened a web site at http://www.cfra-online.com/  . You can compare prices on his book at by entering the ISBN number 0070561311 at http://isbn.nu/ 

Where can you find a great listing of accounting journals?  Try http://www.csu.edu.au/anet/research/index.html 

Associations in Accounting Education ---- See Accounting, Accounting Profession and Issues

Accounting Profession and Issues

Accounting Software

 

"Technology 2012 Preview: Part 2 Experts explore hot topics in software, hardware, security, social media and video," by Jeff Drew,  Journal of Accountancy, December 2011 ---
http://www.journalofaccountancy.com/Issues/2011/Dec/20114544.htm

"Technology 2012 Preview: Part 1 Experts explain what should be at the top of your tech wish list for the new year,"  by Jeff Drew,  Journal of Accountancy, November 2011 ---
http://www.journalofaccountancy.com/Issues/2011/Nov/20114310.htm

 


Software Buying and Use Guides
 
 SMB Finance and Accounting Checklist
What a great site Saeed. Thank you.

Great accounting software guide --- http://en.wikipedia.org/wiki/Accounting_software

On the personal financing and investment side of things, I like the following link:

"The Best Online Tools (software, services) for Personal Finance," The Wall Street Journal, June 8, 2009 --- http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm


WebFilings for SEC and XBRL Reporting (Object Oriented Database) --- http://www.webfilings.com/

For SEC reporting professionals, WebFilings is a revolution in collaboration software for regulatory compliance, delivering the only complete, integrated solution to meet SEC reporting requirements.

Jensen Comment
Note the XBRL tab --- http://www.webfilings.com/xbrl

AccountingWeb's 2009 Tax Software Review for Professionals, November 2009

Featured Tax Software

·         ATX

·         CrossLink

·         Drake

·         GoSystem Tax RS

·         Great Tax

·         Intuit ProLine Lacerte Tax

·         Intuit ProLine ProSeries

·         Intuit ProLine Tax Online Edition

·         Orange Tax Suite

·         ProSystem fx Tax

·         TaxACT

·         TaxWise

·         TaxWorks

·         UltraTax CS

Bob Jensen's taxation helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


Bob Jensen’s small business helpers are at
http://faculty.trinity.edu/rjensen/BookBob1.htm#SmallBusiness

 
 

"The Best Online Tools (software, services) for Personal Finance," The Wall Street Journal, June 8, 2009 --- http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

1. Budgeting Your Money

2. Creating a Financial Plan

3. Tracking Investments and Getting Advice
4. Checking for Fraud
5. Keeping Track of Credit
6. Managing Loans

Details at http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

Bob Jensen's helpers for personal finance ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

Bob Jensen's threads on Accounting Software ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

 

Software Buying Guides
 SMB Finance and Accounting Checklist


"A New Alternative for Taking and Sharing Notes: 3Banana Notes," by Mark Sample, Chronicle of Higher Education, September 9, 2010 ---
http://chronicle.com/blogPost/A-New-Alternative-for-Taking/26761/?sid=wc&utm_source=wc&utm_medium=en

In my recent ProfHacker guide to 5 Android Apps I Can't Live Without, there was one seemingly obvious mobile application missing from my list: Evernote, which has gotten a lot of attention on ProfHacker. That wasn't an oversight on my part. I rarely use Evernote, for many reasons: I don't like the way it locks up my data, the desktop client is distractingly cluttered, and both the Apple and Android app interfaces are forgettable and unintuitive. And then there's Evernote's firepower. It's too much application for my purposes. I don't know about you, but I don't need my grocery shopping list tagged with keywords and filed away in notebooks. Bloated with features, Evernote is simply not useful for quick and dirty notes.

What I use instead is 3Banana Notes, an application available for iPhone and Android devices, powered in the cloud by Snaptic.com. Besides being oddly named, 3Banana is free, ad-free, incredibly lightweight, but powerful enough to corral the bits and pieces of my information stream—and then share them when needed.

Here's what you see when you open the application (I'm demonstrating the Android version, but its iPhone counterpart is nearly identical.

Continued in article


Business Technology from Business Week Magazine --- http://bx.businessweek.com/business-technology/

The Journal of Accountancy has a great monthly technology section (with particular focus on things you never, ever thought you could do with MS Office, particularly Excel) --- http://www.journalofaccountancy.com/
The Q&A modules are particularly informative and should be centralized in one place in addition to monthly editions.

Bob Jensen's threads on education technology --- http://faculty.trinity.edu/rjensen/000aaa/0000start.htm


The Business / Accounting section of The New York Times dedicated to College focus. Links to articles involving accounting and auditing issues. http://college.nytimes.com/guests/directory/Business/Accounting/

 

"So you want a new desktop accounting package?" by David Carter, AccountingWeb, June 5, 2007 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=103569

David does not mention my oft-preferred alternative of a Webledger system (such as NetSuite) that can be accessed at a range of needs and sizes and prices with some huge advantages over installing accounting software on your own hardware --- at http://faculty.trinity.edu/rjensen/Webledger.htm

 


"Users Grade Tax Software," by Stanley Zarowin, Journal of Accountancy, October 2007 --- http://www.aicpa.org/pubs/jofa/oct2007/tax_software.htm

2008 Professional Tax Software as Listed in a November 7, 2008 Accounting Web Newsletter

Featured Tax Software

From the Journal of Accountancy Smart Stops on the Web in 2008

A TAX TOOLBOX
www.irs.gov/taxpros/article/0,,id=118004,00.html
This Smart Stop from the IRS provides a host of basic tools for tax professionals, handily compiled onto one page for easy access. The information ranges from recent tax law changes to standards of practice and Circular 230 information to the contact info for the Taxpayer Advocacy Panel (see “The Taxpayer Advocacy Panel: An Opportunity to Collaborate With the IRS,” JofA, Sept. 08, page 68). The page contains a host of publications on representing clients before the IRS, as well as requesting client transcripts and copies of their tax returns. Also look under “IRS Collection Tools and Your Clients Rights” for rules on representation and disclosure and Offer in Compromise guidelines.

HOMEBUYERS TAKE NOTE
www.federalhousingtaxcredit.com
Visit this new site from the National Association of Home Builders for an overview of the Housing and Economic Recovery Act of 2008, which authorizes a tax credit for qualified first-time buyers purchasing homes before July 1, 2009. The “Frequently Asked Questions” page answers both general and technical questions regarding the credit, or click on “The Law’s Other Provisions” to go beyond the act’s tax credit provisions and learn about its implications for property taxes, mortgage revenue bonds and Federal Housing Administration modernization. If you’re still looking for information, the “Home Buyer Resources” page hosts a list of links to helpful government Web sites, including state and local homebuyer assistance programs.

 


Small Business Accounting Software (Simple Solutions promotional video) ---
http://www.youtube.com/watch?v=30CcqXrM8ug

For small and medium sized businesses I recommend looking into Webledger alternatives ---
http://faculty.trinity.edu/rjensen/webledger.htm


PKL Accounting Education Software (for a fee) --- http://www.pklsoftware.com/

Hello Professor Jensen

When you log into www.pklsoftware.com  you are at the home page of PKL. All of the products listed are currently available for a professor to choose. To view any product just click on the product button. To log into view a product, just enter Anonymous as your ID/Name and Anonymous as your Password.

All products are web-based, will run on any computer. They include:

1. Practice sets at three different levels: Middle of Financial, End of Financial, Cost, Managerial, or Intermediate

2. Work4Me Problems: Twenty individual business problems emphasizing key topics of Financial Accounting

3. Accounting Coach: Twenty-five Financial Accounting topics (algorithmic problems) that instruct, coach, teach, and test a students skills.

I would be honored if you would allow me to save you a great deal of time by joining me, at your convenience, in a short, WebEx demonstration of how our key products work for professors and their students. With a WebEx demonstration, you sit at your computer, dial into our toll-free conference call line, and you will be looking at my screen while we talk about all of the many features we now have included in our new products. This will give me the opportunity to answer all of your questions.

The professors at Trinity were very excited about what I showed them and like 95% of our demonstrations, they adopted one of our products.

A short look at a practice set, will give you a good picture of how our software works for all of the practice sets and the Work4Me problems.

Seeing how our Accounting Coach helps a student practice, learn, and then evaluate themselves on multiple Financial topics will give you another view of what we have put together.

In a nutshell, we have a great set of products, we just need to get the work out and we are working hard to do that. In two weeks we will start our Spring semester and over 550 students will be using one or more of our products.

Let me know if you like to see our work or if you would like a professor registration code for any product.

Keith Weidkamp
Sierra College

PKL Software

Bob Jensen's threads on accounting education software are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#software


Investment Club Software ---
http://en.wikipedia.org/wiki/Investment_club_software

An Investment Club Helper Site ---
http://investmentclubsonline.com/result.php?Keywords=Investment%20Clubs
Note that investment clubs should understand state and local tax laws regarding investment club returns and liquidations.


From the Scout Report on February 25, 2011

Mint --- http://www.mint.com/026d/ 

Many people like to keep tabs on their finances, and the Mint program may prove to be quite useful for those looking for such a resource. After signing up, the program can incorporate financial information from a variety of sources to make it all accessible in one place. The program also works on mobile devices, and users can see what's happening with their budget and financial goals. This program is compatible with all operating systems.

 


"Online Accounting Tools Still Come Up Short," Rob Pegararo, The Washington Post, May 22, 2008. Page D03 --- Click Here

Few types of desktop software should be readier for replacement by the Web than personal finance.

The concept behind these programs is sound: Track your income and expenses through automatic downloads from banks, credit card issuers and other financial institutions to show where your money's coming and going, and how much of it you're likely to have later on.

But the market long ago calcified into a duopoly of programs, Intuit's Quicken and Microsoft's Money. As they've piled on the features, their usability has suffered. Many users, fearing an ordeal of bookkeeping, avoid them entirely. Those who have bought either program have been forced to ante up for new versions, at $15 to $90 each, when "sunset" policies cut older releases off from account-data downloads.

It might seem that a simpler, cheaper alternative to these programs would have emerged on the Web, now that online shopping and bill payment have made people comfortable with managing money online. But the big Web companies have yet to craft such a thing.

Fortunately, the absence of a shiny new Web application from Google or Yahoo doesn't mean the absence of hope for online alternatives to Quicken and Money. It may just mean you'll have to wait longer to find one that suits you.

The most visible Web competitor so far has been the free Mint ( http://mint.com). Since its launch last fall, this Silicon Valley start-up has drawn 266,000 users, though founder Aaron Patzer did not say how many visit the site regularly.

Quicken or Money vets may find Mint insultingly simplistic. It only links to banks, credit cards and investments and ignores most people's biggest debts (mortgages and car loans) and assets (homes and vehicles), making net-worth estimates impossible.

Using Mint requires you to trust the site to safeguard your bank usernames and passwords, which you must save there before adding any accounts. You can't enter transactions by hand or upload Quicken or Money files. And you can't reconcile transactions against a monthly statement.

But within those limits, Mint provides soothingly simple money-management tools.

When tested with a bank account, two credit cards and three mutual funds, Mint automatically fetched the latest data, converted most gibberish in these accounts' downloads into real names and filed most entries in the right category. For example, a credit card charge to "WHOLEFDS ARL 10042 0ARLINGTON" became "Whole Foods," listed under "groceries."

It was even smart enough to split fees on ATM withdrawals into separate expenses.

Mint then broke down patterns of income and expenses into easy-to-read pie charts.

Mint aims to make money by suggesting better financial services, then collecting commissions. But its advice to drop an American Express card for a Chase Visa ignored the AmEx card's cash rebate.

Two other sites have begun grabbing users as well. The free Wesabe ( http://wesabe.com), an older Silicon Valley start-up, acts like a money-minded social network.

It makes the collective wisdom of its users part of its source code, comparing your spending and earning with the averaged habits of more than 100,000 other "Wesabeans." It also relies on their accumulated input to refine and sort statement entries and offer tips about better deals near you.

But Wesabe may need more users (at least near Washington) to do those jobs well. Most downloaded transactions came through in their original, cryptic bankspeak, and some tips showed a Bay Area bias.

This site's free-form system of tagging, in which you can slap multiple categories onto a single transaction, also yielded duplicate entries in its spending summaries.

Wesabe (which plans to underwrite its free service with a fee-based "pro" option) is even more limited than Mint. It couldn't connect to a Bank of America Visa credit card account, and it doesn't do investments or home or car loans.

In Wesabe's favor, it offers free Mac and Windows uploader programs that keep your account logins on your computer and offers multiple ways to get your data off the site. It even posts a toll-free number that you can call to reach its chief executive each afternoon.

Wesabe may appeal most to extroverts with specific financial goals who can easily set targets and solicit fellow users' advice in its forums.

One of the newest Web-based personal finance tools comes from Intuit, which in January launched the $2.99-a-month Quicken Online ( http://quickenonline.com). Although this site isn't as slick or quick as Mint or Wesabe, it supports investments and mortgages, not just banks and credit cards.

Unlike Mint and Wesabe, it also lets you add coming transactions -- no risk of forgetting the check you wrote to your contractor-- and set bill-payment reminders.

Some basic features, such as transaction breakdowns and the ability to upload Quicken files or download data from the site, still aren't there. But its simplicity makes the gridlocked complexity of desktop Quicken look painfully obsolete.

These sites and other competitors promise tantalizing upgrades. For example, Mint says it will soon add mortgages, with estimates of home values from Zillow.com or another assessment source.

With such improvements, some smart borrowing (picture Mint's interface plus Wesabe's social smarts) and a solid record of security, Web personal-finance software could become an alternative along the lines of Web e-mail. Some people might never accept such a thing, but others wouldn't think of using anything else

Jensen Comment
Pegararo failed to research online complete Webledger systems such as Net Suite and other important sites that will not only perform accounting functions, manage inventories, manage receivables, perform financial analyses, and do all sorts of sophisticated financial analyses. These Webledger systems will also store accounting records so they can be accessed all over the world and allow users to avoid paying for expensive hardware/software technical support, backup systems, and consultants --- http://faculty.trinity.edu/rjensen/Webledger.htm

Pegararo also fails to mention many of the personal finance Web options and small business accounting options:

http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness

Pegararo might not have found the Web options coming up short if he'd done more research for the above article.


Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/
Richard Campbell uses and likes these practice sets --- Richard Campbell [campbell@RIO.EDU]


Maple's Document Management System

October 30, 2008 message from Scott Bonacker [lister@BONACKERS.COM]

This came as part of a subscription to a technology newsletter, I haven't tried this product myself.  Scott Bonacker CPA, Springfield, MO]

As an IT professional, chances are good that you have lots of detailed information that you have to keep track of in order to do your job effectively and efficiently. You probably have a multitude of documents stored in a multitude of folders on your hard disk. Using a series of documents and folders to store all your information is a pretty logical way of doing things, especially when used in combination with Vista’s Search tool and Saved searches feature, keeping track of all that information is pretty easy. However, it could be better — especially if all that information could be made available in one place.

Well, I recently discovered a very nice document manager called Maple from Crystal Office Systems that runs perfectly on Windows Vista and produces what is essentially a document database. In this edition of the Windows Vista Report, I’ll introduce you to Maple and show you how to use it manage your document collection.

This blog post is also available in the PDF format in a TechRepublic Download.

Getting Maple

You can download Maple from the Crystal Office Systems Web site. Once you download it, installation is a snap and you’ll be ready begin creating you custom document database in no time. You can download and try Maple for 30 days at no cost. A single-user license is $21.95.

When you access the Crystal Office Systems Web site, you’ll also notice that there is another version of this document manager called Maple Professional, which provides a set of advanced features. You’ll also find free reader called Maple Reader that will allow other users to view any document database created with either Maple or Maple Professional.

 

Read the rest at http://blogs.techrepublic.com.com/window-on-windows/?p=802&tag=rbxccnbt

Bob Jensen's threads on accounting software are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

Bob Jensen's threads on tools and tricks of the trade are at http://faculty.trinity.edu/rjensen/000aaa/thetools.htm


Software Advice --- http://www.softwareadvice.com/


PWC Technology Forecasts --- http://accounting.smartpros.com/x62913.xml
Also see http://www.pwc.com/extweb/home.nsf/docid/C52206CB07A55CA385257460004DAF19


Newer software tools (in 2007) for financial analysis --- http://www.aicpa.org/pubs/jofa/nov2007/financial_analysis.htm

THE PRODUCTS
ACCPAC CFO (Comprehensive Financial Optimizer) is designed for small and medium-size enterprises and can help make business-planning decisions by modeling the impact of various options. This is accomplished by demonstrating the what-if outcomes of small changes. A roll forward feature prepares budgets or forecast reports in minutes. The program also generates a financial scorecard of key financial information and indicators.

Customized Financial Analysis by BizBench provides financial benchmarking to determine how a company compares to others in its industry by using the Risk Management Association (RMA) database. It also highlights key ratios that need improvement and year-to-year trend analysis. A unique function, Back Calculation, calculates the profit targets or the appropriate asset base to support existing sales and profitability. Its DuPont Model Analysis demonstrates how each ratio affects return on equity.

Financial Analysis CS reviews and compares a client’s financial position with business peers or industry standards. It also can compare multiple locations of a single business to determine which are most profitable. Users who subscribe to the RMA option can integrate with Financial Analysis CS, which then lets them provide aggregated financial indicators of peers or industry standards, showing clients how their businesses compare.

iLumen regularly collects a client’s financial information to provide ongoing analysis. It also provides benchmarking information, comparing the client’s financial performance with industry peers. The system is Web-based and can monitor a client’s performance on a monthly, quarterly and annual basis. The network can upload a trial balance file directly from any accounting software program and provide charts, graphs and ratios that demonstrate a company’s performance for the period. Analysis tools are viewed through customized dashboards.

PlanGuru by New Horizon Technologies can generate client-ready integrated balance sheets, income statements and cash-flow statements. The program includes tools for analyzing data, making projections, forecasting and budgeting. It also supports multiple resulting scenarios. The system can calculate up to 21 financial ratios as well as the breakeven point. PlanGuru uses a spreadsheet-style interface and wizards that guide users through data entry. It can import from Excel, QuickBooks, Peachtree and plain text files. It comes in professional and consultant editions. An add-on, called the Business Analyzer, calculates benchmarks.

ProfitCents by Sageworks is Web-based, so it requires no software or updates. It integrates with QuickBooks, CCH, Caseware, Creative Solutions and Best Software applications. It also provides a wide variety of businesses analyses for nonprofits and sole proprietorships. The company offers free consulting, training and customer support. It’s also available in Spanish.

ProfitSystem fx Profit Driver by CCH Tax and Accounting provides a wide range of financial diagnostics and analytics. It provides data in spreadsheet form and can calculate benchmarking against industry standards. The program can track up to 40 periods.

 


Free General Ledger Software (Accounting) --- http://www.responsive.co.nz/


TURBOCASH OPEN SOURCE ACCOUNTING SOFTWARE --- http://www.turbocashuk.com/
 

New and enhanced features in QuickBooks 2010 ---
http://www.accountingweb.com/topic/technology/new-and-enhanced-features-quickbooks-2010


39 Free QuickBooks Online Tutorials ---
http://fitsmallbusiness.com/free-quickbooks-online-tutorials/
Thank you Crystalynn Shelton and Kristian Rivera --- |
http://fitsmallbusiness.com/category/accounting/


Profiles of Software Systems and Tools --- http://www.p2pays.org/ref%5C01%5C00047/00047d.htm


RiverGuide provides in-depth profiles, comparisons, and reviews of accounting software products, and would be a valuable resource for users of your site --- http://www.softwareadvice.com/construction/


Accounting Software Ratings

May 2, 2007 message from Jessica Valdes

I am writing on behalf of CTSGuides.com, which is a site that lists accounting software reviews and ratings.  We only list qualified companies that are upstanding and reputable.  This will be a good resource to add to your site for accounting companies that are in search of vendors who offer accounting software.  I would like to know if you'd be interested in adding our link to your site.

Please review this information and let me know if you are interested in such a relationship with our company. If I have contacted you in the past, my apologies.

Title - Accounting Software Reviews and Ratings
URL -
http://www.ctsguides.com/accounting-software.asp
Description - Free portal of reviews and ratings of accounting software to help companies consider options for selecting new software.

Thanks and best regards!

Jessica Valdes

jessica@ctsguides.com
CTSGuides.com


"Top Technologies for Accounting Pros Announced," SmartPros, June 11, 2007 --- http://accounting.smartpros.com/x57964.xml


People looking for accounting and management software often forget about the wonderful Webledger alternatives where a heavy duty IT system is maintained in a central location by the software system vendor such that  users can access the system on the Web and do not need their own hardware, software, and expensive maintenance technicians. Webledger systems have excellent backup computer and power systems such that the chances of going down are almost zero except in nuclear war.

My favorite Webledger alterntive is NetSuite at http://www.netsuite.com/portal/home.shtml
NetSuite commenced under the name NetLedger with financing from the CEO of Oracle. For all practical purposes it is an Oracle company.

Bob Jensen's Threads on Webledgers for Distributed Network Computing of Accounting Systems and Business Services  http://faculty.trinity.edu/rjensen/webledger.htm
The above site is not one that I actively update. Hence, some of the links may be broken and their may have been some buyouts and mergers that I've not tracked in the past year or two.


Retail Software Comparisons --- www.softwareadvice.com/retail
The new link should go to: http://www.softwareadvice.com/retail/


Former accounting professor Tom Selling (Dartmouth, Wake Forest, SEC, and Thunderbird) started the Grovesite Software Company ---  http://www.grovesite.com/


Formal Comparison of Accounting Software Packages

March 1, 2006 message from David Fordham, James Madison University [fordhadr@JMU.EDU]

Ruth Bender asked: "...more broadly, how should she start looking for the right package?"

One of the best tools I've ever come across for evaluating commercial accounting software packages is called "The Accounting Library", by a company out of Richmond Virginia called "Solutions, Inc."

The Accounting Library software covers well over 150 different commercial accounting packages. It includes ALL levels of software, from Quickbooks (at the very bottom of the product line), all the way up through SAP (the top). While 150 doesn't sound like a large number, believe me, it has everything you've ever heard of, and more.

What you do is, you answer a set of questionnaire-like questions dealing with the nature of your business and what you want your accounting package to do for you. The questionnaire can be quick-and-dirty, or extremely complex, depending on whether you are evaluating on behalf of Mom-And- Pop's Hotdog Stand, or Boeing Aircraft Corporation. You can spend weeks answering the full questionnaire if you want to. yes, it covers currency conversions (about 90 ways to Sunday as they say), analysis of just about everything (sales, costs, by product, by client, by sales rep, by the kitchen sink, etc.), and just about anything else you can think of.

After telling The Accounting Library about your business nature and what you expect the accounting package to do for you, TAL will then rank those products which meet or come close to your specs. You can then "drill down" into the ranking to find out WHY one package was rated higher than another, to find out which features you need that are or are marginally met in each package, etc. You also have the opportunity to reconsider your initial answers -- for example, during the drill-down exercise, you may decide that perhaps keeping track of subassemblies by date-manufactured isn't quite as important as you originally ranked it, or that maybe you need to generate an "aged inventory by serial number" report after all. You can then alter your original input, and re-run the evaluation.

I used TAL back when I was teaching the systems analysis classes, because it walks the students through a good "user needs analysis"... albeit in checklist form (I had to add a lot of meat to explain rationales, etc. and thus I used TAL as a support tool rather than a concepts tool.)

What's more, the product has a fantastic "introduction to accounting software", gives product descriptions and summaries of capabilities, etc. -- in general it's just a fantastic learning tool for comparing the many commercial- grade accounting packages out there.

The latest editions are also aimed at consultants who help companies procure and install software.

You might want to investigate TAL for your friend. The website is: http://www.accountinglibrary.com/ 

If you decide the product is useful, telephone (U.S.: 1-804- 330-0000) and ask for Charles Chewning, and tell him that David Fordham of James Madison University told you about the product. No, I don't get a finders fee or commission, but he is a supporter of JMU (and the AIS educator's association too!) and might give you a discount on the product if he knows you found it through us. (It's a steal at full price, but hey, every few dollars helps!)

David Fordham
James Madison University


Financial Statements.xls:  A step-by-step Guide to Creating Financial Statements using Microsoft Excel, by Joseph Rubin, CPA --- http://www.exceltip.com/pl-fs_overview


Auditing and Audit Sampling Software

May 2, 2006 message from Douglas Ziegenfuss [dziegenf@ODU.EDU]

I teach a graduate IT Auditing course in which we use both ACL and Idea. Both are taught because both are used in the business world. We use the version of ACL that comes with Hall's IT Auditing book. Idea sells the students a version and workbook for $25 per student and gives us a free copy of the software and workbook. The students then load the software on their laptops and bring them to class. This turns any classroom into a lab. The students generally like IDEA better but still enjoy ACL.

I hope this helps.

Douglas E. Ziegenfuss
Professor and Chair,
Department of Accounting
Room 2157 Constant Hall
Old Dominion University
Norfolk, Virginia 23529-0229

ACL Business Assurance Analytics --- http://www.acl.com/solutions/audit.aspx?bhcp=1
ACL is bundled with some auditing software textbooks, such as the Rittenberg text --- Click Here 

IDEA Data Analysis Software --- http://www.audimation.com/product_feat_benefits.htm

May 2, 2006 reply from Roger Debreceny [roger@DEBRECENY.COM]

Over the years I have switched between ACL and IDEA. I currently use IDEA in my teaching. A major factor is that students greatly value having the ability to work on their own computer. I do not think there are substantial differences between the products or that the file size restrictions is a major problem.

Roger


"Small Business Software Grows Up:  Intense efforts for product improvements, by J. Carlton Collins, The Journal of Accountancy, March 2006 --- http://www.aicpa.org/pubs/jofa/mar2006/collins.htm 

EXECUTIVE SUMMARY
Microsoft’s introduction this year of its small business accounting software is challenging the two leading competitors—QuickBooks and Peachtree—to step up their efforts with products that are ever-more technologically powerful.

The competition will be intense because “Microsoft Small Business Accounting (MSBA) is technologically more advanced than either QuickBooks or Peachtree and its price strategy is hard to beat: It’s bundled free in selected 2006 versions of Microsoft Office. With more than 400 million users of Microsoft Office worldwide, even if only a small percentage of them upgrade to the 2006 version, the new accounting program could be in the hands of millions of users by the end of the year.

With products as complex and customizable as SBA software, it’s not prudent to rely fully on assessments of reviewers or colleagues. The only way to be sure a product works best for you or a client is to test it with your own accounting data.

If you’re going to buy QuickBooks or Peachtree, purchase the accountant’s editions. They contain nearly all the additional functionality found in the various other versions of the product and they’re typically priced lower.

The stakes in the competition for small business accounting software are high. The current estimated market of small businesses is between 15 million and 25 million, with 500,000 to 2 million new businesses starting each year. Clearly, small businesses will be the winner as their accounting tools continue to improve.

Bob Jensen's small business helpers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness

Peachtree Accounting Practice Sets --- http://www.perdisco.com/peachtree/

 

 


Free Spreadsheet Software
December 13, 2005 message from Richard J. Campbell [campbell@RIO.EDU]

Ray Ozzie of Microsoft has been talking about providing pieces of Office as a web service.

Here is a link to a free online spreadsheet:

www.numsum.com 

Richard J. Campbell


The American Institute of Certified Public Accountants (AICPA) unveiled a new Information Technology (IT) community Web site that contains resources, tools and guidance for CPAs interested or practicing in IT --- http://infotech.aicpa.org/

Technology is the great enabler and one of the most powerful forces of change. Ever evolving and dynamic, technology touches much of what we do as CPAs. CPAs are able to utilize and leverage technology in ways that add value to clients, customers, and employers. The AICPA supports technology and technology-enabled services to improve business objectives and decision-making processes, including: business application processes, system integrity, knowledge management, system security, and the integration of new business processes and practices.


 

Beyond Excel
ActiveData for Office is a major step forward for our users and for InfromationActive,” Michael Pluscauskas, President of InformationActive Inc. said in a press release announcing the general availability. “This product provides our customers with a flexible and dynamic platform that not only breaks the Microsoft Excel™ row barrier, but also is adaptable and expandable for future planned functionality. Users have been asking for a powerful data analysis tool that works with Microsoft Office and we have given them that and much more. I’m also proud of the fact that we’ve provided an exceptionally robust product at a very competitive price.” ActiveData for Office stretches the boundaries of traditional data analysis tools by providing exceptional integration with Microsoft Office. Users can append documents and web pages to their analysis and archive the entire file in addition to analyzing millions of rows of data quickly thus providing new levels of information control while still allowing the flexibility to view results within ActiveDatae for Office or Microsoft Excel. ActiveData for Office also includes macro capability for recording commonly performed tasks and full audit trail capabilities.
"The Next Level of Computer Aided Audit Tools," AccountingWeb, August 15, 2005 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=101205

"Accounting Today Lists Top 100 Technology Products for 2005," SmartPros, December 28, 2004 --- http://www.smartpros.com/x46317.xml 

The December edition of Accounting Today, a Thomson Media publication, published its 12th annual Top 100 Technology Products in the accounting profession, listing the best and most proven applications in 17 categories.

All products listed offer users tools they need to resolve both minor inconveniences and larger problems that could threaten the health and lifeline of their businesses.

Products included on this year's roster have been listed in the following categories: High-End and Mid-Market Accounting; Small Business Accounting; Client Write-Up; Customer Relationship Management; Enterprise Resource Planning; Financial Planning; Fixed Assets; Forms; Non-Profits; Payroll; Planning and Analysis; Practice Management; Tax Planning and Preparation; Tax Research; and Trial Balance.

This year, two new categories -- Internet Suites and Document Management -- have been added, and the Tax Planning and Preparation categories have been combined to better reflect the availability and range of products.

"We feel our 2005 ranking truly represents the broad scope of technology solutions available within the accounting profession," said Bill Carlino, editor-in-chief of Accounting Today. "While some may be quite familiar to practitioners, others have begun to establish a high-profile presence within technology circles."

Each year, products are evaluated by the magazine's editorial staff and judged by their quality, practitioner acceptance, market visibility, product performance, vendor support and product innovation, measured against marketplace needs.

The 2005 Top 100 Technology Product listing is also available on Accounting Today's sister Web site, www.webcpa.com.


FOUNDATION Construction Accounting Software Wins Award
FOUNDATION Software received the award as the software supplier for Lighthouse Electric, a two-time winner of the prestigious Silver Vision Award in the subcontractor category. Lighthouse earned its second Vision Award for innovative labor management plan that promises to save over $100,000 in labor costs each year. By using the features of FOUNDATION, as well as those form Congistics ControlBoard, a tracking and scheduling application, Lighthouse was able to create a separate function for the management of manpower that utilizes a single powerful Microsoft SQL database. “Our challenge was to utilize technology and procedures in a way that would easily disburse and control our biggest cost: labor,” Ron Felix, CIO of Lighthouse Electric said in explaining how technology and business came together for his company.
"FOUNDATION Construction Accounting Software Wins Award," AccountingWeb, September 6, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=101265
 


"Award-Winning Accounting Software for Small Businesses," AccountingWeb, July 22, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=101123

Sage Software produces two of the top accounting solutions for small businesses, not just according to accountants but also according to the technology crowd. Simply Accounting and Peachtree, two of Sage Software’s accounting solutions have won honors and awards from the media recently. Peachtree Premium Accounting 2005 was awarded five of five stars and Simply Accounting received four-and-a-half of five stars in CPA Technology Advisor’s listing of Small Business Accounting Software for 2005. The evaluation looked at six categories:

Basic Functionality/Ease-of-Use

Available Modules/Customization for Vertical Industries

Expandability

Reporting and Management Functions

Audit Trail, Integrity and Accountant Control Tools and

Help and Support Options. Peachtree Premium received five stars in five categories to earn its five star overall rating. The only category it did not earn five stars in was Help and Support, where its well-built help utility, online Peachtree Knowledge Center, additional support features and several optional support plans merited only four-and-a-half stars.

Simply Accounting received four-and-a-half stars in five categories. More than 100 customizable predefined reports which can be integrated with both MS Word and Excel as well as a version of Crystal Reports allowing for custom report creation and combine it with the Daily Business Manager, payroll support functions and inventory management earned Simply Accounting it’s only five star rating in Reporting and Management Functions.

Simply Accounting has also been honored with a 2005 World Class Award for small business accounting from PC World. It is the third consecutive year Simply Accounting has earned this honor. The World Class Awards honor products combining practical features with innovation and that reflect the rapidly changing technology marketplace. PC World’s editors pick winners for their exemplary design, usability, features, performance, innovation and price.

“The ultimate buyers guide, World Class Awards set the standard for excellence in the high-tech and consumer electronics industries,” states PC World editor-in-chief Harry McCracken. “From desktop publishers to travel routers to satellite radio and video instant messenger services, the editors reward the finest products and most outstanding performers in this annual award program. Congratulations to Simply Accounting.”

Peachtree is Sage Software’s primary brand for small business accounting in the U.S. Simply Accounting is the bestselling small business accounting product in Canada.


"Companies Offer Tech Solutions For Complex Finance Problems ," AccountingWEB, May 9, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=100875

Software makers are coming up with new ways for companies to manage vast amounts of financial data. From the complexities of complying with the Sarbanes-Oxley corporate reform law to the everyday tasks involved with financial reporting, new products are being offered to help companies do the work more efficiently.

Here is a sampling:

Applix, Inc. – The software maker announced Tuesday that it has upgraded its TM1 suite so that users can do more sophisticated financial reporting and consolidations. Wizards have been added so that financial data can be imported more quickly from general ledger, accounting and legacy systems into Business Performance Management applications.

A new offering is TM1 Financial Consolidations, which supports journal entries, inter-company eliminations and other activities specific to the consolidation process.

“Good financial planning begins with the actuals, is followed by a planning process and ends with a comparison of the subsequent actual results to the plan,” said David Menninger, Applix vice president, worldwide marketing and product management, in a statement. “The ability to access information from multiple sources, present it in an easy-to-use, familiar environment and act upon it for everything from reporting to planning to forecasting enables companies to reduce cycle times, increase competitiveness and have greater trust in the information.”

The improvements are available for beta use now. Contact Brian Barnes at bbarnes@applix.com

Movaris - The company, which provides Financial Control Management software, has developed Certainty 8.1 to allow companies to manage reorganizations, mergers and acquisitions, and personnel changes as they affect the financial control environment.

Certainty 8.1 can change the users who are assigned to hundreds of financial control tests, which improves corporate security. It can update multiple financial control attributes. It allows for comparisons of control activities at different points in time. “With visibility into changes in the control environment over time, managers identify improvements and the impact of change on their business unit, and auditors identify the controls in place at the time an issue or exception occurred,” the company said.

Stan Tims, vice president of marketing and business development at Movaris, said in a statement that companies will need to consolidate time-consuming tasks to comply with Sarbanes-Oxley in a cost-effective way.

"Key technologies can reduce the cost of SOX compliance upwards of 25 percent, as compliance has been a mostly manual, people-intensive process. Most companies cannot (and should not) maintain this level of manpower, though the need for compliance will not shrink," said John Hagerty, analyst for AMR Research in a January 2005 report, SOX Decisions for 2005: Step Up Technology Investments.

Continued in the article
 

Great Comparisons of Tax Software
"Tax Software Makes the Grade, by Stanley Zarowin, Journal of Accountancy, September 2005, pp. 48-60 --- http://www.aicpa.org/pubs/jofa/sep2005/zarowin.htm

 
When asked to rate their overall satisfaction with the 13 tax software products in the survey this year, the 3,156 AICPA Tax Section members who responded to the survey came up with a combined average score of 4.23 (out of a perfect 5.00), a significant gain from last year’s 4.03. In addition to the eight packages rated last year, three new products received the minimum required 10 responses from our CPA respondents. (For details about all the vendors in the survey, see exhibit 1; for a complete scorecard on the satisfaction grades, see exhibit 2; and for technical details about the products, see exhibit 6.)

Tied for first place in the overall-satisfaction category, with ratings of 4.46, were Intuit’s highly popular Lacerte and the much smaller Dunphy System’s Tax Software for the Professional. Lacerte inched up from last year’s 4.32 rating; since Dunphy was not in last year’s survey, it has no year-ago rating. Tied for second place with 4.44 were Drake Software and Taxware System’s Taxware Tax Preparation; both are new to the survey this year.

Continued in detail in the article

September 7, 2005 reply from Kurt Wilner

Dear Professor Jensen, I feel kinda cheated that your post didn't look beyond the 'big boys' surveyed by the AICPA. In my case, I jumped from Lacerte the year after Intuit bought it -- and jacked its fees up majorly -- to ATX, which seems to serve a huge base of "small practices" such as my own. ATX makes the grade in 'The CPA Journal" and other mags; so I wonder why it's neglected by your own cite -- which, in general, I prize for its independence from commercial trends. Could you comment further upon this, please?

Sincerely yours,

Kurt Wilner

On July 11, 2005 Barbara Scofield clued me into IDEA Software described at http://www.generalideasinc.com/cc_solutions.asp

NextNet 5.0 for New Product Development
NextNet 5.0 enables you to find the best ideas for new products, fast. By expanding your reach, streamlining evaluation, prioritization, and selection, the best product ideas and enhancements rise to top of the heap. NextNet brings predictability and profitability to the so-called 'fuzzy front end' of product development. NextNet has been used by product development teams in major corporations to rapidly discover and develop multi-million dollar market opportunities.
(Click Here)

SaveNet 5.0 for Process Improvement
SaveNet 5.0 is the tried and true solution to make your operation more efficient. SaveNet enables you to eliminate waste, improve yields and streamline processes all with little or no addtional management time. SaveNet is also a powerful motivator of employee morale and team spirit in the workplace. SaveNet has been used by major corporations to continously discover hundreds of thousands of dollars in cost-savings.

Custom Innovation Management Solutions
The General Ideas Innovation Pipleline Management (IPM) Platform is a highly versatile software platform that can be configured and customized for specialized applications of Idea Management. General Ideas employs the full flexibility of the IPM platform, configuring workflows, alerts, data capture forms, permissions and metrics to ensure effective Innovation Management. General Ideas has worked with companies to create custom Idea Management solutions for: Intellectual Property, IT Portfolio Management, Six Sigma, Employee Suggestions, Total Quality Management, Corporate Strategy, Marketing and Business Development.

July 13, 2005 reply from Bonnie Morris, West Virginia University [bmorris@WVU.EDU]

Contact Audimation Services 888 641 2800

info@audimation.com 

They have IDEA 2004 Workbook. It has 3 datasets and exercises (AR, AP and Fraud Investigation, and Inventory Analysis)

Accounting Software
EmeraldKey Technologies, Inc. introduced Envision Accounting Software for accounting and financial professionals last week. Envision Accounting Software provides a comprehensive solution to meet all business management needs, including financial accounting, project management, client management, time and expenses, billing, payroll, budgets/forecasts, real-time reporting and Web-enablement.
"Introducing Envision Accounting Software for Accounting & Financial Professionals," AccountingWeb, August 24, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=101233

Accounting Professional Site Links 
The CPA Team http://www.cpateam.com/  

Freeware Guide for Business and Finance --- http://www.freeware-guide.com/dir/business/finance.html

Tax Software 

AccountingWEB's Software Resource Center ---  http://www.accountingweb.com/item/52249 
Software Search Here www.findaccountingsoftware.com 
Accounting Software Library http://www.excelco.com/tal.htm 
New stuff ---  http://www.electronicaccountant.com/ 
Old Stuff --- Jensen & Sandlin Survey of U.S. Accountancy Education Programs
Bruce Hutton CGA - Accounting: Software, Publications and Bookkeeping Software
The Software Review Source (Add Your Own Review)
AccountingNet is the complete online resource for accounting professionals: Accounting
Beginning WebCT (Creation of Web Pages)
Accounting Related Resources
Accounting Library FREE DEMO and FTP Page
Accounting Systems -- Accounting System Locator / Selector
AuditNet: Internet Resources for Auditors
Excelco / SouthWare Main Page
Peachtree Software Home Page
Home Page for MicroMash
archipelago productions (Distributed Learning Courses)
TAL Standard Edition "Quick LOOK" AIA Accounting Information Systems
Spreadsheets in Education
 

NPO = Not-for-Profit
"Sizing Up NPO Software," Roberta Ann Jones, Journal of Accountancy, November 2000, pp. 28-44 --- http://www.aicpa.org/pubs/jofa/nov2000/jones.htm 


"Using Software to Sniff Out Fraud," Amey Stone, Business Week, September 30, 2004 --- http://www.businessweek.com/technology/content/sep2003/tc20030930_2727_tc131.htm 


The Journal of Accountancy ran an article showing how a Benford's Law application in Excel led to discovery of a fraud.

"Turn Excel Into a Financial Sleuth," by Anna M. Rose and Jacob M. Rose, The Journal of Accountancy, August 2003 --- http://www.aicpa.org/pubs/jofa/aug2003/rose.htm 

Bob Jensen's threads on accounting software are at http://faculty.trinity.edu/rjensen/bookbob1.htm#software

Technology sites from Smart Stops on the Web, Journal of Accountancy, June 2005 --- http://www.aicpa.org/pubs/jofa/jun2005/news_web.htm

 
TECHNOLOGY SITES

Check Out Check 21
www.aicpa.org/financialliteracy
The AICPA Financial Literacy Resource Center has added a section to its Web site about the Check Clearing for the 21st Century Act (Check 21). The Web site discusses the act’s implications for auditors and businesses, and provides links to the Federal Reserve Board’s “Check Clearing for the 21st Century Act” Web page and implementation information, two frequently-asked-questions sections and a consumer guide.

A Site With Byte
www.freebyte.com
CPAs and IT managers will want to bookmark this Smart Stop loaded with links to free accounting, antispam and backup software, currency and document converters, mortgage calculators, computing and financial glossaries and Web browsers. There are online dictionaries in English as well as French, German, Italian and Spanish. There’s also free clipart, fonts and photos that CPAs can use for marketing brochures, and everyone can take a break in the Jokes and Humor and Free Games sections.

Figure for Free
www.calculator.com
Sure, you already have mortgage, percentage, scientific and standard e-calculators. This site offers calculators for car leases, fractions, graphing, and home equity and general loans, plus converters for currency, international time, temperature and units of measure. There’s also a link to the tax-preparation-service calculator site www.internet-taxprep.com with tools CPAs can use to calculate investments, mortgage refinancing and Roth IRA returns for clients. Other resources include current and archived tax news, a 2005 tax guide and information about a free online tax-filing program.

Tech Talk
www.itmweb.com
CITPs and other information technology professionals can find resources here on IT capital spending, department budgets and salary ranges. Download the demo software, read book reviews or subscribe to the free monthly IT e-zine and newsletter. Technology Articles has tips on making your e-mails sound more professional and improving your project team management skills, while the Job Listing Centers invite employers to post open positions. IT White Paper Spotlight offers documents on subjects from artificial intelligence to knowledge management.

Painless Projects
www.ittoolkit.com
Looking for more efficient ways to manage IT procedures and roll out new technology? Then register for a free membership at this e-stop to access information on managing IT operations and receive a monthly e-mail reporting on the latest task management resources. Members can download planning checklists, mission and scope statement templates and white papers on IT process improvements.

Bob Jensen's technology bookmarks are at http://faculty.trinity.edu/rjensen/bookbob4.htm

Information Technology Sites, From Smart Stops on the Web, Journal of Accountancy, May 2004, Page 23 --- http://www.aicpa.org/pubs/jofa/may2004/news_web.htm 

THE INTERNET
SMART STOPS ON THE WEB
 
TECHNOLOGY SITES

For IT Educators and Leaders
www.techlearning.com
Here, CPAs who specialize in IT professional development can find helpful resources such as tips on needs assessment for offices or classrooms and articles including “Data Can Drive Development.” Users also can read software reviews and find links to general search engines as well as to an encyclopedia with more than 20,000 IT terms.

Free Online Resources
www.eweek.com
CPA IT professionals can register for free at this Web stop and enroll in gratis e-seminars on topics such as best practices for enterprise data integration, information security and wireless LAN deployment. Users seeking to advise clients on application storage management systems will want to give them the quick quiz “Do You Need to Automate?” before proceeding.

Read to Keep Up
www.technologyreview.com
In addition to providing free either two hard copies of the magazine or a digital issue, Technology Review offers visitors to its Web site a free subscription to the newsletter Technology Review Update. Other gratis offerings include the sections Predictive Markets, where users can predict future outcomes of IT issues to win prizes, and Research News, which has links to information on industry innovations.

Less Search Time, More Results
www.keepmedia.com
CPAs looking for IT articles from the past 12 years can register here for a free seven-day trial. Users can search more than 150 publications, store favorite articles directly online at this site, keep track of what they’ve looked at—saved or not—and let KeepMedia find other articles based on their previous choices. A general search on the word technology returned more than 14,000 results.

Telecommuting Technology
www.langhoff.com
CPAs working from home or remote locations can find case studies and statistics on this trend through the frequently-asked-questions section at June Langhoff’s Telecommuting Resource Center. Also, visitors can look through the business travelers’ survival guide to find tips and links to airlines, ATM locations and business services for mobile users. Companies interested in starting a work-at-home program can research the costs and get links to model telecommuting agreements and policies.

“The Silly Con Valley Report”
www.mikeslist.com
Don’t be fooled by this Web site’s light tone: Useful nuggets of information, including the latest reports on software designs, how to thwart spam and a 300-Gb hard drive, can be found beneath all the humor. Also, users can read up on the latest in broadband and handheld technology and Windows XP through the newsfeed links as well as join up for a free weekly e-newsletter.

 

Commercial Accounting Sites

Bob Jensen's Links to Accounting Software and Vendors (this list is outdated!)
XBRL Updates --- http://faculty.trinity.edu/rjensen/XBRLandOLAP.htm#TimelineXBRL 
Accounting Related Resources
AccountingNet is the complete online resource for accounting professionals: Accounting
Accounting and Financial Information
BUSINESS RESOURCES
Accounting Net - Your Internet Link to the Accounting World
CPA Online: Your source for Accounting Information on the Internet
Bob Jensen's Vendor Database (this list is outdated!)
Course Resources
CyberCpa - Resources
Jensen & Sandlin Survey of Accountancy Education Programs (Outdated)
Jensen & Sandlin Survey of Commerical Learning Materials in Accounting (Outdated)
K2 Enterprises Accountants Hotlist
Site Seeker
Home Page for MicroMash
 
 

AIS, Databases, Auditing, and Assurance Services

Accounting Software --- https://en.wikipedia.org/wiki/Accounting_software

2018:  Best Inventory Management Software with Accounting ---
https://www.accountingweb.com/community/blogs/stevenhgallagher/best-inventory-management-software-with-accounting?source=ei081518

Enter "cloud software" AND "accounting at
https://www.google.com/advanced_search

Enter "cloud software" AND "accounting at
https://www.bing.com/

Cloud-Based Accounting Software ---
https://softwareconnect.com/lp/36104306106/?k=%2Bcloud%20%2Baccounting%20%2Bsoftware&mt=b&p=1t2&n=g&cp=1493178641&g=57927740776&ac=285345733657&ae=&tg=kwd-19493024904&geo=9002382&dt=c&dm=&cs=&gclid=EAIaIQobChMI05Dp5-Dv3AIVwrXACh0pTw-EEAAYAiAAEgLstvD_BwE


July 2014
The CFO Guide to Budgeting Software: 10 Key Elements Companies Should Look For --- Click Here
http://pages.cfo.com/Centage---Budgeting-Software_download.html?mkt_tok=3RkMMJWWfF9wsRojuqnAZKXonjHpfsXx6%2B4rW6Cg38431UFwdcjKPmjr1YcHScd0aPyQAgobGp5I5FENTrDYUKhrt6EPWQ%3D%3D


From the CPA Newsletter on September 4, 2014

CPA practitioners rate their tax preparation software
http://r.smartbrief.com/resp/gbwLBYbWhBCJdbmnCidKtxCicNZefG?format=standard
Likes, dislikes, technical support and more -- CPA tax practitioners once again this year share their assessments of the leading programs for preparing and filing tax returns on behalf of clients. Extensive tables and analysis give users' responses for eight products. A link from the article provides free online access to still more detailed results and information. Journal of Accountancy print issue (9/2014)

Bob Jensen's neglected threads on accounting and tax software ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#SoftwareAccounting


Worldwide Directory of Accountants and Consultants --- http://www.searchsystems.net/list.php?nid=62

Bob Jensen's helpers on how choosing professional advice --- http://faculty.trinity.edu/rjensen/fees.htm

Information Systems Audit and Control Association and Foundation Web (ISACA) site --- http://www.isaca.org/ 

Electronic Commerce:  http://faculty.trinity.edu/rjensen/ecommerce.htm 

Assurance Services:  http://faculty.trinity.edu/rjensen/ecommerce/assurance.htm 

 
How CPAs Rated Their Tax Software ---
http://www.journalofaccountancy.com/issues/2016/aug/2016-tax-software-survey.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=01Aug2016

Find Accounting Software (commercial site) --- http://findaccountingsoftware.com/
Audit Analytics --- http://www.auditanalytics.com/0002/


A Premium Audit Industry Market Intelligence Service Audit Analytics has information on over 20,000 public registrants and over 1,500 audit firms. It is the most comprehensive market intelligence tool for the audit industry available today. AuditAnalytics.com currently offers over 60 data fields to its users. Access to this data is available as on-line user subscriptions, as enterprise data feed subscriptions, and in custom reports.

Huron is the main source of restatement statistics --- http://www.huronconsultinggroup.com/

Gerald Trite's great set of links --- http://iago.stfx.ca/people/gtrites/Docs/bookmark.htm 

Online Magazine (for Information Professionals) --- http://www.onlineinc.com/onlinemag/index.html

ONLINE is written for Information Professionals and provides articles, product reviews, case studies, evaluation, and informed opinion about selecting, using, and managing electronic information products, plus industry and professional information about online database systems, CD-ROM, and the Internet. This site contains selected full-text articles and news from each issue of the magazine. Direct letters to the editor to Marydee Ojala ( Marydee@xmission.com ). If you are interested in writing for ONLINE, please see the Authors' Guidelines.

Artificial Intelligence and Expert Systems

Links to Journals on Artificial Intelligence
American Accounting Association Special Interest Group
Brown and O'Leary Tutorial
Gal and Steinbart
Bibliography of AI Literature (With Updates)
A. B. I. S. A. (index)
Finance and Investment Links (Neural Networks)
WebBots
MultiLogic (EXSYS Expert Systems Software)

Assurance Services

 Accounting Professional Site Links 
The CPA Team http://www.cpateam.com/  

Electronic Commerce --- http://faculty.trinity.edu/rjensen/ecommerce.htm 

Assurance Serivices --- http://faculty.trinity.edu/rjensen/ecommerce/assurance.htm 
(Including SysTrust, WebTrust, Truste, BBB, etc.)

For Eldercare Information
www.elderweb.com

Impact of Technology
New Opportunities
Megatrends
Range of Services
Site Map
AICPA Discussion Forum
AICPA Feedback
PC Meter Tackles Web Measurement (Accounitng Assurance Services)
CPA WebTrust Slides
Computer Security Issues
Introduction to Internet Security
AICPA CPE Course
The Capability Maturity Model (CMM) For Software
Deloitte & Touche Risk Management & Control: Visual Assurance
 

Also see E-Commerce

Bankruptcy Helpers

"The Business of Bankruptcy:  CPAs can't make a bad economy go away, but they can provide value to clients on the ropes," y Victoria Zunitch and Michael Hayes, Journal of Accountancy, February 2002, pp. 35-39 --- http://www.aicpa.org/pubs/jofa/feb2002/zunitch.htm 

 


EXECUTIVE SUMMARY
A CPA FIRM WITH A CLIENT filing for bankruptcy has a responsibility to serve the client as well as an opportunity to compete for some of the work on the case—and through it develop a specialty. The need for bankruptcy services is expected to grow for a while.

CPAs SOMETIMES ARE THRUST into the field when a client goes broke, but a firm that has time to plan can develop the niche strategically. The bulk of bankruptcy work comes from attorney referrals.

A PERUSAL OF THE PUBLIC RECORDS of your local bankruptcy court and the U.S. Trustee Office will identify the accountants, lawyers, trustees, examiners and other advisers who are players in your market.

THE EXACTING BILLING requirements of the court affect every novice in bankruptcy work and are a continual challenge even for seasoned practitioners. CPAs are at minimum risk because the court’s first administrative priority is to cover the expenses of a bankruptcy.

DURING A BANKRUPTCY, debtors, creditors’ committees, trustees and other entities need CPA services. A firm should look first for clients that need services it already provides, such as tax preparation or monthly reports.

CONFLICT-OF-INTEREST CONSIDERATIONS usually require the work to be parceled out to several accounting firms, which means attorneys are always looking for new CPAs with whom to work.

VICTORIA M. ZUNITCH is a freelance business writer based in New York. Her e-mail address is VZwriter@hotmail.com MICHAEL HAYES is a senior editor on the JofA. Ms. Hayes is an employee of the AICPA and her views, as expressed in this article, do not necessarily reflect the views of the Institute. Official positions are determined through certain specific committee procedures, due process and deliberation.

From Smart Stops on the Web, Journal of Accountancy, February 2002, Page 25 --- http://www.aicpa.org/pubs/jofa/feb2002/news_web.htm 

Intro to Bankruptcy Law
www.bankruptcylawinstitute.com

This site offers information on Chapter 7, Chapter 11 and Chapter 13 bankruptcy law, forms and court filing procedures. Users can access online tutorials on the following topics: types of bankruptcy, the structure of bankruptcy law, exemption and property law, and how to calculate equity.

Bankruptcy-Law Links
www.agin.com/lawfind

The law firm Swiggart & Agin, LLC, in Boston hosts the Bankruptcy Lawfinder, offering users related information and resources. Site sections include courts and cases, regulations and statutes. The bankruptcy law resources section includes links to the American Bankruptcy Institute, a directory of companies in Chapter 11 proceedings and the Center for Debt Management.


Peachtree Accounting has a short new name and huge new prices

"Sticker Shock Awaits Sage 50/Peachtree Payroll Service Users," by David Ringstrom, AccountingWeb, April 16, 2013 ---
http://www.accountingweb.com/article/sticker-shock-awaits-sage-50peachtree-payroll-service-users/221587?source=technology

The 2014 version of Sage 50, formerly known as Peachtree Accounting, is available for purchase now. As a result, certain users who rely on the payroll subscription are going to experience sticker shock in the near future. Historically, you could purchase a Sage 50/Peachtree Accounting product and pay an additional fee for the annual payroll service that makes it easy to calculate withholding taxes. As long as your accounting software was one of the three most recent versions, the annual payroll service typically cost around $300/year. Such users are about to see their annual costs increase by a factor of two, three, or even more.

For several years, Sage has offered an optional Business Care program that entitled users to priority support and automatic program upgrades. This program is now mandatory if you want to process payroll in the software. The Sage Business Care program is being offered at three levels:

Silver Gold Platinum

The Silver plan offers unlimited support, annual product upgrades, and the Business Intelligence feature that allows you to analyze your accounting data in Microsoft Excel. However, if you wish to process payroll within Sage 50, you must sign up for the Gold or Platinum programs. The Gold program allows you to process payroll for up to fifty users, while the Platinum program offers unlimited payroll as well as priority access to a dedicated support team that offers appointment scheduling.

Business Care is an annual subscription, which means that rather than buying the software and sitting out a couple of upgrade cycles, you must continue your Business Care subscription year after year in order to process payroll in Sage 50.

Sage doesn't disclose pricing for the Gold or Platinum programs on its website, because the pricing varies based on which version of Peachtree/Sage 50 you're currently using and the number of simultaneous users you require. In general, the first year of business care will be at a higher price, with savings each year for annual consecutive renewals. As a point of reference, a Silver Business Care subscription for a three-user license for Peachtree Complete Accounting is $669/year. This doesn't include payroll, so it means your ongoing annual expense will likely be at least $800/year, year-in, year-out, as opposed to the $300 or so that you could formerly pay to add a payroll subscription.

Continued in article

There is a somewhat useful 2011 Peachtree versus Quickbooks site at
http://blog.softwareadvice.com/articles/accounting/peachtree-vs-quickbooks-1062211/ 
Pricing comparisons before April 2013 are probably out of date.


Helping Community College Graduates Find Careers
The Community-College Employer Connection ---
https://www.brookings.edu/podcast-episode/the-community-college-employer-connection 


 

Bob Jensen's Threads on Professional Practice, Fees, Choosing Accountants, Financial Advisors, and Consultants --- http://faculty.trinity.edu/rjensen/fees.htm 

www.legal-definitions.com
CPAs who need help deciphering “lawyerspeak” can find concise definitions of legal terminology at this e-stop as well as the meaning of general business terms such as bankruptcy.

www.commerce-database.com
Need to know the difference between an act of God and an act of nature? The legal terms section of this online business dictionary defines them as one and the same. The Commerce Database categorizes words into separate business and legal dictionaries: The business one offers categories such as accounting.

www.legal-database.com
CPAs interested in legal topics such as bankruptcy, civil rights, employment, labor and tax laws can find various terms explained in the articles section for each category at this Web stop. In addition visitors can register for free monthly newsletters on bankruptcy, employment, family and tax law.

 

See also Small Business Helpers

Fees and Professionalism

Message from FERF on February 24, 2004

Auditor Fees

An FEI member recently asked research as to whether a database exists of how much audit firms charge in audit fees relative to size of clients and billable rates per hour.

FERF researchers found information broken down by company size in the recent FEI Sarbanes-Oxley Section 404 survey results issued earlier in February http://www.fei.org/news/404_survey.cfm. Although billable rates are not given, an excel table details incremental audit fees for the Section 404 attestation and the % increase this fee represents of their current audit fee. Various groupings of responses are given by size of company based on revenue.

In April 2003, FEI's Committee on Corporate Reporting (CCR) surveyed its members on 2002 audit fees. Twenty-five companies with total US assets of between $0.4 billion and $1,097 billion responded. Findings and an excel table are available under Finance Tools at http://www.fei.org/financetools/audit_fee.cfm

Aspen Publishing recently released the 5th edition of "Professionals Guide to Value Pricing." The book discusse related value pricing vs. audit firm hourly rates. A description of the book can be found at: http://www.aspenpublishers.com/Product.asp?catalog%5Fname=Aspen&category%5Fname=&product%5Fid=0735543178&Mode=SEARCH&ProductType=M.

 

Bob Jensen's guides to fees and related matters are at http://faculty.trinity.edu/rjensen/fees.htm 

Services Offered by Professional Accounting Firms (including how to find them) --- http://faculty.trinity.edu/rjensen/fees.htm#ServicesOffered 

From Smart Stops on the Web, Journal of Accountancy, July 2007 --- http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm

WEALTH MANAGEMENT

SECURING A REPUTABLE BROKER
www.nasd.com/brokercheck
The NASD has answered the calls of investors looking for background information on potential financial service providers. The organization’s BrokerCheck Program lets users research current or formerly registered securities firms, individual brokers and regulated Investment Adviser firms. It also provides a comprehensive 10-year business and licensure history and list of disclosure events, including criminal actions, customer complaints and disciplinary actions by regulators against the firm or broker. Investors receive an electronic disclosure report as well as access to other educational services, including the Professional Designation Database and state disclosure programs.

BECAUSE YOU’RE WORTH…MORE
www.freemoneyfinance.com

Whether you’re living on a student’s budget or a CFO’s salary, Free Money Finance has innovative ideas for increasing net worth, budgeting and maximizing retirement savings that you can immediately put into practice. On Mondays, check out “Star Money Articles,” a posting of news and tips from several of the Web’s popular personal finance sites. Take a few minutes on Fridays to read “One Year Ago,” popular posts from the prior year, to jump-start a frugal weekend.

THE BENEFITS OF TAX KNOWLEDGE
www.irs.gov/retirement

Visit this Smart Stop for the latest tax news and information affecting the employee plans community. CPAs can search for resources on employee plans (EP) examinations and enforcement, retirement plans, benefit audits and correcting EP errors. Click on the “EP/Forms/Pubs/Products” link for access to PDF versions of EP forms and publications, plus in-depth instructions for form 5500, Annual Return/Report of Employee Benefit Plan, and form 5330, Return of Excise Taxes Related to Employee Benefit Plans.

NOTHING IS CERTAIN BUT…
www.deathandtaxesblog.com

Visit Chicago-area attorney Joel Schoenmeyer’s Web site to brush up on topics straddling the lines between law, accounting and wealth management. Death and Taxes—The Blog offers estate planning and administration news and commentary, plus coverage of legal issues about real estate, gift and income taxes, trusts and charitable giving.

Bob Jensen's investment helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#Markets

 

Audit Analytics --- http://www.auditanalytics.com/0002/

A Premium Audit Industry Market Intelligence Service Audit Analytics has information on over 20,000 public registrants and over 1,500 audit firms. It is the most comprehensive market intelligence tool for the audit industry available today. AuditAnalytics.com currently offers over 60 data fields to its users. Access to this data is available as on-line user subscriptions, as enterprise data feed subscriptions, and in custom reports.

Frauds and Fraud Examination

The FBI's Internet Fraud and Complaint Center (IFCC FBI)
To thwart fraud on the Internet and terror in general, check in and/or report to http://www1.ifccfbi.gov/index.asp

Bob Jensen's Threads on Accounting Fraud --- http://faculty.trinity.edu/rjensen/fraud.htm 

Message from FERF on February 24, 2004

Fraud Checklists

Another FEI member responsible for a Sarbanes-Oxley 404 engagement recently inquired about a "checklist that can be used at the process level to help identify the types of fraud concerns related to a specific process."

FERF researchers found the following references:

An Appendix to Statement on Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit (SAS 99), provides examples of fraud risk factors. The appendix is available at the AICPA website at: http://www.aicpa.org/antifraud/business_industry_govt/assessing_organization_vulnerability/identify_assess_risk/38.htm

The Association of Certified Fraud Examiners provides a fraud prevention checkup that can be used to assist in determining an "entity's vulnerability to fraud." http://www.cfenet.com/pdfs/FrdPrevCheckUp.pdf

In January 2003, the Institute of Internal Auditors conducted a survey on red flags used to detect fraud. Though the survey is closed, the text can be used as a checklist. http://www.gain2.org/redflags.htm

Somewhat related to the issue of fraud, Mutual Interest published an article about SAS 99 and fraud: http://www.auditnet.org/articles/SAS%2099%20Friend%20or%20Foe.PDF

FERF also wrote an article on fraud detection that will be published in the March/April 2004 issue of FE Magazine that will soon be available at http://www.fei.org/mag/.

Bob Jensen's main fraud links are at http://faculty.trinity.edu/rjensen/fraud.htm

Services Offered by Professional Accounting Firms (including how to find them) --- http://faculty.trinity.edu/rjensen/fees.htm#ServicesOffered 

 

Databases, ACCESS, ODBC, and Queries

A great listing of URLs of companies selling accounting systems software
http://www.lib.polyu.edu.hk/electdb/DATAPRO/154-1.htm

Bob Jensen's AIS course --- http://faculty.trinity.edu/rjensen/acct5342/acct5342.htm

SQL Ledger --- http://www.sql-ledger.org/

other

Application Development Trends
SAP Homepage (Accounting Information Systems)
Microsoft Access Accounting Systems
Application Development Trends (Information Systems, Databases)
ACCT 5342 Accounting Inrformation Systems (Includes ACCESS links)
QueryTool (Databases, ODBC)
SnmpQL SQL Examples
Index of /~jbarlow/dbclass/fall.95/ SQL examples/
InterBase SQL GROUP BY
CS 265 - SQL Examples MS Assexx
Technical Glossary @IceNH
Microsoft Access Health Care Solutions
A Metalanguage for Describing Internet Resources
SAP R/3 Design Center [SAP] PriceWaterhouse Coopers
DatatelHome Page
EDUCATIONSYSTEMS (SCT Education and Accounting Information Systems)
CARSInformation Systems
PeopleSoft:Meet PeopleSoft
 

ASU

http://www.public.asu.edu/~cpaul/
Julie Smith David Homepage
ACC330: Accounting Information Systems at Arizona State University
COURSE TECHNOLOGY
 

Joseph H. Callaghan, Thomas W. Lauer, and Eileen Peacock
Oakland University's School of Business Administration

An AIS Curriculum Using a Model-Oriented, Tool-Enhanced (MOTE) Framework
See http://www.rutgers.edu/Accounting/raw/aaa/facdev/teaching/submissions/callaghan.htm

The innovation consists of a curriculum, instructional strategy, teaching approach, and a set of related teaching materials.  Evidence of this implemented innovation is composed of the following:

  • An Executive Summary
  • Several articles describing the innovation and its foundation elements
  • Attestations from academics, students, practitioners, and employers
  • Course syllabi for the three courses in the curriculum:
         ACC 418/618, Computerized Accounting Information Systems
         ACC 419/619, Accounting Information Systems: Design
         ACC 480/680, Special Topics in Accounting Information Systems
  • Examples of course materials used in the curriculum
  • Data Modeling Case example Business Process Case example Sy's Fish Case example PLACE Case

At its core, the MOTE approach aims to teach conceptual understanding and skills in data and process modeling in an accounting context. Learning these skills on a conceptual level is reinforced through the use of programmer development software. These are software tools that support systems development from the model level during systems analysis, through systems design, and to the completion of the development life cycle and the construction of the system. The first two courses of our AIS curriculum roughly follow these three phases, while the third course reiterates these phases in a complex accounting context. For further information, see the Executive Summary for the innovation at http://www.sba.oakland.edu/faculty/Callaghan/aisaward/AAA%20MOTE%20award.html

Miscellaneous AIS (Including Shared Courseware)

ACCT 5342 Accounting Inrformation Systems
AAA IS/MAS Homepage
Study Web
http://www.isworld.org/isworld.html
Ernie. Your online business consultant.
Frank G. Duserick (MIS and AIS Courses)
Darrell Walden at U. of Richmond - Accounting Information Systems
Univeristy of Waterloo - School of Accountancy - J.E. Boritz
AC3029 Accounting Information Systems (AIS)
AAA IS/MAS Homepage
Ceil M. Pillsbury
AIS OnLine
EdWeb Home Page (Education, Recommended by Ceil Pillsbury)
||-- webprofessor Amelia Baldwin at Florida International University (Acccounting Information Systems)
Favorite Sites -- Accounting, AIS & MIS Students & Professionals
Here's Ernie
http://WWW.raptor.com/library/nstiss.glo.txt
Raptor Systems Security Library
SMAP 96 Homepage
The School of Information Systems
Infobyte Homepage
Infobyte Homepage (General Ledger, Accounitng Education Site)
ISACA - Information Systems Audit and Control Association (Accounting Information Systems)
Favorite Sites -- Accounting, AIS & MIS Students & Professionals (Shared Course Materials)
Favorite Sites -- Accounting, AIS & MIS Students & Professionals (Accounting and AIS Links)
Association for Information Systems
http://www.isworld.org/isworld.html
Datatel Home Page
Datatel : Products (Microcosm Authoring Software)
Microsoft's COM (Component Object Model)
InfobyteHomepage (Accounting, General Ledger Software)
AuditNet: Internet Resources for Auditors
Ernie. Your online business consultant.
AC3029Accounting Systems
KenyonCollege - Academic Projects on the Kenyon Web
Chapters (Internet Guide for Accountants by Kogan, Sudit, and Vasarhelyi)
The AIS/ICIS Placement Listings
 

OSU

AMIS Faculty Home Pages
 
In the Classroom
 
Waleed Muhanna's Home Page
 

Online Continuing Education ( CPE ) and Training

Learning Insights (includes CFA paractice questions)

Ernst & Young educational Webcasts --- http://webcast.ey.com/thoughtcenter/interfaces/ey2/pages/description.asp?action=help 

Associations in the Accounting Profession

"Distance learning: The world of online training for accountants," AccountingWeb, December 2007 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=103948

From Smart Stops on the Web, Journal of Accountancy, November 2007 --- http://www.aicpa.org/pubs/jofa/nov2007/smart_stops.htm 

CONTINUING EDUCATION

THE CPA TOOLBOX
www.cpemarket.com

This Smart Stop is part of the National Association of State Boards of Accountancy’s www.nasbatools.com, which offers “tools for accountancy compliance.” CPAs can search CPE course providers, the National Registry of CPE Sponsor courses and quality assurance service courses, plus click on “Pilot Test CPE Courses” to try out courses for free. There’s also access to instructor resumes and in-house course providers. Click on the state you’re licensed in to find updated information on mandated continuing education requirements and links to your state’s board of accountancy.

CREDITS ON THE GO
www.cchpodcast.com/partners/cchPodcast

Check this site for free CPE podcasts, available as streaming audio or downloadable to your computer or audio player. Click on “Course Catalog” to download available podcasts and their supplementary PDFs, including a study guide and final exam questions. When you’re ready to take the exam, enroll and purchase the credits—your exam grading and certification is available immediately. Be sure to check if your state’s board of accountancy accepts these CCH self-study courses by clicking the “CPE Accreditation” link.

ASSESS YOURSELF
www.cpa2biz.com/CPE

Just starting your continuing education requirements? Test your skills and training needs with the site’s “Competency Self-Assessment Tool,” free for AICPA members, then search CPE courses by topic, level, job area or format, including CD-ROM and DVD. Check back often to see the month’s top sellers and new releases or to download catalogs for the “CPE Direct” program and “Staff Training Series.”

THE ROAD TO CPE COMPLIANCE
www.cpetracking.com

Can’t keep up with your CPE hours? Launched in 2006, this site keeps accounting professionals and firms up-to-date on CPE hours and compliance. Registered users can record CPE credits, which are then compared to the requirements from each state’s board of accountancy and regulatory agencies. The service also provides status reports by jurisdiction and reporting period, as well as access to all of your CPE records in one location.
 

 

Most accountancy associations, firms, and many colleges also offer CPE courses.

Bob Jensen's threads on online training and education are at http://faculty.trinity.edu/rjensen/Crossborder.htm

 

Directories for the Accounting Profession

Richard Torian's Managerial Accounting Information Center --- http://www.informationforaccountants.com/ 

O'Keefe Accounting Library Searches http://library.sau.edu/bestinfo/Majors/Accnt/accindex.htm

Services Offered by Professional Accounting Firms (including how to find them) --- http://faculty.trinity.edu/rjensen/fees.htm#ServicesOffered 

Bob Jensen's Threads on Accounting Fraud, Forensic Accounting, Securities Fraud, and White Collar Crime ---  http://faculty.trinity.edu/rjensen/fraud.htm 

Bob Jensen's Threads on Fees and Choosing Accountants, Financial Advisors, and Consultants --- http://faculty.trinity.edu/rjensen/fees.htm

 Accounting Professional Site Links 
The CPA Team http://www.cpateam.com/  
 
CPAnet http://www.cpanet.com/index.asp 
Accountants Directory - Database Search
THE LIST of CPA Firms
Welcome to NACUBO!
Gerald Trite's great set of links --- http://iago.stfx.ca/people/gtrites/Docs/bookmark.htm 
 
AccountingWEB's Entrepreneur to Accountant Referral Network (E.A.R.N.) program, matching the accounting and financial needs of thousands of small businesses with the talent of the AccountingWEB community. http://www.accountingweb.com/item/39161 
 
Bob Jensen's Links
American Association of Hispanic Certified Public Accountants --- http://www.aahcpa.org/ 
Jensen & Sandlin Survey of U.S. Accountancy Education Programs
E. Barry Rice, Loyola College in Maryland
ANet Home Page
ANet Australia home (International Accounting Network)
Wm. Dennis Huber's Web Page
RAW Rutgers Accounting Web Introduction
Locate a Lawyer with lawyers.com!

Information Systems Audit and Control Association and Foundation Web (ISACA) site --- http://www.isaca.org/ 

Professor Durler has a nice links page at http://www.emporia.edu/~durlerge/links.htm 

Public Accounting Report has published its annual ranking of America's Top 100 Accounting Firms, and it's no surprise that Andersen, last year's number five ranked firm, is no longer on the list. http://www.accountingweb.com/item/95611

  1. PricewaterhouseCoopers: $8,056.5 million
  2. Deloitte & Touche: $6,130 million
  3. Ernst & Young: $4,485 million
  4. KPMG: $3,171 million
  5. Grant Thornton: $432.5 million
  6. BDO Seidman: $353 million
  7. BKD: $210.9 million
  8. Crowe, Chizek & Co.: $204.7 million
  9. McGladrey & Pullen: $203 million
  10. Moss Adams: $163 million

"Second Six: Ready to Step Up?" CFO.com --- http://www.cfo.com/specialreport/0,5487,564||A,00.html 

As contributing editor Ed Zwirn reveals in his article ''The Second Six: Ready to Step Up?'', the demise of Andersen and the advent of Sarbanes-Oxley have not been an unqualified blessing for those firms that remain. And in ''Same Straw, Smaller Back,'' Zwirn notes how new regulatory burdens that fall heavily on smaller companies (the usual Group B clients) may persuade many of them to go private.

The American Bar Association is Giving Something Away for Free
ABA LawInfo.org --- http://www.abalawinfo.org/ 
     Your gateway to information on legal topics that affect your daily life.

Company & Industry Information
Company Lists ... Company Research ... Stock and Investments ... Industry Information ... More

From the Scout Report --- Business.com http://www.business.com/ 

The owners of this lucrative URL address have sponsored a Web directory created by a "team of 50 research analysts [that] has sifted through the Web to find relevant sites for our handcrafted Directory." All Websites in this 30-category directory have been annotated. The annotations, however, tend to be very terse and a bit vague. First time users are encouraged to skim over the excellent site guide, which gives a step-by-step manual for using the site as well as in-depth explanations of the terminology and taxonomy.

 

The National Network of Accountants homepage is at http://www.nnaplan.com/ 

AAA

American Accounting Association (AAA)
Accounting Coursepage Exchange (ACE) - American Accounting Association (AAA)
Teaching and Curriculum Section Home Page
Public Interest Section of the AAA
AAA IS/MAS Homepage
Globalization Strategic Alliances Roundtable (GSAR), Berlin, Germany, June 22, 2001 --- http://www.cs.trinity.edu/~rjensen/GSAR2001/000start.htm

AICPA

e-Commerce and e-Business Helpers for Accountants --- 
     http://faculty.trinity.edu/rjensen/ecommerce.htm
 
AICPA American Institute of Certified Public Accountants
AICPA Journal of Accountancy
AICPA The Vision Process
AICPA AICPA Code of Professional Conduct
AICPA NewsFlash! - 9/16/97 - AICPA Launches CPA WebTrust Electronic Commerce Seal
AICPAAICPA Implementation Initiatives on SAS No. 82
AICPARecently-Issued Auditing Standards and Interpretations
AICPAOnline Policies and Copyright Information
AICPAHome Page
CPAtechonline: Tech News (Accounting, Auditing, Tax, Computers, AIS)
PronouncementsHaving Current and Future Effective Dates
AICPA AICPA Online Audio/Video Library
 

EAA

European Accounting Association Home Page
EAA 96 Complete Index of papers
Index of EAA 96 by Theme Reference - ATH
 

IASB (formerley IASC)

IASB - Web Site

The IASB announced that international accounting IASC standards will now be available on CD-ROM at http://www.iasc.org.uk/news/cen8_065.htm   .

I
You may also try  http://extranet.pw.com/PWRUpdates.htm  
IOSCO Home Page
 

IFAC

IFAC - International Federation of Accountants
The Internet and Distance Learning in Accounting Education—IFAC
International standards are also available along with accounting and auditing standards in various nations are also available on the PriceWaterhouse Coopers Compario at http://www.pwcglobal.com/gx/eng/about/svcs/comperio/ 

FASB

FASB Home Page 



International standards are also available along with accounting and auditing standards in various nations are also available on the PriceWaterhouse Coopers Compario at http://www.pwcglobal.com/gx/eng/about/svcs/comperio/ 

 

There are no free copies of any FASB standards, because sales of those standards are main sources of revenue to the FASB. My advice is to contact Pricewaterhouse Coopers and subscribe to their PW Researcher that contains all standards for a number of nations, the IASC international standards, and all FASB standards. You can get this on the PW Researcher CD-ROM that is updated as new standards and interpretations come along. FAS 52 is one of those standards. One website for the PW Researcher is 
http://instruction.bus.wisc.edu/jfuhrmann/pwr/PW%20Researcher%20Guidelines.html
 

You might also try  http://extranet.pw.com/PWRUpdates.htm  

The other alternative is to order FASB standards directly from the FASB at 
http://www.rutgers.edu/Accounting/raw/fasb/public/index.html
 

 

Others

ACBSP Association of Collegiate Business Schools and Programs
Associated Colleges of the South (ACS)
Palladian Fall 1998
Accounting Related Resources
American Association of Hispanic Certified Public Accountants --- http://www.aahcpa.org/ 

The Institute of Chartered Accountants in England and Wales Links Page http://www.icaew.co.uk/link.ht 

International standards are also available along with accounting and auditing standards in various nations are also available on the PriceWaterhouse Coopers Compario at http://www.pwcglobal.com/gx/eng/about/svcs/comperio/ 
 
Jensen & Sandlin Survey of U.S. Accountancy Education Programs
The Institute of Internal Auditors   (IIA)
Internal Auditing World Wide Web (IAWWW)
Associationof Certified Fraud Examiners Home Page
The Institute of Financial Accountants (United Kingdom)
Prologueto Report to the Nation on Occupational Fraud and Abuse (President Clinton)
AACSB Home Page
ACBSP (Association of Collegiate Business Schools and Programs )
Palladian Fall 1998
Association of Collegiate Business Schools and Programs (ACBSP)
Associated Colleges of the South
ACCOUNTING RESOURCES ON INTERNET
AICPA Home Page
American Accounting Association Homepage
AMERICAN BAR ASSOCIATION
Arizona Society of CPAs
Center for Educational Technology (CETA)
Certified Management Accountants (Canada)
CPA WIRE - home page for the California Society of CPAs
Global Window Main Menu (Business Schools and Culture of Japan)
Illinois CPA Society Members Home Page
Institute of Management Accountants (IMA) --- http://www.imanet.org/ 
MACPA Online
MNCPA
National Society of Accountants (Association)
Oklahoma Society of CPAs
PICPA - Pennsylvania Institute of CPAs
Professional Associations Site Seeker
The IIA Home Page
The Ohio Society of CPAs
TSCPA
Upcoming Workshops (ACS Associated Colleges of the South)
Utah Association of CPAs
CPA Online: Your source for Accounting Information on the Internet
 

Business Firm and Other Directories

 

Career Bookmarks and Threads


2019 Trends in in the supply of accounting graduates and the demand for public accounting recruits ---
https://www.aicpa.org/content/dam/aicpa/interestareas/accountingeducation/newsandpublications/downloadabledocuments/2019-trends-report.pdf?utm_source=mnl:cpald&utm_medium=email&utm_campaign=06Sep2019
Keep in mind that there are many accountants who are not "public accountants" (think of accounting careers in government, business firms, schools, etc.). Having said this, many (certainly not most) of those "non-public accountants" commenced their post-graduate careers for a time as public accountants before going non-public. And not all public accountants are Certified Public Accountants (or chartered accountants) such as all those accountants and accounting firms who offer tax return preparation services but are not licensed to conduct audits ---
https://en.wikipedia.org/wiki/Certified_Public_Accountant

Key insights

Accounting Enrollments Total projected accounting enrollments are down 4% from the highs of 2016, but are still among the highest on record. Master’s enrollments are down 6% from 2016. Racial/ethnic diversity has increased in the 2017-18 academic year. Universities have reported increases in Hispanic or Latino enrollees of 3 and 8 percentage points at the bachelor’s and master’s levels, respectively. Seventy-two percent of bachelor’s of accounting programs and 65% of master’s of accounting programs expect to have the same or higher enrollment in 2019.

Accounting Graduates Projected accounting graduates trended downward in the 2017-18 academic year, with decreases of 4% at both the bachelor’s and master’s levels and overall. In 2018, female accounting graduates outnumbered male graduates at the master’s level. Racial/ethnic diversity has increased in accounting graduates, with a 7 percentage point increase in Hispanic or Latino accounting graduates.

Hiring In 2018, new hires assigned to audit-related services increased by 4 percentage points, while new graduates assigned to taxation declined by 4 percentage points. Hiring of new accounting graduates slowed 11%. Across the last two Trends reports, we have experienced an approximate 30% decline in hiring of new accounting graduates. Non-accounting hires as a percentage of all new graduate hires are up 11 percentage points to 31%. See footnote for more information.

Hiring Expectations Of firms that hired one or more accounting graduates in 2018, 58% expect to hire the same number or more in 2019. Ninety percent of all U.S. CPA fi rms expect to have the same number or more CPAs on staff in 2019.

CPA Examination The number of CPA Exam takers increased in 2015 and 2016 in preparation of the new CPA Exam that launched in April 2017. CPA Examination candidates decreased 7% between 2017 and 2018. The number of CPA Exam candidates who passed their 4th section of the exam decreased 6% between 2017 and 2018.


Some Jobs Nobody Knew About Until 2020 ---
https://www.businessinsider.com/linkedin-emerging-jobs-in-high-demand-in-2020-2019-12?utm_source=Sailthru&utm_medium=email&utm_content=BIPrime_select&utm_campaign=BI Prime 2020-04-08&utm_term=BI Prime Select

Jensen Comment
Actually some of the jobs listed were hot before 2020 and may be temporarily not so hot because of the pandemic.

There are two things to consider when choosing a career --- opportunity versus security. For example, the hot jobs in large accounting firms before 2020 were in consulting whereas the most secure jobs were, and still are, in auditing and tax --- those careers we really call "accounting careers." Everybody suspects consulting careers in accounting firms will bounce back (maybe slowly) after the 2020 pandemic, but auditors and tax accountants have the most secure jobs during 2020. Business firms still are required to have audits and file tax returns during lockdown. They are not required to hire consultants in these hard times.

Another example is academia. A small proportion of accountants (less than 300 per year) leave the real world and enter accounting doctoral programs. Many do so knowing that they will be making a lot less 20 years from now as college professors than if they commenced their own accounting firms that are strategically placed in terms of services and geography. There's a whole lot of opportunity that comes with starting up an accounting firm, but there's no tenure security like the security enjoyed by accounting professors.

For example, I started out my career with the largest CPA firm, then called Ernst & Ernst, in Denver. With the training and experience I was getting from E&E I seriously considered opening my own CPA firm in Aspen back when Aspen was a decadent mountain town filled with decrepit wooden houses --- houses renting out beds for $1.75 per night during ski week ends.    I don't know if my startup firm would've been a success in Aspen, but I have daydreams that I might well have retired as a multi-millionaire.

In reality I chose the secure path and retired comfortably after 40 years as an accounting professor. I've no regrets, because I've never really had to guts to gamble big time.

While on the faculty of Trinity University one of my colleagues did not get tenure. He then started his own tax and audit firm in San Antonio and eventually retired (I'm guessing here) twenty times wealthier than me. Sigh!

 


Chamber of Commerce Guide to Scholarships From Various Sources ---
https://www.chamberofcommerce.org/best-college-scholarships


Racial Profiles of Accountants in the USA (does not include accountants of color other than African Americans)

There are 1,762,000 accountants and auditors in the United States for the year 2008. They represent 1.2% of the total 145,362,000 employed Americans for the same year. 61.1% of American accountants and auditors are female while 10.2% are Asian. This data is based on the The 2010 Statistical Yearbook of the United States Census Bureau ---
http://infomory.com/numbers/number-of-accountants-in-the-us/
For updates see
https://www.census.gov/library/publications/time-series/statistical_abstracts.html
Note that not all "accountants" even go to college. especially those trained to do some accounting functions (think bookkeeping) on the job. To sit for the CPA examination virtually all candidates now must have five years (150 semester credits) including required courses in accounting, auditing, ethics, and business.

Overall participation of African-Americans in the accounting profession continues to be low. According to the U.S. Bureau of Labor Statistics (BLS), African-Americans represent 12.1% of the employed workforce but only 8.2% of the accountant and auditor workforce ---
https://www.journalofaccountancy.com/issues/2019/jan/challenges-continue-for-african-american-accountants.html

Out of 650,000 CPAs in the U.S., an estimated 5,000 are black, according to the National Association of Black Accountants (NABA). The number of black accountants has changed little in the past two decades while the number of their Asian and Hispanic colleagues has grown to more than 12% and 7% of the field ---
https://news.bloombergtax.com/financial-accounting/fifty-years-little-progress-for-black-accountants

The first African American CPA was John Wesley Cromwell, Jr., licensed in 1921. John went on to lead a very successful career after he became the controller of Howard University in 1930
http://gordoncpablog.wordpress.com/2009/04/10/56/

Jensen Comment
When I was Chair of the Accounting Department at Florida State University (1978-1982) there were two major university accounting programs in Tallahassee --- FSU and Florida A&M. The FSU program was heavily geared toward preparing students for the CPA examination, and we did have African American Accounting majors in the FSU program who prepared for and did become CPAs. The Florida A&M (one of the better-known historically black universities)  program at the time was not geared to preparing accounting majors to take the CPA examination. Accounting majors at Florida A&M usually had corporate apprenticeships to become corporate accountants rather than CPAs. These accounting student apprenticeships included major corporations like IBM and Exxon that gave a significant amount of money to historically black universities in general.

I mention this because I think most historically black universities (certainly not all like Howard University) at the time modeled themselves after Florida A&M. I think this reflects African American career tracks in accounting that bypassed the CPA examination entirely. African Americans aspiring to be CPAs mostly chose other universities like FSU.

Footnote:  I've not followed how Florida A&M and other historically black universities changed their accounting curricula and goals since 1982


The PhD Project --- http://www.phdproject.org/

Since 1994, The PhD Project has more than tripled the number of minority business school professors...from 294 to over 960. These individuals are inspiring and encouraging a new generation of business professionals. Click here to learn more about our fifteen years of achievements, real insights on the journey to a PhD degree and the professors who are making a big impact.

Are you ready to be the next role model? Currently, The PhD Project has 400 minority doctoral student members pursuing their dream. Like you, they were professionals or recent grads satisfying their quest for a high level of achievement and answering the call to mentor. With an expansive network of support, The PhD Project is now helping them prepare for success in academia.

Whether you become involved as a doctoral student, professor, participating university, or supporting organization...just become involved. Learn more by visiting the links on the left.

Participation in The PhD Project is available to anyone of African-American, Hispanic American and Native American descent who is interested in business doctoral studies.


Jensen Comment
The PhD Project commenced in the KPMG Foundation under the guidance of Executive Partner Bernie Milano who increasingly devoted more time, money, and sweat to raise money from other accounting firms and from corporations. It has since expanded beyond accounting doctoral programs into other business disciplines.

Above and beyond helping minority students get into selected doctoral programs, Bernie has been dogged about trying every which way to see them to the graduation day endings when a wide array colleges in literally every part of the world are eager to hire them. These students have many more hurdles to cross than most other doctoral students, and Bernie's Dream is to help them across the biggest hurdles without making it any easier for them then all other doctoral students.

Most importantly, the salting of these graduates around the world as role models is increasingly vital to inspiring undergraduate and even K12 minority students to aspire to become practicing professionals and/or doctoral students themselves. These role models are living proof that Berne's Dream can become their dream.

Thank you Bernie, KPMG, and the many other accounting firms and corporations have made Bernie's Dream come true.

How doctoral programs can help minority candidates
Video on the PhD Completion Program --- http://www.youtube.com/watch?v=zWtUTZk1w4Q

Also read about the efforts of the Bill and Melinda Gates Foundation --- Click Here

Added Jensen Rant
Often potential minority candidates for accounting doctoral programs are CPAs. They are strong accounting candidates that are attracted to accounting and turned off by the heavy mathematics, statistics, and econometrics years of study in accountancy doctoral programs that have almost no accountancy. It would help greatly if some of our leading doctoral programs would open up paths of study other than "accountics."

Alternative study and research paths could include paths of case method and field research. Those graduates may never publish in The Accounting Review (which now publishes zero case and field research studies according to the latest report of the TAR Editor), but there are research journals that will publish case and field research studies.

My rants ad nauseum on the narrow mindedness of present accountics doctoral programs are shown at ---
http://faculty.trinity.edu/rjensen/theory01.htm#DoctoralPrograms


In his first President's Message, Gary Previts mentions the Plumlee report on the dire shortage of accountancy doctoral students and provides a link to the AAA's new site providing resources for research and experimentation on "Future Accounting Faculty and Programs Projects" --- http://aaahq.org/temp/phd/index.cfm
Note especially the Accounting PhD Program Info link with a picture) and the PhD Project link (at the bottom):

Welcome to the preliminary posting of a new resource for the community participating in and supporting accounting programs, students, faculty, and by that connection practitioners of accounting. We plan to build this collection of resources for the broad community committed to a vital future for accounting education. This page is an initial step to creating a place where we can come together to gather resources and share data and ideas.
Making A Difference: Careers in Academia
Powerpoint slides created by Nancy BaGranof and Stephanie Bryant for the 2007 Beta Alpha Psi Annual Meeting. Permission granted for use and adaptation with attribution.
GradSchools.com
Accounting PhD Program Info

New Research Projects by the AAA on the Trends and Characteristics of Accounting Faculty, Students, Curriculum, and Programs

Part I: Future of Accounting Faculty Project (Report December, 2007)
Part II: Future of Accounting Programs Project

Part I will describe today's accounting academic workforce, via demographics, work patterns, productivity, and career progression of accounting faculty, as well as of faculty in selected peer disciplines using data from the national survey of postsecondary faculty (NSOPF) to establish trends, and a set of measures will be combined to benchmark the overall status of accounting against (approximately) 150 fields. This project will provide context and data to identify factors affecting the pipeline and workplace.

Part II will focus on expanding understanding of the characteristics of accounting faculty, students, and accounting programs, and implications of their evolving environment. The need for the Part I project illustrates how essential it is for the discipline and profession of accounting that we establish a more standard and comprehensive process for collecting, analyzing, and reporting data about accounting students, doctoral students, faculty, curriculum, and programs.

More Resources on the Changing Environment for Faculty:

The Reshaping of America's Academic Workforce
David W. Leslie, TIAA-CREF Institute Fellow
The College of William and Mary
TIAA Institute Research Dialogue Series, 2007

Jim Hasselback's* 2007 Analysis of Accounting Faculty Birthdates
*Copyrighted – requests for use to J. R. Hasselback

  • Among U.S. Accounting Academics -- 53.4% are 55 or older

From the Integrated Postsecondary Education System (IPEDS)

  • 34.8% of all full-time faculty in the U.S. are non-tenure-track -- nearly 2 in 5 of all full-time appointments
  • Between 1993 and 2003 the proportion of all new full-time hires into "off-track" appointments increased each year from 50% to nearly 3 in 5 (58.6%)
  • Reported in J. Schuster & M. Finkelstein (Fall, 2006). "On the Brink: Assessing the Status of the American Faculty," Thought & Action 51-62.

Supply and Demand for Accounting PhDs

American Accounting Association PhD Supply/Demand Resource Page
A collection of resources, links, and reports related to the pipeline of future Accounting faculty. Highlights include:

  • Report of the AAA/APLG Committee to Assess the Supply and Demand of Accounting PhDs
  • Link to the Doctoral Education Resource Center of AACSB International (Association to Advance Collegiate Schools of Business)
  • AICPA's Journal of Accountancy's article "Teaching for the Love of It"

Deloitte Foundation Accounting Doctoral Student Survey

Survey Results (Summer, 2007)
Data collected by survey of attendees of the 2007 AAA/Deloitte J. Michael Cook Doctoral Consortium

The PhD Project and Accounting Doctoral Students Association

The PhD Project is an information clearinghouse created to increase the diversity of business school faculty by attracting African Americans, Hispanic Americans and Native Americans to business doctoral programs and by providing a network of peer support. In just 12 short years, the PhD Project has been the catalyst for a dramatic increase in the number of minority business school faculty—from 294 to 842, with approximately 380 more candidates currently immersed in doctoral studies.

The PhD Project Accounting Doctoral Students Association is a voluntary association offering moral support and encouragement to African-American, Hispanic-American, and Native American Accounting Doctoral Students as their pursue their degrees and take their places in the teaching and research profession, and serve as mentors to new doctoral students.

PhD Project Surveys of Students, Professors, and Deans
Results of a survey among students to understand the impact of minority professors on minority and non-minority students.

Accounting Firms Supporting the AAA and Accounting Programs, Faculty, and Students

Related Organizations Sharing Interest in Accounting Faculty and Programs

 


Gender Profiles of Accountants in the USA

There are 1,762,000 accountants and auditors in the United States for the year 2008. They represent 1.2% of the total 145,362,000 employed Americans for the same year. 61.1% of American accountants and auditors are female while 10.2% are Asian. This data is based on the The 2010 Statistical Yearbook of the United States Census Bureau ---
http://infomory.com/numbers/number-of-accountants-in-the-us/
For updates see
https://www.census.gov/library/publications/time-series/statistical_abstracts.html
Note that not all "accountants" even go to college. especially those trained to do some accounting functions (think bookkeeping) on the job. To sit for the CPA examination virtually all candidates now must have five years (150 semester credits) including required courses in accounting, auditing, ethics, and business.

 

Eight Special Women of Accounting --- http://www.journalofaccountancy.com/Issues/2007/Aug/EightSpecialWomenInAccounting.htm

Among the AICPA-donated volumes at Ole Miss are two binders containing photographs of individuals appearing in the JofA or at accounting conventions from 1887 to 1979. Of the 446 individuals featured, eight are women—Christine Ross, Ellen Libby Eastman, Miriam Donnelly, Mary E. Murphy, Helen Lord, Helen H. Fortune, Mary E. Lewis and Beth M. Thompson. In a time when the profession was the all-but-exclusive domain of men, they stood out not only because of their gender but in many cases because of their accomplishments and contributions to accounting. Consider that in 1933, slightly more than 100 CPA certificates had been issued to women. By 1946, World War II had changed traditional notions of gender in the workplace, and female CPAs had more than tripled to 360—still a small contingent but, as information gleaned from the AICPA Library indicates, one capable of exerting a strong and beneficial influence on the profession.


Christine Ross

Born about 1873 in Nova Scotia, Ross took New York by storm in the late 1890s. New York state enacted licensure legislation in 1896 and gave its inaugural CPA exam in December 1896. Ross sat for the exam in June 1898, scoring second or third in her group. Six to 18 months elapsed while her certificate was delayed by state regents because of her gender. But she had completed the requirements and became the first woman CPA in the United States, receiving certificate no. 143 on Dec. 21, 1899.

Ross began practicing accounting around 1889. For several years, she worked for Manning’s Yacht Agency in New York. Her clients included women’s organizations, wealthy women and those in fashion and business.

Helen Lord
Lord received her CPA certificate from New York in 1934 and in 1935 joined the American Society of Certified Public Accountants, which merged with the American Institute of Accountants (later AICPA) the following year. In 1937, she was a partner with her father in the New York firm of Lord & Lord and a member of the AIA. She served in the late 1940s as business manager of The Woman CPA, published by the American Woman’s Society of Certified Public Accountants–American Society of Women Accountants. Lord reported the journal then had a circulation of more than 2,200.

Helen Hifner Fortune
Fortune, one of the first women CPAs in Kentucky, received certificate no. 174 in 1935 and was admitted to the AIA the following year. She became a member of an AIA committee in 1942 and by 1947 was a partner in the Lexington, Ky., firm of Hifner and Fortune.

Ellen Libby Eastman
Eastman began her career as a clerk in a Maine lumber company, eventually becoming chief accountant. She studied for the CPA exam at night and became the first woman CPA in Maine, receiving certificate no. 37 dated 1918. She was also the first woman to establish a public accounting practice in New England. Arriving in New York in 1920, Eastman focused on tax work and audited the accounts of the American Women’s Hospital in Greece. In 1925, she was a member of the ASCPA. In 1940, Eastman began working with the law firm of Hawkins, Delafield & Longfellow in New York.

She was outspoken and eloquent regarding a woman’s ability to succeed in accounting. In a 1929 article in The Certified Public Accountant, Eastman recounted her adventures:

One must be willing and able to endure long and irregular hours, unusual working arrangements and difficult travel conditions. I have worked eighteen out of the twenty-four hours of a day with time for but one meal; I have worked in the office of a bank president with its mahogany furnishings and oriental rugs and I have worked in the corner of a grain mill with a grain bin for a desk and a salt box for a chair; I have been accorded the courtesy of the private car and chauffeur of my client and have also walked two miles over the top of a mountain to a lumber camp inaccessible even with a Ford car. I have ridden from ten to fifteen miles into the country after leaving the railroad, the only conveyance being a horse and traverse runners—and this in the severity of a New England winter. I have done it with a thermometer registering fourteen degrees below zero and a twenty-five mile per hour gale blowing. I have chilled my feet and frozen my nose for the sake of success in a job which I love. I have been snowbound in railroad stations and have been stranded five miles from a garage with both rear tires of my car flat. I have ridden into and out of open culvert ditches with the workmen shouting warnings to me. And always one must keep the appointment; “how” is not the client’s concern.
 

Mary E. Murphy
A long-lived pioneer, Murphy (1905–1985) lectured, researched and taught in the United States and abroad, retiring in 1973. The Iowa native earned her bachelor of commerce degree with a major in accounting from the University of Iowa in 1927, then obtained a master’s in accountancy in 1928 from Columbia University Business School. In 1938, she received a doctorate in accountancy—only the second woman in the United States to do so—from the London School of Economics.

In 1928, Murphy began working in the New York office of Lybrand, Ross Bros. & Montgomery. Two years later, she took the CPA exam in Iowa and received certificate no. 67, to become the first woman CPA in Iowa. She joined the AIA in 1937.

Following her public accounting stint, she served for three years as the chair of the Department of Commerce at St. Mary’s College in Notre Dame, Ind. Murphy also was an assistant professor of economics at Hunter College of the City University of New York until 1951. In 1952, she received the first Fulbright professorship of accounting, with assignments in Australia and New Zealand. In 1957, she was appointed as the first director of research of the Institute of Chartered Accountants in Australia. Murphy retired in 1973 from the accounting faculty at California State University.

She published or collaborated on more than 20 books and 100 journal articles and many book reviews and scholarly papers. From 1946 to 1965 she was the most frequently published author in The Accounting Review. Murphy investigated the role of accounting in the economy, made the case for accounting education improvements and paved the way for other aspiring women accountants to prosper. More than half her publications explored international accounting, often advocating standardization. She also emphasized accounting history and biographies.

Mary E. Lewis
Lewis received California CPA certificate no. 1404 in 1939. She was admitted to the AIA that year and by 1947 had her own firm in Los Angeles.
 

Beth M. Thompson
Thompson worked as the office manager in the Kentucky Automobile Agency she and her husband, Charles R. Thompson, owned. After closing the car business, they moved to Florida, where she worked for an accounting firm. She passed the CPA exam in 1951 with the encouragement of her husband and opened her own accounting business in Miami. In 1955, Thompson was one of only 900 women CPAs and the only female president of a state association chapter—the Dade County chapter of the Florida Institute of CPAs.

Miriam Donnelly
From 1949 to 1955, Donnelly was head librarian of the AIA library. (In 1957, the AIA was renamed the AICPA.) She began her career with the library as assistant librarian and cataloger in 1927, after working for two governmental libraries and the New York Public Library.

 

History of women accountants in the 1880. US Federal Census ---
http://repository.usfca.edu/cgi/viewcontent.cgi?article=1001&context=acct

Christine Ross (The First Woman CPA) --- Click Here
http://books.google.com/books?id=W8Z2a53DJ2cC&pg=PA151&lpg=PA151&dq=%22First+Woman+CPA%22&source=bl&ots=irXssMWzFN&sig=0AneWv1qO-MB6_ixatHq-mMerRQ&hl=en&sa=X&ei=N8o8UY3XBYrK0AHngoCYBw&ved=0CDgQ6AEwAQ#v=onepage&q=%22First%20Woman%20CPA%22&f=false

Mary Jo McCann (First Woman CPA in Kansas) ---
http://www.kscpa.org/about/news/119-mary_jo_mccann_first_woman_cpa_in_kansas_passes

Bertha Aldrich (First Woman CPA in California) --- http://boards.ancestry.com/surnames.aldrich/600/mb.ashx

Accounting Reform (search for women) --- http://en.wikipedia.org/wiki/Accounting_reform

American Society of Women Accountants --- http://en.wikipedia.org/wiki/University_of_Cambridge#Women.27s_education

Accounting and Financial Women's Alliance --- http://www.afwa.org/

Accounting History Libraries at the University of Mississippi (Ole Miss) --- http://www.olemiss.edu/depts/accountancy/libraries.html
There are many items pertaining to accounting women in history, especially in the Accounting Historians Journal

Ruth Andersen, First Woman on the Board of a Big Four Accounting Firm --- http://en.wikipedia.org/wiki/Ruth_Anderson_%28accountant%29

Cynthia Cooper (Internal auditor who blew the whistle at WorldCom) --- http://en.wikipedia.org/wiki/Cynthia_Cooper_%28accountant%29

Lynn Brewer was never enough of a player to even mention in my threads on the Enron scandal
The foul mouthed Sherron Watkins was the significant whistleblowers at Enron
http://faculty.trinity.edu/rjensen/FraudEnronQuiz.htm#10

Grace Andrews (early mathematician and accountant in Barnard College) --- http://en.wikipedia.org/wiki/Grace_Andrews_%28mathematician%29

Patricia Courtney (IRS agent and professional baseball star) --- http://en.wikipedia.org/wiki/Patricia_Courtney

Patrecia Barringer (Tax accountant, auditor, and professional baseball star) ---http://en.wikipedia.org/wiki/Patricia_Barringer

Helen Nordquist (Telephone operator, accountant, and professional baseball star) --- http://en.wikipedia.org/wiki/Helen_Nordquist

Rita Lee (Accounting Student Tennis Star) --- http://en.wikipedia.org/wiki/Janet_Lee

Diane Cummins (Canadian Accountant Track Star) --- http://en.wikipedia.org/wiki/Diane_Cummins

Sue Hearnshaw (British Chartered Accountant and Long Jump Star) --- http://en.wikipedia.org/wiki/Sue_Hearnshaw

Betty Wagner Spandikow (Accountant Who Became an Advocate of Breast Feeding) --- http://en.wikipedia.org/wiki/Betty_Wagner_Spandikow

Jennifer Archer (Oil and Gas Accountant Turned Fiction Writer) --- http://en.wikipedia.org/wiki/Jennifer_Archer

 


'Death by a Thousand Cuts': Why Are Women Leaving Big Law? ---
https://www.law.com/americanlawyer/2019/11/14/death-by-a-thousand-cuts-why-are-women-leaving-big-law-405-48434/?slreturn=20200429140136


Underemployed:  41% of Recent Grads Work in Jobs Not Requiring a Degree ---
https://www.insidehighered.com/quicktakes/2020/02/18/41-recent-grads-work-jobs-not-requiring-degree?utm_source=Inside+Higher+Ed&utm_campaign=d5b88a680c-DNU_2019_COPY_01&utm_medium=email&utm_term=0_1fcbc04421-d5b88a680c-197565045&mc_cid=d5b88a680c&mc_eid=1e78f7c952

Jensen Comment
This seems high when you think of all those who are in jobs requiring a degree (think nursing) but are not employed full time plus all those who are not employed at all while focusing on raising a young family.
This also seems high given the low unemployment rates in the present economy.
One issue is that some lower-level jobs (think working for Amazon) pay better and have more benefits (medical insurance, paying graduate school tuition, and unemployment insurance) relative to working in so-called "higher-level" jobs.
In a given a given discipline there may be jobs available that are not attractive because of location (think having to move to an expensive city) or having to live apart from a spouse. In accounting some of my graduates in San Antonio could not find local jobs in a Big 4 accounting firm when all sorts of openings were available in the Big 4 San Francisco offices). Try living on a starting accountancy wage in San Francisco.

The advantage of accounting was that even in a graduate could not get into a local Big 4 office in San Antonio there were usually other accounting jobs available in San Antonio if you scratched around hard enough. Those accounting jobs, however, usually did not provide the benefits of expensive formal training and student loan forgiveness provided by the Big 4.


How to Mislead With Statistics

Warning Signs about the Future Supply of Accounting Graduates ---
https://www.cpajournal.com/2019/10/11/warning-signs-about-the-future-supply-of-accounting-graduates/

Jensen Comment
The article raises concerns that accountancy may be losing ground to some other college majors. However, this is a bit misleading since virtually all college majors are in trouble because of aggregate college enrollment declines.

The Great Enrollment Crash:  Students aren’t showing up. And it’s only going to get worse ---
https://www.chronicle.com/interactives/20190906-Conley?utm_source=cr&utm_medium=en&cid=cr&source=ams&sourceId=296279

. . .

The handwriting (for enrollment declines) was probably on the wall, as the national, first-year discount rate had already crested the 50-percent mark; according to the National Association of College and University Business Officers (NACUBO), it was 39 percent as recently as 2008. This steep rise is significantly fueled by colleges that have adopted the airline pricing model: If the plane is going to fly anyway (and if there are still spots open), no harm in getting even pennies on an otherwise unsold ticket. For colleges discounting at or above the national figure, this is unlikely to be a sustainable strategy. However, in the meantime, they are no doubt pulling students away from colleges that expect full-pay or better-pay students to foot the true bill. In short, price sensitivity is a structural reality when supply (number of college beds and desks) is greater than demand.

. . .

Disruption is here to stay. Campus leaders cannot change the wind direction, but they can trim the institutional sails. For too long, the admissions dean or enrollment manager had the lone hand on the tuition-revenue tiller. Now, it’s all hands (campus leadership, faculty, staff, trustees, etc.) on deck, pulling the tactical lines in a coordinated, strategic fashion. Given the perilous voyage ahead, what will your institution’s mix of majors, money, and mission be?

Bill Conley is vice president for enrollment management at Bucknell University.

To the extent that accountancy may be may be losing more than it's share of majors in 2019 the cause may be partly do to the 2019 stage in the economic cycle. The USA is still at the crest of a long boom wave with very low unemployment. When the job market is hot in competing disciplines accountancy typically loses some majors to hot job markets in information technology, science, and finance. However, in recessions those job markets cool down much more dramatically than tried and true accountancy that sees less variation in the economic cycle. In bad times business firms still need audits and must file their tax returns.


Women and Girls in Science

Wogrammer --- https://wogrammer.org/

Emerging Female Scientists --- https://emergingfemalescientists.com/

Lesson Plan: Chien-Shiung Wu, Chinese Nuclear Physicist ---
www.aip.org/history-programs/physics-history/teaching-guides-women-minorities/chien-shiung-wu-chinese-nuclear-physicist

Women in Science, Technology, Engineering, and Mathematics: Quick Take ---
www.catalyst.org/research/women-in-science-technology-engineering-and-mathematics-stem

Women in Science --- www.colorincolorado.org/booklist/women-science

Bob Jensen's threads on women in the professions ---
http://faculty.trinity.edu/rjensen/Bookbob2.htm#Women


How Are Public Accounting Salaries Stacking Up for 2020?
https://goingconcern.com/public-accounting-salaries-2020/
One problem in reporting salaries is that so many public accountants own their own practices or are in small partnerships. Many have no salaries and instead rely on profits. I have a CPA friend who did not finish his Ph.D. and was denied tenure. However, he was a great CPA who started up his own firm, specialized in accounting and tax services for wealthy physicians and Texas ranchers, and made a fortune. However, before he retired he had no "salary" to report in surveys like the one above. Similar problems arise when reporting the "salaries" of physicians and lawyers who own their own practices or share partnership profits.

Jensen Comment
Accounting major numbers often decrease in times of economic prosperity with the best example arising in the roaring 1990s when so many college students became finance majors (intending  make millions on Wall Street before the Enron bubble burst in 1999) and computer science majors (at a time when new technology firms were sometimes offering million-dollar signing bonuses in stock options that later turned worthless when the technology bubble burst). In recessions many students find their way to accountancy because of the relative stability of accountancy job offerings.

Becoming a CPA became somewhat more difficult and expensive as states across the USA commenced to require 150 credits to sit for the CPA examination with most aspiring CPAs today now getting masters degrees because of the 150-credit requirement. Of course accounting graduates not aspiring to be CPAs can still graduate in four years and enter the job market as non-CPAs. 

The problem with non-public accounting entry level jobs (think FBI agents and corporate accountants)  is that experience is often required, whereas large CPA firms have a tradition of hiring top graduates who do not yet have experience beyond very brief internships while they are still in college. There's a huge attraction for undergraduates in accounting to go on to get masters degrees and start out in public accounting firms. Their intent is to gain experience needed in public accounting to land those non-public accounting job offers. Many public accountants do in fact end up jumping ship to work for audit and tax clients of CPA firms. CPA firms even consider them as their "alumni."

One exception is the IRS that, unlike the FBI and other government agencies, will hire inexperienced accounting majors and train them for their jobs. The IRS, however, in recent years has been hobbled by declining budgets.

Because of the short supply (slightly over 200 per year)  of new accounting Ph.D.s hoping to get tenure-track jobs, new Ph.D.s in accountancy are often the highest-paid new assistant professors on campus. However, one of the factors holding down the supply of new accounting Ph.D.s is the requirement by accounting doctoral programs that applicants have professional accounting experience. Whereas STEM majors in science can enter doctoral programs immediately after earning BS degrees, this is not usually the case for new accounting doctoral students ---
http://www.jrhasselback.com/AtgDoctInfo.html


Hi XXXXX

I'm looking forward to meeting you face-to-face. I taught accounting and did accounting research for 40 years at four different universities (Michigan State, University of Maine, Florida State University, and Trinity University in Texas) which means that I'm both old and somewhat experienced at guiding students into and out of careers.

Before we meet I would like to have you browse my threads on careers at 
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers 
There's too much here to read in detail, but do focus in on available discussions of advantages and disadvantages of careers.
I apologize for some broken links in this archive. It has evolved over the past 20 years, and one thing is certain about Web archives is that links are not always permanent.
I also apologize that the above archive is more like a scrapbook built on cut-and-paste rather than a better designed book. I have many such "scrap books" linked at my homepage --- 
http://faculty.trinity.edu/rjensen/bookbob.htm 

What I think is one of the most important considerations is to choose a career that leads to varied opportunity tracks. Then if you end up where you're unhappy there are other choices. For example, physical therapy is often a poor career track because there are so few opportunities for finding other tracks from that specialty. My ophthalmologist makes a lot of money replacing cataracts day in and day out, but he's so bored that he's getting an online MBA degree and thinking about another much lower paying career.

Graduates these days face many uncertainties that were not a factor for my generation. Machines (e.g., robots) of the future will displace tasks and entire jobs in ways that we can barely imagine. For example, it's obvious that automation is already replacing warehouse workers. Not so obvious is that technology (such as chatbots) will replace teachers, especially college-level teachers and trainers.

Accounting is still a good major for a variety of reasons, including the fact that there's still high demand for accountancy graduates relative to supply. More importantly there are highly varied opportunity tracks available five or ten years down the road after graduation. The most typical path for top graduates (say the top third of a graduating accounting class) is to go to work for a large public accounting firm for 5-10 years and then take advantage of job offers that usually come from clients of that firm. The most typical opportunities for graduates in that public accounting firm are auditing tracks, tax tracks, or accounting information systems tracks (computers and networking in accounting systems). Did you know that the FBI is always seeking accountants due to the explosion of white collar crime? However, the FBI is usually looking for accountants with some professional experience.

Since top executives in nearly every company need to understand accounting, accounting is often a fast track to the executive suite. Some accountants prefer to work on their own as sole-practitioners of partners of very small and often rural firms.

At this point there's a lure of technology such as graduating in information technology. I think it's better to minor in information technology or computer science than to major in such a narrow specialty. The problem is that jobs in IT or computer programming are so specialized that there's not a great opportunity for opportunities in the executive suite or in higher level professional services.

Another advantage of accounting is that if you decide after getting a few years experience as an accountant that you want to become an accounting professor, you will discover that choosing accounting as a specialty is probably the best choice a professor can make. There's such a shortage of accounting professors that they are usually the highest paid professors on campus. Secondly, they can choose to teach and do research at most any college since virtually every college is looking to hire accounting professors. Also note that getting a Ph.D. in accounting is free in nearly every university offering accounting Ph.D. degrees. Tuition is not only free, you will get an allowance for room and board. But it's hard to get into an accounting Ph.D. program unless you have professional experience as an accountant.

There are always drawbacks to any career track. For example, accounting graduates often earn lower starting salaries than some other graduates like chemical engineers. However, accounting firms provide important benefits such as expensive training, experience, and varied client exposure that, in turn, lead to great opportunities. Accounting is a tougher major than most other business majors, requires more specialized courses, and even requires a fifth year not required for most other business majors. Masters in accounting programs sometimes even take slightly more than a year such as three semesters. 

When you major in engineering you're often trapped into engineering work. As an accountant you typically have more opportunities beyond accounting work such as becoming a finance officer or even a CEO.

If you elect to major in accounting I recommend doing so at a flagship university in a state. For example, majoring in accounting at the University of Maine or the University of New Hampshire is preferable to majoring in accounting at the University of Maine in Farmington or Plymouth State University. When you visit a campus before making a decision about where to go, ask what proportion of the graduating accounting class last year got offers from the Big Four accounting firms. The Big Four recruit heaviest in the best accounting education programs in any state in the USA.

There is such a shortage of accounting professors that the smaller universities in a state usually cannot afford very good accounting faculty. 

The top accounting programs in the USA are listed in the first table you encounter at 
http://www.jrhasselback.com/FacDir/A2016-2017.pdf 
This is a listing of the accounting programs that also have accounting Ph.D. programs. The numbers in that table are the numbers of accounting Ph.D. degrees awarded.
Other accounting programs are listed in this directory. Note the number of accounting faculty on any campus you're considering. If there are fewer than ten accounting faculty the larger accounting firms are probably not recruiting for graduates on that campus.

Feel free to email your questions to me at any time.

Bob Jensen

Best Accounting Major Jobs And Careers ---
https://www.zippia.com/accounting-major/


Across nearly three decades there have been over twice as many philosophy Ph.D. graduates as there are job openings for philosophers in academia ---  
http://www.apaonline.org/?page=nonacademic 

Many humanities Ph.D.s, including some in philosophy, have chose to teach management and marketing in business schools after taking the AACSB's Bridge Program ----
http://www.aacsb.edu/bridge/  


2019 Accounting Internship Programs, Ranked ---
https://goingconcern.com/2019-accounting-internship-programs-ranked/

The best-paid and most promising internship in every field, according to more than 13,000 interns who know ---
https://www.businessinsider.com/best-internships-every-field-vault-survey-2018-10

Jensen Comment
Accountancy internships are usually less than two months and do not particularly pay well. The good news is that there are a lot of internships available, and accounting interns usually return to complete their masters degrees with job offers in hand.


How to Mislead With Statistics
The 25 best high-paying jobs in America for 2018 ---
https://www.businessinsider.com/best-highest-paying-jobs-in-america-for-2018-2018-1
Jensen Comment
By now you may be weary of my repeated criticisms of job rankings based on compensation. But there are a few new twists in my criticisms below.
I would be less critical if these were starting salaries. But one does not become a "Manager" immediately after graduation. Becoming a manger nearly always requires years of experience. You must accordingly throw in years of experience into the other job categories in this study you run into all sorts of problems. One is the problem of profit sharing. Usually partners or shareholders in a LLC corporation have profit sharing that makes compensation comparisons with salaries very misleading. For example, a partner in a law firm is compensated much differently than an experienced lawyer who has not yet been admitted to the partnership. And partner compensation varies a great deal based upon specialty and rewards for bringing in and maintaining clients. And there are huge issues regarding deferred compensation of various types. Doctors and lawyers for example may take lower salaries than others while letting the values of their shares in the partnership increase annually by larger amounts.

My point here is that professionals commonly have equity interests in their firms such that there are choices regarding how fast equity values increase versus how fast they deplete the value with current "salaries."

In the above rankings physicians are the big winners but it's not clear how some expenses are factored into the comparisons. Some physicians (especially surgeons and anesthesiologists) must pay their own enormous malpractice insurance premiums whereas others have those premiums paid by others (such as hospitals or employers). And those premiums vary a great deal in different parts of the nation such as in Mississippi having very high premiums and in Texas having very low premiums due to a constitutional amendment capping punitive damages.

Some job categories have much more statistical variance and kurtosis than other job categories. For example, the variance in compensation for financial advisors is enormous. Much of it depends upon the wealth of clients and established reputations of employers.

My point here is that a college student who chooses to track into a financial advising career faces enormous income uncertainty relative to a student who tracks into most any physician specialty.

This idea of variance is extremely important in terms of upper limits of success. Sure a nurse anesthetist may have a median salary of $160,270, but I don't know of any nurse anesthetist who make over $2 million per year like some lawyers.

The outcome for political scientists surprised me in the above study since political scientists in academe (where most of them are employed) are not usually paid notably more than other social scientists, physical scientists, computer scientists, and business professors. There is also an enormous variation in academic salaries between professors in prestigious universities versus those thousands of colleges further down the line that struggle to meet payroll expenses.

I could carry on with my other canned complaints about compensation rankings in general, but I think you catch my drift. I think that rankings on the basis of median compensation without added disclosures of sampling populations, variances, and kurtosis are highly misleading for young people choosing careers.

Bob Jensen's career helpers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


Four great reasons to switch your career and become an accountant ---
https://www.businessinsider.com/sc/accounting-career-switch-reasons-2018-9

Jensen Comment
The "Pay is Great" Reason 2 is misleading. Except where accountants own their own firms they are not likely to receive high-end compensation as spectacular as many other professionals like physicians, architects, etc. The incomes of lawyers are difficult to compare, because there is such variance in lawyer earnings.

And starting salaries of accounting graduates are generally lower than those of actuaries, engineers, computer scientists, and pharmacists. Students are drawn to accounting by the availability of entry-level jobs not requiring prior experience. More importantly they are drawn into those jobs because of the valuable training and experience received and the ability to then branch off into so many, many specialties in both the private and public sectors. Years ago I read where, due to an increase in white-collar crime, the FBI hired more experienced accountants than experienced lawyers. That may have changed today due to the FBI's needs for experienced technology experts.

Accounting is also one of the best tracks to the executive suites. CEOs and CFOs often rose up from accounting degrees. In many of these instances, however, accountants took on other specialties, especially finance and marketing, along the way up.

Accounting, like law and medicine, is attractive due to both rural and urban opportunities. Graduates in computer science and engineering may find slim pickings for careers in small rural communities. However, those communities still need teachers, nurses, physicians, lawyers, tax accountants, and small business accountants.

And because of supply versus demand new accounting Ph.Ds are often the highest-paid $125,000+ new faculty on college campuses ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingFaculty 


How to become a CPA in Texas
https://discoveraccounting.org/become-a-cpa/texas/


The College Board: Big Future: College Search (helpers for choosing a college) --- https://bigfuture.collegeboard.org/college-search

Helpers in Choosing a College from the Chronicle of Higher Education --- http://collegerealitycheck.com/en/
Note the "Find Colleges" button

The 50+ Best Websites for Job Searches ---
http://careersherpa.net/50-best-websites-for-job-search-2017/

From the Chronicle of Higher Education
Search for Job Openings in Higher Education ---
https://chroniclevitae.com/job_search/new

Resources for Career Counselors --- http://www.iseek.org/guide/counselors/counselorresources.html

Higher Education Recruitment Consortium --- http://www.hercjobs.org/

Chegg Center Career Advice --- https://www.chegg.com/career-center/advice

Be an Actuary --- http://www.beanactuary.org/

Journal of Hotel & Business Management --- http://www.omicsgroup.org/journals/hotel-business-management.php

American Sociological Association: Facts on Jobs and Careers --- http://www.asanet.org/employment/factsoncareers.cfm

STEM Career --- http://stemcareer.com/

The Bloomberg Job Skills Report 2016: What Recruiters Want ---
http://www.bloomberg.com/graphics/2016-job-skills-report/?cmpid=BBD020916_BIZ

Reddit Career and Job Application Helpers ---
https://www.reddit.com/

Current Job Openings in Accounting

 

http://www.mastersinaccounting.info/jobs/

  • accounting/finance job openings across the 50 States, updated daily

 

http://www.mastersinaccounting.info/salary/  

  • accounting job information salary per State and region
  

Becoming an FBI Agent --- Part 1
https://www.fbi.gov/news/stories/becoming-an-agent-part-1

Momas, Don't Let Your Babies Grow Up to Be Appraisers ---
https://www.magzter.com/article/Business/Bloomberg-Businessweek/Mamas-Dont-Let-Your-Babies-Grow-Up-To-Be-Appraisers

Momas, Don't Let Your Babies Grow Up to Be Cowboys (Skip the Add) ---
https://www.youtube.com/watch?v=nlIEoKg8ZQg


Seven TED talks for accountants ---
https://www.journalofaccountancy.com/newsletters/2017/nov/7-ted-talks-accountants.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=29Nov2017


Only one in five people take up this incredibly generous pension to retire at 40 (from the USA military) ---
https://qz.com/929153/only-one-in-five-people-take-up-this-incredibly-generous-pension-to-retire-at-40/

Life in the military isn’t easy, but if you serve long enough the financial rewards, at least, are great. The US military offers very generous pension benefits—after 20 years of service, members can retire with 50% of their final salary for the rest of their lives.

Since that allows most to retire around age 40, the payouts may last for a very long time (and they are also adjusted for inflation). In 2015, the US military paid out $57 billion in pension benefits (pdf) to more than 2 million veterans, or nearly 10% of its annual budget.

Continued in article

Jensen Comment
The question should be how much salaries would have to be raised to offset the attraction of benefits from serving in the USA military. Great benefits from serving in the military are training (think mechanics, electronics, health care, and pilot training), medical benefits, college financing  (mostly by those who only serve a few years), and pension benefits (used by those who serve 20-30 years) that pay even when you take on a private sector job at around age 40-50. Odds of battle injury or death are miniscule, but other parts of military life suck such as low pay, absence from family, stress, and constant relocation of assignments. My cousin's grandson got great training for the private sector as a senior helicopter mechanic.

For many, however, a military career is a great entry-level career. Many that want this career badly are rejected for the all-volunteer service.


Why Are African American Students Still Not Majoring in Accounting? ----
https://www.cpajournal.com/2018/01/08/african-american-students-still-not-majoring-accounting/ 


From the CFO Journal's Morning Ledger on March 7, 2017

Companies grapple with an accountant shortage as regulations change, Vipal Monga writes in today’s Business & Finance section. Businesses are increasingly scrambling to find regulatory experts or “technical accountants” who understand rules and ensure compliance amid accounting changes to the generally accepted accounting principles that govern U.S. financial reporting.

Increasingly, companies are competing for talent with major accounting and audit firms that had once served as a reliable pipeline for corporate finance back offices. Some firms are attempting to change their work culture to retain talen

The shrinking pool of available accountants is putting pressure on companies as they begin to apply new Financial Accounting Standards Board rules. The changes affect the way firms book revenue and report the value of leases held on their balance sheets.

The rules don’t take effect right away: Public companies must apply new revenue standards for fiscal years beginning after Dec. 15, and new lease rules begin in 2019. Still, corporations must assess and revise two years of past financial reports. “There is a demand for technical expertise, absolutely,” said Robert Grecco, controller at luxury fashion brand Ralph Lauren Corp. “And that demand is only going to increase.”


From the Scout Report on December 16, 2016

New Study Uncovers Alumni Attitudes Toward College Career Services
Students Who Get Better Career Guidance Remember College More Fondly
http://www.npr.org/sections/ed/2016/12/15/505005019/getting-good-career-advice-will-make-your-college-experience-better

Only 17 percent of recent graduates say career centers are 'very helpful'
https://www.insidehighered.com/news/2016/12/13/only-17-percent-recent-graduates-say-career-centers-are-very-helpful

Gallup-Purdue Index Report 2016
http://www.gallup.com/reports/199172/gallup-purdue-index-report-2016.aspx

Colleges Really Need to Rethink the Career Advice They Deliver
https://www.theatlantic.com/education/archive/2016/12/colleges-really-need-to-rethink-the-career-advice-they-deliver/510647

O*NET OnLine
https://www.onetonline.org

U.S. Bureau of Labor Statistics: Resources for Jobseeker or Worker
https://www.bls.gov/audience/jobseekers.htm


 "Women Dominate College Majors That Lead to Lower-Paying Work," by Sarah Green Carmichael, Harvard Business Review, April 19, 2017 ---
https://hbr.org/2017/04/women-dominate-college-majors-that-lead-to-lower-paying-work?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date&spMailingID=17048645&spUserID=MTkyODM0MDg0MAS2&spJobID=1001676407&spReportId=MTAwMTY3NjQwNwS2

The pay gap between men and women in the U.S. — the 80-ish cents on the dollar that the average woman earns for every dollar the average man does — has narrowed at such a slow pace that it would be unfair to glaciers to call it glacial.

When people talk about the pay gap, what this phrase typically means is that a woman is being paid less than a man for doing the same work. A well-known example is Lilly Ledbetter, who had worked in a tire factory for almost 20 years when a colleague left her an anonymous note revealing she’d been earning thousands of dollars less than men in the same position.

But these kinds of pay gaps — same role, same experience, same firm — account for only a portion of the 20% pay gap between men and women, a gap that’s much worse for women of color. Large chunks of the gap can be accounted for by differences like industry and role. And at the root of these differences, according to a new research report by Glassdoor, could be college majors.

Examining 46,934 resumes shared on Glassdoor by people who graduated between 2010 and 2017, the researchers looked at each person’s college major and their post-college jobs in the five years after graduation. They then estimated the median pay for each of those jobs (also using Glassdoor data) for employees with five years of experience or less. Their key finding: “Many college majors that lead to high-paying roles in tech and engineering are male dominated, while majors that lead to lower-paying roles in social sciences and liberal arts tend to be female dominated, placing men in higher-paying career pathways, on average.”

 

When I spoke with Andrew Chamberlain, Glassdoor’s chief economist, he explained that one of his hopes with this research was to give all college students more insight into which majors pay the most, so that they can make informed decisions about which major they choose. He’s also hoping that “by showing young women the facts about what they could potentially earn, more of them might choose a physics or engineering major,” and that more of them will persist in those majors even if they’re the only woman in some of their courses. 

That is a noble goal, but it’s one that I was skeptical would work. In our society, maleness and prestige often go together.

Jobs that are unconsciously coded male have more prestige and pay than jobs that are coded female. This is why a custodian or a janitor (usually a man) gets paid more than a maid or a “cleaning lady” (categorically female — have you ever heard of a “cleaning gentleman”?). And it’s one of many reasons that male factory workers who get laid off don’t rush into “pink-collar” jobs — not only do these jobs pay less, but they also are inescapably lower prestige. Corporate America is not immune to these trends: HR, once considered the most glamorous department to work in, has since become highly feminized, and must now fight for respect at the C-suite table.

A series of studies have shown just how tightly gender, prestige, and pay are tangled. Researchers have found that the pay gap is not as simple as women being pushed into lower-paying jobs. In effect, it is the other way around: Certain jobs pay less because women take them. Wages in biology and design were higher when the fields were predominantly male; as more women became biologists and designers, pay dropped. The opposite happened in computing, where early programmers were female. Today, that field is one of the most predominantly male — and one of the highest paying. The wage gap remains the widest at the top of the income ladder, where jobs tend to be male dominated.

I suspect that our assumptions about what type of work is skilled or specialized is also subtly gendered, although I’m not aware of any research examining this specific question. But why do we assume that STEM subjects are “harder” than subjects that are more person- or language-oriented? Aren’t human beings just as complex as code? When I posed my hypothesis to Chamberlain, he was skeptical. He pointed out that if you write bad code, the program probably just won’t work. Human beings are less rigid, or just have lower standards. When it comes to writing, for example, “many people are willing to accept mediocre work.” (Sigh.) There’s also the pesky issue of market forces and the skills that society values. Music may be a highly technical field, but it’s a low-paying one.

Nonetheless, the Glassdoor data does show that even when women and men study the same subject, women sort into lower-paying jobs when they get out of school. For example, among female biology majors, the top post-college jobs are lab technician, pharmacy technician, and sales associate. Among the male graduates, the most common jobs are lab tech, data analyst, and manager. Since the latter jobs are higher paying, the pay gap persists even among people who majored in biology. The data shows similar gaps for mathematics majors: Among both genders, data analyst and generic analyst roles were popular. But men were much more likely to be found in sexy data scientist roles, and so the average male math major earns $60,000 a year in his first five years out of school, while the average female math major earns only $49,182. Other research has shown that more of the gender wage gap comes from within-industry gaps than between-industry gaps.

When I asked Chamberlain why women aren’t getting those higher-paying industry jobs, despite their qualifications, he said his data didn’t indicate a reason. It could be driven by the behavior of the job seeker. Perhaps men feel pressured to find and take the highest-paying job they can get, while women think holistically about work-life balance and flexibility. Perhaps companies are fast-tracking men into prestigious, higher-paying roles. Or perhaps companies are being too narrow in what they’re looking for. For instance, if you’re trying to hire a data scientist and you tell your recruiter to look only at statistics majors, you’ve immediately narrowed your pool of applicants to mostly men. If companies looked at skills rather than credentials, they might find that there are women trained in sociology, biology, or anthropology who are just as handy with a spreadsheet.

Continued in article

Law School Bubble Bursts:  As hard as it is to believe, some of these lawyers lied
Inside Higher Ed:  Law Schools Flagged for Job Data ---
https://www.insidehighered.com/news/2016/11/01/initial-audit-finds-flaws-some-law-school-employment-reporting-practices?mc_cid=16d4a56a74&mc_eid=1e78f7c952

"NY Times: A Majority Of Law Schools Are Scamming Students And Taxpayers," by Paul Caron, TaxProf Blog, October 25, 2015 ---
http://taxprof.typepad.com/taxprof_blog/2015/10/ny-times-a-majority-of-law-schools-admit-unqualified-students-charge-outrageously-high-tuition-and-s.html

Law Schools 2011-2015
Enrollment, Faculty Down 60%, Tuition Up 40%

http://taxprof.typepad.com/taxprof_blog/2016/02/cooley-craters-60-drop-in-enrollment-faculty.html

Trustees at Indiana Tech in Fort Wayne have voted to close the institution's law school at the end of June 2017 ---
https://www.insidehighered.com/quicktakes/2016/11/01/indiana-tech-shutter-law-school?mc_cid=16d4a56a74&mc_eid=1e78f7c952

The Future Is ‘Bleak’ For Law Students And Law School Graduates ---
http://abovethelaw.com/2016/05/the-future-is-bleak-for-law-students-and-law-school-graduates/?rf=1

Legal education has been getting bad press since the start of the Great Recession, and perhaps for good reason. While tuition skyrocketed, often leaving graduates with six-figure debt loads, quality job prospects seemingly disappeared. The jobs that were left had salaries that were too low to service those graduates’ tremendous debt loads. Prospective law students began to hear about new lawyers’ joblessness and indebtedness, and stopped applying. This prompted many law schools to lower their admissions standards in the hope of filling their seats. This, in turn, brought about wave after wave of record-setting failure rates on bar exams nationwide.

Now that class sizes are smaller, employment statistics seem to look “better,” and law school administrators across the country have started spreading the word that law school is once more a good investment. But is it really?

Law students and graduates have started using Whisper, an anonymous messaging service, to tell the world about legal education and what it has done to them. These messages are representative of the general tone of posts having to do with law school.

Continued in article

Bob Jensen's threads on the rise and fall of law schools ---
http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#OverstuffedLawSchools


The Best 50 Colleges for African Americans ---
http://time.com/money/4282512/best-colleges-essence-money-african-americans/?xid=newsletter-brief

Jensen Comment
Virtually all the very top non-profit universities now offer totally free education applicants below the poverty line. Most also offer free tuition for children of families earning less than $60,000 or thereabouts. These are the best deals since top grades are easy to earn in those universities like Harvard and Princeton (think grade inflation where the median grades in most courses is an A or A-) and degrees from those top universities are keys to the kingdom ---
http://faculty.trinity.edu/rjensen/Assess.htm#RateMyProfessor

Most flagship state-supported universities now make terrific deals to African Americans with high SAT or ACT scores. Since virtually all scholarships are need based children from low income families are given priorities for scholarships.

African American athletes get tremendous financial deals, special tutors, and other attractions such as a path toward professional sports in colleges that excel in athletics. However, athletics and scholastic performance do not mix well in general. This is mostly because athletics takes so much time and attention away from courses, although sometimes athletes have attitude problems regarding study and scholarship.

Since the latest affirmative action Supreme Court decision, colleges are not supposed to have affirmative action in admissions and retention. Most colleges and universities get around this ruling in one way or another to both attract and keep African American applicants. But the numbers are still too small, especially for African American male high school dropouts who think they can earn higher incomes on the mean streets. That is such a shame.

One reason is that it's such a shame is that African American graduates in science and professional programs have a tremendous edge in affirmative action hiring and financial support for graduate studies. The AICPA, for example, offers $12,000 per year for minority accounting doctoral students. Accounting doctoral programs generally are tuition free for all students in such programs such that the $12,000 can be used for living expenses.

Application period now open (until May 16) for $12,000 AICPA Fellowship for Minority Doctoral Students Other Than Asians ---
https://www.thiswaytocpa.com/education/scholarship-search/fellowship-minority-doctoral-students/?utm_source=mnl:cpald&utm_medium=email&utm_campaign=14Apr2016

Applicants should also contact the KPMG Foundation for additional opportunities to study for an accounting Ph.D. ---
http://www.kpmgfoundation.org/
Some universities cooperating with the KPMG Foundation have tailor-made accountancy Ph.D. programs for minority students other than Asians.


Bloomberg:  Best Undergraduate Business Schools of 2016 ---
http://www.bloomberg.com/features/2016-best-undergrad-business-schools/?cmpid=BBD041916_BIZ&utm_medium=email&utm_source=newsletter&utm_campaign=

. . .

We based our ranking on four main metrics (see full methodology):

Employer Survey (40 percent of total score):  Feedback from recruiters who hire recent business graduates on how well schools prepared students for jobs at their companies.

Student Survey (35 percent):  Students' own ratings of the campus, career services department, and faculty and administrators.

Starting Salary (15 percent):  The base compensation of students who had jobs lined up, adjusted for salary variation across industries and regions.

Internship (10 percent):  The percentage of a school’s graduates who had at least one internship at any time during college.

Continued in article

Jensen Comment
The Bloomberg rankings differ from surveys like the reputed US News survey that depend more heavily upon deans and thus more heavily on research reputations of faculty in the business school rankings. Also I think US News relies more heavily on SAT or ACT scholastic test scores --- 
http://colleges.usnews.rankingsandreviews.com/best-colleges/rankings/business-overall
Some of Bloomberg's top 10 undergraduate programs do not make the top 10 in the US News rankings.

For example, Bloomberg gives top 10 undergraduate business school honors to Villanova, Boston College, and Bentley that are not in the US News top 10.

Accounting programs are probably best viewed at the graduate level where most employment takes place. I don't think Bloomberg ranks accounting schools, but the latest outcomes from US News are at
http://colleges.usnews.rankingsandreviews.com/best-colleges/rankings/business-accounting

 

Here we see some key differences in the top 10 accounting schools versus undergraduate business schools such as with USC, Illinois, and Florida.

Interestingly, MIT comes off the top ranking in accounting vis-a-vis business rankings. Personally, I don't think MIT's claim to fame is its undergraduate accounting program relative to other Boston accounting programs such as those at Boston College and Bentley. MIT comes off ranked at Number 2 in the US News Undergraduate business school rankings ---
http://colleges.usnews.rankingsandreviews.com/best-colleges/rankings/business-overall

 

USA Today:  Ten Top Accounting Programs ---
http://college.usatoday.com/2016/02/26/top-colleges-for-accounting/

. . .

1. Bentley University

The accountancy department is the oldest department at Bentley University, and has a long tradition of providing a high-quality accounting education. Classes in cost accounting, auditing, financial accounting and information technology help to provide a core understanding of the business world and the role accounting plays in it. Accounting is one of the most popular majors in the school, and it is no wonder as graduates are often highly successful in their careers, earning an average starting salary of $51,000 and mid-career salary of $99,000.

2. University of Notre Dame

The Mendoza College of Business at the University of Notre Dame is a top-tier business school, combining a liberal arts education with advanced knowledge and research in accounting to provide students with a strong understanding of the field.

Students take specialized classes in strategic cost management, audit and assurance services and federal taxation among others to help develop critical thinking and leadership skills. Graduates of the accountancy program have a solid grasp of the field and find careers within the accounting industry earning an average mid-career salary of $119,000.

3. Bryant University

Founded in 1863, Bryant University has a strong history of producing professionals who are leaders in the field. Its accounting program is no exception.

Classes in leadership, financial reporting, taxation, auditing and management introduce students to the business world, while improving communication and analytical skills. Graduates of this program have a dynamic understanding of accounting and are prepared for a career in a challenging field. They typically earn an average starting salary of $52,000 and mid-career salaries of $80,000.

4. New York University

The Leonard N. Stern School of Business at New York University offers two different undergraduate degrees in accounting, one with an emphasis in C.P.A., and the other less technical in nature. The second option allows students to blend liberal arts classes with core business and accounting classes to give them a broad education in the field.

A B.S in accounting from Stern leads to a high average starting salary of $65,000. Graduates of this program often progress to positions of leadership, earning an average mid-career salary of $114,000.

5. University of Illinois at Urbana-Champaign

Accounting is a global field that plays a core role in all business functions. A degree from the University of Illinois at Urbana-Champaign will prepare you for a successful career at any organization. The undergraduate program is centered on preparing graduates for a career in a variety of accounting fields, ranging from corporate to governmental.

Students are exposed to the fundamental principles of accounting, while learning how to apply current best business practices. The curriculum integrates liberal arts classes with core business classes in management, finance and analytics to create an environment that enhances critical thinking skills. Graduates of this program have been highly successful in the business world, earning an average mid-career salary of $100,000.

6. University of Southern California

The Marshall School of Business at the University of Southern California houses the distinguished Leventhal School of Accounting. This undergraduate accounting program is one of the best in the country due to the exclusivity of the program. Students study the art of accounting, while understanding the role it plays in business. They have the ability to customize their major, so they are taking classes that prepare them for quick advancement in the business world.

Classes in finance, economics and management help promote discussions about accounting practices, while supplementing classes on accounting principles. USC graduates of the accounting program earn an average starting salary of $55,000, but typically advance quickly, to an average mid-career salary of $110,000.

7. The University of Texas-Austin

In addition to offering a Bachelor of Business Administration (BBA) in accounting, the McCombs School of Business at the University of Texas also has an integrated Master in Professional Accounting (iMPA) program that allows strong students to earn both an BBA and MPA in five years.

Students can choose a corporate track or a financial institutions track, depending on their desired career plans. Upon graduation, accounting majors typically accept jobs in industry or government with an average starting salary of $51,000.

8. CUNY Bernard M. Baruch College

The Zicklin School of Business at CUNY Bernard M Baruch College is a highly-ranked business school with a reputation of providing a quality accounting education. The school attracts top faculty that have developed a curriculum that exposes the relationship between accounting and other crucial business practices.

Students take core classes in cost accounting, financial accounting, auditing and taxation along with electives in areas such as corporate finance and business law. A degree from Baruch leads to well-paying jobs, with graduates earning an average mid-career salary of $89,000.

9. Boston College

Boston College is a top school known for its strong curriculum and the success of its graduates. The accounting department holds the same reputation due to its world-class faculty and collaborative classes.

Accounting majors take their core business classes in finance, taxation, economics, analysis and auditing at the Carroll School of Management. They are given the option to specialize in Accounting, Accounting Information Systems or Corporate Reporting. Each of these concentrations is challenging and prepares graduates for rewarding careers in a variety of accounting services, earning an average mid-career salary of $109,000.

10. Villanova University

The Villanova University School of Business offers an accountancy program that prepares students for careers at business firms, corporations and governmental organizations. The school has a dynamic curriculum that incorporates theory and principles with exposure to current business practices. This gives students the opportunity to gain a well-rounded business education and secure jobs after graduation.

Classes in accounting, auditing and taxation are supplemented by electives in areas such as fraud, international accounting and accounting for real estate. Villanova graduates are well-equipped for an accounting career, earning an average starting salary of $55,000 and mid-career salaries averaging $107,000.

 

US News Ranking of Top Accounting Undergraduat Programs --- http://grad-schools.usnews.rankingsandreviews.com/best-graduate-schools/top-business-schools/accounting-rankings

#1
Overall Score:
University of Texas—​Austin (McCombs) 

Austin, TX

$32,298 per year (in-state, full-time); $48,832 per year (out-of-state, full-time)
#2
Overall Score:
University of Pennsylvania (Wharton) 

Philadelphia, PA

$62,424 per year (full-time)
#3
Overall Score:
University of Illinois—​Urbana-​Champaign 

Champaign, IL

$21,974 per year (in-state, full-time); $32,974 per year (out-of-state, full-time)
 
#4
Overall Score:
University of Chicago (Booth) 

Chicago, IL

$61,520 per year (full-time)
#5
Overall Score:
Stanford University 

Stanford, CA

$61,875 per year (full-time)
#6
Overall Score:
Brigham Young University (Marriott) 

Provo, UT

$11,620 per year (LDS member, full-time); $23,240 per year (Non-LDS member, full-time)
#7
Overall Score:
University of Michigan—​Ann Arbor (Ross) 

Ann Arbor, MI

$54,450 per year (in-state, full-time); $59,450 per year (out-of-state, full-time)
#8
Overall Score:
New York University (Stern) 

New York, NY

$60,744 per year (full-time)
#9
Overall Score:
University of Southern California (Marshall) 

Los Angeles, CA

$51,786 per year (full-time)
#10Tie
Overall Score:
Indiana University—​Bloomington (Kelley) 

Bloomington, IN

$25,500 per year (in-state, full-time); $44,460 per year (out-of-state, full-time)
#10Tie
Overall Score:
University of North Carolina—​Chapel Hill (Kenan-​Flagler) 

Chapel Hill, NC

$34,015 per year (in-state, full-time); $52,470 per year (out-of-state, full-time)

Jensen Comment
The USA rankings lean toward universities in big cities where starting salaries are somewhat higher but living costs are much higher than than say living costs in Utah and surrounding mountain states. Exceptions include Bryant, Illinois and Notre Dame, but these universities feed nearby urban centers.

I favor the US News report that is influenced more heavily by opinions of administrators that, in turn, are more influenced by reputations of accounting faculty. The US News anointed universities have more stars.


Following Starbucks' lead, JetBlue employees will now get free college education in the online Arizona State University program
"JetBlue Will Pay Employees’ College Tuition Upfront," by Corinne Ruff, Chronicle of Higher Education, April 18, 2016 ---
http://chronicle.com/article/JetBlue-Will-Pay-Employees-/236144?cid=at&utm_source=at&utm_medium=en&elqTrackId=2c1186cfd9b341cb9c63ee9ed19e27b4&elq=ff4810688471400f82f0d34fb98b721c&elqaid=8697&elqat=1&elqCampaignId=2932

The program is the latest company-and-college partnership that takes cues from the Starbucks College Achievement Plan — a program, created in 2014, that allows employees of the coffee-shop chain to take online classes at Arizona State University while continuing to work at the company.

But there’s a key difference between the JetBlue program and many other partnerships in the Starbucks-Arizona State model.

Most of the programs either reimburse tuition costs or offer discounts, requiring employees to foot at least some of the bill for their courses. But JetBlue employees won’t pay anything upfront: The company will cover the full cost of an associate degree.

To earn a bachelor’s degree, however, students would have to cover the $3,500 capstone course at Thomas Edison State, either out of pocket or through a scholarship.

In August the company started a pilot version of the program with 200 employees with at least two years’ seniority and with at least 16 credits from an accredited college or university already in hand.

Bonny W. Simi, president of the subsidiary JetBlue Technology Ventures, says that employees had long asked for tuition reimbursement, but that the company wanted to go a step further and foot the whole bill.

‘Success Coaches’ Are Assigned

As interest grows in the unbundling of higher education — the use of just the learning material from the college experience — Ms. Simi says the JetBlue program was made possible by the flexibility and affordability of competency-based education.

"We’ve mapped out degrees so that it’s basically higher ed but stripped away are the cafeterias, the football team, the big campuses, the dorm, and everything," says Ms. Simi, who oversees the program. "It’s just the class."

Continued in article

Jensen Comment
There are other free or highly subsidized college programs paid for by employers such as the huge Wal-Mart program with American Public University, but the Starbucks and JetBlue programs have the most prestigious diplomas in my opinion.

"News Analysis: Is 'Wal-Mart U.' a Good Bargain for Students?" by Marc Parry, Chronicle of Higher Education, June 13, 2010 ---
http://chronicle.com/article/Is-Wal-Mart-U-a-Good/65933/?sid=at&utm_source=at&utm_medium=en

Following Starbucks employee education benefits with Arizona State University,
Anthem Blue Cross offers education benefits with the University of Southern New Hampshire

"Fiat Chrysler Offers Degrees to Employee Families (including families of dealer employees) ," Inside Higher Ed, November 23, 2015 ---
https://www.insidehighered.com/quicktakes/2015/11/23/fiat-chrysler-offers-degrees-employee-families?utm_source=Inside+Higher+Ed&utm_campaign=b3c3eb755f-DNU20151123&utm_medium=email&utm_term=0_1fcbc04421-b3c3eb755f-197565045

"An Increasingly Popular Job Perk: Online Education," by Mary Ellen McIntire, Chronicle of Higher Education, June 2, 2015 ---
http://chronicle.com/blogs/wiredcampus/an-increasingly-popular-job-perk-online-education/56771?cid=wc&utm_source=wc&utm_medium=en

Bob Jensen's threads on fee-based distance education ---
http://faculty.trinity.edu/rjensen/CrossBorder.htm

Of course there are thousands of free online education and training courses available from prestigious universities such as Stanford, MIT, and top Ivy League universities. But transcript credits are not free for students who want credits for MOOCs on their transcripts. Of course prices are much lower than onsite attendance credits ---
http://faculty.trinity.edu/rjensen/000aaa/updateee.htm#OKI

Added Jensen Comment
What I think is the most interesting trend in what might be termed competency-based courses and degrees is the lowering of the bar on admissions standards. Virtually anybody can take these newer online cheaper and/or subsidized courses with grades awarded on the basis of competency examinations while taking the courses. In comparison, students admitted on site to universities like Harvard and Stanford and Arizona State University face higher admission standards. But with grade inflation in virtually all on-site campuses (now having median grades of A-) the standards for competency are much lower, in my viewpoint, than the competency-based online courses via MOOCs that dare not become shams with grade inflation.

The bottom line is that the competency standard for Harvard University and Stanford University is being admitted to study on campus. The competency standard for getting transcript credit for their MOOC courses is . . . er . . . er . . . demonstrated competency in the subject matter.

If you want to make a Harvard University onsite student or an ASU onsite student wet his pants make him accept the online competency-based tests for the course he just received an A or B grade in from his professor on campus.

Arizona State University is now under enormous pressure not to make the corporate-subsidized online degrees truly competency-based and not grade-inflated shams.

 


How to Mislead With Statistics

Here's how much surgeons, lawyers, and 18 other top-earning professionals make per hour ---
http://www.businessinsider.com/hourly-salaries-surgeons-lawyers-doctors-2016-11/#-1

Jensen Comment
This articles is one of the best/worst articles I've seen lately on how to lie with statistics.

Here are a few things to point out to your students if you want to highlight how not to report survey results.

First and foremost when you define the total populations (apart from sample sizes) and don't mislead about the sizes of the populations.
For example, the above article says there are 24,000 employed psychologists and 15,650 physicists.  Aren't professors and other teachers in these fields "employed?" There are more employed specialists in these disciplines employed only in academia than the numbers shown above. Most likely the average hourly wage would be greatly pulled down if academics were included in the population and the sample.

Secondly the article ignores standard deviations and kurtosis of the distributions from which averages are reported. For example, outliers in millions of dollars of compensation to attorneys and other professionals tend to skew averages upward. Even medians can be misleading for highly skewed distributions with outliers on both sides of the medians. Think of the lawyers who will work for food.

How random are the samples from the populations identified in the study. My guess is not very random.

Watch definitions.
What is a "chief executive?" The manager-owner of our local hardware store is a "chief executive" as is the CEO of a Fortune 500 Corporation.
What's the definition of a "financial manager versus a "sales manager?" Why are there twice as many financial managers as sales managers?
What's the definition of "public relations and fundraising managers" and why are there only 60,380 of them when there are 531,161 financial managers? Many financial managers and chief executive officers and are also the public relations and fund raising managers. My guess is that the sampling population totally ignored public relations and fund raising managers for colleges, universities, churches, and charities where compensation is often quite low or contingent upon funds raised.

What's the difference between a pharmacist and the chief executive. Many pharmacists also own and manage the entire drug store?

What's "compensation?" Most CEO's of Fortune 500 companies get paid on performance-based contracts depending upon such things as corporate earnings reports. In other words what a CEO makes one year may be doubled or tripled the next year and then taken way down the following year.

What's "compensation?" Most CEOs are paid in many ways including stock options, stock awards programs, living benefits (use of the corporate jets and ski chalets), wine, women, and song.

There's an enormous difference between what a physician makes before or after malpractice insurance and other expense expenses. Those that work for much lower annual salaries often do not have to pay their own malpractice insurance, nurse expenses, receptionist expenses, accounting expenses, office rental expenses, etc.

I could go on and on, but I think students will catch my drift.

This article is so misleading it's worse than garbage.


How to Mislead With Statistics

"This graph shows how much money you can earn from each college major," by Abby Jackson, Business Insider, December 24, 2015 ---
http://www.businessinsider.com/earning-potential-by-college-major-2015-12

Jensen Comment
This graph is a great illustration of an interactive graphs, although you have to play around with it some to get the hang of it. For example, if you want to see the graphs for just "Accounting" click off the box for "All," click the box for "Accounting," and then scroll down and click on "Apply."

By now many of you are weary of my warnings about such things as definitions, averages without standard deviations, skewness (kurtosis), etc. For example, means or medians for "accounting" can be misleading without knowing how accounting is defined. For example, there's a big difference between what lowly bookkeepers make versus CPA firm partners and executives in major corporations. There's a huge difference between what accounting Ph.D. graduates make in struggling small private colleges versus what they make at Ivy League universities. Also there's a huge difference in fringe benefits such as housing subsidies, research stipends, summer pay, and fringe benefits such as contributions to TIAA/CREF. Also Ph.D. graduates tend to have opportunities for outside income in book writing and consulting. At a prestigious university like Harvard, a professor's Harvard salary is likely to be only a small part of total income.

In general, the biggest problem is in career tracking combined with income standard deviations. Comparing the lifetime earnings of a cost accountant in General Electric cannot really be compared with the lifetime earnings of a partner in a small local public accounting firm really cannot be compared because some of these partners may top out at $50,000 or more per year whereas others top out at $500,000 per year after their retirement buyouts are factored into compensation.

A top accounting graduate typically goes to work for 5-10 years with a large public accounting firm or the government. However, 80% or more of those graduates leave (most never intended to stay in public accounting or government employment) and go to work for in private industry such as when an IRS agent goes to work at a high level in a corporate tax department. At such time they often make much more than others who stay in public accounting or government. The problem is that in studies like the one cited above these "former" accountants are no longer classified as accountants such as when a public accountant becomes the CFO or CEO of a large or small corporation. Hence in studies like the one above a former accountant is excluded from the 20-year survey of "accountants."

The same problem arises when examining accountants who only have "associates" degrees. Typically these accounting graduates are no longer "accountants" ten or 20 years out. Some may be CEOs of their own companies and some might earn over $200,000 per year in stores or plumbing companies that they own. Hence, I'm extremely suspicious of graphs that compare the benefits of getting a Ph.D. versus an associates degree in accounting. The problem is that most associates  or bachelors degree holders either dropped out of the labor market (such as to have babies) or became entrepreneurs who are no longer classified as "accountants."

Problems like those mentioned above become exacerbated when comparing types of degrees such as accounting versus culinary arts versus creative writing.

Conclusion
The bottom line is that studies like this are so misleading and dangerous that I wish they did not get published.

Bob Jensen's threads on careers are at
http://faculty.trinity.edu/rjensen/bookbob1.htm#careers


For a list of job boards for accountants see http://maaw.info/AccountingJobBoards.htm

 


"14 Things High Schoolers Should Know Before They Go To College," by Vivian Giang, Business Insider, July 16, 2013 ---
http://www.businessinsider.com/what-young-people-should-know-before-going-to-college-2013-7


 

The Muse (free job hunting site) --- https://www.themuse.com/



PwC US Launches CareerAdvisor
, January 7, 2015
New platform of tools to provide students with resources they need for the career they want
http://www.pwc.com/us/en/press-releases/2015/pwc-us-launches-careeradvisor.jhtml

 


USA ACCOUNTING ENROLLMENTS CONTINUE UPWARD TREND, REACH ALL-TIME HIGH
"2015 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits," AICPA, 2015

The 2015 edition of Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits is a publication of the results of a long-standing American Institute of CPAs survey.

The survey, published since 1971, identifies key trends in accounting enrollment, as well as graduation and hiring. This report, covering the 2013–14 academic year, provides estimated information and forecasting regarding the supply of and demand for new accounting graduates within the public accounting sector to various stakeholders and interested parties.

In the 2013–14 academic year, enrollment in accounting programs reached an all-time high after a year of rapid growth — a 19% increase for master’s degree enrollments and a 3% increase in bachelor’s degree enrollments. Master of Accounting programs of both public and private universities saw major growth in enrollment — with 23% and 50% increases in enrollments this period, respectively — while there was a smaller increase (12%) of enrollments in Bachelor of Accounting programs at private universities and a 22% decrease in bachelor’s degree enrollments at public universities.

Total bachelor’s and master’s degrees in accounting awarded in the 2013–14 academic year remained steady with a less than 1% decline after reaching an all-time high in the 2011–12 academic year. Master’s degrees awarded increased by 31%, while bachelor’s degrees awarded decreased by 11%.

Hiring also reached record levels after 7% growth in all new hires. Master’s degree hires saw the largest growth, with an 11% increase since 2012. Over the same time period, bachelor’s degree hires increased 5%. As a percentage of total hires in 2014, however, new hires with bachelor’s degrees increased 3 percentage points, new hires with master’s degrees decreased 6 percentage points, and total nonaccounting hires increased 2 percentage points since the previous reporting period. As a percentage of new hires, those assigned to accounting/auditing decreased 4 percentage points while assignment to taxation increased by the same amount.

Universities and firms are both optimistic about the growth of the profession — 97% of bachelor’s programs and 70% of master’s programs expect their enrollment to be the same or higher than the previous year. Additionally, 91% of firms expect their hiring of new accounting graduates to be higher than or the same as the previous year. Larger firms are especially optimistic about future hiring with all large firms employing over 200 CPAs forecasting the same or more new hires in every area next year.

The gender distribution of professional staff at all firms is now 52% male and 48% female. The reported race/ethnicity distribution changed with the White race/ethnicity category increasing 10 percentage points, the Asian/Pacific Islander race/ethnicity category decreasing 9 percentage points, and the Black/AfricanAmerican race/ethnicity category decreasing 2 percentage points. The gender distribution of partners also showed a significant shift, with a 5 percentage point increase in female partners between 2012 and 2014.

The AICPA is very appreciative of the universities and firms who took the time to participate in this year’s survey. Please contact us at trends@aicpa.org with any questions or feedback as we strive to make the information in these surveys relevant to your needs.


"The Economic Guide To Picking A College Major," by Ben Casselman, Nate Silver's 5:38 Blog, September 12, 2014 (slightly dated) ---
http://fivethirtyeight.com/features/the-economic-guide-to-picking-a-college-major/

Jensen Comment
This is a better-than-most article article on this topic, although virtually all such articles are misleading in terms of long-term versus short term reasons for choosing a major. For example, some of the highest paying careers at the point of graduation are not great careers in terms of long-term opportunities for professional growth or lifetime income. Accounting and finance, for example, are typically ranked low in terms of average starting salaries but rank high in terms of economic opportunities. In part this is because accounting and finance graduates are neophytes who have minimal expertise that comes with experience and post-graduate learning (usually on the job). They have a lot of learning to do before they can earn their keep.

One strong point of the article is that it lists number of majors in each discipline broken down into quartiles. This is important because numbers reflect the fact that there are both opportunities and job competition due to high versus few numbers of majors. For example, there are over 200,000 nursing majors and nearly 200,000 accounting majors. This suggests that demand for these majors must be relatively widespread with considerable  choices of location both in urban and rural settings across the USA. Those disciplines having less than 1,000 majors perhaps have much less choice with respect to number of employers and geographic locations.

The article is weak in terms of showing the incremental advantages of getting advanced degrees. For example, the physical sciences are not usually great undergraduate majors without going into some type of graduate study. Some majors require at least masters degrees for taking the licensing examinations for a career. Thus comparing these majors with majors that only require undergraduate degrees is a little like comparing apples and oranges.

Also some majors that used to be great in terms of income and opportunity have fallen onto hard times. Law schools, for example, are now graduating twice and many majors relative to career opportunities in law.

Also some majors are much less specific in terms of job skills. For example, graduates in business management have wide ranging skills (or lack thereof) relative to accounting, pharmacy, and engineering majors that require many more specialized courses in a curriculum --- partly due to the way certification examinations dominate curricula for some majors like accounting, pharmacy, and engineering but not business management. My point is that the subset of business management majors is such a heterogeneous subset I'm not certain what starting salary averages really mean in this diverse population.

My main recommendation is that starting salaries should be given much less consideration than other factors going into a career. For example, I personally would never have considered physical therapy as a major, because I think physical therapy over the course of 50 years on the job must be terribly boring and generally lacks growth opportunity. Some careers like K-12 teaching lack growth opportunities buy offer considerable independence in terms of free time with summer vacations and holidays that add up to a lot of free time in a lifetime career. free time for example to raise children.

For me, being a professor in a university turned into what I think has to be the best of all careers as long as becoming wealthy is not a priority in life. The main advantage is independence choosing how to spend your time on and off the job. There are of course other types of non-monetary rewards in helping students learn and develop their own lives. My research and scholarship had great variety over the years and was not nearly as dull as you might think when the word "accountancy" is mentioned as an academic discipline.


Women in Science --- http://www.womeninscience.org/

PBS: SciGirls --- http://pbskids.org/scigirls/

The Untold History of Women in Science and Technology --- http://www.whitehouse.gov/women-in-stem

Affirmative Action Favors Women, Blacks and Latinos Over Whites and Asian Males  in Science Tenure Track Hiring

"Advantage Women,," by Colleen Flaherty," National Academy of Sciences via Inside Higher Ed, April 14, 2015 ---
https://www.insidehighered.com/news/2015/04/14/study-suggests-stem-faculty-hiring-favors-women-over-men

Many studies suggest that women scientists aspiring to careers in academe face roadblocks, including bias -- implicit or overt -- in hiring. But a new study is throwing a curveball into the literature, suggesting that women candidates are favored 2 to 1 over men for tenure-track positions in the science, technology, engineering and math fields. Could it be that STEM gender diversity and bias awareness efforts are working, or even creating a preference for female candidates -- or is something more nuanced going on? Experts say it’s probably both.

Wendy M. Williams, professor of human development at Cornell University, and Stephen Ceci, the Helen L. Carr Professor of Developmental Psychology at Cornell, are no strangers to complicating research on gender bias in STEM. In a 2010 paper in the Proceedings of the National Academy of Sciences, for example, they argued that women’s life choices, whether voluntary or constrained, better explain women’s underrepresentation in STEM than the usual suspects of discrimination in journal and grant reviewing and hiring. (They argued such biases were things of the past, and that efforts to address them missed the real source of the problem.)

Continued in article

38 Percent Of Women Earn More Than Their Husbands," by Mona Chalabi, NPR via Nate Silver's 5:38 Blog, February 8, 2015 ---
http://fivethirtyeight.com/datalab/38-percent-of-women-earn-more-than-their-husbands/

Bob Jensen's threads on affirmative action in academe ---
http://faculty.trinity.edu/rjensen/HigherEdControversies2.htm#AffirmativeAction


"Hiring and enrollments reached record highs last year," by Courtney L. Vien, Journal of Accountancy, August 10, 2015 ---
http://www.journalofaccountancy.com/news/2015/aug/public-accounting-firm-jobs-hiring-201512792.html#sthash.0OtpJ7X4.dpuf

Unlike many in their Millennial cohort who face continued underemployment, accounting graduates find themselves in high demand from employers. Top students are often recruited, offered jobs during or after their internships, and enticed with signing bonuses.

According to the AICPA report Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, hiring at public accounting firms jumped 7% to reach record levels in 2013–14. Ninety-one percent of all firms said they expect to hire accounting graduates at the same or higher levels in 2015.

- See more at: http://www.journalofaccountancy.com/news/2015/aug/public-accounting-firm-jobs-hiring-201512792.html#sthash.0OtpJ7X4.dpuf

Unlike many in their Millennial cohort who face continued underemployment, accounting graduates find themselves in high demand from employers. Top students are often recruited, offered jobs during or after their internships, and enticed with signing bonuses.

According to the AICPA report Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, hiring at public accounting firms jumped 7% to reach record levels in 2013–14. Ninety-one percent of all firms said they expect to hire accounting graduates at the same or higher levels in 2015.

Continued in article


"Medicine, Law, Business: Which Grad Students Borrow The Most?" NPR, July 15, 2015 --- Click Here
http://www.npr.org/sections/money/2015/07/15/422590257/medicine-law-business-which-grad-students-borrow-the-most?utm_source=facebook.com&utm_medium=social&utm_campaign=npr&utm_term=nprnews&utm_content=20150715

Hint:  Except for the outliers the correlation with starting salaries is less than I would have expected. However, the outliers increase this correlation. In some fields, especially business, the variance in lifetime earnings is much greater.

Partial Quotation from the Article

Students studying medicine and law typically borrow more than $100,000 to get through school, and many go on to high-paying careers.

At the other end of the spectrum, many Ph.D. students wind up in academia. Most get grants and subsidies — and the majority don't have to borrow any money at all to get through grad school.

One striking case: MBAs. People who go to business school take on significantly less debt than people at other professional schools. Most MBA programs are two years long — shorter than law school (three years) or med school (four).

But that's not nearly enough to explain the difference.

Jensen Question

I have a granddaughter who recently graduated in pharmacy with  enormous debt. It's not clear why pharmacists in general graduate with more debt than most other graduates outside of medicine. In her case the reason was that she chose an expensive small private college well beyond the means of her family for so many years.

 Her brother is now entering the University of Maine system intent of a nursing career. He has much more fear of debt than his sister. This is the main reason his undergraduate degree will cost so much less before he goes on to graduate school. As valedictorian of his high school class he also earned a scholarship of $1,000 per year  for any college of his choosing.

Bob Jensen's threads on student debt ---
http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#StudentDebt


Concerns Over Shortage of Competent Accounting Recruits
"Staffing issues surge to forefront of accounting firm concerns,"  by Jeff Drew, Journal of Accountancy, June 9, 2015 ---
http://www.journalofaccountancy.com/news/2015/jun/accounting-firm-issues-201512451.html 

It’s been a long time, but U.S. accounting firms are again dealing with a full-fledged talent shortage.

That’s one of the main takeaways from the 2015 Private Companies Practice Section (PCPS) CPA Firm Top Issues survey, which found staffing issues leading the list of concerns for accounting firms of all sizes except sole proprietors.

Finding qualified staff ranked as one of the two most pressing issues for all firms with more than one professional, topping the list for firms with two to 10 professionals and ranking second among firms with 11 or more professionals (see chart below). Firms in the two largest size categories (11–20 professionals and 21+ professionals) named staff retention as their No. 1 concern.

Continued in article


"The Fields That Students Flock to During Recessions," by Josh Zumbrun, The Wall Street Journal, July 16, 2015 ---
http://blogs.wsj.com/economics/2015/07/17/the-fields-that-students-flock-to-during-recessions/ 

Graduating into a recession stunts the careers of the young men and women entering the labor market. But it turns out a lot of students don’t sit back and passively accept this outcome: Many students who see a recession during their early college years switch to majors with better job prospects.

According to new research from Benjamin Keys at the University of ChicagoBrian Cadena at the University of Colorado Boulder and Erica Blom at Edgeworth Economics, the shifts can be dramatic.

When the national unemployment rate rises by 1 percentage point, the share of women studying business rises by nearly two-thirds of a percentage point. The share of women studying nursing climbs by nearly a third of a percentage point. An additional quarter percentage point switch into accounting. Meanwhile, enrollment in education, literature and languages, sociology and psychology drops.

 

Jensen Comment
Accounting ranks number three from the top. It may well be on the top if it did not take five years (150 selective credits) and a certification examination to become a CPA. It is true that accounting firms are always hiring when the economy goes up or down. However, in public accounting there's a lot of forced turnover before employees are eligible to become partners. The secondary market declines somewhat for accountants who do not become partners after working in CPA firms for 5-10 years.

The low-ranking fields tend to be low ranking in boom or bust in the economy. Also many high-ranking fields like nursing are high ranking in boom or bust.


The 10 Best and Worst Undergraduate Majors for Getting Jobs (without getting additional credentials) ---
http://www.businessinsider.com/worst-college-majors-2014-6

Top students in the "worst majors" in the past often went on to law school. They are still doing so but in fewer numbers and greatly dampened prospects for working in law firms after law school graduation. Law school losses of students are often MBA program gains. Options in accounting, engineering, nursing, pharmacy are not so great due to all the undergraduate prerequisites that must be satisfied before going to graduate school in those specialties.

Because there are so many graduates in business, neither an undergraduate degree nor an MBA degree is a very good path to a career without extremely high grades or specialties in demand like accounting. Sometimes a combination of degrees greatly improves job prospects such as an undergraduate engineering or computer science degree topped off with an MBA from a top school.

Students planning to get MD or science Ph.D. degrees need to carefully plan their undergraduate studies in advance of going to graduate school. Unfortunately, graduate studies in those fields, especially medicine, can be quite long and expensive. For example, most MD or science Ph.D. graduates must also plan for low-paying post-graduate residency or post-doc years before they can make significant progress in paying down their student loans.

Bob Jensen's threads on careers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

From the Chronicle of Higher Education
Search for the Latest Job Openings in any Discipline of Interest ---
https://chroniclevitae.com/job_search/new?cid=VTECHNJOBSL1

Jensen Comment
When I search for "Accounting" and "Faculty & Research" today there are 256 jobs posted in the past 30 days. However, not all of these jobs seem property classified as both "Accounting" and "Faculty & Research." Also I know of some job openings for accounting professors that are not listed for major universities.

For persons seeking jobs as accounting faculty in the USA perhaps a better place to look might be the American Accounting Association Career Center ---
http://aaahq.org/Career-Center
Job seekers may also post their resumes at this center.

Since there are so many faculty vacancies in accountancy, job seekers with Ph.D. degrees from AACSB-accredited universities are advised to contact colleges and universities where they would most like to be employed.

Bob Jensen's threads on the higher education faculty job market ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingFaculty

 


Academic careers --- http://www.academiccareers.com/

 

LibraryCareers.org --- http://www.ala.org/ala/educationcareers/careers/librarycareerssite/home.cfm

 

Careerzone --- http://careerzone.ny.gov/cz/stem/index.jsp

 

Engineer Your Life (engineering careers and education) --- http://www.engineeryourlife.org/

 

Map: The Most Common Job in Every State (changing times 1978-2014) --- 
http://www.npr.org/blogs/money/2015/02/05/382664837/map-the-most-common-job-in-every-state
 

JobApps --- http://www.myjobapps.com/

The Muse (free job hunting site) --- https://www.themuse.com/

 

Careers in Logistics ---
http://academic.rcc.edu/logisticsmanagement/PDF/Careers In Logistics by CSCMP.pdf

 

Resume Writing Helpers and Samples --- http://www.resumesamples.info/


My Next Move (career change helpers) --- http://www.mynextmove.org/
For example feed in the word "accountant"

 

Science Careers --- http://sciencecareers.sciencemag.org/


Accounting Career Network --- http://www.searchaccountingjobs.com/

 

AccountingCareersNow.com --- http://www.accountingcareersnow.com/

The Big Four Accounting Firms Are All in the Ten:  Who dares say that accounting is a dull career?
"Fifty Most Popular Employers for Business Students," Bloomberg Businessweek, May 9, 2013 ---
http://images.businessweek.com/slideshows/2013-05-09/fifty-most-popular-employers-for-business-students

"How To Get Hired If You Have A Tattoo," by J.T. O'Donnell, Business Insider, October 22, 2013 ---
http://www.businessinsider.com/how-to-get-hired-if-you-have-a-tattoo-2013-10


NASA Women of STEM --- http://www.nasa.gov/education/womenstem/


"38 Percent Of Women Earn More Than Their Husbands," by Mona Chalabi, NPR via Nate Silver's 5:38 Blog, February 8, 2015 ---
http://fivethirtyeight.com/datalab/38-percent-of-women-earn-more-than-their-husbands/

Jensen Comment
I don't know how this study factored for misleading statistics, but here are a few considerations. It's quite common for women to support husbands who are students such as students or residents in medical school. For example, surgical residents get paid, but they get paid very little relative to what their wives may be still earning to support the completion of their husband's training requirements. Of course sometimes it is husbands who support aspiring female physicians.

Many men are in the USA military. Their wives who work are almost certain to have higher income, although the benefits of a military are substantial --- including free family medical care, base housing, base schools, and lifetime pensions commencing at a young age, sometimes before reaching 40 years of age.

Times are changing for professional women at work. The big CPA firms now hire more female accounting graduates than male accounting graduates. There are also cracks in the glass ceiling. Deloitte, one of the top Big Four firms, just appointed a woman CEO.

Bob Jensen's threads on the history of working women ---
http://faculty.trinity.edu/rjensen/bookbob2.htm


Jensen Note
Entry level accountants are usually called "staff accountants." Upon graduation some of the most plentiful jobs in the world are for staff accountants. Note that in the USA, however, CPA firms generally require that students become qualified to immediately take the CPA examination, and that generally takes a fifth year of study, usually but not always for a masters degree. The same can be said for chartered accountants in many other nations.

Staff Accountants are in the Top Ten Below
"10 jobs with the best salary potential," Jada A. Graves, US News & World Report, February 3, 2015 ---
http://www.businessinsider.com/jobs-with-the-best-salary-potential-2015-2

Jensen Comment
Also important is job-change opportunity. Many college graduates go to work for CPA firms never intending to stay with those firms. Those firms offer terrific opportunity for technical training and exposure to clients needing accounting, internal auditing, forensics, information technology, and tax services. More often than not those that leave the CPA firms and stay in the work force go with clients.

Salaries may or may not be higher, but there is often less travel and job stress when working for a client. Making partner with a CPA firm often entails long hours and public relations skills requiring special talents. Partners are paid well, but less than 15% of the new hires in large CPA firms become partners. Partners generally have skills in obtaining and retaining clients. The same, by the way, is true of law firms where much of the technical work is often performed by lower-paid non-partners.

My point is that students hoping to become partners in CPA firms and law firms should take courses in communications. Foreign languages can also help since sometimes the path to partnership is easier for USA accounting graduates to work in off shore offices of multinational CPA firms such as working in offices in Moscow, Mexico City, and various cities in South America and Asia.


From the Chronicle of Higher Education
Search for the Latest Job Openings in any Discipline of Interest ---
https://chroniclevitae.com/job_search/new?cid=VTECHNJOBSL1

Jensen Comment
When I search for "Accounting" and "Faculty & Research" today there are 256 jobs posted in the past 30 days. However, not all of these jobs seem property classified as both "Accounting" and "Faculty & Research." Also I know of some job openings for accounting professors that are not listed for major universities.

For persons seeking jobs as accounting faculty in the USA perhaps a better place to look might be the American Accounting Association Career Center ---
http://aaahq.org/Career-Center
Job seekers may also post their resumes at this center.

Since there are so many faculty vacancies in accountancy, job seekers with Ph.D. degrees from AACSB-accredited universities are advised to contact colleges and universities where they would most like to be employed.


How to Mislead With Statistics
Unemployment by Occupation 2014 ---
http://247wallst.com/investing/2015/01/16/unemployment-by-occupation-2014/

Jensen Comment
Here are a few reasons why unemployment statistics can be misleading:

  • Workers often leave jobs voluntarily who virtually cannot be fired. For example federal and state civil service employees often leave to enter higher paying jobs in the private sector or to become full-time parents, but try firing a civil service employee who is performing terrible on the job or is a chronic absentee at work
     
  • Workers who are vulnerable at early stages of employment often become locked into job security with seniority or tenure. Examples include K-12 teachers and college professors.
     
  • Unemployment rates can be misleading indicators of job availability. For example, physical scientists may have low unemployment rates but a Ph.D. degree in a physical science discipline does not open many doors to a job as a full-time professor or scientist in general. There's an old joke about how many geologists can fit into a pickup truck. The answer is only two with their lawnmowers.
     
  • Unemployment rates vary greatly with location. For example, employment as a welder is almost guaranteed for welders seeking work in oil fields and along pipeline construction, but try finding job as a welder in tens of thousands small rural towns in the USA.
     
  • Employment varies with willingness to take on risks. For example, it's very common for some jobs to compensate on a sales commission basis with very little pay guarantees. This often leads to high unemployment rates in some jobs that are relatively easy to find because of compensation risks.

The bottom line is that unemployment rates can be very misleading when choosing an intended career. There are many, many more important criteria.


How to Mislead With Statistics
The 15 College Majors With The Lowest Starting Salaries
--- 
http://www.businessinsider.com/college-majors-with-the-lowest-starting-salaries-2015-1?op=1

Jensen Comment
This a in some cases a little misleading such as when careers entailing 12-months on the job with two weeks paid vacation are compared with others entailing 9-months on the job with an added 8+ weeks paid vacation. The latter careers with five months free are especially popular for parents having or expecting young children at home.

Starting salaries are not nearly as important as career growth and enjoyment of the work. For example, some employees will take lower pay to work with children or to work in biblical studies. Careers that have little variation in routine over decades can become very boring. I think physical therapy might be interesting for a time but can become very boring over 40+ years.

Keep in mind that these rankings are based on averages that in some cases have varying standard deviations. For example, law graduates may have higher averages but many start out at very low salaries as clerks or lowly-paid interns.


"Don't Rely On Salary Data To Pick A Programming Language (career):  To Learn Current demand says nothing about earnings potential," by Matt Asay, ReadWriteWeb, November 28, 2014 ---
http://readwrite.com/2014/11/28/programming-language-salary-data-dont-mix

Jensen Comment
This is good advice in general, not just good advice for programmers. I always advised my graduating accounting students not to be mislead by higher starting salaries. I told them to instead look at prospects for training, experience, and exposure to great clients, clients that will often hire them into terrific jobs after they have on-the-job skills.

As a matter of fact higher salaries can be very misleading if you ignore living costs.
For example, CPA firms will often pay more to graduates who will locate in San Francisco, Manhattan, Honolulu, etc. But the cost of living in those cities overwhelms the higher compensation. A lower salary in Des Moines or San Antonio end up being more in terms of compensation net of living costs. But even even then compensation should not be the deciding factor. Look at other things vital to career and happiness in life.

Also don't look at happiness in life to make short term decisions. I very nearly took my first teaching job in Gunnison, Colorado because I wanted to ski and raise horses. At the time this would have been a dead end choice that entailed heaving teaching loads and no research support. Plus as a hot dog skier I would probably be long dead by now.

PS
I still have a friend in Houston who makes a good living programming in COBOL.

"These Are The Highest Paying Programming Languages You Should Learn, Ranked By Salary," by Lisa Eadicicco, Business Insider, November 20, 2014 ---
http://www.businessinsider.com/best-tech-skills-resume-ranked-salary-2014-11

. . .

Based on that data, here are programming languages listed next to their average annual salary from lowest to highest:

12. PERL - $82,513

11. SQL - $85,511

10. Visual Basic - $85,962

9. C# - $89,074

8. R- $90,055

7. C - 90,134

6. JavaScript - $91,461

5. C++ - $93,502

4. JAVA - $94,908

3. Python - $100,717

2. Objective C - $108,225

1. Ruby on Rails - $109,460

While some of these coding languages can help you earn around $100,000, train to become a Salesforce Architect if you want one of the highest paying jobs in tech. According to data from IT recruiting firm Mondo that was published back in March, Salesforce Architects can earn anywhere between $180,000 and $200,000. 


Read more: http://www.businessinsider.com/best-tech-skills-resume-ranked-salary-2014-11#ixzz3JdigS3Iy
 

Jensen Comment
After spending all that part of my life learning and teaching Fortran and COBOL I'm no longer needed. Sigh!


Question
What large CPA firms came out very well in this gender ranking?

Three of the Big Four multinational accounting firms are among the very top companies of the the world for working moms at Ranks 4/100, 5/100, 8/100
And all four are in the 15-year Hall of Fame for working moms ---
https://www.workingmother.com/working-mother-100-best-companies-winners-2019

The Big Four firms are among the very best companies to work for in general at Ranks 26/100, 34/100, 36/100, and 44/100 ---
https://fortune.com/best-companies/

Bob Jensen's threads on the history of working women ---
http://faculty.trinity.edu/rjensen/bookbob2.htm#Women


"B-Schools Finally Acknowledge: Companies Want MBAs Who Can Code," by Cory Weinberg, Bloomberg Businessweek, July 11, 2014 ---
http://www.businessweek.com/articles/2014-07-11/b-schools-finally-acknowledge-companies-want-mbas-who-can-code

Jensen Comment
One question is whether this is mostly a filtering criterion or a genuine criterion for hiring. For example, some popular business schools require students to complete two courses in calculus before matriculating as undergraduate business majors. It's not so much that calculus is a prerequisite for business courses as it is that calculus weeds out the dummies.


It's doubtful that many Big Four partners can code.
More important are perceived trustworthiness and going the extra mile in client relations. In my opinion, most partners are the ones visible in public service (such as volunteer work for communities), work pro bono a lot of nights and weekends, and play a lot of golf with clients and prospective clients. I used to belong to a downtown bridge club in Bangor, Maine. A senior partner in a law firm who belonged to that club told me that his job was to get the clients that were served by his technical staff. Some partners with marginal devotion devotion to religion are extremely active in their churches, mosques, and synagogues. My point --- for partners it's the extra hours of the week building relationships outside the office that really count.

"The qualities of a Big Four partner:  Chris Carter, Crawford Spence and Claire Dambrin studied Big Four firms in three countries to find out what qualities make a partner," Economia, July 16, 2014 ---
http://economia.icaew.com/finance/july-2014/essay-the-qualities-of-a-big-four-partner 

The Big Four are quintessentially global organisations, their logos adorn major commercial centres and they are prominent players in most western economies. Unlike their corporate counterparts, their governance structures are more opaque. This is a consequence of the partnership model which gives a high degree of independence to each country in which the Big Four operates. Global organisations –in general – and the Big Four in particular invite the following question: to what extent is there convergence or divergence between their operations in different countries?

We set out to answer this question by researching partners in Canada, France and the UK. We were particularly interested in the types of people that became partner and the process of them actually getting there. Was this similar across the three countries or were there striking differences?

The broad career structure is much the same across the three contexts: following qualification, employees move into the manager position – during which time many tend to leave the firm – before proceeding to senior manager, director and ultimately partner. Only 2-3% of members of the Big Four will ever make partner; ascension to this position is to enter the elite of the accounting profession. In provincial cities, Big Four partners are well known “business celebrities”, while in capital cities they are players within their service lines. Partners are the pinnacle of the accounting profession for those that remain in private practice.

We started by looking at British and Canadian partners. What we found was remarkably similar: it takes most partners 15-17 years to become a partner after joining; 60 to 70 hour weeks are the norm; partners are more likely to be white and male; the process of becoming a partner has become far more formalised than it was in the past; most people who make partnership highlight the importance of “having a good mentor” to help them navigate the complex, Byzantine politics of a Big Four firm.

To add to this picture, interviewees emphasised the importance of trust: does the firm trust a candidate enough to make them a part-owner? All of this takes place against a broader economic backdrop which will determine whether a particular service is deemed worthy of supporting a further partner. The economic conditions can in boom times create more partnerships in a firm; recessionary times can preclude gifted candidates from making partner.

We talked to over 50 partners, ex-partners and people who didn’t make partner in Britain and Canada. The similarities far overshadowed any differences. Partners were very much “self-made men” and, save for a few exceptions, were drawn from modest social backgrounds. This meritocratic quality was deeply infused within the firms we visited, with a notable ‘can do’ ethos. The driven quality of the partners often extended to their leisure pursuits. Whereas the stereotype is of a partner playing a good deal of golf, they were much more likely to be competing in endurance cycle races or long distance running events. The participation in endurance sports is a fitting metaphor. Partners are driven, high energy people who exude self-confidence.

By midway through our research we were accustomed to partners recounting that “their career was different”. This statement surprised us as most of the partners spent most of their careers in one firm, something that is very unusual in the contemporary workplace, and we imagined that there was a distinct career path. The expression, however, spoke to the different ways in which the partners had proved themselves.

In every case, the accountant “proved themselves” through completing a difficult piece of work that gained praise from the firm. This demonstrated that the accountant had ability and could be trusted by the organisation. This building of reputation brought the accountant into new networks in the firm where more opportunities arose. Proving oneself as being very good at a complex job is generally enough to get a promotion to director. Beyond that, wannabe partners need to demonstrate that they can move effortlessly with senior executives in client firms and that they can generate revenue. It’s a cliché, but cash is king. The Big Four are packed full of extremely competent technical specialists – what makes someone stand out is their ability to generate fee income. Entrepreneurialism is a prime quality.

The similarities between British and Canadian partners were striking regarding this topic, in fact the only compelling difference was that British partners went for football and rugby metaphors, while their Canadian counterparts used ice hockey and NFL.

We travelled to France to find out about the French experience. Our intuition was that the capacity to generate new business would be crucial there too but that leverages to increase turnover might be of a different nature. In particular we expected that belonging to a cultural or social elite would be essential for partners to bring in new business in France. The Big Four are similarly prominent in France, although there are different rules around audit rotation. What became immediately clear was the Big Four are structured differently in France.

First, it was incredibly important where an employee had studied. In France, there are a number of Grandes Ecoles that are, in effect, elite Business Schools. The Big Four strive to recruit a quota from each of these schools. Unlike in Britain, where the Big Four recruit from a wide range of universities and where partners are pretty diverse in terms of their educational backgrounds, in France attending one of these Grande Ecoles will vastly increase your chances of getting recruited in the first instance, and is even more important in rising to partner grade in the second instance. One of our French partners explained: “We are worried when we don’t have enough ‘parisiennes’ [graduates of top Grandes Ecoles]. I find that daft but in this firm we always have the illusion that if you haven’t been to a ‘parisienne’ then you can’t be a partner. That said, given that the clients of tomorrow will have studied at the same place, it is better to have them.”

The quote reveals a great deal about how educational background is a determinant of future success in the Big Four in France. Simply put, having graduated from a top school (a parisienne) marks out an employee as special and puts them onto a different career trajectory from those who had attended more routine universities. In France Big Four firms agree with each other on starting salary grids depending on the school category of their recruits. High expectations are placed very early on their recruits from Grandes Ecoles and this has a very basic economic rationale.

It is through the process of offering parisiennes more varied and exciting work – projects that add value and generally “pampering” them – that their “specialness” becomes a reality in the French Big Four. Contrary to what we expected, educational pedigree actually becomes more important at the partner level: it is easier for graduates of the Grandes Ecoles to interact with each other and so future sources of revenue will come through the conversion of their educational background into social skills and new business for the firm. It is a fascinating contrast to the British and Canadian experiences where the treatment of recruits is much more homogeneous. More broadly, the French experience is suggestive of the grip that Grandes Ecoles have on elite careers within the French corporate sector.

The Grandes Ecoles cast a long shadow over the Big Four in France; this raises questions as to whether a different set of qualities are required to become partner. A key insight from our research study is that the pressures that French partners and aspirant partners face are much the same as in Britain and Canada: clients need to be kept happy; new business needs to be generated and delivered; new service lines need to be developed; for personal career strategies, aspirant partners need to be seen as less technical and more strategic.

In short, the descriptions of the Big Four in France were remarkably similar to their counterparts in Britain and Canada. What was particularly striking was the creed of commercialism that underpins the Big Four across the three countries. One partner in France explained: “The first thing we look at is [the candidate’s] commercial skills. Dilution [of profit-per-partner] is a real concern for us. If partners don’t bring in revenue, the partners’ committee will lose money because there is less to share in the end. So the capacity to make business grow obviously matters a lot.”

This quote could have come from any of the firms in any of the three countries. The ability to generate business and ‘grow the cake’ is an absolutely central skill for someone who wants to make partner. The central difference between Britain, Canada and France is that in the French case the assumption is that being a graduate of a Grandes Ecoles will help generate new business. In Britain and Canada it is demonstrably not the case that an elite degree will lead to these outcomes. In France, attendance at one of these schools has a huge bearing on an alumnus’s future career in the Big Four.

Our research emphasises that people skills – the ability to get on with people and build durable networks – are crucial to success in a Big Four career. These skills need to be converted into revenues. To put this in some sort of context, the following revenues were quoted to us. In Canada, one interviewee suggested that a partner needed to generate around $3m (Canadian) per annum (£1.63m), in France this figure was estimated at €3m (£2.4m), whereas in Britain, a figure of £2m was frequently cited. Partners are clearly under pressure to generate vast sums of fee income for the Big Four; the prospect of being able to generate such fees is crucial to ascending to a partnership.

Continued in article

See more at: http://economia.icaew.com/finance/july-2014/essay-the-qualities-of-a-big-four-partner#sthash.BukvhkPO.dpuf


"Women's Career Choices Don't Explain the Gender Pay Gap," by Natalie Kitroeff and Jonathan Rodkin, Bloomberg Businessweek, November 14, 2014 ---
http://www.businessweek.com/articles/2014-11-14/women-make-less-than-men-even-when-they-are-equally-qualified-mbas 

High-achieving women are paid less than men even when they have similar levels of experience and are in the same fields, according to new Bloomberg Businessweek data. Women graduating business school this year reported an average of $14,548 less in expected annual pay than men, graduating MBAs said in a survey of 9,965 students at 112 schools, conducted as part of our recently published biennial ranking of MBA programs.

Part of the reason women overall earned less is that they were more likely to go into fields with below-average salaries, like consumer products and advertising. But even within the same fields, women were paid less than men. Indeed, 17 of 22 industries that hired MBAs last year offered women less money. Women entering finance earned, on average, close to $22,000 less than men, the largest pay differential among companies that drive MBA hiring. Women were offered $12,300 less by tech companies, and $11,500 less by consulting firms than their male peers.

The analysis continues a debate that pits those who cite discrimination as the reason American women earn 77 cents to a man’s dollar against others who argue women make less because they opt for lower-paying jobs than men, work fewer hours, and interrupt their careers to have children. When you account for those factors, they say, the pay gap all but disappears.

It may be true that over the course of their lives, women make choices that cost them at work. So it’s useful to analyze the pay difference at a career moment when they’re both highly qualified and available to work. Women graduating from top MBA programs are usually in their late twenties or early thirties and have just sunk over $100,000 into a degree, presumably to raise their value to employers—just like their male counterparts. We limited this analysis to people who had full-time jobs lined up; so there was no gender difference in their commitment to working a full day. Even with those things being equal, the pattern held.

Without looking at the individual circumstances of the women in the survey, it’s hard to know whether there’s something about them besides their gender that could knock their pay after graduation, like how many years of work experience they had before their MBA. One data point in our survey, however, helps get at the question of experience: whether they graduated into the same industry as the one they were in when they started their MBA.

Career-switchers should, in theory, be on a level playing field. A man entering a new industry straight out of an MBA program has the same amount of experience in that industry (none) and the same level of education as a woman in the same situation. Yet women who were switching into tech, finance, or consulting—the three industries that hire the most MBAs—made an average of $12,800 less than men who were also newbies. Men who were in one of these jobs before business school, and stayed the course after graduating, made $13,300 more than women on the same path.

The postgraduation gap also wasn’t explained by the fact that women, on average, were making less than the men to start with. When we controlled for people’s compensation before getting to campus, the gap narrowed, but didn’t disappear. Women made about $8,500 less than men upon graduating regardless of what they were pulling in beforehand.

Our data suggest that employers pay certain people less not because of their reproductive choices or penchant for low-paying gigs, but because they are women.

Continued in article

 

"Women with MBAs from Elite Schools Are More Likely to Drop Out of the Workforce," Harvard Business Review Blog, November 19, 2014

Married mothers who are graduates of elite business schools are 30 percentage points less likely to be employed full-time than mothers who are graduates of less-selective B-schools, according to a study by Joni Hersch of Vanderbilt Law School. The reasons are unclear, but women who hold MBAs from selective schools may have high family incomes, which allow them to take time off from work to raise children. Their lower levels of labor-market participation may have the effect of limiting the number of women reaching high-level corporate positions, because elite workplaces prefer to hire MBAs from elite schools, Hersch says.

SOURCE: Opting Out Among Women with Elite Education ---
http://links.mkt3142.com/ctt?kn=12&ms=OTk1NDAyMAS2&r=MTkyODM0MDg0MAS2&b=0&j=NDIxNTY1NzA4S0&mt=1&rt=0

The Third Wave of Feminism (Gender Studies)
http://faculty.trinity.edu/rjensen/HigherEdControversies2.htm#Feminism

Bob Jensen's threads on the history of professional women ---
http://faculty.trinity.edu/rjensen/bookbob2.htm#Women


How to Mislead With Statistics
"The 10 Best Jobs For 2015," by Jacquelyn Smith, Business Insider, November 20, 2014 ---
http://www.businessinsider.com/best-jobs-for-2015-2014-11?op=1

. . .

Marketing Executive

Software Developer, Applications

Registered Nurse

Industrial Engineer

Network and Computer System Administrator

Web Developer

Medical and Health Services Manager

Physical Therapist

Speech-Language Pathologist

Continued in article

Jensen Comment
The above article is terrible in many respects.

  1. The biggest failing is that it does not define "best jobs." There are many criteria for "best jobs." Best can be defined in terms of starting compensation packages, demand versus supply, mobility (e.g., are the jobs only available in larger urban centers or are they available in rural areas across the USA), amount of overnight travel required, promotion opportunities and career paths, nature of the compensation (fixed salary versus bonuses versus sales commissions) etc.
     
  2. The article does list "growth potential" as an annual percentage growth in compensation, but this is highly misleading. In some careers the inflation-adjusted compensation is asymptotic. The growth in compensation for a Registered Nurse or a Physical Therapist may be 5% per year for the first few years, but the after adjusting for inflation the growth potential is likely to be asymptotic as it approaches the high end in that career. A CPA or computer program may work for a firm for five years and then go to work for a client at double or triple compensation rates.
     
  3. The article mixes executive jobs like Marketing Executive, Network and Computer System Administrator, and Medical and Health Services Manager with non-executive jobs like Registered Nurse, Physical Therapist, and Speech-Language Pathologist. There are usually entry jobs available for Registered Nurse, Physical Therapist, and Speech-Language Pathologist, but nobody graduates after four years expecting to get job offers as a Marketing Executive or a "Manager" of anything.
     
  4. Some job categories are too vague in terms of a high degree of variance in opportunity and compensation. For example, Web Developers are a dime a dozen with extremely high variance in opportunity and compensation.
     
  5. In my opinion, the "best jobs" at the time of graduation are those with high demand, on-the-job-training, and client/customer exposures that will lead to huge opportunities down the road. The starting salary is very low in importance if a job offers tremendous opportunity for training and career advancement. For example, a new CPA in a large accounting firm usually receives very extensive training and exposure to clients that will offer tremendous job offers down the road. A Registered Nurse, Physical Therapist, and Speech-Language Pathologist may end up doing pretty much the same thing for 40+ years.
     
  6. For men or women with family responsibilities some jobs can be performed heavily without leaving the home or children. For example, many CPA firms now let workers work from home computers a very large share of the work week. This is usually not the case for a all of the above supposed "best jobs" other than possibly a "Web Developer."
     
  7. I'm confused why "Industrial Engineer" beats out other types of engineers in the above ranking. Most rankings that I have seen before list the Chemical Engineers and Electrical Engineers well above Industrial Engineers. Civil Engineers don't fare as well.
     

I could go on and on lambasting the above article. but perhaps you get the idea by now.


How to Mislead With Statistics:  Ignore the Variance and Ignore the Outliers (in this case graduates without law jobs)
"Why Huge Salaries Don't Necessarily Make Law Grads Rich," bv Akane Otani, Bloomberg Businessweek, October 22, 2014 ---
http://www.businessweek.com/articles/2014-10-22/law-school-grads-make-good-salaries-but-have-high-debt-and-few-jobs

Graduates of Harvard Law School, among all the graduate schools in the U.S., make the most money, earning a median salary of $201,000 once they are 10 years out of school, according to a new report. Law schools rank higher than other graduate programs when it comes to salaries, yet skyrocketing debt and a thinning job market for law graduates may dampen the appeal of a J.D.

Harvard Law School, Emory University School of Law, and Santa Clara University School of Law topped salary rankings for graduate and professional programs in a study released Wednesday by compensation-tracking company PayScale. Of the top 20 schools, 12 were law schools. The rest were business schools.

Despite a few law schools dominating the rankings, law school graduates did not hold claim to the most lucrative degree on the market. The median midcareer salary for a law school graduate was $139,300—a far smaller sum than the figures boasted by the schools that topped PayScale’s rankings. Considering that the median debt load for law school graduates rose to $140,616 in 2012, even a six-figure salary doesn’t sound as glamorous.

What’s more, Payscale’s data didn’t factor in law school grads who don’t have jobs—and jobs are scarcer for lawyers now than they have been in years. The employment rate for law school graduates has dropped six years in a row. “Since 1985, there have only been two classes with an overall employment rate below [84.5 percent], and both of those occurred in the aftermath of the 1990-91 recession,” the National Association for Law Placement said in a report this summer. Over the past decade, at least 12 firms, accounting for more than 1,000 lawyers, have shut their doors. Others are eyeing cuts among partners.

One reason why a J.D. isn’t a get-rich-quick guarantee is the wide range of salaries within the field of law. A new graduate working as a public interest lawyer or for local government will make an average of $60,000 or less a year, according to the NALP.

“If you want to be a public defender vs. a corporate attorney, there is going to be a big difference in terms of ability to pay off your loans,” says Lydia Frank, editorial and marketing director for PayScale. “Because there’s such a wide variety in earnings potential, you can’t assume that any job you’re going to pursue with a J.D. is going to be equal.”

While the salary rankings may provide a good benchmark for what’s possible with an elite law degree, great job connections, and a lucrative specialty, the average would-be lawyer should think carefully about the return on an investment in legal education.

“If you’re going to take out ‘X’ amount in student loans, you really want to have a good understanding of the likelihood of being able to repay that loan in a timely fashion,” Frank says. “I think it still behooves everybody to really examine things other than salary potential, such as employment potential for JDs.”

Jensen Comment
Traditionally, accounting graduates who go to work for large CPA firms get great training and great client exposure. The bad news is that probabilities of attaining partnerships after 6-10 years are very low. The good news is that prospects of going to work for clients are high, and new graduates never wanted the pressures, travel, and time commitments of partnerships in CPA firms in the first place.

Among the least-wanted pressures are the pressures to obtain new clients via lots of night and weekend community volunteer work, golf outings that aren't all that much fun, and selling the firms' services over and over and over year after year Some of the things that discourage faculty from striving to be college presidents also discourage staff accountants and lawyers from seeking partnerships.

My point is that winnings of the  highest salaries as partners in both law and accounting firms are not all they're cracked up to be in terms of job stress, long hours, frequent travel, glad-handing, broken marriages, neglected children, etc. Most of the very good lawyers and accountants want no part of this partnership lifestyle even at much higher compensation. Men and women partners who are also parents are advised to have spouses who will take on the chores of child rearing and keeping the home fires burning.

A bummer for finance and marketing graduates is performance-based compensation. For example, landing that job on Wall Street sounds great until you realize that your pay is really based upon sales commissions. It's not a great life unless you really like to spend your days wooing customers to buy what you're selling (like bonds and derivatives) year after year after year.


"Where the Jobs Are," Inside Higher Ed, April 23, 2014 ---
http://www.insidehighered.com/quicktakes/2014/04/23/where-jobs-are#sthash.NKe4NhNO.dpbs

A new analysis of available jobs finds that the highest demand (among openings for college graduates) is for white-collar professional occupations (33 percent) and science and technology occupations (28 percent). The analysis -- by the Georgetown University Center on Education and the Workforce -- is consistent with that center's past research, in finding many more opportunities for those with a bachelor's degree than for those without a college degree.

The new study is based on online job advertisements. The most in-demand professional jobs are accountants/auditors and medical/health service managers. In STEM, the most in-demand jobs are for applications software developers and computer systems analysts.

Jensen Comment
There's a bit of mixing of apples and oranges here. The study says it looks at bachelor's degrees. But in in order to take the CPA exam accountants and auditors mush have 150 credits which for most graduates translates to a masters degree. Also many medical/health service programs are graduates of masters of health care administration programs such as the graduate health care administration program at Trinity University.

In some cases like chemistry and biology the job prospects with a bachelor's degree are mostly lousy McJobs. But those majors have an edge for being admitted to graduate programs, especially medical schools, where opportunities abound upon graduation.

For those rejected for graduate schools or who cannot afford graduate schools, career opportunities are probably better in the skilled trades such as those $150,000 - $200,000 welding jobs.

Bob Jensen's career helpers ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


America's Best Companies to Work For --- http://247wallst.com/special-report/2014/08/07/236519/12/

Jensen Comment
Among the largest CPA firms, only EY made this listing.

In general, a company on this list may have wide variation of "best" local offices. For example, among CPA and large consulting firms like Accenture, a firm not on the list may have a better local office than a firm on the list. Graduating students should tune in closely to alumni in local offices. Client exposure in a local office is exceedingly important for career opportunity, training, and satisfaction. Thus any two employees in a given local office may have vastly different evaluations of their jobs at a given time and over an extended period of time. Most of the companies in this listing have enormous local offices in major cities. Sometimes small is better.


"Welders Make $150,000? Bring Back Shop Class Taking pride in learning to make and build things can begin in high school. Plenty of jobs await," by John Mandel, The Wall Street Journal, April 21, 2014 ---
http://online.wsj.com/news/articles/SB10001424052702303663604579501801872226532?mod=djemMER_h&mg=reno64-wsj

In American high schools, it is becoming increasingly hard to defend the vanishing of shop class from the curriculum. The trend began in the 1970s, when it became conventional wisdom that a four-year college degree was essential. As Forbes magazine reported in 2012, 90% of shop classes have been eliminated for the Los Angeles unified school district's 660,000 students. Yet a 2012 Bureau of Labor Statistics study shows that 48% of all college graduates are working in jobs that don't require a four-year degree.

Too many young people have four-year liberal-arts degrees, are thousands of dollars in debt and find themselves serving coffee at Starbucks SBUX +1.10% or working part-time at the mall. Many of them would have been better off with a two-year skilled-trade or technical education that provides the skills to secure a well-paying job.

A good trade to consider: welding. I recently visited Pioneer Pipe in the Utica and Marcellus shale area of Ohio and learned that last year the company paid 60 of its welders more than $150,000 and two of its welders over $200,000. The owner, Dave Archer, said he has had to turn down orders because he can't find enough skilled welders.

According to the 2011 Skills Gap Survey by the Manufacturing Institute, about 600,000 manufacturing jobs are unfilled nationally because employers can't find qualified workers. To help produce a new generation of welders, pipe-fitters, electricians, carpenters, machinists and other skilled tradesmen, high schools should introduce students to the pleasure and pride they can take in making and building things in shop class.

American employers are so yearning to motivate young people to work in manufacturing and the skilled trades that many are willing to pay to train and recruit future laborers. CEO Karen Wright of Ariel Corp. in Mount Vernon, Ohio, recently announced that the manufacturer of gas compressors is donating $1 million to the Knox County Career Center to update the center's computer-integrated manufacturing equipment, so students can train on the same machines used in Ariel's operations.

In rural Minster, Ohio, near the Indiana border, electrician and entrepreneur Jack Buschur is creating the Auglaize & Mercer County Business Education Alliance, which will use private-sector dollars to fund a skilled-trade ambassador to walk the halls of local high schools with the mission of recruiting teenagers into these fields. This ambassador will also work to persuade school guidance counselors and administrators to change their tune that college is the only route to prosperity, and to encourage them to inform their students about the many opportunities in skilled trades.

At Humtown Products in Columbiana, Ohio, near the Pennsylvania border, CEO Mark Lamoncha is coordinating tours for local high-school guidance counselors to visit his company so that they can learn about job opportunities in advanced manufacturing and 3-D printing. Rather than having students seeing posters only for Ohio State, Pitt, Harvard and Yale in their high-school hallways, he wants to convince the schools' guidance counselors to also post signs for the Choffin Career & Technical Center in Youngstown and the New Castle School of Trades in Pulaski, Pa.

The Ohio School Board Association recently heard a similar message—from the actor John Ratzenberger, whom you might remember as Cliff Clavin, the mailman from the 1980s sitcom "Cheers." Mr. Ratzenberger these days is devoting considerable charitable time and dollars toward raising the profile of America's skilled laborers as role models for young people.

He began this effort in 2004 with a TV show called "Made in America," focusing attention on the rewarding labor of blue-collar workers making everything from Steinway pianos and Wonder Bread to Caterpillar CAT +1.37% equipment and Chris Craft yachts. Now he's crisscrossing the country urging schools to invest in vocational education. On "Cheers," Cliff Clavin never appeared to be overly industrious, but in promoting the restoration of shop class in U.S. high schools, Mr. Ratzenberger is working hard to put young Americans in good jobs. Educators could learn a thing or two from him.

Mr. Mandel is the treasurer of Ohio.


Most of the Fast Growing Jobs in this Decade Do Not Require a College Education
"I Looked Up The Fastest-Growing Jobs In America, And Boy Was It Depressing," by Rob Wile, Business Insider, April 7, 2014 ---
http://www.businessinsider.com/fastest-growing-jobs-2014-4 

Jensen Comment
This study is based upon changes in numbers of employees in each occupation. Opportunities are much better in some careers having emerging skills and jobs having high barriers to entry. Opportunities will abound for psychiatrists who will get soaring increases in compensation due to continued shortages under the ACA act. The big barrier to psychiatry is the talent and years of medical school required combined with a reluctance of many medical school graduates to take on some of the dangers of being a psychiatrist treating some unstable and threatening patients.

The study also seems to leave out the shortages of  high tech specialists such as cybersecurity experts, big data analytics, and FBI computer and white-collar crime experts.

My point is that the rate of growth barrier in many instances is on the supply side rather than the demand side such that those who become educated and trained for these unfilled demand jobs (such as shortages of cybersecurity experts and high-tech weapons development experts) have great career opportunities. Already many many such experts are being admitted to the USA on green cards because the numbers of such experts in the USA are so small relative to demand.

From the CFO Journal's Morning Ledger on April 8, 2014

Corporation cash finds its way into university curricula
State universities seeking new revenue are partnering with companies that are trying to close a yawning skills gap in fast-changing industries, the
WSJ reports. Students at the University of Maryland, for instance, are enrolling in a cybersecurity concentration funded in part by Northrop Grumman Corp., and the company is helping to design the curriculum and pay for part of a new dormitory. IBM last year deepened a partnership with Ohio State University to train students in big-data analytics.

Jensen Comment
Prospects for auditing, systems, and tax accounting graduates are expected to remain high. However, in most instances graduates must have five years of full-time specialty study in college. It's much more difficult and costly to become a CPA than to become an insulation worker or health care aid. It's also much more costly and difficult to become a psychiatrist than a CPA.

"American Bar Association Releases 'Bleak' Jobs Data for 2013 Law School Grads," by Paul Caron, TaxProf Blog, April 10, 2014 ---
http://taxprof.typepad.com/taxprof_blog/2014/04/aba-releases-.html


A Whitehouse Website That Does Work (almost entirely)
College Scorecard --- http://www.whitehouse.gov/issues/education/higher-education/college-score-card

College Scorecards in the U.S. Department of Education’s College Affordability and Transparency Center make it easier for you to search for a college that is a good fit for you. You can use the College Scorecard to find out more about a college’s affordability and value so you can make more informed decisions about which college to attend.
 
To start, enter the name of a college of interest to you or select factors that are important in your college search. You can find scorecards for colleges based on factors such as programs or majors offered, location, and enrollment size

Jensen Comment
Note that at the above site you can also search for a college by name. Some data like average earnings of graduates is still being compiled by the Department of Education. Average earnings of graduates will probably be a misleading number. Firstly, the most successful graduates might track into other colleges to complete their undergraduate and/or graduate degrees. Hence feeder colleges may be given too much or too little credit in terms of earnings success.

Secondly, I think earnings "averages" are misleading statistics unless they are accompanied by analysis of standard deviations and kurtosis.

Thirdly, high earnings averages cannot all be attributed to where a degree is earned. For example, students with stellar SAT scores on average are more likely to have higher earnings no matter where they got their undergraduate engineering, science, business or whatever baccalaureate degrees. Students with low SAT scores may be likely to earn less in lower paying jobs like elementary school teaching because of lower academic abilities as opposed to their particular alma maters. And yes I know that some high SAT graduates who might have made it to medical school teach first graders because they are dedicated to teaching and/or want summers free to raise their own children.

Fourthly, a high percentage of college graduates become parents and full-time homemakers. This might distort earnings statistics unless somehow factored out of the calculation of averages. However, it's difficult to factor out in many instances. For example, CPA firms now hire more female than male graduates from accounting masters degree programs (undergraduates are not allowed to take the CPA examination). This will raise a college's average earnings for graduates before a significant number of those women drop out of the workforce --- often for only a decade or two before somehow returning to their accounting careers. In other instances the male spouses they married in college drop out of their jobs to be homemakers so their traveling wives can carry on as auditors and tax accountants and accounting information systems experts. My point is that those starting salaries are not necessarily for lifelong continuous careers for many mothers or sometimes fathers.

And there's the problem of debt burdens. Last night our furnace quit when the temperature was headed toward an 10 degree night. We recently changed plumbing companies, and a very nice and very skilled young man arrived on a Sunday night (right after the Patriots clobbered the Steelers) to instantly identify the part (the controller) that failed on our furnace. He had a replacement part in his truck.

In the meantime our conversation drifted to the topic of student loans. We mentioned how our son and his wife both amassed over $60,000 in debt and had to remain at their old jobs after graduating from college --- meaning their college degrees burdened with debt did not help them in the least to find better jobs.

Our new plumber then explained how his wife amassed a student debt of $88,000 which he's now paying off. She has two masters degrees and cannot find a job. One of these degrees is in political science and the other is in international relations. If she moved to Boston she could possibly find work, but the last thing either of them want is to leave the White Mountains to live in Boston or any other mega city.

I think what he was saying is that before taking on such heavy student debt she should perhaps have done better planning about where she wanted to live --- or more importantly where she did not want to live.

"Prospective Adult Students Miss Key Data on College Options, Report Says," by Katherine Mangan, Chronicle of Higher Education, November 4, 2013 ---
http://chronicle.com/article/Prospective-Adult-Students/142815/?cid=at&utm_source=at&utm_medium=en

Most adults who are considering college—either completing a degree or starting one for the first time—aren't tapping into the wealth of information about costs, graduation rates, and job prospects, and as a result they aren't finding the right fit, according to a report released on Monday by Public Agenda, a nonprofit research group.

The report, "Is College Worth It for Me? How Adults Without Degrees Think About Going (Back) to School," says that most prospective adult students worry about the cost of college and how to balance studies with families and careers. They're looking for colleges with practical programs that will help them land jobs, as well as personalized support from caring faculty members and advisers.

The report, which was financially supported by the Kresge Foundation, was based on a survey this past spring of 803 adults, ages 18 to 55, who lack college degrees but expect to start earning a certificate or degree in the next two years. The group, which excludes students coming straight from high school, accounts for about a third of first-time college students in the United States, according to the report.

The survey found that adults ages 25 to 55 have more doubts about going to college and are less likely to have concrete plans. Those under 25 worry more about whether they can succeed at college and land a job afterward.

Continued in article

Bob Jensen's career helpers (and yes I know education is important for reasons other than a career) ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


This is worthwhile advice to graduating students in accounting and finance and probably in some other disciplines.
I do suggest that men wear dark suits to an interview with business recruiters --- and long dark socks, shined shoes, and white shirts.
Dress like you already have the job and are going to be meeting with a client!
I don't have anything against a black suit, but my male and female students generally preferred dark blue suits.
Their bosses generally prefer pin stripes and are most often seen in vests rather than suit coats.

"To My Fellow Job-Hunting College Seniors Never wear a black suit to an interview. Get a Gmail address. LinkedIn? Yes. And write thank-you notes," by David Pierce, The Wall Street Journal, March 17, 2014 ---
http://online.wsj.com/news/articles/SB10001424052702303730804579435040049720068?mod=djemBestOfTheWeb_h&mg=reno64-wsj

"I have no idea what I'm doing." This is the thought that runs through the minds of college students most of the time. As we begin to look for jobs during our senior year, between bouts of temporary alcohol-induced amnesia, we start to suspect that our cluelessness is a real problem. When we find out that the guy who has worn the same Greek function T-shirt and sunglasses backward around his neck for four years has accepted a job offer, panic sets in.

At the University of Arkansas' Walton College of Business, I have diligently learned the CAPM model and inner workings of financial statements. I can DCF all D-A-Y. But when it came to my job search I discovered a disconnect between my education and the real world.

So to my fellow generation of entitled adult-adolescents who expect a $75,000 salary if they're going to get up before 10 a.m., here's my advice from the other side of the job search. You won't hear any of this from your college career center.

• Never wear a black suit to an interview. Black suits are for weddings and funerals. Go to a classy men's boutique and have them fix you up with a nice $500 suit, gray or navy blue. It'll last you five years. The key is to make sure it fits so you'll feel snappy in the job interview despite your stutters and flop sweat. If you can swing it, buy the gray and the blue suit. Wear the blue for the first-round interview, and the gray to the more formal second- or third-round interviews. (Women: Sorry, I'm not qualified to advise on pencil-skirts and heels.)

• If you get nervous in social situations, make an effort to go out to a bar—not with your buddies—a few months before interview season, have a couple of drinks, and strike up a conversation with an unfamiliar girl (or guy). Bars are low-pressure, and even if you do get shut down, you'll realize that the rejection isn't that bad. More important, you'll gain new confidence that will help in higher-pressure environments such as interviews and networking sessions.

• In networking sessions, don't talk about the fascinating people you've met or the exotic places you've been if that information hasn't been strongly solicited by the other person. Better to talk about your friend who deep-fried an entire bag of Doritos than the semester you spent at Oxford. You'll get laughs and seem down-to-earth.

• Don't use your university email on your resume. Schools often discontinue email addresses, and if an employer wants to get in touch after graduation you'll be out of luck. Get a Gmail account with some easy-to-understand form of your name. Note: It's safe to assume that job interviewers think people with Yahoo YHOO -0.03% or AOL email accounts are suspect.

• When you get a business card, write on the back where and when you met the person and any useful notes about him or her. Keep track of these cards. Personally, I use a spreadsheet for all the info. Email your contacts—even a few lines—every three or four months and make sure you have something to say.

• Trying to network with someone in a company but don't know their email? If you have someone else's email from the company, follow the format. If an analyst's email is John.Doe@bank.com, and you want to get in touch with Jane Smith, send the email to Jane.Smith@bank.com. I have used this trick a few times and it works.

• LinkedIn. Get one.

• Social Media. As you've noticed, parents now use Facebook FB -0.03% more than we do, and the people who are thinking about hiring you will probably be parents. Before you start your job or internship search, reset your privacy settings so that strangers can see only your profile picture. Choose a presentable photo—no random arm around you or red Solo cups. Make your Twitter TWTR +0.25% and Instagram private. Oh, and delete your Myspace if it still exists. Any potential employer will Google GOOG +1.65% you, so if there's anything floating around on the Web that you don't want them to see, take it down.

• Set up your voice mail like someone who has a real job or deserves one. Don't make people sit through even five seconds of your favorite song or your jokey explanation of why they need to leave a message. If they're calling to set up a job interview, they just want to be sure it's you.

• Write thank-you notes for job interviews. Emails don't cut it, so play it safe and do both. Write and mail the note the minute you get home.

• Once you accept a job offer, don't talk about your salary—you'll either sound like you're bragging or you'll discover that you should have held out for more. An exception: Friends may ask in earnest, especially juniors, so they can better grasp the job market. But tell them at your own risk.

• If you've accepted an offer, do everything in your power to help classmates find a job. Getting an offer means you're doing something right and probably have at least one valuable piece of advice to pass along. Share if others ask. You would want someone to do the same for you.

Don't worry, if you get one or more of these things wrong, it isn't going to totally kill your chances of landing an internship or job. And it was probably time to clean up your Facebook anyway.

Mr. Pierce is a senior finance student at the University of Arkansas' Sam M. Walton College of Business. After graduation, he'll be working as an investment-banking analyst.

Jensen Comment
Recruiters are hard to predict for interviews, because they often pride themselves in not being conventional. Most importantly be yourself and be totally honest especially if questions border on the fringes of politics. But also be prepared for trick questions. Often it's not the answers that are important. It's the way you handle yourself when you don't know the answers. This is a job interview, not a Ph.D. oral examination or an interview for a faculty job.

I suggest that men and women be prepared to make conversation. In the interviews keep your questions focused on career opportunities like training and clients you might be serving. My favorite male and female employees can also informally talk sports statistics with Nate Silver. It's not like you will be asked sports questions in a formal interview. But interviewers have been known to take recruits to lunch.

Like it or not, business firms are usually looking for team players even when trying to hire geeks. They are almost always looking for recruits who can make conversations. Learn how to keep conversations going by asking questions in various settings from cocktail parties to business luncheons. Sometimes learn from watching others who are really good at starting conversations and keeping them going. Avoid personal questions that might embarrass a recruiter who really does not want to admit that he or she has five kids by three former marriages and an extramarital affair.

Be prepared for a  recruiter that prefers stress testing. Hold your temper, be calm, and don't show the cracks in your confidence. Always remain polite and as self-assured as possible. This is not a cop giving you a traffic ticket. You don't have to keep your mouth shut or be timid. Timid people often have to look for another job.

If you don't feel like it do not be embarrassed by turning down alcohol when others around you are drinking the hard stuff.  If if you do imbibe always stay sober enough to drive safely home even if you are not the designated driver. Always know how your body handles alcohol. Whereas I get happy and talkative after two martinis, I know some folks who turn surly on booze. That's not good!

And lastly, never post anything in a social media site that you might be embarrassed to discuss in a job interview. The interviewer may see this site before or after the interview or hear about it from somebody you know. Taking political sides should not hurt you when seeking a business job --- unless you are applying for a faculty position in a college where conservative leanings can kill your chances until you're granted tenure.

Bob Jensen's threads on careers ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


"Accounting Doctoral Programs:  A Multidimensional Description," by Amelia A. Baldwin, Carol E. Brown and BradS. Trinkle.
http://www.academia.edu/532495/Accounting_Doctoral_Programs_A_Multidimensional_Description
Advances in Accounting Education: Teaching and Curriculum Innovations, Volume 11, 101–128Copyright r 2010 by Emerald Group Publishing Limited
ISSN: 1085-4622/doi:10.1108/S1085-4622(2010)000001100

Accounting doctoral programs have been ranked in the past based on publishing productivity and graduate placement. This chapter provides descriptions of accounting doctoral programs on a wider range of characteristics. These results may be particularly useful to doctoral applicants as well as to doctoral program directors, accreditation bodies, and search committees looking to differentiate or benchmark programs. They also provide insight into the current shortage of accounting doctoral graduates and future areas of research. Doctoral programs can be differentiated on more variables than just research productivity and initial placement. Doctoral programs vary widely with respect to the following characteristics: the rate at which doctorate sare conferred on women and minorities, the placement of graduates according to Carnegie classification, AACSB accreditation, the highest degree awarded by employing institution (bachelors, masters, doctorate),

Continued in article

 

Table 1. Accounting Doctoral Graduates by Program, 1987–2006(Size; 3,213 Graduates).
http://www.academia.edu/532495/Accounting_Doctoral_Programs_A_Multidimensional_Description
Note that I corrected the ranking for North Texas State from the original table
The average of 161 per year has been declining. In 2013 there were only 136 new accounting doctorates in the USA.
Rank Program    # Rank Program    # Rank Program     # Rank  Program     #
01 Texas A&M 87 25 Arkansas 46 49 Columbia 31 73 MASS 17
02 Texas 78 26 Florida State 45 50 Drexel 31 74 Syracuse 16
03 Illinois 72 27 Indiana 45 51 Northwester 31 74 Wash St. Louis 15
04 Mississippi 70 28 Tennessee 44 52 Cornell 30 75 Central Florida 14
05 Va. Tech 70 29 Texas Tech 44 53 Purdue 29 76 Cincinnati 14
06 Kentucky 69 30 Georgia St. 43 54 Minnesota 28 77 Cleveland St 14
07 Wisconsin 69 31 Colorado 42 55 Oklahoma 28 78 MIT 13
08 North Texas 65 32 NYU 42 56 Penn 28 79 Fla Atlantic 12
09 Arizona 64 33 Oklahoma St 42 57 Rochester 28 80 UCLA 12
10 Georgia 64 34 Rutgers 42 58 So. Illinois 28 81 Union NY 10
11 Penn State 63 35 Alabama 41 59 Oregon 27 82 Texas Dallas 09
12 Nebraska 61 36 Va. Common 40 60 Texas Arling. 27 83 Tulane 08
13 Arizona St. 60 37 Memphis 38 61 Utah 27 84 Duke 6
14 Houston 60 38 Stanford 37 62 Baruch 25 85 Jackson St. 6
15 Michigan St. 60 39 Chicago 36 63 Connecticut 24 86 Fla. Internat. 4
16 Washington U 55 40 Missouri 36 64 Carnegie M. 23 87 SUNY Bing. 4
17 So. Carolina 54 41 No. Carolina 36 65 Geo. Wash 23 88 Yale 4
18 Michigan 52 42 So. Calif. 36 66 Wash. State 23 89 Ga. Tech 3
19 La. Tech 51 43 UC Berkeley 35 67 Kansas 22 90 Rice 3
20 Ohio State U 50 44 Boston Univ 35 68 SUNY Buffalo 21 91 Tx. San Anton. 3
21 Kent State 49 45 Maryland 35 69 St. Louis 21 93 Miami 2
22 LSU 49 46 Pittsburg 35 70 CWRU 19 94 Cal. Irvine 1
23 Florida 47 47 Iowa 34 71 Harvard 19 95 Hawaii 1
24 Mississippi St 47 48 Temple 34 72 South Fla. 19 96 Vanderbilt 1

Jensen
For years prior to 1987 and years subsequent to 2006 you can see the data by years in a sequence of the Accounting Faculty Directories by James Hasselback. For example, for years 1995-current go to
http://www.jrhasselback.com/AtgDoct/XDocChrt.pdf
For years prior to 1995 you have to go to earlier editions of Jim's directories.

There are some minor discrepancies. For example, the above table shows 3 graduates for Rice after 1987 whereas Jim Hasselback shows no graduates at Rice after 1995. I did not check for all the discrepancies between the two data sources. Rice no longer has a doctoral program in accountancy. There are several newer (small) programs such as the one at the University of Texas at San Antonio.

The Baldwin, Brown, and Trinkle paper goes on to discuss trends over time in the leading programs and much much more. I did not quote data from their paper that was not previously provided by Jim Hasselback at
http://www.jrhasselback.com/AtgDoct/XDocChrt.pdf

A few of the many important revelations in the BBT study that might be noted for 1987-2006:

There is much more detailed information available in this study at
http://www.academia.edu/532495/Accounting_Doctoral_Programs_A_Multidimensional_Description

Bob Jensen's threads on careers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


"Gender Ratios at Top PhD Programs in Economics," by Galina Hale and Tali Regev, April 8, 2013 ---
http://econ.tau.ac.il/papers/foerder/2013-10.pdf

The growing concern for the under-representation of women in science and engineering has prompted an interest in the mechanisms driving the share of women in these fields, and in the effect that the gender diversity of the faculty has on the share of female students. Interestingly, some universities are more successful than others in recruiting and retaining women, and in particular female graduate students. Why is this the case? This paper explores the uneven distribution of female faculty and graduate students across ten of the top U.S. PhD programs in economics. We find that the share of female faculty is correlated with the share of female graduate students and show that this correlation is causal. We instrument for the share of female faculty by using the number of male faculty leaving the department as well as the simulated number of leavings. We find that a higher share of female faculty has a positive effect on the share of female graduate students graduating 6 years later.

Women are under represented in science and engineering. In 2010, Men outnumbered women in nearly every science and engineering field in college, and in some fields, women earned only 20 percent of bachelor’s degrees, with representation declining further at the graduate level (Hill et al., 2010). In economics, women constituted 33 percent of the graduating PhD students, and only 20 percent of faculty at PhD granting institutions (Fraumeni, 2011). Women in economics have been shown to have different career paths than men and to be promoted less (Kahn, 1993; Dynan and Rouse, 1997; McDowell et al., 1999; Ginther and Kahn, 2004). Focusing on the progression of women through the academic ladder, most research has failed to fully account for the effect that successful women in the field have had on the entrance and success of other women. More specifically, the gross effect that women faculty have on the share of female students have not been fully explored. In this study we address this gap in the literature and focus on the causal relationship between the share of female faculty in top economics departments and the share of graduating female PhD students.

Continued in article

Jensen Comment
Women seem to be making greater strides in Ph.D. achievements in economics that in many other science fields. It would seem that they could make greater strides in fields like computer science where males dominate to a much higher degree.

In economics at the undergraduate and masters levels in North America there are significantly more male graduates than female graduates. Having more female teachers tends to increase the number of undergraduate majors according to the above study.

In accounting at the undergraduate and masters levels in North America there are significantly more women graduates than men, and the large CPA firms hire more women than men. There is a possible glass ceiling, however, in terms of newly-hired CPA-firm women who eventually become partners. That is a very complicated story for another time other than to note that the overwhelming majority of newly-hired males and females in large CPA firms willingly leave those firms after gaining experience and very extensive training.

Many of those departures go to clients of CPA firms where the work tends to have less travel and less night/weekend duties as well as less stress. In my opinion most accounting graduates who go to work for CPA firms did not ever intend to stay with those CPA firms after gaining experience and training. This accounts for much of the turnover, especially in large CPA firms. Turnover has an advantage in that it creates more entry-level jobs for new graduates seeking experience and extensive training.

Bob Jensen's threads on the history of women in the professions ---
http://faculty.trinity.edu/rjensen/bookbob2.htm#Women


Here Are The Chances An Internship Lands You A Job In Your Industry ---
http://www.businessinsider.com/internships-to-jobs-2014-9#ixzz3D1AhroIH

. . .

From our reading of 2013 data from LinkedIn, here's the percentage of internships that lead to jobs in the following industries:

• Accounting: 60% 
• Oil & energy: 33%
• Investment banking: 31%
• PR & communications: 28%
• Law practice: 26%
• Apparel & fashion: 25%
• Hospitality: 24%
• Government administration: 23%
• Publishing: 22%
• Museums: 21%
• International affairs: 20%
• NGO management: 19%

The task, of course, is landing those gigs in the first place. We got you covered: here are our guides to nabbing a Google or Wall Street internship. 


Read more:
http://www.businessinsider.com/internships-to-jobs-2014-9#ixzz3D1B7DTvE
 

2009 Best Places to Start/Intern According to Bloomberg/Business Week --- Click Here
Also see the Internship and Table links at http://www.businessweek.com/careers/special_reports/20091211best_places_for_interns.htm
The Top five rankings contain all Big Four accountancy firms.
Somehow Proctor and Gamble slipped into Rank 4 above PwC
The accountancy firms of Grant Thornton and RMS McGladrey make the top 40 at ranks 32 and 33 respectively.

Best Places to Intern --- http://www.businessweek.com/managing/content/dec2009/ca2009129_394659.htm?link_position=link1
I'm waiting for Francine to throw cold water on the "ever before" claim
Especially note the KPMG Experience Abroad module below
"Best Places to Intern:  Bloomberg BusinessWeek's 2009 list shows employers are hiring more interns to fill entry-level positions than ever before,"  by Lindsey Gerdes, Business Week, December 10, 2009 ---
http://www.businessweek.com/managing/content/dec2009/ca2009129_394659.htm?link_position=link1

How valuable is a summer internship in a recession? Consider Goldman Sachs, the leading choice for students interested in a career on Wall Street. This year, the investment bank hired 600 fewer entry-level employees. That's not surprising given the stunted economy and the government bailout of banks. What is noteworthy is nearly 90% of Goldman's new hires were former interns. The previous year, Goldman wasn't as concerned about hiring a high percentage of students it had already invested time and money to trainonly 58% of entry-level hires had spent a summer at the company.

The same is true for other employers. KPMG, a Big Four accounting firm that finds itself in tight competition with Deloitte, Ernst & Young, and PricewaterhouseCoopers, hired nearly 900 fewer entry-level employees this year. But 91% of those full-time hires were former interns, whereas only 71% of new hires in 2008 were interns.

Internships have long been seen as a primary recruiting tool at many top employers—a 10-week job tryout to see who would be the best fit for full-time employment. But with full-time hiring down, even the largest employers are trying to maximize the investment they've made in interns by hiring a larger percentage to fill entry-level position than ever before. "It's true for all years, but I think it's even more so in years like this," says Sandra Hurse, a senior executive at Goldman who handles campus recruiting.

Evaluating Employers

With this ranking, Bloomberg BusinessWeek has put together its third annual guide to the best internships, providing information on the number of interns each company recruits, how many are offered full-time jobs, the number of interns expected to be hired next year, even the salaries students receive.To compile our list, we judged employers based on survey data from 60 career services directors around the country and a separate survey completed by each employer.We also consider how each employer fared in the annual Best Places to Launch a Career, our ranking of top U.S. entry-level employers released in September of each year.

Our ranking of the best U.S.companies for undergraduate internships highlights employers who have put together an outstanding experience for students.Accounting firm Deloitte tops our list, followed by rivals KPMG (No.2) and Ernst & Young (No.3).The last of the Big Four accounting companies, PricewaterhouseCoopers, comes in at No.5, right behind consumer goods giant Procter & Gamble.

The employers on our list understand that an outstanding internship experience is their most effective recruiting tool to snap up the top entry-level job candidates. That's why some companies have invested a considerable amount of money in their programs. Microsoft, for example, estimates it spends on average $30,000 per intern, when you factor in pay and benefits. Considering the company hired 542 undergraduate interns in 2009, that's roughly a $16 million investment.

Experience Abroad

Two years ago KPMG realized it had to make a substantial investment in its internship program if it hoped to woo top students from larger consulting and accounting firms. So the company decided to offer interns an opportunity to gain valuable overseas experience. KPMG lets student interns spend four weeks in the U.S. and four weeks abroad. "It's extremely competitive [to recruit top students], and this is a differentiator," says Blane Ruschak, executive director of campus recruiting at KPMG.

A chance to work overseas is precisely what appealed to Andrew Fedele, 21, an accounting and economics double major at Pennsylvania State University. "I was sold pretty much when I first read about [KPMG's] global internship program." He spent four weeks in Chicago and four weeks in Johannesburg, South Africa. "South Africa has just such an interesting history. To go there and live with the locals and work with them was really exciting."

What did KPMG get in return? Exactly what it hoped: Fedele accepted a full-time job almost immediately after KPMG made its offer at the end of the summer.

Gerdes is a staff editor for BusinessWeek in New York.


"I'm About To Join A Generation Of Jobless PhDs," by Amanda Chung, Business Insider, January 19, 2014 ---
http://www.businessinsider.com/im-about-to-join-a-generation-of-jobless-phds-2014-1

Jensen Comment
If accurate, the abovehttp://www.aacsb.edu/bridge/ graph pretty much explains the supply versus demand of Ph.D.s
It also explains why the AACSB's Bridge Program to become a business professor has so many prospects ---
http://www.aacsb.edu/bridge/

Bob Jensen's threads on careers ---
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


The Part 2 Videos from the IMA are Now Available
7 Trends in Management Accounting - Introduction  ---
https://www.youtube.com/watch?v=gRyW2_Ay2Cw&hq_e=el&hq_m=1655061&hq_l=12&hq_v=bd6554f22c

The seven trends that the video series will explore include:

1) Expansion from product to channel and customer profitability analysis

2) Management accounting’s expanding role with enterprise performance management (EPM)

3) The shift to predictive accounting
 

7 Trends in Management Accounting - Part 2  ---
http://www.imanet.org/PDFs/Public/SF/2014_01/01_2014_cokins.pdf

4) Business analytics embedded in EPM methods

5) Coexisting and improved management accounting methods

6) Managing information technology and shared services as a business

7) The need for better skills and competency with behavioral cost management

"Saving Management Accounting in the Academy," by Sue Haka (former AAA President), AAA Commons, Last Edited February 10, 2012
http://commons.aaahq.org/posts/98949b972d

Discussion:
Saving Management Accounting in the Academy
Details:
The long run place of management accounting in the academy seems in peril for several reasons. First, there is an ongoing migration of accounting topics to other disciplines. Second, evidence suggests that the diversity in management accounting research seems to be dwindling. Third, the value of our content for MBA programs is not apparent. Finally, our engagement with the management accounting practitioner community is weak.

First-topic migration: I don't know about your experiences, but at my institution I must be ever vigilant about traditional management accounting topics migrating into management, marketing, or supply chain classes. While I am delighted that cost-volume-profit topics are important to my marketing colleagues, unfortunately the students that come to my management accounting class after having been "taught" CVP by my marketing colleagues cannot distinguish between fixed and variable costs! Other topics taught by my colleagues include ABC in supply chain and balanced scorecard in management. Making sure that students are required to take a management accounting class prior to classes where discussions about how ABC is important for supply chain decision making requires constant vigilance. Years ago management accounting virtually gave capital budgeting up to the finance department...is fair value measurement next!

Second-research diversity: I have often been among those who have suggested that general accounting research is not sufficiently diverse (i.e. an overabundance of financial archival focus). I forgot my mother's phrase--when you point at others, three fingers point back at you! Recent reviews of JMAR topical areas suggest a lack of diversity within our discipline. These reviews show an overwhelming focus on performance measurement--in 2008 (2007) 48% (50%) of submitted articles were focused on performance measurement. Only one other category is over 12%. It seems that management accounting research is fairly narrow.

Third-value in the MBA: Management accounting should be a bedrock of MBA programs. However, we have let financial accounting eclipse management accounting. MBA programs have, over the last decade, decreased accounting content and the majority of that reduction has come out of management accounting. Yet most MBAs become managers and management accounting should be highly value added for them.

Finally-practitioner engagement: While our colleagues in auditing and financial accounting have opportunities to serve as fellows at the SEC or FASB or take a semester or year to work at one of the big four firms, management accounting faculty have few established programs allowing us to experience first hand many of the issues that we teach and write about. I believe creating these types of opportunities would help us diversify our research and convince others of the value of management accounting for MBAs and in the practicing communities.

I'm sure you have other issues that imperil the discipline of management accounting. Please add your comments and discussion.

Note the relatively large number of comments to this article

Also see
Accounting at a Tipping Point (Slide Show)
Former AAA President Sue Haka
April 18, 2009
http://commons.aaahq.org/files/20bbec721b/Midwest_region_meeting_slides-04-17-09.pptm

"Frustrations of a Mover and Shaker for Managerial Accounting," by Gary Cokins, SmartPros, October 2012 ---
http://accounting.smartpros.com/x74303.xml

Many who just read "managerial accounting" in this blog's title are not bothering to read this. Why? They do not care. They only care about external financial reporting for regulatory agencies, bankers, and investors. This frustrates me because I interpret this as their not caring about managers and employees who need better internal managerial accounting information for insights and foresight to make better decisions compared to what they are currently provided by their CFO's function.



 

Should I laugh or cry?

Allow me to share with you some examples of what frustrates me related to this topic.

In a recent discussion thread in the website of the Institute of Management Accountants (IMA) there was a post that described how to calculate product and standard service-line costs. The writer meticulously listed the steps. In the final instruction they wrote to “allocate” the indirect and shared support expenses one should use broadly-averaged basis like the number of direct labor input hours, headcount, or square feet. I did not know whether I should laugh or cry! Where have they been the last few decades?

This primitive cost allocation method totally violates the costing principle of a cause-and-effect relationship between changes in the amount of workload and the products and services that consume those expenses. Activity-based costing (ABC) resolves this. ABC has been researched and promoted since the 1980s. (I was trained in 1988 by ABC’s lead promoter, Harvard Business School’s Professor Robert S. Kaplan. I subsequently wrote several books on ABC.) After implementing my first ABC system, the company was shocked by how different the product costs and profit margins were compared to their existing “cost peanut butter spreading” method. They were exact in total, but not with the parts. I then thought the practice of ABC would take off like a rocket. It hasn’t, but its acceptance continues with a slow but increasing pace. Too slow for me.

But wait. There is more!

This blog may now appear to be like a television Ginza knives commercial. There is more!

I am involved with five university faculty to author a report for the American Accounting Association on reforms for university accounting course curriculums to shift the emphasis of teaching topics from financial to managerial accounting methods. It is a noble effort. What concerns me is how sensitive my co-writers are to the resistance from accounting faculty that this shift would be different from what accounting professors already teach. We will never move finance and accounting professionals frombean counters to bean growers if we continue with traditional practices.

Another example of my frustration involves adversarial competition for managerial accounting practices. Often driven by self-serving consultants, they advocate managerial accounting methods that only serve their interest. The late Theory of Constraints (TOC) guru Eli Goldratt proclaimed, “Cost accounting is enemy number one of productivity.” He proposed the throughput accounting method, which with investigation only applies under very special conditions of a 24 / 7 / 365 existence of a physical bottleneck like a heat treat oven in a foundry. Some lean accounting advocates slam ABC as being misguided. Both of these methods, if exclusively used, deny strategic analysts understanding of the profit margins of products, services, channels, and customers.

Cutting through the Clutter

I participated on a task force that recently published a report for the IMA titledThe Conceptual Framework for Managerial Accounting.” It is an exposure draft that anyone interested in it can review and comment on. Our task force’s mission was to determine key accounting principles to reflect economic reality that any managerial accounting system should comply with.

Many organization’s existing practices would fail compliance with the report’s framework. With financial accounting, if the CFO gets the numbers wrong, they can go to jail! But when they get the managerial accounting information, they don’t go to jail. Nor should they. But at least CFOs should feel embarrassed and irresponsible that they are performing a disservice to their organization’s workforce who increasingly needs much better management accounting information from which to further apply business analytics.

Continued in article

Jensen Comment
Like it or not, the curriculum of accountancy in higher education is driven by entry-level employment opportunities. The heaviest part of the curriculum devoted to passage of the CPA examination is driven largely by the entry-level employment and training opportunities to new graduates by CPA firms, particularly the larger firms. The tax curriculum is driven by those same firms and by the IRS since the IRS has so many entry level opportunities for accounting graduates.

Management accounting and related disciplines such as internal auditing offer  tremendous opportunities five or more years down the road for experienced accountants but not many opportunities for getting such experience are offered at the time of graduation. Corporations and other organizations like the FBI put accounting graduates between a rock and a hard place. These organizations want experienced accountants but do not offer experience opportunities at the entry level. Instead they lure employees of CPA firms and the IRS away five or more years after the students have graduated.

Perhaps "lure" is the wrong word here, because many graduates go to work for CPA firms and the IRS with the full intent of moving on to managerial accounting in about five years or more. In other words managerial accounting is part of a long-term career plan after experience is gained as a CPA and/or IRS agent.

An exception arises sometimes for AIS specialists that are in demand by almost everybody, especially if they have have quite a lot of computer science courses and IT courses in their transcripts. But corporations are not giving entry-level job offers to AIS graduates for managerial accounting. They are seeking very technical employees for their computing, database management, and networking divisions.

Exceptions arise in the corporate hiring of minority graduates of accounting programs, especially managerial accounting graduates from historically black colleges in the USA.

Accounting majors who only took one or two AIS courses are not usually "AIS" graduates unless they took a lot more computer programming and IT. These accounting students with only one or two AIS courses are usually headed down an auditing track in CPA firms.

Bob Jensen's threads on accounting careers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers
Demand is very high at the moment for accounting graduates from masters programs. Students now need a fifth year to sit for the CPA examination, and most of those opt for a masters program.

If the corporations really want more managerial accounting in the higher education curriculum then they should compete with the CPA firms for the top entry-level graduates of masters programs. This would also entail offering more formalized training programs like those training programs in the largest CPA firms.


"The 33 Whitest Jobs In America," by Derek Thompson, The Atlantic, November 6, 2013 ---
http://www.theatlantic.com/business/archive/2013/11/the-workforce-is-even-more-divided-by-race-than-you-think/281175/

Academe does not appear in the 90%+ white chart. Perhaps this is because academic disciplines vary so much in terms of having minority professors --- especially in disciplines (like mathematics and accounting) having increasing proportions of Asian Americans but not African Americans and Latinos. Also academe is confounded by having "minorities" who are still on Green Cards and are otherwise non-native Americans. Although the proportion of white professors of accounting is declining due mostly to a growing number of Asian accounting professors, the proportion African American and Latino accounting professors is miserably low. The KPMG Foundation for decades has taken on a serious funding initiative to increase the number of African Americans in accountancy doctoral programs. But the number of graduates is still a drop in the proverbial bucket.

"Whatever Happened to All Those Plans to Hire More Minority Professors?" by Ben Gose, Chronicle of Higher Education, September 26, 2008
 http://chronicle.com/weekly/v55/i05/05b00101.htm?utm_source=at&utm_medium=en

Women and Minority Lawyers Practicing Law and Accountancy

"Diversity in the Legal Profession, 2013," by Paul Caron, TaxProf Blog, December 12, 2013 ---
http://taxprof.typepad.com/taxprof_blog/2013/12/diversity-in-.html

"The 33 Whitest Jobs In America," by Derek Thompson, The Atlantic, November 6, 2013 ---
http://www.theatlantic.com/business/archive/2013/11/the-workforce-is-even-more-divided-by-race-than-you-think/281175/

CPA firms hire more women than me at the entry level but retention percentages are lower in part due to mothers leaving the workforce.
CPA firms increased their hiring of minorities to over 30% at the entry level, but the retention level drops back down to the neighborhood of 20% ---
http://www.journalofaccountancy.com/Issues/2012/Jun/20114925.htm
Reasons for lower retention rates include failure of new hires to pass the CPA Examination after being hired. Another perhaps more important reason is the traditionally high turnover of more recent employees in the larger CPA firms where most of those employees move into higher paying jobs (often with clients) or move out of the labor force to become full-time parents. Top minority employees of CPA firms are especially likely to receive attractive job offers from clients.

Bob Jensen's threads on diversity in academe ---
http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#AffirmativeAction

 

Law schools have been especially aggressive in recruiting top African American and Latino students.
This competition especially hurts when recruiting minority students for masters programs in accountancy (most CPA Examination candidates now graduate from such masters programs). One reason for law school minority recruitment success is that students can major in virtually any discipline in college and later be admitted to law school if they have the required LSAT scores. Most masters of accounting programs require what is tantamount to an undergraduate accounting major. This greatly reduces the number of minorities eligible to take the CPA Examination. However, students can still be business accountants without having passed the CPA examination. It's much harder, however, to get entry-level experience without first working for either a CPA firm or the IRS.

Occupations with tough licensing examinations tend to have lower lower percentages of blacks and Latinos.

More than half of the black and Latino students who take the state teacher licensing exam in Massachusetts fail, at rates that are high enough that many minority college students are starting to avoid teacher training programs, The Boston Globe reported. The failure rates are 54 percent (black), 52 percent (Latino) and 23 percent (white).
Inside Higher Ed, August 20, 2007 --- http://www.insidehighered.com/news/2007/08/20/qt

Certification Examinations
http://faculty.trinity.edu/rjensen/Assess.htm#CertificationExams


"Law School Applicants From Top Colleges Plunge 36%," by Paul Caron, TaxProf Blog, March 6, 2014 ---
http://taxprof.typepad.com/taxprof_blog/2014/03/law-school-applicants.html

. . .

The reasons for the drastic decline in applications among elite students are twofold:

1) Not all of these applicants get into top 14 schools. The median GPA/LSAT of this cohort is probably about 3.6/165. And that’s a high estimate. So, if there are 2,100 of these applicants, probably 1,200 of them get into top 14 schools. Another 500 or so probably get into top 20(ish) schools, as measured by Biglaw employment outcomes. That totals 1,700.

Unless one has a full, or nearly full scholarship, there is absolutely no point in an Ivy League grad attending anything less than a top 20(ish) school given the current rate of tuition. And they would have to think long and hard about attending anything outside of the top 14, or even the top 10. Why would a graduate with a good degree, and likely some decent employment options, sully their resume with a grad degree from a lesser institution, reduce their likelihood of employment and accumulate massive debt all at one time?

2) Even Harvard, Stanford and Yale are crappy options now if you don’t have financial support. These institutions rarely give merit scholarships, yet carry huge pricetags, so most middle class kids will be on the hook for $200k+ in debt. These days, many will be in the $250k+ range. This will require working at least 6 years in Biglaw to pay down the debt. That is quite the sacrifice, and quite the risk, for many in this group who always figured they could do exactly what they dreamed of with their lives.

Note that the potential changes to the Public Interest Loan Forgiveness laws will be a huge deterrent for potential applicants for this group as well—especially among women. I suppose a handful of these schools have their own generous loan forgiveness programs, but not all of them, and certainly none outside of the top 10 or so law schools.

Jensen Comment
Surprisingly Professor Caron does not go on to also state that some of the job opportunities in law aren't so hot even from the top law schools. By default, however, this seems to be the implication if the return on investment with high debt does not have a great expectation. Presumably the students getting those need-based scholarships have higher expected returns, although the top-paying law firms are not yet noted for affirmative action hiring.

This of course begs the question of where those 36% of those graduates from prestigious universities are turning for careers other than law. There is such an overwhelming supply of unemployed PhDs in most disciplines that opportunities do not abound in the PhD market. Most graduates from top schools did not have a chance to choose accounting as undergraduates and thus cannot be admitted to masters programs in accounting until taking 30+ credits of prerequisite undergraduate accounting courses. Many are probably leaning toward MBA programs. Prestigious MBA programs are very expensive, but since they are only two-year programs they are cheaper than law schools.

Some of those undergraduates strong in mathematics and economics might consider a PhD program in accounting where the job market is still hot. They might have to learn a bit of accounting, but the accounting prerequisites for accountancy PhD programs are minimal compared to prerequisites need to become a CPA ---
http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms

The advantage of accountancy PhD programs is that most of them are free in terms of tuition, room, and board since those programs put together packages of fellowships and assistantships that are good for about five full-time years. A drawback is that such programs take 5-6 years in comparison with an economics PhD that may only take 3-4 years.

Another drawback of accountancy PhD programs is lack of capacity. The really big programs that graduated 10+ accounting PhDs per year are down to graduating two or less per year on average ---
http://www.jrhasselback.com/AtgDoct/XDocChrt.pdf
Whereas thousands of PhDs in economics or engineering graduate each year, accounting programs graduating 200+ per year in the 1980s are down to less than 140 per year in recent times.

Thus the numbers of undergraduates from even our most prestigious universities have very limited opportunities for getting into accounting doctoral programs.

Bob Jensen's threads on careers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


"Has Your Business Degree Failed You? Answer 5 Basic Questions to Find Out!," by Anthony H. Catanach, Grumpy Old Accountants, January 14, 2014 ---
http://grumpyoldaccountants.com/blog/2014/1/14/has-your-business-degree-failed-you-answer-5-basic-questions-to-find-out

If your goal in getting a college business degree was simply to get a “job” with the least effort expended, stop reading now!  But if you were serious about learning the fundamental skills needed to support a long-term professional career in business, including a life-long learning perspective, your passion and zeal just may not have been enough according to a number of recent articles in the popular business.

Some suggest that college in general should be questioned.  Glenn Harlan Reynolds, a University of Tennessee law professor, encourages parents and students to “be skeptical” about the value of college.  With average student debt exceeding $29,000 and 40 percent of college graduates taking jobs that don’t require a college degree, he suggests that:

America's higher education problem calls for both wiser choices by families and better value from schools.

It’s hard to disagree with this statement particularly when so many parents and students conduct more due diligence in a car purchase than selecting the “right” college or university. 

Reynolds also notes that the value proposition for a college degree is frequently obscured by the “bait and switch” tactics increasingly used by administrators, as well their lack of budget transparency.  Many schools now routinely “outsource” class instruction to low-paid adjuncts to cut costs (and let’s not even get into on-line “classroom” initiatives), and it is next to impossible to see where one’s tuition dollars actually are being spent (e.g., administration, athletics, research, or teaching).

And guess what? Surprise…surprise…many employers now are questioning the skills of today’s graduates. Richard Vedder and Christopher Denhart from Ohio University confirm that:

Declining academic standards and grade inflation add to employers' perceptions that college degrees say little about job readiness.

They argue that the numbers just don’t work when college degree benefits are questionable and college costs are increasing. And the narrowing gap between what college and high school graduates earn particularly concerns them.  As an old jarhead, I found one of their statements particularly telling:

We now have more college graduates working in retail than soldiers in the U.S. Army, and more janitors with bachelor's degrees than chemists.

But what about business degrees specifically?  Dan Kadlec, a journalist for TIME, believes that:

Colleges are minting money-focused graduates in a work world that increasingly values critical thinking and softer skills like the ability to communicate.

Melissa Korn of the Wall Street Journal reports that “undergraduate business majors are a dime a dozen” and “may be worth even less,” since more than 20 percent of undergraduates in the United States are business majors. And graduate business education doesn’t get a free pass either. John A. Byrne, a contributor to CNN Money, documents the case of Josh Kaufman who believes that MBA programs “teach many worthless, outdated, even outright damaging concepts and practices.” 

Still not convinced that there just might be a flame or two behind all this “smoke,” then just take a look at look at Lynn O’Shaughnessy’s number one reason why NOT to get a business degree: business majors don't learn much in business school!  Her conclusion was based on Academically Adrift, a bestselling book that finds that business majors are among the students who learn the least in college. 

All of this negativism makes this Grumpy Old Accountant seem absolutely cheery doesn’t it?  Well, I must confess that my recent interactions with experienced business graduates (both at the bachelor and master levels) employed as accountants, analysts, managers, and reporters have raised more than a few doubts in my own mind. So, I decided to create a short, five question test (no accounting included, I promise) that administrators, current students, faculty, and recent graduates may find useful for assessing the effectiveness of their B-school experience.  And it’s no coincidence that the five questions mirror the major themes routinely discussed today by business academics and professionals alike. Being naturally grumpy, this exam is a closed book, closed note, essay test that should be completed with no outside assistance…what did you expect?

Question One: What is a business?

Believe it or not, many B-school graduates cannot answer this query in a clear, concise manner.  Often, the response is a long-winded, rambling summary of discrete topics that parallel course requirements that fails to accurately capture the essence of today’s enterprises. To receive full credit, the answer should be close to the following:

 A business is an economic entity that creates wealth (e.g., value, cash flow, etc.) by using financial, human, and physical capital to deliver products or services that the market demands.

And if you really want to wow this old prof, throw in a bit of the nexus of contract theoryto motivate the need for information to monitor the various contracts which companies execute with shareholders, employees, suppliers, customers, debtors, and the like.

Question Two: What is business strategy?

So, once you decide on a business, what’s the strategy? The answers commonly received to this question are particular disturbing in that they refer to assorted permutations of action plans and related documents.  Sorry, just not specific or good enough. To receive full credit, the answer should address two key issues:

Business strategy is how an organization creates value for its customers and differentiates itself from competitors in the marketplace.

Value creation and differentiation must be addressed in every good strategy whether it be for a company as a whole, or each individual operating unit.  This short definition specifically focuses managers on their markets and customer needs.  If customers don’t value a company’s product or are indifferent to it vis-a-vis that of the competition, the company is unlikely to succeed in the long-run, regardless of its stated “strategy.”  If you add some verbage about Michael Porter’s Five Forces model in your differentiation discussion in the context of today’s technology dominated world, you will bring a smile to this Grumpy Old Accountant’s face.

Question Three: What is a business model?

This dot-com era buzzword can generate some very interesting definitions which provide great insight into what has been learned (or not) in the B-school.  Frequent responses include a business idea, an overly-complicated financial model, or a business plan.  These answers don’t even warrant partial credit!  So what is it?

 A business model describes how the pieces of a business fit together as a system to execute the firm’s stated strategy.

Every business model whether it be for the whole entity or each individual operating unit must address ALL of the following fundamental “value chain” activities: market analysis, product development and design, sales and marketing; procurement, production, and distribution, and after sale customer service.  How do each of these activities contribute to strategy execution?  Answer that and now you have a business model!  And some references to How to Design a Winning Business Modelby Ramon Casadesus-Masanell and Joan E. Ricart will likely get you some bonus points.

Question Four: How should a business evaluate its performance?

As an accounting professor, I find the answers I often receive to this question to be downright depressing: stock price appreciation, revenue growth, earnings per share, and a host of other financial statement driven metrics.  These might earn some partial credit, but if you even hint atadjusted EBITDA,” you get a zero.

Answering this question requires getting Question Three correct!  To evaluate performance you must have something concrete to measure.  In the case of a business, it’s how each of the five value chain activities that comprise a firm’s business model are performing.

A business should measure its performance by monitoring the implementation, execution, and effectiveness of its entire business model.

This means that managers need both financial and non-financial metrics to judge their market analysis, research and development, selling and marketing, production and distribution, and customer service activities.  Unfortunately, all too often, companies rely almost exclusively on financial statement numbers to do so.  The best answers to this question will be organized around Kaplan and Norton’s Balanced Scorecard framework.

Question Five: What role does innovation play in business today?

Historically, business innovation has been equated primarily with the development of new products and new technologies.  But as Birkinshaw, Bouquet, and Barsoux suggest, “products and services represent just the tip of the innovation iceberg.” So, a few points might be awarded for this weak “common sense” response.  But to receive full credit, respondents must have scored well on Questions 3 and 4. The following represents a more complete response:

Business innovation refers to any ideas and/or actions that can positively transform any part of the business model or its individual value chain activities, as well as the development of new products or service offerings.

Continued in article

 


"The Integration of Women and Minorities into the Auditing Profession since the Civil Rights Period," by Paul Madsen, The Accounting Review, November 2013, pp. 2145-2177 ---
http://aaajournals.org/doi/full/10.2308/accr-50540  (not free)

Following the Civil Rights Movement and the “quiet revolution” in women's work over the years from 1950 to 1970, women and minorities increasingly joined the auditing profession while the profession ramped up efforts to encourage integration. The purpose of this study is to rigorously examine how the integration of auditors has evolved since the civil rights and quiet revolution period. The primary distinctive feature of this study is that it evaluates the auditing profession's integration by comparing it to samples of occupations similar to auditing for the purpose of isolating auditing-specific forces influencing integration. I find that the pay structure in auditing is unusually equal, consistent with “equal pay for equal work.” The results for women, Hispanics, and miscellaneous minorities are consistent with members of these groups responding as one might expect to equal pay in auditing: groups that are poorly paid in other occupations select into auditing at higher rates, and groups that are well paid in other occupations select out of auditing at higher rates. The results for blacks are anomalous in that their pay in auditing has been good relative to many comparable occupations, but they have nevertheless been poorly represented in auditing. There are a number of theories that could potentially explain why blacks may be anomalously underrepresented in auditing. To begin to test them, I perform an exploratory analysis of the representation of women and minorities among college freshmen, college graduates, and young auditors. The results suggest that accounting is a popular degree among black college freshmen and that a relatively high percentage of accounting graduates are black. However, although they are well represented in the pool of potential new auditors, black accounting graduates enter the auditing profession at very low rates relative to other occupations requiring levels of education similar to auditing. The results suggest that black underrepresentation in auditing is not due to a lack of awareness among, or role models for, young blacks.

Jensen Comment
In recent years the CPA profession has hired more women than men, which is consistent with both admissions and graduation data for universities.

The study does not show what proportion of newly hired African American graduates are from "historically black colleges and universities," but my guess is that it's relatively high relative to total first-year hirings of African Accounting Graduates in total in accountancy. My guess is that a relatively high proportion of those hirings are in government (e.g., the IRS) and clients of CPA firms as opposed to CPA firms themselves.

I will now make a statement that is probably not politically correct and certainly is anecdotal. I have a acquaintance who is a retired dean of the business school of a well-known historically black university. She told me that her program played down a CPA examination preparation curriculum in favor of an industry and government accounting curriculum. One reason was fund raising, where large corporations showered her business school with scholarship funding and with multi-year internships for nearly all of the accounting students. Another reason was that her accounting program could attract more students if it offered career opportunities that did not require the highly stressful CPA examination.

"African American Students and the CPA Exam Mentoring, internships and scholarship programs can draw students into the profession," by Quinton Booker, Journal of Accountancy, May 2005 ---
http://www.journalofaccountancy.com/Issues/2005/May/AfricanAmericanStudentsAndTheCpaExam.htm

EXECUTIVE SUMMARY
DESPITE DECADES OF EFFORT by organizations such as the AICPA and NASBA to bring more minority candidates into the profession, the numbers are still small. Still, there were 5,731 African American candidates for the CPA exam in 2002—the largest for any year since 1997.

THE DATA SUGGEST A SEVERE SHORTAGE of African American males under age 25 holding graduate degrees.

SINCE MANY STUDENTS DECIDE TO major in accounting as early as high school, employers should begin to build relationships with high school juniors and seniors through summer job opportunities.

THE VAST MAJORITY OF CANDIDATES are concentrated in 10 states. Employers in other states need to be more creative in finding and hiring CPAs.

PROGRESS IS BEING MADE. Much of the success can likely be attributed to mentoring, internship and co-op programs, and scholarship programs at the undergraduate, master’s and doctoral levels.

QUINTON BOOKER, CPA, DBA, is professor and chairman of the department of accounting at Jackson State University, Mississippi. His e-mail address is qbooker@jsums.edu .

National Association of Black Accountants --- http://en.wikipedia.org/wiki/National_Association_of_Black_Accountants

Association of Latino Professionals in Finance and Accounting ---
http://en.wikipedia.org/wiki/Association_of_Latino_Professionals_in_Finance_and_Accounting

American Society of Women Accountants --- http://en.wikipedia.org/wiki/University_of_Cambridge#Women.27s_education

History of women accountants in the 1880. US Federal Census ---
http://repository.usfca.edu/cgi/viewcontent.cgi?article=1001&context=acct

Mary Jo McCann (First Woman CPA in Kansas) ---
http://www.kscpa.org/about/news/119-mary_jo_mccann_first_woman_cpa_in_kansas_passes

Bertha Aldrich (First Woman CPA in California) --- http://boards.ancestry.com/surnames.aldrich/600/mb.ashx

Accounting Reform (search for women) --- http://en.wikipedia.org/wiki/Accounting_reform

Accounting and Financial Women's Alliance --- http://www.afwa.org/

Accounting History Libraries at the University of Mississippi (Ole Miss) --- http://www.olemiss.edu/depts/accountancy/libraries.html
There are many items pertaining to accounting women in history, especially in the Accounting Historians Journal

 

Bob Jensen's threads on the history of women in the accounting profession are at
http://faculty.trinity.edu/rjensen/bookbob2.htm#Women

Bob Jensen's threads on careers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

 


Teaching Case on Careers and Education
From The Wall Street Journal Weekly Accounting Review on November 15, 2013

Why Focusing Too Narrowly in College Could Backfire
by: Peter Cappelli
Nov 11, 2013
Click here to view the full article on WSJ.com
 

TOPICS: Accounting

SUMMARY: The article begins with a focus on choosing colleges, such as private versus public and university versus liberal arts college but offers many tips as students are choosing their majors. Students can discuss the benefits of a focused, technical major such as accounting versus the liberal arts majors. The issues discussed in the article focus on variability of job opportunities upon students' graduation. Instructors using the article can emphasize the relative consistency of accounting job markets and the benefits of the skills learned in students' liberal arts related courses.

CLASSROOM APPLICATION: The article may be used in an introductory accounting class during a semester that students are choosing majors, or at any time to discuss the benefits of skills learned in liberal arts classes in addition to technical subjects studied for the accounting major. Several questions ask students to state what they know about their own college or university. Instructors can use this to assess students' knowledge and contribute to class discussion about steps to take to ensure students develop the best chances for employment after graduation.

QUESTIONS: 
1. (Introductory) What are the current concerns in the job market following students' graduation? How do those concerns form the basis for this article?

2. (Introductory) According to the article, what are some majors that have posed challenging job markets for students upon graduation?

3. (Advanced) What is the Sarbanes-Oxley Act? How did it "ramp up demand for accountants"?

4. (Advanced) What do you know about the job opportunities for accounting majors upon graduation? Think especially about the consistency of job opportunities for accounting majors over different economies. State in your answer how you can find out this information for accounting majors graduating from your college or university.

5. (Introductory) What portion of your coursework is devoted to liberal arts courses? Based on the discussion in the article, what is the importance of the skills you learn in these courses?

6. (Advanced) View the related graphic entitled "Employer Priorities." Are you surprised by or curious about any facet of this list? List one item and explain your answer.

7. (Advanced) What steps in your remaining academic career can you take to be sure that you meet employers' priorities when you graduate? Will you need help in taking those steps? State where you think you can find that assistance at your college or university.
 

Reviewed By: Judy Beckman, University of Rhode Island

"Why Focusing Too Narrowly in College Could Backfire," by Peter Cappelli, The Wall Street Journal, November 14, 2013 ---
http://online.wsj.com/news/articles/SB10001424127887324139404579016662718868576?mod=djem_jiewr_AC_domainid

A job after graduation. It's what all parents want for their kids.

So, what's the smartest way to invest tuition dollars to make that happen?

The question is more complicated, and more pressing, than ever. The economy is still shaky, and many graduating students are unable to find jobs that pay well, if they can find jobs at all.

The result is that parents guiding their children through the college-application process—and college itself—have to be something like venture capitalists. They have to think through the potential returns from different paths, and pick the one that has the best chance of paying off.

For many parents and students, the most-lucrative path seems obvious: be practical. The public and private sectors are urging kids to abandon the liberal arts, and study fields where the job market is hot right now.

Schools, in turn, are responding with new, specialized courses that promise to teach skills that students will need on the job. A degree in hospital financing? Casino management? Pharmaceutical marketing?

Little wonder that business majors outnumber liberal-arts majors in the U.S. by two-to-one, and the trend is for even more focused programs targeted to niches in the labor market.

It all makes sense. Except for one thing: It probably won't work. The trouble is that nobody can predict where the jobs will be—not the employers, not the schools, not the government officials who are making such loud calls for vocational training. The economy is simply too fickle to guess way ahead of time, and any number of other changes could roil things as well. Choosing the wrong path could make things worse, not better.

So, how should the venture-capitalist parents proceed? What should they weigh as they decide where to put their limited capital to get the biggest bang? Here are some things to consider. Does the Product Get Out the Door?

You can pick the perfect school in terms of courses and location and price and ambience. But none of it does a student any good if he or she doesn't end up with a degree. After all, college improves job prospects only if a student graduates. That is why it is crucial to scrutinize the graduation rates at various schools.

What's more, it is also important to look at how long it takes students to graduate. Only about 60% of Division 1 university students graduate in six years, for example.

Many parents and students don't realize that even top schools differ greatly in their ability to get students out the door to graduation on time. Consider the difference between an elite private university like Stanford University and an elite public university like the University of California, Berkeley. My colleague Robert Zemsky found that the private school has a much wider array of support services—counseling, tutoring and so forth—that vastly improve the odds that a student will actually graduate, and will do so in four years. An expensive, private school may end up being cheaper if a student doesn't have to be there as long.

Probably the most important statistics to scrutinize are job-placement rates for graduates, but they are often hard to get and easy to fudge. Are we measuring jobs at graduation, or within a year after? Do internships count as a "job"?

Statistics about starting salaries, to judge the quality of those jobs, can be even more elusive. In the absence of good data, visit the school's career center and see which employers are actually interviewing students and for what jobs.

Parents and students should push to require schools to post graduation rates, job-placement rates and other information on the outcomes for their graduates—especially considering how many students are now using government-backed loans to pay for their education. It is not in the public interest for students to use public funds for vocational degrees that don't have a good chance of paying off. Today's Jobs Aren't Necessarily Tomorrow's

The trend toward specialized, vocational degrees is understandable, with an increasing number of companies grumbling that graduates aren't coming out of school qualified to work.

But guessing about what will be hot tomorrow based on what's hot today is often a fool's errand.

The problem is that the job market can change rapidly for unforeseeable reasons. Today, we frequently hear that computers and information technology are and will be the hot fields, but both have gone from boom to bust over time. Students poured into IT programs in the late 1990s, responding to the Silicon Valley boom, only to graduate after 2001 into the tech bust.

Changes in regulations, meanwhile, can rapidly create and kill fields. For instance, the Sarbanes-Oxley Act amped up the demand for accountants. Emerging technologies can be just as disruptive—applicant-tracking software eliminates jobs in recruiting, while cellphones create programming jobs in mobile technology. Developments like these are almost impossible to anticipate.

It gets even more complicated than that. Let's say governments and colleges could tell what the demand would be for a particular occupation years out. The problem for someone making an investment in that occupation is that everyone else has the same information. That means students will rush to train in that field, the supply of potential workers goes up, and the jobs are no longer so attractive.

Consider an email that Texas A&M University sent to this year's class of incoming petroleum engineers, the hottest job in the U.S. in terms of starting wages.

The message reminded students that the job market for engineers has always been competitive and cyclical, and warned, "Recent data suggests that some concern about the sustainability of the entry-level job market during a time of explosive growth in the number of students studying petroleum engineering in U.S. universities may be prudent."

Unfortunately, that kind of caution isn't common. Schools want to get as many applicants as possible, and to get the best ones to attend. Showing parents and students all the caveats that go with the impressions they create about future jobs may conflict with those interests. The Danger of Specialization

Another important caveat that doesn't get discussed much: It may be worse to have the wrong career focus in college than having no career focus—because skills for one career often can't be used elsewhere.

Let's say a student spends four years learning to market pharmaceuticals. But what can he or she do with that degree if the drug companies aren't hiring? The skills don't transfer easily anyplace else.

That may even be true within a field. Anthony Carnevale, of Georgetown's Center on Education and the Workforce, calculates that the unemployment rate among recent IT graduates at the moment is actually twice that of theater majors. Despite the constant complaints from IT employers about skill shortages, only certain skills within IT are hot at the moment, such as those associated with mobile communications.

Focusing on a very specific field also means that you miss out on courses that might broaden your abilities. Courses that teach, say, hospitality management or sports medicine may crowd out a logic class that can help students learn to improve their reasoning or an English class that sharpens their writing. Both of those skills can help in any field, unlike the narrowly focused ones.

Beyond those concerns, a narrow educational focus forces students to pick a career at age 17, before they know much of anything about their interests and abilities. And if they choose incorrectly, it can be very difficult for them to start over once they're older.

Researchers Eric A. Hanushek, Ludger Woessmann and Lei Zhang find that more vocationally focused education in high school appears to limit adaptability to changing labor markets later in life. The same thing may be true in college.

All that said, practical degrees do have value. But they're not nearly as valuable as boosters say.

Yes, in some fields, like engineering, the only way in is with a specialized degree. Other things being equal, students with one of these degrees will have an easier time getting their first job in the field than students with liberal-arts degrees. After the first job, though, it is not clear how much advantage that practical degree has.

Certainly, some matter in part because they are prestigious—such as a Wharton M.B.A.—but for those that aren't prestigious, and where the degree isn't required or common, a degree may not matter at all.

Also consider that what companies really want hires to have is actual work experience. If they have a choice between hiring someone fresh out of a hospitality-degree program or someone who doesn't have that degree but who has run a restaurant, they will choose the latter. The Way Forward

So, what are the practical lessons for the venture-investor parent and their child?

Students that go the practical route should delay choosing majors and specialized courses as long as possible, so that there is likely to be a better match between course work and employer interests. Students can rely on real-time information from the career office to gauge demand. Because of the need to adjust, it also helps to be at a school where switching majors is easy. Small programs with limited resources mean that students may have to stay more than four years to get all the courses that are required for a new major.

Continued in article

Jensen Comment
Whereas students planning ahead for medical school, accounting careers engineering careers, etc. facing licensing examinations, it's not efficient to avoid the requisite specializations in undergraduate studies.

Law used to be a wonderful career because you could major in virtually anything and still go to law school. Now the opportunities for law graduates have shrunk more than raw wool in a boiling cauldron.

MBA programs prefer that students were not undergraduate business majors. However, opportunities for MBA graduates increase with certain undergraduate specializations such as computer science, engineering, and accounting (especially for wannabe tax lawyers).

Fortunately, it is possible to specialize in some programs like accountancy and still take humanities minors or dual majors. Increasingly, accounting majors become somewhat proficient in another language such as Mandarin.

Bob Jensen's threads on careers are at
http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

 


Gender Pay Gap
From 24/7 Wall Street newsletter on November 6, 2013

  • The gender wage gap has narrowed over the years. In 1979, women made an estimated 62% of what men earned. In 2012, the wage of a full-time female employee was roughly 81% of her male counterpart. While that is good news, in the past 10 years, the gap has remained more or less unchanged. The size of the remaining pay inequality depends a great deal on the job. In many of the largest occupations in the country, women earn close to what men do on a weekly basis. In others, however, the disparity remains closer to the 1979 levels. For example, the typical female insurance agent brought in just 62.5% of her male counterpart in 2012. These are the jobs with the widest pay gaps between men and women.

    Jensen Comment
    I don't want to get into hot-button reasons for the gender gap in pay other than to note that there's considerable evidence in some fields that the higher pay for men is sometimes due to the male willingness to work longer hours and/or endure more years of frequent overnight travel for days on end. Female doctors are more likely to apply for emergency room duty purportedly when there are eight-hour shifts as opposed to having to endure long days plus many nights and weekends of on-call duty endured by non-emergency room physicians. For example, private-practice physicians cannot always control what time of day their patients have babies or heart attacks or post-surgery complications.

  •  


    "Humanities Jobs Decline," by Colleen Flaherty, Inside Higher Ed, October 30, 2013 ---
    http://www.insidehighered.com/news/2013/10/30/mla-sees-decline-job-listings-english-and-languages

     

    Question
    What is the world like for some many Ph.D. graduates in medieval history?

    "From Welfare to the Tenure Track," by Stacey Patton, Chronicle of Higher Education, October 25, 2013 ---
    https://chroniclevitae.com/news/97-from-welfare-to-the-tenure-track?cid=wb&utm_source=wb&utm_medium=en

    Bob Jensen's threads on the job prospect differences between new accounting doctoral graduates and history doctoral graduates ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#HistoryVsAccountancy


    The 10 Purported 10 Best Jobs for a College Graduate ---
    http://www.businessinsider.com/10-best-careers-recent-college-graduates-2013-10?op=1

    Jensen Comment
    Accountant/Auditor is Number 4 on the list even though it requires 150 approved credits (usually 2-4 extra semesters in an accounting masters program) to get permission to take the CPA examination. The list is a bit misleading in that it does not base the rankings on how hard it is to successfully break into the jobs on the list.

    For example, elementary school teachers have relatively easy times finding entry-level jobs relative to management consultants who almost never land entry-level jobs before they gain years of experience in business and earn one of more specialty certifications. The majority of graduates from prestigious MBA programs do not necessarily become management consultants without experience, some of who were experienced in business or engineering before they entered the MBA programs.

    There's also a difference between landing a job and landing a job in a top firm. For example, the top accounting firms generally offer entry-level jobs to only the top graduates of a masters program although the proportion of the class hired varies considerably with the prestige of the program and the black book maintained by accounting firms on schools where they recruit. In recent years more women than men are hired by the top accounting firms. Business firms and small CPA firms tend not to hire new accounting graduates and wait for moments when prospects have more accounting experience such as experience as auditors and tax accountants in respected accounting firms.

    The IRS offers great opportunities to new accounting graduates whereas the FBI hires a lot of accounting graduates only after they are experienced in business or government.


    "Is Law School Worth It?" by Adam Freedman, Legal Aid, February 22, 2013 ---
    http://legallad.quickanddirtytips.com/is-law-school-worth-it.aspx

    The Smart Grid For Institutions of Higher Education And The Students They Serve (career in science inspirations and preparation) ---
    http://php.aaas.org/programs/centers/capacity/documents/SmartGrid.pdf


    "Record-Setting Demand Projected for Accounting Graduates: AICPA Report Accounting Graduates and Enrollments at Historic Levels, Continuing Upward Trend, AICPA, June 18, 2013 --- Click Here
    http://www.aicpa.org/Press/PressReleases/2013/Pages/Record-Setting-Demand-for-Accounting-Graduates-AICPA.aspx

    Jensen Comment
    This increases demand for the relatively-miniscule number of accounting doctoral graduates in 2013 ---
    http://www.jrhasselback.com/AtgDoctInfo.html

    Think Texas and Avoid New Hampshire
    From the CPA Newsletter on August 27, 2013
    Top 10 cities to find a finance, accounting job  ---
    http://www.accountingweb.com/article/accounting-principals-names-top-ten-cities-finance-jobs/222300


    Psst! Want a new job as a Chief Financial Officer (CFO)?

    Then try EBay!

    From the CFO Journal's Morning Ledger on October 22, 2013

    Aspiring tech-sector CFOs should check out the job listings at eBay. At least 20 executives who have become finance chiefs in Silicon Valley and beyond over the past three years have learned the ropes in the big e-commerce company’s finance department, CFOJ’s Emily Chasan reports in this must-read story on B1 today. “We recruit people who aspire to be CFOs,” says Robert Swan, eBay’s finance chief since 2006. “If along the way there are opportunities outside, that’s OK .… We have a deep bench.”

    Members of the eBay Mafia—the tongue-in-cheek name for company veterans who now are corporate-level CFOs—include Rob Krolik at Yelp, Douglas Jeffries at RetailMe Not and Sean Aggarwal at Trulia, who have all taken their companies public in the past two years. Startups with former eBayers at the financial controls include the online clothing retailer ModCloth, digital-video company Roku and online ticketing company Eventbrite.

    One reason that EBay has churned out so many CFOs is that it has the resources to invest in grooming up-and-coming financial talent and the breadth to offer the best prospects hands-on experience running their own operations. The company says it has about 1,000 financial executives around the world and more than a dozen divisional and regional CFOs. Rookies get both theoretical and practical training in finance, analytics and leadership. And, as part of a two-year program, eBay rotates star performers to a different division every six months to expand their professional networks across the company, Chasan writes.


    $53,300: The Average Starting Salary for New Accounting Grads (in 2013) ---
    http://www.naceweb.com/salary-survey-data/?referal=research&menuID=71&nodetype=4

    Jensen Comment
    I think such starting salary surveys are highly misleading unless they also show cost of living adjustments. A starting salary of $53,300 will go a lot further in San Antonio than in San Francisco, NYC, Los Angeles, and Honolulu where people earning $53,300 should probably get food stamps and subsidized housing.

    I would go to work for $20,000 if the starting job had world class training and exposures to clients thirsting to hire away CPAs from top accounting firms.

    It's all about windows of opportunity that trump starting salaries in nearly every instance.

    I would not opt for an MBA program were graduates have average starting salaries of $143,800 (and a high standard deviation and kurtosis) relative to a Masters of Accounting Program where average starting salaries are $53,300 with a small standard deviation and negligible kurtosis. By kurtosis I mean that a few superstar graduates (such as those with whiz-kid computer science undergraduate degrees from elite universities) with starting salaries over $250,000 are skewing the average.

    There are also misleading "expected" compensations contingent upon such things as sales. For example, a marketing or finance job may look great when told that last year's hires earned an average of $143,800 with commissions and bonuses thrown in. But what about those that came in below average because they just had a harder time selling products and services?

    Please warn students that the most important thing about a new job is not the anticipated salary. It's the anticipated opportunity with a few other factors thrown in such as tension, long hours, geographic location, and constant travel. For example, a CPA firm may pay double for going to Moscow, but do you really want to start your career in Moscow where it's really dangerous on the streets and housing is rather Spartan?


    How to Mislead With Statistics

    The Fastest Growing Jobs in the USA --- Click Here
    http://247wallst.com/special-report/2013/08/27/the-10-fastest-growing-jobs-in-america/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=AUG272013A&utm_campaign=DailyNewsletter

    Jensen Comment
    Students should not flock to some of those careers just because the made to Top 10 in growth rates. One has to simply look at the total employed in a given career. For example, there are only 25,000 people employed as "Music Directors and Composers" and the variance in income is quite high. This is not really a very viable career choice in terms of opportunity except for students with exceptional talent.. Similarly, there are only 32,000 employed as "Skin Care Specialists"  with median annual pay of $28,640. I don't think I would recommend this as  career.

    On the other hand there are nearly a million Personal Care Aides. Now we're talking about opportunity for a job but the median annual salary is only $19,910 plus food stamps. And I think the work is often vary difficult and frustrating when dealing with people who need a lot of help and don't really much appreciate their helpers.

    Some of the fastest growing jobs are also dead end jobs with nowhere to advance without starting over.


    "Teen employment hits record lows, suggesting lost generation," by Kevin G. Hall, McClatchy Report, August 29, 2013 ---
    http://www.mcclatchydc.com/2013/08/29/200769/teen-employment-hits-record-lows.html#.UiMgBz9qDfW 

    For the fourth consecutive summer, teen employment has stayed anchored around record lows, prompting experts to fear that a generation of youth is likely to be economically stunted with lower earnings and opportunities in years ahead.

    The trend is all the more striking given that the overall unemployment rate has steadily dropped, to 7.4 percent in August. And employers in recent months have been collectively adding almost 200,000 new jobs a month. It led to hopes that this would be the summer when teen employment improved.

    In 1999, slightly more than 52 percent of teens 16 to 19 worked a summer job. By this year, that number had plunged to about 32.25 percent over June and July. It means that slightly more than three in 10 teens actually worked a summer job, out of a universe of roughly 16.8 million U.S. teens.

    “We have never had anything this low in our lives. This is a Great Depression for teens, and no time in history have we encountered anything like that,” said Andrew Sum, director of the Center for Labor Market Studies at Northeastern University in Boston. “That’s why it’s such an important story.”

    Summer is traditionally the peak period of employment for teens as they are off from school and get their first brush with employment and the responsibilities that come with it. Falling teen employment, however, is just as striking in the 12-month numbers over the past decade.

    The picture these teen employment statistics provide looks even worse when viewed through the complex prism of race. Sum and colleagues did just that, comparing June and July 2000 and the same two months of 2013. In 2000, 61.28 percent of white teens 16 to 19 held a job, a number that fell to 39.25 percent this summer. For African-Americans, a number that was dismal in 2000, 33.91 percent of 16 to 19 year olds holding a job, fell to a staggering low of 19.25 percent this June and July.

    It wasn’t terribly better for Hispanics, who saw the percentage of employed teens fall from 40.31 percent in the two-month period of 2000 to 26.7 percent in June and July 2013.

    One of the more surprising findings of Sum’s research is that teens whose parents were wealthy were more likely to have a job than those whose parents had less income. Some 46 percent of white male teens whose parents earned between $100,000 and $149,000 held a job this summer, compared with just 9.1 percent of black male teens whose family income was below $20,000 and 15.2 percent for Hispanic teen males with that same low family income.

    That finding is important because a plethora of research shows that teens who work do better in a wide range of social and economic indicators. The plunging teen employment rate is likely to mean trouble for this generation of young workers of all races.

    “Kids that get work experience when they are 17 or 18 end up graduating from college at a higher rate,” said Michael Gritton, executive director of the Workforce Investment Board, which promotes job creation and teen employment in Louisville, Ky., and six surrounding counties. “There are economic returns to those young people because they get a chance to work. Almost every person you ask remembers their first job because they started to learn things from the world of work that they can’t learn in the classroom.”

    The teen employment numbers are calculated from the Current Population Survey, carried out by the Census Bureau for the Labor Department’s Bureau of Labor Statistics. This survey of households is used in determining estimates for the size of the civilian workforce, the number of employed nationally and the unemployment rate.

    Unemployment data is calculated in a different fashion, and while it tells a similar story of hardship for teens, it is not considered by researchers to be as accurate as the employment data because it underestimates the severity of the slow economy.

    The weak employment numbers sometimes prompt a mistaken narrative that younger workers are just staying in college longer rather than entering the workforce, or are going on to graduate school given the impaired jobs market.

    “I think there is this myth out there that there is some silver lining for young people, that they are going on to college. . . . You don’t see an increase in enrollment rates over and above the long-term trend. You can’t see a Great Recession blip,” said Heidi Scheirholz, a labor economist at the liberal Economic Policy Institute, a research group. “They are not in school. There’s been a huge spike in the not-in-school, not employed. It’s just a huge missed opportunity.”

    Even before the economic crisis exploded in the summer of 2008, workers ages 16 to 19 made up a declining share of the overall workforce, in part because of a decades-long climb in college enrollment, and in part because universities now place less importance on work and more on life experiences and community service.

    But most of this decline in youth in the workforce is thought to be the result of the severe economic crisis and its aftermath, with older workers taking the jobs of teens.

    Continued in article

    Jensen Comment
    Teens can do volunteer work for free in the non-profit sector, but this does not provide money for school, cars, pregnancies, and moving out of parents' homes ---
    http://www.4-h.org/about/revolution/stories-of-responsibility/citizenship/?cr=redcpcggrofrHScommunityservicegetfirsthand&gclid=CPfXn46JqrkCFcOe4Aod9QMADw

    Volunteer work for for charity seldom is the best place for job training since charities are often seeking "gofer" helpers rather than using their resources for education and training purposes only. Actual jobs and internships in the private sector are often better for job training. However, teens cannot volunteer below minimum wage for work with companies that might provide higher job skills. They might, however, be able to get unpaid internships in the nonprofit sector ---
    http://www.dol.gov/whd/regs/compliance/whdfs71.pdf

    Fact Sheet #71: Internship Program s Under The Fair Labor Standards Act
    This fact sheet provides general information to help determine whether interns must be paid the minimum wage and overtime under the Fair Labor Standard s Act for the services that they provide to “for-profit” private sector employers. Background The Fair Labor Standards Act (FLSA) defines the term “employ” very broadly as including to “suffer or permit to work.” Covered and non-exempt individuals who are “suffered or permitted” to work must be compensated under the law for the services they perform for an employer. Internships in the “for-profit” private sector will most often be viewed as employment, unless the test described below relating to trainees is met. Interns in the “for-profit” private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek.

    The Test For Unpaid Interns
    There are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do so without compensation. The Supreme Court has held that the term "suffer or permit to work" cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns w ho receive training for their own educational benefit if the training meets certain criteria. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program. The following six criteria must be applied when making this determination:

    1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;

    2. The internship experience is for the benefit of the intern;

    3. The intern does not displace regular employees, but works under close supervision of existing staff;

    4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;

    5. The intern is not necessarily entitled to a job at the conclusion of the internship; and

    6. The employer and the intern understand that the intern is not entitled to wages fo r the time spent in the internship. If all of the factors listed above are met, an employment relationship does not exist under the FLSA, and the Act’s minimum wage and overtime provisions do not apply to the intern. This exclusion from the definition of employment is necessarily quite narrow because the FLSA’s definition of “employ” is very broad. Some of the most commonly discussed factors for “for-profit” private sector internship programs are considered below.

    Continued in article

    Jensen Comment
    In the budget squeeze since the 2008 recession, organizations are likely to offer less and less of internship training that meet the above Labor Department tests for non-compensated internships. The reason is that the above internships will drain resources for the benefit of interns without any cost savings in labor.

    Thus in the USA teens face fewer and fewer jobs and internships. In Germany, however, employers are given more incentives to hire teens in apprenticeships.

    "The Secret To Germany's Low Youth Unemployment," by Eric Westervelt, NPR, April 4, 2013 ---
    http://www.npr.org/2012/04/04/149927290/the-secret-to-germanys-low-youth-unemployment

    For as long as he can remember, German teenager Robin Dittmar has been obsessed with airplanes. As a little boy, the sound of a plane overhead would send him into the backyard to peer into the sky. Toys had to have wings. Even today, Dittmar sees his car as a kind of ersatz Boeing.

    "I've got the number 747 as the number plate of my car. I'm really in love with this airplane," the 18-year-old says.

    Less-than-perfect school grades dashed Dittmar's dream of becoming a commercial pilot. But they were good enough to earn him a coveted apprenticeship slot with Lufthansa Technik, the technical arm of Europe's largest airline, responsible for aircraft maintenance and repair across the globe.

    One-third of the way through his three-and-a-half years of training at Lufthansa technical headquarters in Hamburg, Dittmar is honing the skills required to become an aircraft mechanic — and all-but-guaranteeing himself a job.

    The protracted European debt crisis and austerity measures have made career prospects for many of the continent's youth bleaker than ever. In and , nearly half of all those under age 25 are unemployed.

    But as Dittmar's experience illustrates, that's not the case in Germany. In stark contrast, Germany's youth employment is the highest in Europe, with only a 7.8 percent jobless rate. At the heart of that success is a learn-on-the-job apprenticeship system that has its roots in the Middle Ages but is thriving today in Germany's modern, export-oriented economy.

    On-The-Job Training

    A brightly lit Lufthansa workshop in Hamburg is part of that apprenticeship system. Teenagers like Dittmar, many dressed in the company's navy blue shirts and overalls, are busy learning the basics: drilling, filing, soldering and manipulating sheet metal.

    Dittmar's apprenticeship is part of Germany's well-established and successful "dual system," so-called because training is done both in-house at a company and partly at local vocational colleges.

    About two-thirds of his time is spent on the job at Lufthansa — split between workshops and classrooms, and actually working on real aircraft and engines supervised by an experienced full-time mechanic, a "training buddy."

    "[The training buddies] are taking the apprentice with them in their work. They are integrating them in their work and they are making real training on the job," says Hans-Peter Meinhold, Lufthansa's head of vocational training. "So it's a one-to-one situation."

    For an aviation buff like Dittmar, getting to work on real machines so soon is not only a sign that his employers see potential in him, but also fuels his passion for planes.

    "I could work anyplace in the world. I like the system here," the teenager says. "I know that I will be a good aircraft mechanic when I'm out of the apprenticeship, so that's very cool to know."

    About 60 percent of German high school graduates travel the same path as Dittmar, choosing vocational over academic education. Throughout his training, Lufthansa pays Dittmar the equivalent of $1,000 a month, one-third of the starting wage a qualified mechanic would get. That's part of the system that some foreign visitors can't comprehend, director Meinhold says.

    "I tell them [the apprentices] don't pay anything for it, they get paid by the companies. They get money for their training," Meinhold says. "'You are training them and you are paying them for that?' They can't understand this."

    Once qualified, these skilled aeronautical and engine mechanics feed into a fairly robust European aviation industry, either directly at Lufthansa or at one of its subsidiaries or competitors.

    For many, the potential of being hired permanently is the key attraction. Germany's industry still offers a majority of skilled workers the elusive "job for life," a long-gone legend in many other Western countries.

    Meinhold believes that despite the costs, the apprentice system is an investment vital to the ongoing success of Germany's export-dependent economy by creating loyal, well-trained employees.

    "It's a quite expensive way we go," he says. "The benefit we get from the system later, that's a great benefit and makes everything economical."

    A Model For The Rest Of Europe?

    Germany's dual system trains 1.5 million people annually. Across the board, from bakers and car mechanics to carpenters and violin-makers, about 90 percent of apprentices successfully complete their training, German government figures show. The apprenticeships vary in length, between two and three-and-a-half years. The average training "allowance" is 680 euros a month (approximately $900), and about half of the apprentices stay on in the company that trained them.

    British Prime Minister David Cameron recently called for his country to emulate parts of the German system by reinvigorating British apprenticeships with higher-level training.

    Continued in article

    "How to Stop the Drop in American Education:  Your math teacher was right: Algebra matters. Common Core standards are vital too," by Rex Tillerson (Exxon Mobil CEO), The Wall Street Journal, September 5, 2013 ---
    http://online.wsj.com/article/SB10001424127887324747104579024892381188288.html?mod=djemEditorialPage_h

    With headlines announcing unemployment rates above 8% in some parts of the country, many people I talk to are surprised to learn that jobs by the hundreds of thousands remain vacant.

    The reason for that is clear: American employers do not have enough applicants with adequate skills, especially in science, technology, engineering and math. The "STEM-related" positions that U.S. industry needs to fill are not just for biochemists, biophysicists and engineers. More and more jobs are applying cutting-edge technologies and now demand deeper knowledge of math and science in positions that most people don't think of as STEM-related, including machinists, electricians, auto techs, medical technicians, plumbers and pipefitters.

    In fact, after more than 30 years working in the energy industry, and now as I work with business leaders from every sector of the American economy, I can attest that your high-school math teacher was right: Algebra matters.

    These days the energy industry tests for math and science aptitude when hiring for entry-level positions. Our industry is seeking to fill positions that range from mechanics and lab support to blend and process technicians. But many applicants fail these basic tests, losing out on opportunities for good pay and good benefits.

    The U.S. military is also being forced to turn away applicants because of a lack of preparation in math, science and other subjects. Each year, approximately 30% of high-school graduates who take the Armed Forces entrance exam fail the test.

    Even more concerning, many of these educational shortfalls are apparent before students reach high school. According to the 2011 National Assessment of Educational Process, only 35% of eighth graders performed at grade level or above in math.

    As a nation, we must unite in recognizing the mounting evidence that the U.S. is falling behind international competitors in producing students ready for 21st-century jobs. According to the most recent Program for International Assessment, U.S. students rank 14th in the world in reading, 17th in science and 25th in math—and the trend line is moving in the wrong direction.

    We have an opportunity to reverse this trend but it will take setting the right priorities. That starts with establishing high standards. It means leaders from government and business, and parents, need to defend the Common Core State Standards, which have been adopted wholly or in part by dozens of states in recent years but are increasingly under attack from across the political spectrum.

    These voluntary, state-driven standards are a set of expectations for the knowledge and skills that students from kindergarten to 12th grade need to master for college and career readiness. Some oppose the standards, complaining that they undermine the autonomy of teachers; others decry the standards as a takeover of local schools by big government.

    The criticism is misguided. The Common Core State Standards are based on the best international research. They are built on the standards used by the most effective education systems around the world, including Singapore, Finland, Canada and the U.K. The standards are also designed to allow each state to make its own decisions regarding the curriculum, technology and lesson plans to be used in local schools.

    In other words, the standards stipulate what we want all students to know and be able to do, but each state retains the explicit authority to determine how it teaches its students. The standards are a tool to help educators, not a straitjacket for them.

    A major benefit of the Common Core State Standards is that they encourage students to analyze and apply critical reasoning skills to the texts they are reading and the math problems they are solving. These are the capabilities that students need as they prepare for high-skill jobs.

    We need to raise expectations at every grade level so that, for instance, students who do well in math in lower grades are spurred to take algebra and more advanced math. But we need high standards to drive efforts to improve educational outcomes in every subject.

    With these education standards under attack in many states where they have been adopted or are being considered, the Common Core needs support now more than ever if America is going to reverse its education decline and prepare its young people to compete in today's dynamic global economy. To abandon the standards is to endanger America's ability to create the technologies that change the world for the better.

    The Common Core State Standards are the path to renewed competitiveness, and they deserve to be at the center of every state's effort to improve the education—and future—of every American child.

    Mr. Tillerson is the chairman and CEO of Exxon Mobil Corp. and the chairman of the Business Roundtable's Education & Workforce Committee.

     


    $53,300: The Average Starting Salary for New Accounting Grads ---
    http://www.naceweb.com/salary-survey-data/?referal=research&menuID=71&nodetype=4

    Jensen Comment
    I think such starting salary surveys are highly misleading unless they also show cost of living adjustments. A starting salary of $53,300 will go a lot further in San Antonio than in San Francisco, NYC, Los Angeles, and Honolulu where people earning $53,300 should probably get food stamps and subsidized housing.

    I would go to work for $20,000 if the starting job had world class training and exposures to clients thirsting to hire away CPAs from top accounting firms.

    It's all about windows of opportunity that trump starting salaries in nearly every instance.

    I would not opt for an MBA program were graduates have average starting salaries of $143,800 (and a high standard deviation and kurtosis) relative to a Masters of Accounting Program where average starting salaries are $53,300 with a small standard deviation and negligible kurtosis. By kurtosis I mean that a few superstar graduates (such as those with whiz-kid computer science undergraduate degrees from elite universities) with starting salaries over $250,000 are skewing the average.

    There are also misleading "expected" compensations contingent upon such things as sales. For example, a marketing or finance job may look great when told that last year's hires earned an average of $143,800 with commissions and bonuses thrown in. But what about those that came in below average because they just had a harder time selling products and services?

    Please warn students that the most important thing about a new job is not the anticipated salary. It's the anticipated opportunity with a few other factors thrown in such as tension, long hours, geographic location, and constant travel. For example, a CPA firm may pay double for going to Moscow, but do you really want to start your career in Moscow where it's really dangerous on the streets and housing is rather Spartan?

    The downloadable Robert Half salary guide ---. http://www.roberthalf.com/SalaryGuide 


    SAT College Admissions Test --- http://en.wikipedia.org/wiki/SAT

    ACT College Admissions Test --- http://en.wikipedia.org/wiki/ACT_%28test%29

    Only 43% of SAT test takers are prepared to start college ---
    http://research.collegeboard.org/programs/sat/data/cb-seniors-2013

    Khan Academy Test Prep Helpers for SAT. ACT, GMAT, MCAT, etc. ---
    https://www.khanacademy.org/library
    Scroll Down to Test Prep

    Jensen Comment
    And those who are the least prepared resist taking the SAT test. They intead opt for the ACT test having easier questions.

    "Why Do Would-Be Business Majors Bomb on the SAT?" by Louis Lavell, Bloomvberg Businessweek, September 27, 2013 ---
    http://www.businessweek.com/articles/2013-09-27/why-do-would-be-business-majors-bomb-on-the-sat

    According to the latest College Board report (PDF) on SAT scores, college-bound seniors who intend to major in business had some of the lowest scores around.

    Among a dozen prospective majors accounting for the most test-takers, only three scored lower on writing and critical reasoning: health professions, education, and security and protective services. Would-be business majors fared well on math, but even there they got creamed by biology, engineering, and computer science. Ten years ago, the picture wasn’t all that different.

    There are any number of reasons why college applicants with less-than-great SAT scores would gravitate toward business—including assumptions that business programs are less selective than other majors, easier than other programs, or more likely to result in gainful employment.

    But it may be far simpler than that.
    Steve Schneider, a school counselor for 17 years who works at Sheboygan South High School in Sheboygan, Wis., says he believes the problem may be that many would-be business majors don’t know why they’re going to college and probably don’t belong there. They choose business mainly to satisfy parents and others who are pressuring them about their college plans.

    “I think ‘business’ is a default answer,” Schneider says. “It’s the answer of least resistance.”

    Many students who end up in business programs in four-year colleges, where about 40 percent of all students ultimately drop out, are probably better-suited to community colleges, career programs at technical schools, and certification programs, Schneider says. The low SAT scores, he says, are the result of too many kids starting down the wrong path. “Is it an indicator that kids aren’t as smart as they should be?” he asks. “I think it’s an indicator that there are more kids taking that test than need to be.”

    Ruth Lohmeyer, a counselor at Lincoln Northeast High School in Lincoln, Neb., for the past 11 years, agrees. While most of the students at Northeast take the ACT, not the SAT, she says many of them graduate intending to major in business, which they view as “a good major to have if you don’t know what you want to do.”

    “Students that I’ve worked with perceive it as a degree they can complete,” says Lohmeyer, who counsels many students in poverty who will be the first in their families to attend college. “It’s a degree that is [seen as] generic—they can have a business degree and use it in many different career fields.”

    If that’s the case, it might help explain some of the shortcomings of business programs themselves.

    According to the National Survey of Student Engagement, 42 percent of senior business majors spend fewer than 11 hours a week studying, a greater percentage than in any other major.

     

    Jensen Comment
    Except for accounting and finance concentrations, undergraduate business graduates from college do ;poorly in terms of unemployment and expected salary levels ---
    "From College Major to Career" --- http://graphicsweb.wsj.com/documents/NILF1111/#term= 
    Poor career placement immediately after graduation mostly likely due in part to having worse average SAT scores about business students. Of course there is much variation between universities and geography and tracking into graduate schools. I suspect that students with low SAT scores also tend to eventually have low LSAT, GMAT, and GRE scores later on when applying for graduate studies.  Business management has the highest "Popularity" in terms of numbers of undergraduate majors. The table below ignores the length of time it takes a graduate to finally get career job other than part-time non-career McJobs. Timing varies a great deal by major and graduate studies.

    Averages are hurt by lower gpa graduates relative top graduates' unemployment and earnings.
    Major Field (2010 Census Data)
    Unemployment Percent
    25th % Earnings
    Median % Earnings
    75th % Earnings
    Popularity
    ACCOUNTING
    5.4%
    $41,000
    $61,000
    $94,000
    3
    ACTUARIAL SCIENCE
    0.0%
    $52,000
    $81,000
    $116,000
    150
    ADVERTISING AND PUBLIC RELATIONS
    6.1%
    $36,000
    $50,000
    $74,000
    41
    AEROSPACE ENGINEERING
    3.6%
    $60,000
    $84,000
    $111,000
    105
    AGRICULTURAL ECONOMICS
    1.3%
    $30,000
    $57,000
    $99,000
    122
    AGRICULTURE PRODUCTION AND MANAGEMENT
    3.0%
    $32,000
    $48,000
    $71,000
    75
    ANIMAL SCIENCES
    5.7%
    $26,000
    $40,000
    $60,000
    67
    ANTHROPOLOGY AND ARCHEOLOGY
    6.9%
    $30,000
    $40,000
    $60,000
    55
    APPLIED MATHEMATICS
    4.1%
    $52,000
    $71,000
    $100,000
    131
    ARCHITECTURAL ENGINEERING
    5.8%
    $50,000
    $71,000
    $96,000
    140
    ARCHITECTURE
    10.6%
    $37,000
    $60,000
    $85,000
    33
    AREA ETHNIC AND CIVILIZATION STUDIES
    5.7%
    $34,000
    $48,000
    $76,000
    66
    ART AND MUSIC EDUCATION
    4.2%
    $32,000
    $41,000
    $51,000
    48
    ART HISTORY AND CRITICISM
    6.9%
    $33,000
    $45,000
    $71,000
    81
    ASTRONOMY AND ASTROPHYSICS
    0.0%
    $56,000
    $62,000
    $101,000
    170
    ATMOSPHERIC SCIENCES AND METEOROLOGY
    1.6%
    $40,000
    $68,000
    $101,000
    146
    BIOCHEMICAL SCIENCES
    7.1%
    $30,000
    $48,000
    $80,000
    87
    BIOLOGICAL ENGINEERING
    6.8%
    $39,000
    $60,000
    $94,000
    126
    BIOLOGY
    5.6%
    $35,000
    $51,000
    $76,000
    14
    BIOMEDICAL ENGINEERING
    5.9%
    $45,000
    $68,000
    $101,000
    137
    BOTANY
    6.9%
    $26,000
    $40,000
    $55,000
    147
    BUSINESS ECONOMICS
    5.0%
    $44,000
    $71,000
    $101,000
    80
    BUSINESS MANAGEMENT AND ADMINISTRATION
    6.0%
    $38,000
    $56,000
    $85,000
    1
    CHEMICAL ENGINEERING
    3.8%
    $60,000
    $86,000
    $117,000
    49
    CHEMISTRY
    5.1%
    $39,000
    $59,000
    $85,000
    36
    CIVIL ENGINEERING
    4.9%
    $55,000
    $76,000
    $101,000
    32
    CLINICAL PSYCHOLOGY
    19.5%
    $25,000
    $40,000
    $61,000
    168
    COGNITIVE SCIENCE AND BIOPSYCHOLOGY
    4.5%
    $36,000
    $43,000
    $91,000
    167
    COMMERCIAL ART AND GRAPHIC DESIGN
    8.1%
    $31,000
    $45,000
    $69,000
    21
    COMMUNICATION DISORDERS SCIENCES AND SERVICES
    3.3%
    $32,000
    $41,000
    $50,000
    98
    COMMUNICATION TECHNOLOGIES
    6.7%
    $33,000
    $50,000
    $73,000
    89
    COMMUNICATIONS
    6.3%
    $35,000
    $50,000
    $81,000
    7
    COMMUNITY AND PUBLIC HEALTH
    4.1%
    $31,000
    $46,000
    $70,000
    110
    COMPOSITION AND SPEECH
    7.7%
    $30,000
    $40,000
    $61,000
    99
    COMPUTER ADMINISTRATION MANAGEMENT AND SECURITY
    9.5%
    $39,000
    $52,000
    $75,000
    114
    COMPUTER AND INFORMATION SYSTEMS
    5.6%
    $44,000
    $62,000
    $86,000
    31
    COMPUTER ENGINEERING
    7.0%
    $58,000
    $81,000
    $102,000
    47
    COMPUTER NETWORKING AND TELECOMMUNICATIONS
    5.2%
    $35,000
    $53,000
    $76,000
    97
    COMPUTER PROGRAMMING AND DATA PROCESSING
    6.2%
    $39,000
    $55,000
    $84,000
    121
    COMPUTER SCIENCE
    5.6%
    $50,000
    $77,000
    $102,000
    10
    CONSTRUCTION SERVICES
    5.4%
    $49,000
    $65,000
    $101,000
    76
    COSMETOLOGY SERVICES AND CULINARY ARTS
    7.3%
    $26,000
    $41,000
    $60,000
    115
    COUNSELING PSYCHOLOGY
    5.2%
    $23,000
    $34,000
    $42,000
    133
    COURT REPORTING
    4.9%
    $36,000
    $55,000
    $81,000
    151
    CRIMINAL JUSTICE AND FIRE PROTECTION
    4.7%
    $36,000
    $50,000
    $73,000
    13
    CRIMINOLOGY
    5.2%
    $35,000
    $50,000
    $71,000
    92
    DRAMA AND THEATER ARTS
    7.1%
    $28,000
    $40,000
    $60,000
    45
    EARLY CHILDHOOD EDUCATION
    4.1%
    $28,000
    $37,000
    $45,000
    50
    ECOLOGY
    5.2%
    $31,000
    $43,000
    $60,000
    109
    ECONOMICS
    6.3%
    $42,000
    $69,000
    $108,000
    16

    Source: Georgetown University Center on Education and the Workforce


    Deloitte (DTTL) and the International Association for Accounting Education and Research (IAAER) today announced the Deloitte IAAER Scholarship Programme, naming five associate professors from Brazil, Indonesia, Poland, Romania and South Africa as the programme’s inaugural scholars.
    IAS Plus
    February 13, 2013
    http://www.iasplus.com/en/news/2013/02/deloitte-scholars

    Mentors will be assigned to each scholar to support them as they increase their exposure to internationally recognised accounting scholars, best practices in accounting and business education and research, and a global peer network.

    Ongoing mentorship is a critical element of the Deloitte IAAER Scholarship Programme and some well-known and highly accomplished accounting experts have volunteered their support. These include former member of the Financial Accounting Standards Board, Katherine Schipper (Duke University); former member of the International Accounting Standards Board, Mary Barth (Stanford University); Chika Saka (Kwansei Gakuin University); Sidney Gray (University of Sydney); and Ann Tarca (University of Western Australia).

    The scholars, who must be a sitting lecturer, assistant, or associate professor holding a PhD (or comparable degree) in a faculty that teaches accounting, auditing, or financial reporting, are chosen for three years and attend IAAER co-sponsored conferences, workshops, and consortia as well as the IAAER World Congress.

    In the long term, the programme aims at supporting better accounting education and improving the quality of financial reporting and auditing. The next round of scholarships will open in 2016, with applications considered in 2015.

     Bob Jensen's helpers for accounting educators ---
    http://faculty.trinity.edu/rjensen/default3.htm

    Bob Jensen's helpers for accounting researchers ---
    http://faculty.trinity.edu/rjensen/default4.htm

    Bob Jensen's threads ---
    http://faculty.trinity.edu/rjensen/threads.htm


    Career Ladder to Nowhere
    "All LinkedIn with Nowhere to Go," by Ann Friedman, The Baffler, No. 23, 2013 ---
    http://www.thebaffler.com/past/all_linkedin_with_nowhere_to_go

    . . .

    This frenetic networking-by-vague-association has bred a mordant skepticism among some users of the site. Scott Monty, head of social media for the Ford Motor Company, includes a disclaimer in the first line of his LinkedIn bio that, in any other context, would be a hilarious redundancy: “Note: I make connections only with people whom I have met.” It’s an Escher staircase masquerading as a career ladder.

    On one level, of course, this world of aspirational business affiliation is nothing new. LinkedIn merely digitizes the core, and frequently cruel, paradox of networking events and conferences. You show up at such gatherings because you want to know more important people in your line of work—but the only people mingling are those who, like you, don’t seem to know anyone important. You just end up talking to the sad sacks you already know. From this crushing realization, the paradoxes multiply on up through the social food chain: those who are at the top of the field are at this event only to entice paying attendees, soak up the speaking fees, and slip out the back door after politely declining the modest swag bag. They’re not standing around on garish hotel ballroom carpet with a plastic cup of cheap chardonnay in one hand and a stack of business cards in the other.

    LinkedIn does have some advantages over the sad old world of the perennially striving, sweating minor characters in Glengarry Glen Ross. After all, it doesn’t require a registration fee or travel to a conference center. Sometimes there are recruiters trolling the profiles on the site. It’s a kinder, gentler experience for the underemployed. It distills the emotionally fraught process of collapsing years of professional experience onto a single 8½ x 11 sheet of paper into the seemingly more manageable format of the online questionnaire. In the past year, the site has made the protocols of networking even more rote, allowing users to select from a list of “skills” and, with a few clicks, declare their proficiency. “You can add up to 50 relevant skills and areas of expertise (like ballet, iPhone and global business development),” chirps an infobox on the site.

    A century or so ago, critics worried that the rise of scientific management in the industrial workplace would deskill the American worker; now, in the postindustrial order of social-media-enabled employment, skills (or, you know, quasi-skills) multiply while jobs stagnate. Sure, you probably won’t get hired at most places on the basis of your proficiency in ballet—but if you’re so inclined, you can spend some of your ample downtime on LinkedIn endorsing the iPhone skills of select colleagues and acquaintances.

    These Thoughts for Hire

    LinkedIn’s architects are self-aware enough to know that, even in the age of social-media following, some of us must be leaders. In October, the site enabled users to “follow” a handpicked set of “thought leaders.” LinkedIn has given this “select group” permission “to write long-form content on LinkedIn and have their words and sharing activity be followed by our 187 million members.” So far, 190 leaders have made the cut. The “most-followed influencers” are familiar names to anyone who’s ever killed time in an airport bookstore: Richard Branson, Deepak Chopra, Arianna Huffington, Tony Robbins.

    The animating vision behind the thought leader initiative is that great digital-economy will-o’-the-wisp known as the flattened hierarchy. “It used to be that the only way to hear what someone had to say on LinkedIn was to ask to connect with them. And you’re supposed to only do that with people you know and have done business with,” Isabelle Roughol, one of LinkedIn’s editors, wrote me in an email. “The average professional won’t chat at the coffee machine with someone like [Virgin Group founder] Richard Branson, but we still want to know how he got his start in business, how he manages his team or why he thinks private space travel is the future. That’s the space our ‘Influencers’ program fills.”

    Continued in article

     

    The social media backlash may be starting.
    People in their 30s are quitting Facebook and Twitter, and LinkedIn is reaching down to students. This could just be the start --- Click Here
    http://247wallst.com/media/2013/09/23/is-the-social-media-backlash-taking-hold-facebook-linkedin-twitter-have-to-care/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=SEP242013A&utm_campaign=DailyNewsletter

    "Facebook and Twitter Are Converging:  The two largest social networks are becoming more similar, as they borrow each other’s features, and search for profit," by Tim Simonite, MIT's Technology Review, September 13, 2013 --- Click Here
    http://www.technologyreview.com/view/519296/facebook-and-twitter-are-converging/?utm_campaign=newsletters&utm_source=newsletter-daily-all&utm_medium=email&utm_content=20130916

    "Social Media: Ten Things Accountants Should Never Do," by Mark Lee, AccountingWeb, May 23, 2013 --- Click Here
    http://www.accountingweb.com/article/social-media-ten-things-accountants-should-never-do/221837?source=technology

    Bob Jensen's threads on social media ---
    http://faculty.trinity.edu/rjensen/ListservRoles.htm

     


    June 1, 2013 message from Bryce Walker

    Hi Bob,

    After recently passed the CPA exam, I created a website to help others avoid the same mistakes I made. I wrote an article to help inspire accounting students that plan on pursuing a CPA license and to let them know that all their hard work will pay off in the end.

    http://crushthecpaexam.com/becoming-a-cpa/ 

    If you find value in my article I would love to be listed on your bookmarks page as I think many others would find my story motivating. Thanks for you time,

    Bryce

    Bryce Welker, CPA
    CRUSHtheCPAexam.com

    Bob Jensen's threads on accounting careers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    Applicants for academic jobs, particularly in the humanities, know instinctively—and by the job offers that never materialize—that they face tough competition in trying to get tenure-track positions. And when the odds are sometimes as high as 600 to one, as they were for a recent opening for assistant professor in the department of political science at the University of Wisconsin at Madison, candidates have no way of knowing exactly whom they are up against or how they stack up.
    "The Long Odds of the Faculty Job Search," by Audrey Williams June, Chronicle of Higher Education, May 19, 2013 ---
    http://chronicle.com/article/The-Long-Odds-of-the/139361/?cid=wb

    Bob Jensen compares (with data) searching for an accounting faculty position versus a history faculty position at
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#HistoryVsAccountancy


    "11 Reasons Why Getting An MBA (from a prestigious program)  Is Better Than Getting A CFA," by Linette Lopez, Business Insider, May 24, 2013 ---
    http://www.businessinsider.com/getting-an-mba-better-than-getting-a-cfa-2013-5

    Jensen Comment
    I'm not certain there's a whole lot of value in this apples versus tomatoes comparison. Ms. Lopez makes an underlying assumption that CFAs are primarily backroom analysts. I'm reminded of a neighbor I had in Maine who was a CFA who made a lot of money as the owner of an insurance and investment services company.

    She also makes an implicit assumption that the MBA degree is from a prestigious MBA program like an Ivy League MBA degree. Actually, most MBA degrees are from somewhat less prestigious state universities that have much more variability in terms of student networking, ties with powerful alumni, employment opportunities, and faculty consulting at high levels in corporations. A lot more of those MBAs are in unemployment lines or stuck in the same jobs they had before entering an MBA program.

    Also complicating the issue is that a lot of CFAs are also MBAs who later elected to specialize for better jobs in the financial services industry.

    I also feel that it would be misleading to compare CPA versus CFA careers. The main problem is variability. For example, there's a huge difference between being a Big 10 CPA firm partner versus being a solo practitioner with mostly tax clients in Bangor, Maine. Similarly, there's a world of difference between being a CFA in a large Wall Street bank versus being a solo practitioner selling insurance and financial services in Bangor, Maine.

    Annual income can be a poor basis of comparison since some professionals in a small town in the USA make ten times more than their counterparts in big CPA firms and banks. There's a lot of serendipity in life.


    "Job Interview Questions That Will Catch You Off Guard," by Marissa Brassfield, Payscale, March 12, 2013 --- Click Here
    http://blogs.payscale.com/salary_report_kris_cowan/2013/03/job-interview-questions-that-will-catch-you-off-guard.html?utm_medium=Email&utm_source=ExactTarget&utm_campaign=0313_newsletter_02&utm_term=http%3a%2f%2fblogs.payscale.com%2fsalary_report_kris_cowan%2f2013%2f03%2fjob-interview-questions-that-will-catch-you-off-guard.html&cm_mmc=Email-_-0313_newsletter_02-_-NA-_-http%3a%2f%2fblogs.payscale.com%2fsalary_report_kris_cowan%2f2013%2f03%2fjob-interview-questions-that-will-catch-you-off-guard.html

    Job interview questions are often standard, allowing you to prepare all your answers before you meet with your new potential employer. But some companies like to ask questions that throw you completely off-guard.

    Randy Garutti, the CEO of burger franchise Shake Shack, asks potential new employees to predict the future: "If we're sitting here a year from now celebrating what a great year it's been for you in this role, what did we achieve together?" Garutti says the point of this question is to see if interviewees have done their homework. In fact, he actually wants them to interview him. "The candidate should have enough strategic vision to not only talk about how good the year has been but to answer with an eye towards that bigger-picture understanding of the company."

    Meanwhile, Ryan Holmes, the CEO of social media tool HootSuite, wants candidates to use their imaginations. He often asks, "What's your superpower? and "What's your spirit animal?" His current executive assistant answered the second question, saying a duck because they seem calm, but underneath the surface they are always moving. "I think this was an amazing response and a perfect description for the role of an EA," Holmes says.

    The CEO of recruiting software Bullhorn, Art Papas, already knows a lot about finding the right candidates, so he asks a question that most employers never think about: "What things do you not like to do?" Papas says it often takes a few tries before an interviewee is willing to answer honestly, but the answer reveals a lot about candidates and shows if they are really cut out for the job.

    Eric Ripert, chef and co-owner and Le Bernardin in New York City, likes to keep the creative process going in job interviews. He looks for certain characteristics like discipline and passion by making the interview more of a conversation. "I ask indirect questions about the creative process, about articulating and demystifying the process of creating great food and great service. Then I trust my instincts," he says.

    Continued in article

    Jensen Comment

    My economist colleague, Bill Breit, always like to ask:
    "If you could have a long private dinner with any person living or dead, who would you choose and why?"
    The important answer is not so much who but why.

    Accounting professor Joe Hoyle likes to ask:
    "What is the best book you ever read?"

    "What Is the Best Book You Ever Read?" by Joe Hoyle, Teaching Blog, June 23, 2012 ---
    http://joehoyle-teaching.blogspot.com/2012/06/what-is-best-book-you-ever-read.html

    Jensen Comment
    Firstly I don't like this question because many readers who answer this question, especially in public, will be trying to say something about themselves instead of the book. To your Mom and your kids, the best book you ever read had better be The Bible or The Quran.

    To your blog audience the best book you ever read from cover to cover had better be Toynbee's ten-volume set ---
    http://en.wikipedia.org/wiki/Arnold_J._Toynbee

    Secondly, such a question should be asked in one of a hundred or more contexts. What is the best book you ever read in accounting history, financial accounting, cost accounting, tax accounting, accounting information systems, history of computing, learning and cognition, etc.

    What is the best mystery novel you've ever read, the best romantic novel you ever read, the best biography you ever read, and on and on and on.

    Beware of those oral interviews when applying for a job or college admission or membership in an exclusive club. Be prepared for those trick questions such as the examples given below:

    In the end the choices at the top and bottom of your lists on most any topic are just too close together to rank. And your choices are not locked in time or place.

    Conclusion
    Of course my favorite set of books is Toynbee's ten-volume set.
    Oops! Sorry Mom, I overlooked The Bible.


    From the Stanford Graduate School of Business

    5 Attitudes of Successful Entrepreneurs, from Professor Irv Grousbeck ---
    http://stanfordbusiness.tumblr.com/post/52905655004/5-attitudes-of-successful-entrepreneurs-from-professor

    Jensen Comment
    We must acknowledge that successful entrepreneurs, like successful CEOs of public companies, have flaws that are generally offset by tremendous offsetting traits. For example, I don't know of any analysts that credit Steve Jobs for skills in managing people. Steve was a genius at managing products.

    Also too little credit is given to the serendipity of "success" that comes from being in the right place at the right time. A perfect combination of the five "attitudes" mentioned by Professor Grousbeck are only a small part of "success."


    "Tax Professionals Will Continue To Be in Great Demand for Years," by Frank Byrt, AccountingWeb, March 3, 2013 ---
    http://www.accountingweb.com/article/tax-professionals-will-continue-be-great-demand-years/221256?source=education


    Special Robotics (Robot) Feature Article from MIT's Technology Review --- Click Here
    "
    How Technology Is Destroying Jobs," by David Rotman, MIT's Technology Review, June 12, 2013
    Note the 60 comments to date
    http://www.technologyreview.com/featuredstory/515926/how-technology-is-destroying-jobs/?utm_campaign=newsletters&utm_source=newsletter-daily-all&utm_medium=email&utm_content=20130613

    Jensen Comment
    This makes me recall a science fiction movie years ago. Handsome people feeding, frolicking, and "working" at whatever they wanted like painting landscape pictures above ground for no pay lived very well (sort of like what Carl Marx viewed as the ultimate communism state). The genetics of illness, including mental illness, was cured. Everything was wonderful except for the unlucky few now and then that were hauled off to slaughter houses to feed the ugly trolls living in dark caverns below ground, trolls that really controlled the world.

     


    "20 Things We Wish Someone Had Told Us At Graduation," by Aimee Groth and Max Nisen, Business Insider, May 25, 2013 ---
    http://www.businessinsider.com/business-insider-advice-for-college-grads-2013-5

    Jensen Comment
    Firstly, all 20 things are commonly mentioned in graduation speeches.

    Secondly, this advice is coming mostly from people who have attained some measure of success. These journalists did not report advice from homeless people, graduates still having minimum wage McJobs, and graduates still living with their parents because of lack of success in finding employment.

    Thirdly, for every graduate who bypassed the job market and successfully started out as an entrepreneur there are perhaps a thousand who are homeless or still living with mom and dad.

    Fourthly, advice should be given about commonly-available jobs that become extremely tedious and boring over a 50-year career. For example, 50 years from now do you still want to be cleaning teeth as a dental hygienist? Or do you really want to fix teeth for 50 years as a dentist.

    Lastly, these journalists did not interview those graduates who were sexually assaulted while spending a year in a developing country that should be visited cautiously with common sense. Sadly, the same can be said for enlisting in the USA military, and you don't have to leave the USA to be sexually assaulted.

    Closing Comment
    In elementary school teachers commonly ask students to stand up and explain what their parents do for a living. If young kids at that age can explain what their parents do for a living they probably should be advised to seek other career tracks when they eventually graduates. Most of the really exciting careers are not easily explained by a seven year old kid.


    Demand for Accounting Graduates Among the Highest of All Disciplines

    "CPAs are sexy: Accountants in demand as regulatory climate tightens," Boston Business Journal, January 14, 2013 ---
    http://www.masslive.com/business-news/index.ssf/2013/01/cpas_are_sexy_accountants_in_demand_as_r.html

    The numbers are in, and accountants should be smiling.

    The unemployment rate for accountants stands at just 4.1 percent. And Forbes.com recently listed accountants and auditors at No. 2 on its list of Top Jobs for 2013, just behind software developers.

    Meanwhile, the Class of 2012 Student Survey Report, released last year by the National Association of Colleges & Employers, found that 68 percent of the most recent accounting majors received job offers, the highest percentage of any major.

    “The job demand is there, and it’s steady,” said Barbara Iannoni, academic/career development specialist at the Massachusetts Society of Certified Public Accountants Inc.

    In fact, demand for accounting professionals has picked up and continues to strengthen, said Bill Driscoll, the New England District president for staffing firm Robert Half International. And Driscoll says the demand for new talent is coming from all areas.

    “It’s private industry, it’s public, it’s really across the board. You don’t have to be in a CPA to be in demand,” he said. “It’s accounting that’s in demand right now. You can be a comptroller, financial analyst, or auditor without being a CPA.”

    Driscoll said that for applicants with a mix of public and private company experience — something most CPAs have — the job opportunities are even more plentiful.

    “In the economic environment we still find ourselves in, anyone in the accounting department who can analyze where the dollars go, who can help companies stretch every dollar, are in high demand,” he said.

    Nonetheless, companies today still have high expectations for those they hire; they want accountants who know more than numbers, Driscoll said.

    “Everybody needs number crunchers, but particularly with the events of the last four or five years, if you can blend communication skills and leadership skills with accounting skills or a CPA, that will open up all sorts of opportunities and career progressions for you,” he said.

    Industry leaders said most college students on the accounting track still aim to get a CPA designation, which requires meeting state-set academic and experience requirements as well as passing a one-time state-administered CPA test. Once certified, a CPA also must meet regular licensing requirements.

    It’s no easy process. According to Scott Moore, senior manager of the College and University Initiatives at the American Institute of CPAs, only 40 percent of test takers nationwide actually pass.

    “It shows a lot of dedication and self-discipline to pass the exam. That really tells you something about the person,” Moore said.

    That’s one of the reasons the CPA remains such a hot commodity in the job market, he said.

    Another reason: the ever-expanding list of regulations that companies face. It’s a state of affairs that took a big leap forward in 2002 with the passage of the Sarbanes-Oxley Act. The Dodd-Frank financial reform act of 2010, which is still being phased in through dozens of yet-to-be-written regulations, has only made CPAs all the more valuable, Moore said.

    “The work that a CPA does has evolved. There’s not so much a need to do hard core number crunching because (computers) can do that, so it’s more interpretation versus creation of information, and that interpretation is more important to the business. CPAs have really taken on that role,” said Moore, noting that CPAs are increasingly filling a number of C-level positions at major companies.

    Continued in article

    Jensen Comment
    There are some caveats. Undergraduate accounting majors must now take a fifth year or more (most enter masters degree programs) in order to sit for the Uniform National CPA Examination. And starting salaries are lower than salaries of engineers.

    And most graduates going to work for CPA firms have a low probability of surviving in those firms after 5-10 years. But this is not usually too bothersome since the main reason many accounting graduates first enter public accounting is for the great training and client exposures. Most of them did not want to stay in public accounting because of the requisite travel, long hours, and performance pressures. Those that leave public accounting after a few years go with clients who offer 9-5 hours, less travel, and much less pressure. And many leave to become full-time parents between the early parts and late parts of their accounting careers.

    The bummer is that corporations fail offer nearly as many entry-level jobs as public accounting firms. Corporations and agencies like the FBI prefer to hire job applicants with some years of accounting experience. Aside from public accounting, the IRS is one of the best sources of entry-level job applications. And both the training and experience in the IRS are excellent for changing jobs later on.


    National Association of Colleges and Employers (NACE) --- http://www.naceweb.org/home.aspx

    "2011 Accounting Graduates Earning Average Salaries of $50,000," AccountingWeb, January 31, 2012 ---
    http://www.accountingweb.com/topic/education-careers/2011-accounting-graduates-earning-average-salaries-50000

    Accounting major college graduates earned an average of $50,500. Entry-level accounting and finance jobs tend to see steady growth. Highest-paying employers of accounting majors were securities, commodities, and financial investments employers.

    Continued in article

    NACE Salary Calculator Center --- http://www.jobsearchintelligence.com/NACE/salary-calculator-intro/

    Jensen Comment
    I always warned students to look more at career potential than starting salaries. For example, a student's lowest starting salary from a public accountancy firm may be that student's best offer in terms of career training, experience with quality clients, working atmosphere, travel requirements, work-at-home opportunities, promotion prospects, etc. Some firms are better than others in terms of chances of being admitted into the partnership. Some firms are better than others in terms of working with clients that offer job change opportunities.

    For example, the highest starting salaries for accounting, finance, and economics graduates are usually Wall Street securities, commodities, banking, and investments employers. But these are usually accompanied by high costs of living and possibly time consuming commutes. Compensation may depend heavily on commissions and bonuses. And a given starting employee may be only one of hundreds of new hires competing for recognition and promotion. Accepting a lower salary in a Big Four auditing firm or even a smaller auditing firm in Des Moines may actually be a better career choice even if the starting salary is less than $60,000.


    Business School Rankings

    Hi Wes,

    Thank you for this since it was a ranking I had not seen ---
    http://www.businessinsider.com/the-worlds-best-business-schools-2012-6#

    I do track rankings of other media outlets like US News, Bloomberg Business Week, the WSJ, Forbes, and The Economist ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings 

    This has to be the best one since Stanford comes out on top.
    Just kidding of course.

    It is the a helpful site in the sense that for each of the 50 ranked programs it shows the ranks that were also given by US News, Bloomberg Business Week, Forbes, and The Economist.

    Feel free to send me some new pictures. I maintain a file on your professional photographs.

    Thanks,
    Bob

    Bob Jensen's threads about ranking controversies ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings


    "What To Consider Before," by Bastiaan Janmaat, Fastco Labs, August 2013 ---
    http://www.fastcolabs.com/3014564/open-company/what-to-consider-before-starting-up-in-college

    Some of today’s greatest tech companies, young and old, were started by college students: Microsoft, Dell, Facebook, Snapchat. In each case, their founders (Gates, Dell, Zuckerberg, and Spiegel) started working on their companies while in school, and then dropped out to pursue their ventures full-time. So is school a good place to start a business?

    Starting Up In College: The Pros

    The advent of cheap hosting and other outsourced infrastructure has brought the costs of starting a software company down dramatically. Now more than ever, students are building companies from their dorm rooms. This was especially salient for my cofounders and me at Stanford, where, in the last 18 months, we experienced much of the optimism and many of the resources that the university has become well-known for. Here are other things that student founders have going for them.

    Finding A Cofounder Is Easier

    “How do I find a cofounder?” is the single most common question asked of Paul Graham, and yet the hardest question for him to answer. PG’s answer is that he can’t find you your cofounder, because the best candidates are folks you already know. My cofounders, Mike and Alden, entered my life at Stanford. I met Mike through our shared interest in organizing founder meetups around campus. Mike and Alden met through Stanford’s CS classes. It’s cliche but in my opinion very true: Cofounders need to be respected and trusted peers first, and colleagues second. College is a fantastic mixing ground because it’s a place where people have natural flexibility, shared interest, and an objective of getting to know each other.

    You Can Use Class Time To Incubate Ideas

    Starting a company while at Stanford, we were able to iterate our concept quickly in classes designed to “test the entrepreneurial waters.” In the d.school’sLaunchpad,” we were asked to create a working prototype in one week, have a paying customer after two, and constantly iterate our product according to user feedback. Over at the Graduate School of Business, Professors Barnett and Rachleff taught us how to findproduct-market fit.” In both cases, the school environment helped stimulate us to think about our ideas in ways that are hard to reproduce outside of school. Outside of Stanford, many startups now adopt the “Lean Startup” Methodology championed by Eric Ries and taught at many forward-thinking universities around the world.

    You’re In A Low-Risk Environment

    Mike, Alden, and I focused many class projects and presentations on our own startup, garnering help and feedback from smart classmates while enabling us to refine our business plan and pitch in a low-risk environment. In school you can pick up a project, work on it with a group of people, talk to potential customers, fail, and do it all over again, without the risks that would come later in life; having to leave your job to try something new, supporting a big family, etc.

    You Can Call Anyone For Help

    People will almost always extend a helping hand to students--even when they might not have helped that person outside the context of school. It’s much easier to learn from and get to know future partners, colleagues, or competitors while you’re still in school and they feel an intrinsic desire to help you.

    Starting Up In College: The Cons

    So with all those benefits and resources, shouldn’t every entrepreneurially minded student be starting a business in school? Notwithstanding all the benefits of starting a company in school, there are challenges and risks that I came across the hard way when founding LifeSwap (the predecessor to my current startup--here’s our pivot story). Consider these disadvantages:

    Hunting For Ideas Is Harder

    Some of the startups founded in school arise through class projects where a group of students proactively seek to uncover and develop a business opportunity. This goes against the belief that true innovation stems from authentic and unique insight into a problem. When students come up with business ideas that are inauthentic to their own experience, or lack deep insight into a pain point, there’s a risk that the idea is more of a vitamin than a painkiller, and thus less likely to be a necessary solution.

    You’re In An Echo Chamber

    Less-than-great ideas, rather than dying quickly, stay alive due to falsely positive feedback from others. Affirmative feedback from surveying classmates is too often taken as confirmation of a use case, when it is a result of people’s inclination to be supportive. We learned this lesson with LifeSwap: People loved the idea of experiencing another job for a few hours! But our classmates weren’t our target market... so make sure you getout of the buildingto test your product with your real customers.

    False Positives Are More Likely

    Amidst that echo chamber of excitement about your startup, and positive reactions from those around you, many student founders experience an escalation of commitment. Before I knew it, I was working on LifeSwap in lieu of a summer internship, and being asked if I was planning to “drop out” before graduation. I considered it, as did a number of classmates of mine. With hindsight, I’m relieved that I decided to stay in school. My chances to start a business didn’t dissipate, while the experience of attending graduate school and building a valuable network would have been hard to replicate later on. One question to ask is whether deferral is an option.

    Continued in article


    "Are languages important for accountants?" by Mark P. Holtzman, Accountinator Blog, February 21, 2013 ---
    http://accountinator.com/2013/02/21/1151/

    Jensen Comment
    Increasingly in this global world I've been an advocate of language skills in general and for accounting graduates in particular. Years ago I had a student at Trinity University who had a minor in Russian. My personal opinion is that he probably would not have become a Big Four partner in the Houston Office. However, when he was transferred to the Moscow office of that Big Four firm he made partner in record time.

    Accounting and auditing firms in Texas have enormous opportunities for client work in Mexico and most points south where Spanish is generally the native tongue. I had another student who I never predicted would get a job with a Big Four firm because I always thought of him more as a baseball star than a good student in accounting. However, Trinity University is a special university for language skills. This baseball player landed a job in the San Antonio office of the Big Four. Furthermore he was single and more than willing to take on very long engagements with clients south of the Rio Grande. This student also had a very engaging personality --- one of the funniest guys I ever met. He probably should've followed in the footsteps of an accountant named Bob Newhart --- http://en.wikipedia.org/wiki/Bob_Newhart

    Trinity University has a relatively popular Chinese language program and quite a few of my former students found it to their advantage to minor in Chinese.


    The 3 Secrets Of Highly Successful Graduates (Slide Show)
    "Amazing Career Advice For College Grads From LinkedIn's Billionaire Founder," by  Nicholas Carlson, Business Insider, May 12, 2013 ---
    http://www.businessinsider.com/amazing-career-advice-for-college-grads-from-linkedins-billionaire-founder-2013-5 

    Jensen Comment
    I'm not sure I agree with all of this. If you search long enough and hard enough almost everything appears somewhere in the library and/or in Web documents. The problem is sorting out the wheat from the chaff beforehand in the context of your particular talent, skills, determination, family circumstances, living environment, health, opportunities, and constraints.

    Millionaires and billionaires, like Reid Hoffman, often feel they have the answers to success when in fact much of their success is a matter of luck along the serendipitous road in life. I grant them the fact that sometimes you help to make your own luck, but by it's very definition taking "risks" with careers means that there will be many losers as long as a few winners along that serendipitous road.

    Also most people really do not have the talent for and drive to becoming successful entrepreneurs. Advising most graduates to become entrepreneurs may be setting them on a road to failure.

    To illustrate my point, I think that many accounting graduates are better off to become lifelong employees as public accountants, internal auditors, governmental accountants, FBI agents, etc. Most of them are likely to fall on very hard times if they quit their jobs and leverage up to create a startup company.

    Hopefully, some of them will take the plunge and form a new venture in a quest for the American Dream. But this is not good advice for the majority of those graduates looking down the road at their lifelong careers. Tell most of those graduates that they may find great careers as public accountants, internal auditors, governmental accountants, FBI agents, professors, etc.  At the same time tell them to keep their eyes open to opportunities and to be willing, if they have the inspiration to do so, to take the plunge. But also tell them not to become victims of get-rich-quick frauds.


    Going Concern's Admittedly Unscientific 2012 Survey of Starting Salaries for New Accounting Graduates ---
    http://goingconcern.com/post/recruiting-season-public-accounting-salaries-starting-class-2013

    Jensen Comment
    Keep in mind that cost of living varies.
    When I was still teaching it was somewhat easier to get a Big Four starting job in San Francisco relative to San Antonio. In San Francisco the salary would hardly pay for a one-room apartment without partnering to share the rent. Starting salaries are often not fully adjusted for higher cost-of-living cities.

    Also I will mention my oft-repeated advice to college graduates. The amount of starting salary should be a low priority relative to prospective employer training, exposure to clients who are often the way career tracks head after a year or two with a CPA firm, opportunities in areas of interest such as tax or IT, and opportunities for international transfer (e.g., to Asia), and expected travel requirements (tough for expecting parents), and opportunity for work at home (great for expecting parents).

    CPA firms do not offer high enough salaries for entry-level auditing and tax to attract graduates from prestigious MBA programs. These firms do not hire many such MBA graduates and when they do hire these graduates at higher salaries it is generally for consulting rather than auditing and tax. CPA firms generally want consultants who have considerable on-the-job training and special skills such as IT and language skills.

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    "For Newly Minted M.B.A.s, a Smaller Paycheck Awaits," by Ruth Simon, The Wall Street Journal, January 6, 2013 ---
    http://professional.wsj.com/article/SB10001424127887324296604578175764143141622.html?mg=reno64-wsj

    Like many students, Steve Vonderweidt hoped that a master's degree in business administration would open doors to a new job with a higher paycheck.

    But now, about eight months after receiving his M.B.A. from the University of Louisville, Mr. Vonderweidt, 36 years old, hasn't been able to find a job in the private sector, and continues to work as an administrator at a social-service agency that helps Louisville residents obtain food stamps, health care and other assistance. He is saddled with about $75,000 in student-loan debt—much of it from graduate school.

    "It was a really great program," says Mr. Vonderweidt. "But the job part has been atrocious."

    Soaring tuition costs, a weak labor market and a glut of recent graduates such as Mr. Vonderweidt are upending the notion that professional degrees like M.B.A.s are a sure ticket to financial success.

    The M.B.A.'s lot is partly reflected in starting pay. While available figures vary by schools and employers, recruiters' expected median salary for newly hired M.B.A.s was essentially flat between 2008 and 2011, not adjusting for inflation, according to a survey by the Graduate Management Admission Council.

    For graduates with minimal experience—three years or less—median pay was $53,900 in 2012, down 4.6% from 2007-08, according to an analysis conducted for The Wall Street Journal by PayScale.com. Pay fell at 62% of the 186 schools examined.

    Even for more seasoned grads the trend is similar, says Katie Bardaro, lead economist for PayScale.com. "In general, it seems that M.B.A. pay is either stagnant or falling," she says.

    The pressures are greatest for those attending less prestigious schools, says Stanford Business School professor Paul Oyer, who studies personnel trends. But even at top programs, some graduates are likely to struggle in today's environment, he says.

    Another burdensome issue: a high debt load. Nearly 60% of graduating M.B.A.s said they expected to repay some loans after graduation, according to a 2012 GMAC survey. Among households headed by people with student debt who attended graduate school and are under 35, average student loan debt climbed to $81,758 in 2010 according a Wall Street Journal analysis of Federal Reserve data. That figure is up from $55,594 in 2007.

    It is all a far cry from the late 1980s and early 1990s heyday for M.B.A.s, when some companies would hire 100 or more M.B.A.s. It wasn't uncommon to recruit first, and fill actual jobs later.

    "Some of those companies would hire today barely in the single-digits," says Mark Peterson, president of the M.B.A. Career Services Council.

    A weak economic climate is only partly to blame for the M.B.A.'s plight. The changing nature of B-school programs, evolving corporate needs—as well as the perceived value of the degree—have all helped dilute the M.B.A.'s allure.

    Formerly, the traditional M.B.A. was mainly the product of a full-time, two-year program. But beginning in the early 1990s, many schools created part-time and executive M.B.A. programs, with lower-ranked schools often following in the footsteps of academic leaders. Online degrees also gained in popularity.

    As a result, the number of M.B.A. degrees granted has grown faster than the population, says Brooks Holtom, a management professor at Georgetown University's McDonough School of Business.

    "An M.B.A. is a club that is now not exclusive," he says. "You should not assume that this less exclusive club is going to confer the same benefits."

    Today's global corporate culture amplifies the competition. "We are trying to internationalize our business like everyone else," says Lee Ashton, director of international human resources at spirits maker Brown-Forman Corp. BF.B +0.37% With 58% of its business outside the U.S., the Louisville company has stepped up recruiting of M.B.A.s from abroad.

    U.S. schools granted a record 126,214 masters degrees in business and administration in the 2010-2011 academic year, a 74% jump from 2000-2001, according to the Department of Education. The M.B.A. march is part of an overall boom in advanced degrees that took on added steam as some recent college graduates and others sought refuge from the recession by pursuing advanced degrees. Tuition and fees for full-time M.B.A. programs has risen 24% over the past three years, according to the main body that accredits U.S. business schools.

    It is unclear how many M.B.A.s the market really needs. Recently, more companies have indicated that "they are moving away from an emphasis on M.B.A.s" and are instead hiring more undergraduates at lower salaries that they can then train in-house, says Camille Kelly, vice president of employer branding at Universum, a firm that advises companies on how to attract and retain the best employees. Companies, she says, "still will do M.B.A. hiring, but it won't be to the same extent they have in the past."

    Continued in article

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    Texas:  Bar Exam Passage Rates by University ---
    http://www.ble.state.tx.us/stats/stats_0212.htm
    Thank you for the heads up Dennis Elam

    Bob Jensen's threads on Turkey Times for Overstuffed Law Schools ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#OverstuffedLawSchools


    Baylor Law School --- http://www.baylor.edu/law/

    The Baylor Law Data Dump
    Baylor University School of Law Reveals Each Student's Grade Average, LSAT Score, Alma Mater, Race, Ethnicity, and Scholarship Amount

    Law School Admission Test (LSAT) --- http://en.wikipedia.org/wiki/LSAT

    Scoring

    The LSAT is a standardized test in that LSAC adjusts raw scores to fit an expected norm to overcome the likelihood that some administrations may be more difficult than others. Normalized scores are distributed on a scale with a low of 120 to a high of 180.

    The LSAT system of scoring is predetermined and does not reflect test takers' percentile, unlike the SAT. The relationship between raw questions answered correctly (the "raw score") and scaled score is determined before the test is administered, through a process called equating. This means that the conversion standard is set beforehand, and the distribution of percentiles can vary during the scoring of any particular LSAT.

    Adjusted scores resemble a bell curve, tapering off at the extremes and concentrating near the median. For example, there might be a 3-5 question difference between a score of 175 and a score of 180, but the difference between a 155 from a 160 could be 9 or more questions. Although the exact percentile of a given score will vary slightly between examinations, there tends to be little variance. The 50th percentile is typically a score of about 151; the 90th percentile is around 163 and the 99th is about 172. A 178 or better usually places the examinee in the 99.9th percentile.

    Examinees have the option of canceling their scores within six calendar days after the exam, before they get their scores. LSAC still reports to law schools that the student registered for and took the exam, but releases no score. There is a formal appeals process for examinee complaints,[16] which has been used for proctor misconduct, peer misconduct, and occasionally for challenging a question. In very rare instances, specific questions have been omitted from final scoring.

    University of North Texas economist Michael Nieswiadomy has conducted several studies (in 1998, 2006, and 2008) derived from LSAC data. In the most recent study Nieswiadomy took the LSAC's categorization of test-takers into 162 majors and grouped these into 29 categories, finding the averages of each major:[17]

    1. Mathematics/Physics 160.0
    2. Economics and Philosophy/Theology (tie) 157.4
    3. International relations 156.5
    4. Engineering 156.2
    5. Government/service 156.1
    6. Chemistry 156.1
    7. History 155.9
    8. Interdisciplinary studies 155.5
    9. Foreign languages 155.3
    10. English 155.2
    11. Biology/natural sciences 154.8
    12. Arts 154.2
    13. Computer science 154.0
    14. Finance 153.4
    15. Political science 153.1
    16. Psychology 152.5
    17. Liberal arts 152.4
    18. Anthropology/geography 152.2
    19. Accounting 151.7
    20. Journalism 151.5
    21. Sociology/social work 151.2
    22. Marketing 150.8
    23. Business management 149.7
    24. Education 149.4
    25. Business administration 149.1
    26. Health professions 148.4
    27. Pre-law 148.3
    28. Criminal justice 146.0

    The Baylor Law Data Dump --- http://abovethelaw.com/2012/04/the-baylor-law-data-dump-now-with-race-and-scholarships/2/
    If you're interested in this data it may be best to download it now. I don't expect this to remain on the Web for long.

    "The Law School System Is Broken," National Jurist, February 2012 --- Click Here
    http://www.nxtbook.com/splash/nationaljurist/nationaljurist.php?nxturl=http%3A%2F%2Fwww.nxtbook.com%2Fnxtbooks%2Fcypress%2Fnationaljurist0212%2Findex.php#/18/OnePage
    Thank you Paul Caron for the heads up

    Turkey Times for Overstuffed Law Schools ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#OverstuffedLawSchools


    At the University of Texas MBA women graduates edged out men in terms of compensation offers
    At the University of Michigan female and male MBA graduates average about the same compensation offers
    Why are women MBA graduates from Stanford not faring as well as their male counterparts?

    "Why Stanford MBA Men Make So Much More Than Women?" by Alison Damast, Bloomberg Business Week, December 21, 2012 ---
    http://www.businessweek.com/articles/2012-12-21/why-stanford-mba-men-make-so-much-more-than-women

    The gender pay gap at Stanford’s Graduate School of Business has female graduates earning 79¢ on the male dollar, the widest discrepancy in earnings between men and women at any of the top 30 business schools, according to new research from Bloomberg Businessweek.

    That disparity may seem large, but it isn’t startling to many of the women in the Stanford Class of 2012, who say the figures largely indicate the wide range of career choices they are making.

    Take Shan Riku, who worked as a consultant at McKinsey before business school and is now working as head of new business development at Cookpad, Japan’s largest recipe-sharing website. Riku admits she took a pay cut in accepting the position but says she was more interested in taking on a role that would challenge her. It also didn’t hurt that Cookpad encourages families to cook and spend time together. “Many women at Stanford tend to make choices that are a little bit more focused on ‘how do I want to balance my life,’ rather than ‘how can I earn a lot of money,’” she says.

    Pulin Sanghvi, director of the career management center at Stanford’s business school, says most of the pay gap at his school can be “attributed to industry choice.” According to Sanghvi, women and men at Stanford who go into the consulting or Internet technology sectors tend to have average starting salaries that are close or equivalent in size. Those 2012 MBA graduates who headed into the consulting field received a mean base salary of $130,636, while others who went into the technology sector earned $118,050, according to the business school’s most recent employment report.

    The wage gap comes about partly because fewer women are heading into some of the more lucrative finance fields. For example, 16 percent of male students took jobs in private equity and leveraged-buyout firms, compared with just 5 percent of women, Sanghvi says. The top four industries that Stanford women went into in 2012 were information technology, management consulting, consumer products, and venture capital.

    “I think a part of the story of this generation of students is that they have a much larger playing field in terms of career choices,” Sanghvi says. “I don’t think the level of income in a job is necessarily the primary motivator for why someone makes an empowered choice to pursue a career.”

    That’s not to say that women at the school aren’t thinking long and hard about their salary offers and how to best negotiate them.

    Continued in article

    Jensen Comment
    This says very little about graduates wanting to become CPAs since Stanford does not offer a career track for taking the CPA examination. The few graduates who do seek to become auditors or tax accountants most likely were CPAs before entering Stanford's MBA program. After graduating they most likely will no longer seek to work for CPA firms as auditors and tax accountants.

    Bob Jensen's threads on the gender pay gap in academe ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#GenderSalaryDifferences


    "For Aspiring Forensic Accountants and Fraud Investigators," by Tracey Coenen, The Fraud Files Blog, March 24, 2013 ---
    http://www.sequenceinc.com/fraudfiles/2013/03/for-aspiring-forensic-accountants-and-fraud-investigators/

    Bob Jensen's threads on forensic accounting are at
    http://faculty.trinity.edu/rjensen/Fraud001c.htm#Forensic

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    "MBA Gender Pay Gap: An Industry Breakdown," by: Alison Damast, Bloomberg Business Week, January 7, 2013 ---
    http://www.businessweek.com/articles/2013-01-07/mba-gender-pay-gap-an-industry-breakdown

    Ross School (University of Michigan) Nearly Erases MBA Gender Pay Gap -(for graduates) ---
    http://www.businessweek.com/articles/2012-12-14/ross-school-nearly-erases-mba-gender-pay-gap

    At the University of Texas women MBAs beat out the men ---
    http://www.businessweek.com/articles/2012-12-12/mccombs-women-beat-mba-gender-salary-gap

    Jensen Comment
    This does not mean that there were no differences between majors. For example, women finance graduates earned about $6,500 less than men majoring in finance, but they may have been paid more than women in management and marketing. I do not know that this is the case, but as in the case of comparing inequality between nations, it's important to note that the degree of equality is not nearly as important as the level of poverty. For example, the Gini Coefficients of equality are about the same for Canada and North Korea, but the absolute differences in poverty are immense.

    Accounting firms probably do not hire many MBA graduates from Michigan since Michigan has a separate Masters of Accounting Program ---
    http://www.bus.umich.edu/Admissions/Macc/Whyross.htm
    It would surprise me if there were any gender differences in salary offers in this MAC program, although there may be some racial differences where top minority graduates have higher offers than whites.

    The one question about all this that I would raise is job location. At Trinity University when I was still teaching we sometimes placed a single graduate from our very small MS in Accounting graduating class at a higher salary in San Francisco or some other city having very high living costs.

    The ANOVA statistician in me questions gender comparisons across geographic cells having greatly varying living costs. For example the MBA woman landing a consulting job for $140,000 in San Francisco or Geneva really cannot compare her salary with the woman who gets $140,000 in Detroit. In Detroit some relatively nice houses are being given away free to people who will occupy them full time. The exact same house in San Francisco might sell for $845,000. So much for declaring that both women are being paid the same.

    It's also difficult to compare salary offers that are variable. For example, it's common to offer base salary plus commissions for majors in marketing and finance for stock brokers and other sales jobs.

    In the 1990s it would've also been difficult to compare some salary offers for graduates in finance and computer science. For example, I know about a Stanford Computer Science graduate who was paid minimum wage plus $1 million in stock options. I think this type of hiring declined when the 1990s technology bubble burst and FAS 126R went into effect. FAS 123R pretty much killed stock option compensation.

    Bob Jensen's threads on gender salary differences ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#GenderSalaryDifferences


    At the University of Texas MBA women graduates edged out men in terms of compensation offers
    At the University of Michigan female and male MBA graduates average about the same compensation offers
    Why are women MBA graduates from Stanford not faring as well as their male counterparts?

    "Why Stanford MBA Men Make So Much More Than Women?" by Alison Damast, Bloomberg Business Week, December 21, 2012 ---
    http://www.businessweek.com/articles/2012-12-21/why-stanford-mba-men-make-so-much-more-than-women

    The gender pay gap at Stanford’s Graduate School of Business has female graduates earning 79¢ on the male dollar, the widest discrepancy in earnings between men and women at any of the top 30 business schools, according to new research from Bloomberg Businessweek.

    That disparity may seem large, but it isn’t startling to many of the women in the Stanford Class of 2012, who say the figures largely indicate the wide range of career choices they are making.

    Take Shan Riku, who worked as a consultant at McKinsey before business school and is now working as head of new business development at Cookpad, Japan’s largest recipe-sharing website. Riku admits she took a pay cut in accepting the position but says she was more interested in taking on a role that would challenge her. It also didn’t hurt that Cookpad encourages families to cook and spend time together. “Many women at Stanford tend to make choices that are a little bit more focused on ‘how do I want to balance my life,’ rather than ‘how can I earn a lot of money,’” she says.

    Pulin Sanghvi, director of the career management center at Stanford’s business school, says most of the pay gap at his school can be “attributed to industry choice.” According to Sanghvi, women and men at Stanford who go into the consulting or Internet technology sectors tend to have average starting salaries that are close or equivalent in size. Those 2012 MBA graduates who headed into the consulting field received a mean base salary of $130,636, while others who went into the technology sector earned $118,050, according to the business school’s most recent employment report.

    The wage gap comes about partly because fewer women are heading into some of the more lucrative finance fields. For example, 16 percent of male students took jobs in private equity and leveraged-buyout firms, compared with just 5 percent of women, Sanghvi says. The top four industries that Stanford women went into in 2012 were information technology, management consulting, consumer products, and venture capital.

    “I think a part of the story of this generation of students is that they have a much larger playing field in terms of career choices,” Sanghvi says. “I don’t think the level of income in a job is necessarily the primary motivator for why someone makes an empowered choice to pursue a career.”

    That’s not to say that women at the school aren’t thinking long and hard about their salary offers and how to best negotiate them.

    Continued in article

    Jensen Comment
    This says very little about graduates wanting to become CPAs since Stanford does not offer a career track for taking the CPA examination. The few graduates who do seek to become auditors or tax accountants most likely were CPAs before entering Stanford's MBA program. After graduating they most likely will no longer seek to work for CPA firms as auditors and tax accountants.

    Bob Jensen's threads on the gender pay gap in academe ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#GenderSalaryDifferences


    Dumber Lawyers
    "Another Drop in LSAT Test-Takers," Inside Higher Ed, November 20, 2012 ---
    http://www.insidehighered.com/quicktakes/2012/11/20/another-drop-lsat-test-takers

    "Not a New Problem: How the State of the Legal Profession Has Been Secretly in Decline for Quite Some Time," by Marc Gans, SSRN, June 24, 2012 ---
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2173144

     My goal was to provide an in-depth analysis of the job market for new law graduates over time, as well as the state of the legal field as a whole. Using historical records, I reached the following results:

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    "Where the Fortune 500 CEOs Went to School:  These schools awarded at least 10 college and graduate degrees to America’s leading executives," by Menachem Wecker, US News, May 14, 2012 ---
    http://www.usnews.com/education/best-graduate-schools/top-business-schools/articles/2012/05/14/where-the-fortune-500-ceos-went-to-school

     

    Institution Total degrees Undergraduate degrees MBAs Other graduate degrees US News undergraduate rank US News business school rank
    Harvard 65 11 40 14 1 1
    Stanford 27 11 10 6 5 1
    Pennsylvania 24 7 13 4 5 3
    Columbia 18 3 4 11 4 8
    Michigan 14 6 5 3 28 13
    Notre Dame 14 10 1 3 19 25
    Virginia 14 4 4 6 25 13
    Cornell 13 8 3 2 15 16
    Dartmouth 12 9 3 0 11 9
    Indiana 11 5 6 0 75 23
    Northwestern 11 2 6 3 12 4
    Rutgers 11 5 3 3 68 63
    MIT 10 3 0 7 5 4

     

    Jensen Comment
    For years I've preached that students seek prestigious universities for much more than book learning. The top universities provide networking opportunities and alumni relations that probably exceed most anything students learn from the books. Of course, networking experiences are highly variable.

    But there also is a well-known problem of correlation versus causation going on here. There may be underlying causal factors such as the attributes of students who gain admission to prestigious schools that a subset of those students may rise to the top irrespective of where they graduate.

    If you annually track the backgrounds of CPAs admitted into the Big Four partnerships in the United States you will be surprised the proportion that graduated as accounting majors for Podunk College. Cream rising to the top is a fundamental attribute of molecular chemistry.

    But we cannot deny the fact that a degree from a prestigious university is a key that unlocks doors. This is especially the case when it comes to PhD graduates seeking tenure track positions. A Podunk College PhD generally does not stack up well with a doctorate from Harvard, Stanford, and Penn. There are exceptions of course, but these are rare in the Academy.


    Jensen Comment
    If there ever was BS about a BS this has to be the site ---
    http://www.collegemeasures.org/

    One thing I always warned my students about is that education is much more than a ticket to a job. Education is part and parcel to almost everything in life.

    And when looking at career alternatives, I always warned my students to pretty much ignore starting salaries when choosing a career or choosing from first-time job alternatives. Reasons are as follows:

    Lastly, when reading the charts and tables in the site below consider the aggregation and other weaknesses of the data. For example, accounting is mixed in with business studies. But the advantages and disadvantages of an accounting career are much, much different than those of marketing, management, finance, and other types of business careers. For example, I looked up the PhD starting salary for a "business" major in one major university. It was stated as $90,000. However, accounting PhD graduates at that particular university are more apt to be $150,000 or more. Plus there are summer stipends that add up to 20% more to starting salaries.

    And while we're at it, consider the starting salary of an accounting PhD. The highest salary offer may come from Harvard or Stanford, but the living costs in Cambridge or Palo Alto are possibly twice as much or more than the living costs in Ames, Iowa --- perhaps ten times as much in terms of house purchase and rental prices. And the odds of getting tenure are low at Harvard or Stanford such that considerations such as research opportunities should outweigh starting salary considerations.

    And now for the BS about a BS --- http://www.collegemeasures.org/

    "All About the Money:  What if lawmakers and students used starting salaries to evaluate colleges and their programs?" by Dan Berrett, Chronicle of Higher Education, September 18, 2012 ---
    http://chronicle.com/article/All-About-the-Money/134422/?cid=at&utm_source=at&utm_medium=en

    What is your college degree truly worth?

    That is the question that a new report seeks to answer. And it does so by distilling college into a number, expressed in dollars.

    "The Earning Power of Graduates From Tennessee's Colleges and Universities" is the latest effort to precisely quantify the value of a degree. It identifies the payoff that individual programs at specific colleges yield the first year after graduation. While limited to Tennessee, it will be followed by similar analyses in other states, and it marks the arrival of a new way of evaluating higher education that brings conversations about college productivity and performance to the program level.

    Due out this week, the report—by College Measures, a partnership of the American Institutes for Research and Matrix Knowledge, a consulting firm—is bound to spark debate about what it counts and omits, and to raise fears over how its findings will be used.

    The report has been praised by some analysts for merging data on education and employment in valuable ways and for producing revealing insights. For instance, in Tennessee, attending the flagship, in Knoxville, might not lead to a higher paycheck for new graduates than completing a community-college program, depending on the major a student chooses.

    The report also exposes simmering arguments in higher education: whether college is chiefly for personal economic gain or for serving the public good, whether teaching potential students about the costs and benefits of their college choices will further cement an already widespread consumerist ethos, and whether data on disparate outcomes by discipline will fuel more attacks on liberal-arts programs, whose graduates may not earn large salaries right after college but fare better later.

    Produced in collaboration with the Tennessee Higher Education Commission, the report was preceded by a Web site, which became public last month, with data for institutions in Arkansas. College Measures is also producing analyses for Colorado, Nevada, Texas, and Virginia.

    More states may follow suit. About half the states have the ability to link postsecondary academic records with labor data, according to a 2010 report by the State Higher Education Executive Officers. Few states have done so, says Travis J. Reindl, a program director for the National Governors Association, but interest is growing in the types of analyses that College Measures performs.

    "Governors care very much about job creation, and they care very much about meeting work-force needs. Both of these things rely on good information," says Mr. Reindl. "This is an issue that's clearly starting to percolate because it all goes back to jobs, job, jobs."

    Salary Matters

    Previous studies by the Georgetown University Center on Education and the Workforce, among others, have analyzed wage differences by major. The Tennessee report breaks new ground, says Jeff Strohl, director of research at the Georgetown center, by marshaling data from disparate state agencies to identify the average first-year wages of the state's college graduates between 2006 and 2010, and linking those data to the majors they pursued and institutions they attended.

    Continued in article

    Jensen Comment
    If there ever was BS about a BS or a PhD this has to be the site ---

    http://www.collegemeasures.org/

    One thing I always warned my students about is that education is much more than a ticket to a job. Education is part and parcel to almost everything in life.

    And when looking at career alternatives, I always warned my students to pretty much ignore starting salaries when choosing a career or choosing from first-time job alternatives. Reasons are as follows:

    Lastly, when reading the charts and tables in the site below consider the aggregation and other weaknesses of the data. For example, accounting is mixed in with business studies. But the advantages and disadvantages of an accounting career are much, much different than those of marketing, management, finance, and other types of business careers. For example, I looked up the PhD starting salary for a "business" major in one major university. It was stated as $90,000. However, accounting PhD graduates at that particular university are more apt to be $150,000 or more. Plus there are summer stipends that add up to 20% more to starting salaries.

    And while we're at it, consider the starting salary of an accounting PhD. The highest salary offer may come from Harvard or Stanford, but the living costs in Cambridge or Palo Alto are possibly twice as much or more than the living costs in Ames, Iowa --- perhaps ten times as much in terms of house purchase and rental prices. And the odds of getting tenure are low at Harvard or Stanford such that considerations such as research opportunities should outweigh starting salary considerations.

    And now for the BS about a BS --- http://www.collegemeasures.org/

    "All About the Money:  What if lawmakers and students used starting salaries to evaluate colleges and their programs?" by Dan Berrett, Chronicle of Higher Education, September 18, 2012 ---
    http://chronicle.com/article/All-About-the-Money/134422/?cid=at&utm_source=at&utm_medium=en

    What is your college degree truly worth?

    That is the question that a new report seeks to answer. And it does so by distilling college into a number, expressed in dollars.

    "The Earning Power of Graduates From Tennessee's Colleges and Universities" is the latest effort to precisely quantify the value of a degree. It identifies the payoff that individual programs at specific colleges yield the first year after graduation. While limited to Tennessee, it will be followed by similar analyses in other states, and it marks the arrival of a new way of evaluating higher education that brings conversations about college productivity and performance to the program level.

    Due out this week, the report—by College Measures, a partnership of the American Institutes for Research and Matrix Knowledge, a consulting firm—is bound to spark debate about what it counts and omits, and to raise fears over how its findings will be used.

    The report has been praised by some analysts for merging data on education and employment in valuable ways and for producing revealing insights. For instance, in Tennessee, attending the flagship, in Knoxville, might not lead to a higher paycheck for new graduates than completing a community-college program, depending on the major a student chooses.

    The report also exposes simmering arguments in higher education: whether college is chiefly for personal economic gain or for serving the public good, whether teaching potential students about the costs and benefits of their college choices will further cement an already widespread consumerist ethos, and whether data on disparate outcomes by discipline will fuel more attacks on liberal-arts programs, whose graduates may not earn large salaries right after college but fare better later.

    Produced in collaboration with the Tennessee Higher Education Commission, the report was preceded by a Web site, which became public last month, with data for institutions in Arkansas. College Measures is also producing analyses for Colorado, Nevada, Texas, and Virginia.

    More states may follow suit. About half the states have the ability to link postsecondary academic records with labor data, according to a 2010 report by the State Higher Education Executive Officers. Few states have done so, says Travis J. Reindl, a program director for the National Governors Association, but interest is growing in the types of analyses that College Measures performs.

    "Governors care very much about job creation, and they care very much about meeting work-force needs. Both of these things rely on good information," says Mr. Reindl. "This is an issue that's clearly starting to percolate because it all goes back to jobs, job, jobs."

    Salary Matters

    Previous studies by the Georgetown University Center on Education and the Workforce, among others, have analyzed wage differences by major. The Tennessee report breaks new ground, says Jeff Strohl, director of research at the Georgetown center, by marshaling data from disparate state agencies to identify the average first-year wages of the state's college graduates between 2006 and 2010, and linking those data to the majors they pursued and institutions they attended.

    Continued in article

    From the Chronicle of Higher Education
    Look up salary data for your university ---
    http://chronicle.com/article/faculty-salaries-data-2012/131431#id=144050


    Slide Show From Bloomberg Business Week, November 2012
    Top B-Schools With the Highest-Paid MBAs --- http://images.businessweek.com/slideshows/2012-11-01/top-b-schools-with-the-highest-paid-mbas

    Jensen Comment
    This is one of those reports where it pays to look at the variance and kurtosis as well as a measure of central tendency (mean or median).

    Also it's not clear how variable compensation (sales commissions and bonuses) are factored in with fixed portions of salaries. For example, many of the best entry-level jobs on Wall Street are variable, performance-based compensation jobs.

    And how are benefits factored into the study?
    For example, some employees who travel most of the time don't make big sacrifices for personal housing. I know one, for example, who uses her parent's address for "home" since she's almost never home. In reality, she lives most of the year in luxury hotels at the expense of her employer and dines in the finest restaurants. Is this added "compensation?"

    And note that if your NYC employer sends you to London or Los Angeles for a long-term consulting engagement, your luxury hotel bill may be paid for seven days a week even if you only work five days a week. This is because paying taxi and travel expenses to bring you back to NYC every week end is more expensive than paying your luxury hotel bill for those days when your not on the job.

     

     

    Best and Worst 2012 MBA Job Placement - Job Offers Abundant, for Most - Business Week
    http://images.businessweek.com/slideshows/2012-11-01/best-and-worst-2012-mba-job-placemen

    Jensen Comment
    Placement data can be somewhat misleading, especially for very small programs. For example, before Trinity University dropped its MBA program a significant proportion of the graduates were full-time military employees. At the time San Antonio's major employers were five military bases, two of which like Lackland and Kelly were enormous, although many of our MBA students were medical military from the Brooke Army Hospital. But placement of other graduates was really problematic. Also the MBA program did not coincide with Trinity's goal of having only full-time students in both undergraduate and graduate programs. Enrollments and placements of full-time MBA students were weak, and the MBA program was dropped. Later a MS program in accountancy was added after Texas passed the 150-credit rule.

    The above Bloomberg Business Week link has a somewhat dubious advertisement from Thunderbird. In that advertisement, Thunderbird rightly claims to be the Number 1 School for Global Business in various international-specialty rankings ---
    http://www.thunderbird.edu/about-thunderbird/rankings
    But Thunderbird does not even make the Top 30 in terms of the above MBA placement rankings where Thunderbird advertises itself as being Number 1.

     

    Bob Jensen's threads on business school rankings by Bloomberg Business Week, US News, the WSJ, The Economist, Financial Times, etc. ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings

     


    Every year, my students at Stanford Graduate School of Business who want to work for startups ask me for advice on where they should work. I disappoint them by recommending that they not to go work for a startup at all.
    Andy Rachleff, "48 Hot Tech Companies To Build A Career,"Wealthfront, October 25, 2012 ---
    https://blog.wealthfront.com/hot-mid-size-silicon-valley-companies/

    Every year, my students at Stanford GSB who want to work for startups ask me for advice on where they should work.

    I disappoint them by recommending that they not to go work for a startup at all. I tell them three words I know it’s hard for them to hear: You’re not ready.

    I prefer to see them take their first jobs after graduation at midsized companies with momentum, not startups, because they are the companies most likely to be big successes.

    Why is success so important? You get more credit than you deserve for being part of a successful company, and less credit than you deserve for being part of an unsuccessful company. Success will help propel your career. At a fast-growing company, chances are good you’ll have a higher position two years after you join. At a slow-growth company, no matter how good a job you do, you won’t have the same opportunities to advance.

    When it comes time to leave the successful company, you’ll be able to write your own ticket. No one will remember if you were employee 20 or 120. Everyone wants to recruit or back people from successful companies because they know/think people carry the lessons of success with them.

    You also may gain something that’s even more valuable from that first job: insight. If you’re part of a company that’s the leader in a market for which you have a passion, you’re more likely to develop a unique insight that could lead to a great company of your own.

    Facebook’s Lesson

    Perhaps the best illustration of the way a successful company puts a halo over careers is Facebook. Back in 2006 and 2007, a handful of my students were considering job offers from what was then a mid-sized company with about $50 million in revenue. Some of my students were on the verge of rejecting those offers: Dreaming of startups, they believed that a job at a company already on a path to rapid growth would be boring.

    Some of them listened to my advice, took jobs at Facebook, and are now benefitting. They are now able to start their own ventures, become venture capitalists or take their pick of jobs at hot companies. They’re writing their own tickets.

    Facebook is a rarity, of course: its market capitalization is so large that even employees who joined fairly late in the game got big payouts. In most cases, joining a mid-sized company, even one with enough momentum to reach an IPO while you’re there, won’t make you rich.

    Making money is not the point for most of my students, anyway. They take my classes because they’re the kinds of people who want to make an impact on the world. Because they have that desire, and they’re impatient to fulfill it, some of them come away quite disappointed when I suggest to them that they ought to wait.

    But the odds are that your startup is going to fail. Why take that chance early in your career? If you’re willing to take three years to work for a company with momentum, then your experience at the midsize company will allow you to do something more amazing in the future. Not many people get multiple shots at starting a company, so why not put your best foot forward?

    By the way, if it hasn’t been obvious already, I don’t buy the adage that you should start a company when you’re very young, because that’s when you have the energy. Insight, not energy, is the key to success in technology and insight doesn’t arrive on a particular timetable.

    Why Mid-Size Companies?

    After we talk, I offer to give my students a spreadsheet of 45-50 companies, U.S.-based or with a strong presence here, that fit my description of an ideal company to work for. I compile this list each year by talking to about 10-15 venture capitalists at the premier venture firms.

    Now, I’m sharing my list with you, as a follow on to the posts we’ve written on our Startup Compensation Tool and How Do I Choose Where To Work?.

    All our advice on Silicon Valley careers is based on a simple idea: that your choice of company trumps everything else. It’s more important than your job title, your pay or your responsibilities.

    The companies we’ve listed have revenue between $20 and $300 million. They’re growing fast and appear likely to maintain their momentum for the foreseeable future. It’s important that your potential employer have enough momentum to keep growing rapidly until you decide to leave – probably after about three or four years if you want to assure yourself of the aforementioned halo.

    Why not a startup? Most startups fail. That means their risk/reward ratios don’t look good. That concept is important in investing, too: You want the highest possible return for the least amount of risk. We pay a lot of attention to risk/reward ratios at Wealthfront to build our clients’ portfolios; you should apply the same sort of thinking when it comes to your career.

    Why the upper limit of revenue? Above a certain company size, the lessons you learn are no longer applicable to the startup you eventually want to be part of. For example, if you join Facebook or Google today, you’ll spend most of your time learning how to take advantage of your company’s massive market position. Startups don’t have that problem so those lessons learned are not of much value. Company-building lessons tend to translate until around $300 million of revenue, though that is extremely subjective.

    What Happens Next?

    My students who put off their startup ambitions to join mid-size companies with momentum have been more successful than my students who choose to start their own companies directly after school. Their experiences at their first jobs helped them develop an expertise that placed them in high demand.

    After those first jobs, some of my former students have taken senior positions with hot startups. Others have founded companies, and had an easier time getting funded than they otherwise could have. They were smart: They took the time to make themselves ready for their startup careers. Now, those careers are taking off.

    Continued in article

    Jensen Comment
    The Stanford GSB does not have a program geared to becoming a CPA and places very few graduates in CPA firms. But Andy's advice about not going to work for a startup firm as an accountant applies to graduates of accounting programs. The best starting point for an accounting graduate is a large CPA firm as a rule or the IRS. Seek out the firms with the best training programs and those that provide benefits for passing the CPA examination. The largest CPA firms and the IRS generally have the best training programs. Also they usually have better opportunities for exposures to wider types of clients, clients who in turn often make job offers to the CPA firm employees that impress them the most. And both the large CPA firms and the IRS look good on a resume.

    Having been an FBI agent also looks good on a resume, but the FBI generally does not hire inexperienced accountants fresh out of college except possibly those graduating with a combination of high IT and accounting credentials. But the FBI now hires more experienced accountants than lawyers.

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    The Complete 2012 Business Schools Ranking
    Bloomberg Business Week
    , November 2012 ---
    http://www.businessweek.com/articles/2012-11-15/the-complete-2012-business-schools-ranking

    There are so many business school rankings by Bloomberg Business Week that it boggles my mind, to say nothing of the other media rankings of business schools by U.S. News, The Wall Street Journal, Financial Times, The Economist, etc.

    The above link is one of the more interesting rankings because it vividly illustrates what I call the "Vegetable Problem of Aggregation" in the context of accounting number aggregations at
    http://faculty.trinity.edu/rjensen/FraudConclusion.htm#BadNews

    Take a look at how your favorite greens stack up in the chart below:

    Green (Raw - per 100 g serving) Vitamin A Vitamin C Fiber Folate Calories
    Arugula 2,373 IU 15 mg 1 g 97 mcg 25
    Chicory 4,000 IU 24 mg 4 g 109.5 mg 23
    Collards 3,824 IU 35.3 mg 3 g 166 mcg 30
    Endive 2,050 IU 6.5 mg 3 g 142 mcg 17
    Kale 8,900 IU 120 mg 2 g 29.3 mcg 50
    Butterhead (includes Boston and Bibb) 970 IU 8 mg 1 g 73.3 mcg 13
    Romaine 2,600 IU 24 mg 1 g 135.7 mcg 14
    Iceberg 330 IU 3.9 mg 1 g 56 mcg 12
    Loose leaf (red, green) 1,900 IU 18 mg 1 g 49.8 mcg 18
    Radicchio 27 IU 8 mg 0 g 60 mcg 23
    Spinach 6,715 IU 28.1 mg 2 g 194.4 mcg 22
    Source: U.S. Department of Agriculture, 1999

    Also see
    Examination of Front-of-Package Nutrition Rating Systems and Symbols --- http://iom.edu/Activities/Nutrition/NutritionSymbols.aspx

    Systemic Problem:  All Aggregations Are Arbitrary
    Systemic Problem:  All Aggregations Combine Different Measurements With Varying Accuracies
    Systemic Problem:  All Aggregations Leave Out Important Components
    Systemic Problem:  All Aggregations Ignore Complex & Synergistic Interactions of Value and Risk
    Systemic Problem:  Disaggregating of Value or Cost is Generally Arbitrary

    While looking at the following diet guides, it dawned on me that perhaps accounting reports should be more like food labeling and comparison tables/charts rather than the traditional bottom line reporting.  The problem with accounting is bottom-line reporting of selective and ill-conceived aggregates such as earnings-per-share or debt/equity.  Suppose spinach has an e.p.s. of 4.67 in comparison to 5.62 for Kale.  The aggregations all depend upon how components are measured, how they are weighted (e.g., Vitamin A versus Folate weighting coefficients), and what components are included/excluded (e.g., Vitamin A is included below, but Vitamin B components are ignored).  The same is true of e.p.s. in financial reporting.   The "bottom line" depends in a complex way upon how components are measured and weighted as well as upon what components are included/excluded.  

    In a similar manner, accounting aggregations all depend upon how components are measured, weighted, and included/excluded.  Cash is measured with great accuracy whereas goodwill impairment is highly inaccurate, thereby causing greater error range when cash and goodwill are added together in balance sheets.   Similarly, in the "New Economy" where intangible intellectual capital is soaring in value relative to traditional tangible assets, the intangibles left off the balance sheet may be far more important that the combined value of everything included in the balance sheet.

    An even larger problem is that the value and risk of diet components depend heavily upon complex and synergistic relationships.  For example, research shows that after the body hits its maximum threshold of Vitamin C, it simply throws off the excess.  Kale far surpasses endive in Vitamin C content, but this is irrelevant in a diet overflowing in Vitamin C from other sources such as citrus fruits.  Some persons may be allergic to components that are of greater value to other persons.

    In a similar manner accounting valuations are greatly complicated by synergistic complexities.  A patent in the hands of one company may be all but useless in the hands of another company.  Indeed some companies buy up patents just to squelch newer technology that threatens existing products.  Similarly, financial risk is not a fixed thing.  It is a very dynamic threat that is based upon all sorts of contingencies such as world events and media coverage that can interact heavily with the level of risk at any point in time.

    For similar reasons disaggregating of values/costs is generally arbitrary.  Firstly there is the famous problem of joint production cost allocation arbitrariness noted in the early writings of John Stuart Mill (The Principles of Political Economy) and Alfred Marshall (The Principles of Economics).  Then there is the problem of synergistic complexities noted above.  For example, suppose spinach sells for $5 per bunch.  Any attempt to disaggregate that $5 into additive values of nutrients will be arbitrary, because nutrients in combination may be worth more or less than the sum of disaggregated values of each nutrient.  This gives rise to the systemic problem of consolidation goodwill when two or more companies are combined into one whole.

    Bob Jensen's threads on media rankings of colleges and universities ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings


    "How to Reduce America's Talent Deficit:  At Microsoft, we have more than 6,000 open jobs in the U.S. Some 3,400 of the positions are for engineers. Schools aren't producing graduates with the skills needed in the marketplace," by Brad Smith (executive vice president and general counsel of Microsoft) , The Wall Street Journal, October 18, 2012 ---
    http://professional.wsj.com/article/SB10000872396390443675404578058163640361032.html?mg=reno64-wsj#mod=djemEditorialPage_t

    Each month, when the government publishes the national jobs report, Americans pick over small movements in the headline rate of unemployment. In doing so, they largely miss a crucial aspect of the U.S. jobs crisis.

    Many American companies are now creating more jobs for which they can't find qualified applicants than jobs for which they can. Thus the economy faces a paradox: Too many Americans can't find jobs, yet too many companies can't fill open positions. There are too few Americans with the necessary science, technology, engineering and math skills to meet companies' demand.

    At Microsoft, MSFT -0.32% we have more than 6,000 open jobs in the U.S., a 15% increase from a year ago. Some 3,400 of these positions are for engineers, software developers and researchers (a 34% increase from last year).

    Other companies face the same problem. As the national unemployment rate this summer exceeded 8% for the third consecutive year, the rate in computer-related occupations was only 3.4%. Even outside of the technology sector, nearly every firm is in some way a software company given the importance of automation. So America's skills shortage affects businesses in every industry and region.

    Unfortunately the problem is likely to get even worse. According to the U.S. Bureau of Labor Statistics, the U.S. this year will create some 120,000 new jobs requiring at least a bachelor's degree in computer science. But all of our colleges and universities put together will produce only 40,000 new bachelor's degrees in computer science. The BLS forecasts that this demand for new jobs will persist every year this decade. And when one adds the high multiplier effect of engineering jobs—each one filled typically leads to five additional jobs in the economy, according to Berkeley economist Enrico Moretti—it is clear that this problem touches all of us.

    If we don't increase the number of Americans with necessary skills, jobs will increasingly migrate abroad, creating even bigger challenges for our long-term competitiveness and economic growth. This is a personal crisis for young people facing an increasing opportunity divide.

    America has more than 30,000 public high schools and 12,000 private ones, yet last year only 2,100 of these schools offered the advanced placement course in computer science. Four decades after Bill Gates and Steve Jobs were teenagers, we still live in a country where you have to be one of the fortunate few to take computer science in high school.

    Last month Microsoft laid out a proposal for how to begin addressing the problem. It couples long-term improvements in American education with short-term, skills-focused immigration reform. Done right, immigration reforms can even help fund education improvements, ensuring that more Americans gain the skills they need.

    We need a national "Race to the Future" akin to the Obama administration's Race to the Top grant program (which Mitt Romney praises). It would provide new funding and incentives for states to:

    • Strengthen science, technology, engineering and math education in grade school by recruiting and training teachers and implementing the Common Core State Standards and the Next Generation Science Standards.

    • Broaden access to computer science in high schools.

    • Help colleges and universities raise their graduation rates.

    • Expand colleges' capacity to produce more degrees in science, technology, engineering and math, with a particular focus on computer science.

    On the immigration front, Congress should create a new, supplemental category with 20,000 annual visas for people with science and technology skills that are in short supply. Lawmakers should also take advantage of existing, unused green cards by allocating 20,000 for workers with these vital skills.

    It would be fair and feasible to make these supplemental steps more expensive, for example by charging $10,000 for the new high-skill visas and $15,000 for the new green cards. (Large companies pay about $2,300 for each such H-1B petition today.) This would raise $5 billion over the next decade that the federal government could provide to states committed to smart reforms for cultivating important job skills.

    Microsoft is convinced that these initiatives could earn bipartisan support, but lawmakers need to summon the will to act. We can't expect to build the economy of the future with only the jobs and ideas of the past.

    Jensen Comment
    In spite of the tone of the above article there are a number of things to keep in mind.

    The Sad State of North American Accounting Ph.D. Programs

    Accounting at a Tipping Point (Slide Show)
    Former AAA President Sue Haka
    April 18, 2009
    http://commons.aaahq.org/files/20bbec721b/Midwest_region_meeting_slides-04-17-09.pptm

    Bob Jensen's threads on the Sad State of North American Ph.D. Programs ---
    http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms

    Bob Jensen's threads on career opportunities are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    AccountingWeb's 50-State Report on College and Career Readiness ---
    http://www.accountingweb.com/article/50-state-report-college-and-career-readiness/219874?source=education

    With all fifty states and the District of Columbia (DC) having adopted college- and career-ready standards in English and mathematics, Achieve's seventh annual Closing the Expectations Gap report (released September 13) shows how all states are aligning those standards with policies to send clear signals to students about what it means to be academically prepared for college and careers after high school graduation.

    For the first time, the report also details not only states' policy progress on the college- and career-ready agenda, but also their efforts to implement those policies, since only faithful implementation can improve student achievement. The report was released during the opening session of Achieve's eighth annual American Diploma Project Leadership Team Meeting in Alexandria, Virgina, which brought together nearly 300 education leaders in cross-sector teams from thirty-four states.
     
    "With all states adopting college- and career-ready standards, they have now taken the first step toward reorienting the mission of their K-12 systems to reflect the demands of the twenty-first century," said Mike Cohen, Achieve's president, to a crowd of education leaders from across the country. "As this report shows, various states are making some movement toward fulfilling the college- and career-ready agenda by putting new policies in place to support this new mission, but there is still much room for progress to be made."
     
    Achieve conducts an annual policy survey that asks all fifty states and DC whether they have adopted standards, graduation requirements, assessments, and accountability systems aligned to the expectations of two- and four-year colleges and employers. The national survey of state education leaders has measured the same areas of reform each year since the National Governors Association and Achieve cosponsored the National Education Summit in 2005. This year's survey reveals the following results:
     
    Standards:
     
    Graduation Requirements:
     
    Assessments:
     
    Accountability:
     
    "States and the larger education community must make sure educators have access to resources like quality instructional materials and effective professional development," Cohen urged. "Success is going to take the combined effort of all education stakeholders - students, teachers, principals, K-12 leaders, school board members, superintendents, administrators, policymakers, postsecondary education leaders, the business community, and parents."

    Continued in article


    "LSAT Scores at Top Schools Are Dropping Like Flies," by Vivia Chen, The Careerist.com, September 7, 2012 ---
    http://thecareerist.typepad.com/thecareerist/2012/09/law-school-applicants-dumbing-down.html 

    If you think you're a pretty smart cookie—but not spectacularly so—this might be the year that you can squeeze into a better law school than you thought possible.

    The reason is simple: There are fewer applicants, which results in more opportunities at more prestigious law schools. You've probably heard about that 25 percent drop in law school applications in the past three years or so, but did you know that the top 14 law schools will be forced to accept students who are below the top 2 percent of their LSATs? (Sobs, please.)

    Here's the nitty gritty from Blueprint, an LSAT tutoring company, based on statistics from the Law School Admissions Council, Inc.:

    We see that in 2010/2011, there were 3,430 students in the top 2 percent on the LSAT (171+), which is at or near the median LSAT score for most elite (top 14 or T14 as determined by U.S. News & World Report rankings) law schools. That number drops to 2,600 in 2011/2012, resulting in nearly 1,000 fewer top percentile scores from which law schools can recruit.

    So what does this all mean? Naturally, Blueprint is telling people to go for it—since it's in the LSAT tutoring biz. Here's how it explains the trickle-down effect of lowered law school admissions standards:

    With fewer applicants at the top for the same number of slots, the entire admissions game is going to undergo a large shift. Students traditionally just outside the T14 based on their numbers will find themselves admitted, or on waitlists. As they jump at the opportunity to mortgage their future for a top school . . . their slots in T20 schools will open up for those below them, and so on.

    LSAT scores more than any other aspect of the application determines acceptance, notes Blueprint: "LSAT accounts for up to 60 percent of the admission decision."

    Blueprint also says that applicants are too pessimistic about the cost of law school tuition and their prospects for getting into law schools. It conducted a poll of of nearly 600 prospective law students, in conjunction with Above the Law. Their finding: "The majority of prelaw students are actually overestimating the cost of attending law school." It also finds that more than a quarter of the students (27 percent) think it's harder to gain admission than it actually is.

    So is law school easier to get into now? Perhaps. But is that a good enough reason to dedicate yourself to three years of schooling for a profession you might not like (assuming you can get a job that requires a legal degree)?

    Uh, I don't think so.

    Jensen Question
    So where are those top prospects going who decide not to go to law school?

    Answer
    I really don't know, but if they were thinking about law school as undergraduates not many of them probably did not earn enough undergraduate credits for  accounting, architecture, engineering, medical school, vet school, and science. Some may be applying for government work. Others may be applying for doctoral programs in humanities. Who knows?

    A goodly number of them may instead be applying to MBA programs in prestigious universities. I'll bet that's it!

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

     


    "Why an MBA Is Not Always the Right Choice," by Rose Martinelli , Bloomberg Business Week, April 4, 2012 ---
    http://www.businessweek.com/articles/2012-04-04/why-an-mba-is-not-always-the-right-choice

    A guest post from Rose Martinelli, formerly the longtime admissions director at the University of Chicago’s Booth School of Business, where she wrote a popular admissions blog, The Rose Report.

    My last two posts focused on knowing yourself, making sense of all the pieces, and sharing what you learned with your circle of supporters. Now it’s time to focus on evaluating educational options by defining two of the most common academic pathways—subject-focused master’s degrees and MBA degree programs.

    Subject-focused master’s degrees are typically one-year academic programs that focus on a single topic in great detail, with application of these concepts focused in functional areas. Programmatic features vary by school and program, so make sure to do your homework, especially if particular programs or career support are among your priorities.

    MBA programs, on the other hand, are typically two-year programs, although they are now offered in one-year or accelerated formats. These “professional” programs focus on developing the fundamental tools of resource management (accounting, finance, operations, statistics, marketing, human resources, economics, and so forth).

    The vast majority of MBA programs require core classes, with the opportunity to pursue majors or concentrations in specific areas of study. The value of MBA programs can be found through the breadth of exposure from academic options and co-curricular activities to professional outcomes. Offered in full-time, part-time, and executive formats, this degree can be taken at various stages in your professional development.

    Which type of program is right for you? While there are no right or wrong answers here, I would recommend that your choice be based upon your undergraduate education, prior work experience, and future career goals.

    If you do not have an undergraduate business degree, the MBA may be a good option because of its focus on the fundamentals of business and experiential opportunities, as well as the breadth of career support available. Even students who have pursued economics majors or who have done consulting can benefit from the MBA degree if one of the driving reasons for pursuing education is the chance to explore and experiment.

    If you have an undergraduate business degree and want additional depth in a particular area, the subject-oriented masters degree may be ideal. Typically, these are smaller programs that provide focused instruction in that area of study. While another option for business undergraduates may be to pursue an MBA, selecting a school with a flexible core curriculum will be important if you do not want to repeat prior coursework. We’ll talk more about that in future posts.

    If you are just completing your undergraduate degree and wish to pursue additional education in order to prepare you for your first career step, a subject-oriented masters degree may be just the right choice. Over the past several years, there has been an expansion in these programs, largely fueled by the lack of good employment opportunities for college graduates, as well as the limited number of MBA programs that admit students without work experience.

    Continued in article

    Jensen Comment

    In 1982 when I joined the faculty at Trinity University I taught mostly in Trinity's small MBA program which was one of the three surviving masters programs that existed after 20+ masters programs had already been dropped. Interestingly Trinity dropped most of its masters programs after enormous gifts to its endowment made it possible to increase the competitive prestige of its undergraduate programs. Trinity now ranks extremely high in the nation in terms of endowment per student.

    But in the 1980s our MBA program was very small and most of my classes had less than ten students, many of whom were military officers stationed at the six major army and air force bases in San Antonio. We did a market study and discovered what we already knew --- San Antonio was just not a good city for placements of MBA graduates since it had so little business sector industry. And our MBA program just did not have a reputation to compete with MBA graduates of the University of Texas, Texas A&M, Texas Tech, and SMU.

    And so we dropped the MBA program. Some years later when Texas adopted the 150-hour rule to take the CPA exam in Texas, we installed a new one-year masters program that mostly served our own graduating accounting students. We prospered with our small masters program in accounting mostly because the then Big Five in San Antonio took a goodly share of our graduating masters students in accounting. Houston and Dallas Big Five CPA firms picked up most of the other graduates.

    In other words we could place a goodly share of our masters students in accounting locally or in nearby Dallas and Houston. This never was the case for our MBA program.

     


    "Top B-School Stories of 2011:  2011 brought good news on the MBA job front, with unconventional careers more popular than ever. Plagiarism and cheating marred an otherwise-upbeat year," by Alison Damast and Erin Zlomek, Business Week, December 28, 2011 ---
    http://www.businessweek.com/business-schools/top-bschool-stories-of-2011-12282011.html

     

    Graduates Who Are Happy to Land Minimum Wage Careers
    "Little-Known (usually unaccredited) Colleges Exploit Visa Loopholes to Make Millions Off Foreign Students," by Tom Bartlett, Karin Fischer, and Josh Keller, Chronicle of Higher Education, March 20, 2011 ---
    http://chronicle.com/article/Little-Known-Colleges-Make/126822/

    Bob Jensen's threads on for-profit colleges working in the gray zone of fraud ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#ForProfitFraud

    Bob Jensen's threads on diploma mills ---
    http://faculty.trinity.edu/rjensen/FraudReporting.htm#DiplomaMill


    "Execs battle skills gap (including accounting) in hiring despite high unemployment Execs battle skills gap in hiring despite high unemployment," by Ken Tyscic, CGMA Magazine, July 26, 2012 --- Click Here
    http://www.cgma.org/Magazine/News/Pages/20125850.aspx?cm_mmc=smartbrief-_-30Jul12-_-CPALD-_-skillsgap&utm_source=smartbrief&utm_medium=30Jul12&utm_term=CPALD&utm_content=

    For the past six years, VASCO Data Security has dealt with a chronic problem: It hasn’t been able to easily recruit qualified workers for its software and internet security operations in Europe. And the plight hasn’t gotten easier – even as a global economic crisis has led to high unemployment throughout the continent.

    “It seems like in Brussels and in Zurich, both, we have a hard time when a spot opens up, filling it,” VASCO CFO Gary Robisch said. “A lot of times we have to settle for somebody that doesn’t exactly match the qualifications that we want.”

    The economics don’t seem to make sense. High unemployment, one would presume, would make it easier to fill jobs. The 17-country euro currency bloc hit a record in May when unemployment rose to 11.1%, while the rate across the EU was 10.1%, according to Eurostat, the EU’s statistics office. US unemployment has hovered between 8.1% and 8.3% for the past six months.

    Yet employers worldwide are still struggling to find workers with the skills to fill a wide variety of jobs. The situation is fuelling a human resources conundrum as employers ponder whether they should hold out and pony up for candidates with key skills or look to on-the-job training for promising candidates.

    Companies report difficulty locating IT professionals, engineers, accountants and specialised workers such as tugboat captains and MRI technicians. The conundrum is particularly glaring in pockets of relative prosperity, as VASCO is learning; the unemployment rates in Belgium and Switzerland are lower than European averages. A similar scenario has emerged in the United States, where companies have been clamouring to grow after years of cuts.

    “It just astounds me,” said Tom Kennedy, vice president and CFO of marine construction and environmental remediation company J.F. Brennan, which is having trouble recruiting a safety director, tugboat pilots and project manager-level engineers who are willing to travel for a company that does business in 18 US states.

    “After doing this for 35 years, I’ve never seen it like this,” Kennedy said. “You could run an ad any place [in years past] and get 30 or 40 applicants. Now you get five to 10.”

    The American Institute of CPAs’ Business and Industry Economic Outlook Survey for the second quarter of 2012 demonstrated the recruitment difficulties that management accountants are facing. Half of the 1,250 respondents said they have had difficulty filling open positions because their organisations haven’t been able to find individuals with the appropriate qualifications.

    Worldwide problem

    Other reports indicate a similar problem worldwide. In the PwC Global CEO survey for 2012, 43% of global respondents said that, in general, it has become more difficult to hire workers in their industry. Just 12% said it has become easier to hire. In addition, 29% of CEOs said they were unable to pursue a market opportunity because of talent constraints.

    Continued in article

     


    Job and Career Search Helper Site
    O*Net OnLine --- http://www.onetonline.org/

    Yahoo Education ranks "hot careers" through 2018 and beyond.
    Accountants/audits get top billing, which is probably the first time we've ever been called "hot."
    http://education.yahoo.net/articles/hot_careers_through_2018.htm

    Deloitte University --- http://careers.deloitte.com/united-states/students/csc_general.aspx?CountryContentID=16027

    "Business Degrees Skyrocket in Popularity in Asia," FINS Asia-Pacific, October 7, 2011 --- Click Here
    http://asia-jobs.fins.com/Articles/SBB0001424053111903285704576560832111849732/Business-Degrees-Skyrocket-in-Popularity-in-Asia

    Accounting Careers are Hot at Rank 2 According to College Board
    "Hottest Careers for College Graduates:  Experts Predict Where the Jobs Will Be in 2018," College Board, December 30, 2010 ---
    http://www.collegeboard.com/student/csearch/majors_careers/236.html

    Government economists estimate which occupations will have the most job openings between 2008 and 2018. Openings occur because new jobs are created and because workers retire or leave the field for other reasons.

    Check out these top 10 lists of occupations, sorted by the level of education typically required:

     

    Occupations with the Most Job Openings: Graduate Degree


     
    Occupation Total Job Openings 2008–2018
    Postsecondary teachers 553,000
    Doctors and surgeons 261,000
    Lawyers 240,000
    Clergy 218,000
    Pharmacists 106,000
    Educational, vocational, and school counselors 94,000
    Physical therapists 79,000
    Medical scientists, except epidemiologists 66,000
    Mental health and substance abuse social workers 61,000
    Instructional coordinators 61,000

     

    Occupations with the Most Job Openings: Bachelor's Degree


     
    Occupation Total Job Openings 2008–2018
    Elementary school teachers, except special education 597,000
    Accountants and auditors 498,000
    Secondary school teachers, except special and vocational education 412,000
    Middle school teachers, except special and vocational education 251,000
    Computer systems analysts 223,000
    Computer software engineers, applications 218,000
    Network systems and data communications analysts 208,000
    Computer software engineers, systems software 153,000
    Construction managers 138,000
    Market research analysts 137,000

     

    Occupations with the Most Jobs Openings:  Associate's Degree or Postsecondary Vocational Award


     
    Occupation Total Job Openings 2008–2018
    Registered nurses 1,039,000
    Nursing aides, orderlies, and attendants 422,000
    Licensed practical and licensed vocational nurses 391,000
    Computer support specialists 235,000
    Hairdressers, hairstylists, and cosmetologists 220,000
    Automotive service technicians and mechanics 182,000
    Preschool teachers, except special education 178,000
    Insurance sales agents 153,000
    Heating, air conditioning, and refrigeration technicians 136,000
    Real estate sales agents 128,000

    Source: U.S. Bureau of Labor Statistics

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    STEM (Science, Technology, Engineering, and Mathematics) --- http://en.wikipedia.org/wiki/STEM_fields

    "Re-Engineering Engineering Education to Retain Students," by Josh Fischman, Chronicle of Higher Education, February 19, 2012 ---
    http://chronicle.com/blogs/percolator/re-engineering-engineering-education-to-retain-students/28745?sid=wc&utm_source=wc&utm_medium=en

    Vancouver, British Columbia—Alarmed by the tendency of engineering programs to hemorrhage undergraduates, at a time when the White House has called for an additional million degrees in science, technology, engineering and math fieldsknown as STEM—education researchers here at the annual meeting of the American Association for the Advancement of Science proposed ways to improve the numbers. At a symposium on engineering education, one group outlined a broad revamping of curriculum, while another proposed more modest changes to pedagogy.

    The re-evaluation of curriculum is an effort called Deconstructing Engineering Education Programs. The project is led by Ilene Busch-Vishniac, the provost of McMaster University in Ontario and a mechanical engineer, and involves faculty from nine universities, including large public institutions like the University of Washington and small private ones like Smith College.

    Patricia Campbell, a collaborator on the project who leads an education-consulting firm in Groton, Mass., said that the time to get an engineering degree was a major reason that undergraduates dropped the major. “We call these four-year schools,” she said. “But 64 percent of STEM undergraduates complete their degrees in six years.” In engineering, she continued, that was largely due to two factors: a proliferation of courses, called “topic creep,” and rigid chains of prerequisite courses that students had to follow to move on to higher courses.

    Matthew Ohland, an associate professor of engineering education at Purdue University, added that the rigid structure not only prevented students from getting out of these programs with a degree, but it also kept potential students from migrating in. For example, he said, an industrial-engineering program might insist its students take a particular economics course to fulfill the program’s general-education requirements. But sophomores and juniors might have already taken a related but different econ course. To join the program, they would have to retake economics, a strong disincentive.

    Ms. Campbell (who was formerly a professor at Georgia State University) and her colleagues attempted to streamline this system, focusing on mechanical engineering. At nine schools, they identified mechanical engineering courses that covered 2,149 topics. But after closely looking at the coursework, they found a number of similar topics with different names, and narrowed the list of unique topics to 833. Ultimately they grouped the courses on those topics into 12 clusters, each of which contained chains of classes focused around closely related topics, and required few courses from another cluster. The clusters covered all 833 topics, and instructional times ranged from 52 to 115 hours, with an average length of 91 hours. That corresponds, roughly, to four hours of course time each week for one semester on the low end or one year on the high end.

    That means, Ms. Campbell said, that a mechanical-engineering student could cover all the required topics, but do so in four years, by taking three clusters each year.

    It would also, she claimed, meet the standards of the Accreditation Board for Engineering and Technology, because it includes everything that accredited engineering programs do. Mr. Ohland, who works as an evaluator for the board, said the accreditor is open to new approaches like these, although he acknowledged there were many of what he called “horror stories” about the accreditor being very traditional and resistant to change. “If you do something too wild, you have to convince [the board] that it won’t hurt students.”

    No institution has adopted the cluster formulation. Ms. Campbell said that faculty members were leery of the new course formulations, which grouped topics that they usually taught with other topics they did not. The solution, she said, was team-teaching of a course, but that’s something that pushes many professors beyond their comfort levels.

    A less-radical approach would be to improve teaching techniques in existing courses, said another symposium participant, Susan S. Metz, executive director of the Lore-El Center for Women in Engineering and Science at Stevens Institute of Technology in Hoboken, N.J. She leads the Engage project, a consortium of engineering schools at 30 institutions, supported by the National Science Foundation, to identify best practices in teaching.

    Continued in article

    Jensen Comment
    In accountancy we face somewhat similar problems in that even in four-year degree programs accounting majors are required to take more courses in their major than most other majors on campus, including majors in economics, finance, marketing, and management. To that we now add a fifth year of courses required to sit for the CPA examination.

    But in accountancy we face a different job market than engineers. There are no shortages of top accounting majors to meet the available entry level jobs in CPA firms, corporations, and government agencies in most states. There is a shortage of accounting PhD graduates, but these shortages are not caused by undergraduate professional accountancy curricula. The main problem lies in that accountancy PhD degrees take twice as long as most other doctoral degrees and require mathematics and statistics prerequisites not taken by former accounting majors ---
    http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms

    In the roaring 1990s there was great worry among the CPA firms that accounting was losing top majors to the soaring bubble of jobs in computer science, IT, and finance. But that bubble burst big time making homeless people out of computer science, IT, and finance graduates. Students who had not yet declared majors returned to the accounting fold in spite of the expanding requirements to have a fifth year (150-credits) to sit for the CPA examination.

    The curriculum of accountancy has been and probably always will be dictated by content of the CPA examination. For example, when the CPA examination commenced to have larger and tougher problems in governmental accounting, accounting programs beefed up governmental accounting courses. The same beefing up is now taking place with ethics content in the curricula. Perhaps this isn't such a bad thing until more shortages of accounting graduates arise.

    The problem with the CPA-exam focus of accounting curricula lies in finding accounting instructors qualified to teach upper division accountancy, auditing, tax, and AIS courses. There's a huge shortage of accountancy PhD graduates and many of them are econometricians not qualified to teach upper division accounting courses. As a result accounting programs are turning more and more to the AACSB's Professionally Qualified (PQ) adjunct instructors who are strong in accountancy but do not have doctoral degrees. A few even have doctoral degrees but are not interested in doing accountics research and publishing required for AQ tenure tracks.

    Hence even though we could streamline accounting curricula along the same lines suggested for engineering majors in the above article, I personally don't think there's a need to meet the supply of available jobs in accountancy in the United States and Canada.

    And apart from engineering and technology, I'm not certain that we are not deluding high school students about career opportunities in science and mathematics opportunities. For example, chemistry and physics are now ranked among the "most useless" majors and students with four-year degrees or even PhD degrees in these disciplines have to branch into other fields to find careers.

    "Texas May Cut Almost Half of Undergrad Physics Programs," Inside Higher Ed, September 27, 2011 ---
    http://www.insidehighered.com/news/2011/09/27/qt#271341

    Note that "useless" in context means an oversupply of graduates relative to job opportunities in a discipline. The jobs themselves may be high paying, but 300 may apply for a single opening such that the 299 that got turned away wish they'd majored in some other discipline.

     
    The most useless 20 college degrees," The Daily Beast, April 27, 2011 ---
    http://www.thedailybeast.com/blogs-and-stories/2011-04-27/useless-college-majors-from-journalism-to-psychology-to-theater/ 
    As college seniors prepare to graduate, The Daily Beast crunches the numbers to determine which majors—from journalism to psychology —didn’t pay.

    Some cities are better than others for college graduates. Some college courses are definitely hotter than others. Even some iPhone apps are better for college students than others. But when it comes down to it, there’s only one question that rings out in dormitories, fraternities, and dining halls across the nation: What’s your major?

    Slide Show
    01.Journalism
    02. Horticulture
    03. Agriculture
    04. Advertising
    05. Fashion Design
    06. Child and Family Studies
    07. Music
    08. Mechanical Engineering Technology
    (but not Mechanical Engineering per se)
    09.
    Chemistry
    10. Nutrition
    11. Human Resources
    12. Theatre
    13. Art History
    14. Photography
    15. Literature
    16. Art
    17.Fine Arts
    18. Psychology
    19. English
    20. Animal Science
     


    "Deloitte Commits $60 Million in Pro Bono Services to Nonprofit Organizations:  New Pledge Totals $110 Million to Make Communities Stronger and Advance Key Women/Girls, Education and Human Service Organizations," MarketWatch, April 6, 2012 ---
    http://www.marketwatch.com/story/deloitte-commits-60-million-in-pro-bono-services-to-nonprofit-organizations-2012-04-06

    Career Options for Women (developed in Canada) --- http://careeroptions.org/careeroptions/english_index.htm

    GirlGeeks --- http://www.girlgeeks.org/ 

    Women, Minorities, and Persons with Disabilities in Science and Engineering --- http://www.nsf.gov/statistics/wmpd/

    Careerzone --- http://careerzone.ny.gov/cz/stem/index.jsp

    On December 17, 2011 Jim Martin posted the following on his MAAW Blog ---
    http://maaw.blogspot.com/2011/12/careers-with-us-government-department.html

    Careers with a U.S. Government Department or Agency
    Accounting graduates should also consider a career with the U.S. government. For links to most U.S. Government departments and agencies
    see
    http://maaw.info/NonProfitLinks.htm 

    Look for Careers and Paid Student Intern Programs, or search the sites using those terms. There are a lot of opportunities available to current and recent college graduates that should not be ignored.


    2012 Working Mother:  100 Best Companies --- http://www.workingmother.com/best-company-list/129110


    "A Degree of Practical Wisdom:: The Ratio of Educational Debt to Income as a Basic Measurement of Law School Graduates’ Economic Viability," by Jim Chen, SSRN, December 3, 2011 ---
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1967266

    Abstract:     
    This article evaluates the economic viability of a student’s decision to borrow money in order to attend law school. For individuals, firms, and entire nations, the ratio of debt to income serves as a measure of economic stability. The ease with which a student can carry and retire educational debt after graduation may be the simplest measure of educational return on investment.

    Mortgage lenders evaluate prospective borrowers' debt-to-income ratios. The spread between the front-end and back-end ratios in mortgage lending provides a basis for extrapolating the maximum amount of educational debt that a student should incur. Any student whose debt service exceeds the maximum permissible spread between mortgage lenders' front-end and back-end ratios will not be able to buy a house on credit.

    These measures of affordability suggest that the maximum educational back-end ratio (EBER) should fall in a range between 8 and 12 percent of monthly gross income. Four percent would be even better. Other metrics of economic viability in servicing educational debt suggest that the ratio of total educational debt to annual income (EDAI) should range from an ideal 0.5 to a marginal 1.5.

    EBER and EDAI are mathematically related ways of measuring the same thing: a student's ability to discharge educational debt through enhanced earnings. This article offers guidance on the use of these debt-to-income ratios to assess the economic viability of students who borrow money in order to attend law school
    .

    . . .

    To offer good financial viability, defined as a ratio of education debt to annual income no greater than 0.5, post-law school salary must exceed annual tuition by a factor of 6 to 1. Adequate financial viability is realized when annual salary matches or exceeds three years of law school tuition. A marginal, arguably minimally acceptable level of financial viability requires a salary that is equal to two years’ tuition. The following table compares some tuition benchmarks with the salary needed to ensure the good, adequate, and marginal levels of financial viability identified in this article:

    Chen

     

    Jensen Comment
    This type of study, in my viewpoint, has some relevancy for professional schools beyond the bachelors degree. However, I would not recommend this type of analysis for students contemplating where to go after high school. In the first four years, students get much more out of college than career opportunities. There are liberal education quality considerations, greatness of faculty considerations, socialization experiences, dating, dorm living, and intimacy often leading to marriage. Often more expensive schools have more to offer beyond the classroom experience. By the time students are more mature after graduation from college, the importance of some of these "extracurricular" experiences often diminishes.

    And if we look at post-graduate law, medicine, engineering, and business schools, the job opportunities and salary expectations are not independent of the halo effect of where the candidate graduated. Diplomas from Harvard and Yale Law Schools add a great deal to salary expectations. And there are huge advantages of being able to network with alumni who often pave the way for job opportunities. What I'm saying is going to a law school having a tuition of $60,000 may well be worth it to graduates who take full advantage of the "extracurricular" opportunities such as networking with alumni. And for all practical purposes you can never be a U.S. Supreme Court justice unless you either graduated from Harvard or Yale law schools or were on the faculty at one of those law schools.

    In other words, if you can swing it go to Yale Law school rather than UCON (sorry Amy).

    EGADS. I'm a snob.


    Great Science For Girls --- http://www.greatscienceforgirls.org/

    Try Engineering --- http://www.tryengineering.org


    "Telling It as It Is (to new first-year students), by Craig Stark, Inside Higher Ed, June 6, 2011 ---
    http://www.insidehighered.com/views/2011/06/06/essay_on_how_honest_professors_should_be_to_students_about_the_economy

    Jensen Comment
    This article, perhaps appropriately, does not go into the ins and outs of choosing a major upon arrival at a college or university. With a few exceptions, this is perhaps a good idea except in certain majors where there prerequisite first-year courses are essential such as in engineering and pre-med. For accounting, the prerequisite first courses can usually be delayed until the sophomore year. But the above article really does not deal with choosing a major early on before students learn a lot about education and careers during their first year on campus. Much of what they learn comes from informal interactions with students who are in their second, third, fourth, and higher levels of study. I think it's a mistake for general curriculum teachers to try to sell students on particular types of majors or particular types of politics. Let students sort these things out for themselves as they advance through the first and even the second years of study.

    This article does talk about debt loads. I personally think that students in the first term of college should learn about personal finance, tax issues, and debt risk since many of them will make horrible mistakes in college and after college.

    Bob Jensen's threads on personal finance helpers ---
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    Advice and Bibliography for Accounting Ph.D. Students and New Faculty by James Martin ---
    http://maaw.info/AdviceforAccountingPhDstudentsMain.htm

    "So you want to get a Ph.D.?" by David Wood, BYU ---
    http://www.byuaccounting.net/mediawiki/index.php?title=So_you_want_to_get_a_Ph.D.%3F

    Why accountancy doctoral programs are drying up and why accountancy is no longer
    required for admission or graduation in an accountancy doctoral program ---

    http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms

    Bob Jensen's threads on what went wrong with "accountics research" can be found at
    http://faculty.trinity.edu/rjensen/theory01.htm#WhatWentWrong


    "The Value of a Humanities Degree: Six Students' Views," by Jackie Basu et al., Chronicle of Higher Education, June 5, 2011 ---
    http://chronicle.com/article/The-Value-of-a-Humanities/127758/?sid=wb&utm_source=wb&utm_medium=en

    "Toward a Plausible Rationale for the Humanities," by Frank Donoghue, Chronicle of Higher Education, June 3, 2011 ---
    http://chronicle.com/blogs/innovations/towards-a-plausible-rationale-for-the-humanities/29565?sid=cr&utm_source=cr&utm_medium=en

    Bob Jensen's threads on Humanities Versus Business ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#HumanitiesVsBusiness


    Accounting, Finance, and Business Graduate Average Salaries are Neither in the Top Nor the Bottom Top Ten

    "Major Decisions," by Kevin Kiley, Inside Higher Ed,  May 24, 2011--- Click Here
     http://www.insidehighered.com/news/2011/05/24/georgetown_study_of_salaries_for_different_majors_finds_big_discrepancy_women_and_minorities_in_low_paying_fields

    Jensen Comment
    I always advised my students that things other than starting salaries were often more important. For example, in accounting the most important factors are client exposure (clients often make the best offers to auditors and consultants), the professional nature of interesting work, and the amount and quality of the training are more important for the long haul than starting salaries.

    Advancement opportunities are also very important. Consideration should also be given to travel demands (good news to some graduates and bad news to other graduates) and pressures such as compensation based upon sales commissions or other pressure cookers.

    Also give consideration to the numbers of opportunities and the locations of where those opportunities take place. Naval Architecture and Marine Engineering graduates are paid well, but they are relatively few in number and face only a limited number of job opportunities and locales. One of my closest friends has a son who graduated as an engineer from Maine Maritime Academy and received all sorts of opportunities in the Merchant Marines. However, after recently getting married the romance of being stationed aboard Far East merchant vessels lost a lot of its appeal with his young and pretty wife living on a horse farm in Conway, New Hampshire. If he'd instead become a N.H. CPA he could probably have great opportunities in the Mt. Washington Valley and live each day on the farm.

    And in some cases health and pension plans can be very important. Any career that provides a lifetime pension after only 20-30 years of service provides a tremendous opportunity for double dipping later in life. Consider running for the U.S. Congress where a short four-year stint can get you a lifetime pension with great medical benefits for a lifetime. Of course there's a lot of crap to wade through getting nominated and elected.

    To me the most important factor is independence and freedom of time control such as those freedoms afforded to college professors. If I had it to do all over again I would get a PhD in accounting (since accounting PhDs are in such short supply for the tremendous needs of the market). I guess in the 1960s I was the maggot that was dropped by a soaring bird into the sweetest manure pile around.
    http://www.jrhasselback.com/AtgDoctInfo.html


    National Girls Collaborative Project (science, engineering, and math) --- http://www.ngcproject.org/resources/newsletter.cfm

     

    GirlGeeks --- http://www.girlgeeks.org/ 

    Career Options for Women (developed in Canada) --- http://careeroptions.org/careeroptions/english_index.htm

    "Deloitte Commits $60 Million in Pro Bono Services to Nonprofit Organizations:  New Pledge Totals $110 Million to Make Communities Stronger and Advance Key Women/Girls, Education and Human Service Organizations," MarketWatch, April 6, 2012 ---
    http://www.marketwatch.com/story/deloitte-commits-60-million-in-pro-bono-services-to-nonprofit-organizations-2012-04-06
    Thank you Eliot Kamlet for the heads up.


    "Say Anything: The Big Four Defense Of Overtime Exemptions," by Francine McKenna, re:TheAuditors, June 20, 2011 ---
    http://retheauditors.com/2011/06/20/say-anything-the-big-4-defense-of-overtime-exemptions/

    "PricewaterhouseCoopers Headed For A Trial In California Overtime Case." by Francine McKenna, re:TheAuditors, June 17, 2011 ---
    http://retheauditors.com/2011/06/17/pricewaterhousecoopers-headed-for-a-trial-in-california-overtime-case/

    Jensen Comment
    Francine discusses strategies used by large auditing firms to avoid paying overtime, often in conflict with both state laws and auditing standards. CPA firms are not unique in seeking out ways to avoid overtime pay laws. Similar ploys are taken by hospitals and medical clinics paying residents and universities paying adjunct faculty and graduate students.

     


    Career Guide to Industries -- Bureau of Labor Statistics --- http://www.bls.gov/oco/cg/
    Accountants and Auditors --- http://www.bls.gov/oco/ocos001.htm

    Free and fee CPA/CMA exam review materials ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam

    NASBA --- http://en.wikipedia.org/wiki/Nasba

    NASBA Video on How to Become a CPA --- http://bit.ly/HowToBecomeACPA

    FEI Second Life Video (thank you Edith) ---
    If I Were an Auditor --- http://www.youtube.com/user/feiblog#p/a/u/0/Q-FR_fkTFKY

    Why the Big Four accounting firms are in the world's Top 5 student picks for places to work (according to Bloomberg and Business Week)
    And why Google became the Number 1 choice

    "Google Tops Grad Picks for Top Employers:  The Big Four accounting firms round out the top spots and Apple and GM make the list for the first time in the latest Universum ranking by business students," Business Week, September 28, 2010 ---
    http://www.businessweek.com/bschools/content/sep2010/bs20100928_433243.htm?link_position=link1

    Having captured the hearts and minds of undergraduate business students, Google is still No. 1 in the latest Universum ranking of the most popular employers rated by young people. But it shouldn't get too cocky: The competition is getting fiercer.

    Google (GOOG), along with the Big Four accounting firms—KPMG, Ernst & Young, PricewaterhouseCoopers, and Deloitte—respectively make up the top five on the 2010 ranking compiled by Universum, a research firm in Stockholm. The list is based on the responses of more than 130,000 business and engineering students in 12 major global markets who told Universum where they dream of working.

    The accounting firms fared well among business students in the ranking because their training programs are highly regarded and they have been on a hiring tear when jobs for college grads have otherwise been difficult to come by. Google, which took the top spot among both business and engineering students, benefited from a unique corporate culture that includes free food and haircuts and lets employees bring their dogs to work. Kyle Ewing, talent and outreach programs manager for Google in Mountain View, Calif., said in an interview that many are attracted to the company because of its sense of mission.

    "Google is a place where you can tackle big problems," she said. "For all employees, there's a real sense that people are working on things that could change the world."

    Procter & Gamble (PG), Microsoft (MSFT), Coca-Cola (KO), J.P. Morgan (JPM), and Goldman Sachs (GS) respectively round out the top 10. Finance firms in the banking and investing sectors, management consulting, and oil and gas companies have become less appealing to students, according to the list.

    Standouts during the economic crisis HSBC (HBC), which ranked 22 in 2009, dropped out of the top 50 in 2010. And Intel (INTC), Nokia (NOK), and ExxonMobil (XOM) fell out of the upper 30 to the bottom of the list. Among companies new to the list, Apple (AAPL), Bank of America (BAC), IKEA, and Adidas (ADS:GR) broke into the top 30.

    Universum asked students to select the five employers for which they would most like to work from a list of more than 120 that was based on Universum's 2009 top employers ranking. Respondents could write in employers that were not on the list. A company's ranking is based on the percentage of business students who designated it among their top five. Of the top 50, eight are Universum consulting clients.

    Continued in article

    Best Places to Intern --- http://www.businessweek.com/managing/content/dec2009/ca2009129_394659.htm?link_position=link1
    I'm waiting for Francine to throw cold water on the "ever before" claim
    Especially note the KPMG Experience Abroad module below
    "Best Places to Intern:  Bloomberg BusinessWeek's 2009 list shows employers are hiring more interns to fill entry-level positions than ever before,"  by Lindsey Gerdes, Business Week, December 10, 2009 ---
    http://www.businessweek.com/managing/content/dec2009/ca2009129_394659.htm?link_position=link1

    How valuable is a summer internship in a recession? Consider Goldman Sachs, the leading choice for students interested in a career on Wall Street. This year, the investment bank hired 600 fewer entry-level employees. That's not surprising given the stunted economy and the government bailout of banks. What is noteworthy is nearly 90% of Goldman's new hires were former interns. The previous year, Goldman wasn't as concerned about hiring a high percentage of students it had already invested time and money to trainonly 58% of entry-level hires had spent a summer at the company.

    The same is true for other employers. KPMG, a Big Four accounting firm that finds itself in tight competition with Deloitte, Ernst & Young, and PricewaterhouseCoopers, hired nearly 900 fewer entry-level employees this year. But 91% of those full-time hires were former interns, whereas only 71% of new hires in 2008 were interns.

    Internships have long been seen as a primary recruiting tool at many top employers—a 10-week job tryout to see who would be the best fit for full-time employment. But with full-time hiring down, even the largest employers are trying to maximize the investment they've made in interns by hiring a larger percentage to fill entry-level position than ever before. "It's true for all years, but I think it's even more so in years like this," says Sandra Hurse, a senior executive at Goldman who handles campus recruiting.

    Evaluating Employers

    With this ranking, Bloomberg BusinessWeek has put together its third annual guide to the best internships, providing information on the number of interns each company recruits, how many are offered full-time jobs, the number of interns expected to be hired next year, even the salaries students receive.To compile our list, we judged employers based on survey data from 60 career services directors around the country and a separate survey completed by each employer.We also consider how each employer fared in the annual Best Places to Launch a Career, our ranking of top U.S. entry-level employers released in September of each year.

    Our ranking of the best U.S.companies for undergraduate internships highlights employers who have put together an outstanding experience for students.Accounting firm Deloitte tops our list, followed by rivals KPMG (No.2) and Ernst & Young (No.3).The last of the Big Four accounting companies, PricewaterhouseCoopers, comes in at No.5, right behind consumer goods giant Procter & Gamble.

    The employers on our list understand that an outstanding internship experience is their most effective recruiting tool to snap up the top entry-level job candidates. That's why some companies have invested a considerable amount of money in their programs. Microsoft, for example, estimates it spends on average $30,000 per intern, when you factor in pay and benefits. Considering the company hired 542 undergraduate interns in 2009, that's roughly a $16 million investment.

    Experience Abroad

    Two years ago KPMG realized it had to make a substantial investment in its internship program if it hoped to woo top students from larger consulting and accounting firms. So the company decided to offer interns an opportunity to gain valuable overseas experience. KPMG lets student interns spend four weeks in the U.S. and four weeks abroad. "It's extremely competitive [to recruit top students], and this is a differentiator," says Blane Ruschak, executive director of campus recruiting at KPMG.

    A chance to work overseas is precisely what appealed to Andrew Fedele, 21, an accounting and economics double major at Pennsylvania State University. "I was sold pretty much when I first read about [KPMG's] global internship program." He spent four weeks in Chicago and four weeks in Johannesburg, South Africa. "South Africa has just such an interesting history. To go there and live with the locals and work with them was really exciting."

    What did KPMG get in return? Exactly what it hoped: Fedele accepted a full-time job almost immediately after KPMG made its offer at the end of the summer.

    Gerdes is a staff editor for BusinessWeek in New York.


    "Ernst & Young: Named Top Employer In 2012 Stonewall Workplace Equality Index," by Erica deVry, Big4.com, January 20, 2012 ---
    http://www.big4.com/ernst-young/eernst-young-named-top-employer-in-2012-stonewall-workplace-equality-index

    The Stonewall Workplace Equality Index, which showcases the UK’s top 100 public and private sector employers for gay, lesbian, and bisexual staff, has named Ernst & Young Employer of the Year for 2012, climbing from third place last year. The firm also received top ranking in Stonewall’s inaugural ‘Global Best Practice Index’.

    Commenting on Stonewall’s recognition, Harry Gaskell, Managing Partner for Advisory and Head of Diversity and Inclusiveness at Ernst & Young said:

    “Being named the 2012 Employer of the Year is an achievement that we’re very proud of. I’m really happy with the great progress the firm has made since it first entered the Workplace Equality Index in 2005 and look forward to continuing to champion diversity and inclusiveness in 2012.”

    Ernst & Young’s leading role in developing the concept of inclusive leadership, its sponsorship of National Student Pride, its engagement with clients about sexual orientation as a workplace issue, and strong leadership driven from the top are some of the progressive initiatives attributed to the firm’s success.

    Continued in article

    "Deloitte Given Perfect Rating on Human Rights Campaign Corporate Equality Index," by Kalen Smith, Big4.com, January 13, 2012 ---
    http://www.big4.com/uncategorized/deloitte-given-perfect-rating-on-human-rights-campaign-corporate-equality-index

    The Human Rights Campaign has named Deloitte one of the best places to work for the sixth year in a row. In their 2012 Corporate Equality Index, the HRC noted that it gave Deloitte a 100 percent rating.

    Deloitte chief talent officer, Jennifer Steinmann, said that Deloitte is constantly working to provide a workplace that employees will be proud of. Steinmann said that they offer a culture that helps the LGBT community and encourages all of its employees to feel accepted.

    Steinmann said that Deloitte offers a number of solutions to the variety of challenges they face as they strive to create an environment that increases employee morale and gives all employees the opportunity to thrive. Deloitte has used a number of Business Resource Groups to educate employees and offer them the resources they need to address the challenges they face in the workplace.

    HRC is making its standards increasingly strict. Due to the changes in their eligibility standards, about 50 percent of companies have fallen off of the list. New standards include providing a culture for members of the LGBT community and promoting company citizenship.

    Steinmann and other representatives at Deloitte state that they are proud of the fact that Deloitte has consistently earned this recognition since 2006.

    Continued in article

    Bob Jensen's threads on the best places to work are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    "Avoiding MBA Internship Blunders," Business Week, June 21, 2012 ---
    http://www.businessweek.com/articles/2012-06-21/avoiding-mba-internship-blunders

    Seven internship goofs listed by Aida in Adelaide (not goofs in CPA firms) ---
    http://www.community.ichm.edu.au/s/226/images/editor_documents/Internship News 22-02-08.pdf

    1. BEING A WALLFLOWER

    Shy and quiet interns are at a definite disadvantage, says Roger Conner, Vice- President of Communications at Marriott International. "They may be quite intelligent, but it does not reflect well on them." Good interpersonal skills, such as making good eye contact, are extremely important, he says. Put those skills to use, and take advantage of company-wide events to get some face time with higher management. Those in higher positions are often more than willing to share their advice with interns, when asked. "Maybe they can spare the 30 minutes on their calendars, and maybe they can't -- but it doesn't hurt to try."

    2. DUCKING THE EXTRACURRICULARS

    Most companies make an effort to arrange informal events and outings such as football games or community service days -- sometimes for a whole department, sometimes just for interns. By not participating you might actually be sending the message that you don't understand the company's values. You'll also lose out on what may be the best opportunities to get to know your co-workers on a more personal level.

    3. GRUNTING ABOUT GRUNT WORK

    Whether it's making photocopies or polishing cutlery, menial duties are a fact of life in every job role. Getting on with those small tasks will make any department run smoother and will stand you in good stead with your manager, who’ll be impressed by your willingness to help out.

    4. MISSING THE BIG PICTURE

    Spending as much time as you can with as many people as you can is the best way to learn about the company you're working for. Don't be afraid to venture outside your immediate team or department to learn how your responsibilities fit into the big picture.

    5. FAILING TO ASK QUESTIONS

    Asking questions can be crucial to avoid wasting time and energy by approaching problems in the wrong way. They can also speak volumes about your desire to learn. There's perhaps no better way to show off your intellectual curiosity than by asking intelligent questions. It's the rare person in any organisation who knows everything.

    6. REJECTING CRITICISM

    Critical feedback is the most challenging to give and receive -- but it's also the most useful. That means it's smart for interns to seek out constructive criticism, rather than waiting for a formal review.

    Some students, particularly confident ones in the classroom, may not be as open to criticism as they should be. Instead of really listening to feedback, a number of interns simply shut it out. Overly cocky interns aren't just making a bad impression; they're also missing out on valuable opportunities to improve their skills.

    7. WASTING TIME

    Recruiters consistently cite being proactive as one of the most important qualities in a successful intern. If you're waiting to be told what to do you're not doing enough. 6 months is short, and there's a lot you can learn by asking for new tasks.

     

    Jensen Comment
    Probably the best advice to consider is that given by the firm's employee who interviewed you for the internship. And pay particular attention to your accounting professors --- they're always right.

    Seriously, the professor who has previously monitored a lot of interns probably has heard it all. That professor can probably highlight the big plus things to do on and internship as well as the minus things.

    One of the toughest internship settings requires tolerance with dignity. One time I ended up with a house guest at a Comedy Club on the San Antonio River Walk. The show turned especially gross, and my friend and I soon walked out. I felt sorry for the 23 Ernst & Young employees and interns who were sitting alongside of us at the same show. Should you, as an intern, have walked out of the show leaving your 22 colleagues behind? I really don't know what to advise in these circumstances. I honestly think the E&Y local office employees, like us, did not really expect that Comedy Club show to become so gross. On the other hand, perhaps street smart people should always expect the worst from a Comedy Club.

    And if the internship goes badly, the blame may not all fall on the intern. Sometimes employees dealing with interns are under stress and not at their best during a particular internship period. Do report any really bad stuff like sexual harassment and failure to deliver on what was promised to you in this internship. And do own up to your own mistakes. To err is human on the job. To cover it up or blame somebody else is generally stupid.

    And remember things that seem cool among other students are not always cool on the job --- including those brass boogers sticking out the side of your nose, lip, or tongue and those edges of tattoos that peek out from your clothing.

    Don't pretend to be a great intellectual by tossing out quotes from renowned scholars. Instead be able to discuss possible batting averages, injury, and e.r.a. reasons that the Red Sox are at the bottom of their division. Know the names of the top money winners in recent P.G.A. and L.P.G.A. tournaments.

    Be polite everybody equally and don't be overly patronizing to women and minorities. If a particular woman makes a feminist joke or a black makes a watermelon joke this does not mean you are entitled to make the same types of jokes --- but jokes about Ole, Lena, Sven, and Swedes in general are commendable in any setting.

    And remember that interns sometimes are treated differently than full-time employees. Be prepared for questions such as those shown below:

    Sometimes such questions are just ways of making conversation with strangers. At other times they are trick questions to see if you tend to pretend to be somebody that you're really not or somebody who is slow to think and speak extemporaneously. Of course if you prepare for the above questions it's not exactly extemporaneous.


    Accounting Doctoral Programs

    PQ = Professionally Qualified under AACSB standards
    AQ = Academically Qualified under AACSB standards

    May 3, 2011 message to Barry Rice from Bob Jensen

    Hi Barry,

    Faculty without doctoral degrees who meet the AACSB PQ standards are still pretty much second class citizens and will find the tenure track hurdles to eventual full professorship very difficult except in colleges that pay poorly at all levels.

    There are a number of alternatives for a CPA/CMA looking into AACSB AQ alternatives in in accounting in North American universities:

    The best alternative is to enter into a traditional accounting doctoral program at an AACSB university. Virtually all of these in North America are accountics doctoral programs requiring 4-6 years of full time onsite study and research beyond the masters degree. The good news is that these programs generally have free tuition, room, and board allowances. The bad news is that students who have little interest in becoming mathematicians and statisticians and social scientists need not apply --- http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms 

    As a second alternative Central Florida University has an onsite doctoral program that is stronger in the accounting and lighter in the accountics. Kennesaw State University has a three-year executive DBA program that has quant-lite alternatives, but this is only available in accounting to older executives who enter with PQ-accounting qualifications. It also costs nearly $100,000 plus room and board even for Georgia residents. The DBA is also not likely to get the graduate into a R1 research university tenure track.

    As a third alternative there are now some online accounting doctoral programs that are quant-lite and only take three years, but these diplomas aren't worth the paper they're written on --- http://faculty.trinity.edu/rjensen/Crossborder.htm#CommercialPrograms  Cappella University is a very good online university, but its online accounting doctoral program is nothing more than a glorified online MBA degree that has, to my knowledge, no known accounting researchers teaching in the program. Capella will not reveal its doctoral program faculty to prospective students. I don't think the North American academic job market yet recognizes Capella-type and Nova-type doctorates except in universities that would probably accept the graduates as PQ faculty without a doctorate.

    As a fourth alternative there are some of the executive accounting doctoral programs in Europe, especially England, that really don't count for much in the North American job market.

    As a fifth alternative, a student can get a three-year non-accounting PhD degree from a quality doctoral program such as an economics or computer science PhD from any of the 100+ top flagship state/provincial universities in North America. Then if the student also has PQ credentials to teach in an accounting program, the PhD graduate can enroll in an accounting part-time "Bridge Program" anointed by the AACSB --- http://www.aacsb.edu/conferences_seminars/seminars/bp.asp 

    As a sixth alternative, a student can get a three-year law degree in addition to getting PQ credentials in some areas where lawyers often get into accounting program tenure tracks. The most common specialty for lawyers is tax accounting. Some accounting departments also teach business law and ethics using lawyers.

    Hope this helps.

    Bob Jensen

    PS
    Case Western has a very respected accounting history track in its PhD program, but I'm not certain how many of the accountics hurdles are relaxed except at the dissertation stage.


    What I like about Gina's site is that it does not avoid programs in major colleges and universities.

    August 8, 2011 message from Gina

    Hi Bob Jensen,
    I maintain
    http://www.lawenforcementtraining.org. I have spent many
    years as a law enforcement officer, and love my field of work. I decided to
    make a website to help up and coming law enforcement students explore
    schools that offer this degree degree. Do you mind taking a look and adding
    it to your resource page of :
    http://www.trinity.edu/rjensen/fraud.htm ?

    http://www.lawenforcementtraining.org has become a fun passion
    project of mine, and I think it serves as a great resource for anyone looking
    to get a degree and start a career in law enforcement.  I would greatly
    appreciate any feedback, and hope you will find it as a useful addition to your
    site.

    Thanks for taking a look!
    Gina

    Bob Jensen's threads on careers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

    Bob Jensen's threads on online training and education alternatives ---
    http://faculty.trinity.edu/rjensen/Crossborder.htm


    "For Female Faculty, a B-School Glass Ceiling:  Work-life issues, lack of mentorship programs, and sexual discrimination are preventing many women from obtaining tenure and full professorships," by Allison Damast, Business Week, August 8, 2011 ---
    http://www.businessweek.com/business-schools/for-female-faculty-a-bschool-glass-ceiling-08082011.html

    Bob Jensen's threads on the Glass Ceiling (and in some cases lack thereof in CPA firms) are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#careers


    "College Majors, Unemployment and Earnings:  Not all college degrees are created equal," Georgetown Center on Education and the Workforce, Date unknown but assumed to be late in 2011 ---
    http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdf

    Jensen Comments
    Not many surprises here although numbers are given for "earnings" and "unemployment." Engineering comes out ahead in broad categories. But I often think these outcomes can be misleading in the sense that "business, finance, and accounting" sometimes facilitate promotions to executive suites. For example, a lowly paid entry level IRS agent who works successfully up the promotion latter in government can sometimes jump over to the private sector at very high salary levels and benefits. Similarly, audit partners commonly cross over to clients at high paid CFO or CAO executive positions.

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

     


    WhyCTE: Career Technical Education --- http://whycte.org/

    Job and Career Search Helper Site
    O*Net OnLine --- http://www.onetonline.org/


    "Banks Favor Companies with Women CFOs? A female finance chief may be an asset when pitching for bank loans, a new Rensselaer Polytechnic Institute study suggests," by Marielle Segarra, CFO.com, December 22, 2011 ---
    http://www3.cfo.com/article/2011/12/leadership_rensselaer-polytechnic-rpi-qiang-wu-bank-loans-gender

    GirlGeeks --- http://www.girlgeeks.org/ 

     

    2012 Working Mother:  100 Best Companies --- http://www.workingmother.com/best-company-list/129110

    "Deloitte Commits $60 Million in Pro Bono Services to Nonprofit Organizations:  New Pledge Totals $110 Million to Make Communities Stronger and Advance Key Women/Girls, Education and Human Service Organizations," MarketWatch, April 6, 2012 ---
    http://www.marketwatch.com/story/deloitte-commits-60-million-in-pro-bono-services-to-nonprofit-organizations-2012-04-06
    Thank you Eliot Kamlet for the heads up.

    Question
    Who was the first woman to be admitted as an audit partner in a Big Eight accounting firm?

    Indiana University's Photo Archives (over two million pictures) ---
    http://paper.li/businessschools?utm_source=subscription&utm_medium=email&utm_campaign=paper_sub  
     

    Jensen Comment
    I did a search on the term "Accounting." One hit was a 1936 photograph of an "accounting machine room" that in some respects resembles a computing lab room of modern times. I don't know why an "auto polo" site also showed up on the hit list for accounting. That photograph mentions Ernie Pyle, although I'm wasn't sure this is the famous Ernie Pyle. However, a check on Ernie Pyle showed at he was at Indiana University at that time ---
    http://en.wikipedia.org/wiki/Ernie_Pyle

    It was slightly more productive to search on the word "Business".

    Here's a 1957 photograph of a computing machine in the school of business ---
    http://webapp1.dlib.indiana.edu/archivesphotos/results/item.do?itemId=P0023310&searchId=3&searchResultIndex=21

    Various photographs of Michele Fratianni (economics professor) show how men can truly disguise their appearances with glasses and a mustache. I wonder if the nose was attached to the glasses.

    Cartoon:  Players may strut and players may fret but orators rave on forever ---
    http://webapp1.dlib.indiana.edu/archivesphotos/results/item.do?itemId=P0022845&searchId=0&searchResultIndex=52

    Here's a 1945 Careers for Women photograph ---
    http://webapp1.dlib.indiana.edu/archivesphotos/results/item.do?itemId=P0023302&searchId=2&searchResultIndex=20
    It would be interesting to investigate what female career opportunities were being promoted at the time by Indiana University. It was in some ways too early to suggest CPA firm careers. Most of the large CPA firms were not yet admitting women partners (at least not in any significant numbers), and women were not usually allowed to travel on audits and meet with clients. How times have changed now that CPA firms hire more women graduates than men in recent years.

    In 1960 Mary Jo McCann became the first woman CPA in Kansas ---
    http://www.kscpa.org/about/news/119-mary_jo_mccann_first_woman_cpa_in_kansas_passes
    Fifteen years later she became Chair of the Kansas State Board of Accountancy

    In 1977 Cheryl Wilson became the first woman partner of any Big Eight firm in Chicago (Coopers & Lybrand) ---
    http://www.icpas.org/hc-media.aspx?id=7602 

    In  the1960s Mary E. Lanigar, a Stanford University mathematics graduate and attorney and CPA, was the arguably first U.S. female to be made partner in any Big Eight firm (Arthur Young). She was a tax partner. In 1938 she'd worked as an accountant in the Stanford University Athletics Department.
    http://articles.sfgate.com/2007-10-24/news/17264444_1_mills-college-santa-rosa-mary

    In 1973 Marianne Burge became the first Price Waterhouse female partner. She was also a tax partner.
    http://www.nytimes.com/1998/03/17/business/marianne-burge-64-expert-on-tax-issues.html

    Ernst & Ernst acquired a woman partner in 1957, but I think she was inherited as a partner in a merger with a British accounting firm (Whinney, Murray, & Company) ---
    http://www.spoke.com/info/p73cjmW/Aalso

    It would be interesting to know when the first U.S. female audit partner was admitted in a Big Eight firm.
    I suspect that Dale Flesher (Ole Miss. expert on accounting history) probably knows the answer to this one.


    Profitability:  Based on 300,000 companies, most with annual sales under $10 million. One takeaway: Specialization pays off

    What a great Rank 1 slide for college recruitment of accounting majors  ---
    http://www.forbes.com/2010/04/15/most-profitable-small-businesses-entrepreneurs-finance-sageworks_slide_21.html

    The most profitable niche of the bunch (CPA bunch) enjoys a nice mix of pricing power (everybody needs accountants, no matter how the economy is doing), low overhead and marketing scale, thanks to plenty of repeat clients.

    Other Accounting Services comes it at Rank 3 ---
    http://www.forbes.com/2010/04/15/most-profitable-small-businesses-entrepreneurs-finance-sageworks_slide_19.html

    Various accounting, bookkeeping, billing and tax preparation services in any form, handled not necessarily by a Certified Public Accountant (see No. 1 on our list).

    And at Rank 5 are Tax Preparation Services (one rank below dentist offices) ---
    http://www.forbes.com/2010/04/15/most-profitable-small-businesses-entrepreneurs-finance-sageworks_slide_17.html

    Who likes doing their taxes? Exactly.

    "The Most Profitable Small Businesses," by Brett Nelson and Maureen Farrell, Forbes, April 15, 2010 ---
    http://www.forbes.com/2010/04/15/most-profitable-small-businesses-entrepreneurs-finance-sageworks.html?boxes=entrepreneurschannelinentre 

    The 20 Most Profitable Slide Show (The top line has a Next button) ---
    http://www.forbes.com/2010/04/15/most-profitable-small-businesses-entrepreneurs-finance-sageworks_slide.html


    "Deloitte Touche plans hiring spree," by Alan Rappeport, Financial Times, September 13, 2010 ---
    http://www.ft.com/cms/s/0/0907aa9c-bf03-11df-a789-00144feab49a.html?ftcamp=rss 

    Deloitte Touche Tohmatsu, the global accounting firm, said on Monday that it would hire an average of 50,000 workers a year during the next five years as it revealed strong revenues.

    Revenues at Deloitte rose by 1.8 per cent to $26.6bn in the fiscal year ending May 31 on the strength of its consulting business and growing demand for its services in Asia.

    Deloitte, which is one of the “big four” accounting firms, has been helped by the greater regulatory scrutiny that companies are facing along with the need to streamline their businesses in the wake of the downturn.

    Consulting revenues at Deloitte rose by 14.9 per cent to $7.5bn last year. That helped the company absorb weaker revenue in its financial services advisory unit and its audit business, which Deloitte attributed to reductions in its hourly rates.

    Deloitte’s consulting business was lifted by the acquisition of BearingPoint’s US public sector consulting practice and greater demand from businesses that needed help integrating new technology.

    “I am proud of our people and their continued commitment to client service excellence during the most difficult economic climate in decades,” Jim Quigley, Deloitte’s chief executive, said in a statement.

    Audit revenues declined by 1 per cent and financial advisory revenues were off by 2 per cent.

    Deloitte employs 170,000 people worldwide and said on Monday that it expects to add 250,000 new workers during the next five years as it looks to expand its services and geographic reach.

    Regionally, Deloitte had the strongest growth in Asia, where revenues were up by 8.5 per cent to $3.6bn. Revenues were up by nearly 4 per cent to $13bn in the Americas, thanks to increased demand in Brazil, but dipped in Europe, the Middle East and Africa.

    In the US, accounting and audit firms have been under scrutiny in the aftermath of Bernard Madoff’s “Ponzi” scheme for failing to catch irregularities related to his investments. In the UK, the Financial Reporting Council is investigating conflicts of interest between firms that provide both accounting and audit services to clients.

    Advice and Bibliography for Accounting Ph.D. Students and New Faculty by James Martin ---
    http://maaw.info/AdviceforAccountingPhDstudentsMain.htm

    "So you want to get a Ph.D.?" by David Wood, BYU ---
    http://www.byuaccounting.net/mediawiki/index.php?title=So_you_want_to_get_a_Ph.D.%3F

    Why accountancy doctoral programs are drying up and why accountancy is no longer
    required for admission or graduation in an accountancy doctoral program ---

    http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms

    Bob Jensen's threads on what went wrong with "accountics research" can be found at
    http://faculty.trinity.edu/rjensen/theory01.htm#WhatWentWrong

     


    From the AICPA
    Overview of Certified in Financial Forensics (CFF) Credential --- Click Here
    http://www.aicpa.org/InterestAreas/ForensicAndValuation/Membership/Pages/Overview Certified in Financial Forensics Credential.aspx 


    Business School Zone --- http://www.businessschoolzone.com/

    A Degree in Management --- http://www.managementdegreezone.com/


    How will IFRS affect the 2011 CPA Examinations?
    If I Pass CPA Exam Parts in 2010, Will I Have to Pass Them Again in 2011?

    Click Here
    http://goingconcern.com/2010/06/if-i-pass-cpa-exam-parts-in-2010-will-i-have-to-pass-them-again-in-2011/#more-12870
     

    NASBA --- http://en.wikipedia.org/wiki/Nasba

    NASBA Video on How to Become a CPA --- http://bit.ly/HowToBecomeACPA

    Bob Jensen's threads on the CPA examination are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010303CPAExam


    An Upbeat Accounting Recruitment Message in a Down Economy
    December 10, 2009 reply from David Fordham, James Madison University [fordhadr@JMU.EDU]

    Francine, Ed, Bob, et al:

    Also completely anecdotal but on the other side of the coin:

    I have no knowledge or evidence about audit fees, firm profits, or even demand for audit services, since I've been way too busy to spend time with recruiters this semester. But based on what my colleagues are telling me, the cold air has not seeped down to us yet.

    We had more firms at our "meet the firms" night last month than we've ever had before (56). The number of organizations who recruited accounting majors here set a new school record (66). Our percentage of May grads who have job offers already (74%)is exactly the same as it was this time last year, which was up about 5% before the year before and up 8% from the year before. The actual COUNT of grads who are graduating and who have jobs is up about 5% over last year. We haven't yet run our salary survey (to my knowledge) but from the scuttlebutt in talking with students, the starting salaries for our grads haven't dropped noticeably, if at all. I still have firms calling me begging to be guest speakers for my classes, which means they apparently still have time to spend a day driving over here to class, and still have money enough to spend the night and go to a basketball game or something.

    We graduate around 120 accounting BBA's per year, and about 75-80 MSA grads each year (almost all of whom were accounting BBA's the year before). The bachelor number has been relatively steady the past few years, but the MSA enrollment has quadrupled over the last 3-4 years as the Virginia 150-hr kicked in a couple years ago.

    Regarding curriculum, we too have moved several courses from the undergrad to the grad level, and our undergrad accounting degree no longer has sufficient accounting hours to meet the 30-hour minimum to sit for the exam in Virginia. Students not going for the MSA have to add the CIS minor to get their 150 hours -- and that minor includes an accounting technology course which puts them over the 30-hour accounting hurdle. But those who can get in (minimum GPA, GMAT hurdles, etc.) all go into the Masters program.

    The masters program not only has some accounting courses that used to be undergrad, it also has the original pioneering Becker Boot-Camp (totally non-credit) starting the week after graduation. With the Becker boot camp, we are now in the top ten first-time pass-rates on the Exam. Since practically all our MSA's go into public accounting, the arrangement has been a boon to the students. Practically all of them have the course paid for by their employer after passing the exam.

    Again, we are probably not typical. The only way we know the economy is down is that our salaries remain frozen after several years, our travel was frozen and while unfrozen now, remains under heavy restrictions, and my computer is now more than five years old. Fortunately, donations are up, so I still plan to be at the AAA-IS next month.

    Of course, I have to admit, about 2/3rds of our market is Big Four in the Washington/Baltimore area which may be totally atypical to the rest of the world. But most (>90%) of our grads start in public accounting (Big 4, second tier, and a sprinkling of smaller firms), with almost all of the remainder going to government (the GAO, Secret Service, DoD, and Dept of Justice all have more offers out to our students this year than last, and are far more aggressive about trying to get their reps in front of the students than they have ever been in the past).

    Purely anecdotal, and quite likely atypical, but from our unusual vantage point, accounting is still strong. We have no shortage of students wanting to major in accounting. Because we remain under a hiring freeze, we have had to manage enrollments by increasing our minnimum GPA to declare the major, and are implementing an entrance exam to enroll in intermediate.

    David Fordham
    James Madison University


    Accounting Majors in Demand
    Even when the economy is down, there is room for top students in the profession.   The National Association of Colleges and Employers’ 2009 Student Survey found that, even though students in the class of 2009 were graduating with fewer jobs available, accounting majors are still in high demand. Accounting and engineering graduates were among those majors most likely to have already found jobs.   Accounting majors expect to earn an average starting salary of about $45,000, while engineering grads expect to earn $58,000.
    Journal of Accountancy, July 2009 --- http://www.journalofaccountancy.com/Issues/2009/Jul/AccountingMajors.htm


    December 9, 2009 message from Francine McKenna [retheauditors@GMAIL.COM]

    Unfortunately Bob, the public accounting firms are hiring less and less right now. And they are also cutting professionals at all levels, including those who have less than 2 years of experience and don't even have a CPA yet.

    We may be stuck with the 150 hour requirement but we are not stuck with the way the audit firms and the schools look at how that requirement is going to be met. Are we sure the firms and other employers are still expecting the same things form the universities given this requirement and the challenges it presents for students?

    Thanks to Linda, Amy, and Bob for input.

    http://goingconcern.com/2009/12/are-new-graduates-getting-sque.php

    Francene

    December 10, 2009 reply from Bob Jensen

    Hi Francine,

     Firstly I don’t think the CPA firm employment outlook is all that bad unless the Supreme Court strikes down Sarbanes-Oxley (SOX) and the PCAOB. Perhaps the big firms are cutting back only temporarily in fear of  losing SOX. Losing SOX at this point in time would be a disaster for auditing in general since the loss of audit fees might well push firms over the brink where auditing profits are no longer sufficient to off set the risk of billion dollar lawsuits.

    Until Wall Street managed to get SOX in front of the Supreme Court, the outlook for accounting graduates was much better than all other business school disciplines. There were other bright spots.

    Accounting Majors in Demand
    Even when the economy is down, there is room for top students in the profession.   The National Association of Colleges and Employers’ 2009 Student Survey found that, even though students in the class of 2009 were graduating with fewer jobs available, accounting majors are still in high demand. Accounting and engineering graduates were among those majors most likely to have already found jobs.   Accounting majors expect to earn an average starting salary of about $45,000, while engineering grads expect to earn $58,000.
    Journal of Accountancy, July 2009 --- http://www.journalofaccountancy.com/Issues/2009/Jul/AccountingMajors.htm
     

    Robert Half Survey Update --- http://www.rhi.com/GFEM
    "Employment outlook grim in 2009, but not for accountants," AccountingWeb, January 15, 2009 ---
    http://www.accountingweb.com/item/106818

    "Global Employment Financial Monitor for 2009-2010" (free download from Robert Half) ---
    http://www.rhi.com/GFEM

    Executive Summary
    The accounting and finance professions have not been immune to the effects of the global financial crisis. Two-thirds of hiring managers we surveyed said their accounting and finance departments have been affected by current economic conditions.

    Yet, for many employers, good accountants are still hard to find. More than half of all respondents said they were having difficulty locating skilled job candidates, and financial professionals remain in short supply in parts of the world. Even where job candidates compete for relatively few open positions, many managers are concerned about losing their most valuable team members to other job opportunities.

    As positions are consolidated and fewer new employees added, financial professionals are taking on more work and experiencing increased stress. In response, managers are taking steps to help their employees remain motivated and productive, survey results show.

    The hiring process is taking longer today, in part due to budget constraints but also because companies feel they can be more selective. When hiring at the executive level, businesses seek leaders with the industry experience and initiative necessary to seize any possible competitive edge.

    Manpower Survey Guide Issue 75 ---
    http://www.accountingweb.com/item/96782

     

    The small business outlook is indeed grim and that reverberates to accounting firm business and employment needs, but there are signs that the Obama Administration may pull out the stops to boost the small business economy. But don't hold your breath for success of a small business surge --- http://www.accountingweb.com/item/95831

    In my estimation, hiring of entry level graduates will surge ahead unless the Supreme Court destroys the entire auditing profession.

    Bob Jensen


    Question
    What's the most fun when you're on the road Tom Selling (even if your not exactly a "tax man")?

    Answer Choices

    1. The billings
    2. The expense reimbursements
    3. The tax deductions
    4. The difference between the amounts in Answers 2 and 3 above

    "A Tax Man Takes Account Of His Life CPA Lives Better, Works Less Thanks to Art of Deduction," by Laura Saunders, The Wall Street Journal, April 5, 2011 ---
    http://online.wsj.com/article/SB10001424052748703696704576222590253291266.html?mod=WSJ_PersonalFinance_PF4

    In the thick of tax season, most certified public accountants are chained to their desks grinding out returns.

    Doug Stives, a CPA from Red Bank, N.J., went skiing in Utah.

    "I always dreamed of coming here for peak conditions," he said in mid-March between runs at Snowbasin Resort.

    The trip is among the many perks that have accrued from his decision, in 2006, to become, in effect, The Most Tax-Efficient Man in America. The experiment has led to a new career, frequent travel and obsessive documentation of expenses, such as a $6 hot dog he recently bought in the Philadelphia airport.

    The "aha" moment came to him, he says, after a college approached him about a teaching gig and he realized he could put into practice many of the tax strategies he had learned over the decades.

    Step One was to change jobs. Mr. Stives had been a partner for 36 years at The Curchin Group, an accounting firm. By accepting an offer to teach tax and accounting courses full-time at the Leon Hess Business School of Monmouth University in New Jersey, he was able to tap into a broad array of tax-free employee benefits not available to him at the firm.

    Step Two was the formation of Doug Stives LLC, the separate consulting business to which he attributes an impressive array of expenses. In general, people who are employees and have side businesses are often in the best position to maximize the tax code's benefits, say experts. Mr. Stives calls this "the best of all worlds."

    The result, says Mr. Stives, is that while he earns less than 75% of his earlier pay, he takes home almost 90% as much. And he says he reaps another $40,000 a year in tax-free benefits from his college gig. Among other things, the school adds to his 401(k) contribution and provides tax-free, discounted health plans for Mr. Stives and his wife, plus disability insurance. As a partner in the accounting firm, he had to fund such expenses himself.

    Not that all is perfect now. One peeve: dealing with what he calls "airline nonsense"—long lines, rising fees and canceled flights. But overall, he says, "my quality of life is so much higher."

    His wife of 40 years, Elizabeth Stives, agrees. "We travel so much now for his business," she says. "Next is Lake Tahoe."

    Continued in article

    Jensen Comment
    Tom is probably not the best person to ask about this since I don't think he takes his wife on most of his many trips. However, back when I was consulting and/or making presentations all over the U.S., Canada, Mexico, Europe, sometimes New Zealand and Asia I typically took my wife along for our expense-paid and/or tax-deductable holidays ---
    http://faculty.trinity.edu/rjensen/Resume.htm#Presentations

    I think I enjoyed these "holidays" more because they were tax deductible or they earned me a profit after expenses. I don't recall many away-from home adventures that were strictly out-of-pocket.


    Mathematics Careers --- http://www.maa.org/careers/


    Free PSAT Practice Exams ---
    http://www.testpreppractice.net/PSAT/Default.aspx

    "SAT Prep on the Web: : A) a Game; B) Online Chat; C) All of the Above," by Katherine Boehret, The Wall Street Journal, November 3, 2010 ---
    http://online.wsj.com/article/SB10001424052748704462704575590383273883818.html

    This Saturday, high-school students around the country will sit for hours of silent testing that will determine some portion of their future: That's right, it's SAT time. For both parents and kids, the preparation for taking the standardized test is stressful and expensive, often involving hours of studying and several hundreds of dollars spent on classes, workbooks and tutors. And many kids will take these tests more than once.

    So this week I tried a Web-based form of test prep called Grockit that aims to make studying for the SAT, ACT, GMAT, GRE or LSAT less expensive and more enjoyable. Grockit.com offers lessons, group study and solo practice, and does a nice job of feeling fun and educational, which isn't an easy combination to pull off.

    A free portion of the site includes group study with a variety of questions and a limited number of solo test questions, which are customized to each student's study needs. The $100 Premium subscription includes full access to the online platform with unlimited solo practice questions and personalized performance analytics that track a student's progress. A new offering called Grockit TV (grockit.com/tv) offers free eight-week courses if students watch them streaming live twice a week. Otherwise, a course can be downloaded for $100 during the course or $150 afterward. Instructors hailing from the Princeton Review and Kaplan, among other places, teach test preparation for the GMAT business-school admissions test and SAT.

    For the sake of testing, I focused on the SAT and plunged back into the depths of reading, writing and (gulp) math to get a sense of what students see and do on Grockit.com. In a short period of time, I found myself wanting to go back to the site to get better at certain sections or to earn more Experience Points, which result in badges and unlock new levels of study, both of which can be optionally posted to outside networks like Facebook or Twitter. By default, everyone can see one another's points, which invites healthy competition; these can also be hidden if you'd rather keep them private.

    I tested both the free version of Grockit.com, which includes an SAT writing diagnostic test, and the extra offerings of a $100 Premium account, including diagnostic tests for writing, reading and math to evaluate my strengths and weaknesses in taking the SAT. The free version had too many messages that constantly notified me of what I could do with a paid account and prompted me to upgrade.

    Along with completing practice questions with strangers and instructors, I got a friend of mine to also use Grockit.com so we could compete together in Grockit's Speed Challenge Games. These are included in the free portion and they reward the fastest person who answers a question correctly—but also display incorrect guesses, thus narrowing the possible answers for those who don't answer first. It was more fun for me to play against someone I knew, but I can imagine kids preferring the anonymity of competing with strangers when they don't answer questions correctly.

    In an introductory video, Grockit founder and chief product officer Farb Nivi describes the site by saying, "It's like having a complete multimedia textbook and workbook online, at your fingertips." But for kids (and from my experience, adults), the computer isn't an easy place to concentrate. On any given PC, especially one used by a teenager, instant-message indicators are chiming, Facebook updates and Twitter tweets are waiting to be checked, music is playing in the background and emails are flowing into inboxes. Plus, the Grockit site is just a tab away from other websites and distractions. And the site has no way of working in a distraction-free mode, like how the new Microsoft Office for Mac offers Full Screen View, which quiets any alerts or pop-up distractions.

    It also isn't necessarily comfortable for students to read extensive text (like in reading questions for the SAT) on a vertical computer screen. The site will run on the iPad, which can be held on a lap for more comfortable reading, but many students don't own one of these.

    Part of the way Grockit is made more fun is by purposely incorporating social networking into the experience. As people work on questions, they can instant message with one another in a right-side panel about tips for answering questions or simply for commiserating about studying. These IMs don't make indicator sounds, so they aren't too intrusive, but they can't be fully closed. I saw several chats among teens about nothing in particular, as well as some test-taking tips from instructors and other students.

    Grockit encourages users to "be nice" in chats because all conversations are logged; people can also flag one another for offensive remarks. Chats are also archived on your page so you can reread them for tips and study hints. If you find someone's tip helpful or if you simply like a person, you can award him or her with Grockit Points, which show up beside a name and profile photo. Users' ages or last names aren't displayed.

    Grockit offers one-on-one tutoring for a fee of $50 an hour, and I tried one session for math. My instructor and I used Skype to audio chat throughout the session and he took advantage of a whiteboard in Grockit, where he could write out the steps in an algebra problem to demonstrate how to solve for X.

    Around 40 instructors are employed for Grockit, but anyone can run a practice session, even other students. I signed up for a scheduled practice session at 8 p.m. that I assumed was run by an instructor, and later found out it was run by a student. Grockit instructors can also pop into sessions at any given time to help students, and one did during my session. Grockit works on a system of transparency so users can evaluate all teachers. My tutor had five-star rating and did a great job reminding me of algebra rules.

    If you're looking for an inexpensive and more enjoyable way to study for big tests, Grockit is a viable and easily accessible option. But its proximity to the rest of the Web could prove much more distracting than the old SAT workbook.

    —See a video with Katherine Boehret on Web-based test-prep software at WSJ.com/PersonalTech.
    Email her at mossbergsolution@wsj.com

    Bob Jensen's threads on edutainment are at
    http://faculty.trinity.edu/rjensen/000aaa/thetools.htm#Edutainment


    GRE  Exam Prep on the Web

    http://www.greguide.com/


    http://www.greguide.com/gre-practice-tests.html
     


    Hot Academic Jobs of the Future

    Note that due to shortage of supply of PhD accountants, newly-hired accounting PhDs are generally among the highest paid faculty in their ranks such as newly hired assistant professors of accounting now being paid well over $120,000 for nine-month contracts in major universities. In most instances accounting assistant professors get significantly higher offers than their counterparts in science, humanities, and engineering. They may not do much better than new hires in law schools. Medical schools have such complicated ways of paying faculty, that comparisons of salaries of medical schools with all other disciplines in a university are virtually impossible. For example, medical faculty sometimes get bonuses for clinical services in university hospitals.

    A June/July 2009 AACSB report says the shortage of accounting PhDs is getting worse instead of better, particularly as the supply of new PhD graduates in accounting declines while demand for accounting faculty explodes (accounting is probably the only business discipline where demand for graduates has either held steady in corporations or increased in public accounting):
    "Doctoral-Level Faculty Numbers Continue to Decline," AACSB, June/July 2009 --- http://www.aacsb.edu/publications/enewsline/datadirect.asp

    And yet opportunities for graduates of accounting doctoral programs is totally ignored in the latest article in the Chronicle of Higher Education about the hottest academic jobs of the future. If I were advising a confused undergraduate student who is contemplating a career in academe, I would say look more closely at accounting, including the warts of virtually all accounting doctoral programs --- http://faculty.trinity.edu/rjensen/theory01.htm#DoctoralPrograms

    "Hot Academic Jobs of the Future: Try These Fields," by Lee Roberts, Chronicle of Higher Education, July 10, 2009 --- http://chronicle.com/weekly/v55/i41/41b02201.htm?utm_source=at&utm_medium=en

    Green chemistry

    Green chemistry focuses on eliminating the use of toxic chemicals in chemistry without stifling scientific progress. Paul T. Anastas, a Yale University chemist, founded the field in 1991. As it grows in importance, more institutions are expected to offer master's degrees and doctorates. Among the universities with green-chemistry programs are Carnegie Mellon and Yale Universities and the Universities of Oregon, Scranton, and Massachusetts at Lowell.

    Terry Collins, a chemistry professor at Carnegie Mellon who heads the university's Institute for Green Science, thinks the intellectual rationale for the field is strong. "It hasn't gotten a lot of federal support, but I think that's going to change," he says. One reason: Mr. Anastas has been nominated by President Obama to head the Environmental Protection Agency's Office of Research and Development.

    Energy

    Threats to human society by the consumption of limited resources have sparked a race to find alternative energy sources that are sustainable, efficient, and safe for the environment. Among the leaders in this research mission is the Energy and Resources Group at the University of California at Berkeley. The interdisciplinary group has been devising technical and policy alternatives to unsustainable energy and resource use for the past 30 years.

    The Energy Efficiency Center at the University of California at Davis identifies promising energy-efficient technologies and develops viable business ventures around them. Established in 2006 with a challenge grant from the state, the center focuses on transferring technology from academe to the marketplace.

    Boston University's Center for Energy and Environmental Studies, meanwhile, specializes in the fields of energy and environmental analysis.

    Gerontology

    Not only are professors aging — everybody else is, too. The aging process will take on a more prominent role in society as the baby-boom generation ages, making studies like gerontology a growth area, says Arthur Levine, president of the Woodrow Wilson National Fellowship Foundation.

    The oldest and largest school of gerontology in the world is the Davis School of Gerontology at the University of Southern California. It has conducted research in molecular biology, neuroscience, dem-ography, psychology, sociology, and public policy on aging since 1975.

    The Universities of Kansas, Kentucky, Maryland at Baltimore, and Massachusetts at Boston are among those offering doctoral programs in the field.

    Education

    The Bureau of Labor Statistics projects that the number of postsecondary educational administrators will increase by 14 percent from 2006 to 2016.

    "The leadership turnover in education is going to be tremendous in the coming years," said Mark David Milliron, president and chief executive of Catalyze Learning International, an education-consulting group in Newland, N.C. "Folks are scrambling to fill the C-level pipeline; as a result, Ph.D.'s and Ed.D.'s are in high demand, and will be for some time."

    Nanotechnology

    A nanometer, one billionth of a meter, is about 10,000 times narrower than a human hair. Nanotechnology is the study of the control of matter on an atomic and molecular scale. It has the potential to create materials and devices in fields as diverse as electronics, energy production, and medicine.

    Among institutions that offer programs in the growing field are the Universities of Washington and North Carolina at Charlotte; the State University of New York at Albany; and Arizona State, Louisiana Tech, Pennsylvania State, and Rice Universities.

    Health policy

    Just as gerontology will become more important as the population ages, health-related fields and health-care policy will remain vital in coming years. Some of the influential universities for health policy and management are Harvard, Johns Hopkins, and New York Universities.

    Information technology

    Harry Lewis, a Harvard professor of computer science and one of the authors of Blown to Bits: Your Life, Liberty and Happiness After the Digital Explosion (Addison-Wesley, 2008), believes information technology will remain a growth area in the coming years. The Bureau of Labor Statistics agrees, projecting that among selected occupations requiring a doctoral degree, computer and information science will have one of the largest growth rates — 22 percent — from 2006 to 2016.

    Some of the better-known programs in information technology are those offered by the University of California at Berkeley, the Georgia Institute of Technology, the Massachusetts Institute of Technology, and Stanford University.

    Engineering

    There always seems to be a high demand for engineers of one kind or another, and the next decade should be no exception. Engineering comprises such a broad array of studies and competencies that it can lead to vastly different careers. In especially promising fields, the Bureau of Labor Statistics sees environmental engineering experiencing 25-percent growth between 2006 and 2016, and industrial and biomedical engineering each experiencing about 20-percent growth in that time.

    Jensen Comment
    I think that for many years to come, new accounting PhDs will have many more choices about where to accept job offers and what they will earn in their new jobs at colleges and universities.

    July 10, 2009 reply from Patricia Walters [patricia@DISCLOSUREANALYTICS.COM]

    Full disclosure: I'm clinical faculty and had an 12 year gap between my two academic lives. I have a 3-year contract (which I was glad didn't come up for renewal this year).

    In my view, this salary inversion (I believe your ratio is typical) is one of the costs of having tenure. I personally don't think of it as a "penalty" although I do understand why tenured faculty feel that way.

    Rather, I view this differential between tenured faculty salaries and other market-based salaries (whether in or outisde of academia) as the market price for bearing the risk of losing one's job (which tenure track faculty is still subject to).

    I don't know but wonder if there is any data on the percentage of tenure track faculty who actually are ABLE to stay at their first school.

    Pat

    July 10, 2009 reply from Bob Jensen

    Hi Pat,

    Remember that in major universities, publications in leading academic journals are the major things counted (not necessarily read) for performance raises. Teaching has a minimum threshold but is secondary to publication records.

    Salary compression arises from many suspected causes, not the least of which is that tenure protects the jobs but not the performance raises of faculty with declining research productivity. In accounting, the very few tenured faculty with increasing research productivity generally do move on to endowed chairs or at least named professorships in other universities.

    It’s surprising how many accounting faculty who are highly productive (relative to other accounting researchers and not chemists) in their non-tenure years actually burn out in terms of research. Some actually move into administrative positions because, in my viewpoint, they want out of both teaching and research and still obtain high performance raises.

    If you extract from the TAR publishing records of hot non-tenured accounting faculty, you get the picture that accounting researcher productivity generally declines as the tenure years pile on --- http://faculty.trinity.edu/rjensen/395wpTAR/Web/TAR395wp.htm

    Universities also take advantage of the fact that salary is only one of the factors leading to family decisions to not move to new towns. There is a stickiness due to spouse employment, children in good schools that they really like, transactions costs of home selling, unwillingness to give up friends and other neighbors, unwillingness to depart colleagues at work, and just plain fear of the unknown.

    Another factor that I tended to ignore (except for one time) was the risk of giving up tenure in the old job for having to go through the tenure process once again in a new job. Although the University of Maine gave me the Nicolas Salgo endowed chair and tenure when I moved from Michigan State, I became the KPMG Professor at Florida State without being given tenure in advance. Trinity University gave me the Jesse Jones endowed chair without giving me tenure up front.

    In hindsight, things worked out for me, but I can name at least one instance (at Notre Dame) where a well known accounting professor given a chair and then denied tenure afterwards.

    Bob Jensen

    Second June 10, 2009 replay from Patricia Walters [patricia@DISCLOSUREANALYTICS.COM]

    Bob:

    You are of course right on all counts above. I would add that perhaps the primary reason I left academic in 1994 was because I did not believe that I would have the fortitude to do the necessary research to get tenure. I knew myself well enough then to realize that I would put most of my efforts into my teaching and so be constantly on the move. I also have no regrets about my years at the CFA Institute. I believe my current teaching is better because of the work and experience I had there. There are huge personal costs to these moves, let alone the need to be thinking about a job search. This is not to say that I don't also have to write to maintain my academic qualification for AASCB purposes. It just doesn't have to be the 'accountics' research that is what's wanted in most of the top-tier journals.

    There are also trade-offs between cash and quality of life that academics must make which are not much different that those other professionals make. There is money to be made in consulting and continuing ed training by academics even though the former may be more dependent on research than the latter. One of the aspects of academia that I like, beside teaching and interacting with students at the university, surprisingly is that, if an opportunity comes along to do consulting or training work, I can say 'no'. Something one cannot do (normally) without consequences in a full-time job outside of academia. In that respect, I can create my own balance between money and quality of life.

    The current trade-off I'm personally struggling with is living in NJ when I really want to be living on my farm in VA and this struggle is despite the fact I very, very much like Fordham, its students, and my colleagues. It is a great place to work.

    Your comments about performance raises are interesting. Clinicals at Fordham are not eligible for such raises....all we can do is negotiate at contract renewal times. I have the impression that these raises are not all that terrific regardless of the amount of research one does, but I admit to not having first hand experience.

    Pat


    Accounting Jobs Information (free site)  --- http://www.accountingjobshelp.com/

    From My Accounting Degree.org
    Accounting Job Resources *** http://myaccountingdegree.org/accounting-job-resources-mega-list

    Articles --- http://myaccountingdegree.org/articles

    Accounting Degree Guide --- http://myaccountingdegree.org/
    Warning some of the for-profit degrees alternatives  aren't worth the time and money, especially the doctoral degrees. The job market pretty well does not recognize accounting PhD degrees unless the university has AACSB accreditation.

    For-profit universities in general should be viewed skeptically ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#ForProfitFraud
     


    I don't quite buy into all the words of advice below, but Millennials should consider this package of advice.
    Actually, they hear such horror stories about low hiring rates of college graduates that they probably are following this advice before it was written.
    "When Entitlement Meets Unemployment," by Andrew McAffee, Harvard Business Review Blog, August 29, 2011 ---
    http://blogs.hbr.org/hbr/mcafee/2011/08/when-entitlement-meets-unemplo.html?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date

    . . .

    Let's dispense with this idea that Millennials are somehow just smarter than all the generations that have come before. When I learn that over one-third of undergraduates these days show no significant gains after four years in vital skills like critical thinking and written communication, I have trouble seeing the broad genius of Gen Y.

    Many employers evidently agree; as of March, the unemployment rate among Millennials was, at 18.8%, almost twice that of the general workforce. Given this state of affairs, let me offer some advice to young job seekers that goes against current practices.

    Take the first decent job that's offered to you. Stop waiting for one that recognizes all your talents and plays to all your strengths.

    Offer your employer superior ROE — return on employee. Compared to your peers, give your employer more and ask less. Trust me on this: it'll be recognized, and you'll come across as a huge breath of fresh air.

    Take every chance offered to you to learn a new skill.

    Learn to serve, not just to lead. Of course you think you could do a better job running the place; everyone else thinks they could, too. Until that happens, learn to be a good subordinate, teammate, or customer liaison. Humility and selflessness are two of those new skills you've just committed to learn after reading the previous bullet point.

    Keep in mind that self-esteem comes from achievement, not the other way around.

    You Millennials, through no fault of your own, have been dealt a bad hand; you're just starting out during the worst job market in decades. I wish you luck in the world as you navigate this, and I beg you to stop asking for Pilates rooms. Getting and keeping a job is workout enough these days.

     

    Added Jensen Comment
    McAffee hires mostly programmers and other tech graduates who are probably more demanding in job interviews (they all want the perks offered by Google). I think most history graduates and MBA school graduates are more grateful if they can just get a job offer.

     

     


    "European Business Schools Set Sights on U.S.:  Seeking U.S. students and a bigger global footprint, schools from Spain, France, and the U.K. are rushing to set up outposts on American soil," by Alison Damast, Business Week, June 17, 2010 ---
    http://www.businessweek.com/bschools/content/jun2010/bs20100617_473655.htm?link_position=link1

    Over the past decade or so, European business schools have been aggressive about reaching out to the American market, doing everything from forming alliances with U.S. schools to launching student- and faculty-exchange programs. Now a handful of elite European schools are taking this a step further, trying to create a more substantial presence in the U.S. by opening up traditional brick-and-mortar campuses.

    In the past few months, schools from France to the U.K. have announced plans to build campuses in the coming year in the U.S., including one planned outpost announced just last week. It's a strategic move by these institutions to increase their stature and influence in the American market, says Robert Bruner, dean of the University of Virginia's Darden School of Business (Darden Full-Time MBA Profile).

    "The U.S. is where the MBA was invented and, to some extent to establish a footprint in this market, is an additional means of legitimizing a school's brand and stature globally," says Bruner, who also chairs the Globalization of Management Education Task Force of the Association to Advance Collegiate Schools of Business, one of the leading business school accreditation agencies.

    Eye on the Hot Spots

    That's a viewpoint that these European B-schools are taking as they cautiously attempt to entrench themselves in the U.S. A number of the schools that have announced plans to build campuses are well-regarded universities in Europe, but not as well-known by students outside their home countries. By starting degree programs in such hot spots as Miami and New York, they say they will be able to enhance their global reputation in both the academic and business community in the U.S. as well as expand and enhance the degree programs they offer students. Another underlying motivation is the opportunity for them to recruit more American students to their campuses. At most European business schools, Americans make up just a handful of the students in the degree programs, making it hard for them to build up a strong alumni base in the U.S., deans at these schools say.

    Many European business schools will be watching closely to see whether these business schools will be successful at branding themselves in the U.S., says Dave Wilson, president and chief executive of the Graduate Management Admission Council, which administers the Graduate Management Admission Test (GMAT). Of U.S. GMAT test takers, the vast majority, or about 98 percent, send their test scores to U.S. schools, leaving just a handful of American students who consider non-U.S schools. The European schools will have to work hard to attract these students to their U.S. outposts, Wilson says.

    "These are sort of pioneers who are breaking new ground, and it will be a challenge to get U.S. students," Wilson says. "I think most European schools are going to sit back and watch, because this is really a brand new bet for them."

    Manhattan Opening

    Just this May, Spain's IESE Business School (IESE Full-Time MBA Profile) opened the doors of its New York campus on West 57th Street, a six-story building with two classrooms, breakout rooms, and office space. The school had been planning its U.S. campus for three years and has spent close to $20 million refurbishing the building, says Eric Weber, an associate dean of IESE and director of the school's New York office. Says Weber: "We're pretty bullish about the U.S."

    The school will not be offering an MBA program at the New York office, but it has ambitious plans for the site, which include promotion of its custom programs for executives, establishing a research center on global business, and setting up activities for alumni and corporate sponsors. Professors from the school's Barcelona campus will take students to New York for several weeks, where they will study business in the context of New York City, Weber says.

    Continued in article

    Jensen Comment
    One competitive advantage that foreign schools will bring to the table is to play on the wanderlust of the typical four-year college graduate. Before becoming tied down with a spouse and children, the lure of Europe is especially appealing to some graduates. Graduates recall hearing in class about all the world adventures of many of their professors, especially professors in humanities who often focus their own research on romantic European history, language, and literature. Students may see a European business school degree as having greater opportunity for job offers in Europe --- which may be a myth in many instances.  Of course other students may lean toward Asian-school degrees for the same reasons. For a while Russia was popular until living in Russia became so dangerous and Russian universities became more corrupt.


    "Howard University’s Study on Attracting Minorities to Accounting," Financial Accounting Foundation, Undated ---
    http://www.accountingfoundation.org/diversity

    The Howard University School of Business Center for Accounting Education recently published a study "Attracting Underrepresented Minorities to the Accounting Profession: Insights into Diversifying the Talent Pipeline" (April 2014)  that sheds light on the lack of diversity in the accounting profession.

    More specifically, the study focuses on the challenges in attracting students to the career:

    Despite decades of intensive efforts, the accounting profession has not reached its diversity goals. One reason is the misperceptions about accounting as a career. Studies suggest that young people, including underrepresented minorities, hold the profession in relatively low regard, do not understand what accountants do, and do not appreciate the career opportunities the profession offers.

     
    It turns out that this lack of esteem is widely shared by parents and educators, the two groups with the most influence on young people’s academic and career choices.

    Improving the quality of accounting curriculum and expanding internship and scholarship opportunities are essential elements in creating a new, meaningful perception of the accounting profession.


    While the accounting profession is expected to grow by 16 percent between 2010 and 2020, applications by African Americans and Hispanics to accounting programs at colleges and universities actually are declining, the Howard study notes.

    Additionally, African Americans and Hispanics – who together comprise about 30 percent of the U.S. population – represent just four percent of all partners in the accounting profession,
    according to data published by the American Associations of CPAs. Caucasians still hold approximately 75 percent of the professional positions in accounting, and 90 percent of the partnerships.

    All of this is occurring while the number of minority-owned businesses is projected to skyrocket.

    Table not reproduced here

    Partnering to Form a Pipeline for Diversity


    As a result of the study, the Howard Center for Accounting Education has partnered with the American Institute of CPAs to establish the “Pipeline Working Group” to create a unified, nationwide initiative that reaches out to underrepresented minority students at high schools, community colleges and universities, as well as to their teachers, guidance counselors, and parents—to educate them about the profession.

     
    The notion of working collaboratively to help increase the pipeline of diverse talent into the industry as a whole is a new idea – and one that deserves support—FAF President & CEO Terri Polley
     
    The Working Group’s members include representatives from Deloitte, EY, KPMG, PwC, BDO, the National Association of Black Accountants, the Association of Latino Professionals in Finance and Accounting, the New Jersey Society of CPAs and other organizations.

    The Howard study outlines a five-pronged approach to diversifying the talent pipeline, through the development and implementation of:
    1. A national marketing and awareness initiative highlighting the benefits and intellectual rewards of accounting as a profession, aimed at students who are making career choices.
    2. School-based programs intended to promote accounting as a high-value career choice, including business career academies, summer development programs, and other community programs.
    3. Initiatives aimed at helping minority students earn their CPA and other professional certifications.
    4. Internships and career exploration opportunities to provide high school and college students the means to become familiar with the accounting profession.
    5. Programs that both increase the number of accounting scholarships available to minority students and that more widely publicize scholarships that already are available.

    A Call to Action


    According to FAF President & CEO Terri Polley, the pipeline initiative represents a call to all in the profession to join a critically important conversation about the future.

    The FAF has begun to hold conversations with the Center for Accounting Education and the AICPA regarding the role that the FAF, FASB and GASB – and other stakeholders – can play in the development of the diversity pipeline initiatives.

    Ensuring the success of the pipeline initiative is in the best interests of all in the accounting profession. Therefore, it is expected that the collaboration and support of firms, state societies, and institutions will determine the success and longevity of the pipeline initiative. Organizations interested in the cause can educate their stakeholders on the key issues facing the profession and invite leaders to share their ideas on how to promote the five initiatives.

    Jensen Comment
    An extremely important, in my viewpoint, initiative is the KPMG initiative of getting role model faculty into colleges and universities that inspire minority students who take an early course in accounting or business.

    KPMG Foundation Grants (other accounting firms contribute to this Foundation) ---
    http://www.kpmgfoundation.org/foundinit 
    The Minority Ph.D, Program Initiative ---
    http://www.phdproject.org/

    The PhD Project was founded upon the premise that advancements in workplace diversity could be propelled forward by increasing the diversity of business school faculty. Today, our expansive network of supporters, sponsors and universities helps African-Americans, Hispanic-Americans and Native Americans attain their business PhD and become the business professors who will mentor the next generation of leaders.

    "KPMG Foundation Celebrates 15th Year of Minority Accounting Doctoral Program," SmartPros, August 1, 2009 --- http://accounting.smartpros.com/x67298.xml 

    The KPMG Foundation is marking the 15th anniversary of its Minority Accounting Doctoral Scholarship program by announcing today it has awarded a total of $390,000 in scholarships to 39 minority doctoral scholars for the 2009 - 2010 academic year.

    Of the awards, eight are to new recipients scheduled to begin their accounting doctoral program this fall, three are to new recipients who have already begun programs, and 28 are renewals of scholarships previously awarded.

    Each of the scholarships is valued at $10,000 and renewable annually for a total of five years. The Foundation established the scholarship program in 1994 as part of its ongoing efforts to increase the number of minority students and professors in business schools – and has since awarded $8.7 million to minorities pursuing doctorate degrees.

    “We’re proud of the achievements of our program over the last 15 years, and we have seen a healthy increase in the number of minority faculty members at our nation’s business schools, although more work needs to be done,” said Bernard J. Milano, President of the KPMG Foundation and The PhD Project. “That’s why we continue to award new scholarships each year and we remain committed to our mission.”

    Together with The PhD Project, a related program whose mission is to increase the diversity of business school faculty, the Minority Accounting Doctoral Scholarship program has helped to more than triple the number of minority business professors in the United States since The PhD Project first began in 1994. Today, there are 985 minority business school professors teaching in the United States. Nearly 400 minority students are currently enrolled in business doctoral programs.

    The Minority Accounting Doctoral Scholarship recipients come from a wide variety of cultures and backgrounds. This year’s new recipients are:

    Continued in article

    Jensen Comment
    Under the guidance of KPMG Executive Partner Bernie Milano this program became more than a money awards program. KPMG works with some recipients in customized counseling and assistance when problems arise for certain individuals still studying for their doctorates. Various types of problems arise, including some crises within families.

     

    Minority Hiring Success Varies Greatly by Discipline:  Law, Business, and Sciences Have the Worst Records
    The major cause lies in the supply chain of PhD graduates

    One of the reasons for the shortage of minority undergraduate students in accounting has been the lack of role models teaching accounting courses in college.

    "Whatever Happened to All Those Plans to Hire More Minority Professors?" by Ben Gose, Chronicle of Higher Education, September 26, 2008
    http://chronicle.com/weekly/v55/i05/05b00101.htm?utm_source=at&utm_medium=en

    Duke U.: Success rates vary by discipline

    The black faculty Strategic Initiative began in 1993, on the heels of the failed effort to add at least one black professor to every department.

    As of the fall of 2007, Duke had 62 tenured or tenure-track black professors, accounting for 4.5 percent of the faculty. But while the raw number is double that of 20 years ago, it masks tremendous variation within the university. Black professors remain rare in the law school, which has one black professor, the business school, with two, and the natural sciences, with three.

    Karla FC Holloway, an English professor who served as dean of humanities and social sciences from 1999 to 2005, says each unit of the university should be held accountable for its record on diversity. "There has been growth in arts and social sciences, and medicine, but in some ways that growth has arguably allowed other schools or divisions not to work as aggressively with this effort," she says.

    Mr. Lange, the provost, concedes that some parts of the university have fallen short. He says he is working closely on the issue with the law school's dean, David F. Levi, and other officials. "They have made offers and have not been successful at times," Mr. Lange says. "They're putting in a lot of effort to do better."

    Duke makes sure that when black job applicants visit the campus, they meet other black faculty members — and not just potential colleagues in the department to which they're applying. The university also is taking small steps to widen the pipeline. Duke has financed two postdoctoral positions for minority candidates each year, with the hope that it will eventually hire some of them for tenure-track faculty positions.

    In 2003, Duke started yet another faculty initiative related to diversity — but this time the scope was expanded to include women and all underrepresented minority groups. "We needed to recognize that diversity had come to include a substantially broader set of concerns," Mr. Lange says.

    Ms. Holloway worries that the broader focus may give deans and department chairs an out: "People can say, 'I've hired enough women, and that makes up for the lack of minorities.'"

    Harvard U.: Uneven progress on racial diversity

    Harvard created an office of faculty development and diversity, to be headed by a senior vice provost, in 2005, shortly after announcing that it would spend $50-million to help diversify the faculty.

    In the more than three years since that commitment, the university has made modest progress in diversifying its faculty, and some professors believe that the new office deserves some of the credit. Kay Kaufman Shelemay, a professor of music and of African and African-American studies, says the office has done a good job compiling statistics related to diversity and working with deans and department chairs to ensure that they cast a wider net in their searches. "There is no doubt that the office established by former President Summers both invigorated and centralized our institutional efforts," Ms. Shelemay says.

    Women now make up 16 percent of tenured and tenure-track faculty members in the natural sciences, up from 12 percent in 2004-5. In the humanities, 32 percent of the professors are women, up from 30 percent, and in the social sciences, 31 percent are women, up from 28 percent.

    The changes for the professional schools over that period varied — law, engineering, and government all saw significant gains for women, while the proportion of female faculty members actually dropped in the schools of divinity, dentistry, and education.

    The university's progress on racial diversity, meanwhile, has been uneven. More than 6 percent of the tenured and tenure-track faculty members in the social sciences are black, but black professors make up 1 percent or less of faculty members in the natural sciences and the humanities. Hispanic professors make up no more than 2 percent of faculty members in each of those three areas.

    In 2006, Harvard committed $7.5-million to improve child care on the campus — a primary concern of female faculty members. The university also just completed its third year of a summer program aimed in part at improving the pipeline for female and minority professors. The program allows undergraduates to spend 10 weeks in the research laboratories of science and engineering faculty members. More than half of the 400 participants have been women, and more than 60 percent have been minority students.

    Judith D. Singer, a professor of education who became senior vice provost for faculty development and diversity in June, says she was willing to take on the job because the climate "feels different" under Drew Gilpin Faust, Harvard's first female president. But Ms. Singer acknowledges that progress has been uneven among departments and divisions.

    "Addressing issues of diversity remains a challenge throughout higher education," she says. "We at Harvard, like our peer institutions, must do better."

    U. of Wisconsin at Madison: Progress in fits and starts

    The university undertook its Madison Plan in 1988, vowing to double the number of black, Hispanic, and American Indian professors by adding 70 new faculty members within three years.

    Progress has come in fits and starts. A Wisconsin official told The Chronicle in 1995 that the university hadn't made the progress it had hoped for. The number of tenured or tenure-track black professors, for example, increased only 61 percent, to 37, in that seven-year span. The total then surged to 60 by 2001, only to stall. Over the six years ending in 2007, the number of black professors dropped to 51.

    Mr. Farrell, the provost, argues that part of the challenge is increased competition. While institutions like Wisconsin were among the first to spell out ambitious plans to diversify the faculty, now almost every institution has one. "We compete with everybody else for the pool that exists," he says.

    Damon A. Williams, who became vice provost for diversity and climate in August, says Wisconsin and other universities must seek out minority job candidates more aggressively. For example, he wants to see Madison recruit aggressively at the annual Institute on Teaching and Mentoring, sponsored by the Southern Regional Educational Board and attended by hundreds of minority Ph.D. candidates.

    "We have to be visible and present at that meeting and be willing to sell ourselves to them," he says.

    Wisconsin's record with Hispanic and American Indian faculty members has been stronger. The university had 77 Hispanic professors in 2007, up from 53 in 1998, and 13 American Indian professors, up from four in 1998.

    The growth of American Indian studies — in a state that is home to several Indian tribes — has helped attract new American Indian professors to the campus, Mr. Farrell says. "Professors who visit say, 'OK, here's a place where people from our background can thrive, fit in, and have success.'"

    Still, Wisconsin and other universities must persuade more minority undergraduates to pursue academic careers, the provost says. The engineering school has developed a fellowship program, aimed primarily at minority graduate students, that encourages them to pursue research immediately. That program is being copied by the College of Letters and Science.

    "When students spend their first year or two just on class work," Mr. Farrell says, "they find graduate school is not nearly as interesting as they thought it would be."

    Virginia Tech: A bigger faculty role in hiring

    The university made an extraordinary effort to diversify its campus starting in the late 1990s, and it paid off: During the three years ending in 2002, the number of black tenured and tenure-track professors in the College of Arts and Sciences rose by more than 50 percent, to 17; the number of Hispanic professors more than doubled, to seven; and the proportion of female professors rose from 20.6 percent to 23.6 percent.

    Myra Gordon, an associate dean who left Virginia Tech in 2002, was the architect of the plan. At the time, faculty members complained that she had essentially taken over their role of hiring new professors.

    Mark G. McNamee, the provost since 2001, says that while the university remains strongly committed to diversifying the faculty, some of the tactics that were criticized have been reined in or eliminated. Now he and the deans offer input at beginning of the process but for the most part let faculty members have the final say in hiring.

    "It was a much more centrally controlled process at the time," Mr. McNamee says. "The deans are still engaged and have responsibilities, but they're not perceived as unduly influencing what the outcome is going to be."

    It is difficult to evaluate progress in the College of Arts and Sciences since then, because it was divided into smaller colleges several years ago. Over the four years ending in 2007, the university had a net increase of five black and five Hispanic professors. Black faculty members make up about 3 percent of the tenured and tenure-track professoriate, Hispanic faculty members less than 2 percent, and women 24.3 percent.

    In 2006 students protested the university's decision not to grant tenure to a black professor known for his activism on affirmative action and other causes. Mr. McNamee promised to establish a committee to study the role of race at the university. "When someone doesn't get tenure, that doesn't help us, but that's just the way it is sometimes," he says now.

    In August the committee released a plan that calls for a cluster of six new hires in Africana studies and race and social policy.

    Virginia Tech also frequently invites professors from historically black universities to deliver lectures on the campus, in part to elevate awareness of the university among those lecturers.

    "Once people know Virginia Tech," says Mr. McNamee, "they really like it a lot better than they think they're going to like it."

    Continued in article

    To its credit, the Big Four accounting firm KPMG, inspired heavily by Bernie Milano at KPMG, years ago created a foundation  (with multiple outside contributors) for virtually five years of funding to minorities to selected for particular accounting doctoral programs --- http://www.kpmgfoundation.org/foundinit.asp

  • Minority Accounting Doctoral Scholarships

    The KPMG Foundation Minority Accounting Doctoral Scholarships aim to further increase the completion rate among African-American, Hispanic-American and Native American doctoral students. The scholarships provide the funding for them to see their dreams come to fruition.

    For the 2007-2008 academic year, the Foundation awarded $10,000 scholarships (annually), for a total of five years, to 9 minority accounting and information systems doctoral students. There are 35 doctoral students who have had their scholarships renewed for 2007-2008, bringing the total number of scholarships awarded to 44. To date, KPMG Foundation's total commitment to the scholarship program exceeds $12 million.

    Financial support often determines whether a motivated student can meet the escalating costs of higher education. For most of those students, a return to school means giving up a lucrative job. For some, acceptance in a doctoral program means an expensive relocation. Still others need enough time to study without the burden of numerous part-time jobs.
    Jensen Comment
    This is more than just a pot of money. KPMG works with doctoral program administrators and families of minority candidates to work out case-by-case solving of special problems such as single parenthood. I think added funding is provided on an as-needed basis. The effort is designed to help students not only get into an accounting doctoral program but to follow through to the very end. It should be noted that although KPMG started this effort, various competing accounting firms have donated money to this exceptionally worthy cause. One of the reasons for the shortage of minority undergraduate students in accounting has been the lack of role models teaching accounting courses in college.

     

    Universities, if they are going to encourage the careers of women (and of everyone), she said, need to be willing to embrace “people with different values” and be sure that they are fully included. To the extent some men “will compete for anything,” Downey said, that should not set a standard where only women who share those values can succeed in academe. The success of women and men, she said, can be judged on their work and not competitiveness. “It’s no longer useful to have a ’sink or swim’ mentality,” she said.
    "New Questions on Women, Academe and Careers," by Scott Jaschik, Inside Higher Ed, September 22, 2008 --- http://www.insidehighered.com/news/2008/09/22/women

    Bob Jensen's threads on affirmative action in hiring and pay raises are at
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#AffirmativeAction


  • "The Two-Part CMA Exam for 2010," by James Martin, MAAW's Blog, March 20, 2010 ---
    http://maaw.blogspot.com/2010/03/new-two-part-cma-exam-2010.html

    Also see http://maaw.info/ArticleSummaries/ArtSumBrauschWhitney2010.htm

    Bob Jensen's threads on management accounting are at
    http://faculty.trinity.edu/rjensen/theory01.htm#ManagementAccounting


    His wife is even for sale and marked down at that!
    From The Wall Street Journal Accounting Weekly Review on April 8, 2011

    A Tax Man Takes Account of His Life
    by: Laura Saunders
    Apr 05, 2011
    Click here to view the full article on WSJ.com
     

    TOPICS: Accounting Education, Personal Taxation, Public Accounting, Tax Accounting, Tax Laws, Tax Planning, Taxation

    SUMMARY: The article describes the lifestyle of Doug Stives, a CPA from Red Bank, NJ, who now can enjoy peak skiing season conditions out west after leaving his job as a partner at accounting firm The Curchin Group. His full-time position is now an accounting professor at Monmouth University in New Jersey. All of his accounting and tax practice work is now done as a self-employed contractor reporting on Schedule C.

    CLASSROOM APPLICATION: The article is useful for a tax class discussing deductions , particularly on Schedule C, and for any class covering professional accounting work plans.

    QUESTIONS: 
    1. (Advanced) What type of income is reported on Schedule C as attached to U.S. Form 1040?

    2. (Introductory) How did Mr. Stives's move from being a partner at an accounting firm to a position as an accounting professor and director of the MBA program at Monmouth University allow him to change reporting of his income on his U.S. Form 1040? Be specific.

    3. (Introductory) How did that change in income reporting also change the deductibility of Mr. Stives's travel and other expenses?

    4. (Advanced) How could the IRS challenge deductibility of Mr. Stives's travel expenses? Be specific in your description of the theory behind the potential issue.

    5. (Advanced) Could you replicate Mr. Stives's approach immediately after college graduation? Explain your answer.
     

    Reviewed By: Judy Beckman, University of Rhode Island

    "A Tax Man Takes Account of His Life," by: Laura Saunders, The Wall Street Journal, April 5. 2011 ---
    http://online.wsj.com/article/SB10001424052748703696704576222590253291266.html?mod=djem_jiewr_AC_domainid

    In the thick of tax season, most certified public accountants are chained to their desks grinding out returns.

    Doug Stives, a CPA from Red Bank, N.J., went skiing in Utah.

    "I always dreamed of coming here for peak conditions," he said in mid-March between runs at Snowbasin Resort.

    The trip is among the many perks that have accrued from his decision, in 2006, to become, in effect, The Most Tax-Efficient Man in America. The experiment has led to a new career, frequent travel and obsessive documentation of expenses, such as a $6 hot dog he recently bought in the Philadelphia airport.

    The "aha" moment came to him, he says, after a college approached him about a teaching gig and he realized he could put into practice many of the tax strategies he had learned over the decades.

    Step One was to change jobs. Mr. Stives had been a partner for 36 years at The Curchin Group, an accounting firm. By accepting an offer to teach tax and accounting courses full-time at the Leon Hess Business School of Monmouth University in New Jersey, he was able to tap into a broad array of tax-free employee benefits not available to him at the firm.

    Step Two was the formation of Doug Stives LLC, the separate consulting business to which he attributes an impressive array of expenses. In general, people who are employees and have side businesses are often in the best position to maximize the tax code's benefits, say experts. Mr. Stives calls this "the best of all worlds."

    The result, says Mr. Stives, is that while he earns less than 75% of his earlier pay, he takes home almost 90% as much. And he says he reaps another $40,000 a year in tax-free benefits from his college gig. Among other things, the school adds to his 401(k) contribution and provides tax-free, discounted health plans for Mr. Stives and his wife, plus disability insurance. As a partner in the accounting firm, he had to fund such expenses himself.

    Not that all is perfect now. One peeve: dealing with what he calls "airline nonsense"—long lines, rising fees and canceled flights. But overall, he says, "my quality of life is so much higher."

    His wife of 40 years, Elizabeth Stives, agrees. "We travel so much now for his business," she says. "Next is Lake Tahoe."

    Mr. Stives, 64 years old, says he's too miserly to focus solely on maximizing deductions—a practice he calls a "rookie's mistake." In 2010, for example, he spotted a bonanza in "bonus depreciation" for large SUVs used in a business, but didn't need another car. "Sometimes my cheapness overcomes my love of tax savings," he says. "My wife will tell you I got her on sale."

    Instead, he says, he uses the tax code's many quirks as the means through which he can live a fuller life.

    Continued in article


    An Accounting Love Song
    One of Tom Oxner's former students (Travis Matkin) wrote and recorded this song a couple of years ago. It has now made it to U Tube --- http://www.cfo.com/blogs/index.cfm/detail/13525940?f=search


    The great strength of the AICPA is that it brings so many men and women together as members of a single profession. Individually, we do great things for American households, businesses and governments. Together, we are an even more powerful force for prosperity in the economy at large—we pool our knowledge and speak with one voice. In the face of many challenges, we—as a united profession—have a fantastic future ahead of us.
    AICPA Chairman Randy Fletchall’s inaugural speech delivered as he accepted the chairmanship of the Institute’s Board of Directors at the governing Council’s October 2007 meeting in Tampa, Fla. --- http://www.aicpa.org/pubs/jofa/jan2008/united_profession.htm
    AICPA=American Institute of Certified Public Accountants --- http://www.aicpa.org/
    AICPA Accounting Education Center --- http://ceae.aicpa.org/

    October 30, 2008 message from Barry Rice [brice@LOYOLA.EDU]

    Colleagues,
     
    I haven't seen anything on AECM about this but may have missed it.
     
    Registration for www.StartHereGoPlaces.com is available to both students and educators.

    "About This Site

    If you're a high school or college student interested in a successful career in business and accounting, The Start Here. Go Places. Web site is a free resource that can help you get there. You may be unsure of the path you want to take, and where to find consolidated resources to help you determine your career choices. Now's your chance to learn about all that the study of accounting and the pursuit of CPA certification has to offer—it's a path to achieving a successful, rewarding and challenging career.

    The site includes study information, simulation games, scholarship and internship listings, profiles of successful CPAs and career opportunities. It is brought to students and educators by the American Institute of Certified Public Accountants."

     

    "Why register for this free site? StartHereGoPlaces.com offers:


    E. Barry Rice
    AECM Founder

     

    Two States Partner to Offer New Student ePortfolios ---
    http://www.convergemag.com/story.php?catid=421&storyid=108084

    Accounting is the most popular major on US college campuses, according to the Job Outlook 2005 survey by the National Association of Colleges and Employers. The study found more college students are choosing to pursue accounting than any other discipline, followed by electrical engineering, mechanical engineering and business administration/management.
    CA Magazine, "The New IT Profession," April 2006 --- http://www.camagazine.com/index.cfm/ci_id/30481/la_id/1.htm


    2009 Best Careers:  Forget Accounting and Think Usability Experience Specialist or Ghostwriting
    Comparing Career Apples vs. Oranges vs. Fiats

    Jensen Comment
    To me this listing is nonsense. Anybody who thinks the job outlook and employment security for management consulting and ghostwriting is better than for a tenured college professor or CPA is nuts. Anybody who attempts to compare engineering and veterinarian careers with hair styling, physical therapy, and ghostwriting has to be nuts.

    The above listing ignores some of the job attributes that make some careers the most satisfying. For example, college professors generally love their 40-50 year careers because of the independence they have in choosing work-day schedules, to say nothing of the generous term breaks and summer freedom months, although there are pressures to conduct research and write that fill much of this supposedly "free time." But many college professors would not trade their time-freedom jobs for twice the pay on a routine grind that forced them to work under close supervision eight hours each day for 50 weeks per year. K-12 teachers do not get the daily time independence of college professors but they do get the summer freedoms (teaching summer school is usually an option rather than a requirement).

    Many people love their careers because of how the career itself expands their minds across the 40-50 years. College professors and physicians have to constantly renew their research and scholarship in order to keep up with or stay ahead of the times. Physical therapists and pharmacists who fill physician prescriptions at Wal-Mart also have to keep up with the times, but the effort needed to stay on top of their day-to-day jobs just cannot be compared with academic scholarship.

    I often thought that the most boring careers for 50 years running have to be such things as physical therapy, audiology, pharmacy, fund raising, hair styling, locksmithing, etc. What in the heck is a Usability Experience Specialist and how can I compare it with being a forensic accountant?

    The 30 careers mentioned above are too varied in terms of skill sets, income, and types of alternatives within a career. We can pretty well picture what a Hairstylist/ Cosmetologist will be doing for 50 years, but it is harder to envision what a management consultant or engineer will be doing from year to year. If a  person is a very good writer, why not write for yourself rather than write for a ghost?

    Some of the careers listed in the above top 30 have to be terribly boring day in and day out for 40-50 years. I'd rather be a college professor than be stuck in any of the 30 alternatives listed above. At the moment careers in accounting have stronger outlooks, although "job satisfaction" is hard to generalize since there are so many different types of accounting jobs ranging from the FBI to IRS agent to corporate accountant to being an auditor for an international firm to being a sole CPA practitioner on Main Street, USA.

    My advice to a young person is to take early moves that provide wide-ranging opportunities later in life, especially when entering the first year of college. I know a recent high school graduate who had to choose between a major state university and a pharmacy school (six years). She chose the pharmacy school in Boston. I think that was a mistake for an eighteen year old graduate from high school, because she's becoming too specialized before the first day of college. Going to a traditional university for the first year or two and then making some narrowing choices would be far better. Even majoring in accounting after the first year at a state university, she would have wide-ranging career alternatives vis-a-vis pharmacy school.

    I know some young clergy that are miserable in their careers. They love counseling and mission work and preaching. But the fund raising demands and the need to constantly draw in new people into the church in order to maintain sagging church budgets, building funds, and money for your own salary becomes depressing year after year --- and there's the reality of having to suck up to irritating, often elderly, people who constantly let you know that their happiness in the church is essential to your success. Clergy face the constant threat that irritating benefactors will join another church. At least a college professor is not stuck with the same irritating students for 40-50 years of life. I would rather have new and varied irritating students than Ebenezer Scrooge on my church board for 20 years.

    I think the above listing of supposedly top careers is more misleading than helpful to young people and their parents. Comparing such varied careers is even worse than comparing vegetables --- http://faculty.trinity.edu/rjensen/FraudConclusion.htm#BadNews


     


    The Secret of Why Bob Jensen Became an Accounting Professor and Not a Practicing CPA

    Nursing Schools Should Warn Students About Grueling Hours
    Nursing schools should do a better job preparing students for the grueling hours, often unrealistic expectations, and lack of respect that await them when they enter the work force, says an article scheduled for publication today in the July/August issue of Nursing Outlook.
    MIT's Technology Review, July 27, 2009 --- http://chronicle.com/article/Nursing-Schools-Should-Warn/47468/

    Jensen Comment
    Although I always mentioned the long hours faced by newly-hired CPAs, especially in tax season, I'm not sure I ever said enough about it to a point that I did not have some (I like to think only a few students) who really became upset over the long hours and pressures in CPA firms. Perhaps this has changed somewhat, but one of the problems that remains is that many newly-hired students have to travel much more than they expected as either CPA auditors or corporate internal  auditors. When out of town there's a tendency to work days and nights, sometimes in an effort to shorten the time on the road away from home.

    Truth Time
    When I became a CPA and worked for the largest accounting firm in Denver, I was also an avid, and unmarried, snow skier. I was even tempted to become a ski bum except that my entire family history made me fearful of living without income and security. I was also getting an MBA at the University of Denver and watched my professors work what seemed to me like 12 hours a week while living in the security of tenure for life. This seemed perfect for becoming having my ski time and still having guaranteed income for life.

    I even came to a point where I had an ink pen poised above a contract at Western State College in Gunnison, Colorado where I could get a tenure track position, in those days, with only a MBA-CPA credential. As I lowered the pen, I casually asked the Dean how far it was from Gunnison to Aspen (which looked to be less than 30 miles on the map). He said it depended upon whether it was summer or winter. The pass was closed in the winter such that the shortest route was over 200 miles by going around through Leadville.

    I dropped the pen and decided to accept a full-ride scholarship that Stanford University had offered me a few days earlier to enter the accounting doctoral program. The rest is history. I skied some while at Stanford, but after I got married at the dissertation stage of my studies, I gave up skiing and chasing wild women. More importantly I discovered that being a professional teacher and researcher was more fun and challenging than being a ski bum.

    It's probably a very good thing that I gave up being a ski bum. I always tended to be a bit of a hot dog skier who skied one or two notches above my real farm boy ability. Undoubtedly I would be dead or paralyzed if I'd truly become a ski bum.

    Interestingly as a professor and even as a retired professor I've worked longer hours year in and year out that most practicing CPAs. But this is a labor of love and a challenge to the mind and great relief from the boredom of leisure time.

    About 20 years ago I recorded a sloppy audio file about becoming a professor --- http://www.cs.trinity.edu/~rjensen/academ01.wav


    Harvard teaches rejection acceptance to students who've probably never experienced failure and never expected rejection as Harvard graduates

    How bad is the economy? Harvard University's career services office has started a new seminar to teach students how to deal with rejection, The Boston Globe reported. Among the lessons for students: the idea that there may be more qualified people than Harvard graduates for some jobs.
    Inside Higher Ed, April 22, 2009 --- http://www.insidehighered.com/news/2009/04/22/qt#197100

     

    It's so sad that Wall Street shot itself in the head rather than the foot!
    With Finance Disgraced, Which Career Will Be King?

    "With Finance Disgraced, Which Career Will Be King?" by Steve Lohr, The New York Times, April 11, 2009 --- http://www.nytimes.com/2009/04/12/weekinreview/12lohr.html?pagewanted=1&hpw

    In the Depression, smart college students flocked into civil engineering to design the highway, bridge and dam-building projects of those days. In the Sputnik era, students poured into the sciences as America bet on technology to combat the cold war Communist challenge. Yes, the jobs beckoned and the pay was good. But those careers, in their day, had other perks: respect and self-esteem.

    Big shifts in the flow of talent can ripple through the nation and the economy for decades with lasting effect. The engineers of the Depression built everything from inter-city roads to the Hoover Dam, while the Sputnik-inspired scientists would go on, often with research funding from the Pentagon, to create the building-block innovations behind modern computing and the Internet.

    Today, the financial crisis and the economic downturn are likely to alter drastically the career paths of future years. The contours of the shift are still in flux, in part because there is so much uncertainty about the shape of the economic landscape and the job market ahead.

    But choosing a career is a guess about the future in which economics is only part of the calculation. Prestige, peer expectations and the climate of public opinion also matter. And early indications suggest new career directions that are tethered less to the dream of an immediate six-figure paycheck on Wall Street than to the demands of a new public agenda to solve the nation’s problems.

    The deep recession has clearly battered industries — and professions — whose economics were at risk before the downturn. Law firms are laying off lawyers as never before and questioning the industry’s traditional unit of payment, the billable hour. Journalism is reeling from the falloff in advertising and the inability of newspapers and magazines to make a living on the Web.

    Still, the industry whose troubles are having the greatest impact on the rethinking of careers, especially at the nation’s elite universities, is the one at the center of the country’s economic downturn — finance. For years, the hefty paychecks and social status on Wall Street proved irresistible to many of America’s brightest young people, but the jobs, money and social respect there are much diminished today.

    “In choosing careers, young people look for signals from society, and Wall Street will no longer pull the talent that it did for so many years,” said Richard Freeman, director of the labor studies program at the National Bureau of Economic Research. “We have a great experiment before us.”

    What will the new map of talent flow look like? It’s early, but based on graduate school applications this spring, enrollment in undergraduate courses, preliminary job-placement results at schools, and the anecdotal accounts of students and professors, a new pattern of occupational choice seems to be emerging. Public service, government, the sciences and even teaching look to be winners, while fewer shiny, young minds are embarking on careers in finance and business consulting.

    For the highest-paid business fields, the outlook is for a tempering correction instead of an all-out exodus. At Harvard, for example, about 40 percent of undergraduates in recent years went into the most lucrative corporate arenas like finance and consulting, based on surveys at the school year’s end. “That certainly won’t be the case this year,” observed Lawrence Katz, a professor and labor economist who has studied undergraduate career choices at Harvard going back to the 1960s. “We’re seeing students who would have been part of the Ivy League pipeline to Wall Street in the past considering very different career paths.”

    Kedamai Fisseha, a 21-year-old senior, is one of them. An economics major, Mr. Fisseha says he always assumed he would go into finance, and his summer internship last year was at the investment bank Morgan Stanley. Yet after Wall Street’s meltdown, job prospects there have withered. Instead, he is interviewing with Teach for America, a nonprofit group that recruits college graduates to teach in hard-to-staff schools for two-year stints. (After that, only one-third stay in the classrooms, though two-thirds remain in education.)

    Mr. Fisseha regards the turn of events as an opportunity to broaden his horizons. “It’s been liberating, and lucky for me,” he said. “But your situation does dictate your preferences.”

    Graduate schools of government and public policy are seeing a surge of applications. In a survey of its members released last week, the National Association of Schools of Public Affairs and Administration found that 82 percent reported an increase in applications this year, and many saw the largest percentage jumps in several years, or ever. The most-cited reason was the expectation by students that government will be hiring.

    Continued in article

    Jensen Comment
    In spite of continued strong career opportunities, with some of the best opportunities for women, the above article ignores accountancy careers. I think much of this is due to Lohr's focus on high ranked MBA programs. These MBA Programs have not been major sources of public accountants in the past three decades. One reason is that to take the CPA examination most states requires more pre-requisite accounting course coverage than top MBA programs make available in the curriculum. This makes it more difficult for graduates of top MBA programs to sit for the CPA examination unless they were undergraduate accounting majors. Top ranked MBA programs like Harvard, Wharton, Stanford, and Darden generally prefer to admit students who were not undergraduate business and/or accounting majors.

    Following the conflicts of interest charges and/or the Sarbanes-Oxley legislation, most CPA firms sold off their consulting divisions like Andersen Consulting, Cap Gemini, PwC Consulting, and KPMG Consulting. Those divisions were more apt to hire MBA graduates who had no intention of ever taking the CPA examination. Also consulting firms have cut way back on their entry-level hiring in favor of hiring persons with technical expertise and experience.

    Although faculty in state-supported universities are somewhat different from what we view as workers in the federal, state, and local bureaucracies, there will be increased hiring opportunities for faculty careers as the government pours upwards of a trillion dollars, over several years, into education opportunities for lower-income students. But with declining career opportunities as the private sector cuts back, the outlook is not particularly strong for academic careers in schools of business and accounting. It's even bleaker for undergraduate finance programs. The outlook is much better for science and medical/nursing/pharmacy faculty openings.

    What I find somewhat sad in Lohr's article is the prediction that government careers are the long-term wave of the future. I've never been a fan of big public sector relative to the private sector. It's so sad that Wall Street shot itself in the head rather than the foot!

     


    Question
    Why might you want to become a CPA?

     

    A great reference summarizing reasons is cited below. CPAs and non-CPAs frequently track into industry and how accounting knowledge greatly enhances career advancement in most instances:

     

    STEPHEN R. MOEHRLE, GARY JOHN PREVITS, AND JENNIFER A. REYNOLDSMOEHRLE, The CPA Profession: Opportunities, Responsibilities, and Services (New York, NY: American Institute of Certified Public Accountants, 2006, pp. xxii, 254).
    This monograph provides a comprehensive overview of the scope of services provided by CPA firms

     

    Good News for Accounting Graduates: Hiring Outlook Remains Strong in 2008 --- http://accounting.smartpros.com/x60255.xml

    College Business Students Cite Career Opportunities, Not Money, as Top Criteria for Choosing Employer ---
    http://accounting.smartpros.com/x59967.xml

    SmartPros has an interesting site for students --- http://accounting.smartpros.com/accountingstudents.xml 

    AccountingWeb Student Zone --- http://www.accountingweb.com/news/student_zone.html

    Accounting firms populate Working Mother top 100 list
    Working Mother magazine has released its annual list of the top 100 firms for working mothers, and this year, three of the Big Four firms appear in the top 10. Among the top 10 firms are Ernst & Young, KPMG, and PricewaterhouseCoopers. Deloitte isn't far behind at xx, and Grant Thornton and RSM McGladrey also appear on the Top 100 list. Seven areas are measured and scored in order to arrive at the top 100:

    AccountingWeb, September 2007 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=104048
    The Working Mother online magazine link is at http://www.workingmother.com/?service=vpage/106

    Accounting firms dominate BusinessWeek's second annual ranking of the "Best Places to Launch a Career."
    From SmartPros, September 14, 2007 --- http://accounting.smartpros.com/x59101.xml

    Deloitte & Touche is No. 1, followed by PricewaterhouseCoopers and Ernst & Young. The last of the Big Four, KPMG, moved up four spots to No. 11.

    Accountants used to be spoofed as bean counters -- dutiful, middle-aged, gray-suited men with considerable analytical expertise but little charisma. This year accountants became sexy, BusinessWeek said in a statement.

    Why did the accounting firms do so well? Enormous demand. Across industries, there is a mad scramble to recruit the best and brightest of a new generation, the much-maligned, heavily scrutinized Gen Y. Nowhere is the pressure more intense than in the Big Four. The Sarbanes-Oxley Act has so greatly increased the need for their services that the firms are facing an epic talent shortage.

    BusinessWeek's "Best Places to Launch a Career" ranking is based on three extensive surveys: of career services directors at U.S. colleges, the employers they identify as the best for new graduates, and college students themselves.

    Some great information about the organization of major accounting firms, their finances (including average partner comp) and litigation --- http://thecaq.org/publicpolicy/treasurydata.htm

    Accounting Majors are Hot, Hot
    But two weeks into her final year, she had lined up 15 interviews with the biggest firms in the country. Recruiters treated her to trendy happy hours and fancy steak dinners, wooing her with impressive salaries, free Cancun <http://www.washingtonpost.com/ac2/related/topic/Cancun?tid=informline> vacations and irresistible sign-on bonuses. She got three job offers in one afternoon."I had no idea it would be that easy to find a job," said Piniuk, 23, who will start at Ernst & Young's McLean <http://www.washingtonpost.com/ac2/related/topic/McLean+(Virginia)?tid=informline> office in October.
    The Washington Post, Forwarded on July 6, 2007 by Don Ramsey.

    2007 Salaries at Nation's Top Accounting Firms: Report --- http://accounting.smartpros.com/x58940.xml

    What's a CPA? Accountants take their show to YouTube
    AccountingWeb, September 2007 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=103999
    Linda Kidwell forwarded this link --- http://www.youtube.com/watch?v=9I502zLYZXU 
    David Albrecht forwarded this link (rap) --- http://www.youtube.com/watch?v=xUcxvwAQ_n4

    Large International Accounting Firm History --- http://en.wikipedia.org/wiki/Big_Four_auditors

    Demand for Internal Auditors Prompts IIA Textbook --- http://accounting.smartpros.com/x58888.xml

    Accounting Gets Hip—Companies Scramble for Talent
    It's got it all: great pay, generous benefits, a fast career track and the respect of the highest executives in corporate America. It's accounting, which is fast becoming one of the most prestigious and in-demand careers around. Thanks to a spate of corporate scandals and the flood of jobs created by the Sarbanes-Oxley reform legislation, talented accountants are being wooed with raises, bonuses and a long list of perks. Even those just starting out are being recruited heavily. Accounting majors top the list of most desired job candidates in the United States, according to the National Association of Colleges and Employers. Graduates can expect to make $43,370 to start, up from $40,538 in 2002. Some recruits get a month of paid vacation, before their first day on the job, the Trenton Star-Ledger reported. An accounting MBA can start at around $55,000, not counting health insurance and retirement benefits.
    "Accounting Gets Hip—Companies Scramble for Talent," AccountingWeb, July 19, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=101107


    Even the Top Ranked Business Schools are in a Crisis in 2008 (including a slide show) --- http://www.businessweek.com/magazine/toc/08_47/B4109best_business_schools.htm
    Applications for MBA programs are up, but job opportunities for second-year students in finance or consulting have turned wretched.
    The scary part is that it will be a long, long time before finance and economics students will have rising opportunities.

    But accounting students fair well in rain or shine --- http://accounting.smartpros.com/accountingstudents.xml

    Bob Jensen's threads on careers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

    Bob Jensen’s threads on the financial markets meltdown --- http://faculty.trinity.edu/rjensen/2008Bailout.htm

    Two States Partner to Offer New Student ePortfolios ---
    http://www.convergemag.com/story.php?catid=421&storyid=108084


    "Study: Higher education playing bigger role in gender wage gap," PhysOrg, August 9, 2009 ---
    http://www.physorg.com/news169051532.html

    While higher education has helped women narrow their long-running wage gap with men, there is one college-related factor that has becoming increasingly important in perpetuating that gap, according to new research.

    And that factor is college major.

    Women are still segregated into college majors that will lead them to careers with less pay than men, said Donna Bobbitt-Zeher, author of the study and assistant professor of sociology at Ohio State University at Marion.

    "Gender segregation in college is becoming more influential in how men and women are rewarded later in life," Bobbitt-Zeher said.

    "If you really want to eliminate earnings inequality, college major segregation is a piece of the puzzle that really stands out."

    The findings are especially important now because many people assume that, if anything, college helps women more than it helps men nowadays.

    "A lot of people look at data showing that women are more likely to go to college than men, and that women get better grades in college than men, and assume that everything is all right," she said.

    "But this research suggests there are still problems for women that relate to college."

    Bobbitt-Zeher presented her research August 9 in San Francisco at the annual meeting of the American Sociological Association.

    She used data from the National Longitudinal Study of the High School Class of 1972 and the National Education Longitudinal Study of 1988. With these data sets, she was able to compare women who graduated from high school in 1972 and 1992. She compared the incomes of college graduates seven years after their high school graduations, in 1979 and 1999. Both samples included about 10,000 cases.

    Findings showed the income gap between college-educated men and women declined significantly in 20 years - in 1979, women's earnings were 78 percent of their male counterparts, but by 1999 the women were earning 83 percent as much as men.

    Using well-accepted statistical techniques, Bobbitt-Zeher estimated how much of that income difference between men and women was explained by various factors in 1979 versus 1999. Some of the factors she examined included occupations and industries that men and women work in; background, including socioeconomic status and race; how much individuals valued earning a lot of money; factors related to parental and martial status; SAT scores; the colleges that people attended and whether they earned graduate degrees; and, of course, the percentage of women in their college majors.

    Findings showed that about 19 percent of the income gap between college-educated men and women in 1999 could be explained by their college major - nearly twice as much as in 1979, when 10 percent of the gap was explained by college major.

    Although work-related characteristics combine to explain a bigger share of the gap, no other single known factor was more important than college major in explaining the income gap in 1999.

    In addition, college major is the only factor explaining a substantial part of the income gap that increased in importance between 1979 and 1999.

    "What this suggests is that college major segregation is becoming more important for wage inequality than it used to be," Bobbitt-Zeher said.

    Many college majors did become more integrated between 1979 and 1999, she noted.

    "Most of integration has come from women making different choices, rather than men moving into traditionally female fields," Bobbitt-Zeher said.

    However, significant differences remain in the majors women and men choose. And this is contributing to the gender income gap in a more meaningful way than it did in the past.

    The continuing wage gap isn't explained completely by men choosing majors that require greater skills than majors chosen by women, she said.

    "Gender composition of majors is a stronger influence on the gender income gap than is the content of the field of study," according to Bobbitt-Zeher.

    The reasons for the gender segregation of majors are not entirely understood, she said. Personal choice could play a role, or it could be that girls are still influenced to pursue "women-appropriate" majors. Programs that encourage girls to pursue scientific careers may be part of the answer.

    But Bobbitt-Zeher said the results should be a reminder for us not to believe gender inequality in higher education is a problem of the past.

    "There's been a lot of attention paid to the fact that women seem to be doing so well in college compared to men. But what people don't know is that education is playing a bigger role than ever in perpetuating the gender income gap," she said.

    "It's an issue that we need to keep at the forefront."

    Bob Jensen's threads on gender and salary differences in higher education
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#GenderSalaryDifferences


    "Out of Work in Finance, They Turn to Teaching," by Mary Jo Patterson, The New York Times, May 10, 2009 --- http://www.nytimes.com/2009/05/10/nyregion/new-jersey/10tradersnj.html?_r=1&hpw

    In March, the State Legislature approved a pilot program that seemed tailor made for her situation. Called Traders to Teachers, it is designed to turn unemployed finance professionals into math teachers in three months. Successful candidates, who are not required to have been math majors, will attend classes free at Montclair State University.

     

    The response to the program has been overwhelming. Within 48 hours of its unveiling, 200 people called or e-mailed; at least 100 are expected to apply for the first class of 25, according to university administrators. Besides Mrs. Marshall, those who responded include Pedro Ramirez, 48, of Cranford, a Goldman Sachs executive let go in February 2008; Robert Stanley, 50, of Basking Ridge, a 26-year Wall Street veteran out of work since October; and Tony Malanga, 46, of Verona, a mortgage banker who lost his job in March.

     

    “Things collapsed to such an extent in financial services, it’s going to take years to get back to normalcy,” said Mr. Malanga, a father of six. “It’s a good point for me to transition into a new career. Teaching was always something I wanted. In your late 40s, after coming through this, you care more about stability than building wealth.”

     

    Since December 2007, New Jersey’s financial services sector has shed 16,000 jobs, said David J. Socolow, state commissioner of labor and workforce development. Thousands of other residents lost similar jobs in New York.

     

    Traders to Teachers, financed by a federal grant, will do more than retrain dislocated workers, Mr. Socolow said, it will also ease the state’s shortage of math teachers.

     

    Ada Beth Cutler, dean of the College of Education and Human Services at Montclair State, said the idea came to her and Lucille E. Davy, New Jersey’s education commissioner, last fall.

     

    “She called me and said she was hearing about all the people being laid off from financial services,” Dr. Cutler recalled. “She said, ‘Don’t you think these people would make great math teachers?’ I said, ‘That’s funny you should ask, because we’ve been getting calls from them about this.’ ”

    Most of the callers had majored in finance or accounting. When they learned they needed 30 college credits in mathematics, she said, they were dismayed.

     

    Special legislation was introduced to ease that rule and fast-track certification.

     

    “That does not mean we will compromise our standards,” Dr. Cutler said. “We will take very bright people and, through a very intensive program, teach them the mathematics they need to know and how to teach it.”

     

    The first 25 of the newly trained teachers are expected to be placed in teaching positions in January. Three more groups are expected to be trained within a year, Montclair State administrators said.

    Continued in article

     

    Even the Top Ranked Business Schools are in a Crisis in 2008 (including a slide show) --- http://www.businessweek.com/magazine/toc/08_47/B4109best_business_schools.htm
    Applications for MBA programs are up, but job opportunities for second-year students in finance or consulting have turned wretched.
    The scary part is that it will be a long, long time before finance and economics students will have rising opportunities.

     


    "The Forensics Behind Accounting," The Atlanta Journal-Constitution via SmartPros, August 26, 2009 ---
    http://accounting.smartpros.com/x67450.xml

    He started using numbers to track wrong-doing back in 1983, when the FBI hired him and a slew of other able-brained accountants to sort through the savings-and-loan mess.

    Now Berecz, director of Georgia Southern University's Center for Forensic Studies in Accounting and Business, helps college students gain the skills to sort through the debris of today's financial industry meltdown.

    "Our course work is so close to practical application," says Berecz, a licensed polygraph examiner who teaches one class with the tough-guy title "Forensic Interviews and Interrogations."

    "Forensic accounting permeates through all of those other categories of accounting," Berecz says.

    Q: Why do you think white-collar crime has been so prevalent over the last 10 years?

    A: The amount of money. No one ever thought a Ponzi scheme could reach the level of Madoff.

    Q: Which is harder to detect, fraud within a corporation, like Enron, or fraud by an investment adviser, like Bernie Madoff?

    A: Most detection of fraud comes because someone tells us about it. Without a whistle-blower, there's not a clear answer.

    Q: Do you think additional regulation of the financial sector will help forensic accountants? Will it create more of a paper trail, for example, that will be easier to track?

    A: I think it [increased regulation] is inevitable because we learn from our mistakes. It will cost more, but it is worth it for the good of the whole.

    Q: But do you think it will help solve white-collar crimes?

    A: I think what it will show is the intention of people committing crimes earlier. That's what I think the regulation will do. Small frauds that go undetected become larger frauds. It will help detect them earlier.

    Q: What red flags of fraud should every investor know to look for?

    A: Anyone who contacts you and tells you that they've got a guaranteed investment with a high return, that is the No. 1 red flag.

     And if there's some urgency and secrecy around it, if they say they are doing it just for you, that's a major red flag.

     

    Q: How are you preparing students to detect fraud?

    A: One example is our students take a course called 'Micro Fraud Examination.' We take them through 40 to 50 fraud schemes . . . Most of the people who perpetrate these frauds think they are doing something that has never been done before. But the reality is, they keep repeating schemes that have happened before.

    Q: One of the classes at Georgia Southern teaches the verbal and nonverbal cues indicating truth or deception. What's one of the best clues that someone is lying?

    A: The general rule of thumb is they're just uncomfortable. Eye contact is just not right . . . When you lie, you have to be creative, use that part of the brain, so when you lie you have to visualize the lie, and you look up and to the right. That is a theory . . . Also, it may be nanoseconds, but it takes a person six times longer to answer a question with a lie than to answer it truthfully.

    Q: How many forensic accounting programs are there like the one at Georgia Southern?

    A: Only four offer 10 or more forensic accounting classes: Utica College in New York; Stevenson University [near] Baltimore; Florida Atlantic University and us. In academia, we don't call them competitors, we call them peers.

    Q: What do you foresee as the next trend in white-collar crime?

    A: Technology. Cybercrimes. I think it behooves us here at Georgia Southern to make sure our coursework continues to evolve with these cybercrimes.

    Jensen Comment
    Various colleges and universities have added concentrations on forensic accounting.

    Georgia Tech in Atlanta has a rather unique Financial Reporting and Analysis Lab that is not so much into forensics at a micro level but is definitely into fraud detection using financial statements --- http://mgt.gatech.edu/fac_research/centers_initiatives/finlab/index.html


    Hi Dennis,

    I do not have direct answers to your specific questions. However, I did combine two tidbits that may be of interest to you and to other subscribers to the AECM. These specialty certifications are commonly held by persons seeking to be paid for expert witnessing. In my opinion, there's a lack of accountability of most of these so-called "certificates" and the organizations that grant such certificates.


    On the other hand, there's also merit in some of the complaints by these associations directed at our most respected colleges and universities. For example, most college accounting programs teach about valuation accountics science models (such as residual income and free cash flow models) that are typically more misleading than helpful when it comes to real world valuation of business firms. It's not common to find college professors who have a history of outstanding professional experience in valuation or forensics.


    College curricula in accounting and finance are terribly lacking in courses and research professors knowledgeable about the professions of valuation or forensics. For example, most of our auditing courses spend more time stressing how financial audits are not designed to detect fraud rather than becoming professionally focused on ways to detect fraud. We do have course modules on internal controls, but these typically are very superficial  relative to what graduates will encounter in the real world of fraud and systems weaknesses.


    The bottom line is that both valuation and forensics are topics that are poorly covered at the university level. And coverage by mysterious associations offering certificates do not always pass the smell tests of credibility.

     

    The National Association of Certified Valuators and Analysts (NACVA) ---
    http://www.nacva.com/

    Business Valuation Standard --- http://en.wikipedia.org/wiki/Business_valuation_standard

    Business Valuation Standards (BVS) are codes of practice that are used in business valuation. Each of the three major United States valuation societies — the American Society of Appraisers (ASA), American Institute of Certified Public Accountants (CPA/ABV), and the National Association of Certified Valuation Analysts (NACVA) — has its own set of Business Valuation Standards, which it requires all of its accredited members to adhere to.[1] The AICPA's standards are published as Statement on Standards for Valuation Services No.1 and the ASA's standards are published as the ASA Business Valuation Standards. All AICPA members are required to follow SSVS1. Additionally, the majority of the State Accountancy Boards have adopted SSVS1 for CPAs licensed in their state.

    Criticism of the abovementioned organizations are as follows:
    1) These are neither the major valuation societies, nor are they the only valuation societies. They are however, organizations which engage in considerable self-promotion among their members to foster the delusion among their members, that by the mere fact of membership, their members are more qualified to perform business appraisal than non-members.


    2) These are all privately held organizations, in which membership is voluntary.


    3) There are no regulations mandating that one must belong to any of these organizations in order to practice as a business appraiser.


    4) In that these are voluntary membership organizations, their standards have little or no weight with either the business valuation community at large or with the legal and judicial community who appraisers often serve.


    5) The standards and ethics of these organizations are constructed to be vague and self-serving, with numerous exceptions, designed more to excuse conflicts of interest, membership poor performance and unsupported opinion, than to encourage, independence, scientific analysis and high quality work. Conflicts of interest are a problem, particularly among CPA/Appraisers, who regularly join these organizations so that they can offer valuation services to their existing accounting clients, in violation of independence rules and ethics.


    6) The education which these organizations offer is unaccredited and of low quality, in that it does not reach the threshold level of education in finance of an accredited university.


    7) Educational standards have to be kept low to attract new members and membership dues.


    8) The credentials which these organizations issue are often issued for reasons of favoritism and cronyism over merit.


    9) The purpose of these organizations is often tarnished by the politics of a few active, insider members who consider themselves more entitled then other members, and consequently use the organization resources to further their own self-interests over the interests of the membership at large.


    10) There is no accounting of the membership dues paid into these membership organizations. Consequently, members do not know where, to whom, or on what their dues money is spent.

     

    Forensic Accounting --- http://en.wikipedia.org/wiki/Forensic_accounting

    American College of Forensic Examiners International (ACFEI) ---
    http://www.acfei.com/
    The ACFEI is mulit-disciplinary, only one discipline of which is accounting

    Association of Certified Fraud Examiners (ACFE) ---
    http://www.acfe.com/
    The ACFE is more focused in on accounting and business fraud than the ACFEI

    Other Forensic Associations ---
    http://www.hgexperts.com/forensic-science.asp

    To my knowledge, the only AACSB-accredited university to offer a forensic accounting certificate is the University of West Virginia ---
    http://www.be.wvu.edu/fafi/index.htm
    There are also tracks for forensic accounting in the Masters of Public Accounting Degree curriculum.

    "Forensic Accounting And Auditing: Compared And Contrasted To Traditional Accounting And Auditing," by Dahli Gray, American Journal of Business Education, Volume 1, Number 2, 2008 ---
    http://scholar.googleusercontent.com/scholar?q=cache:lnY92RzjASgJ:scholar.google.com/+ACFE+ACFEI+"lawsuit"&hl=en&as_sdt=0,20

    Forensic versus traditional accounting and auditing are compared and contrasted. Evidence gathering is detailed. Forensic science and fraud symptoms are explained. Criminalists, expert testimony and corporate governance are presented.

     


    NASBA 2008 Update:  120 Versus 150-Credit Hour Requirement to Sit for the CPA Examination
    There are now only two states that do not require 150-credits to sit for the CPA Examination, with California being the largest jurisdiction

    DRAFT Education and Licensure Requirements for Certified Public Accountants: A Discussion Regarding Degreed Candidates Sitting for the Uniform CPA Examination with a Minimum of 120 Credit Hours (120-Hour Candidate) and Becoming Eligible for Licensure with a Minimum of 150 Credit Hours (150-Hour Candidate) (120/150 Discussion), Issued by the National Association of State Boards of Accountancy (NASBA) , November 2008 ---
    http://snipurl.com/150nasba  [www_nasba_org] 
     http://www.nasba.org/862571B900737CED/318CD757B9F57F75862574FA00763F36/$file/120_150_Paper_Draft_November_08.pdf

    The above draft has quite a lot of data and provides extensive history of the 150-Hour Rule.

    For a wider history see http://en.wikipedia.org/wiki/Uniform_Certified_Public_Accountant_Examination
    Part of the above Wikipedia module was out of date, so I changed the Wikipedia module on December 13, 2008.

    NASBA has some learning tools at http://www.nasbatools.com/display_page

    Free CPA Examination Review Course --- http://cpareviewforfree.com/
    AccountingWeb Student Zone --- http://www.accountingweb.com/news/student_zone.html 

    For many students, the fee-based CPA Examination Review materials and courses are likely to get better results, especially those that force students to weekly stay on track and those that have multimedia helpers and those that meet onsite as a regular class.

    Accounting Institute Seminars
    Becker CPA Review
    Bisk-Totaltape CPA Exam Review
    Conviser Duffy CPA Review (now merged with Becker)
    CPA Review Twin Cities
    CPAexcel CPA Exam Review
    Dynasty School
    Gleim Publications
    Hoyle CPA Ventures (now free)
    Intensive CPA Examination Review
    Kaplan
    Lambers
    Mark's CPA Review
    MicroMash
    Person/Wolinsky CPA Review Courses
    Rigos Professional Education
    The Tutorial Group, Inc.
    Wiley CPA Exam Review
    Wise Guides


    Question
    Did Harvard and Wharton (Penn) kill the traditional MBA job market?

    Answer
    No doubt! Now the hot opportunity is a job with the Federal Government.

    "MBAs: Uncle Sam Wants You:  With the private sector job market more dismal than ever, suddenly government and nonprofit jobs are some of the hottest tickets around," by Anne VanderMey, Business Week, February  16, 2009 ---
    http://www.businessweek.com/bschools/content/feb2009/bs20090216_831796.htm?link_position=link1

    At the McCombs School of Business at the University of Texas at Austin on Feb. 9, dozens of students crowded a classroom for an evening career workshop, breaking an attendance record. The scene was typical of B-school campuses across the country—with jobs in short supply, recruiters are finding themselves more courted than ever. What was different, though, was that this wasn't an event for investment banking, management, or even consulting. It was a pitch for nonprofit and government work.

    Uncle Sam has never been very popular with MBA graduates, most of whom are accustomed to the hefty signing bonuses and competitive salaries in private industry. But with the U.S. shedding hundreds of thousands of jobs each month, many companies freezing wages, and an MBA job market turning more dismal by the minute, the stability of government is starting to look a lot more appealing.

    At McCombs, Director of MBA Career Services Stacey Rudnick said 70 people came to a workshop called "MBA Jobs You've Never Considered," the largest turnout in recent memory for a spring career workshop. Usually, by this time of year, students already have jobs lined up. "Students are looking for every opportunity, every bit of new information that might help them extend or broaden their search," Rudnick said

    Continued in article


    From the Scout Report on May 22, 2009

    Survey reveals best places to work in the federal government Strong Managers Ranked More Important Than Money in Federal Workplace Survey http://www.washingtonpost.com/wpdyn/content/article/2009/05/19/AR2009051903621.html 

    OMB to use workplace rankings in 2011 budget process http://www.govexec.com/dailyfed/0509/052009ar1.htm 

    Survey says NRC is still the best place to work in government http://federaltimes.com/index.php?S=4097105 

    The Best Places to Work in the Federal Government 2009 http://data.bestplacestowork.org/index.php/bptw/index

    FORTUNE: Best Companies 2009 http://money.cnn.com/magazines/fortune/bestcompanies/2009/ 

    Bright Ideas: Pink Slip Parties http://www.boston.com/business/globe/globe100/globe_100_2009/bright_ideas_pinkslip/

     


    Definition of Millenials (Generation Y or Net Generation) --- http://en.wikipedia.org/wiki/Millennials

    "The Millennials Invade the B-Schools:  They're pursuing MBAs to change the world, but first they're forcing business schools to make changes in order to accommodate them," Business Week, November 13, 2008 ---
    http://www.businessweek.com/magazine/content/08_47/b4109046025427.htm?link_position=link2

    Best International Business Schools According to Business Week --- http://images.businessweek.com/ss/08/11/1112_best_international_business_schools/index.htm?link_position=link5

    Controversies in College Rankings --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings

     


    Helpers for career growth (podcasts) --- http://www.streetiq.com/

    Free CPA Review Course --- http://cpareviewforfree.com/


    "Life in the Big Four: Pranks," AccountingWeb, December 2008 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=106619

    As long as there are interns and new hires, there will be pranks. Some pranks are timeless, and incredibly clever. There's a famous prank to play on new audit hires/interns. A senior (or manager) sends the unsuspecting kid into the CFO's office asking for a "bag of tickmarks."

    This inside joke is HILARIOUS.............assuming you were born in the 1920s and have the sense of humor of a dead hamster. This is not an example of a timeless and/or clever joke. If I wanted to laugh this hard, I would have crashed an eight-year old's birthday party and listened intently to the Knock-Knock jokes.

    Interns will do whatever you tell them, as long as they believe it will get them a job offer. Wasting it on a bad joke that was out-of-date when the CFO was in high school is not the way to use this wonderful gift. The best jokes, in fact, are the ones that the intern never realizes are jokes.

    Consider, for example, the following conversation.

    "Dammit."

    "What's wrong, Anonymous Senior?"

    "These idiots repaved the parking lot, and capitalized the whole damned thing. We didn't cover this in our fixed asset testing."

    "Is there anything I can do to help?" (translation: Is there anything I can do to get a job offer?)

    "Well, a parking space covers about 30 square feet, and they said they paved 5000 square feet. It would be great if you could go out and count the parking spaces so that we could figure out roughly how much was actually paved."

    The result: Intern spends four hours counting 200 parking spaces, and often ends up thinking he did something constructive.

    Everyone is a big winner.

    The best office jokes, of course, are played on those who have no inherent ability to cope with the emotional fallout.

    Myself and another senior were at a client once with an IT audit senior. My friend and I went to lunch, and returned to find an open text document on each of our computers, reading "IT Security is serious business. Lock your computer when you leave or I will report you to the National Office."

    The IT Audit Senior had decided to play vigilante.

    Both my co-senior and I were slightly offended, because IT people were rarely allowed to interact with clients. This business trip, we decided, was a privilege for IT Guy, not a right.

    In the words of the Senior George Bush, "This aggression would not stand."

    The next time IT guy went to the restroom, he did not lock his computer. IT security is SERIOUS BUSINESS, DAMMIT!!!

    To demonstrate how serious, we sat at his computer and activated a little known feature of Microsoft Word: the customizable area of Autocorrect.

    This deserves some explanation.

    You know how, if you type "auidt" instead of "audit," and Bill Gates often works some magic and fixes the typo for you automatically? Well, the list of common typos that Word uses can be edited. In fact, it can be edited to the point where your name, or your firm's name, can be considered a typo by Word and replaced with any vulgar word of your choosing.

    For example, suppose IT Guy's name was Fred. You can tell Word that "Fred" is a typo, and should be replaced with a word like "Slut." Whenever IT Guy types his name, Word automatically replaces it with the word "Slut."

    As there are countless "common" words used in everyday Big4 life, and countless vulgar words in the English language, one can have infinite amounts of fun with this trick.

    Later that day, IT Guy typed a memo on Word and e-mailed to his boss without manually proofreading it.

    He was never heard from again.

    * This is the second in a series of reminiscences about life in the Big Four accounting firms. The author has asked to remain anonymous.


    Aug. 12, 2008 (SmartPros) — Eric Fox, an accounting graduate of California State University, Los Angeles, has been awarded Beta Alpha Psi's first Medal of Inspiration Award --- http://accounting.smartpros.com/x62867.xml


    xTREME Accounting Games from PwC
    PwC launched the xTREME Games in 2002, to increase students' exposure to professional services and the world of public accounting. Since then, the games have grown substantially with over 85 schools involved, more than 2,500 teams comprising 13,000 participants, and 1.5 million in prize money awarded. Over the years, more than 150,000 hours have been logged to the xTREME Games by competing students. The xTREME Games continue to have a significant impact on our participants, helping them to better understand the vast career opportunities in public accounting and connecting them with professionals in the industry. The characteristics that winning teams exhibit are critical thinking, presentation skills, teamwork, and using time wisely
    --- http://www.pwc.com/us/en/careers/xtreme/what-it-takes.jhtml

    "PRICEWATERHOUSECOOPERS LAUNCHES NATIONWIDE COMPETITION TO ENHANCE CAREER READINESS OF COLLEGE STUDENTS," by Andrew Priest, Accounting Education News, September 10, 2009 ---
    http://accountingeducation.com/index.cfm?page=newsdetails&id=150210

    As college students across the country continue to face a highly competitive job market, PricewaterhouseCoopers LLP (PwC) has announced the launch of the firm's 8th Annual xTREME Games, a unique competition that enables undergraduates at schools across the country to experience and solve real-world business challenges. Participants in PwC's xTREME Games compete for school bragging rights and nearly $300,000 in total prize money while broadening and enhancing valuable skills such as decision making, communication and team building, which are critical to success in the professional world. Approximately $1.5 million in total prize money has been awarded to students since xTREME began.

    As one of the nation's largest employers of college graduates, PwC collaborates with schools across the country to provide meaningful, relevant learning programs and opportunities to ensure that students are well prepared to enter the profession. The xTREME Games competition is part of PwC's larger, ongoing commitment to corporate responsibility and youth education.

    xTREME, beginning this week at the University of Alabama, includes xTAX, short for "Extreme Tax," and xACT, short for "Extreme Accounting." Both challenge undergraduates to solve cases designed to expose them to real tax and accounting scenarios, including policy and planning issues. Over the next six weeks, hundreds of the best accounting students representing nearly 80 schools nationwide will compete in five-person teams for the right to potentially represent their schools at the national finals in January.

    "When it comes to preparing students for successful careers in the accounting profession, there is no substitute for hands-on, real-world experience," said Christina Fitzpatrick, National Campus Sourcing Programs Leader for PricewaterhouseCoopers. "With the xTREME Games, students get a firsthand look at the type of intricate challenges that tax and accounting professionals face on a daily basis. The competition builds collaboration and problem-solving skills while also requiring that ideas are effectively presented -- all crucial skills in a competitive job environment."

    Created by PwC in 2002, the xTREME Games competition has grown steadily to include nearly 80 schools and more than 2,500 teams comprised of 13,000 participants. More information about xTREME can be found at www.pwc.com/xtreme.

    PwC has a strong history of investing in education and talent development. For the past two years, PwC has been ranked #1 in Training magazine's "Training Top 125" annual ranking of organizations that excel at employee training and development (the firm also ranked #2 in 2007). PwC has also consistently been named to FORTUNE magazine's "100 Best Companies to Work For" list, and has been highly ranked on BusinessWeek's lists of "Best Internships" and "Best Places to Launch a Career."

    Also see "EXTREME-ACCOUNTING: ACCOUNTANTS' (in Wales) WACKY RACES" ---
    http://accountingeducation.com/index.cfm?page=newsdetails&id=137526

    The PwC xTreme Games Site ---
    http://www.pwc.com/us/en/careers/xtreme/index.jhtml

    Have you got the right stuff?

    Business is the place where theory is executed in real time. It's a place where decisions are made with consequences, where communication is key, and collaborative, team-oriented thinking is a must. These are the conditions created in the xTREME Games, PwC's Tax and Accounting Campus Competitions.

    No longer within the safe confines of the classroom, PwC seeks students who are eager to plunge briefly into the environment of the real business world to show what they're made of as critical thinkers, able collaborators and persuasive advisors on important business issues.

    No number crunching exercises, the xTREME Games are focused on high-level issues designed to test and improve your decision-making skills. Detailed accounting or tax knowledge is not required to participate. What is required is your desire to learn, meet new people, experience new challenges, and have fun!

    Our 2009 xTREME campuses are designated for either the xACT competition OR the xTAX competition. Read on for more information about how it works, what it takes to succeed, and to see if your school is a participant!

    Build your team --- http://www.pwc.com/us/en/careers/xtreme/how-it-works.jhtml

    Find your five-member team. Two must be sophomores—each must be enrolled in the first accounting course or be an accounting major/minor One junior—must be an accounting major One “other” team member may be at any level: freshman to fifth year student. This team member does not have to be an accounting major, e.g., a general business or business-related major, such as Finance or Information Systems is acceptable. One team member can be any level but must either be enrolled in the first accounting course or be an accounting major/minor at the undergraduate or graduate level.

    3 Attend official mission meeting on campus

    In your mission meeting, you and your teammates will meet with PwC representatives to receive your official case packet, with instructions and further information about the xTREME Games. 4 Develop your case

    You and your team will have two weeks to develop your case and consult with your faculty and PwC mentors for guidance and encouragement along the way. The average time it takes a team to complete the case assignment is 10-15 hours. 5 Present your case in 12 minutes to PwC professionals

    Your team will be charged with clearly communicating your position, presenting in a dynamic way, and backing up your case solution in an interactive question and answer session. Each team member must speak for at least one minute. 6 Celebrate!

    All participants will receive an invitation to a PwC celebratory event following the competition where they’ll have an opportunity to network with our professionals. The winning team on each campus will receive $1,000 and consideration for the national finals. 7 Five lucky winners to compete in the national finals

    Five teams will be chosen as national finalists and awarded $10,000 per team and a trip either to New York City (xACT) or Washington, D.C. (xTAX). There, each team will get a chance to join with experts from PwC for a fun-filled, exciting two-day final competition. Winners of the xACT competition receive our prestigious Montgomery Award, while winners of the xTAX competition receive our prestigious Hamilton Award. The xACT Montgomery Award

    Named after Robert Montgomery, founding partner of Lybrand, Ross Brothers & Montgomery in 1898, who wrote the first American book on the practice of auditing. He was instrumental in the founding of the AICPA and served as its first president.

    The award, a silver bowl, resides at PwC headquarters in New York City.

    Names of each member of the winning team are inscribed on its base. Each winning team member and their faculty mentor receive a replica of the award to keep. The xTAX Hamilton Award

    Named after Alexander Hamilton, the first Secretary of the US Treasury, who set the first tax policy and defended it in a decision that was the Supreme Court's first ruling on the constitutionality of a law.

    The award, a silver bowl, resides at PwC's Washington National Tax Service office in Washington, DC.

    Names of each member of the winning team are inscribed on its base. Each winning team member and their faculty mentor receive a replica of the award to keep.

    Home How it works What it takes Who's competing Winner's circle Register now Recently visited pages xTREME Games: PwC's tax and accounting competition

    Bob Jensen's threads on tools and tricks of the trade (including games and other forms of edutainment)  in education are at  http://faculty.trinity.edu/rjensen/000aaa/thetools.htm


    "Texas CPA Society wins national award for student Web site," AccountingWeb, August 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=105766

    Texas Society of CPAs (TSCPA) was awarded a 2008 Gold Circle Award from the American Society of Association Executives (ASAE) & The Center for Association Leadership. The award recognizes innovative ideas and achievement in association communication campaigns. TSCPA was given the Gold Circle Award in the micro-web site category, for its interactive student site Destination CPA.

    Selected from a record 373 entries representing 248 organizations, 19 associations were recently honored with a 2008 Gold Circle Award. Recipients were chosen for demonstrating excellence in communications in the categories of print publishing, writing, electronic publishing, media relations and emerging communication vehicles.

    Destination CPA maps out the route to becoming a certified public accountant for both high school and college students. Teachers are also welcome to come along for a ride, where they can find links to classroom resources like lesson plans, career videos and more.

    About TSCPA

    TSCPA is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 28,000 members, one of the largest in-state memberships of any state CPA society in the United States.

    About ASAE & The Center for Association Leadership

    ASAE & The Center for Association Leadership foster a learning community of association professionals, industry partners, outside thought leaders, and others.

    The American Society of Association Executives is an individual membership organization of more than 22,000 association executives and industry partners representing more than 11,000 organizations. Its members manage trade associations, individual membership societies, and voluntary organizations across the United States and in 50 countries around the globe.

    The Center for Association Leadership is a provider of learning, knowledge, and future-oriented research for the association profession. The Center delivers learning experiences, performance-enhancing resources, opportunities for peer-to-peer collaboration, and strategic tools and data designed to advance the association profession.

    ASAE Services Inc. - ASAE's wholly owned subsidiary - is a source of business products and services for the association community.


    "IMA Looks to Redefine 'Management Accounting'," SmartPros, August 13, 2008 --- http://accounting.smartpros.com/x62882.xml

    The Institute of Management Accountants is seeking input from its members on a proposed new definition of the term "management accounting."

    In the August 2008 issue of Strategic Finance magazine, IMA published a draft "statement of management accounting" proposing a new definition "to more accurately reflect what management accountants do and aspire to become."

    The proposed new definition is:

    Management accounting is a professional discipline that has an integral role in formulating and implementing the organization's strategy. Management accountants are part of the management team, working within the organization at many levels: from top-level management to support-level accounting and finance professionals. Management accountants apply their knowledge and experience in accounting and financial reporting, budgeting, decision support, risk and performance management, internal control, and cost management.

    IMA said that the field of management accounting has evolved considerably since the first and current definition was published in 1981.

    "For more than a decade, IMA has supported and participated in research that calls for a change in point of view, shifting from a transaction and compliance orientation to becoming a strategic business partner," IMA states on its Web site.

    Comments and suggestions are due Sept. 10. For more information: http://www.imanet.org/newsletter/ions/ma_exposure.asp


    ALPFA:  The Association of Latino Professionals in Finance and Accounting offers career and community resources --- http://www.alpfa.org/


    Video:  Careers in Insurance and Risk Management

    Bill Hammond spoke to my class last week on careers in insurance and risk management. It was very good. If you only want audio of it, that is available here. If you want to see the powerpoint slides, they are available here.
    Jim Mahar, "Bill Hammond's presentation to my classes" FinanceProfessor Blog, May 4, 2009
    Watch the video at http://financeprofessorblog.blogspot.com/2009/05/bill-hammonds-presentation-to-my.html


    Updates:  Deloitte's Initiative for advancement and retention of female professionals
    From Smart Stops on the Web, Journal of Accountancy, July 2008

    HER SIDE OF THE STORY
    http://tinyurl.com/5dmwu2
    Deloitte’s Women’s Initiative (WIN) Blog, part of the firm’s program for advancement and retention for female employees, is an “ongoing community conversation about life, work, and everything in between.” Recent posts are listed down the right side of the home page, and cover topics such as work/life balance, the generation gap, mentors, office politics and life lessons. An active group of readers—who include both men and women—give feedback, commiserate or just share their related experiences in the comments below each blurb. You can also subscribe to the RSS feed to keep up with the latest posts.

    Women Partners in the Big 4 Accounting Firms
    For the tenth consecutive year, Deloitte & Touche USA LLP tops the Big Four accounting firms in percentage of women partners, principals and directors, according to Public Accounting Report's 2006 Survey of Women in Public Accounting. The survey revealed that Deloitte's percentage of women partners, principals and directors is currently 19.3 percent, surpassing that of KPMG (16.8 percent), Pricewaterhouse Coopers (15.8 percent) and Ernst & Young (13.5 percent). Deloitte has held this lead every year since the inception of the survey in 1997, according to Jonathan Hamilton, editor, Public Accounting Report.
    SmartPros, December 26, 2006 --- http://accounting.smartpros.com/x55948.xml

    Women now make up more than 60 percent of all accountants and auditors in the United States, according to the Clarion-Ledger. That is an estimated 843,000 women in the accounting and auditing work force.
    AccountingWeb, "Number of Female Accountants Increasing," June 2, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=102218

    Jensen Comment
    Nearly 20 years ago, Deloitte embarked on a "Women's Initiative" to help female employees break the glass ceiling --- http://www.deloitte.com/dtt/section_node/0,1042,sid=2261,00.htm


    "Women to CPA Firms: I Quit!" by Joanne Cleaver, BNET, June 14, 2010 ---
    http://blogs.bnet.com/management/?p=1594&tag=content;col1
    Thank you Roger Collins for the Heads Up!

    I’m no number cruncher, but even I can see that something’s out of line here:

    Organizations like Catalyst and the American Institute of Certified Public Accountants have long lamented that women aren’t making partner. They’ve trotted out the predictable bromides: flexible work schedules, more mentoring, and more female role models. But none of that actually targets the crux of the problem: At what point, exactly, do women quit? Why do they leave? And what can firms and women do about it?

    Recently, the two associations for women in accounting — the American Society of Women Accountants and the American Women’s Society of CPA’s — teamed up with my research firm to find out. We released the first Accounting MOVE Report on April 15 (for a little tax-accountant humor). Our top-line recommendation: With one program, firms can retain women to partnership and immediately gain clients and revenue.

    Really? More money now and more women in the long run?

    Yes. Here’s how: concentrate business development training at the level where women are most likely to quit. For most firms, that’s at the senior-manager level — the step right before partner. Our study of 20 firms found that women are 50 percent of all managers but 40 percent of senior managers. At firms with directors, women accounted for 33 percent. And from there, it was a dizzying drop to 17.4 percent of partners. (By the way, that 17.4 percent is in line with previous research.)

    Here’s what we found at that crucial senior level: Women promoted to senior manager suddenly realize that to make that final big step to partner, they must bring in clients. But guess what? They didn’t get into accounting to be salespeople — at least, that’s what dozens of women told us. But partners must make rain. And senior managers must learn to seed the clouds. This is such an unsettling prospect to many female senior managers that they’d rather defect to the corporate world where, they believe, they won’t be under the gun to bring in business.

    Three years ago New Jersey CPA firm Rothstein Kass realized that this was a killer dynamic. Now RK has a constellation of training tools for senior women poised for partnership. “Rainmakers Roundtable” first coaches each woman to articulate her own approach to drawing in new clients. When you hear yourself say it, you own it. Then, the program alternates between three sales-skills workshops and three networking events. Each networking event puts into play the newly learned skills. By the last event, the RK women are networking with senior women at law firms and investment firms.

    RK principal Rosalie Mandel has been the poster girl for many of the firm’s initiatives to advance women.  A decade ago, when she had her first child she forged a part-time, principal-track schedule. It worked out so well that the managing partners asked her to lead the firm’s innovations in work-life and advancing women. She was named principal partly on her successes in those arenas.

    Mandel says that because intense career advancement typically overlaps with intense family responsibilities, it’s incumbent on firms to clear the internal path so that rising women can tackle career-derailing issues. “Men have that natural camaraderie,” she says. “You see that the men who golf with the big guys get pulled forward a little faster. Women don’t have that. Who has time? You come in to work, and you work hard so you can get home.”

    The Rainmakers Roundtable helps make up for time spent at school plays rather than after-dinner drinks. Women learn exactly how to ask for a high-level referral. They forge alliances with similarly situated women in law and investment banking firms, with the shared goal of recruiting new clients together, for all. They polish their personal elevator pitches.

    Partly due to the Roundtable, fully half of Rothstein Kass directors are women. That should translate to a healthy lift in women partners — now an unimpressive 10 percent — with the next round of promotions.

    New clients = more revenue. Rainmaking women = qualified potential partners. And that’s how to move the numbers at accounting firms.

    What parallel dilemmas challenge women in your industry? Could the Rainmakers Roundtable be adapted to the particular challenges facing upper-middle management women in your company?

    The AAA Commons has a hive on Diversity ---
    http://commons.aaahq.org/pages/home


    Search Accounting Jobs - FREE! ---  http://www.searchaccountingjobs.com
    The above site is, however, a commercial site.


    "MBA Moms Most Likely to Opt Out: A new study finds MBA moms more likely than doctors or lawyers to stay home full-time," by Alison Damast, Business Week, August 25, 2008 --- http://www.businessweek.com/bschools/content/aug2008/bs20080821_739321.htm 

    Shortly after graduating from Harvard University in 1988, Lydia Icke dived into a high-powered career as an investment banker at Citibank (C). An ambitious undergraduate, she snapped up one of the hardest jobs she could find, she said.

    "And I was right, it was the hardest job I could find," said Icke, who later went on to Harvard Business School to get her MBA. "I worked all night and on the weekends and had all the tombstones [ads that appear in financial publications following a deal] to prove it."

    Twenty years and four kids later, Icke is far removed from the pressure and deadline-driven world that she thrived on in back in her early 20s and 30s. A stay-at-home mom in Weston, Mass., her life now revolves around her four children, who range in age from six to 12. She has been home with her children for nearly a decade and doesn't regret the decision, she said. "I was having a really macho career, I was in the right place and now, I sort of feel like I have other fish to fry," she said.

    Not an Unusual Story Icke's career trajectory is typical of many of her fellow female undergraduates at Harvard who subsequently got their MBAs, according to a new study from UC Berkeley's Haas School of Business. A surprising number of these women have dropped out of the labor force to become stay-at-home mothers, according to Berkeley professors Catherine Wolfram and Jane Leber Herr. Their study, titled "Opt-Out Patterns Across Careers: Labor Force Participation Rates Among Educated Mothers," followed the career paths of nearly 1,000 women who graduated from Harvard between 1988 and 1991, using a rich set of biographical data culled from 10th and 15th anniversary reunion surveys.

    By the time they are 15 years out of college, 28% of the Harvard women who went on to get their MBAs were stay-at-home moms, compared to only 6% of women who got medical degrees, the authors found. The study also looked at the career paths of Harvard women who became lawyers and found 21% chose to stay home with their children. Some of the women in the study managed to to strike a balance between family life and work. For example, the highest percentage of women in the study to work part-time were doctors, while women in business, especially those in finance and banking, were the least likely to have done so, the study showed.

    The study highlights the challenges women with MBAs face as they try to balance family life and fast-paced careers in the business world. Female enrollment at 25 of the top U.S. full-time MBA programs hovers around 31%, according to a 2007 study by the Forte Foundation, a consortium of schools working to increase the number of women pursuing MBAs.

    Long Hours and Mandatory Face Time

    Keeping women with MBAs in the work force remains yet another pressing problem, complicated by the fact that many women graduate from business school right around the time they want to start a family. This becomes an even trickier proposition for women MBAs who work in fields like banking and consulting, which require long hours and mandatory face time, said Elissa Sangster, executive director of the Forte Foundation.

    "There are plenty of women out there who have made it work, but they all have their own individual stories, whether it's a nanny, a stay-at-home dad, or working it out with an individual manager who happens to have gone through the same thing," Sangster said. "It's all very one-off. The infrastructure is not there in the business world, and that's what has yet to rise up in these industries."

    Continued in article

    The UC Berkeley study is reported at http://www.businessweek.com/bschools/rankings/full_time_mba_profiles/haas.html

    Women With MBAs --- http://www.businessweek.com/bschools/content/may2007/bs20070510_162993.htm

    Jensen Comment

    Unlike MBA graduation statistics, over half the graduates in accountancy are women. This might complicate a similar drop out study for younger women accountants on the job.

    I don't know that a similar drop out study has been done with respect to female accountants versus male accountants. I would expect total drop out (not necessarily turnover) is a bit less of a problem with accounting mothers and fathers who want to be at home more for their children. The reason today is that many accounting jobs in recent years can be heavily performed at home online with the terrific accounting software and changing accounting employment opportunities available. CPA firms have especially designed creative alternatives for working mothers. Turnover is somewhat high with auditors after about five years on the job, but this turnover is historic for men and women. It was, and still is, very common for auditors to leave public accounting (where hours are often long and travel can be tiresome). Many experienced accountants opt out for 40-hour weekly jobs in the corporate and government arena. Often young auditors accept offers from their former auditing and tax clients.

    Most students who enter accounting doctoral programs do so after 1-5 years on the job, but the numbers here are so small that these probably would not impact on any survey of working accountants --- http://faculty.trinity.edu/rjensen/theory01.htm#DoctoralPrograms

    Three of the Big Four multinational accounting firms are among the very top companies of the the world for working moms at Ranks 4/100, 5/100, 8/100
    And all four are in the 15-year Hall of Fame for working moms ---
    https://www.workingmother.com/working-mother-100-best-companies-winners-2019

    The Big Four firms are among the very best companies to work for in general at Ranks 26/100, 34/100, 36/100, and 44/100 ---
    https://fortune.com/best-companies/

     


    Question
    Will the business school faculty shortage be a thing of the past?

    "Business PhD Applications on the Rise:  A weak job market has many contemplating PhDs and faculty jobs. Will the business school faculty shortage be a thing of the past?" by Alison Damast, Business Week, May 11, 2009 ---
    http://www.businessweek.com/bschools/content/may2009/bs20090511_815452.htm?link_position=link1

    With expenses such as business lunches being curtailed and a dwindling list of new clients, Wayne Nelms knew it was only a matter of time before he would be laid off by accounting firm Grant Thornton.

    "The writing was on the wall. I just didn't know when," says Nelms, 36, who worked as senior internal auditor at the company's Baltimore office for two-and-a-half-years. "Then I got the e-mail."

    By January he was out of a job and found himself at a crossroads. Reluctant to jump back into the job market immediately, he started exploring his options and stumbled upon the PhD Project, a nonprofit that encourages minority business professionals to earn PhDs and go on to become professors. He'd heard of the program back when he was an MBA student at Howard University but had put it on the back burner after graduation.

    "When D-day happened, I decided, well I can do one of two things with my future: Either get a doctorate or look for a good old dependable job," said Nelms, who got in contact with the PhD Project. A few weeks later he applied and was accepted to the accounting PhD program at Morgan State University in Baltimore, Md., where he'll be starting full-time this fall. Says Nelms: "With a doctorate, I thought my destiny would be a little more in my control."

    Nelms is part of a growing wave of professionals who are leaving the battered business world behind for a career in the hallowed halls of academia. Applications are up substantially this year at many top business PhD programs, with some business schools reporting jumps in applications as high as 40%. PhD program directors attribute the jump to professionals fleeing a weak job market, coupled with a surge of interest from undergraduates bypassing that job market entirely to head straight for school.

    An Encouraging Sign Meanwhile, organizations like the PhD Project say more people than ever before are expressing interest in their programs and annual conference, which attracted the largest number of participants in the organization's 15-year history this fall. It's an encouraging sign for the world of management education, where a looming faculty shortage has had B-school deans worried for years.

    The surge of interest in becoming a business professor comes just as a backlash is being felt among those in the business community who hold MBAs, says Yuval Bar-Or, an adjunct at Johns Hopkins University's Carey Business School and author of Is a PhD for Me? A Cautionary Guide for Aspiring Doctoral Students, slated for release on May 19. Many fleeing the business world for academia may view it as a more venerable profession, he says.

    "MBAs are now persona non grata in many places, and there is a fair amount of animosity being directed at them for living in the fast lane, spending everyone's money, and not being responsible enough," Bar-Or says. "So business leaders, in society's eyes, have been knocked off a pedestal, and that may be causing a lot of people with an interest in business to want to go down a path that is more respected in society."

    Those who have been thinking about getting a PhD are not wasting any time exploring their options. Potential PhD students were out in full force this fall at the PhD Project's annual conference in Chicago last November, where attendees mingled with professors and deans from nearly 100 business schools around the country. The conference usually attracts around 330 people, but this year 832 people applied, about 534 of whom were invited to attend.

    "This was a substantial increase. It was so big that we were starting to worry from a budgetary standpoint about how we were going to pay for everything and if the room and hotel was going to be big enough," said Bernie Milano, president of the PhD Project. He expects that interest will continue to grow. He's already received 65 applications for next year's conference, triple the amount he usually receives by this time of year, he says.

    Continued in article

    Jensen Comment
    There are a number of things working against an explosion of doctoral students in accountancy.
    Firstly, the traditionally large accounting doctoral programs (Illinois, Texas, Michigan, Indiana, Florida, Wisconsin, Ohio State, etc.) have greatly shrunk in size since their days of glory before the "accountics" revolution commenced in the 1960s. Shrinking departmental budgets will further dry up funding going into doctoral programs and accounting research in general. Generosity of hard-pressed accounting firms and alumni may also shrink private donations that are often used heavily to fund endowed chair faculty and other needs of doctoral programs.

    Secondly, many jobless accountants with high GMAT scores often have children and financial responsibilities and will be turned off by the five-year average time it takes to get an accounting PhD, especially for jobless applicants who have weak and or maybe  forgotten  accountics prerequisites (calculus, advanced calculus, linear algebra, mathematical statistics, econometrics, data mining, etc.) for which few have interest in studying for five more years of their lives. Accounting doctoral programs now have little to do with accounting and everything to do with making graduates scientists in econometrics, mathematics, and psychometrics --- http://faculty.trinity.edu/rjensen/theory01.htm#DoctoralPrograms

    Thirdly, virtually all colleges and universities are now being forced to downsize in some way due to shrinking budget allocations. Recovery of these budgets will be slow long after the current recession turns around because of the many demands placed upon states for other priorities such as Medicare and expanded welfare that was only temporarily shrunk by the Clinton Administration.. While expanding entitlements for poor people, President Obama promises to eventually reduce the Federal deficit which means more and more of the funding burdens will fall upon state taxation. Californians are now showing the world that taxpayers are not in the mood for higher state taxes. I do not anticipate that the shrinking doctoral programs in accountancy will get heavy revival funding for years to come.

    Fourthly, due to shrinking budgets and explosive growth in undergraduate accountancy programs, virtually all colleges and universities, with blessings from the AACSB, are creating full-time faculty positions for former practitioners who do not have accounting doctoral degrees (although many have law degrees or doctorates in other disciplines). These faculty reduce the demand for more expensive graduates from accountancy doctoral programs. And this is an outlet for early retirees who are great instructors with specialized skills (e.g., ERP, auditing, and tax) that are more in line with undergraduate teaching curricula in accountancy undergraduate and masters programs.

    The new AICPA-sponsored fellowship program for doctoral students who elect auditing and tax will help but the number of students funded in these professional specialties is too small to have much of an impact on filling empty tenure track positions. The KMPG Foundation fellowships for minority students has helped to get more African Americans into accounting doctoral programs, but I do not anticipate great increases in this funding source. The numerical impact of both these dedicated programs will be very small among the thousands of accountancy education programs in the United States.

    There will be substantial increases in the doctoral programs in management, marketing, MIS, and economics. Finance is a question mark since the number of undergraduate students majoring in finance will greatly decline due to black hole in job opportunities for graduates in finance. With declines in undergraduate finance majors there will be less demand for newly-minted professors of finance. Economics will probably fare better because the fact that economics doctoral students on average only take three years beyond a bachelors degree to complete the doctoral program. Three-year doctorates are  drawing cards to many returning jobless graduate students who do not want to spend more than three years earning a doctorate. And there will probably be increased opportunities for economists in Obama's exploding Federal government. Purportedly increasing numbers of doctoral students in economics are looking forward to civil service careers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

    You can read more about the accountics revolution that shrank the accountancy doctoral programs at http://faculty.trinity.edu/rjensen/395wpTAR/Web/TAR395wp.htm

    You can read more about trends in accountancy doctoral programs at
    http://faculty.trinity.edu/rjensen/theory01.htm#DoctoralPrograms

     


    ILLINOIS CPA SOCIETY'S 2007 SURVEY ON ACCOUNTING WOMEN
    Recently at its Women's Leadership Breakfast, the Illinois CPA Society (ICPAS) released the results of its fifth annual "Accounting Women: 2007 Survey on the Role of Women in CPA Firms." The survey found only slight shifts in hiring and retention patterns from the prior years' figures and that women are still underrepresented in key leadership positions. The survey, conducted through the Illinois CPA Society's Women's Executive Committee, tracks the percentage of women in Illinois CPA firms at three levels: senior/staff; senior manager/manager; and partner/principal. The 2007 survey document was sent to 78 Illinois firms with 15 or more professionals. While the percentage of women entering public accounting firms has decreased from 52 percent in 2004 to 49 percent in 2007, the number of women being retained at the senior manager/manager and partner/principal levels has slowly climbed from 39 percent to 42 percent and 16 percent to 18 percent, respectively, over this same period. Also, although the number of women in the most senior positions has moderately increased, the number of men continues to far outweigh women in the partner/principal positions.
    Andrew Priest, AccountingEducation.com, June 2007 ---
    http://accountingeducation.com/index.cfm?page=newsdetails&id=144980


    Question
    Why are there so few, if any left like Coach Gazowski?

    "Accounting Degrees Up 19 Percent: AICPA Report," SmartPros, May 6, 2008 --- http://accounting.smartpros.com/x61772.xml

    The American Institute of CPAs announced that more than 64,000 students graduated with bachelor's and master's degrees in accounting in the 2006-07 school year, a 19 percent increase since the 2003-04 school year, when the AICPA last surveyed this data.

    At the same time, over 203,000 students enrolled in accounting programs at both the undergraduate and graduate levels. This also represents a 19 percent increase since 2004, according to the AICPA study, 2008 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits. The gender ratio of graduates is fairly close at 52 percent female and 48 percent male.

    "The years in the aftermath of Sarbanes-Oxley have spotlighted the critical role the accounting profession plays in our capital market system," said Denny Reigle, AICPA director – academic and career development. "One fortunate result of SOX was greater interest in accounting on the part of students, as this report attests."

    The demands of Sarbanes-Oxley legislation likewise have led to substantial hiring increases by public accounting firms, the primary employers of new graduates. The AICPA report reveals that hiring by firms in 2006-07 shot up 83 percent over the previous three years. Sixty-seven percent of the firms that responded to the survey anticipate continued growth in hiring.

    This is the largest number of graduates in the 36 years the AICPA has been tracking this data.

    Jensen Comment
    What I find most interesting is that, while celebrating the post-SOX surge in the number of accounting graduates, we're reminded that we still produced more accountants when the Dow index was under $2,000, the AACSB was strict on standards, the largest CPA firms were mostly national instead of international, and the office space required for the largest CPA firms in any city was less than 10% of what it is today. A much higher proportion of our graduates in those days ended up working for smaller CPA firms or business firms. Four decades ago client-firm executives were less inclined to seek out creative accounting to pad their stock options since their pay was reasonable and not so contractually tied to earnings numbers.

    Historical cost ala Payton and Littleton ruled the accounting world with underlying concepts such as the matching principle. Audit trails did not disappear inside computers or the Cayman Islands.  Substantive tests reined supreme in auditing.

    Judging from the adverse PCAOB oversight reports of audits in the past couple years, I think the auditing firms were more professional four decades ago and were less inclined to cut corners due to budget overruns and staff shortages. This is only my subjective opinion based upon my very limited career as a real-world auditor with flying fingers on a 10-key adding machine. We actually trudged down to Pueblo, Colorado to count pistons on Sundays and waded through the muck in Montford's feed lots in Greeley in order to estimate the amount of piled up manure inventory.

    Students today have never seen one of those typewriter-sized calculators with the moving bar that ratcheted back and forth sort of on its own after being given a calculation to perform.

    Four decades ago the CPA exam was narrow and deep compared with with shallow and wide today when we have so many more complicated standards that are barely touched on the CPA exam. I think the first-time passage rate has remained pretty stable (15%-25%) over the years such that somebody must be controlling the faucet.

    We had one woman in the Denver office of Ernst & Ernst, who did tax returns in the back office amidst a cloud of cigarette smoke. Emma was rarely, if ever, allowed to see a client. Those were not the good old days in many respects. Even though we produced more accounting graduates in four decades ago, they were mostly white males. Women graduates were supposed to be K-12 teachers and nurses rather than doctors, lawyers, CEOs, CFOs, and accountants. Hispanics and blacks rarely had opportunities to attend college. Many of our attitudes about fairness and opportunity have changed for the good. But many of our attitudes about compensation, life style, families, divorce, drugs, plagiarism/cheating, and work have changed for the bad.

    A C-grade was actually considered the median grade in college four decades ago --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#GradeInflation
    Accounting graduates did not have to have all A or B+ grades to be interviewed for jobs.

    Our teachers were not denied tenure because they were scholars rather than researchers. Even if they were tough as nails and piled the work over our heads in courses, they could still get tenure, respect, and pay raises. Most of the professors I look back on with admiration, in retrospect, would be un-tenurable today because they devoted too much time to their craft and scared the bejeebers out of us. I can just imagine the cursing words that would be written about them if we had RATE-MY-PROFESSOR in those days --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#RateMyProfessor
    But then again maybe the cursing words would not have flowed because I think we had more respect for our teachers in those days.

    Randy Pausch said it very well when he wrote about his tough old football coach, Coach Graham, in Chapter Seven of The Last Lecture (Hyperion Books, 2008, IABN 978-1-4013-2325-7).

    . . . one of the assistant coaches came over to reassure me. "Coach Graham rode you pretty hard , didn't he?" he said.

    I could barely muster a "yeah."

    "That's a good thing," the assistant told me. "When you're screwing up and nobody says anything to you anymore, that means they've given up on you."

    . . .

    There's a lot of talk these days about giving children self-esteem. It's not something you can give;  it's something they have to build. Coach Graham worked in a no-coddling zone. Self-esteem? He knew there was really only one way to teach kids how to develop it:  You give them something they can't do, they work hard until they find they can do it, and your just keep repeating the process.

    When Coach Graham first got hold of me, I was this wimpy kid with no skills, no physical strength, and no conditioning. But he made me realize that if I work hard enough, there will be things I can do tomorrow that I can't do today. Even now, having just turned forty-seven, I can give you a three point stance that any NFL lineman would be proud of.

    I realize that, these days, a guy like Coach Graham might get thrown out of a youth sports league. He'd be too tough. Parents would complain.

    I remember one game when our team was playing terribly. At halftime, in our rush for water, we almost knocked over the water bucket. Coach Graham was livid:  "Jeez! That's the most I've seen you boys move since this game started!" We were eleven years old, just standing there, afraid he'd pick us up one by one and break us with his bare hands. "Water?" he barked. "You boys want water?" He lifted the bucket and dumped all the water on the ground.

    . . .

    It saddens me that many kids today are so coddled. I think back to how I felt during that halftime rant. Yes, I was thirsty. But more than that, I felt humiliated. We had all let down Coach Graham, and he let us know it in a way we'd never forget. He was right.

    . . .

    I haven't seen Coach Graham since I was a teen, but he just keeps showing up in my head, forcing me to work harder whenever I feel like quitting, forcing me to be better. He gave me a feedback loop for life.

    Bob Jensen's football coach would've viewed Coach Graham as a wimp. My Algona High School coach's name was "The" Coach Tony Gazowski. Tony grew up Polish and tough in the shadows of the steel mills in Pittsburgh. He became an "All-Big-Ten" defensive end at the University of Iowa and never did catch on that later in life he was a football coach and not a Marine drill instructor (he was also a former Marine sergeant). Coach Gazowski did for me what Coach Graham did for Randy, but Coach Gazowski sometimes went a bit too far in urging us to play a bit rougher than the rules allowed if we thought we could get away with it. This might be a good thing to do on a wartime battlefield, but it's not something I recommend in athletics and most other aspects of life.

    You can read more about Randy and find the link to the video of his "Last Lecture" and commentaries that followed at
    http://faculty.trinity.edu/rjensen/tidbits/2008/tidbits080415.htm


    "My Life in Crime: Chronicles of a Forensic Accountant," by William C. Barrett III, SmartPros, January 2008 ---
    http://accounting.smartpros.com/x59274.xml

    The profession of forensic accounting is like any other industry niche: You evolve to a plateau where track record and honed skills permit you to "hold out" as a professional. Then, like any other business, you starve a lot before you become an overnight sensation -- in demand and truly at the top of your practice in providing value -- both on scene and in the courtroom.

    Here are a few of the cases I have directed to give you an idea of how well-developed professional skepticism prevails to reveal the fraudster -- usually a well-educated, respected member of the community, quite adept at concealing and perpetuating fraud by bending others to his or her will.

    Continued in article at http://accounting.smartpros.com/x59274.xml

    Bob Jensen's fraud updates are at http://faculty.trinity.edu/rjensen/FraudUpdates.htm


    "Many of America’s Best CFOs Started in Accounting or Auditing," AccountingWeb, March 29, 2006 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=101935

    Institutional Investor magazine has completed their third annual “America’s best CFOs” ranking. They asked brokerage firm research analysts and portfolio managers to name the Best American CFOs across 62 industries. The voting criteria started at keeping clean books and communicating effectively with the market and ascended to going beyond traditional number-crunching, cost-controlling roles, improving operations, driving revenue growth, and executing big acquisitions.

    Vinay Couto, a vice president at consulting firm Booz Allen Hamilton, told Institutional Investor, “CFOs have spent the past decade or so moving from being bookkeepers to being business partners. In the past year or two, we’ve seen that trend accelerate to the point where a growing number of CEOs are asking CFOs to step even further outside the traditional bounds of their positions and be responsible for pushing the business forward in an active way.”

    “There are a lot of CFOs out there that are controllers with fancy titles. They know how to say no, and they’re good at cost cutting. But what CEOs want now are people who can think beyond cost controls and help grow the business. We’re entering a phase of the business cycle where things are growing again, and CFOs have to change their stripes,” Laurence Stybel, co-founder and founder of Stybel Peabody Lincolnshire in Boston, told Institutional Investor.

    Several of the CFOS on this year’s list started in the accounting or auditing world. Jeffrey M. Boromisa is Senior Vice President and Corporate Controller of the Kellogg Company. He joined Kellogg in 1981 as a senior auditor. Boromisa is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

    Mike Van Handel is the Executive Vice President and CFO for Manpower. In 1989, he joined the company as Director of Internal Audit and was named Vice President of International Accounting in 1993, but his career track didn’t stop there. He was named Chief Accounting Officer and Treasurer in 1995 and became Senior Vice President and CFO in 1998. Van Handel became Executive Vice President in 2002. He came to Manpower after serving as Audit Manager at Arthur Andersen & Company.

    Christopher Kubasik is the Executive Vice President and CFO of the Lockheed Martin Corporation. He is Chairman of the Board of Directors of the Lockheed Martin Investment Management Company that manages the company’s pension assets. He handles all corporate aspects of financial strategies, processes, and operations. Kubasik was at Ernst & Young before coming to Lockheed Martin, becoming a partner in 1996, specializing in government contracting and high technology companies.


    "New Grads Are Impatient for Promotions," by Emily Meehan, The Wall Street Journal, June 20, 2007 --- Click Here

    Twentysomethings are accustomed to meeting short-term goals in schools with quarter and semester systems. They expect to see results on the job just as quickly and when they don't, impatience sets in. The disgruntled say that they don't necessarily want more money, they want stimulating assignments that give meaning to their lives.

    . . .

    Matt Miades, a 39-year-old recruiter at PricewaterhouseCoopers in Philadelphia, counsels twentysomething associates at the firm to be less impetuous. Pricewaterhouse hires entry-level associates to do auditing, but they're not promoted only on the basis of their auditing skills. The firm promotes people with managerial chops who demonstrate their communication skills (important for dealing with clients), says Mr. Miades. And successfully executing an advanced task just once or twice is not enough.

    That means it can be years before a promotion happens. "We have a very keen sense of when the cake needs to bake a little longer," he says. But Mr. Miades says it's worth it for associate X to keep his or her wagon hitched to the Big Four accounting firm "surrounded by high-performing people … [and] all sorts of opportunities." Being patient and staying at one firm also allows entry-level workers to develop relationships, he says, which is key in advancing their skills and careers.

    Mr. Miades and other partners aren't going to hassle a 22-year-old about his management skills. They'll give The Freshman some time to adjust to auditing. Mr. Miades says he encourages new hires to adapt their timelines from a semester scale to a corporate one, which isn't as clearly delineated. He makes a point of reaching out to them in meetings, at monthly happy hours or the impromptu game of pool after work.

    Continued in article


    Accountants' SOX are attention grabbers
    However, regulatory changes such as Sarbanes-Oxley Section 404 have increased tax departments' visibility in front of key audiences. Almost half (46 percent) of respondents reported that Section 404 has increased the department's visibility to the company's board of directors, and 58 percent say that it has increased visibility to the audit committee. The KPMG survey results also point to a gap between tax directors' increasing concern about tax risk and the amount of time they have to identify and minimize it. Definitions of "tax risk" vary among respondents from "risk of tax audit" or "financial reporting risk" to "risk of effective tax rate surprises" and "management of tax return filing issues."
    "KPMG Study Reveals State of Corporate Tax," SmartPros, November 3, 2006 ---


    Question
    In the public accounting profession, what's a PFS
    ?

    Hint
    PFS is a new credential to put after one's name --- it looks better than Pfffssssttt

    The American Institute of Certified Public Accountants (AICPA) and Texas Tech University's Division of Personal Financial Planning have announced a joint agreement to develop a new educational program that will lead to the AICPA's Personal Financial Specialist (PFS) credential. The program will officially begin in June 2009, but the AICPA and Texas Tech have announced that they will conduct a PFS Pathway beta program or test program at AICPA offices in Dallas November 10 through 14th. The PFS beta program consists of four days of intense comprehensive personal financial planning case study in 12 technical areas, including estate planning, employee benefits, investment planning, financial independence, and income tax planning. Participants take an eight-hour multiple choice exam of approximately 200 questions on the fifth day.
    "AICPA and Texas Tech announce new pathway to PFS credential," AccountingWeb, August 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=105793

    Personal Finance Helpers
    From Smart Stops on the Web, Journal of Accountancy, July 2008

    KEEPING IT SIMPLE
    www.bargaineering.com/articles
    This Smart Stop’s author puts together a “Blueprint for Financial Prosperity,” working and blogging through the complexities of personal finance. Articles include “Speed Up or Shift Up: Thinking About Your Income Path” and “Do You Have an Opportunity Fund?” Also find tax and investing coverage, plus reviews of financial planning and wealth management books. Every month, the author plays “Devil’s Advocate,” where he examines the other side of “mainstream” or “common sense” personal finance ideas. Recent “Advocate” posts include “Don’t Budget to the Penny” and “Don’t Just Buy Index Funds.”

    THIS WEEK IN PERSONAL FINANCE
    www.carnivalofpersonalfinance.com
    The Carnival of Personal Finance touts itself as “a traveling weekly showcase of the best blog articles on the topic.” The carnival is hosted by a different guest blogger each week. In every edition, you’ll find links to the guest editor’s picks of the week, typically highlighting five to 10 posts from various sources, which feature expert advice on professional sites or regular-Joe experiences on personal sites. You can submit your own post for consideration, view the schedule of upcoming hosts or just browse the wealth of archived articles.

    "Feed the Pig" is the AICPA's terrible name for its free site for helping people with personal finances
     http://www.aicpa.org/financialliteracy/FeedThePig/
    "New Feed the Pig Curriculum Targets Younger Audience, Journal of Accountancy, December 2008 --- http://www.journalofaccountancy.com/Issues/2008/Dec/NewFTPTargetsYoungerAudience.htm

    Financial Literacy Tools 2013
    The AICPA's financial literacy campaign has reached many individuals in creative ways, writes Melora C. Heavey, senior manager of communications at AICPA. A community college teacher uses the interactive Me Save feature on the Feed the Pig website to help her students identify what type of spenders they are. A friend uses the 360 Retirement Planner to make sure he is on track with his savings. Other popular tools include the Weekly Savings Tip and Tweens Curriculum. AICPA Insights

    Spreading Financial Well Being ---
    http://blog.aicpa.org/2013/01/spreading-financial-well-being.html#sthash.cJDIaL8x.azMXjhsc.dpbs

    Bob Jensen's threads on personal finance are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Bob Jensen's threads on credit reporting are at http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO

    Bob Jensen's helpers for finding a financial advisor are at http://faculty.trinity.edu/rjensen/fees.htm

    Bob Jensen's career helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    Watch for Fraud When Trying to Repair Your Credit ( FICO ) Score ---
     http://www.creditscore.net/
     


    "Accounting Firms Among BusinessWeek’s 'Best Places to Launch a Career'," AccountingWeb, September 22, 2006 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=102606

    When it comes to launching a career, four accounting firms have made BusinessWeek’s list of best places to start. Only three of the “Big Four” firms, Deloitte & Touche USA LLP, Ernst & Young and KPMG LLP, are among the top 55 places to launch a career. Grant Thornton LLP is the only non-Big Four firm appearing on the list.

    BusinessWeek’s analysis of top employers for recent college graduates is the most comprehensive of its kind, examining feedback from students, college career counselors, and employers themselves, to reveal which companies offer the biggest advantages for entry-level employees, such as the highest pay, the quickest advancement and the best training programs.

    Deloitte & Touche, where one-quarter of all partners have been with the firm for more than 20 years, held the highest ranking among accounting firms at number 3. In addition, one-third of experienced hires are “boomerangs” who have left and returned.

    The permanent four-day weekends for Labor Day, July 4th and Memorial Day, instituted in 2005, helped Ernst & Young land in the number 12 spot on the BusinessWeek list. The firm is the only one of the ranked accounting firms not offering a management training program.

    KPMG’s allotment of 25 paid days off for entry level professionals is among the most generous offerings on the list and good enough to earn the firm a number 15 ranking.

    “I am very proud of the fact that so many students, counselors and employees see our firm as one where they can make a professional home – and make a difference,” Ed Nusbaum, Grant Thornton’s chief executive officer (CEO), said in a prepared statement. “Great people are our brand, so I am pleased that we are a coveted place to work.”

    In ranking Grant Thornton as number 34, BusinessWeek highlighted the fact that more than four out of five interns become full-time associates. The firm’s most valuable trait is identified as its leadership skills, and LEADS, the leadership development program, was specifically noted.

    With four ranked firms, the accounting industry makes a very respectable showing on this year's list. The industry with the most ranked firms was the financial services industry, having nine ranked firms. In second place, with seven ranked firms, is the consulting industry, followed closely by the the consumer goods and government industries, which both had six ranked firms.


    Career helpers for cubicle workers --- http://cuberules.com/


    Career Opportunities Explode in Internal Auditing

    "Internal Auditing Gaining in Popularity," AccountingWeb, April 17, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=102032

    With internal auditors taking a more prominent role in U.S. companies, the popularity of the field is surging. "Our membership has more than doubled in the last 10 years," said Trish Harris, director of communications for The Institute of Internal Auditors (IIA). "There's been huge growth."

    The IIA's membership has grown 38 percent since 2000, and the number of people taking the certified internal auditor exam rose from 30,634 to 38,000 in 2005, the Pittsburgh Business Times reported.

    The Sarbanes-Oxley corporate reform legislation brought internal auditing out of the back rooms of corporate headquarters. Now, internal auditors are reporting directly to the CEO or board of directors, and their visibility makes it easier for them to get promoted.

    "People who work in internal auditing have the opportunity to see every corner of the enterprise and interact with executives throughout the company," said Bill Strait, director of internal audit for Respironics Inc., which makes sleep apnea devices. "Because of (Sarbanes-Oxley), because of business failures, it's become even more of a launching pad for people moving into important areas of the company."

    Continued in article


    CareerJournal.com (all disciplines) --- http://www.careerjournal.com/


    Question
    What do CFOs think accounting undergraduate and masters programs are doing better than ever before?

    Answer
    "Colleges and universities are responding to a changing accounting landscape," said Max Messmer, chairman of Accountemps. "More courses are being offered in areas such as internal audit, enterprise risk management, forensic accounting, information technology and business ethics." The appeal of an accounting career is growing, perhaps as a result of increased emphasis on the profession. According to the American Institute of Certified Public Accountants, enrollment in accounting programs climbed 19 percent from 2000 to 2004, following declines during the late 1990s. There also was a 17 percent increase in the number of new accounting graduates hired by organizations between 2003 and 2004.
    "Accounting Grads Better Prepared, Survey Says," AccountingWeb, January 31, 2006 --- http://accounting.smartpros.com/x51625.xml


    Nearly 1,500 accounting and finance professionals with a wide variety of experience reported an average annual salary of $70,497 in the just-released SmartPros Salary Survey. Among the findings, certifications such as the CMA or CPA continue to significantly boost salaries. The full report contains survey data by area of practice, professional title, certification and years of experience, and results from the "most valued benefit" poll.
    "SmartPros Salary Survey Results: CPAs, CFOs," SmartPros, February 2006 --- http://accounting.smartpros.com/x51651.xml


    Sort of Knocks Your SOX Off:  Accounting Firms Post Double-Digit Growth Rates
    The past year has been profitable for the majority of accounting firms, with an average growth rate of 16.5 percent, the highest reported growth since 2000, according to the CCH Public Accounting Report Top 100 list released Friday. Firms outside the Big Four posted stronger overall results than their larger counterparts, with non-Big Four firms growing their revenue at an average rate of 21.9 percent compared to 14.7 percent for the Big Four.
    "Accounting Firms Post Double-Digit Growth Rates," SmartPros, September 5, 2006 --- http://accounting.smartpros.com/x54636.xml
     


    Question
    Who are the highest paid undergraduates in their starting jobs?
     


    ACCOUNTING RATES SIXTH IN MAJORS WITH HIGHEST AVERAGE STARTING SALARY OFFERS
    Accounting Education News --- http://accountingeducation.com/index.cfm?page=newsdetails&id=142419

    Source: National Association of Colleges and Employers
    Country: United States
    Date: 27/02/2006
    Contributor: Andrew Priest
    Web: http://www.naceweb.org

     

    The following majors have the highest salaries paid to 2005-06 graduates (average salary offers are in parentheses): Chemical engineering ($55,900)


    Extreme Accounting (they're not as dull as you may think)

    Welcome to the home of Extreme-Accounting: a new phenomenon that pushes accountants to their limits – and beyond! ---
    http://www.extreme-accounting.com/

    Are you bored with the everyday routine of extreme sports?

    • Is skydiving over shark-infested waters just another drop in the ocean?
    • Does going backwards, on one leg, down a black ski run leave you cold?
    • Have white water rafters begun to seem just a bit wet?
    • Has free-running round your local sink housing estate become a walk in the park?
    • Are you so far "out there" that you're practically back inside again?

    If so, then maybe you should try injecting the adrenaline rush of accounting into the whole experience...


    November 21, 2005 message from Donald Ramsey [dramsey@UDC.EDU]

    For an awesome list of 43 professional certifications in accounting and finance, compiled by Prof. Greg Burbage of Sacramento City College, check http://www.scc.losrios.edu/~burbagg/CPALinks.html


    The Lure of an Executive MBA Program in China

    From The Wall Street Journal Accounting Weekly Review on June 20, 2008

    China Beckons for M.B.A. Trips
    by Samar Srivastava
    The Wall Street Journal

    Jun 17, 2008
    Page: D7
    Click here to view the full article on WSJ.com ---
    http://online.wsj.com/article/SB121364686908778517.html?mod=djem_jiewr_AC
     

    TOPICS: Accounting

    SUMMARY: David Gannaway is a "44-year-old director of forensic accounting at KPMG LLP" who holds an MBA from Fordham University. He says that "the school's offering of a capstone trip to China helped seal his decision" to enter the Executive M.B.A. program there.

    CLASSROOM APPLICATION: Career options for accountants beyond the CPA and domestic borders can be discussed with this article

    QUESTIONS: 
    1. (Introductory) In general, what career options are available to accountants beyond the CPA and beyond domestic borders? List all that you can.

    2. (Advanced) What is a forensic accountant? Why do you think the KPMG LLP director of forensic accounting entered an MBA program?

    3. (Introductory) What is the importance today of international experience? Is it limited only to accountants practicing in large firms?

    4. (Advanced) Summarize, citing one or two themes, students' reasoning for entering into programs with international study available. Are those reasons necessarily the same as the benefits students identify after completing the programs?
     

    Reviewed By: Judy Beckman, University of Rhode Island
     

    "China Beckons for M.B.A. Trips Tours Offer Chance To Make Contacts, Learn Lay of Land," by Samar Srivastava, The Wall Street Journal,  June 17, 2008 ---
    http://online.wsj.com/article/SB121364686908778517.html?mod=djem_jiewr_AC 

    When David Gannaway was looking for an executive M.B.A. program, he wasn't interested only in a school's reputation. The 44-year-old director of forensic accounting at KPMG LLP wanted details on the schools' destination for E.M.B.A. international-study trips.

    International trips have been a staple feature of E.M.B.A. programs -- fast-track M.B.A. programs typically held every other weekend and geared toward managers with several years of experience -- for the past two decades. These trips, which typically span two weeks, are designed to give students a broader understanding of global business.

    Over the years, Argentina, Hungary, Russia and Singapore had dotted the trip lists. Now, E.M.B.A. candidates are increasingly demanding to go to China, as more managers -- and prospective E.M.B.A. students -- say they see themselves doing business there. Some say they are able to use the trips to suggest changes in the ways their companies do business in China.

    Ahead of India

    In 2007, 49% of such trips were to China, according to the Executive MBA Council, an industry association. In distant second place: India, with 11% of study trips outside the U.S.

    The impetus for growth goes to the heart of the challenges of a global economy. Managers and executives regularly complain about the difficulty they have in understanding China. They cite a vastly different culture, a language that doesn't use the Roman alphabet and a different socioeconomic structure from the West's. And, executives say, getting to know China and its business climate is now critical to a career.

    Mr. Gannaway, who graduated last month from Fordham University, says the school's offering of a capstone trip to China helped seal his decision.

    School administrators say they hear that a lot. It "is one of the first questions the students ask," says Jaki Sitterle, managing director of executive programs at New York University's Stern School of Business. Two years ago, when the University of Arizona's Eller College of Management proposed an international trip to South Africa, its administrators were compelled to go to China after students complained.

    Continued in article

    Bob Jensen's threads on careers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

     


    Occupational Outlook Handbook, 2006-2007 Edition --- http://www.bls.gov/oco/home.htm

    For hundreds of different types of jobs—such as teacher, lawyer, and nurse—the Occupational Outlook Handbook tells you:

    In addition, the Handbook gives you job search tips, links to information about the job market in each State, and more.

    Accountants and Auditors --- http://www.bls.gov/oco/ocos001.htm

    Employment of accountants and auditors is expected to grow faster than average for all occupations through the year 2014. An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation.

    As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information developed by accountants and auditors regarding costs, expenditures, and taxes will increase as well. An increased need for accountants and auditors will arise from changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial events. The growth of international business also has led to more demand for accounting expertise and services related to international trade and accounting rules, as well as to international mergers and acquisitions. These trends should create more jobs for accountants and auditors.

    As a result of accounting scandals at several large corporate companies, Congress passed legislation in an effort to curb corporate accounting fraud. This legislation requires public companies to maintain well-functioning internal controls to ensure the accuracy and reliability of their financial reporting. It also holds the company’s chief executive personally responsible for falsely reporting financial information.

    These changes should lead to increased scrutiny of company finances and accounting procedures and should create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly. In order to ensure that finances comply with the law before public accountants conduct audits, management accountants and internal auditors increasingly will be needed to discover and eliminate fraud. Also, in an effort to make government agencies more efficient and accountable, demand for government accountants should increase.

    Increased awareness of financial crimes such as embezzlement, bribery, and securities fraud will increase the demand for forensic accountants, to detect illegal financial activity by individuals, companies, and organized crime rings. Computer technology has made these crimes easier to commit, and they are on the rise. At the same time, the development of new computer software and electronic surveillance technology has made tracking down financial criminals easier, thus increasing the ease with which, and likelihood that, forensic accountants will discover their crimes. As success rates of investigations grow, demand also will grow for forensic accountants.

    The changing role of accountants and auditors also will spur job growth, although this growth will be limited as a result of financial scandals. In response to demand, some accountants were offering more financial management and consulting services as they assumed a greater advisory role and developed more sophisticated accounting systems. Because Federal legislation now prohibits accountants from providing nontraditional services to clients whose books they audit, opportunities for accountants to offer such services could be limited. However, accountants will still be able to advise on other financial matters for clients that are not publicly traded companies and for nonaudit clients, but growth in these areas will be slower than in the past. Also, due to the increasing popularity of tax preparation firms and computer software, accountants will shift away from tax preparation. As computer programs continue to simplify some accounting-related tasks, clerical staff will increasingly handle many routine calculations.

    Overall, job opportunities for accountants and auditors should be favorable. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs declined; however, enrollment is slowly beginning to grow again as more students become attracted to the profession because of the attention from the accounting scandals. Those who earn a CPA should have excellent job prospects. However, many accounting graduates are instead pursuing other certifications, such as the CMA and CIA, so job prospects may not be as favorable in management accounting and internal auditing as in public accounting. Regardless of specialty, accountants and auditors who have earned professional recognition through certification or licensure should have the best job prospects. Applicants with a master’s degree in accounting, or a master’s degree in business administration with a concentration in accounting, also will have an advantage. In the aftermath of the accounting scandals, professional certification is even more important in order to ensure that accountants’ credentials and ethics are sound.

    Proficiency in accounting and auditing computer software, or expertise in specialized areas such as international business, specific industries, or current legislation, may be helpful in landing certain accounting and auditing jobs. In addition, employers increasingly are seeking applicants with strong interpersonal and communication skills. Because many accountants work on teams with others from different backgrounds, they must be able to communicate accounting and financial information clearly and concisely. Regardless of one’s qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms.


    Over 45,000 lawyer jobs in the United States were lost since the 2008 economic meltdown
    Should we break out the Champagne? (just kidding)

    "Law Firm Recruiting Volumes Inch Up, Making Modest Gains After Recession-Era Declines," NALP, 2012 ---
    http://www.nalp.org/uploads/PerspectivesonFall2011.p


    Forensic Accounting
    There’s a rather nice module on Forensic Accounting at http://en.wikipedia.org/wiki/Forensic_Accounting
    This includes links to a journal and career opportunities.

    The link to the following article was forwarded by Charles Wankel [wankelc@VERIZON.NET]

    "Account for more than hill of beans," The Bay City Times Via The Saginaw News, December 16, 2007 --- Click Here

    When Kojo Quartey went to college to learn accounting 25 years ago, many considered the job a steady, unexciting career.

    But financial scandals in recent years at Enron, WorldCom and other companies have transformed the field, says Quartey, dean of Davenport University's Donald W. Maine School of Business.

    ''When I was an accounting student, we were all number crunchers. In this day and age, it's a much more exciting field,'' he said.

    Many accountants today are seeking specialized training to work as detectives who can sniff out financial fraud. They call themselves forensic accountants.

    Davenport, a Grand Rapids-based university with branches at 5300 Bay in Kochville Township and at 3930 Traxler Court in Bay County's Monitor Township, has two online offerings in the growing field. One is a new bachelor's degree in business administration in accounting fraud investigation and the other is a forensic accounting examiner certificate available to postgraduates.

    Forensic accountants undergo training to mind the books while keeping an eye out for crime.

    Demand for accountants who have such training is skyrocketing, Quartey told a group of Bay and Arenac county high school counselors.

    In addition to traditional accounting, forensic accountants may learn from law enforcement experts about how to detect fraud, and from psychologists about how to interview people to detect lying, Quartey said.

    Irene Bembenista teaches classes at Davenport required for the forensic examiner certificate.

    ''It's not just how to do an audit, but what are some of the clues that would indicate something more is going on? And ideas about where to further investigate,'' said Bembenista, Davenport's associate business school dean.

    Bembenista said 10 years ago, people did not generally recognize forensic accounting as a college career path.

    A federal law enacted in 2002 to reform accounting has brought the investigation field into its own. It's also created job opportunities because it requires accountants at public entities to maintain a separation of duties, Bembenista said.

    ''Accountants aren't allowed to do double duties, like taxes and audit the company at the same time,'' she said.

    ''And businesses are very interested in accountants with a fraud (detection) background, because they are looking out for the well-being of the organization.''

    The starting salary for an accounting fraud investigator is $48,000 to $60,000 a year, and certified forensic examiners can earn more than $100,000 a year, Davenport says compensation studies indicate.

    Davenport has about two dozen students enrolled in the forensic accounting certificate curriculum, Quartey said. The next term begins in January, and more information is available on the Internet at www.davenport.edu

    Bob Jensen's threads on forensic accounting are at http://faculty.trinity.edu/rjensen/fraud.htm


    Redesigning an MBA Curriculum Toward the Action

    "Wall Street Warms To Finance Degree With Focus on Math," by Ronald Alsop, The Wall Street Journal,  November 14, 2006; Page B7 --- Click Here

    Just a few years ago, the University of California, Berkeley, found its master's degree in financial engineering a hard sell. Wall Street had cut back sharply on hiring, and many recruiters were still fixated on M.B.A. graduates.

    "The doors were shut on us at the human-resource level on Wall Street," recalls Linda Kreitzman, executive director of the financial engineering program at Berkeley's Haas School of Business. "I had to go directly to managing directors to get our students placed after we started the program in 2001."

    Now, in a turnabout, it's often the banks and hedge funds that are calling on Dr. Kreitzman and offering her graduates six-figure compensation packages. "They have come to realize they really need students with strong skills in financial economics, math and computer modeling for more complex products like mortgage- and asset-backed securities and credit and equity derivatives," she says. This fall, all 58 financial engineering students seeking internships found spots at such companies as Citigroup, Lehman Brothers and Merrill Lynch. Their projects will include credit portfolio valuation, artificial-intelligence trading models and structured fixed-income products.

    While the master's in business administration certainly remains in high demand, companies are increasingly interested in other graduate-level credentials, including Ph.D.s and master's degrees in specific business fields. Deutsche Bank, for example, has hired Ph.D. and master-of-finance graduates in Europe for some time and is now recruiting more in the U.S. as well.

    "We are continually looking for strong quantitative skills," says Kristina Peters, global head of graduate recruiting. With a master's degree in finance, "there tends to be more applied finance knowledge such as derivatives pricing."

    Continued in article

    Jensen Comment
    The big question is where will auditing firms find accountants that can handle the exotic contracts written by the financial engineers?


    Survey reveals salaries for Management Accountants Rising
    Top management accountants and finance professionals pulled ahead of public accountants in both average salary and total compensation in 2004 as the new auditing requirements of the Sarbanes-Oxley Act took effect. Public accounting, which held the top spot in 2003, fell to 6th place last year with management accountants and finance professionals rising to first and second place, according to the findings of the 16th annual salary survey conducted by the Institute of Management Accountants (IMA). Salaries and compensation were found to be higher for professionals holding a Certified Management Accountant (CMA) credential only ($97,908), than for those with a Certified Public Accountant credential ($93,104) alone. Professionals holding both certifications had the highest earnings of all ($105,155), and those with neither certification had the lowest ($79,763).
    Andrew Priest, "New Survey reveals salaries for Management Accountants Rising," AccountingEducation.com, June 18, 2005 --- http://accountingeducation.com/news/news6298.html
    Note the the link to the IMA site is incorrect in the above article.  The correct link is http://www.imanet.org/ima/index.asp


    "Rules spur demand for accountants:   Universities can't turn them out fast enough," by Barbara Hagenbaugh, USA TODAY, January 18, 2005 --- http://www.usatoday.com/printedition/news/20050118/1a_bottomstrip18.art.htm 

    Call it the revenge of the nerds.

    While many professions have been slow to hire, accounting firms have been adding to their payrolls, leading to greater pay and perks for the nation's bean counters. In the last three months of 2004, the number of people working as accountants or bookkeepers rose 2.4%, nearly five times the rate of increase in jobs economywide, according to the government.

    “It's clearly one of the hottest markets (for accountants) that I've seen,” says Brent Inman of PricewaterhouseCoopers. On-campus hiring by his firm in 2004 was up 45% from two years earlier and is expected to grow 20% this year. Hiring of experienced accountants has been growing at a similar rate.

    The increases are mostly attributed to the federal Sarbanes-Oxley law, which created new government standards in the wake of accounting scandals, most notably at energy giant Enron, and led to a greater need for accountants.

    The job growth has sparked greater interest in accounting on college campuses. In the 2002-03 academic year, the most recent data, nearly 50,000 students received either bachelor's or master's degrees in accounting, up 11% from the prior year and the largest number in seven years, according to the American Institute of Certified Public Accountants.

    But the increase in students still can't keep up with demand.

    “There's still a lot of seats that need to be filled,” says William Hogan, a partner at accounting firm John R. Waters in Chicago.

    Accountants are increasingly able to call the shots when looking for jobs. They're demanding higher pay, flexible work arrangements and even signing bonuses. Hogan says annual pay for entry-level accountants at his firm rose approximately $10,000 to between $50,000 and $55,000 in two years.

    Accounting Grads Face Best Job Prospects in Years (increasing demand for an already short supply of accounting educators) College graduates with accounting degrees are entering the working world at a good time - recruiters are eager, jobs are plentiful and offers are attractive. 
    AccountingWEB, November 22, 2004 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=100115 

    LocalAccountingJobs.com has over 80,000 Active Accounting & Finance Job Applicants in our database on January 18, 2005!


    Job market site from the AACSB (It includes the higher education job market) --- http://www.aacsb.edu/jobs2/

    Accounting Professional Site Links 
    The CPA Team http://www.cpateam.com/  

    Bob Jensen's Threads on Professional Practice, Fees, Choosing Accountants, Financial Advisors, and Consultants 
    http://faculty.trinity.edu/rjensen/fees.htm
     

    December 8, 2004 message from the AACSB

    AACSB International's popular online career marketplace targets business education careers in all business disciplines and from all around the world.  Browse this job market site:
    Plus, you can sign up for automatic email notification of new postings - no need to browse the site on a daily basis!  And M.E.Jobs has links to other resources of interest to business school educators, such as school profiles, salary survey results, and seminars.
     
    Check our services out at www.aacsb.edu/jobs2, or contact mejobs@aacsb.edu
     

    "How accountancy can save lives: Olivia McGill of Goal UK wants to hear from accountants and engineers who would like to make a difference," The Guardian, October 4, 2006 --- http://society.guardian.co.uk/aid/story/0,,1887362,00.html

    Our accountants are helping to rebuild lives torn apart by war in Sudan. Our engineers saved lives after the earthquake in Pakistan. We are Goal UK, and we are looking for more people like you.

    People like David Cassidy, who spent three years as a management accountant with Rolls Royce, traveling widely in Britain and Germany, but who has just finished his first month as roving accountant with Goal - in Sudan. David says his life will never be the same again.

    "This is my first job in the humanitarian sector and unlikely to be my last," he said. "It's very different to life in the UK, the weather, the attitude, the people.

    "Most of the foreign nationals haven't had a formal education, which makes improving their ability in the profession difficult. What I enjoy most about my job is visiting Goal projects. Accounting is accounting, for me it's this environment that's exciting".

    Unlike many of the bigger international development aid agencies, Goal recruits professionals who have no volunteering experience. It's a policy that helped David to find his niche in the third sector.

    Founded in Ireland almost 30 years ago by John O'Shea, a former sports journalist, Goal is expanding in the UK, and is looking for more Goalies, as we call our volunteers. Goal UK is urgently looking for accountants and engineers, and two information evenings for recruits are coming up in London - the first is tomorrow.

    The aid agency has received praise from the likes of Mary Robinson, the former UN High Commissioner for Human Rights, Kofi Annan, the secretary general of the UN, and the Foreign Office.

    "For Goalies, Goal represents a non-bureaucratic approach to work, a can-do attitude, and with a low administration cost - under 5% - you're confident that the money is going straight to projects we're working on," David said.

    Martin Otley, an associated chartered accountant, is just back from a year with Goal as a financial controller in Honduras.

    Sitting at his old desk in Deloitte Touche in London, he is patiently waiting for the dust to settle.

    "I felt like I was in a factory, I couldn't sit another day here. I wanted to see another part of the world - and I had an interest in development work so it wasn't purely altruistic," he said. "My biggest challenge was being part of the emergency response after a hurricane in neighbouring El Salvador. Because Goal is one of the smaller organisations there are more decision making powers at my level.

    "As an NGO we worked closely with government agencies. It depends on what gives you a buzz, but for me that's very exciting."

    Goal was one of the first agencies to arrive in the Bagh region of Pakistan after the earthquake last October. Andy Cox, an engineer, was among those at the forefront of relief operations.

    "We saved lives by creating one warm room for the vulnerable," he said. "The people wanted to remain on or near their homesteads for winter, and we facilitated this.

    "Otherwise families would have streamed downhill when the cold set in. They would have crammed into camps where the potential for disease and protection issues would be extremely difficult to counteract."

    With a need for earthquake-resistant building practices, Goal funded workshops training masons and carpenters in safe building practices.

    Kubilay Hicyilmaz, a British earthquake engineer, said: "Few of the agencies, except for Goal and one other, had an engineer in Pakistan working to address the cause of the problem rather than just dealing with the fallout.

    "Through the workshops Goal identified individuals with the right skills, to ensure that the programme can continue even after we leave."

    Goal urgently needs accountants and engineers to volunteer to help run its programmes in 13 developing countries. There's plenty of scope for movement into management positions, and initiative is rewarded and emphasis placed on a proven ability to get things done.

    So why not transfer your skills to where they could make the difference between life and death?

    · Goal UK is holding an information evening for finance professionals on October 5 and for engineering professionals on October 19, both at 6.30pm at Jurys Kensington Hotel, Queens Gate, London. Registration is required: contact Laura Byrne on lbyrne@goal-uk.org or 020 7631 3196


    "Smart Stops on the Web," by Vince Nolan, Journal of Accountancy, August 2006 --- http://www.aicpa.org/pubs/jofa/aug2006/news_web.htm

     
    CAREER BUILDING SITES
    The Job Hunt
    www.quintcareers.com
    The Quintessential Careers Web portal offers links to job databases and search engines for more than 1,400 employment and resume-writing e-stops. Accounting and finance professionals also can research the latest starting salaries by geographic location and find schools offering continuing education programs. Once you’ve landed the interview, revisit the portal for behavioral interview strategies, interview dos and don’ts and tips for avoiding interview bloopers.

    The Selection Process
    http://jobstar.org
    You’ve done the resume-writing, posting and job-search thing and you have a few interviews lined up. Now come to this site to check out more than 300 free salary surveys, some specifically for accounting and finance, take a salary I.Q. test and learn strategies for negotiating a higher starting salary. Already employed and looking to make a change? Career Guides has resources and links to the fastest growing job opportunities and aptitude tests for new occupations.

    The Juggling Act
    http://wlb.monster.com
    You’ve got a new job and you’re busier than ever. Maybe too busy? Go to Monster’s Work/Life Balance Web stop for tips on how to simplify your work life in sections on office culture and politics, career development and managing time and stress levels. Also get advice on negotiating a flex schedule, building workplace friendships or renegotiating your salary at review time. Take quizzes to find out whether you’re a team player or a workaholic, and whether you’re getting the most out of your downtime.

    Strike a Balance
    www.workforceonline.com
    Looking for advice on managing your work and home lives? The Benefits section at this Smart Stop links to articles on caregivers, the cost of absenteeism and flex practices. Free registration also gets you access to newsletters on human resources and recruiting topics. Community Center discussion threads let registrants voice their opinions and share information on topics from age bias and workplace dress codes to staffing and telecommuting. Check out the business cartoons in The Buzz for a quick chuckle.


    "Law-Firm Life Doesn't Suit Some," by Ashby Jones, The Wall Street Journal, April 5, 2006 --- http://www.collegejournal.com/salarydata/law/20060504-jones.html

    At most big law firms, the partner-associate compact goes something like this: The partners give the associates big salaries, meals on the client, cars home at night, fancy offices, secretaries and a prestigious name on their resumes. The associates give their complete professional devotion and availability -- every hour of the day, every day of the year.

    That compact has gone unspoken, and largely unquestioned, until recently.

    More and more associates at law firms across the U.S. are second guessing whether they want to sign over their lives to their jobs. Some are working fewer hours. Some are losing interest in making partner. And they are leaving big law firms in droves: "The rate of associate attrition we're seeing today at big firms is the highest level we've ever seen," says Paula A. Patton, chief executive of the NALP Foundation, a nonprofit group in Overland Park, Kan., that examines law-firm hiring trends and practices.

    For partners, it's a quizzical and unwelcome development. Last fall, Cesar L. Alvarez, president of Greenberg Traurig, was interviewing a student at an Ivy League law school. The interview was just beginning when the student asked Mr. Alvarez to tell him what the "lifestyle would be like" at the firm.

    The student didn't get a "call-back" interview. "I told him that if he's going to work at a large law firm, that mind-set isn't going to get you very far," recalls Mr. Alvarez, who is based in the firm's Miami office. In his opinion, the question reflected the attitude of more and more young lawyers. "A generation ago, nobody would have asked that question, even if they'd thought of it. But there is a difference in people coming out of law school now."

    Two decades ago, few segments of the work force routinely put in longer hours than young law-firm associates, who toiled day and night to please partner-masters and climb the firms' ranks. But many today "are more interested in going to their children's soccer games" than they are in staying in the office late in the hopes of getting extra work done or making a good impression, says Joseph Altonji, a consultant with Hildebrandt International, a law-firm consultancy in Chicago.

    Ellie Schilling, a former bankruptcy associate at New York's Kaye Scholer, left the firm in March as a third-year associate after deciding that the pathway to partnership "is so long and arduous, that it just didn't seem worth it." She and her husband, also a young lawyer, plan to depart for Europe this month to pursue a business plan they began dreaming up after they realized life at a big law firm wasn't for them. "We figured there had to be another way to go, a way with less pressure, less stress, fewer hours," says Ms. Schilling. "We feel like we had to give something else a shot."

    Why the change in attitude? It's partly due to the explosive growth experienced by the largest firms over the past two decades. That growth has increased demand for more worker bees at the bottom of the law-firm pyramid, without an equivalent spike in demand for new partners, experts say. The result: It's harder than ever to make partner at the biggest firms, leaving associates less incentive to churn the grindstone early on.

    Partners are working harder than ever as well, taking a little of the luster off partnership's holy-grail mystique. Claude Millman, a litigation partner at Proskauer Rose in New York, says he gets questions from associates about his lifestyle fairly frequently. And what he tells them isn't always what they want to hear: "I try to be honest with them," he says. "The pressure to be available to your clients only increases as your career moves along."

    Generational factors are also at work. More than in any previous generation, say experts, today's associates were raised in the lap of affluence. Many have safety nets to fall back on. And many are jaded about what big law firms have to offer. Michael Boone, a co-founder of Haynes & Boone, a large general-practice firm based in Dallas, says that the current crop of associates often aren't satisfied with working hard and making money. "They want to feel like they're contributing to the greater good," he says.

    According to an NALP Foundation study unveiled last year that looked at law firms for the three years from 2002 through 2004, nearly 60% of all entry-level associates at firms with more than 500 lawyers had left their firms by the end of their fourth years. For firms of all sizes, it was 62%, a record since NALP began tracking it nearly 10 years ago.

    Some law-firm executives fear that uncommitted associates are failing to put out the top-quality work that's expected of them. "There's a perception among managing partners that the short-termers are less focused on crossing T's and dotting I's," says Dan DiPietro, head of client sales for the law firm group at Citigroup Private Bank, a unit of Citigroup Inc., in New York. "They're perceived as putting a burden on quality control."

    Associate productivity and billing are additional issues. Greenberg Traurig's Mr. Alvarez, for instance, says he is hearing about a decline in hours worked at big firms, a drop attributable not only to the youngest associates, but also to baby boomers, many of whom are nearing retirement age and winding down their practices. "It's a double whammy effect," says Mr. Alvarez. "People in my generation don't need to work 2,500 hours [a year] anymore, and at the same time, the new generation is concerned with its lifestyle. It's creating a downward trend at firms."

    Some associates appreciate the benefits of big law-firm life. Moe Keshavarzi, a second-year associate at Sheppard, Mullin, Richter & Hampton in Los Angeles, says associates are "very concerned with lifestyle," but he thinks the hours matter less than the amount of responsibility associates have. "The more responsibility you're given, the more you're going to want to work hard."

    Several years ago, Greenberg Traurig changed its recruiting strategy to focus on finding associates who were better geared for law-firm life, ones with leadership qualities and work experience prior to law school.

    Washington firm Dickstein Shapiro Morin & Oshinsky, which in 2005 finished first in the American Lawyer magazine's associate satisfaction survey, has for several years had a well-publicized part-time policy that lets its lawyers work four days a week. And it has put a renewed emphasis on training its lawyers, says Michael Nannes, the firm's managing partner.

    Proskauer's Mr. Millman agrees with that philosophy. "We have to recognize that not everyone is going to want to spend his or her life at a law firm," he says. "But that doesn't mean you can't be wonderful associate and get a lot out of your time while you're here."


    Careers in Accountancy

    Women now make up more than 60 percent of all accountants and auditors in the United States, according to the Clarion-Ledger. That is an estimated 843,000 women in the accounting and auditing work force.
    AccountingWeb, "Number of Female Accountants Increasing," June 2, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=102218

    October 4, 2006 message from Bob Jensen

    An encouraging sign in terms of breaking the glass ceiling in accounting firms has been Deloitte's "Women's Initiative" commenced 12 years ago. Results to date are linked at http://www.deloitte.com/dtt/section_node/0,1042,sid%253D2261,00.html

     

    WIN 2005 Annual Report
    Women’s Initiative teams delivered more than 235 programs in 2005 and were honored with seven national awards. Our number of women partners, principals and directors rose along with our women in leadership positions. Learn about these and more achievements in the 2005 Annual Report.

    Blog Excerpts
    One way the Women's Initiative connects with our people is through the WIN blog on the Deloitte intranet site. The blog covers personal perspectives on topics ranging from work/life balance to gender bias to the power of networking. Read some recent excerpts.

    This week Deloitte's program for maintaining training programs and re-entry initiatives for women who take out time to raise a family made the national news in a very positive way.

    It also helped that Ernst & Young and PricewaterhouseCoopers were recognized as two of the best (in the Top 10) companies in the U.S. for working mothers, according to an annual survey by Working Mother magazine.

    Progress in terms of working women and women planning career re-entry after raising a family  is probably greater in accountancy than in most industries.

    Bob Jensen

    "E&Y, PwC Top Employers for Working Mothers," SmartPros, September 27, 2006 --- http://accounting.smartpros.com/x54886.xml

    Big Four accounting firms Ernst & Young and PricewaterhouseCoopers are recognized as two of the best companies in the U.S. for working mothers, according to an annual survey by Working Mother magazine.

    Both firms make an appearance in the magazine's top 10 of "100 Best Companies" list, which celebrates employers who are "head and shoulder above the mainstream" with flextime plans, telecommuting, fitness centers, health insurance for part-timers, and more.

    Using five criteria -- flexibility, maternity and paternity leave, elder care, child care and the number of women occupying top jobs -- the top 10 are: Abbott Laboratories; Bon Secours Richmond Health System; Ernst & Young LLP; HSBC USA Inc.; IBM Corp.; JPMorgan Chase & Co.; Patagonia Inc.; PricewaterhouseCoopers LLP; Principal Financial Group, and S.C. Johnson & Son Inc.

    Continued in article


    Note that among the professions, women accountants are leading the way!  Let’s hope they clean up the messes left behind by the men.  Women physicians and business managers are on the move up.

    Women are soaring in private business ownership and the accounting profession.  There doing better in management and salaries. 

    But in the law profession it's somewhat downhill.  I guess women are just too honest.
    "Do female execs have cleaner hands?" by Stacy Teicher (Stanford University), Christian Science Monitor, March 15, 2004 --- http://www.csmonitor.com/2004/0315/p14s03-wmgn.htm  Evidence suggests a link between women and ethical behavior. But they embezzle more often. In a post-Martha Stewart world, corporate America sifts conflicting claims. By Stacy A. Teicher | Staff writer of The Christian Science Monitor.


    These problems for women exist in accountancy as well as law

    "Firms want women to stay. Men at the firms want women to stay, and women want to stay. So why aren't they?" asks Karen M. Lockwood, a partner at Howrey in Washington. "Law firms are way beyond discrimination — this is about advancement and retention. Problems with advancement and retention are grounded in biases, not discrimination."

    "Why Do So Few Women Reach the Top of Big Law Firms?" by Timothy L. O'Brien, The New York Times, March 19, 2006 --- http://www.nytimes.com/2006/03/19/business/yourmoney/19law.html

    Although the nation's law schools for years have been graduating classes that are almost evenly split between men and women, and although firms are absorbing new associates in numbers that largely reflect that balance, something unusual happens to most women after they begin to climb into the upper tiers of law firms. They disappear.

    According to the National Association for Law Placement, a trade group that provides career counseling to lawyers and law students, only about 17 percent of the partners at major law firms nationwide were women in 2005, a figure that has risen only slightly since 1995, when about 13 percent of partners were women.

    Even those who have made it to the top of their profession say that the data shows that women's legal careers involve distinct, often insurmountable hurdles and that those hurdles remain misunderstood or underexamined.

    "You have a given population of people who were significantly motivated to go through law school with a certain career goal in mind," says Ms. Plevan, who notes that Proskauer has always provided her with a welcoming professional home. "What de-motivates them to want to continue working in the law?"

    FOR years, one pat response to that question was that once law school graduation rates substantially equalized between men and women, that pipeline would fuel firm diversity and cause partnerships to equalize as well. Yet the pipeline has been gushing for about two decades and partnership disparity remains.

    Although women certainly leave firms to become more actively involved in child-rearing, recent detailed studies indicate that female lawyers often feel pushed into that choice and would prefer to maintain their careers and a family if a structure existed that allowed them to do so. Some analysts and many women who practice law say that having children isn't the primary reason most women leave law firms anyhow; most, they say, depart for other careers or for different ways to practice law.

    "Firms want women to stay. Men at the firms want women to stay, and women want to stay. So why aren't they?" asks Karen M. Lockwood, a partner at Howrey in Washington. "Law firms are way beyond discrimination — this is about advancement and retention. Problems with advancement and retention are grounded in biases, not discrimination."

    With law firms courting major corporations that demand diversity within the ranks of those advising them, and with women increasingly dominating the top tiers of law school graduates, veteran lawyers say that promoting women's legal careers is not just a matter of goodwill or high-mindedness. It's also a winning business strategy.

    . . .

    Research conducted by the Project for Attorney Retention, a program sponsored by the University of California's Hastings College of the Law, has also identified an inflexible, billable-hours regime as an obstacle to job satisfaction for both sexes, a trend that is more pronounced among the most recent crop of law school graduates. Some veteran lawyers witness this dissatisfaction firsthand and say that it tugs more powerfully at women than men because of social expectations about household roles and child-rearing.

    We are very accommodating with leaves and flexible schedules, and even with that we still lose women," says Edith R. Matthai, who founded a Los Angeles law firm, Robie & Matthai, with her husband in 1987. "I think the pressures on women from spouses, family, peers, schools and others is huge.

    "I think the real solution is a reassessment of the role that women play in the family," adds Ms. Matthai, who is president of the Los Angeles County Bar Association. "One thing we need is a sense of shared responsibilities for the household and, most importantly, shared responsibilities for taking care of the kids."

    Ms. Matthai said that conditions for women had improved a good deal over the last 30 years, but added: "We have a long way to go. It's my dream that more women will stick it out in the law until they get to the fun part, and it just breaks my heart to see them giving up the dream."

    Research conducted by the New York City Bar Association and other groups indicate that women who temporarily give up their professional dreams to pursue child-rearing or other personal goals have a difficult, if not impossible, time finding easily available on-ramps when they choose to re-enter the legal world.

    Continued in article


    Breaking Through the Glass Ceiling:  Women Making Strides in Public Accounting Careers
    Women now account for 19 percent of all public accounting firm partners, up from 12 percent a decade ago, according to a new study by the American Institute of CPAs . . . Many CPA firms are moving beyond the up-or-out philosophy of the past. They recognize that choosing an alternative career path is often a solution for some individuals to help them cope with children, aging parents or other issues. The study reported, however, that only 38 percent of the firms surveyed offered some kind of alternative career path that does not lead to partner, such as choosing to stay as a senior manager or moving into an area like recruiting that is less client service driven.
    "AICPA: Women Making Strides in Public Accounting," SmartPros, February 22, 2006 --- http://accounting.smartpros.com/x51887.xml

    Among the other findings of the study, included in the committee's report were:
    • Women are gravitating to smaller firms where the trend of their advancement is more pronounced and where they represent 47 percent of the workforce compared to 40 percent at larger firms.
    • There is a gender gap in the desire for partnership. Among senior managers only 41 percent of women as opposed to 65 percent of men expressed the desire to become a partner. 
    • Female professionals are less likely to be aware of networking opportunities, leadership development programs and practice development training. 
    • Men in the CPA profession are becoming as interested in, and as affected by, work/life policies as women. This is part of a wider, national trend that is becoming stronger.
    • CPA firms that focus on the personal needs of their professional staff are seeing productivity gains because motivated employees reciprocate by nurturing the firm's valued client base.
    • Among CPAs in business and industry the two most cited reasons for leaving public accounting were working conditions (schedules, hours, assignments) and work/life issues.

    The 80-page report is available as a PDF document from the AICPA Web Site:
    http://www.aicpa.org/members/div/career/wofi/research.htm

     


    From the Scout Report on May 5, 2006

    Helpers for Working Online from Home

    Study finds that full-time stay-at-homes would make over $130,000 Stay-at-home would be a high paying job [Windows Media Player] http://msnbc.msn.com/id/12613676/ 

    What a life: Working 9 to 5…and 6 to midnight
    http://news.bostonherald.com/localRegional/view.bg?articleid=137678

    What is Mom’s Job Worth? Click Here

    Mommy Talk: Misconceptions about Working Moms
    http://www.journaltimes.com/nucleus/index.php?itemid=5371 

    Digital History: Mothers and Fathers in America: Looking Backward, Looking Forward http://www.digitalhistory.uh.edu/historyonline/mothersfathers.cfm 

    Working Moms Refuge http://www.momsrefuge.com/

    Three of the Big Four multinational accounting firms are among the very top companies of the the world for working moms at Ranks 4/100, 5/100, 8/100
    And all four are in the 15-year Hall of Fame for working moms ---
    https://www.workingmother.com/working-mother-100-best-companies-winners-2019

    The Big Four firms are among the very best companies to work for in general at Ranks 26/100, 34/100, 36/100, and 44/100 ---
    https://fortune.com/best-companies/

     


    Job Search Advice and Helpers - http://www.cvtips.com


    Executive level international accounting and auditing job openings are listed at Go here - http://www.accountingeducation.com/jobs/index.cfm#careercentre 

    Women-Owned Businesses Growing Twice National Average --- http://www.accountingweb.com/cgi-bin/item.cgi?id=99089 

    AccountingWEB.com - Apr-30-2004 - Nearly half of all privately held firms in the U.S. -- 10.6 million -- are owned 50 percent or more by women, says a new Center for Women's Business Research study sponsored by Wells Fargo & Company (NYSE: WFC).

    According to the study, "Women-Owned Businesses in 2004," between 1997 and 2004 the number of women-owned firms with employees were estimated to grow over 28 percent, nearly three times the rate of all privately held firms, and twice the national rate of all firms. Employment grew over 24%, more than twice the rate of all firms, while revenues increased about 39%.

    "Women-owned firms are growing, and increasing their employment faster than the general market," said Joy Ott, Regional President for Wells Fargo in Montana and National Spokesperson for Wells Fargo's Women's Business Services program. "These firms are driving growth in the American workplace, while generating revenues at a similar rate to all firms. This is a powerful statement about this fast-growing segment of American small business owners."

    "Businesses that are 50 percent or more women-owned are growing at twice the rate of all firms, 17% vs. 9%. These businesses are a critical component of the national economy, not only in terms of their sheer numbers, but also in terms of their impact on employment and revenue generation," said Sharon Hadary, Executive Director, Center for Women's Business Research. "As employers of 19.1 million people, these women-owned firms spend over half a trillion dollars annually on just payroll and benefits."

    The latest and most complete snapshot of women-owned businesses in the U.S. also highlights the top 10 fastest growing states for women-business owners. Based on an average rank 1997 to 2004 growth rates in the number, employment and sales among privately held, 50 percent or more women-owned firms, these states are:

    1. Utah
    2. Arizona
    3. Nevada
    4. Idaho
    5. Kentucky
    6. New Mexico (tied)
    7. South Carolina
    8. North Carolina
    9. Arkansas
    10. Oregon

    The study results offer the most comprehensive view of the growth and expansion of women-owned businesses, tracking information like composition, spending habits and core industries of women entrepreneurs nationwide. It is the latest resource underwritten by Wells Fargo as part of its Women's Business Services program, an outreach and education program aimed at building relationships with women business owners by sponsoring key community organizations and market research.

    Measuring its progress with a new public goal to lend $20 billion to qualified woman-owned businesses within ten years, Wells Fargo has lent more than half a billion dollars since re-establishing the goal in September 2003, and is now tracking at 150 percent of its pro-rated objective. Since the program's inception in 1995, Wells Fargo has lent more than $16 billion to women business owners nationwide.

    May 4, 2004 reply from Don Mathis (Trinity University Library.

    Very interesting. Have you seen this article? 
    Don Mathis

    http://money.cnn.com/2004/04/23/pf/women_occupations/index.htm 

    CNN Money, 27 April 2004

    Woman's work? Almost anything
    Women continue to make headway in arenas traditionally associated with men.
    By Jeanne Sahadi, CNN/Money senior writer

    New York (CNN/Money) This year, for the first time in the history of Harvard University, the number of women offered admission to the incoming undergraduate freshman class outpaced the number of men.

    That's just one indication of how far women have come in their quest to achieve educational and professional parity with men.

    Women now earn more associate's, bachelor's and master's degrees than their male counterparts. In the academic year 2001-02, 57 percent of bachelor's degrees and 59 percent of master's degrees were awarded to women, according to data from the National Center for Education Statistics.

    Women also earned nearly half of the Ph.D.s (46.3 percent) as well as first professional degrees (47.3 percent), which include medical, law and dental degrees.

    In fact, women's presence is growing in a number of arenas that traditionally have been associated with men.

    Counting the number crunchers

    Accounting is a good example of a field where women have been reaching the majority both educationally and professionally.  According to the American Institute of Certified Public Accountants, 57 percent of undergraduate degrees in accounting were awarded to women in 2002.

    Today, women account for roughly 59 percent of accountants, up from about 39 percent in 1983, according to data from the federal government's Current

    Population Survey.

    Accounting giant KPMG is recruiting accordingly. In 2003, 52.3 percent of KPMG's hires from college campuses were women and overall 48 percent of its new hires for its accounting and tax professionals staff were women.

    That swell in the ranks isn't visible in the boardroom yet. But the numbers are improving.

    Only 13 percent of KPMG's U.S. partners are women, but that's double what it was in 1998. And among the partners to be named this year, 22 percent are women, according to KPMG.

    More women doctors on tap

    In the field of medicine, women are also continuing to make large strides. Even though they only accounted for 25.2 percent of all physicians in 2002, that's up from 17 percent in 1990.

    And given their growing numbers in medical school and graduate training programs, it's very possible women will make up roughly 45 percent of all physicians by 2025, according to Edward Salsberg, director of workforce studies at the Association of American Medical Colleges (AAMC).

    In the 2002-03 year, women accounted for 45 percent of all medical school graduates. And this year, for the first time, women made up the majority of applicants to medical school, according to the AAMC.

    Among the specialties, women in 2002 made up the majority of residents in pediatrics, family practice, obstetrics and gynecology, psychiatry and dermatology, according to the Journal of the American Medical Association.

    Women lawyers see small drop

    The picture in law is not quite as bright. Women account for roughly 28 percent of all lawyers, according to CPS data. But that's down from the 29 percent reported in 2002.

    Also slightly down is the number of women enrolling in law schools. For a few years the percentage hovered around 49 percent, but for the 2003-04 year, that percentage slipped to 48 percent, according the American Bar Association.

    Nevertheless, women accounted for 49 percent of summer associates in 2003, according to research from the National Association of Law Placement. And women earned 49 percent of the JDs awarded last year.

    At the staff level, NALP found women attorneys account for 43 percent of associate or staff/senior attorney positions. But in terms of making partner, women account for only 16.8 percent of partners at law firms nationwide. Even though that represents a small increase from 2002, relative to total headcounts at the firms, women remain underrepresented at the partner level.

    Businesswomen make big strides

    In business, women's representation is stronger than ever, but the number of women at the top is still not proportional to their ranks.

    They account for 50.5 percent of managerial and specialty positions, according the CPS. But among Fortune 500 companies, women only represent 15.7 percent of corporate officers, 13.6 percent of board directors, 8 percent of those with the highest titles and 5.2 percent of the highest earners, according to the research firm Catalyst.

    And among Fortune 500 CEOs? Only 1.6 percent a total of eight - are women.

    Among privately owned businesses, more women than ever are at the helm.

    Nearly half (46 percent) of all privately held U.S. businesses are majority owned by women, according the Center for Women's Business Research.

    On the earnings front

    Even though there still exists a significant wage gap

    http://money.cnn.com/2004/04/20/news/economy/women_earnings/index.htm 

    nationally between women and men in the labor force, an analysis of Current Population survey data by the Employment Policy Foundation, a public policy research group, found that the proportion of women earning six figures tripled between 1991 and 2001.

    The EPF found that in 2001, one in every 48 women working full-time earned over $100,000. That's up from one in 143 in 1991.

    The number of women earning over $60,000 almost tripled during the same period.

    The numbers of men earning more than $60,000 and more than $100,000 also rose, but at much slower rates.

    At the same time, the number of women earning less than $20,000 dropped by one-fifth.

    Institute for Women's Policy Research --- http://www.iwpr.org/ 

    "Breaking B-School Gender Barriers," by Francesca Di Meglio, Business Week, December 8, 2004 --- http://www.businessweek.com/bschools/content/dec2004/bs2004121_4063.htm?c=bwmbadec8&n=link1&t=email 

    Women have made great strides in business, but the glass ceiling is far from completely shattered. They still earn less than men, have a harder time getting promotions and venture capital, and have fewer role models. In addition, women typically continue to take on most of the burdens at home, which makes it even trickier for them to juggle a career, too.

    Business Schools Target At-Home Moms|
    Seeking to tap a pool of professionals who are of increasing interest to employers, Harvard, Dartmouth and other graduate business programs are launching executive-education courses geared toward women who have put their careers on hold to raise families and are ready to return to the professional world. The new courses aim to help women overcome the big gaps in their résumés with job-seeking strategies, and also to help bring them up-to-date on changes in their fields while they were gone. The new program at Harvard Business School even aims to add a class on business fashion and makeup. "A lot of women said, 'We don't know what the current wardrobe is.' It's actually a point of anxiety," says Myra Hart, a professor of management practice who created the program.
    Anne Marie Chaker, "Business Schools Target At-Home Moms:  New Programs Help Women Return to the Workplace After Taking Years Off," The Wall Street Journal, May 10, 2006; Page D1

    Three of the Big Four multinational accounting firms are among the very top companies of the the world for working moms at Ranks 4/100, 5/100, 8/100
    And all four are in the 15-year Hall of Fame for working moms ---
    https://www.workingmother.com/working-mother-100-best-companies-winners-2019

    The Big Four firms are among the very best companies to work for in general at Ranks 26/100, 34/100, 36/100, and 44/100 ---
    https://fortune.com/best-companies/


    "Re-entry Programs Target Professional Women," AccountingWeb, May 16, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=102156 

    In an effort to reach experienced professionals, primarily women who leave their positions for extended periods for personal reasons, and support their return to their careers, business schools and professional firms have initiated programs targeted to their needs. Business schools are offering these programs within their executive education departments, the Wall Street Journal says. Courses at Harvard’s Business School and Dartmouth’s Tuck School of Business include updates on finance and accounting, as well as changes in business technology.

    Firms like Deloitte & Touche and Lehman Brothers are focused on reaching out to former employees and providing future support for employees who decide to leave for personal reasons.

    Beginning in the fall, Tuck will offer an 11-day program called “Back in Business: Invest in your Return,” which is partially funded by Citigroup, a company that hopes to recruit from the program, the Journal says. Babson College in Massachusetts will initiate a four half-days program called “Act 2.”

    Personal Pursuits, launched by Deloitte & Touche last fall, allows senior-level professionals up to a five-year sabbatical for child rearing, elder care and travel, while providing them with resources, including training, mentoring, career coaching, networking events and ad hoc work assignments, according to Shaun Budnik, Deloitte’s national director for the retention and advancement of women, the Stamford Advocate reports.

    “We know we have people we don’t want to lose touch with,” Budnik said. “The cost of rehiring and retraining is so much higher than just keeping in touch with them.”

    Deloitte estimates that replacing an employee costs at least twice that person’s salary, while the cost of the Personal Pursuits programs is $2,500 per employee.

    Christine Popson, one of the 28 participants in the first year of the program at Deloitte, was about to have a second child but after eight years with the firm was reluctant to leave her senior manager position. “I spent all this time developing my clients, my relationships at work, myself,” she told the Advocate. “I didn’t know what the right decision was going to be: Should I work full time? If I left, how would I stay current?”

    Popson enrolled in the Personal Pursuits program and expects to take three years off. Through the program, she can stay connected with technology, a personal concern, and with her co-workers, the Advocate says.

    Lehman Brothers’ Encore Program is directed toward men and women who have left the workforce and are interested in resuming their careers in financial services. After a kick-off event in New York in November, attended by former Lehman employees, as well as employees of other financial services firms, individuals applied for and were hired for multiple full-time and flexible schedule position, Lehman Brothers’ Web site says.

    Continued in article

    "Accounting Grads See Starting Salary Increase," SmartPros, July 27, 2004 --- http://www.smartpros.com/x44487.xml 

    Average starting salary offers to college graduates are on the rise, according to the Summer 2004 Salary Survey, which was recently published by the National Association of Colleges and Employers (NACE).

    --------------------------------------------------------------------------------

    Accounting graduates continue to see their average starting salary increase; they've posted gains in each of the 2004 Salary Survey reports. Currently, they are averaging $41,110, a 1.4 percent gain over last year at this time.

    Similarly, graduates in economics/finance and marketing/marketing management saw their offers increase. The average starting salary for economics/finance graduates rose 2.1 percent to $40,906. Marketing/marketing management grads saw their average starting salary rise to $35,321, a 2 percent increase over last year.

    Overall, almost all of the business disciplines continue to show increases in their average starting salaries. For example, business administration graduates saw their average starting salaries increase to $38,188, a 2.9 percent jump from last year at this time.

    "There have been definite signs of improvement to average starting salary offers for the Class of 2004," said Marilyn Mackes, NACE executive director. "For instance, at the bachelor's degree level, two-thirds of the disciplines that reported a percentage change in salary over last year reported increases."

    Management information systems (MIS) graduates are now averaging $42,098, up 2.9 percent over last year at this time.

    The survey is a quarterly report of starting salary offers to new college graduates in 70 disciplines at the bachelor's degree level. The survey compiles data from college and university career services offices nationwide.

    "New BLS Guide Outlines Accounting Trends and Job Outlook," SmartPros, April 21, 2004 --- http://www.smartpros.com/x43328.xml 

    An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive the growth of accountants and auditors, according to the Bureau of Labor Statistics.

    The 2004-2005 Occupational Outlook Handbook for accountants and auditors outlines working conditions, employment, training, earnings and more.

    The new edition emphasizes the impact that new legislation will have on the industry through 2012. BLS predicts an increased need for accountants and auditors "to address changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial matters."

    In addition, BLS says "the growth of international business also has led to more demand for accounting expertise and services related to international trade and accounting rules, as well as to international mergers and acquisitions."

    Specific trends predicted in the handbook include the following:

    The handbook also reveals that accountants and auditors held about 1.1 million jobs in 2002 and earned an average annual salary of $47,000. Approximately 1 out of 10 accountants or auditors were self-employed, and one out of five wage and salary accountants worked for accounting, tax preparation, bookkeeping and payroll services firms.

    For the complete guide, available online, go to http://www.bls.gov/oco/ocos001.htm 

     

    February 26, 2004 message from XXXXX

    Bob, do you know of any websites that can help undecided accounting majors find a career path. We had Blane Ruschak from KPMG speak in my classes on Tuesday and he mentioned many opportunities other than Public Accounting, but some of my students are not interested in the least with public......any threads? I looked on your website, but may have missed something. Thanks for all you do. 

    XXXXX 
    YYYYYUniversity

    "The Discouraging Humanities Job Market, in One Vivid Chart," by Brock Read, Chronicle of Higher Education, March 4, 2015 ---
    https://chroniclevitae.com/news/931-the-discouraging-humanities-job-market-in-one-vivid-chart?cid=VTEVPMSED1


    From the Chronicle of Higher Education
    Search for Job Openings in Higher Education ---
    https://chroniclevitae.com/job_search/new

    Because of the short supply (slightly over 200 per year)  of new accounting Ph.D.s hoping to get tenure-track jobs, new Ph.D.s in accountancy are often the highest-paid new assistant professors on campus. However, one of the factors holding down the supply of new accounting Ph.D.s is the requirement by accounting doctoral programs that applicants have professional accounting experience. Whereas STEM majors in science can enter doctoral programs immediately after earning BS degrees, this is not usually the case for new accounting doctoral students ---
    http://www.jrhasselback.com/AtgDoctInfo.html

    Higher Education Recruitment Consortium --- http://www.hercjobs.org/

    From the Chronicle of Higher Education
    Search for the Latest Job Openings in any Discipline of Interest ---
    https://chroniclevitae.com/job_search/new?cid=VTECHNJOBSL1

    Jensen Comment
    When I search for "Accounting" and "Faculty & Research" today there are 256 jobs posted in the past 30 days. However, not all of these jobs seem property classified as both "Accounting" and "Faculty & Research." Also I know of some job openings for accounting professors that are not listed for major universities.

    For persons seeking jobs as accounting faculty in the USA perhaps a better place to look might be the American Accounting Association Career Center ---
    http://aaahq.org/Career-Center
    Job seekers may also post their resumes at this center.

    Since there are so many faculty vacancies in accountancy, job seekers with Ph.D. degrees from AACSB-accredited universities are advised to contact colleges and universities where they would most like to be employed.


    How to Mislead With Statistics

    Here's how much surgeons, lawyers, and 18 other top-earning professionals make per hour ---
    http://www.businessinsider.com/hourly-salaries-surgeons-lawyers-doctors-2016-11/#-1

    Jensen Comment
    This articles is one of the best/worst articles I've seen lately on how to lie with statistics.

    Here are a few things to point out to your students if you want to highlight how not to report survey results.

    First and foremost when you define the total populations (apart from sample sizes) and don't mislead about the sizes of the populations.
    For example, the above article says there are 24,000 employed psychologists and 15,650 physicists.  Aren't professors and other teachers in these fields "employed?" There are more employed specialists in these disciplines employed only in academia than the numbers shown above. Most likely the average hourly wage would be greatly pulled down if academics were included in the population and the sample.

    Secondly the article ignores standard deviations and kurtosis of the distributions from which averages are reported. For example, outliers in millions of dollars of compensation to attorneys and other professionals tend to skew averages upward. Even medians can be misleading for highly skewed distributions with outliers on both sides of the medians. Think of the lawyers who will work for food.

    How random are the samples from the populations identified in the study. My guess is not very random.

    Watch definitions.
    What is a "chief executive?" The manager-owner of our local hardware store is a "chief executive" as is the CEO of a Fortune 500 Corporation.
    What's the definition of a "financial manager versus a "sales manager?" Why are there twice as many financial managers as sales managers?
    What's the definition of "public relations and fundraising managers" and why are there only 60,380 of them when there are 531,161 financial managers? Many financial managers and chief executive officers and are also the public relations and fund raising managers. My guess is that the sampling population totally ignored public relations and fund raising managers for colleges, universities, churches, and charities where compensation is often quite low or contingent upon funds raised.

    What's the difference between a pharmacist and the chief executive. Many pharmacists also own and manage the entire drug store?

    What's "compensation?" Most CEO's of Fortune 500 companies get paid on performance-based contracts depending upon such things as corporate earnings reports. In other words what a CEO makes one year may be doubled or tripled the next year and then taken way down the following year.

    What's "compensation?" Most CEOs are paid in many ways including stock options, stock awards programs, living benefits (use of the corporate jets and ski chalets), wine, women, and song.

    There's an enormous difference between what a physician makes before or after malpractice insurance and other expense expenses. Those that work for much lower annual salaries often do not have to pay their own malpractice insurance, nurse expenses, receptionist expenses, accounting expenses, office rental expenses, etc.

    I could go on and on, but I think students will catch my drift.

    This article is so misleading it's worse than garbage.

     


    "Accounting Doctoral Programs:  A Multidimensional Description," by Amelia A. Baldwin, Carol E. Brown and BradS. Trinkle.
    http://www.academia.edu/532495/Accounting_Doctoral_Programs_A_Multidimensional_Description
    Advances in Accounting Education: Teaching and Curriculum Innovations, Volume 11, 101–128Copyright r 2010 by Emerald Group Publishing Limited
    ISSN: 1085-4622/doi:10.1108/S1085-4622(2010)000001100

    Accounting doctoral programs have been ranked in the past based on publishing productivity and graduate placement. This chapter provides descriptions of accounting doctoral programs on a wider range of characteristics. These results may be particularly useful to doctoral applicants as well as to doctoral program directors, accreditation bodies, and search committees looking to differentiate or benchmark programs. They also provide insight into the current shortage of accounting doctoral graduates and future areas of research. Doctoral programs can be differentiated on more variables than just research productivity and initial placement. Doctoral programs vary widely with respect to the following characteristics: the rate at which doctorate sare conferred on women and minorities, the placement of graduates according to Carnegie classification, AACSB accreditation, the highest degree awarded by employing institution (bachelors, masters, doctorate),

    Continued in article

     

    Table 1. Accounting Doctoral Graduates by Program, 1987–2006(Size; 3,213 Graduates).
    http://www.academia.edu/532495/Accounting_Doctoral_Programs_A_Multidimensional_Description
    Note that I corrected the ranking for North Texas State from the original table
    The average of 161 per year has been declining. In 2013 there were only 136 new accounting doctorates in the USA.
    Rank Program    # Rank Program    # Rank Program     # Rank  Program     #
    01 Texas A&M 87 25 Arkansas 46 49 Columbia 31 73 MASS 17
    02 Texas 78 26 Florida State 45 50 Drexel 31 74 Syracuse 16
    03 Illinois 72 27 Indiana 45 51 Northwester 31 74 Wash St. Louis 15
    04 Mississippi 70 28 Tennessee 44 52 Cornell 30 75 Central Florida 14
    05 Va. Tech 70 29 Texas Tech 44 53 Purdue 29 76 Cincinnati 14
    06 Kentucky 69 30 Georgia St. 43 54 Minnesota 28 77 Cleveland St 14
    07 Wisconsin 69 31 Colorado 42 55 Oklahoma 28 78 MIT 13
    08 North Texas 65 32 NYU 42 56 Penn 28 79 Fla Atlantic 12
    09 Arizona 64 33 Oklahoma St 42 57 Rochester 28 80 UCLA 12
    10 Georgia 64 34 Rutgers 42 58 So. Illinois 28 81 Union NY 10
    11 Penn State 63 35 Alabama 41 59 Oregon 27 82 Texas Dallas 09
    12 Nebraska 61 36 Va. Common 40 60 Texas Arling. 27 83 Tulane 08
    13 Arizona St. 60 37 Memphis 38 61 Utah 27 84 Duke 6
    14 Houston 60 38 Stanford 37 62 Baruch 25 85 Jackson St. 6
    15 Michigan St. 60 39 Chicago 36 63 Connecticut 24 86 Fla. Internat. 4
    16 Washington U 55 40 Missouri 36 64 Carnegie M. 23 87 SUNY Bing. 4
    17 So. Carolina 54 41 No. Carolina 36 65 Geo. Wash 23 88 Yale 4
    18 Michigan 52 42 So. Calif. 36 66 Wash. State 23 89 Ga. Tech 3
    19 La. Tech 51 43 UC Berkeley 35 67 Kansas 22 90 Rice 3
    20 Ohio State U 50 44 Boston Univ 35 68 SUNY Buffalo 21 91 Tx. San Anton. 3
    21 Kent State 49 45 Maryland 35 69 St. Louis 21 93 Miami 2
    22 LSU 49 46 Pittsburg 35 70 CWRU 19 94 Cal. Irvine 1
    23 Florida 47 47 Iowa 34 71 Harvard 19 95 Hawaii 1
    24 Mississippi St 47 48 Temple 34 72 South Fla. 19 96 Vanderbilt 1

    Jensen
    For years prior to 1987 and years subsequent to 2006 you can see the data by years in a sequence of the Accounting Faculty Directories by James Hasselback. For example, for years 1995-current go to
    http://www.jrhasselback.com/AtgDoct/XDocChrt.pdf
    For years prior to 1995 you have to go to earlier editions of Jim's directories.

    There are some minor discrepancies. For example, the above table shows 3 graduates for Rice after 1987 whereas Jim Hasselback shows no graduates at Rice after 1995. I did not check for all the discrepancies between the two data sources. Rice no longer has a doctoral program in accountancy. There are several newer (small) programs such as the one at the University of Texas at San Antonio.

    The Baldwin, Brown, and Trinkle paper goes on to discuss trends over time in the leading programs and much much more. I did not quote data from their paper that was not previously provided by Jim Hasselback at
    http://www.jrhasselback.com/AtgDoct/XDocChrt.pdf

    A few of the many important revelations in the BBT study that might be noted for 1987-2006:

    There is much more detailed information available in this study at
    http://www.academia.edu/532495/Accounting_Doctoral_Programs_A_Multidimensional_Description

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    "Gender Ratios at Top PhD Programs in Economics," by Galina Hale and Tali Regev, April 8, 2013 ---
    http://econ.tau.ac.il/papers/foerder/2013-10.pdf

    The growing concern for the under-representation of women in science and engineering has prompted an interest in the mechanisms driving the share of women in these fields, and in the effect that the gender diversity of the faculty has on the share of female students. Interestingly, some universities are more successful than others in recruiting and retaining women, and in particular female graduate students. Why is this the case? This paper explores the uneven distribution of female faculty and graduate students across ten of the top U.S. PhD programs in economics. We find that the share of female faculty is correlated with the share of female graduate students and show that this correlation is causal. We instrument for the share of female faculty by using the number of male faculty leaving the department as well as the simulated number of leavings. We find that a higher share of female faculty has a positive effect on the share of female graduate students graduating 6 years later.

    Women are under represented in science and engineering. In 2010, Men outnumbered women in nearly every science and engineering field in college, and in some fields, women earned only 20 percent of bachelor’s degrees, with representation declining further at the graduate level (Hill et al., 2010). In economics, women constituted 33 percent of the graduating PhD students, and only 20 percent of faculty at PhD granting institutions (Fraumeni, 2011). Women in economics have been shown to have different career paths than men and to be promoted less (Kahn, 1993; Dynan and Rouse, 1997; McDowell et al., 1999; Ginther and Kahn, 2004). Focusing on the progression of women through the academic ladder, most research has failed to fully account for the effect that successful women in the field have had on the entrance and success of other women. More specifically, the gross effect that women faculty have on the share of female students have not been fully explored. In this study we address this gap in the literature and focus on the causal relationship between the share of female faculty in top economics departments and the share of graduating female PhD students.

    Continued in article

    Jensen Comment
    Women seem to be making greater strides in Ph.D. achievements in economics that in many other science fields. It would seem that they could make greater strides in fields like computer science where males dominate to a much higher degree.

    In economics at the undergraduate and masters levels in North America there are significantly more male graduates than female graduates. Having more female teachers tends to increase the number of undergraduate majors according to the above study.

    In accounting at the undergraduate and masters levels in North America there are significantly more women graduates than men, and the large CPA firms hire more women than men. There is a possible glass ceiling, however, in terms of newly-hired CPA-firm women who eventually become partners. That is a very complicated story for another time other than to note that the overwhelming majority of newly-hired males and females in large CPA firms willingly leave those firms after gaining experience and very extensive training.

    Many of those departures go to clients of CPA firms where the work tends to have less travel and less night/weekend duties as well as less stress. In my opinion most accounting graduates who go to work for CPA firms did not ever intend to stay with those CPA firms after gaining experience and training. This accounts for much of the turnover, especially in large CPA firms. Turnover has an advantage in that it creates more entry-level jobs for new graduates seeking experience and extensive training.

    Bob Jensen's threads on the history of women in the professions ---
    http://faculty.trinity.edu/rjensen/bookbob2.htm#Women

    Bob Jensen's threads on careers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers


    In my accounting classes I always brought up the topic of the great career opportunities of getting an accounting doctoral degree and becoming an accounting professor. There is a projected dire shortage of accounting faculty that is projected to get worse in the future, thereby leading to accounting professors on average being the highest paid professors on campus with compensation packages to new graduates at nearly $200,000 per year, two-course teaching loads, and summers free for research.

    The American Accounting Association (AAA) has a new research report on the future supply and demand for accounting faculty. There's a whole lot of depressing colored graphics and white-knuckle handwringing about anticipated shortages of new doctoral graduates and faculty aging, but there's no solution offered --- http://aaahq.org/temp/phd/AccountingFacultyUSCollegesUniv.pdf 

    When I speak to my students about careers, I generally commence by truthfully pointing out the good and the bad of such a career move --- http://faculty.trinity.edu/rjensen/Theory01.htm#DoctoralPrograms

    Accounting and finance professors probably have it a bit better than most other college professors because there is high demand for these specialties coupled with short supply.  Hasselback's Accounting Faculty Directory reveals that the number of new doctoral faculty in accounting actually declined from 200 in 1993 to 74 in 2000.  This decline not only created a shortage of supply in academe, but it also reveals that more accounting professionals do not seek doctoral degrees because they are happy with there life as accountants in the working world (as opposed to the ivory tower where I've never been certain that what we do should really be defined as "work.")

    What I next tell my students is that if they don't want to be like me and prefer to work for a living, accountancy offers some great, great opportunities that make it one of the most popular majors on campus.  First I emphasize that most of the top graduates start out in public accounting with CPA firms because CPA firms offer the most entry level opportunities for getting a job, getting training, meeting a wide variety of interesting clients, working with some great professionals, and growing up.  Students with more than one language skills have great opportunities for foreign assignments. 

    But I always stress how most people who take their first jobs in CPA boot camps generally branch out later on into industry (often with one of their clients), the government (often with the IRS or FBI), not-for-profit organizations (all levels of government and education).  Many of those opportunities either require or recommend that applicants have CPA credentials and prior experience.  There are increasingly popular opportunities in such areas as forensic accounting and fraud examination --- http://www.cfenet.com/home.asp .  Accounting students interested in the FBI might want to read the John Douglas Guide to Careers in the FBI http://www.911hotjobs.com/bookstore/pn54.htm or The Most Adventurous Careers of the 21st Century! at http://www.thinkquest.org/library/site_sum.html?tname=3340&url=3340/INTSEC.HTM 

    Then I stress that in the business world having an accounting major is a fast track to advancement since it is difficult to run a business unless you know how business keeps score.  Even those with finance or marketing backgrounds find that they have to learn a whole lot more about complex accounting rules and strategies in order to advance up the corporate ladder.

    Then I stress how there are many consulting opportunities accountancy.  Many accountants have full time careers in financial advising, expert witness testifying, information systems consulting, etc.  I generally stress that the most important thing to combine with accounting as a major is information systems, particularly knowledge of database systems and computer communications.

    One accountant (video) who went back to school in a doctoral program and became a professor:
    Accounting professor stars in AICPA Foundation video --- http://www.accountingweb.com/cgi-bin/item.cgi?id=104022

    "IT Consulting Fades From CPAs’ Radar Screens," AccountingWeb, April
    http://www.accountingweb.com/cgi-bin/item.cgi?id=102014

    Firms are being lured away from IT consulting to focus more attention on attest related services, where market demand has been stoked by the increased financial reporting requirements in the Sarbanes-Oxley accounting reform law. “Firms are doing a good job of building practices around that because that’s compliance work and something that clients have to do. Firms are embracing this intellectually in way they could not for IT,” he says.

    Meanwhile, the IT world has moved away from CPAs by converting many of its products and services to Web-based platforms, which allow end users to download them on line, rather than having applications physically implemented on their computer systems by CPAs and other technology advisors, Eagle says. The ITA has responded by adding training sessions in which practitioners discuss how they have changed their IT practices to accommodate Web-based products and services.

    In addition to the Web-based sales, some IT products for the smallest companies have been moved more toward being packaged for sales on retail store shelves, Eagle adds. “Vendors want to create software that works out of the cellophane wrapper. Between that and the ASP (Web-based application service providers) movement, the role of the implementer is fading,” he says, summarizing what many IT implementers have long known.

    He notes that, if anything, the bulk of smaller firms’ IT work in the future will be advisory roles helping clients put together requests for proposals from software vendors. The larger firms will increasingly use their specialized vertical industry practices to deliver IT products and services tailored for those vertical industries, he predicts.

    Continued in article

    Jensen Comment
    At the same time we see a surge in CPA consulting in "risk advisory services" that covers a broad spectrum of risk concepts. For example, KPMG's overview of such services is at http://www.kpmg.com/services/content.asp?l1id=90&l2id=520

     

    Good accounting career information magazine --- http://www.newaccountantusa.com/default.html 

    The AICPA has a great Website for careers --- http://www.aicpa.org/temp/jobres.htm 

    CPA Career Center
    AICPA members can search job postings, locate great candidates for open positions, assess personal strengths and development needs and access other career-related resources.
    AICPA Classifieds Online
    Browse classifieds online including employment opportunities, products, services, and web site classifieds of interest to the CPA/accounting community.
    Landing a Job
    Students can find out in-depth information about career paths, hiring trends, internship opportunities, and much more.

    The Institute of Management Accountants has various career links --- http://www.imanet.org/ima/index.asp 

    The Institute of Internal Auditors provides career information --- http://www.theiia.org/ 

    The IRS has a great career site at http://www.jobs.irs.gov/ 
    Incidentally, one of the perks of working with the IRS is continuing education at 24 or more top colleges and universities that provide IRS employees with free courses leading to degrees and certifications --- see http://snipurl.com/IRSuniv 

     

    Then I recommend some of the top accountancy career inspirational sites listed below:

     

    Note from Bob Jensen:   There are huge geographical variations in compensation.  I would guess that most five-year accounting graduates today are starting at over $40,000.  Many are starting for more than $50,000.  Clerical accountants earn far less.  Many "accountants" at the clerical level were not accounting majors in college, and some were not even college graduates.  Opportunities for clerical accountants will probably dry up over the next two decades, whereas opportunities for accountants and accounting educators remain bright in spite of the fact that the numbers of accounting graduates are declining.  Accounting opportunities will be highest for students who combine accounting, finance, MIS, and IT skills, and that combination of skills is a tall order for five or six  years of college.  As educators, we can help by fostering more innovative curriculum revisions that are not dictated as heavily by CPA examination coverage.  Some innovative programs (e.g., the accounting education programs at Notre Dame and the University of Illinois) are making great strides at revising graduation requirements.

    My warning to students is that beginning compensation should not be the main criterion for virtually any professional career.  Computer programmers have very high starting salaries, but the path toward the executive dining room is probably much longer than the path from the accounting staff room.  The path is even shorter from the cubby hole given to the external auditing team.  I call that path turnpike to executive dining room in a large corporation.  Of course the highest paid graduates under 30 years of age will continue to be those "fools" who were willing to work for almost nothing in a startup technology venture. But then all "fools" do not necessarily win the jackpot.

    Students interested in a career in accounting can find all the answers they need with just one click of the mouse. The Illinois CPA Society announces the launch of an exciting new Web site that is devoted to providing students of all ages with valuable resources and the latest accounting career information. http://www.accountingweb.com/item/60145 

    The flashy link is at http://www.futurecpa.org/futurecpa/index.htm 

    Career site for the Maryland Society of CPAs --- http://www.tomorrowscpa.org/ 

    The Wall Street Journal has launched CollegeJournal, a free site for undergraduate, graduate, and MBA students providing job- search and career-guidance information. Content is supplied by The Wall Street Journal's editorial resources as well as an editorial team dedicated to the CollegeJournal. 
    http://www.accountingweb.com/item/60143
     

    There are many other places to look for career opportunities in accounting.  Examples are listed below:

    http://www.aicpa.org/nolimits/index.htm
    http://www.rutgers.edu/Accounting/raw/ima/students.htm
    http://www.accounting.com/
     
    http://www.accountingjobs.com/ 
    http://www.careerbank.com/
     
    http://www.tax-jobs.com/
     
    http://www.financialjobs.com/
      
    http://www.jobexchange.com/
      

    And there are some other helpful sites.

    http://www.uwm.edu/~ceil/career/jobs/index.html (from our good friend Ceil Pillsbury)
    http://www.accountingstudents.com 
    http://www.accountingweb.com 
    http://www.careers-in-business.com/
      
    http://www.rutgers.edu/Accounting/raw/aaa/placemnt.htm (for higher education)
    http://www.accountingeducation.com/ 
    http://members.tripod.com/kibrahim/contents.html
    (International) http://dir.yahoo.com/Social_Science/Economics/Accounting_and_Auditing/Employment/Jobs/   

    Some Accounting Career Information from SUNY- Fredonia --- http://beech.ait.fredonia.edu/careers.htm 
    This is a great website with lots of useful links about accounting careers, continuing education, and certification specialties.  
    In particular, note the Accounting Career Information Link at http://beech.ait.fredonia.edu/careersac.htm 

    AICPA Book Tells Firms, Women How to Shatter the Glass Ceiling --- http://www.smartpros.com/x37850.xml 

    The AICPA reports that during the last 20 years the proportion of women entering the accounting profession has grown dramatically from 45 percent in 1982 to 56 percent in 2002. However, women represent only 38 percent of the new hires and a mere 14 percent hold the position of partner, shareholder, or owner of their firm.

    Promoting Your Talent by Professor Nancy Baldiga, associate professor of accounting at the College of the Holy Cross in Worcester, Massachusetts, sheds light on this imbalance. The book features interviews with more than 50 successful women, human resource directors, and managing partners about the obstacles faced by women and the practices that both women and firms can adopt to help facilitate advancement in the accounting profession.

    Prepare Your Students for the Unexpected

    "The Strangest Job Interview Questions," SmartPros, December 11, 2003 --- http://www.smartpros.com/x41717.xml 

    MENLO PARK, Calif., Dec. 11, 2003 (SmartPros) — Think you're ready for any question that comes your way in a job interview? Staffing service OfficeTeam recently asked executives for the strangest questions they had been asked by hiring managers during an interview. The responses ranged from unusual to outrageous.



    "As firms involve more people in the hiring process to get a clearer snapshot of a candidate's abilities and personality, some unexpected questions are bound to emerge and surprise even the most well-prepared candidate," said Liz Hughes, vice president of OfficeTeam.
     
    Interviewers may use icebreaker questions like the following to begin the meeting:
    "What's your favorite color?"
    "If you could be any animal, what would you be?"
    "If you were having a dinner party and could invite three famous people, who would they be?"
    "What's the last book you read?"
    Hughes noted that the interviewer is interested in the "why" behind the applicant's answer because it often sheds light on his or her personality. "The reason given for citing a particular book or dinner guest, for instance, could prompt conversation that a resume or skills-based interview question
    alone would not."
     
    Other questions may reveal a job candidate's aspirations:
    "What did you want to be when you were 10 years old?"
    "What classes did you like in high school?"
    "Do you see yourself in my position in the future?"
    With these questions, hiring managers aim to understand the applicant's goals and ambitions over time. Hughes offered the following example: "If someone wanted to be a lawyer in high school, but opted for a career in sales, what led to the change?" The hiring manager also wants to find out how quickly the candidate expects to advance in the organization, and the importance he or she assigns to rank and title.
     
    The last set of unusual questions executives were asked seems to defy classification:
    "Why are manhole covers round?"
    "What would I find in your refrigerator?"
    "Do you have air conditioning at home?"
    "How will taking this job change your life?"
    "What made you move to a backward city like this one?"
    Is the hiring manager intentionally trying to throw a candidate off track? Possibly. "Asking a truly unexpected question will likely elicit a candid, unrehearsed response," Hughes said. "As a bonus, the hiring manager will get a better sense of the person's sense of humor and ability to think quickly."
     
    How should candidates approach questions that seem to come from left field? Hughes offers the following tips: 
    • Do some homework ahead of time. Ask people in your network about the strangest questions they were asked in an interview, how they responded to them, and what -- if anything -- they would have done differently. The point is not to prepare for every question but to practice thinking on your feet.
    • Ask for clarification. If you don't understand a question, rephrase it by saying, "Do you mean ... ?" or ask for more detail. This will put you on the same page as the hiring manager and enable you to provide a targeted response.
    • Don't let nerves get the best of you. Feeling stress during an interview is to be expected. Excessive stress, however, could cause you to ramble, or give only "yes" or "no" answers. If you need a moment to think about a question, ask for it.
    • Don't assume the worst. You may meet with many interviewers at a company, some less prepared and experienced than others. Be patient with each successive meeting, even when the same questions are being asked multiple times. Your calm demeanor will count in your favor in the final selection.

    Public Accounting Report has published its annual ranking of America's Top 100 Accounting Firms, and it's no surprise that Andersen, the previous number five ranked firm, is no longer on the list. http://www.accountingweb.com/item/95611

    1. PricewaterhouseCoopers: $8,056.5 million
    2. Deloitte & Touche: $6,130 million
    3. Ernst & Young: $4,485 million
    4. KPMG: $3,171 million
    5. Grant Thornton: $432.5 million
    6. BDO Seidman: $353 million
    7. BKD: $210.9 million
    8. Crowe, Chizek & Co.: $204.7 million
    9. McGladrey & Pullen: $203 million
    10. Moss Adams: $163 million

    "Second Six: Ready to Step Up?" CFO.com --- http://www.cfo.com/specialreport/0,5487,564||A,00.html 

    As contributing editor Ed Zwirn reveals in his article ''The Second Six: Ready to Step Up?'', the demise of Andersen and the advent of Sarbanes-Oxley have not been an unqualified blessing for those firms that remain. And in ''Same Straw, Smaller Back,'' Zwirn notes how new regulatory burdens that fall heavily on smaller companies (the usual Group B clients) may persuade many of them to go private.


    From Smart Stops on the Web, Journal of Accountancy, September 2006 --- http://www.aicpa.org/pubs/jofa/sep2006/news_web.htm


    CAREER BUILDING SITES
    Value for Your Business
    http://bvfls.aicpa.org
    The AICPA’s Business Valuation and Forensic Litigation Services Center offers members case studies on fraud schemes, a practice management toolkit and a definition of the month. Read the full text of an exposure draft on valuation service standards and get tips on how to conduct an inquiry interview or an interview with a CEO or CFO. Help your clients develop internal controls with a risk management checklist and a list of common auditing deficiencies.

    Answers for Accountants
    www.forensicaccounting.com
    CPAs interested in switching to investigative and forensic accounting can get an overview here from Alan Zysman, CA and certified fraud examiner, of Toronto’s Zysman Forensic Accounting Inc. His to-the-point e-site offers a detailed explanation of what it takes to become a forensic accountant and how to approach assignments. Also get an overview of investigative accounting and litigation support.

    A Valuable Site
    www.bvresources.com
    Looking for information and news on business valuation? Visit this Web stop for BVWire, a free weekly update with the latest valuation court cases, practice tips, a definition of the week and questions and answers on valuations of start-ups. There’s also free downloads of IRS BV guidelines, an international glossary of terms and free issues of the newsletter Business Valuation Update, as well as links to other BV associations such as the AICPA and the Appraisal Foundation.

    What’s It Worth?
    www.cbiz.com
    The e-calculators here can help you determine cash flow, financial ratios and business valuation as well as estate tax, retirement planning, investment returns and 401(k) savings. The Tax section has a 1040 calculator and the Tax Planning Update newsletter offers advice on how to reduce estate taxes and draft buy-sell agreements. Users also can get marketing tips and links to franchise and small business opportunities.

    M&A How-Tos
    www.mergerplace.com
    Free membership to this e-stop gets CPAs and their entrepreneurial clients a valuation guide with tips on business appraisals and pitfalls associated with them. Users can find a due diligence checklist, simple- and long-form nondisclosure agreements and a buyer profile. The Resource Center offers the M&A Advisor with archived articles on e-mail strategies during an M&A, “Lessons for Dealmakers” and tips on small business valuations. Business Planning Tools includes sample business and marketing plans and e-calculators to determine cash flow and start-up costs.

    Tips for Tenderfoots
    www.tannedfeet.com
    Whether you’re starting an at-home business or just need a refresher course on the rules of the game, this entrepreneurs’ e-page offers checklists for starting a business, marketing plans, tips on how to write a contract and small business tax deductions you may be able to claim. Visitors also can find articles, links and discussions on immigration law and intellectual property, and advice on buying, building or leasing office space. Get a laugh or two in the Business Humor section as well.

     


    AACSB Career Guides

    AACSB International, the premier business school accreditation agency worldwide, has more than 925 higher education members. These colleges and universities employ a significant number of business school faculty.

    What's happening in the b-school employment marketplace? Visit M.E. Jobs, AACSB's powerful online Web site for business school faculty and higher education administration employment classifieds at http://www.aacsb.edu/jobs2.

    Why M.E. Jobs?  The only site dedicated solely to management education, M.E. Jobs offers user-friendly features:

                - Jobs displayed by locations and category

                - Links to designated contact persons

                - Links to school Web pages

                - Printable position descriptions

                - Access to a world-wide market

                - Email ads to a friend

                - No cost to job seekers, easy to use

     For additional information, email kim@aacsb.edu

    Question:  
    What is NACElink and why is it important to college students and faculty as wells as employers?

    Answer:

    NACElink is the result of an alliance between two nonprofit associations—the National Association of Colleges and Employers (NACE) and DirectEmployers Association, Inc.—and an initial collaborating group of career centers. NACElink was launched in August 2002 with 27 schools from across the country involved in the initial development and testing.

    During the 2002-2003 academic year, additional schools from the diverse NACE membership of 1,800 colleges and universities will have the opportunity to use the NACElink system and discover its benefits.

    The NACElink System

    NACElink currently offers a job posting and resume data base component. An interview scheduling component is in beta testing and will be released in 2003.

    The NACElink homepage is at http://www.nacelink.com/ 

    I had the honor, along with my colleague John Rice, of having an article in the first edition of New Accountant many years ago.  
    "The Times are Changing," New Accountant, Vol. 1, September 1985 (Lead Article in a New Journal, pp. 7-14)

     

    This magazine's target market is accounting majors about to make career decisions.  I just received the following message announcing a new Website for New Accountant.

    New Accountant Magazine Website

    Over 100 articles and growing!

    Click on logo or link http://www.newaccountantusa.com 

    If your school is not listed, please let us know and we will add the link.

    If you prefer to be removed from our email list, please email us let us know. We apologize for any inconvenience.

    New Accountant Magazine 
    3550 W. Peterson Avenue 
    Chicago, Illinois 60659 
    Toll free: (888) 641-3169 Fax: (773) 866-9881 Email: RencPublishing@earthlink.net   

    September 6, 2002 message from AACSB International - Communications [comm@AACSB.edu

    And now we are your source for Worldwide Jobs in Management Education.

    M.E. Jobs - http://www.aacsb.edu/jobs/default.asp  - is an ONLINE career marketplace for professionals in management education jobs that provides:

    A user-friendly and immediate format Accessibility to job postings from our over 900 member schools Most ads were posted within the last 30 days - no job over 90

    February 2003
    The Massachusetts Society of CPAs has launched its newest student recruitment initiative, CPATrack.com. This comprehensive Web site targeting both high school and college students is designed as a place for students to explore accounting education and career opportunities. http://www.accountingweb.com/item/97127 

    The CPA Track Website is at http://www.cpatrack.com/ 
    Note that students may post resumes at this site and join a student forum.

    This includes the academic job market around the world. 
    The Internet's largest job listing site sends an e-mail to its users warning about the possibility of identity theft from fake help-wanted ads posted online --- http://www.wired.com/news/business/0,1367,57852,00.html

    The job sites generally advise users not to give out their social security, credit card or bank account numbers, not to disclose personal information that isn't related to work such as their marital status, and to be particularly careful of prospective employers from outside the country.

    March 31, 2004 message from Dr James Fowler III [drjamesfowler@pcsservers.net

    As part of a search I used the academic job site Academic Careers Online and really liked it.
    You can search or announce faculty, post doc, researcher, library, endowed chair, and administrative jobs at colleges, universities and research institutes anywhere.
     
    Applicant can use all their services without being charged and employers can post a job listing for up to three full months for US$ 175 (CAD 234). This even includes a unique email alert system that notifies applicants when a job matching their search criteria is posted.
     
    To see the site go to www.AcademicCareers.com 
    Regards,
    Jim
    Dr. James Fowler III 
    Jim@Drjamesfowler.com 
     

    "COOL" CAREER SITES:
    www.cpazone.org—Created by the Pennsylvania state society, the site contains interactive games, career information and prizes.

    www.tomorrowscpa.org—The Maryland society’s site contains information for students about the accounting profession.

    www.incpas.org/Students/index.htm—Using a nautical theme, the Indiana society’s Web page helps students “guide their way” to becoming a CPA.

    www.calcpa.org/community/careers/index.html—The California society’s student Web page contains excellent profiles of young CPAs. The site also offers to tailor articles based on your needs.

    www.futurecpa.org—The Illinois society’s Web site is full of fun and important information.

    CPA2Be.org—Web site of the Kansas state society, a comprehensive site for students.

    Diversity Poll Identifies Top-Ranked Accounting Firms
    A survey by The Black Collegian magazine of more than 2,300 African, Asian, Hispanic, and Native American undergraduate and MBA students found that corporate diversity is a critical factor for minority students in deciding upon employers, and several major accounting firms are among the companies that excel in this area. http://www.accountingweb.com/item/73983 

    From Information Week Daily on February 15, 2002

    **Major Companies Ready New Online Job Site

    A new employer-backed online job board could be to Monster.com and HotJobs.com what airline-backed travel site Orbitz is to Travelocity and Expedia. DirectEmployers.com, to be unveiled Tuesday, is backed by more than 15 international companies, including IBM, Intel, Lockheed Martin, Nestle, Raytheon, Sprint, and Unisys. Participants span industries from advertising to aerospace.

    The site, run by the E-Recruiting Association, a nonprofit established by senior human-resources execs from the participating companies, will offer a gateway to companies' own recruiting Web sites, cutting out the commercial online recruiting sites in the online job-seeker strategy.

    Monster, Yahoo Inc.'s HotJobs, and thousands of other online recruiting sites receive the majority of their revenue from companies using their service to post job advertisements. But Monster won't lose its pre-eminent position just yet, thanks in part to massive brand strength, says Chris Boone, International Data Corp.'s E-recruiting analyst. "There would have to be a huge, critical mass of companies to make a dent in Monster.com's market share," he says, noting the job board's Super Bowl commercial as only one aspect of its million-dollar marketing campaign.

    Online recruiting is one of the most profitable ventures for the Internet. Earlier this week, Yahoo completed its acquisition of Monster competitor HotJobs. The Internet portal won HotJobs in a successful hostile bid against Monster to diversify its revenue channels. - Elisabeth Goodridge

    For more, see: Yahoo To Scoop Up HotJobs http://update.informationweek.com/cgi-bin4/flo?y=eF3w0BcUEY0V20BVcJ0Au 

    Best Practices For E-Recruiting http://update.informationweek.com/cgi-bin4/flo?y=eF3w0BcUEY0V20BWh20Ac 

    SmartPros 2002 (Accounting) Career Guide --- http://www.smartpros.com/x33919.xml 

    Facebook for Student Recruiting

    March 5, 2007 message from Barry Rice [BRice@LOYOLA.EDU]

    I have suggested to my Accounting Department colleagues that Loyola should consider using Facebook as a tool to help recruit accounting majors. Perhaps we could set up a group called "Accounting as a Major" or "Why Major in Accounting?" or whatever. Facebook has a tool called "Create Related Event" that could be use to publicize meetings, etc. Have any of you looked into using Facebook in this way? Anyone using it for Beta Alpha Psi?

    Barry Rice AECM Founder

    E. Barry Rice, MBA, CPA
    Director, Instructional Services
    Emeritus Accounting Professor
    Loyola College in Maryland

    BRice@Loyola.edu  410-617-2478 www.barryrice.com 

    Facebook me! http://www.facebook.com/p/Barry_Rice/20102311

     
     
     
    Accounting Temps' complete listing of accounting and finance salaries --- http://www.accountemps.com/ResourceRequest?salaryGuide=true 

    Find the Perfect Job
    www.jobfactory.com
    Finding a new job or changing careers just got a lot less stressful. This site features JobSpider, a search engine for positions by title and location, as well as JobFactory’s own list of 250 top career sites. Plus, users can find links to more than 23,000 Web sites that post available jobs and want ads from most online U.S. newspapers.

    Career Guide to Industries -- Bureau of Labor Statistics --- http://www.bls.gov/oco/cg/

    CPA net --- http://www.cpanet.com/ 

     

    eChoices --- http://www.echoices.com/eChoices/ecIntro.nsf?OpenDatabase 

     

    eRecruiting --- http://www.erecruiting.com/er/security/no_cookie.jsp 

     

    Hoovers Business Finder --- http://premium.hoovers.com/subscribe/ 

     

    From Working Mother Magazine in September 2002 --- http://www.workingmother.com/list.shtml 

    The 100 Best Companies for
    Working Mothers List 2002

    Abbott Laboratories *Top Ten, *Best in Industry
    American Express
    *Top Ten
    Bank of America, N.A. *Top Ten
    Booz Allen Hamilton *Top Ten, *Best in Industry

    Bristol-Myers Squibb *Top Ten, *Best in Class
    Colgate-Palmolive *Top Ten
    Computer Associates *Top Ten
    Fannie Mae *Top Ten
    General Mills *Top Ten, *Best in Industry
    IBM *Top Ten, *Best in Industry

    Also included in the Top 100 companies are the following:

     

    Deloitte & Touche
    Ernst & Young
    KPMG
    PricewaterhouseCoopers

     
    Career Resources
    Job Opportunities & Career Planning ... Networking & Contact Names ... More

    www.Bookkeeperjobs.com  and www.AccountingBoard.com  are now linked. If this has reached you in error please forward to the proper person. Bookmark these sites and watch them grow.


     Accounting Professional Site Links 
    The CPA Team http://www.cpateam.com/  


    Hi Kay,

    Fist I might warn you that most salary surveys (for men and women) are badly out of date. The maximum salaries listed are often less than the starting salaries for our current accountancy graduates. Also, clerical accounting usually gets mixed in with public accountancy and higher-level professional careers in accountancy. This is especially problematic in studies of accounting salries for women since such a high proportion of working clerical accountants are women (for reasons that I won't go into here).

    I will make you do some of the work. You will find quite a few interesting hits if you search for "AICPA Statistics Women" without the quote marks in the "All the words" box at http://www.google.com/advanced_search 

    I think you will find other interesting hits with other combinations of words at the above site. For example, try "AICPA Careers Women".

    Also note the following links:

    Big Five firm PricewaterhouseCoopers has retained its top 10 spot on Working Mother magazine's annual list of the "100 Best Companies for Working Mothers." The other Big Five firms are represented on the Top 100 list as well. Find out what it takes to make the grade. http://www.accountingweb.com/item/60271 

    Deloitte & Touche is out to prove it is still the number one firm when it comes to Big Five recognition of female employees. The firm expects to double its female partner and director ranks over the next five years. http://www.accountingweb.com/item/48313 

    Promoting women CPAs (certified public accountants) (an analysis of the report of the Upward Mobility of Women Special Committee) --- http://www.nysscpa.org/cpajournal/old/07551184.htm 

    American Society of Women Accountants --- http://www.aswa.org/ 

    Occupational Outlook Handbook --- http://stats.bls.gov/oco/oco1001.htm 

    High Paying Careers for Women --- http://www-instruct.wccnet.org/~kstrnad/career/nontrad.html 

    Women on the Move --- http://www.insight-mag.com/insight/00/02/art-12.htm 

    Ceil's great site --- http://www.uwm.edu/~ceil/accounting/index.html 

    A Bentley College Site --- http://ecampus.bentley.edu/dept/ocs/grad/listing.html#ACCOUNTING%20CAREER%20RESOURCES

    Statistics regarding accounting and finance careers for women in the military are available at http://www.militarypartners.com/Links/Military_Lifestyle/Women.htm 

    Huge Database ---  http://www.accountantsworld.com/list/default.asp?adv=google&tar=cpa 
    Linked from http://www.accountantsworld.com 

     

    I might note a few excerpts (a sampling only) from previous editions of my weekly newsletter called New Bookmarks at http://faculty.trinity.edu/rjensen/bookurl.htm 

    From the Harvard Business School American Women in the Emerging Industrial and Business Age http://www.library.hbs.edu/hc/unheard_voices/ 

    A Web Site for Women www.ivillage.com 

    A Gender Gap in Startup Funding What do women want? For starters, greater access to venture capital, according to a new survey http://www.businessweek.com/smallbiz/content/dec2001/sb20011214_3179.htm?c=bwfrontierdec18&n=link1&t=email 

    Women in Academe – Still Hungry After All These Years --- http://www.aaup.org/pr01613.htm 

    "Women impeded by tech downturn," by Peter Deleveti, San Jose Mercury News, October 29, 2001 --- http://www.siliconvalley.com/docs/opinion/wiretap/pd103001.htm 

    Choices are Not So Great for Many Women More women are going online to seek an education. But technology isn't freeing modern women already working two shifts -- it's adding a third shift in the home, according to a new report --- http://www.wired.com/news/school/0,1383,46689,00.html 

    Women Engineer Tech Success --- http://www.wired.com/news/women/0,1540,43413,00.html  
    MentorNet founder Carol Muller finds working women to help female students explore technical vocations. But getting the education and the job is only part of the battle for equality.

    "Earning Differences Between Women and Men" http://www.dol.gov/dol/wb/public/wb_pubs/wagegap2000.htm 

    Women on the Web" winner Patricia Beckman has created animation for everyone from Dreamworks to ABC --- http://www.wirednews.com/news/culture/0,1284,43239,00.html 

    Women In American History --- http://www.britannica.com/women/ 

    Hope this helps!

    Bob Jensen

    -----Original Message----- 
    From: Kay Henry [mailto:henryk@rice.edu]  
    Sent: Friday, February 01, 2002 3:46 PM 
    To: rjensen@TRINITY.EDU 
    Subject: Referred by David Albrecht

    Professor Jensen:

    David Albrecht thought you might have some information or statistics on women in accounting. Our complete correspondence is below (including a compliment for you!), but my basic question is this:

    Do you know where I could get the latest statistics on percentages of women CPAs and women accounting graduates at the Bachelor's and Master's level? The study on the American Women's Society of CPAs website is dated 1996, and I couldn't find any statistics on the AICPA website.

    I am presenting this weekend to a regional meeting of the AWSCPA. Any information you have would be most welcome.

    Many thanks,

    Kay Henry 
    Director, MBA for Executives Rice University

    Although it is more directed to careers in finance, see Jobsinthemoney.com http://www.jobsinthemoney.com/ 

    What is happening in selected industries?
    Valuation Resources --- http://www.valuationresources.com/IndustryReport.htm 
    This is a helpful Website for researchers and practitioners.

    Industry Resources Reports

    Industry Resources Reports list resources available from trade associations, industry publications, and research firms which address subjects such as industry overview, issues, trends, and outlook, financial benchmarking, compensation surveys, and valuation resources.

    Each entry in a category contains the name of the source organization, the name of the particular resource, a hyperlink to the source organization website, a brief description of the resource, and a description of any information that is provided free online. The user can check the website or contact the source organization for additional information and product pricing. In some cases, the resource may not be available on the website but can be obtained by calling the source organization using the phone number provided on the website.

    One of the many industries covered is SIC 8721 Accounting, Auditing, and Bookkeeping Services  
    http://www.valuationresources.com/Reports/SIC8721AccountingAuditingandBookkeepingServices.htm
       

    Accounting Services
    http://industryprofiles.1stresearch.com/
    Each industry profile includes industry overview, key questions, trends and developments, threats and challenges, opportunities, news and media information, financial information, and web site links. Sample report available; individual industry profiles can be purchased online. Also available on subscription basis.

    Bureau of Labor Statistics, U.S. Department of Labor
    Occupational Outlook Handbook - Accountants & Auditors
    http://www.google.com/search?hl=en&q=occupational+outlook+handbook
    This site describes the nature of the industry, working conditions, employment, occupations in the industry, training and advancement, earnings and benefits, employment outlook, and lists of organizations that can provide additional information. Available free online.

    Industry Growth Outlook Report
    http://www.integrainformation.com
    Report provides 5 years of historical and forecast industry revenue growth information. Also includes historical and forecast macroeconomic indicators. Covers over 900 SIC codes. Individual reports can be purchased online.

    Marketing Research Profile
    http://www.bizminer.com/index.asp?aid=78

    Profiles provide market research by industry segment on a national and local level for 250 metropolitan areas. Includes market volume and number of firms, sales trends, sales per employee, staffing and employment trends, startup activity, failures rates, and new branch development. Available for all SIC codes. Individual reports can be purchased online.

    More Information
    Other resources which cover a wide variety of industries are available at http://valuationresources.com/IndustryOutlook.htm.

    Note:  I think an academic career is one of the best possible career choices.

    However, be cautious before embarking on such a career.

    Something to consider before you embark on a career in academe
    Don’t get me wrong; I’m not trying to talk you out of it – just making sure you know what you want. You wouldn’t just forge ahead after graduate school by naively entering the job market, applying for any and all posted positions, and requesting a multitude of recommendation letters, without performing some type of self-assessment – right? Unfortunately, academics answer Yes more often than might be expected. In many cases, they leap toward academic careers, ignoring somewhat painfully obvious advice and warning signs — that they are not suited for this path, or the goal of teaching or research is wrong for them. Why does this happen? There is an unspoken pressure or obligation to seek employment in academia after graduate training. That is what you are supposed to do, and if you don’t, it’s an embarrassment and you’re a disappointment.
    David B. Rivers, "Who Are You?" Inside Higher Ed, July 27, 2005 --- http://www.insidehighered.com/careers/2005/07/27/rivers

    Also See Helpers, Careers

    Directories of Accountants and Accounting Firms

     
    Yahoo Search for CPA firms

    When searching for a vendor, I recommend that you go to the http://www.realnames.com web site:

    If you know a product name and want to find what company makes that product or vice versa, you might triy http://www.realnames.com .   Web site URLs are also provided.  I typed in "Authorware" and was taken directly to the Authorware product section at the Macromedia web site. 

    Professional Accounting Firms in USA

    From the Scout Report --- Business.com http://www.business.com/ 

    The owners of this lucrative URL address have sponsored a Web directory created by a "team of 50 research analysts [that] has sifted through the Web to find relevant sites for our handcrafted Directory." All Websites in this 30-category directory have been annotated. The annotations, however, tend to be very terse and a bit vague. First time users are encouraged to skim over the excellent site guide, which gives a step-by-step manual for using the site as well as in-depth explanations of the terminology and taxonomy.

    Big Five Accounting Firms

    Arthur Andersen

    Arthur Andersen Home Page
    Arthur Andersen KnowledgeSpace
    Arthur Andersen - History of Accounting
    Andersen Consulting
    Architext Querying
    Andersen Consulting Careers - The Multimedia Experience (Shockwave)
     

    Coopers & Lybrand (Now PriceWaterhouse Coopers)

    PriceWaterhouse Coopers Global at http://www.pwcglobal.com/
    Coopers and Lybrand, Navy and TQM - Fraud or Mistake
     

    Deloitte & Touche

    Deloitte & Touche LLP - US Practice
    Deloitte & Touche PeerScape Home Page
    Deloitte & Touche Risk Management & Control: Visual Assurance
     

    Ernst & Young

    Ernst & Young LLP - Welcome
    Perspectives on Business Innovation (Ernst & Yojng Webzine online Magazine)
    Here's Ernie
    Ernie. Your online business consultant
    Ernst & Young LLP - Download Library - SFAS 133 Financial Instruments Derivatives
    Ernst & Young LLP - Download Library - SEC Rules on Financial Instruments Derivatives
    .
     

    KPMG

    KPMG International
    KPMG PEAT MARWICK LLP CAMPUS HOME PAGE
    KPMG US -- Information Risk Management
    KPMG US - Financial Services: Banking & Finance Publications
     
     

    Price Waterhouse (Now PriceWaterhouse Coopers)

    PriceWaterhouse Coopers Global at http://www.pwcglobal.com/
    Business Executive's Accounting Network (PriceWaterhouse Coopers)
    PW Resercher Guidelines are given at http://instruction.bus.wisc.edu/jfuhrmann/pwr/PW%20Researcher%20Guidelines.html  
     
    Price Waterhouse Researcher Updates
    Ernst & Young LLP Home Page
    Price Waterhouse Home Education Network
    1997 EMC Global Roundtable (Price Waterhouse)
    SAP R/3 Design Center [SAP] Price Waterhouse
    Coopers & Lybrand L.L.P. (US) - Home
    Coopers and Lybrand, Navy and TQM - Fraud or Mistake
     

    Miscellaneous Accounting Firms

    Arthur Naman, CPA
    BAKER NEWMAN & NOYES
    Earl Hall, CPA
    Ernst & Young LLP
    KPMG Peat Marwick - US
    Murphy Green & Company, CPAs

    Directories of Accountants and Accounting Firms

     Accounting Professional Site Links 
    The CPA Team http://www.cpateam.com/  
     
    Yahoo Search for CPA firms
    INPACT Americas, An international network of independent accounting firms
    Professional Accounting Firms in USA
    BGSU's Directory of CPA & Consulting Firms
    ACCOUNTANT'S HOME PAGE (includes CPA firm directory)
    CPA Web Site Interactivity (Directory of CPA firms)
    Bowling Green Univ. Directory of CPA & Consulting Firms
    Welcome to Accountant-Finder (Directory)
    MACPA Online (Doctors, Lawyers, and Accountants)
    Tax and Accounting Sites Directory
    AccountingNet is the complete online resource for accounting professionals: Accounting
    E. Barry Rice, Loyola College in Maryland
    Wm. Dennis Huber's Web Page
    Accounting and Financial Information
    Accounting Site Seeker
    Kent Information Services, Inc.
    MACPA Online
    The Umbrella Project (helpers for starting up a small business) http://www.umbrellaproject.com/
    American Express Small Business Exchange (Small business consulting, accounting)
    Spiceland's Course Resources

    We've always known that you can buy some professionals (lawyers, expert witnesses, jockeys, senators, athletes, the Olympics Board, evangelists, accounting professors, etc.), but how low can you get when you can buy your CPA auditor online at an auction. See http://www.cpaauction.com 
     

    Business Firm and Other Directories

    Financial Accounting Reports (Financial Reporting)

    Directory of Online Corporate Annual Reports http://www.reportgallery.com/ 
    Gerald Trite's great set of links --- http://iago.stfx.ca/people/gtrites/Docs/bookmark.htm 
    Electronic Corporate Reporting Website: Home Page
    AICPA SPECIAL COMMITTE ON FINANCIAL REPORTING
    Index of /localinf/debtguide/
    Corporate Information
    Microsoft Financial Forum (Annual Reports)
    The International Corporate Environmental Reporting Site / Milieujaarverslagen
    Index for ACCT 5341 (International Accounting Theories)

    If you want to look up a company's annual report online, a very good annual report directory is located at
    http://www.reportgallery.com/content/glry_a.htm

    If you want to look up a company's annual report online, a very good annual report directory is located at
    http://www.reportgallery.com/content/glry_a.htm .  Of course there are some good SEC links at

    EDGAR Database
    at http://www.sec.gov/edgarhp.htm
    EDGARSCAN from PriceWaterhouseCoopers at http://www.pwcglobal.com/gx/eng/ins-sol/online-sol/edgarscan/  
    Free EDGAR  at http://www.freeedgar.com/
     
    Invisible Worlds ( http://www.invisible.net/ ) is building a XML based duplicate EDGAR database

    Hoover’s UK (Database of information about companies in the UK, like the US version of EDGAR)
    http://www.hoovers.co.uk/

    Thanks to Chris Nolan I found a pretty good free web site for company and company-to-industry comparison ratios at http://www.financialweb.com/  . Click on the research tab in at that web site and enter a symbol like IBM.

    Chris also recommended http://www.stockpoint.com/ .  Enter a symbol or company name such as IBM.  Get the Quote for that company.  Then click on the Company Profile button to see some ratios. 

    Another free web site that I recommend is  http://www.investorguide.com/cgi-bin/research.cgi
    After searching on a particular company's symbol (try IBM), you will find a Market Guide link.
    Alternately, you can begin with Market Guide at http://www.marketguide.com/mgi/snap/4741N.html or http://Yahoo.marketguide.com  .
    Users should carefully examine the Market Guide Glossary at http://yahoo.marketguide.com/mgi/HELP/glossary.html .  A possible exercise for students is to have them verify (for selected companies and selected ratios) the Market Guide calculations.

    My next recommendation is to go to http://www.natcorp.com/framedirectory.html . By entering a company's stock symbol, you can get all sorts of links, including that company's profile and fundamentals links. The "Company Data" path at this web site leads to http://www.natcorp.com/traded.html

    ABC News has some quick and very limited company information for free at http://webapp.abcnews.com/profiles/abc_comp_profiles.asp

    If you want to look up a company's annual report online, a very good annual report directory is located at
    http://www.reportgallery.com/content/glry_a.htm . Of course there are some good SEC links at

    EDGAR Database
    EDGARSCAN from PriceWaterhouseCoopers   
    (quicker response time)

    Free EDGAR

    For a fee, you can get more complete company and industry profiles at http://www.wsrn.com . This is a very good service, but some good things in life are not free.

    If you are interested in online financial analysis, I highly recommend some of Larry Tomassini's great links.

    Tomassini's CorpOnline at http://www.cob.ohio-state.edu/~tomassin/corps/corp.html

    Tomassini's Financial Analysis Online http://www.cob.ohio-state.edu/~tomassin/fanon.html

    Jim Borden mentioned the Deloitte & Touche web site at
    http://www.peerscape.com/member/index.cfm
    I found the above server to be painfully slow.  However, Jim's recommendations should always be taken seriously.

    MACRO ECONOMICS LINKS (including data classified by industry)

    Last year I shared a platform with David Boldt at an education technology conference at Bentley College. David has a great web site for economists, particularly in the area of macroeconomics. His materials are listed at http://www.westga.edu/~dboldt

    If you are looking for industry and economic statistics. one place to begin searching is at http://econwpa.wustl.edu/EconFAQ/USMacro/index.html

    The above web site leads to a heap of macro data, but you were more interested in industry ratios. A bit of searching from the above site led me to a University of Michigan site at
    http://www.lib.umich.edu/libhome/Documents.center/stats.html

    Facts and statistics (Fast Facts) --- http://gwu.edu/~gprice/handbook.htm 

    Country Briefings (international statistics) from The Economist http://www.economist.com/countries/ 

    Stock Market Lab [.pdf]
    http://www.yardeni.com/stocklab.html

    There are various industry categories at the above web site. The Business and Industry button led me to the FedStats web site at http://www.fedstats.gov

    Another good set of Federal Government links can be found at
    http://www.sec.gov/others.htm

    Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

    Links to the Top Five Personal Finance Web Sites:   http://www.tiac.net/users/nhannon/finance_personal.htm

    Also see the CFO Magazine Online  http://www.cfonet.com/

    An interesting personal finance web site (among the thousands available) is at
    http://www.cncurrency.com
    Not much in the way of ratio data at that web site, but you will find a variety of interesting documents and links.

    Glossaries for Accountants

    I would appreciate readers to inform me about accounting, auditing, tax, and related glossaries that are online. Some that I know about are as follows:

    Bob Jensen's Technology Glossaries http://faculty.trinity.edu/rjensen/245gloss.htm  
    This web site contains a long listing of accounting and related glossaries along with my
    technology and education technology glossary

    Also see Helpers, Glossaries

    Fee-Based Accounting Knowledge Vortals for Most Developed Nations and International Standards
    Arthur Andersen's Accounting Research Manager (after a free 30-day trial, the cost is over $2,000 per year for a single user) --- http://www.arm.arthurandersen.com 
    Academic pricing is not mentioned at the Web site, but some universities might possibly negotiate lower pricing.

    Accounting Research ManagerTM is a comprehensive financial reporting knowledgebase that provides materials designed to help solve your most pressings issues. Continually updated, it is the most timely, complete, interpretive resource for your financial reporting needs.

    PwC's Comperio Accounting Research Manager ($1,400 in the U.S. and considerably cheaper in other nations, but the comprehensive version covering all territories is $3,340)

    Comperio is the most comprehensive on-line library of financial reporting and assurance literature in the world. Over 1,500 financial executives from around the world use Comperio on a daily basis. Comperio content includes AICPA, DIG, EITF, FASB, IAS, ISB and the SEC as well as pronouncements and standards from Australia, Belgium, Canada, New Zealand and the United Kingdom.

    With Comperio, the answers you need are always available - right now, right at your fingertips. There is no software to install - just go to the Comperio website and start researching!

    The entire online library can be immediately accessed by browsing a pronouncement or topic directly, or by searching the entire database for key words, topics or terms.

    Visit the Comperio product information site at http://www.pwcglobal.com/comperio . You will find the necessary forms to order Comperio today or to request a 30-day free trial.

    News, Magazines, and Journals for the Accounting Profession

     

    In March 2000, Forbes named AccountantsWorld.com as the Best Website on the Web --- http://accountantsworld.com/.
    Some top accountancy links --- http://accountantsworld.com/category.asp?id=Accounting

     

    Bob Jensen's New Bookmarks --- http://faculty.trinity.edu/rjensen/bookurl.htm 

     

    Bob Jensen's Updates on Accounting and Finance Fraud --- http://faculty.trinity.edu/rjensen/FraudUpdates.htm 
    Bob Jensen's main document on accounting fraud --- http://faculty.trinity.edu/rjensen/fraud.htm 

     

    e-Commerce and e-Business Helpers for Accountants --- http://faculty.trinity.edu/rjensen/ecommerce.htm

     

    Finance Newsletter --- The Finance Professor --- http://www.financeprofessor.com/about/aboutFP.html 

    This is a reminder to check the abstracting database, and article services that your university's library pays for as a service to students, faculty, and staff.  If you've not checked lately, you might be amazed at the expensive subscription services that are available free online to you if your library recognizes your password.

    Chamber of Commerce Guide to Scholarships From Various Sources ---
    https://www.chamberofcommerce.org/best-college-scholarships

    For example, Trinity University is a very small school, but the subscription services of its library are rather extensive --- http://lib.trinity.edu/dbs/ 

    Theory Meets Practice ---
    http://faculty.trinity.edu/rjensen//theory/00overview/theory01.htm#AcademicsVersusProfession

    Bob Jensen

    -----Original Message----- 
    From: Paul Apodaca [mailto:paul@PAPODACA.COM]  
    Sent: Wednesday, May 28, 2003 6:52 PM 
    To: AECM@LISTSERV.LOYOLA.EDU  
    Subject: Re: Bad News from the New York Times

    Neal,

    A possibility might be http://www.rsicopyright.com/
    They allow keywork tracking of 300 sources using their "clip&copy" service. This is free, but only provides an abstract of the article. If you want the actual article, there is a charge to get it through them. I have it set up for daily reports on "xml or xbrl" and "PCAOB", but you can set your own frequency.

    In addition, you can access articles at:

    1) http://www.accountantsworld.com/ . I use them to host my website (http://www.papodaca.com) and find the articles are quite useful. I point my students to my website and have them check the "Daily News", but you can access the same information directly. Access to the articles is generally free.

    2) http://www.accountingweb.com/  
    Articles often duplicate the ones on AccountantsWorld, but that isn't a surprise as they both use search bots to pull relevant articles.

    3) http://www.smartpros.com   
    Another good source.

    4) http://www.dushkin.com/powerweb/  
    PowerWeb  is free with many textbooks. PowerWeb has a "Dynamic Accounting Profession" section as well. Very good. The card that comes with the text gives you a code to register (for that text), but so far, all of the accounting items that I have accessed have not required me to register. Registration also gives you access to the Northern Light premium sources. Lots of good tips for the students as well.

    I put these links in my syllabi, and require the students to bring in an article sometime during the semester. The only requirement is that it have some vague connection to the course (and some of them are VERY vague), and they give the class a brief verbal abstract. It is part of their participation.

    Not terribly successful, but it is working better each semester.

    I hope that this information is useful.

     

    From CPA Update News on October 30, 2002

    2. C P A n e t F i n d s 

    Every so often you come across a site or article that makes you stop and take notice...

    Portfolio Management

    Journal of Portfolio Management - http://www.cpanet.com/up/s0210.asp?ID=0606

    Portfolio Management Forum - http://www.cpanet.com/up/s0210.asp?ID=0607

    Portfolio Knowledge - http://www.cpanet.com/up/s0210.asp?ID=0608

    The Small-Cap Alpha Myth - http://www.cpanet.com/up/s0210.asp?ID=0609

    Multistyle Rotation Strategies - http://www.cpanet.com/up/s0210.asp?ID=0610

    myCFO - http://www.cpanet.com/up/s0210.asp?ID=0611

    Legal Research Portals

    Law & Legal Research Center - http://www.cpanet.com/up/s0210.asp?ID=0575

    FindLaw - http://www.cpanet.com/up/s0210.asp?ID=0576

    AllLaw - http://www.cpanet.com/up/s0210.asp?ID=0577

    FindForms - http://www.cpanet.com/up/s0210.asp?ID=0578

    LawInfo - http://www.cpanet.com/up/s0210.asp?ID=0579

    LawyerExpress - http://www.cpanet.com/up/s0210.asp?ID=0580

    Technology for Nonprofits

    Nonprofit Technology Planning - http://www.cpanet.com/up/s0210.asp?ID=0581

    Technology Funding - http://www.cpanet.com/up/s0210.asp?ID=0582

    The CTC Movement - http://www.cpanet.com/up/s0210.asp?ID=0583

    Hiring Consultants - http://www.cpanet.com/up/s0210.asp?ID=0584

    Computer Networks - http://www.cpanet.com/up/s0210.asp?ID=0585

    Recycled Hardware - http://www.cpanet.com/up/s0210.asp?ID=0586

    Web Building - http://www.cpanet.com/up/s0210.asp?ID=0587

    Database Management - http://www.cpanet.com/up/s0210.asp?ID=0588

    Project Finance

    HBS Project Finance Portal - http://www.cpanet.com/up/s0210.asp?ID=0589

    Project Finance InfoSite - http://www.cpanet.com/up/s0210.asp?ID=0590

    Project Finance Glossary - http://www.cpanet.com/up/s0210.asp?ID=0591

    Int'l Project Finance Assn - http://www.cpanet.com/up/s0210.asp?ID=0592

    Project Development Disciplines - http://www.cpanet.com/up/s0210.asp?ID=0593

    Project Finance Magazine - http://www.cpanet.com/up/s0210.asp?ID=0594

    Enron Affect on Project Finance - http://www.cpanet.com/up/s0210.asp?ID=0595

    College Funding & 529 Plans

    529 Plan Center - http://www.cpanet.com/up/s0210.asp?ID=0596

    IRS Code 529 - http://www.cpanet.com/up/s0210.asp?ID=0597

    529 Plans - http://www.cpanet.com/up/s0210.asp?ID=0598


    "529 college savings plans have their downsides The state-sponsored programs offer a tax-advantaged way to save for college. But there are pitfalls to 529s that even careful investors can overlook," by Walter Hamilton and Stuart Pfeifer, Los Angeles Times, December 18, 2011 ---
    http://www.latimes.com/business/la-fi-college-529-20111218,0,2693621.story

    Sherri and Cliff Nitschke thought they were planning wisely for their children's college educations when they opened a 529 savings account in 1998.

    The Fresno couple saved diligently over the years in hopes of avoiding costly student loans. But their timing couldn't have been worse.

    When they needed the money a decade later, their 529 account had plunged in value during the global financial crisis. Their portfolio sank 30% in 2008, forcing the Nitschkes to borrow heavily to send their two sons to
    UCLA.

    "529s were no friend to us," Cliff Nitschke said. "Honestly, it's probably one of the worst things we did. I could have made more money putting it in a mayonnaise jar and burying it in the backyard."

    Over the last decade, 529 savings plans have surged in popularity as parents scramble to keep up with rapidly escalating college costs.

    Similar in some ways to 401(k) retirement plans, 529s are state-sponsored programs offering a tax-advantaged way to save for college. Parents typically invest in stock and bond mutual funds with after-tax dollars. But the earnings grow free of federal, and generally state, taxes.

    Every state offers at least one 529 plan, and parents can invest in any state's plan. Many states give up-front tax deductions for 529 contributions, though California does not.

    Assets in 529 accounts have swelled to $135 billion today from $91 billion five years ago, according to Financial Research Corp.

    But as the Nitschkes discovered, there are downsides to 529s that even careful investors can overlook.

    "There are a number of pitfalls that can catch parents completely off guard," said Deborah
    Fox, founder of Fox College Funding in San Diego, which advises families on how to pay for college. "They are not a panacea."

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    Maximize College Funding - http://www.cpanet.com/up/s0210.asp?ID=0599

    Savings Plans Come of Age - http://www.cpanet.com/up/s0210.asp?ID=0600

    Upromise - http://www.cpanet.com/up/s0210.asp?ID=0601

    SavingforCollege.com - http://www.cpanet.com/up/s0210.asp?ID=0602

    Paying for college - http://www.cpanet.com/up/s0210.asp?ID=0603

    529 Plans Explained - http://www.cpanet.com/up/s0210.asp?ID=0604

    Financial Aid: 529 Plans - http://www.cpanet.com/up/s0210.asp?ID=0605

    Time To Swap (College Education) Piggybanks? Custodial accounts have lost much of their tax benefits
    For years, parents have been stashing money in custodial accounts to fund their kids' college educations. They've saved on taxes, too, since a large portion of the bill is paid at the child's lower rate. But recent changes in the law sap so much of the tax savings from custodial accounts that state-sponsored 529 college savings plans, which are tax-free if used for education, are better deals. In fact, they're so much better that you may want to cash out your kids' custodial accounts and put the money in 529s.
    Business Week, August 6, 2007 --- Click Here

    Advantages and disadvantages are concisely summarized at http://en.wikipedia.org/wiki/529_plan

    How 529 Plans Work --- http://money.howstuffworks.com/5292.htm

    Great Links
    For more links about 529 plans, enter "529" into the search box at http://www.howstuffworks.com/
    Scroll over the links to brokerage firms to see a set of great free links.

    Also see http://www.electronicaccountant.com/ 
    Where can you find a great listing of accounting journals?  Try http://www.csu.edu.au/anet/research/index.html 
     Accounting Professional Site Links 
    The CPA Team http://www.cpateam.com/  
     
    CPA net --- http://www.cpanet.com/ 
    Accounting Education Using Computers and Multimedia (the AECM ListServ)
    CPA ListServ
    AICPA Journal of Accountancy
    Accountancy Magazine - Int'l Home Page

    Association of Government Accountants

    Falkner and Gray's ElectronicAccountant

    A Forum for Accountants (Click on Forums)

    CPAS-L, THE Internet Accounting List/Forum for CPAs
    Perspectives on Business Innovation (Ernst & Yojng Webzine online Magazine)
    The Electronic Accountant
    AcctgInfoPlus Accounting Education Links
    AINTSYS-L: Journal of Financial Information Systems
    CPA Journal Online
    The Accountant's Ledger - The Online Magazine for Accountants
    IRS - The Digital Daily
    The Accountant's Ledger - The Online Magazine for Accountants
    Journal of Accounting and Computers
    Journal of Financial Information Systems
    Journal of Financial Information Systems
    Newsand Information (Legislation, Law, Accounting, Auditing, Health)
    The CPA Journal
    Cover story: Return On Investment (Information Technololgy)
    Horizon Perspectives - CPA News
    WELCOME TO THE CPA VISION PROJECT!
    Featured Applied Ethics Web Site
    http://www.accountingstudents.com/news/headlines/index.html
    Internet Essentials ‘99 Newsletter for the financial professional

    Bob,
    I have not yet updated my page on Double Entries so the information that you gave to AECM on how to subscribe is incorrect. A Web-based registration form for Double Entries is at http://www.accountingeducation.com/subscribe.cfm The form makes it very easy for any user to sign up for Double Entries (Mark 2).
    Cheers,
    RogerD

    TO SUBSCRIBE to the ANet:  (I highly recommend this for accountants and accounting educators)

    1. send an email message to: listname-request@listserv.csu.edu.au Substitute for "listname" the name of the particular list to which you wish to subscribe. Don’t forget the word "request". For example, to subscribe to ANEWS address your message to ANEWS-L-request@listserv.csu.edu.au

    2. In the SUBJECT line type: subscribe
    Make sure this is in the subject line and not in the body of the message!! Note that complete archives of the lists are held at http://www.csu.edu.au/anet/lists/

     

    News About Accounting Education

    For the most comprehensive web site containing news about accounting, investing, and accounting education, I recommend that you take at least weekly visits to AccountingEducation.com
    http://www.accountingeducation.com/   (also note the comprehensive set of links).


    August 2001 CPA Journal's Chosen "Website of the Month"

    Website of the Month: My Accounting Portal My Accounting Portal ( www.myaccountingportal.com ) launched only in January, but its act seems to have been in good shape from the get-go. Touting itself as combining “the best features of consumer portals by giants such as Yahoo and Excite with the reference tools and resources of a traditional accounting website” and including “extensive customization technology, a wealth of original content, powerful tools, and carefully screened links,” the “about us” page does not overstate the case.

    This portal probably meets the criteria on anyone’s bookmark checklist. Features include the following:

    Customization. Similar to general-user portals like Yahoo, a user can customize the main page so favorite news feeds, research materials, and other resources are readily available.

    A user can recustomize the layout at will.

    Personal/professional features. The portal has an accounting website module that provides a range of accounting news and research and access to web-hosted applications. The portal also offers general and business news, links to websites in myriad areas, a personal information manager, stock quotes, weather, and other modules. Editors’ top picks. The portal’s editors select articles from listed websites they think will be most helpful to accountants and organize them into convenient categories. Personal information manager (PIM) and QuickMail. These areas contain the familiar contacts, notes, calendar, task list, bookmarks, and e-mail functions, available through a web-based interface for easy accessibility. Office tools. The portal’s tools for doing business on the Internet include basic telephone directories as well as collaboration tools for storing data and sharing information electronically. Client interactivity. The portal is developing a number of client-interactive features, such as web-hosted applications, downloadable tax-returns, a tax due-date calendar, a client scheduler, and time and billing functions. For accountants that already have office management and PIM tools, My Accounting Portal may offer more than needed. But the anywhere-anytime advantage is a real one, the online research archives are impressive, and the portal’s website listings are well organized.

    Accounting Directories

    http://accountantsworld.com/category.asp?id=Accounting 

    AccountingWEB's Entrepreneur to Accountant Referral Network (E.A.R.N.) program, matching the accounting and financial needs of thousands of small businesses with the talent of the AccountingWEB community. http://www.accountingweb.com/item/39161 

    Jack Anderson's Accounting Information Finder --- http://www.umsl.edu/~anderson/accsites.htm

    Accounting & Tax News

    Accounting Web

    Accounting Education (Strong on International Accounting News)

    ANet web site at http://www.csu.edu.au/anet/

    IAS Plus (Strong on International Accounting News and Standards)

    Electronic Accountant 

    Accountant's World 

    PPCnet 

    Accounting Today 

    AICPA 

    VAT 

    CCH 

    Tax News 

    Tax Cast 

    Tax Wire

    A top web site for international accounting news and resources is the ANet web site at http://www.csu.edu.au/anet/

    Don't neglect the Prentice-Hall Phlip web site maintained superbly by David Fordham at James Madison University. 
    (David does a good job with this.)
    http://www.phlip2.marist.edu/phinternet97/accounti.htm

    AccounitngNet also carries updated news in a Newsletter at http://www.accountingnet.com/newsletter .

    Dryden Press has useful accounting educator  news at links at
    http://www.dryden.com/infosys/parker3/student/resources/

    And don't forget the Accounting Students Newsletter at http://www.accountingstudents.com/ .   This web site is particularly helpful in providing career helpers to students.

     

    Wow International Accounting Helper Site 
    Paul is a former student during my years at Michigan State University and has been project director of various FASB and IASC accounting standards before joining Deloitte on special assignment in Hong Kong.

    Hello Bob,

    As part of my work at Deloitte here in Hong Kong, I have developed IASPLUS, which is both a web site (http://www.iasplus.com) and a quarterly printed newsletter (the latter is available on the website in electronic form).  The website and newsletter are devoted to the development, dissemination, understanding, and use of International Accounting Standards.  Both include country-specific information -- currently limited to Asia but soon to be expanded to include Europe and beyond.

    I thought these might be of interest for your bookmarks.

    I enjoyed our panel together at the AAA.  I hope to see you this summer at the Atlanta meeting.

    Paul Pacter

    Reply from John Phillips [jphillip@UOG9.UOG.EDU] on March 7

    This is a great site it provides details not only on IAS but on the countries of the world as to their accounting standards and CPA organizations

     
    Accounting Journals Index
    Accounting Education Using Computers and Multimedia
    Association of Government Accountants 
    CPA ListServ
    Business Executive's Accounting Network (PriceWaterhouse Coopers)

    A Forum for Accountants (Click on Forums)
    Bob Jensen's Links
    Scout Report Acrobat .pdf Versions

    Falkner and Gray's ElectronicAccountant
    Scout Report Homepage
    AcctgInfoPlus Accounting Education Links
    Home - CPA Newsletter (From Dave Albrecht )
    WSRN.com: Research A Company (Accounting Education, Financial News, Financial Markets)
    Double Entries - CAARNet (Accounting Newsletter)
    AccountingStudents.com
    Featured Applied Ethics Web Site
    Kent State CPA Newsletter
    BUSINESS RESOURCES
    Welcome to NACUBO!
    The International Corporate Environmental Reporting Site / Milieujaarverslagen
    Internet Scout Project - Home
    http://www.accountingstudents.com/news/headlines/index.html

    Just for Educators from the AICPA --- http://www.aicpa.org/edu/justedu.htm 

     
    Accounting Education: Charting the Course through a Perilous Future
    Taylor Report on Student and Academic Research Study
    AICPA Core Competency Framework for Entry into the Accounting Profession (The Framework)
    150-Hour Education Requirement
    Academic and Career Development
    Best Academic Practices
    CPA Examination Reformation and Computerization
    CPA Vision Project
    Conferences
    Curriculum Development Guidance
    Education Programs and Services
    Educational and Professional Updates
    Pathfinders
    Publications


     

    Not-For-Profit (NPO) Links

    Links to Not-For-Profit (NPO) Sites, Journal of Accountancy, November 2000, p. 19 --- http://www.aicpa.org/pubs/jofa/nov2000/news_web.htm 

    The Law of the Not-for-Profit Land --- www.icnl.org

    The mission of the International Center for Not-for-Profit Law is to assist in "the creation and improvement of laws and regulatory systems that permit, encourage, and regulate the NPO sector in countries around the world." The site contains an online library of legal opinions and self-regulation and tax documents.

    A Path to Information --- www.indepsec.org 

    The Independent Sector's home page is also the home of both the Nonprofit Information Center and the Nonprofit Pathfinder. The center explains what constitutes the not-for-profit sector, its size and scope, volunteering and links to related resources. The pathfinder bills itself as "the global gateway to civil society research and innovation" and includes links to resources such as academic centers and other NPOs.

    Your Questions Answered --- www.nonprofits.org

    The Internet Nonprofit Center offers news items as well as a free weekly e-mail subscription to its online newsletter. But the most useful aspect of this site is its frequently-asked-questions section, which covers a number of topics, including accounting, audits, compensation, risk management and software.

    News for NPOs --- www.gilbert.org/news 

    The Nonprofit Online News site, like the one above, offers news items and a free weekly e-mail subscription to its online newsletter. Also available are newsletter issues from April 1997 through the present, as well as a section where NPOs can submit their own news items.

    The Source for Management --- www.nptimes.com 

    The NonProfit Times bills itself as "the leading business publication for nonprofit management." It includes an employment marketplace section and a resource directory. The magazine is offered free to full-time U.S. NPO executives "whose organizations qualify." Two other editions of their publication—for direct marketing and for financial management—are available.

    "Sizing Up NPO Software," Roberta Ann Jones, Journal of Accountancy, November 2000, pp. 28-44 --- http://www.aicpa.org/pubs/jofa/nov2000/jones.htm 

    • TRYING TO ADAPT conventional accounting software to handle the books of an NPO is like struggling to fit a square peg in a round hole. Their differences are so significant that without major customizing, for-profit software just can’t handle NPOs’ unique accounting needs.
    • NPO ACCOUNTING SOFTWARE should be able to accommodate, among other things, multiple self-balancing funds, encumbrance accounting and special reports to meet FASB and/or GASB requirements.
    • WHEN YOU EXAMINE products, you’ll probably find that you’ll have to make some trade-offs when it comes to software functions.
    • EACH PACKAGE HAS GOOD and bad features. But in some cases, features this review gave low marks to may not be critical to the way you use the software. Features that were highly rated may not be important to you. Your needs should dictate which product is right for you.
    • WHATEVER YOU DO, before buying, run comprehensive evaluations. It is not good enough to trust the claims of a vendor. Test the product with data typical for your organization.

    ABA LawInfo.org --- http://www.abalawinfo.org/ 
         Your gateway to information on legal topics that affect your daily life.

    Miscellaneous Links for the Accounting Profession

     

    Richard Torian's Managerial Accounting Information Center --- http://www.informationforaccountants.com/ 

    O'Keefe Accounting Library Searches http://library.sau.edu/bestinfo/Majors/Accnt/accindex.htm

    What Is Activity-Based Costing?
    Activity Based Costing
    Some links from Stephen H. Glad (links to accounting, auditing, finance, and government sites)
    CONSORTIUM FOR ADVANCED MANUFACTURING (Activities Based Costing)

    Worldwide Directory of Accountants and Consultants --- http://www.searchsystems.net/list.php?nid=62

    Bob Jensen's helpers on how choosing professional advice --- http://faculty.trinity.edu/rjensen/fees.htm

    Accounting Professional Site Links 
    The CPA Team http://www.cpateam.com/  

    When accounting for advertising firms, Susan Jeter recommended Adman from Marketing Resources Plus
    http://www.lib.polyu.edu.hk/electdb/DATAPRO/154-1.htm#prod30

    A great listing of URLs of companies selling accounting systems software
    http://www.lib.polyu.edu.hk/electdb/DATAPRO/154-1.htm

    E. Barry Rice, Loyola College in Maryland
    A S A P
    Electronic Corporate Reporting Website: Home Page
    ABREMA - Activity Based Risk Evaluation Model of Auditing
    ACCOUNTING RESOURCES ON INTERNET
    AICPA SPECIAL COMMITTE ON FINANCIAL REPORTING
    AuditNet: Internet Resources for Auditors
    G A R P
    AuditNet --- http://www.auditnet.org/
    Internal Auditing
    FreeEDGAR.com: Free live EDGAR data and more...
    accounting history

    Welcome to CROL (online annual financial reports)

    Yahoo! - Business and Economy:Companies:Financial Services:Accounting
    Home Page for MicroMash
    Featured Applied Ethics Web Site
    Accounting Education Using Computers and Multimedia

    CPA ListServ

    A Forum for Accountants (Click on Forums)

    Vitual Relocation helpers from James Angelini, CPA.  Among other things you can find cost of living comparisons at http://www.virtualrelocation.com/

    Compensation and Financial Planning Sites
    From the Journal of Accountancy, October 2001, Page 23 --- http://www.aicpa.org/pubs/jofa/oct2001/news_web.htm 

    Plan for Tomorrow Today
    www.adp401k.com

    This retirement services site offers detailed explanations of various plans—defined contributions, 401(k) safe harbors, SIMPLE IRAs and executive deferred compensation. It also provides users with overviews and information about the requirements for and contributions to such plans.

    A Web-Based Watchdog
    www.aflcio.org/paywatch/index.htm

    Although a company’s stockholders might not see much of a profit for a given fiscal year, top executives still could receive millions of dollars in salary, bonuses, and stock options. This section of the AFL-CIO site tracks compensation packages for CEOs of corporations in the Standard & Poor’s 1,500 stock index.

    A Beneficial Introduction
    www.rsgroup.com/html/r_retpln.htm

    This section of the Retirement System Group’s site briefly reviews the benefits of various retirement plans, such as IRAs and defined benefit, contribution and nonqualified plans.

    Pension Plan Tools
    www.psca.org

    Magazines, newsletters, research, statistics and survey information, as well as a glossary of terms, are available at the Profit Sharing and 401(k) Advocate site. Frequently asked questions about benefit plans, as well as historical data on the growth of 401(k) eligibility and defined contribution plan participation and assets from the late 1970s to 1999, are also included.

    Archived Articles and Alerts
    www.rbvdnr.com/eb/articles.htm

    The law firm Reinhart, Boerner, Van Deuren, Norris and Rieselbach offers users information on various topics at this site. It features articles such as “FDIC Regulation Alert—Restrictions on Golden Parachutes and Indemnification Agreements” and “How ‘GATT’ Affects Your Retirement Plans.” The Employee Benefits section features an alert comparing the Treasury’s 2001 and 2000 limits for various types of benefit plans.

    SEC

    U.S. Securities & Exchange Commission
    The SEC's Ten Questions to Ask About Any Investment Opportunity
    EDGAR Database
    EDGARSCAN from PriceWaterhouseCoopers
    Free EDGAR

    Guides from the SEC about calculating the cost of a mutual fund
    http://www.sec.gov/mfcc/mfcc-int.htm  

    from the Scout Report on May 17, 2001

     

    FundAlarm http://www.fundalarm.com/ 

    While most mutual fund information Websites will tell you when you should buy mutual funds, FundAlarm, created and maintained by Roy Weitz, CPA, offers news and information that will help users make informed decisions about selling their mutual finds. Along with a database of nearly 4,000 data tables of stocks and balanced mutual finds, FundAlarm also provides three lists of mutual funds: those that should be sold right away, those to keep, and mutual funds that are merely strong candidates for

     

    Taxation

    How to Download IRS Forms from the IRS ---
    https://www.irs.gov/pub/irs-pdf/?C=M;O=D

    2019 Tax Software Survey ---
    https://www.journalofaccountancy.com/issues/2019/sep/2019-tax-software-survey.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=12Sep2019

    How CPA's Rate Their Tax Software in 2017 ---
    http://www.thetaxadviser.com/issues/2017/aug/2017-tax-software-survey.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=01Aug2017

    . . .

    Of more than 3,500 responses to this year's survey, seven major tax software products accounted for about 92% of users, with three products having the highest percentages of users: UltraTax CS, ProSystem fx, and Lacerte. Users of Drake software gave it the highest overall rating and ranked it highly in several performance categories, although they rated it below average for integration with other accounting software and ease of importing data. In general, CCH Axcess Tax and ProSystem fx predominated among the largest practices represented, while Drake and ATX were most often used by sole practitioners and small practices.

    A sharply lower percentage of respondents than a year earlier reported having clients whose identities had been stolen by thieves filing fraudulent refund claims. In the 2016 survey, nearly 59% of respondents had encountered tax ID theft in the preceding tax season; this year, that percentage was 43%. Moreover, those CPAs who did see ID theft this year said it affected a smaller percentage of their clients, and they reported lower levels of difficulty in resolving the problem with the IRS.

    As in past years, price posed the sharpest divide among products in terms of most- and least-liked aspects. Price was most often picked as the best-liked feature of ATX and Drake, while it was most often the least-liked feature of UltraTax CS, Lacerte, ProSystem fx, CCH Axcess Tax, and ProSeries.

    Continued in article

     Bob Jensen's tax helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

    The Tax Advisor is Free on the Web
    http://www.thetaxadviser.com/  
     

    Thank you Scott Bonacker for the heads up.

    Warning:  Although tax reform is unlikely over the next four years, miracles do happen. Some of the strategies suggested in the links below may be less advisable under serious revisions of our nation's tax law. Always stay up to date on tax reform. Even if there are no broad reforms, selected reforms are possible. For example, the advantage of not realizing long-term capital gains until after you die might be revised even if there are no other remarkable changes in the tax code.

    The really-needed revision of the tax code for capital gains is to adjust these gains for inflation. Doing so, however, doesn't have a snowball's chance in Hell.

    When I forward tax advice links like the one below it does not mean that I agree with every piece of the advice or that I hold myself out as being a tax expert. Although I taught accounting for 40 years, I never taught tax accounting. I rely on tax software like Turbo Tax as much or more than you rely on such software.

    If you really need help with your taxes, first visit the truly great IRS Website at www.irs.gov
    If that does not do the job seek out a genuine tax expert for advice. Remember that all people who charge you for doing tax returns are not necessarily experts on tax planning and strategy. All tax experts are not equal any more than all physicians, lawyers, or college professors are all equal.

    "4 Tax Breaks Every College Student Should Know About," by Mandi Woodruff, Business Insider, October 25, 2013 ---
    http://www.businessinsider.com/college-student-tax-breaks-2013-10

    Technical Tax Course Materials from Lexis-Nexus
    Graduate Tax Series --- http://taxprof.typepad.com/files/graduate-tax-series-description-082911.pdf

    Academic Versus Political Reporting of Research:  Percentage Columns Versus Per Capita Columns ---
    http://www.cs.trinity.edu/~rjensen/temp/TaxAirlineSeatCase.htm
    by Bob Jensen, April 3, 2013

    From the IRS
    Beware of Bogus IRS Emails  ---
    http://www.irs.gov/uac/Newsroom/Beware-of-Bogus-IRS-Emails

    Bob Jensen's threads on fraud reporting ---
    http://faculty.trinity.edu/rjensen/FraudReporting.htm

    The Tax Policy Center has a good online tool for making before-and-after estimations ---
    http://calculator2.taxpolicycenter.org/index.cfm

    The 8 biggest mistakes taxpayers make, from the accountants who know best ---
    http://www.businessinsider.com/the-8-biggest-mistakes-taxpayers-make-from-the-accountants-who-know-best-2016-4


    The MileIQ Gadget from Microsoft Can Save Thousands of Tax Dollars for a Business Traveler (or lead to greater reimbursements from employers) ---
    Try it for free --- https://www.mileiq.com/


    What tax software do the pros prefer in 2015?
    "2015 tax software survey:   CPAs rate the technical merits of one of their most critical tools for surviving tax season," by Paul Bonner, Journal of Accountancy, September 1, 2015
    http://www.journalofaccountancy.com/issues/2015/sep/2015-tax-software-survey.html#sthash.Vp5a0Hyb.dpuf

    Jensen Comment
    I now despise TurboTax for two reasons.

    Firstly, in 2015 TurboTax unethically removed some features from the package I use every year and then belatedly made me pay $30 extra for those features. Public outrage made them refund $25 of that extra fee, but there was all sorts of confusion and time wasted on the part of us taxpayers using TurboTax.

    Secondly, I think TurboTax handled its security data breach badly in the aftermath of losing Social Security numbers and IRS Pin numbers for those of us who filed electronically in 2014. They should have been more helpful to customers that they harmed.

    Two things have changed in my personal tax life.
    One is that I will never buy TurboTax again (my way of protesting the bad ethics of TurboTax). And secondly I will probably never file electronically until the IRS finally figures out a way of not letting ID thieves file tax returns using my name, my Social Security Number, and my IRS Pin number. It's true that the IRS takes the loss instead of me, but I had to be smart enough to figure out that my ID was stolen from TurboTax and that somebody (probably in Russia) filed a tax return in my name. It's a good thing I figured it out and filed a second return using the U.S, Post Office.


    TurboTax --- http://en.wikipedia.org/wiki/TurboTax

    TaxACT --- http://en.wikipedia.org/wiki/TaxACT

     

    In the past I used TaxACT until 2010 when Wal-Mart only had TurboTax available. So I switched to TurboTax in 2010 and used it until next year when I will go back to TaxACT. Note that TaxACT will read all of your prior TurboTax returns and vice versa.

    Here's why I will never ever use TurboTax again.

    1. On January 10. 2015 I went to Wal-Mart as usual to buy by TurboTax Deluxe disk for $49. I prefer to own the disk to make it easier in future years if I have a tax audit and a computer crash. I have backup hard copy returns, the installation disk, and backup copies of my returns on several hard drives.

       
    2. I January 24 when I installed TurboTax and the software works fine as long as I do not try to install updates. The updates corrupt the program both my main computers. So I decided that this year I will simply not install updates.

       
    3. On January 24 things were going smoothly using TurboTax Deluxe until I tried to install a small amount of bond sales for 2013. A message popped up from the CEO of TurboTax informing me that his company did a bad thing this year to TurboTax Deduct. If I wanted to file my tax return I would have to pay an added $30 to his company. Then when I file my tax return using TurboTax he will send me a $25. I guess he's still trying to screw me out of $5 plus all the time I lost sending an added $30 in extortion money to TurboTax. He shoud be refunding me the $35 for the added time and aggrevation.
       
    4. After I put out the refund information on a couple of listservs I got a few horror stories about frustrations of others with TurboTax in the past. The most egregious frustration is that sometimes, purportedly, TurboTax will tell you that your electronic return has been accepted by the IRS when in fact it was not received by the IRS. Horrors!

       
    5. Thus I'm shifting to TaxACT for good. So long TurboTax. This is not the first year in which you screwed your customers.

     

    The bait and switch (failed) strategies of Turbo Tax in 2013 and 2014 Explained
    http://www.businessweek.com/articles/2015-01-23/the-cheapest-tax-prep-software-for-2015-hint-it-s-not-turbotax-?campaign_id=DN012315

    "TurboTax Apologizes for Bait-and-Switch, Provides $25 Refunds to Customers," by Paul Caron, TaxProf Blog, January 23, 2015 ---  http://taxprof.typepad.com/taxprof_blog/2015/01/turbotax-apologizes-for-bait-and-switch.html

    "TurboTax Customers Angry Over Change In Tax Return Software," CBS News via Paul Caron, TaxProf Blog, January 14, 2015 ---
    http://taxprof.typepad.com/taxprof_blog/2015/01/turbotax-customers-angry-.html

    Changes to the popular tax program, TurboTax, has some customers mad.

    “People are just livid. They feel deceived,” says consumer advocate Edgar Dworsky. “They feel they’ve used this product for so many years, they’ve trusted it, and now they’re being sandbagged.” Dworsky is a TurboTax customer unhappy after Intuit, the maker of TurboTax, changed the deluxe version of the popular tax preparation software product.

    The changes require customers to upgrade to more expensive versions if reporting investment, self-employment, or rental income — costing an extra $30 to $40 — and surprising many long-time Turbo customers. “Imagine their surprise when they get halfway through doing their taxes and there is a roadblock in the program that says you have to upgrade,” added Dworsky.

    “It can be viewed as a bait and switch, yes,” Prof. Bryan Menk told KDKA money editor Jon Delano on Tuesday, “because people were not accustomed to this limitation in a prior year.” Menk teaches taxation at Duquesne University and uses TurboTax himself.

    Jensen Comment
    Sounds to me like it's time for another boycott.

    Note that H&R Block software can read your prior-year TurboTax return and vice versa if you want to change software.

    2008 TurboTax Boycott
    Tax Software Boycott of TurboTax Begins:  I'll Bet You Can't Find the Hidden Fees Disclosed on the TurboTax Website
    Note that this was back in the time when most taxpayers mailed in hard copy printouts of their tax returns. It was common to by one copy of TurboTax and then file returns for other members of the family such as when a married couple filed separate returns.

    Users are not complaining about the functionality of TurboTax. The problem, as they see it, is with pricing changes. For the first time, TurboTax producer Intuit started charging users an additional $9.95 for each additional return whether they print or e-file. Also, readers complain that the 2008 software costs more at checkout, jumping from $44.95 to $59.95. (However, when AccountingWEB went on Amazon, the software could be had at the discounted price of $54.99.) . . . One reviewer seemed to be issuing a battle cry by writing, "Time to start the boycott." Another reviewer had criticism of a more personal nature: "You should fire the person who came up with pay to print!" Of the 182 product reviews as of the evening of December 9, 2008, 171 of them were one-star reviews and only five were five-stars, the highest rating. Of the five five-star ratings, one user named Fernando Ortega said TurboTax is still the best, pointing out that he doesn't have to enter all of his personal information and previous returns manually.
    "TurboTax turmoil: Online reviews pan the top selling software," AccountingWeb, December 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=106620

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    Student Debt --- https://en.wikipedia.org/wiki/Student_debt

    Student Debt Forgiveness. like nearly all debt forgiveness, is taxable income
    "There's a big problem with the government's offer to 'forgive' your mountain of student-loan debt," by Jonathan Garber and Andy Kiersz, Business Insider, August 11, 2015 ---
    http://www.businessinsider.com/problem-government-forgive-student-loan-debt-2015-8 

    . . .

    The loan-forgiveness repayment plans are helpful, but it's not that simple.

    Two of the more popular ones are Public Service Loan Forgiveness and Income-Based Repayment.

    Public Service Loan Forgiveness allows those working in the public sector to apply to have their loans forgiven after 10 years of service, which equates to 120 payments.

    For those who don't work in the public sector, the government created a few income-driven plans. These allow borrowers to pay between 10% and 20% of their discretionary income toward their student loans, which will then be forgiven in 20 to 25 years.

    However, there is one big problem. The loan balance at the time of forgiveness is treated as income and taxed as such. Depending on the interest rate of the loan (some Federal loans have interest of more than 7%), the income-based payments might not cover the interest that is accumulating on the debt, which would cause the payoff amount of the loan to snowball over those 25 years.

    Also, if someone is making income-based payments, chances are they are doing so because they cannot afford to make their regular loan payments. If that's the case, what makes the government think borrowers will be able to foot the massive tax bill at the end of 20 or 25 years?

    The government has a handy loan-repayment calculator that lets borrowers see what their payments will look like under different repayment programs.

    We made a hypothetical situation where a new borrower took out $100,000 in direct subsidized loans at a conservative 4% annual interest rate, has an annual income of $45,000, is single, lives in New York, and has no children.

    Under a standard repayment plan, our hypothetical borrower would have monthly payments of $1,012 for 10 years. Under the Income-Based Repayment program for new borrowers, our recent graduate would have much lower monthly payments over 20 years, ranging from about $228 to $719, as her income increases over time:


    2016 States in the USA With the Highest and Lowest Tax Rates ---
    https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416/

    Overall, Illinois has the highest tax rates, followed by Nebraska, Wisconsin, Connecticut, Rhode Island, and New York, according to an analysis by WalletHub. Notably, tax rates are about 10.56% higher in blue states than in red states.

    New York has the highest cigarette excise tax at $4.35 per pack, while Missouri has the lowest at $0.17. Pennsylvania has the highest gas tax at $0.5040 per gallon, while Alaska has the lowest at $0.1225.

    Jensen Comment
    Some of those most taxing states were also subject to state-worker pension frauds and enormous pension underfunding, notably Illinois, Connecticut, and Rhode Island.

    Note the far right column that provides an adjusted cost of living index. California, Oregon, and Washington DC, for example, do fairly well on tax rates but come out horribly on the adjusted cost of living index. There are not many surprises on the high cost of living where the worst states are New York, Connecticut, Hawaii, Rhode Island, and New Jersey.


    2015 as Reported by the Tax Foundation:  The Ten Worst States for Property Taxes ---
    http://www.cheatsheet.com/business/the-10-worst-states-for-property-taxes.html/?a=viewall

    1. New Jersey
      Taxes as percentage of home value: 1.89%
      •Median home value: $348,300
      •Rank based on percentage of income: 1

       
    2. New Hampshire
      Taxes as percentage of home value: 1.86%
      •Median home value: $249,700
      •Rank based on percentage of income: 2

       
    3. Texas
      Taxes as percentage of home value: 1.86%
       •Median home value: $249,700
      •Rank based on percentage of income: 2

       
    4. Wisconsin
      Taxes as percentage of home value: 1.76%
      •Median home value: $170,800
      •Rank based on percentage of income: 8

       
    5. Nebraska
      Taxes as percentage of home value: 1.70%
      •Median home value: $123,300
      •Rank based on percentage of income: 14

       
    6. Illinois
      Taxes as percentage of home value:
      1.73% •Median home value: $202,200
      •Rank based on percentage of income: 5

       
    7. Connecticut
      Taxes as percentage of home value: 1.63%
      •Median home value: $291,200
      •Rank based on percentage of income: 4

       
    8. Michigan
      Taxes as percentage of home value: 1.62%
      •Median home value: $132,200
       •Rank based on percentage of income: 10

       
    9. Vermont
      Taxes as percentage of home value: 1.62%
      •Median home value: $132,200
      •Rank based on percentage of income: 10

       
    10. North Dakota
      Taxes as percentage of home value: 1.42%
      •Median home value: $116,800
      •Rank based on percentage of income:

    Jensen Comment
    This is partly an illustration of how to mislead with statistics, because the property taxes are not comparable in all respects among the 50 states. For example, all states do not have the same homestead exemptions. And not all states have the same conditions. The big exception is California that has Proposition 13 that is fully applicable to California and partly applicable to some other states in terms of property tax relief in setting limitations on tax valuations of property ---
    https://en.wikipedia.org/wiki/California_Proposition_13_(1978)

    Some states provide relief to senior citizens that is partly an attempt to keep them from leaving the state in retirement. For example, in Texas senior citizens have a something like Proposition 13 for the school district portion of property tax bills but not the same tax valuation freeze for other items in the property tax billings.

    Some states are react more quickly to changes in property tax values. For example, when I owned a home in Bexar County, Texas the property tax valuations were almost continuously updated. Now that I live in New Hampshire it seems like changes in valuation are almost rare events that lead to a lot of tax valuation unfairness. Two homeowners living side by side with virtually identical homes may have different tax valuations based upon how long they owned their homes. For example, a home owner living in a home for 30 years may have a much lower tax valuation than an owner who recently purchased the home.

    Probably the most misleading aspect of the above state comparisons is the failure to also include other items of state taxation that also clobber home owners such as state income taxes and sales ttaxes. For example, home owners in most of the above states also get clobbered with those other state taxes but not New Hampshire and North Dakota. Texas has a wicked sales tax but not a state income tax.

     


    How to Mislead With Statistics

    America's Best and Worst States for Taxes (2019) ---
    https://finance.townhall.com/columnists/danieljmitchell/2019/10/24/americas-best-and-worst-states-for-taxes-n2555297?utm_source=thdaily&utm_medium=email&utm_campaign=nl&bcid=b16c6f948f297f77432f990d4411617f

    The combining of "taxes" can be misleading. For example, compare the above ranking with the following ranking.

    01 New Jersey (highest taxes)
    02 New York
    03 California
    04 Connecticut
    05 Arkansas
    06 Minnesota
    07 Vermont
    08 Maryland
    09 Iowa
    10 Louisiana

    . . .

    41 Indiana
    42 Utah
    43 Oregon
    44 Nevada
    45 New Hampshire
    46 Montana
    47 Florida
    48 Alaska
    49 South Dakota
    50 Wyoming (lowest taxes)

    Jensen Comment
    There's no one state that's best or worst on all types of taxes. And even with respect to one tax, the outcomes can be misleading. Take property taxes. California is horrible for recent home buyers, but property taxes are relatively low for long-time home owners because of Proposition 13 ---
     https://en.wikipedia.org/wiki/1978_California_Proposition_13

    And states that appear to be best in terms of all taxes in the above ranking are among the worst for some types of business taxes. And some taxes that are the highest taxation states often make the best deals for attracting and keeping businesses with tax breaks and subsidies --- Exhibit A is New York.;Exhibit B is New Jersey; and Exhibit C is Illinois.

    But the biggest problem lies in how multiple tax burdens are aggregated across different taxpayers. Compare the ranks above with the ranks below.

    States with the highest, lowest state and local tax collections ---
    https://taxfoundation.org/state-local-tax-collections-per-capita-2019/?fbclid=IwAR3zpltt_AMIquAps_TtHDDUk482ovmEqO9sU1jUu3GQX32Ttp-g1p4Amrs

    01 New York (highest taxes)
    02 Connecticut
    03 New Jersey
    04 North Dakota
    05 Hawaii
    06 Massachusetts
    07 Minnesota
    08 California
    09 Maryland
    10 Vermont

    . . .

    41 Missouri
    42 Georgia
    43 Mississippi
    44 Arizona
    45 Idaho
    46 Florida
    47 Oklahoma
    48 South Carolina
    49 Tennessee
    50 Alabama (lowest taxes)

    Jensen Comment
    This is a classic case of ranking based upon averages that ignore sampling distributions (particularly skewness), standard deviations, and outliers.

    For example, Alabama supposedly offers the best tax deal, but not necessarily if you make over $250,000 per year. Alabama has all types of taxes, including an income tax. If you make over $250,000 per year you're probably better off in a state without an income tax like Nevada or Florida. The problem is that Alabama has a skewed distribution with lots of low income people who pay little or no income tax. In comparison New York has a much higher proportion of very high income people who pay lots and lots of income tax.

    Wealthy people are fleeing high income tax states like New York and Vermont, but not many are choosing to relocate in Alabama because Alabama supposedly, according to the above article, offers the best tax deal among all 50 states. That alone should tell you something is wrong with the above ranking of states.

    Taxation was a factor in my decision about where to retire, especially when comparing high tax states like California, Wisconsin, Vermont, and Maine with with relatively low taxing New Hampshire (that has no sales tax or income tax).

    It's also hard to compare some types of taxes. California, for example, is exceedingly difficult to evaluate in terms of property taxes without knowing the context of the comparisons. If you've owned a big house in Palo Alto, California for 40 years property taxes are not a killer because of Proposition 13 that locks you into paying less than $25,000 per year. However, if you sell your house the buyer may have to pay way over $250,000 per year in property taxes on that same house.

    Even outside California property taxes are much different than income taxes and sales taxes. For example, I pay relatively high property taxes on my four-acre home site in New Hampshire. However, I hope to get some of those taxes returned if and when I elect to sell the property. However, there would be no return of sales and state income taxes if New Hampshire had taxes on sales and incomes. This is something I considered when I chose to retire in New Hampshire. But. given my level of retirement income I would never consider buying a house in Palo Alto after retiring from my job in Texas. I could not afford to pay property taxes of $250,000+ per year even if one day in the future some of those taxes were returned in the selling price of my Palo Alto house.

     


    States Differ on Retiree Tax Burden ---
    http://www.kiplinger.com/article/retirement/T037-C000-S004-states-differ-on-retiree-tax-burden.html
    Especially note the graph

    Questions in Terms of Retiree Taxation

    1. Among the three Pacific states of the west, what are the two worst states to retire?
      (California and Oregon)
       
    2. Among the non-Pacific western states, what is the worst state to retire?
      (Montana)
       
    3. Among the mid-western states, what are the two worst states to retire?
      (South Dakota and Minnesota)
       
    4. Among the eastern states, what are the four worst states to retire?
      (New York, Vermont, Massachusetts, and New Jersey)

    About 15 percent of the 561,000 pensioners in the California Public Employees’ Retirement System live their golden years outside the Golden State, according to a first-of-its-kind analysis of fund data by The Sacramento Bee. The vast majority have flocked to low-tax or no-tax states, creating a veritable river of cash that flows out of California and into cities such as Las Vegas; Reno; Tucson, Ariz.; and Grants Pass, Ore.
    http://www.sacbee.com/news/politics-government/the-state-worker/article20702106.html#storylink=cpy

    California is one of the five least friendly retirement states in terms of taxation
    Among the 41 states with a broad - based income tax, 3 6 offer exclusions for some or all specifically identified state or federal pension income or both , a retirement income exclusion , or a tax credit targeted at the elderly. The District of Columbia provides an exclusion for District and federal pension income . The five states that offer none of these are California, Nebraska, North Dakota, Rhode Island and Vermont. Practice regarding Social Security income varies somewhat from these generalizations. Federal law preempts t he ability of states to tax income from Railroad Retirement.
    http://www.ncsl.org/documents/fiscal/StateTaxOnPensions2015update.pdf


    Question
    What will make a healthy tennis star refuse to play in selected major tournaments and why?

    "How Tennis Stars Handle the Tax Man’s Topspin:  Players like Nadal and the Williams sisters show excellent footwork when protecting their income.," by Allysia Finley, The Wall Street Journal, September 27, 2015 ---
    http://www.wsj.com/articles/allysia-finley-how-tennis-stars-handle-the-tax-mans-topspin-1422401926?tesla=y

    In an interview at the Australian Open last week, Swiss tennis virtuoso Roger Federer was lobbed a question about Switzerland’s recent decision to unpeg its currency from the euro and let the franc float. “Does it mean I’ve got to win now?” the tournament’s 33-year-old second seed joshed.

    The Swiss central bank’s recent gambit jolted global markets and currency traders, but as Mr. Federer suggested, a rising franc will also take a bite out of his winnings. In the past two weeks, the Swiss franc has appreciated by about 15% relative to the Australian dollar. Mr. Federer was bumped Friday in the third round and will take home 60,000 Australian dollars ($47,599) in prize money, which will now be worth about 8,000 francs ($8,868) less. Had he won the championship, the Swiss currency spike would have cost him 400,000 francs ($443,298).

    Mr. Federer and his fourth-seeded compatriot Stan Wawrinka, who won his fourth-round match Monday, would be taking even larger blows had not tournament officials increased the prize money earlier this month to compensate for the falling Australian dollar. French Open organizers may have to do the same to account for a weakening euro.

    As sport regulators understand, tennis players respond to economic incentives and often act as strategically off the court as on. For the past three years Spain’s Rafael Nadal (eliminated in the Australian Open on Monday) has bowed out of England’s annual Queen’s Club tournament, traditionally a Wimbledon warm-up, because the U.K. charges foreign athletes a prorated tax on their world-wide income (including endorsements). The more tournaments he plays in Britain, the more he owes Her Majesty’s Government.

    “The truth is, in the U.K. you have a big regime for tax, it’s not about the money for playing. They take from the sponsors, from Babolat, from Nike and from my watches,” Mr. Nadal explained in 2011 to the Times of London. He endorses a line of luxury timepieces by Richard Mille. “This is very difficult. I am playing in the U.K. and losing money.”

    The top five French players on the men’s circuit— Jo-Wilfried Tsonga, Gael Monfils, Gilles Simon, Julien Benneteau and Richard Gasquet, as well as Germany’s Philipp Kohlschreiber, all claim residence in Switzerland, ostensibly to avoid paying their home countries’ punitive 45% top personal income-tax rates (not including surcharges or social-security contributions).

    Many Swiss cantons assess taxes on the living expenses of foreign high-rollers (typically fives times the market rate for renting out their residence) rather than on their income. As a result, Switzerland has become a tax haven for thousands of wealthy Europeans. Maybe New Jersey Gov. Chris Christie should consider applying the Swiss tax model in the Garden State. Jersey City might become the Geneva for New York’s professional athletes.

    Yet the most popular haven for tennis players is the principality of Monaco, which doesn’t tax foreigners’ world-wide income. (French athletes choose Switzerland because la République Française taxes its citizens who live in Monaco.) Swedish tennis legends Bjorn Borg and Mats Wilander escaped to Monte Carlo during their primes in the 1970s and ’80s to dodge their home country’s 90% top marginal rate, which has since fallen to 57%. In 2002 Germany charged six-time Grand Slam title-winner Boris Becker with tax evasion for falsely claiming Monaco as his primary residence.

    Today, Monaco is the putative home of many of the world’s top-ranked men and women players. They include Serbia’s Novak Djokovic (1), the Czech Republic’s Petra Kvitova (4), Tomas Berdych (7) and Lucie Safarova (16); Canada’s Milos Raonic (8); Denmark’s Caroline Wozniacki (8); Bulgaria’s Grigor Dimitrov (11); and Ukraine’s Alexandr Dolgopolov (23). Players who hail from former communist countries are especially keen, it seems, on keeping their hard-earned money.

    The U.S. has its own Monaco: no-income-tax Florida. It’s no coincidence that America’s top-ranked players Serena (1) and Venus Williams (18) and John Isner (21), as well as Russia’s Maria Sharapova (2) and Japan’s Kei Nishikori (5) live in the Sunshine State. So do twins Mike and Bob Bryan, who have won 16 Grand Slam doubles titles. Like the Williamses, they come from California, where the 13.3% state income-tax rate is the nation’s highest.

    Jensen Question
    What happened to the proposed legislation, possibly in Maryland, to tax out-of-state income for out-of-state residents?
    http://marylandreporter.com/2014/10/02/supreme-court-to-hear-case-on-right-of-maryland-to-tax-out-of-state-income/

     


    Not Necessarily "All" --- But This is a Good Listing
    "Here Are All The Things You Can't Deduct On Your Taxes," Robert E. Flach, Business Insider, February 20, 2014 ---
    http://www.businessinsider.com/non-deductable-items-taxes-2014-2


    10 Often Overlooked Tax Breaks That Could Save You Big-Time ---
    http://www.businessinsider.com/overlooked-tax-breaks-2014-2

    Top 25 Overlooked Tax Deductions

     You wouldn’t believe the number of deductions that are overlooked each year, by taxpayers just like you. That’s right; these money-saving deductions are missed by countless income earners every tax season. Read on and arm yourself to take full advantage of these deductions and get back what you deserve:

     

    1. Student loan interest 
    2. Self-employment tax paid  (50% is deductible)
    3. Health insurance premiums for some self-employed persons 
    4. Penalty on early withdrawal of savings 
    5. Alimony paid (not including child support) 
    6. Medical transportation costs
    7. Nursing home medical care expenses 
    8. Certain medical aids
    9. Hearing aids, eye glasses, and contact lenses 
    10. Some hospital fees  
    11. Medical equipment for disabled or handicapped individuals 
    12. Certain life-care fees paid to retirement home
    13. Alcohol, drug abuse treatment, and certain stop-smoking treatment costs
    14. Special school costs for mentally or physically handicapped individuals 
    15. Nursing service costs
    16. Prior year State income taxes
    17. Estimated state taxes for the last quarter of the year
    18. Personal property taxes on cars, boats, etc.
    19. Taxes paid to a foreign government 
    20. Mandatory contributions to state disability funds 
    21. Points paid on mortgage or refinancing 
    22. Property donated to a recognized charity 
    23. Cash contributions to a recognized charity 
    24. Mileage costs for charitable activities
    25. Qualified casualty and theft losses

    "Most tax-friendly states for retirees," by Robert Powell, Yahoo Finance, January 31, 2014 ---
    http://finance.yahoo.com/news/most-tax-friendly-states-for-retirees-163509985.html


    Teaching Case on How New Health-Care Rules Affect Your 2014 Tax Return
    From The Wall Street Journal Accounting Weekly Review on January 16, 2015

    How New Health-Care Rules Affect Your 2014 Tax Return
    by: Maria Armental
    Jan 09, 2015
    Click here to view the full article on WSJ.com
     

    TOPICS: ACA, Individual Taxation

    SUMMARY: For 2014, there are only two important federal income-tax changes for individual taxpayers, beyond the usual inflation-indexing of tax-rate brackets and various other parameters. Both have to do with the Affordable Care Act, and both may be complicated enough to inspire many people to engage the services of a professional tax preparer.

    CLASSROOM APPLICATION: This article offers a good explanation of tax penalties under the Affordable Care Act.

    QUESTIONS: 
    1. (Introductory) What is the Affordable Care Act? Why are individual tax returns affected by the ACA?

    2. (Advanced) What is minimum essential coverage? What are the penalties for failure to carry that coverage?

    3. (Advanced) Who should be concerned about the penalty? How is the penalty calculated? How is it reported and paid?

    4. (Advanced) What is the premium assistance tax credit? Who is eligible for the credit? What are the options for disbursement of this credit?

    5. (Advanced) What is a refundable credit? Why are some credits refundable and others are not?
     

    Reviewed By: Linda Christiansen, Indiana University Southeast

    "How New Health-Care Rules Affect Your 2014 Tax Return," by Maria Armental, The Wall Street Journal, January 9, 2015 ---
    http://blogs.wsj.com/totalreturn/2015/01/09/how-new-health-care-rules-affect-your-2014-tax-return/?mod=djem_jiewr_AC_domainid

    Tax forms for 2014—such as W-2s and 1099s—will soon be arriving in the mail, which means it isn’t too early to start thinking about putting together your Form 1040 for last year.

    For 2014, there are only two important federal income-tax changes for individual taxpayers, beyond the usual inflation-indexing of tax-rate brackets and various other parameters. Both have to do with the Affordable Care Act, also referred to as “Obamacare”—and both may be complicated enough to inspire many people to engage the services of a professional tax preparer.

    Here’s what taxpayers need to know. Penalty for failure to carry “minimum essential coverage”

    The health-care overhaul established a new federal income-tax penalty for the failure to carry what it deems minimum essential coverage. Last year was the introductory year for the penalty, which can potentially be owed for any month when qualifying health coverage wasn’t in force. (In Internal Revenue Service speak, the penalty is called a “shared responsibility payment.”)

    You don’t have to worry about the penalty if you—and all members of your family, if applicable—had qualifying coverage for all of last year. In this case, simply check the box on line 61 of Form 1040, and you’re done.

    If you didn’t have qualifying coverage for the entire year, the first task is to determine if you are exempt from the penalty. For that, see the instructions to new IRS Form 8965 Health Coverage Exemptions (and instructions for figuring your shared responsibility payment). If you were exempt for last year, file Form 8965 with your 2014 Form 1040 to prove it.

    For additional information on exemptions, see IRS Publication 5187, Health Care Law: What’s New for Individuals and Families. (All IRS forms and publications discussed in this article can be found at www.irs.gov.)

    If you weren’t exempt, the next step is to calculate the penalty amount that you owe using the work sheet in the instructions to Form 8965. Enter the penalty amount on line 61 of your return. For 2014, the penalty can range from $95 or less to a good deal more for higher-income folks. Also be aware that the penalty for 2015 and beyond can be much higher than the penalty for last year. Premium assistance tax credit

    The other Affordable Care Act-related change for 2014 was the debut of the so-called premium assistance tax credit, or PTC. It is available to eligible individuals and families who obtain health coverage in a qualifying plan by enrolling through a state-run insurance exchange or through the federal exchange (www.healthcare.gov).

    In general, you are eligible for the credit if your household income was between 100% and 400% of the federal poverty line and you didn’t have access to affordable employer-sponsored coverage last year. The allowable credit amount can vary widely depending on your specific circumstances. (For additional information on the PTC, see IRS Publication 974.)

    The PTC can be advanced directly to the insurance company to lower your monthly premiums, or it can be claimed when you file your return. You may not know the exact amount of your allowable PTC for last year until you actually file your 2014 Form 1040. Calculate the PTC using the new IRS Form 8962.

    If advance PTC payments were made on your behalf last year, the amount of those payments should be reported by the exchange to you on the new Form 1095-A, Health Insurance Marketplace Statement. You should receive Form 1095-A by no later than early February. Then calculate the difference between your advance PTC payments (if any) and the PTC amount you are actually entitled to claim on Form 8962. Enter any excess PTC amount on line 46 of Form 1040 and pay it when you file.

    The PTC is a “refundable credit.” That means you can collect the full allowable credit amount even when it exceeds your federal income tax liability for last year. Specifically, the PTC amount is first used to reduce your federal income tax bill. After your bill has been reduced to zero, any remaining PTC can be either refunded to you in cash or used to make estimated tax payments for the 2015 tax year.

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

    Bob Jensen's threads on the ACA legislation ---
    http://faculty.trinity.edu/rjensen/Health.htm


    Teaching Case on Home Mortgage Taxation and Planning
    From The Wall Street Journal Accounting Weekly Review on November 7, 2014

    Homeowners: Fall Planning Brings Spring Tax Savings
    by: Anya Martin
    Nov 30, 2014
    Click here to view the full article on WSJ.com
     

    TOPICS: Individual Taxation, Mortgage Deduction

    SUMMARY: This article discusses the rules for homeowners to deduct mortgage interest and other expenses. Most homeowners who itemize their taxes can deduct the interest paid on their first and second mortgages of up to $1.1 million in debt. That total reflects up to $1 million for home loans and another $100,000 for home-equity loans. Some homeowners don't realize they can deduct the mortgage interest paid on second homes. That second home can even be a boat, mobile home or any structure, as long as it has plumbing, such as toilets and showers. There are other deductions and restrictions about which taxpayers should be knowledgeable.

    CLASSROOM APPLICATION: This is a good article to use to flesh out the rules surrounding home mortgage deductions.

    QUESTIONS: 
    1. (Introductory) What is a home mortgage? What are the limits on deduction of mortgage interest?

    2. (Advanced) What are the rules regarding deduction of mortgage interest for a second home? What are the limitations? What must taxpayers know about this type of deduction? What are the common mistakes?

    3. (Advanced) What other home expenses are deductible? What are the rules shared in the article?

    4. (Advanced) What are the tax laws regarding renting of a second home? How can taxpayers structure ownership, financing, and rental income of a second home in order to get the best tax advantages?

    5. (Advanced) What is the Pease Limitation? What does it limit? Which taxpayers should be careful to plan for this limitation?
     

    Reviewed By: Linda Christiansen, Indiana University Southeast

    "Homeowners: Fall Planning Brings Spring Tax Savings," by Anya Martin, The Wall Street Journal, November 30, 2014 ---
    http://online.wsj.com/articles/homeowners-fall-planning-brings-spring-tax-savings-1414597215?mod=djem_jiewr_AC_domainid

    What homeowners can do now to prepare for tax time. Rules for deducting mortgage interest and itemizing other expenses to lower the tax bill.

    Before the first snowflakes of winter, homeowners should think about spring savings. Steps taken today could reduce the tax hit on April 15.

    Most homeowners who itemize their taxes can deduct the interest paid on their first and second mortgages of up to $1.1 million in debt. That total reflects up to $1 million for home loans and another $100,000 for home-equity loans.

    The deductions add up for homeowners with jumbo mortgages—those above $417,000 in most places and $625,500 in high-price areas. A hypothetical example looks at a couple in the 30% tax bracket who files jointly. Assuming their income is under $300,000, the $24,000 they paid toward mortgage interest could see a benefit of up to $7,200 in tax savings, according to Mary Canning, dean emeritus and professor at Golden Gate University’s Braden School of Taxation and Accounting in San Francisco.

    Some homeowners don’t realize they can deduct the mortgage interest paid on second homes, Ms. Canning says. Some of her clients, many of whom are approaching retirement age, have paid off the mortgage on their primary home and are buying a vacation home in nearby scenic towns like Sonoma or Carmel, she adds. With the deduction, “they are finding it’s quite affordable as opposed to putting up children and their families in hotels for a vacation,” Ms. Canning says.

    That second home can even be a boat, mobile home or any structure, as long as it has plumbing, such as toilets and showers. However, an empty lot being held to build a future retirement home doesn't qualify.

    One mistake Ms. Canning often sees: Homeowners who try to deduct mortgage interest on a second home that was purchased using a margin loan on their brokerage account. “Sometimes people are surprised that they cannot make the deduction,” she says. It isn’t allowed, however, because the loan “has to be secured against the home.”

    Beyond mortgage interest, documenting other home-related expenses can help further reduce tax bills. For example, self-employed taxpayers and business owners can write off some expenses if part of their home qualifies as a home office, says Robert Winton, a partner at White Plains, N.Y.-based Citrin Cooperman & Co.

    Qualified taxpayers with second homes can also rent out the property and deduct some of their expenses, Mr. Winton adds. Deductions can include “maintenance, insurance and property taxes,” he adds.

    Because the IRS doesn't require reporting of rental income for 14 days or less a year, some business owners rent their home to their business for a meeting or retreat and then deduct the rental fee as a business expense on their company’s tax return, says Robert Walsh, founder and president of Red Bank, N.J.-based Lighthouse Financial Advisors.

    Homeowners can take a few steps now to prepare for tax time. Diagram and measure home office space and total square footage, take pictures and save utility, security and real-estate tax bills, Mr. Walsh says. “If you paint your home office, it’s a 100% expense to office,” he adds.

    Those who rent a second home regularly may wish to set up a separate bank account for rental earnings and keep a calendar for days of personal use, Mr. Walsh says.

    Of course, with interest rates so low, tax savings may not be the highest priority for many high-end home buyers. “For people who are buying a big home and have a $1.5 million mortgage and it’s your dream home, you don’t mind not [being able to deduct] all of that interest,” Mr. Walsh adds.

    Here are a few more tips to consider when looking for tax savings. Be sure to consult a tax professional or financial adviser for more specifics.

    • Income limits. The Internal Revenue Service limits and phases out Schedule A itemized deductions if the taxpayer’s adjusted gross income exceeds $250,000 for a single individual or $300,000 for a married couple, says Mr. Walsh. Common Schedule A deductions include mortgage interest, state and local income taxes, sales taxes, and medical expenses and charitable donations.

    The so-called “Pease Limitation,” named after former Rep. Donald Pease, was enacted by Congress in 1990. During the Bush tax cuts, the limits went away, but they kicked back in for 2013.

    • Equity means everything. That $100,000 home-equity loan doesn't have to be used to improve the home.

    • Status matters. Unmarried couples who file separate tax returns and own their own homes will each get up to $1.1 million. Conversely, married couples filing separate returns can only deduct mortgage interest on up to $500,000 of home debt.

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

     


    From The Wall Street Journal Accounting Weekly Review on February 23, 2013

    The New Capital-Gains Maze
    by: Laura Saunders
    Feb 16, 2013
    Click here to view the full article on WSJ.com
     

    TOPICS: Accounting, Capital Gains Tax, Investment Sales, Tax Law, Tax Planning, Taxation

    SUMMARY: Amid the political drama surrounding the "fiscal cliff" negotiations, some investors overlooked significant tax changes kicking in this year. Most notable: those on long-term capital gains, or taxable income from the sale of investments held longer than a year. These are significant increases, and they raise the value of tax deferral and careful planning. Investors who have begun to consider these issues-and many haven't-admit to being confused. Fortunately for investors, there still are ways to minimize the hit-and even dodge it. Strategies include carefully timing investment sales, making charitable donations and family gifts with assets instead of cash, and minimizing certain income. With markets approaching record highs, investors need to know them. Topics include: lowering AGI, using "air pockets", giving appreciated assets to charity, strategizing family gifts, among others.

    CLASSROOM APPLICATION: This article offers a nice update regarding the changes in the tax law and how taxpayers can plan to legally minimize taxes. You can use this article to discuss each of the individual topics discussed in the article, as well as to show students how valuable tax planning services are for many taxpayers.

    QUESTIONS: 
    1. (Introductory) What were the "fiscal cliff" negotiations? How was the law regarding the sale of investments impacted? What were the biggest changes noted in this article?

    2. (Advanced) What is adjusted gross income? What are the suggestions offered in the article regarding AGI? Why is AGI an important number for taxpayers?

    3. (Advanced) What is an "air pocket" for tax purposes? How can a taxpayer use a so-called air pocket to reduce tax liability?

    4. (Advanced) Please choose and explain three of the other tax planning ideas featured in the article. How could these ideas reduce tax liability without changing the overall effect of the underlying transaction?

    5. (Advanced) If you choose to be a tax professional, how would you market your services based on what you learned from reading this article?
     

    Reviewed By: Linda Christiansen, Indiana University Southeast

     

    "The New Capital-Gains Maze," by Laura Saunders, The Wall Street Journal, February 16, 2013 ---
    http://professional.wsj.com/article/SB10001424127887324432004578302123138871136.html?mod=djem_jiewr_AC_domainid&mg=reno64-wsj

    Chances are your capital-gains taxes are going up this year—and if you aren't careful, you could end up paying more than necessary.

    Amid the political drama surrounding the "fiscal cliff" negotiations, some investors overlooked significant tax changes kicking in this year. Most notable: those on long-term capital gains, or taxable income from the sale of investments held longer than a year.

    Under the old system, there were often only two rates: zero and 15%, depending on your income. Now, there are three tax tiers: zero, 15% and 20%. More Weekend Investor

    Value Stocks Are Hot—But Most Investors Will Burn Out Cash Shouldn't Be the Only Apple of Your Eye Is It Time to Hock the Art? Beyond Long-Term Care Thinking of 'Shorting' Treasurys? Tread Lightly

    And that isn't all. There also are three backdoor tax increases that can push your effective rate even higher—to nearly 25%.

    Experts say many taxpayers whose rate still is 15% could well owe one-third more than they would have last year. And many top-bracket taxpayers will owe nearly two-thirds more, even if their income is that high only because of a once-in-a-lifetime sale.

    "These are significant increases, and they raise the value of tax deferral and careful planning," says Vanguard Group tax expert Joel Dickson.

    Investors who have begun to consider these issues—and many haven't—admit to being confused.

    "I'm trying to figure out whether it's even worth it to have a taxable account," says Matt Reiland, a 32-year-old oil-industry financial analyst in Farmington, N.M., who now is putting away $1,000 a month.

    Fortunately for investors, there still are ways to minimize the hit—and even dodge it. Strategies include carefully timing investment sales, making charitable donations and family gifts with assets instead of cash, and minimizing certain income. With markets approaching record highs, investors need to know them.

    To be sure, long-term capital gains still retain many of the advantages investors have cherished for decades.

    Unlike wages, capital gains often can be timed. Losses on one investment can be "harvested" and used to offset gains on other investments, even in different years. Up to $3,000 of capital losses still are deductible against "ordinary" income such as wages. And whatever an investor's top rate on gains, it often is far below the rate on ordinary income, which now can be more than 41%.

    It isn't just capital gains that are affected by the tax changes. The new provisions also apply to many dividends, and some apply to other investment income, including interest. But these types of income often are more difficult to time than long-term gains.

    Where You Stand

    This year's changes divide taxpayers into three groups. For joint filers with more than $450,000 of taxable income or single filers with more than $400,000, the tax rate on long-term gains is fairly clear, if painful.

    It starts with a flat tax of 20% above those thresholds. Add to that the new "Pease limit," a complex backdoor increase tied to itemized deductions that is named after Donald Pease, a former Ohio congressman. In effect, the Pease limit raises a taxpayer's rate by about 1%, according to experts at the Tax Policy Center, a nonpartisan research group in Washington.

    Finally, there is a new 3.8% flat tax on net investment income—unless the investor has sold an actively managed business—for a total of about 25%.

    Thus, for a taxpayer already in the top bracket, the tax on a $500,000 gain could rise to about $125,000 this year from $75,000 in 2012.

    For taxpayers in the next income tier—couples with $72,500 to $450,000 of taxable income and single filers with $36,250 to $400,000—the effective rate on a gain is harder to predict.

    It begins with a 15% flat rate, but taxpayers who cross certain income thresholds owe more because of the 3.8% net investment income tax, the Pease limit and the Personal Exemption Phaseout, or PEP, a backdoor increase that limits personal exemptions.

    Here's how it could play out: Say a couple with two children in college and a third soon to go has an adjusted gross income of $220,000. They sell long-held investments to help pay tuition, realizing a $175,000 gain. Although they are in the 15% bracket for long-term gains, just as they were in 2012, they'll owe about $5,500 more than they would have last year due to the new 3.8% tax.

    This is where planning can help. If the couple can lower their income by, say, raising retirement-plan contributions or spreading the gain over several years, or both, they might reduce or avoid the extra taxes.

    "If they cut this year's gain to $50,000, the $5,500 would drop about $750," says Roberton Williams, a tax specialist at the Tax Policy Center.

    The last group are investors who owe zero tax on their long-term gains. They often avoid the 3.8% tax, the Pease limit and the Personal Exemption Phaseout as well.

    For couples filing jointly, the zero rate extends up to $72,500 ($36,250 for singles). That might sound like a low cutoff, says Silicon Valley tax strategist Stewart Karlinsky, an emeritus professor at San Jose State University, "but it includes more people than we used to think."

    That's because these investors often have large amounts of tax-free income, thanks to municipal bonds or Roth individual retirement accounts. If so, they might be able to realize gains selectively to stay within the zero rate.

    Sound complicated? It is—and the alternative minimum tax can make it worse. But careful planning is often worth the effort. Here is what to do to minimize your gains pain this year.

    Lower your adjusted gross income. An especially confusing feature of the new capital-gains regime is that while rates are tied to taxable income, for most taxpayers the backdoor increases are tied to adjusted gross income.

    That's the number at the bottom of the front page of the 1040. It doesn't include itemized deductions on Schedule A, such as mortgage interest and charitable gifts. Taxable income does.

    To avoid the backdoor taxes, it is important to minimize your adjusted gross income. Itemized deductions won't help, but other tax benefits can. Among them: deductible contributions to retirement plans such as IRAs or 401(k)s; moving expenses; business deductions or losses; capital losses; rental-property expenses; alimony payments; and health insurance premiums or health-savings-account contributions, according to Mr. Karlinsky.

    Tax-free income from municipal bonds or Roth IRAs won't swell adjusted gross income, either. Converting to a Roth IRA will, however, raise it in the year of the conversion.

    Take advantage of "air pockets." The tax code stacks income, deductions and net long-term gains in a way that shrewd taxpayers can exploit.

    Here's an example: A retired couple has $70,000 of adjusted gross income before capital gains and $30,000 of itemized deductions. (They might also have tax-free income from munis and Roth IRAs.) According to tax rules, the deductions reduce their income to about $40,000.

    This leaves them with an "air pocket" of about $33,000 before they cross from the zero rate to the 15% rate on long-term gains.

    If they take a $50,000 gain, nearly $33,000 of it won't be taxable, while the rest would be taxed at 15%. If their income remains constant for two years and they can split the gain between the two years (selling at the end of December and beginning of January, for example), the entire gain could be tax-free.

    This is a great tax-code freebie. "People in the zero bracket can even harvest gains and raise their cost basis without owing federal taxes," says Mitch Marsden, a planner at Longview Financial Advisors in Huntsville, Ala. Unlike with assets sold at a loss, there's no waiting period to repurchase assets sold at a gain.

    Of course, the value of multiyear strategies depends in part on Congress not changing the law again.

    Give appreciated assets to charity. Higher taxes raise the value of making charitable donations with appreciated assets such as shares of stock instead of cash. Under current law and within certain limits, the donor gets to skip the tax and yet take a near-full deduction for the gift.

    Strategize family gifts. Are you thinking of giving cash to relatives or friends in the same year that you plan to sell a long-held asset? If your recipient is in a lower capital-gains bracket, consider giving him all or part of the asset instead. Taxpayers can give presents of up to $14,000 per individual per year free of gift tax, and the move can save on capital-gains tax as well.

    For example, say a woman wants to give $14,000 to her granddaughter, who is between jobs. If she gives $14,000 of stock shares she bought for $3,000, the granddaughter could sell the shares and pay no tax if her taxable income is below $36,250 this year. But if the grandmother sells the shares herself, the tax bite could range from $1,650 to more than $2,500.

    Hold on for dear life. The tax code still forgives capital gains on assets held until death; at that point the asset's full market value becomes part of the taxpayer's estate. Now that the estate-tax exemption is a generous $5.25 million per individual (and indexed for inflation), some investors will find it makes sense to hold appreciated assets until death in order to avoid higher capital-gains taxes.

    Consider installment sales. Assets such as land or a business can be hard to sell piecemeal. But an owner could sell the entire asset in an installment sale and spread out a gain over several years, assuming the deal makes overall sense.

    Remember the home exemption. Couples who sell a principal residence after living in it at least two years get to skip paying tax on up to $500,000 of gains ($250,000 for singles); only above that does the gain become part of income.

    Beware of lower limits for trusts. The new 3.8% tax on capital-gains and other investment income takes effect at $11,950 of adjusted gross income for trusts—far lower than the $250,000 threshold for individuals.

    But there is an out: The lower limit applies to income that's retained by the trust, while income that's paid out to beneficiaries is taxed at their own rates.

    "This puts pressure on trustees to make distributions," says Diana Zeydel, an estate lawyer at Greenberg Traurig in Miami. Yet the point of some trusts is to retain gains and accumulate assets, or at least to keep the beneficiary on a short tether. These issues require expert help.

    Don't be driven by taxes. Don't sell—or hold—an asset just to beat Uncle Sam. Don't do an installment sale if you can't trust the buyer to pay up. And don't make charitable or personal gifts solely for tax reasons.

    Continued in article

    The Tax Policy Center has a good online tool for making before-and-after estimations ---
    http://calculator2.taxpolicycenter.org/index.cfm

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness


    Teaching Case on Personal Finance
    From The Wall Street Journal Accounting Weekly Review on January 9, 2015

    Is a Roth Account Right for You?
    by: Laura Saunders
    Dec 20, 2014
    Click here to view the full article on WSJ.com
     

    TOPICS: Roth IRA, Tax Planning

    SUMMARY: This article covers Roth accounts, which include both tax-sheltered individual retirement accounts and company-sponsored 401(k) savings plans. Roths and traditional plans vary considerably in many important ways. The biggest difference: With traditional IRAs and 401(k) plans, savers typically contribute pretax dollars and then owe tax at ordinary income rates on withdrawals made after age 59½. But savers using Roth IRAs and Roth 401(k)s put after-tax dollars instead of pretax ones into their accounts.

    CLASSROOM APPLICATION: This article offers explanations of aspects of Roth IRAs and 401(k)s, and contrasts them to traditional IRAs and retirement plans.

    QUESTIONS: 
    1. (Introductory) What is a Roth account? What are the two types explained in the article?

    2. (Advanced) What are the differences between Roth accounts and traditional ones? Are the differences significant?

    3. (Advanced) What are the advantages of Roth accounts? What are the advantages of traditional accounts? What are the disadvantages of each?

    4. (Advanced) For what people would a Roth account be a better option? Who should choose the traditional option? Why?
     

    Reviewed By: Linda Christiansen, Indiana University Southeast
     

    RELATED ARTICLES: 
    Why Roth Accounts Are Better
    by Laura Saunders
    Dec 20, 2014
    Online Exclusive

    Roth Accounts: What Will Congress Do?
    by Laura Saunders
    Dec 20, 2014
    Online Exclusive

    "Is a Roth Account Right for You?" by Laura Saunders, The Wall Street Journal, December 20, 2014 ---
    http://www.wsj.com/articles/is-a-roth-account-right-for-you-1419014490?mod=djem_jiewr_AC_domainid&autologin=y

    Roth accounts can be a great way to save for retirement—and it is getting easier to use them.

    Roths include both tax-sheltered individual retirement accounts and company-sponsored 401(k) savings plans, and, as with traditional versions of these accounts, assets grow tax-free.

    In many other important ways, though, Roths and traditional plans vary considerably.

    The biggest difference: With traditional IRAs and 401(k) plans, savers typically contribute pretax dollars and then owe tax at ordinary income rates on withdrawals made after age 59½. But savers using Roth IRAs and Roth 401(k)s put after-tax dollars instead of pretax ones into their accounts.

    Roth owners thus forgo a valuable upfront tax break, but they can get a better one in return: tax-free withdrawals of assets after age 59½. Roth accounts have a host of other benefits as well, such as more flexibility.

    Jared Guyer, a 38-year-old meteorologist in Norman, Okla., likes the fact that, unlike with a traditional IRA, he and his wife can withdraw contributions to their Roth IRAs without penalty—making them a de facto emergency fund.

    “Fortunately, we haven’t had to take money out,” says Mr. Guyer, whose wife just had the couple’s first child. “But it’s nice to know we could, if push came to shove.”

    To be sure, Roth savings aren’t always best. “Roth accounts are wonderful to have, but not if the price of admission—taxes—is too high,” says Natalie Choate, a lawyer specializing in retirement benefits at Nutter McClennen & Fish in Boston.

    Making the right choice depends on multiple factors, including income, future tax rates and changes Congress could make in the law. Here’s what you need to know.

    Easier Access

    Until recently, many affluent savers didn’t have access to Roth accounts. Income limits set by Congress kept many people from contributing to Roth IRAs, and Roth 401(k)s weren’t widely available.

    Now that is changing. According to benefits firm Aon Hewitt, millions of workers have the option of putting some or all of their 401(k) dollars into a Roth 401(k). Out of nearly 400 large and midsize firms surveyed, more than half now offer such an option, compared with only 11% in 2007—and Aon Hewitt expects the number to grow.

    In addition, the Internal Revenue Service recently issued a ruling making it easier for workers to move after-tax dollars in a 401(k) plan into a Roth IRA. And in 2010, Congress removed an income cap so that all taxpayers can convert part or all of a traditional IRA to a Roth IRA.

    These expanded options are likely to boost the trend toward Roth accounts. Although traditional IRAs hold about $6 trillion—more than 10 times the assets that Roth IRAs do—Roths are growing much faster.

    According to the Investment Company Institute, a fund-industry trade group, the number of households with one or more traditional IRAs has held steady at about 27 million over the past decade, while the number with Roth IRAs has grown 47%, to about 13 million.

    A spokesman for brokerage firm Charles Schwab says it now has nearly 1.2 million Roth IRAs, up 32% in the past five years alone—more than double the growth of its traditional IRAs.

    Tax Breaks

    In essence, savers have to decide whether it’s better to get a tax break now for putting dollars into a traditional IRA or 401(k) plan, or to put after-tax dollars into a Roth account and take tax-free withdrawals later—perhaps in several decades.

    The short answer: If you expect your tax rate on withdrawals will be higher than or the same as your current tax rate, a Roth account is often the better choice, experts say.

    “The tax comparison is often the main driver,” says Maria Bruno, a retirement specialist at financial-services firm Vanguard Group.

    In general, many young savers should opt for Roth accounts, as Mr. Guyer and his wife have done. But for savers in their peak earning years, it often makes sense to grab the upfront break a traditional IRA or 401(k) plan offers.

    Many savers appear to understand this rule of thumb. At Vanguard, says Ms. Bruno, people under 30 are putting 92% of their IRA contributions into Roth accounts.

    At the same time, conversions of traditional IRAs into Roth IRAs, which are fully taxable, peak between age 65 and 70 at Vanguard. Many of the converters are probably retirees whose tax rate has recently dropped.

    There may be other savers who should avoid Roth accounts—those who lose tax benefits when their income is too high.

    For example, the American Opportunity Credit is a valuable tax offset for people paying college tuition that’s worth up to $2,500 per student each year. But it phases out beginning at $160,000 of adjusted gross income for most married couples in 2014.

    Continued in article

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    "Kahng: Path Dependence in Tax Subsidies for Home Sales," by Paul Caron, TaxProf Blog, January 29, 2014 ---
    http://taxprof.typepad.com/taxprof_blog/2014/01/kahng.html

    At a time of looming fiscal crisis and virtual unanimity that tax expenditures must be curtailed, tax subsidies for homeownership stand out as among the most costly and unfair of these expenditures. As a result of tax subsidies for homeownership, the government foregoes billions of dollars in revenue each year, most of which benefits wealthy taxpayers. Moreover, subsidies for homeownership encourage overinvestment in housing and underinvestment in other business sectors, which impedes economic productivity, jobs creation and the ability of U.S. businesses to compete in the global marketplace.

    Scholars and commentators have analyzed extensively the tax subsidy for home mortgage indebtedness but have paid little attention to tax subsidies for home sales. This Article is the first to undertake a comprehensive examination of tax subsidies relating to home sales. The central thesis of this Article is that these subsidies rest upon questionable policy justifications, flawed logical reasoning, and poor design choices. To support this thesis, the Article traces the evolution of tax subsidies for home sales from their surprising origins in a World War I-era tax preference for requisitioned ships to their present incarnation as a practically unlimited tax exemption. This narrative account leads to several important findings. First, it shows how path dependence and bounded rationality have led lawmakers and policymakers to make questionable decisions and support problematic laws. Second, it demonstrates the power of the real estate lobby to shape the story — and the resultant legal rules ― from both tax and social policy perspectives. Finally, it illuminates the political and rhetorical forces that have shaped tax subsidies for home sales. The Article argues that only by understanding where we were before and how we got to where we are now, can we properly assess where we should go from here.

    In assessing tax subsidies for home sales, the Article evaluates the subsidies by reference to the established tax policy criteria of efficiency and fairness while remaining cognizant of the broader context of the social and economic policies regarding homeownership. Although a comprehensive assessment of federal housing policies and the role of tax subsidies in structuring the domestic housing market lie beyond its scope, the Article offers important new insights that will contribute significantly to the ongoing policy dialog about homeownership in our society. In particular, it analyzes the economic impacts of tax subsidies for home sales, including whether and to what extent the subsidies contributed to the real estate bubble. Moreover, the Article highlights the important, but underappreciated, disparate race and gender impacts of homeownership as a wealth-building vehicle. Finally, the Article calls for the repeal of tax subsidies for home sales and argues that the “exogenous shock” of the global financial crisis presents a rare and fleeting opportunity to effect this reform.

    More at
    Lily Kahng (Seattle), Path Dependence in Tax Subsidies for Home Sales, 65 Ala. L. Rev. 187 (2013)


     

    How Income Taxes Work (including history) --- http://money.howstuffworks.com/income-tax.htm

    Tax Foundation Facts & Figures (Free) ---
    http://taxfoundation.org/files/ff2012.pdf

    Why not start with the IRS? (The best government agency web site on the Internet) http://www.irs.gov/ 

    IRS Site Map --- http://www.irs.gov/sitemap/index.html

    FAQs and answers --- http://www.irs.gov/faqs/index.html

    Taxpayer Advocate Service --- http://www.irs.gov/advocate/index.html

    Forms and Publications, click on Forms and Publications


    Tax --- http://en.wikipedia.org/wiki/Tax

    "Tax Time:  Why we pay," by Jill Lepore, The New Yorker, November 26, 2012 ---
    http://www.newyorker.com/reporting/2012/11/26/121126fa_fact_lepore

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    Marriage Penalty --- http://en.wikipedia.org/wiki/Marriage_penalty
    For more details see http://www.lao.ca.gov/1999/121699_marriage_penalty.html
    Note that words are misleading in that the intent is truly not to penalize marriage. Rather the intent is not to subsidize marriage at a huge expense to tax revenue collection. It is progressive with income levels of both parties contemplating marriage.

    An inconvenient truth of marriage is that it often brings a tax increase compared with what the couple would pay as two single people. And the problem is only getting worse: Provisions taking effect this year will increase the "marriage penalty" for many high earners. ...
    "Wedding Bell Tax Blues," by Laura Saunders, The Wall Street Journal, June 7, 2013 ---
    http://online.wsj.com/article/SB10001424127887324069104578529521517818776.html

    The current provisions are deeply rooted in the tax code and lawmakers would find them expensive to alter, so marriage penalties for two-earner couples will probably last longer than many marriages. Here are strategies that can help lower the bill.

    • Reduce reported income
    • Time income windfalls where possible
    • Consider an IRA charitable rollover
    • Consider filing separately
    • Don't get married

    Note that the marriage penalty is not necessarily eliminated by getting married and filing separately.


    Teaching Case from The Wall Street Journal Accounting Weekly Review on June 27, 2013

    DOMA's Demise: The Tax Fallout
    by: Laura Saunders
    Jun 26, 2013
    Click here to view the full article on WSJ.com
     

    TOPICS: Accounting, DOMA, Estate Tax, Gift Tax, Marriage Penalty, Tax, Taxation

    SUMMARY: The end of the Defense of Marriage Act brings good news and bad on taxes for same-sex married couples. The current income tax code was designed with one-earner families in mind, and has both marriage penalties and bonuses. Experts say that many two-earner same-sex married couples will likely see an annual federal income tax increase of hundreds or thousands of dollars. The penalties are more likely to occur as two partners' incomes converge, especially if they have children. A marriage bonus is more likely if one partner earns all or nearly all the income.

    CLASSROOM APPLICATION: The Supreme Court's decision to overturn the Defense of Marriage Act once again highlights the issues surrounding the "marriage penalty". This topic can be used to illustrate the differences between filing statuses, as well as the differences between the taxation of a married vs. and unmarried couple.

    QUESTIONS: 
    1. (Introductory) What is the "marriage penalty"? Why is it in the spotlight again as a result of the Supreme Court's decision on the Defense of Marriage Act?

    2. (Introductory) What are the tax filing statuses? Define each.

    3. (Advanced) What is the reasoning behind the marriage penalty? What is its history?

    4. (Advanced) What taxpayers are penalized by marriage? What taxpayers are benefited by marriage? Why is this tax preference given to some, and a penalty assessed on others?

    5. (Advanced) How are estate and gift taxes affected by marriage? Is marriage a benefit or a disadvantage for estate and gift taxes? Why is the law structured in this way?
     

    Reviewed By: Linda Christiansen, Indiana University Southeast
     

    RELATED ARTICLES: 
    When It Doesn't Pay to Be Married
    by Laura Saunders
    Jun 10, 2013
    Online Exclusive

    Wedding-Bell Blues
    by Laura Saunders
    Jun 08, 2013
    Page: B7

    "DOMA's Demise: The Tax Fallout," by Laura Saunders, The Wall Street Journal, June 26, 2013 ---
    http://blogs.wsj.com/washwire/2013/06/26/domas-demise-the-tax-fallout/?mod=djem_jiewr_AC_domainid

    The end of the Defense of Marriage Act brings good news and bad on taxes for same-sex married couples.

    The current income tax code was designed with one-earner families in mind, and has both marriage penalties and bonuses.

    Experts say that many two-earner same-sex married couples will likely see an annual federal income tax increase of hundreds or thousands of dollars. The penalties are more likely to occur as two partners’ incomes converge, especially if they have children. A marriage bonus is more likely if one partner earns all or nearly all the income.

    or example, a married couple with two teenagers in which each spouse earns $75,000 owes nearly $4,000 more in tax annually compared with what they would owe as two single filers, according to calculations made by Roberton Williams of the Tax Policy Center, a nonpartisan group in Washington. If this couple has the same $150,000 income but all of it is earned by one spouse, then they owe nearly $4,600 less than what they would owe as two single filers, according to Mr. Williams.

    Marriage tax penalties and bonuses can occur at any income level, but the 2013 tax changes has increased marriage penalties for two-earner couples with more than $250,000 of adjusted gross income. The Tax Policy Center has a calculator for determining a couple’s bonus or penalty.

    The end of DOMA is a boon to very wealthy same-sex couples who are planning estates. The current estate and gift tax exemption is $5.25 million per individual, so married couples qualify for more than $10 million of exemption. In addition, a surviving spouse can use the unused portion of the partner’s exemption to shelter assets in his or her own estate.

    Social Security retirement benefits can contain bonuses for married couples. If there is just one earner, says Mr. Williams, the non-earner gets an benefit equal to half of the earner’s benefit on top of what the earner receives. Two-earner couples can also in many cases use strategies to maximize their retirement benefits. “Married couples can never get less Social Security retirement benefits than they would get if the partners weren’t married,” he says. “Social Security has no marriage penalty.”

    Continued in article


    "Planning at the intersection of income and estate taxes," by Patricia Annino, CPA Insider, January 21, 2014 ---
    http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/CPA/Jan/EstateTaxes.jsp

    Changes to the federal estate tax exemption make it increasingly important for advisers to focus on the income tax consequences of estate planning.

    The American Taxpayer Relief Act of 2012 (ATRA), P.L. 112-240, significantly increased the federal estate tax exemption in 2014 to $5.34 million (adjusted for inflation) and made permanent portability of the first-to-die spouse’s exemption. The change means many families no longer have to worry about estate taxes. But estate planners who have traditionally overlooked the income tax during planning discussions now need to examine how that tax intersects with estate taxes.

    A refresher course on the taxes’ relationship

    If no federal estate tax will be due, giving the asset away during a person’s lifetime can result in overall higher taxes paid by the family. Under the ATRA federal income tax rules, capital gains on appreciated assets will be taxed at a 20% rate for taxpayers with taxable income over $450,000 (joint filers), $400,000 (single filers), $425,000 (heads of households) and $225,000 (married taxpayers filing separately). The capital gains tax is either 15% or 0% for taxpayers that are below those thresholds. Also under ATRA, a 3.8% net investment income tax may apply, with a significantly lower threshold. The net investment income tax threshold is based on modified adjusted gross income (adjusted gross income plus any excluded foreign income) and is $250,000 for joint filers, $200,000 for single filers, $200,000 for heads of households and $125,000 for married filing separately.

    When the asset is given during lifetime, the recipient takes the income tax basis of the donor if that asset has appreciated (Sec. 1015(a)). The result may be a significantly higher overall tax paid than if the asset transferred at death. In other words, if the donor’s gross estate is less than the federal estate tax exemption, and there is significant built-in gain in the asset, then giving it during lifetime will trigger the gain when that asset is disposed of or sold.

    When evaluating the tax cost to a lifetime gift, practitioners also need to consider the state inheritance and estate taxes. For states with an estate tax, the exemption is usually lower than the federal estate tax exemption level, so there may be a state estate tax due even if no federal estate tax is due. Retaining the asset until death may result in no federal estate tax, a state estate tax, and a fresh start income tax basis for income tax purposes. It is important to run the numbers and determine the lowest combination of those three taxes to make an informed planning decision.

    If property given during lifetime is depreciated at the time of the gift, the donee takes as the income tax basis the property’s fair market value at the time of the gift—but only for the purpose of taking losses (Sec. 1015(a)). The donee’s basis is increased by all or a portion of the gift taxes paid on the gift transfer (Sec. 1015(d)(6)).

    When the bequest occurs at death, the income tax basis receives a fresh start and is stepped up to the date of death value, or the alternate valuation date, if that was elected (Sec. 1014). This occurs even if no federal estate taxes are due, meaning that any gain accrued before the date of death disappears. On the other hand, if the asset was depreciated for loss recognition purposes, the basis steps down at the time of death and loss cannot be recognized.

    If the taxpayer is domiciled in a community property state, then the surviving spouse’s share of community property is treated as acquired from the decedent and receives the stepped-up or stepped-down basis even if it was not included in the taxpayer’s federal gross estate (Sec. 1014(b)(6)).

    There is a glitch if the decedent had acquired the asset within one year of death and if, at the taxpayer’s death, the asset passes back to the donor or the donor’s spouse. In that case, the basis does not step up (Sec. 1014(e)). From a planning point of view, if the taxpayer’s health is declining, it makes sense, if possible, to make the gift more than one year prior to death and to someone other than the donor or the donor’s spouse.

    Another exception to the stepped-up basis rules pertains to what is known as “income in respect of a decedent” under Sec. 691. Sec. 1014(c) provides that these items are to be included in full in the decedent’s gross estate and treated as gross income when realized. Essentially, these assets are taxed twice—once for the estate tax and once for the income tax. There is an income tax deduction under Sec. 691(c) for the estate tax attributable to the inclusion of income in respect of decedent on the decedent’s federal estate tax return.

    Examples of assets subject to both taxes include certain salary and fringe benefits accrued at death, fees and commissions for services performed during lifetime and paid after death, and retirement plan assets and dividends. If the taxpayer’s intention is philanthropic, however, donating these assets to a qualified charity qualifies for both the estate and income tax deductions.

    In light of the significantly increased federal estate tax exemption, take into account these income tax considerations in determining which assets should be transferred during lifetime, at death, to individuals, and to charities.

    Carefully consider the tax consequences of installment sales

    The older generation may decide to sell the family business or commercial real estate to the next generation on an installment basis, which freezes the asset’s value for estate planning purposes. With the significantly increased federal estate tax exemptions, however, this may no longer be important. For federal income tax purposes, installment sales allow the taxation to be proportionately spread out during the years that principal payments are made. Since this is a lifetime sale, there is no fresh start basis in the underlying asset and the heir who inherits the note continues to pay income taxes on the payments as they are received.

    Determine when charitable gifts should be made

    Clients who wish to leave a bequest to a charity need to know that there is no deduction if the estate is not subject to federal estate tax. If the estate taxes are deferred until the surviving spouse’s death, and the charitable bequest occurs through the estate of the first spouse upon his or her death, in all likelihood there will be no federal estate tax and therefore no estate tax charitable deduction. Alternatively, the client may decide to make the gift during his lifetime and obtain the charitable income tax deduction, or he may ask his spouse to voluntarily make it during her lifetime if she survives him and take the income tax deduction. His estate planning documents could stipulate that if the aforementioned action is not taken then the charitable bequest is to be paid when they both die.

    Continued in article

    Bob Jensen's tax helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

     


    "NYC Legend, Ed Koch, Pays $3M Due to Estate Planning Blunder With No Irrevocable Trust, Laments UltraTrust.com," PRWeb, March 31, 2013 ---
    http://www.prweb.com/releases/Ed-Koch-irrevocable-trust/estate-plannnig/prweb10549965.htm

    Jensen Comment
    More accurately former Mayor Koch would've saved something less that $3 million after paying his tax attorneys and CPAs.

    Suggestion for his epitaph:
    "I should've had an irrevocable trust."

    Links forwarded by Paul Caron


     

     


    From the Tax Foundation
    "2015 Business Tax Climate: Chilliest in Blue States," by Paul Caron, TaxProf Blog, October 29, 2014 ---
    http://taxprof.typepad.com/taxprof_blog/2014/10/2015-business-tax-climate.html

    The Tax Foundation yesterday released the 2015 State Business Tax Climate Index, which ranks the fifty states according to five indices: corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax. Here are the ten states with the best and worst business tax climates:

    1

    Wyoming

    41

    Iowa

    2

    South Dakota

    42

    Connecticut

    3

    Nevada

    43

    Wisconsin

    4

    Alaska

    44

    Ohio

    5

    Florida

    45

    Rhode Island

    6

    Montana

    46

    Vermont

    7

    New Hampshire

    47

    Minnesota

    8

    Indiana

    48

    California

    9

    Utah

    49

    New York

    10

    Texas

    50

    New Jersey

    Continued in article

    Jensen Comment
    There are two kinds of tax "climates" in terms of individuals versus businesses. These two climates are highly correlated but there are some instances where a state having a high taxation business climate will give tremendous subsidies and/or tax deferrals to attract businesses and then clobber the individuals who move into the state. New York, for example, has tremendous deals exempting business income and sales taxes for new businesses locating near universities. But the deals do not extend to workers in those businesses.

    Washington State did not make the Top 10 in terms of business climate taxation whereas Washington State has no income tax on individuals.

    Taxachusetts taxes individuals in every which way and yet comes in at the middle at Rank 24 in terms of business taxes. This may be the reason some wealthy people who work at places like Harvard University commute from New Hampshire. They have to pay a Massachusetts tax on their in-state salaries but they can shield their portfolio capital gains taxes and royalty incomes by living in New Hampshire. Harvard's accounting professor Bob Anthony shielded his huge book revenues from state taxation by commuting in this way for years.

    We keep hearing horror stories about Illinois business taxes relative to surrounding states of Indiana and Wisconsin. And yet Illinois did not make the Bottom 10 in the table above. Illinois is instead ranked near the middle at Rank 31. Go figure!

     

     


    Blue is Blue
    From the TaxProf Blog on March 6, 2013

    The Fiscal Times:  The Ten Worst States for U.S. Taxes:

    1. New York
    2. New Jersey
    3. California
    4. Vermont
    5. Rhode Island
    6. Minnesota
    7. North Carolina
    8. Wisconsin
    9. Iowa
    10. Maryland

    The liberal governor of Vermont claims that his state's welfare generosity motivates Vermonters not to seek employment (at least the kind that does not pay cash under the table) ---
    http://www.cs.trinity.edu/~rjensen/temp/Political/PoliticalQuotationsCommentaries.htm#VermontWelfare

    Case Studies in Gaming the Income Tax Laws ---
    http://www.cs.trinity.edu/~rjensen/temp/TaxNoTax.htm


    2014 Update
    States With the Highest (and Lowest) Taxes ---

    http://247wallst.com/special-report/2014/04/02/states-with-the-highest-and-lowest-taxes/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=APR022014A&utm_campaign=DailyNewsletter

    Jensen Comment
    States vary in these rankings. For example, Vermont and Maine used to be the most taxing states. Maine dropped out of the Top 10 and Vermont dropped to Number 9. Also the tax bite varies a lot with income. Maryland has a proportionately large number of very wealthy people. Hence, Maryland makes the Top 10 ranking of the most taxing states. But this is not so for Maryland's share of the 50% of the USA taxpayers who pay no income taxes.

    Except when people retire, state taxation is probably not the main driver of where to live. Other things like economic opportunity and life style preferences are more important before retirement.

    Also the differences in the highest taxing states are not all that great in total, but they can be highly different in terms of certain individual taxes. For if you commute or otherwise drive a lot, Pennsylvania is worse than nearly every other state even though is barely makes the Top 10 list in total state taxation.

    It's easy to get around some taxes. For example, since New Hampshire has no sales tax, New Hampshire is where people from Vermont shop. Hotel chains build close to Wal-Mart stores in New Hampshire. New Hampshire Wal-Mart parking lots have to accommodate the big pickup trucks pulling huge trailers with green Vermont license plates. An added attraction is the relatively low liquor and cigarette pricing in New Hampshire. New Yorkers, however, live further away from New Hampshire and are screwed in many ways by the NY tax collectors. and liquor stores.

     


    IRS Free File Options for Taxpayers Having Less Than $57,000 Adjusted Gross Income (AGI) ---
    http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=104

    Free File Fillable Forms FAQs ---
    http://www.irs.gov/efile/article/0,,id=226829,00.html

    The IRS has a terrific helper site ---
    http://www.irs.gov/

    Bob Jensen's tax filing helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

    Hint:
    If you plan to cheat, use TurboTax since our U.S. Treasury Secretary in charge of the IRS explained how to get away with cheating by using Turbo Tax ---
    http://www.youtube.com/watch?v=eKVxGlkPRlo


    Question
    What United States president was the first president to successfully enact the income tax?

    Answer
    "Brief History of the Income Tax," by Paul Caron, Tax Prof Blog, February 28, 2012 ---
    http://taxprof.typepad.com/

    Income Tax in the United States --- http://en.wikipedia.org/wiki/Income_tax_in_the_United_States


    Question
    What can a marriage proposal tell you about underlying tax motives?

    Hint:  Note the colored graph to see when marriage saves tax dollars.

    "Effects of Marriage on Tax Burden Vary Greatly with Income Level, Equality," by Nick Kasprak, Tax Foundation, January 10, 2013 ---
    http://taxfoundation.org/sites/taxfoundation.org/files/docs/ff352.pdf

    "A Married Couple's Guide To Estate Planning," by Deborah L. Jacobs, Forbes, January 9, 2013 ---
    http://www.forbes.com/sites/deborahljacobs/2013/01/09/a-married-couples-guide-to-estate-planning/

    Jensen Comment
    Always remember, however, in the case of marriage termination she gets the gold mine and you get the shaft ---
    http://www.youtube.com/watch?v=U-p0zn3PijY


    FTC Identity Theft Center --- http://www.ftc.gov/bcp/edu/microsites/idtheft/

    Identity Theft Resource Center --- http://www.idtheftcenter.org/
    Note the tab for State and Local Resources

    IRS Identity Protection Specialized Unit at 800-908-4490

    Are CPAs eligible to receive rewards under the IRS Whistle Blower Program?
    http://www.accountingweb.com/article/tax-court-cpa-whistling-wind/220185?source=tax

    "IRS Warns on ‘Dirty Dozen’ Tax Scams for 2012," by Laura Saunders, The Wall Street Journal, February 12, 2012 ---
    http://blogs.wsj.com/totalreturn/2012/02/17/irs-warns-on-dirty-dozen-tax-scams-for-2012/?mod=google_news_blog

    Every year during tax season the Internal Revenue Service releases a list of its least-favorite tax scams. “Scam artists will tempt people in-person, on-line and by email with misleading promises about lost refunds and free money. Don’t be fooled by these,” warns Commissioner Douglas Stives.

    The list changes from year to year. Here’s what the IRS is warning about for this tax season. For more information, click here, or watch a video here.

    1. Identity theft

    “An IRS notice informing a taxpayer that more than one return was filed in the taxpayer’s name may be the first tipoff the individual receives that he or she has been victimized.”

    2. Phishing

    If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System, report it by sending it to phishing@irs.gov.”

    3. Tax-preparer fraud

    “In 2012 every paid preparer needs to have a Preparer Tax Identification Number (PTIN) and enter it on the returns he or she prepares.”

    4. Hiding income offshore

    Since 2009, 30,000 individuals have come forward voluntarily to disclose [undeclared] foreign financial accounts. . . With new foreign account reporting requirements being phased in over the next few years, hiding income offshore will become increasingly  more difficult.”

    5. ‘Free money’ from the IRS and tax scams involving Social Security

    Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file a tax return with little or no documentation, have been appearing at community churches around the country.”

    6. False/inflated income and expenses

    “Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as the Earned Income Tax Credit could have serious repercussions…. Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000.”

    7. False Form 1099 refund claims

    “In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return.”

    8. Frivolous arguments

    Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. The IRS has a list of frivolous tax arguments that taxpayers should avoid.”

    9. Falsely claiming zero wages

    Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a ‘corrected’ Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS. ”

    10. Abuse of charitable organizations and deductions

    The IRS is investigating schemes that involve the donation of non-cash assets – including situations in which several organizations claim the full value of the same non-cash contribution. Often these donations are highly overvalued or the organization receiving the donation promises that the donor can repurchase the items later at a price set by the donor.”

    11. Disguised corporate ownership

    “Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business…. The IRS is working with state authorities to identify these entities and bring the owners into compliance with the law.”

    12. Misuse of trusts

    “IRS personnel have seen an increase in the improper use of private annuity trusts and foreign trusts to shift income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering a trust arrangement.”

     

    FTC Identity Theft Center --- http://www.ftc.gov/bcp/edu/microsites/idtheft/

    Identity Theft Resource Center --- http://www.idtheftcenter.org/
    Note the tab for State and Local Resources

    IRS Identity Protection Specialized Unit at 800-908-4490

    How Income Taxes Work (including history) --- http://money.howstuffworks.com/income-tax.htm

    Why not start with the IRS? (The best government agency web site on the Internet) http://www.irs.gov/ 

    IRS Site Map --- http://www.irs.gov/sitemap/index.html

    FAQs and answers --- http://www.irs.gov/faqs/index.html

    Taxpayer Advocate Service --- http://www.irs.gov/advocate/index.html

    Forms and Publications, click on Forms and Publications

     

    IRS Free File Options for Taxpayers Having Less Than $57,000 Adjusted Gross Income (AGI) ---
    http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=104

    Free File Fillable Forms FAQs ---
    http://www.irs.gov/efile/article/0,,id=226829,00.html

    Tax Foundation Facts & Figures (Free) ---
    http://taxfoundation.org/files/ff2012.pdf

    Visualizing Economics
    Comparing Income, Corporate, Capital Gains Tax Rates: 1916-2011 and Other Graphics --- Click Here
    http://visualizingeconomics.com/2012/01/24/comparing-tax-rates/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+VisualizingEconomics+%28Visualizing+Economics%29&utm_content=Google+Reader

    Bob Jensen's tax filing helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    "Will You Have to Pay Capital Gains Taxes on the Sale of Your Home?" by Carrie Schwab Pomerantz, Townhall, February 21, 2013 --- Click Here
    http://finance.townhall.com/columnists/carrieschwabpomerantz/2013/02/21/will-you-have-to-pay-capital-gains-taxes-on-the-sale-of-your-home-n1515764?utm_source=thdaily&utm_medium=email&utm_campaign=nl


    2012 IRS Data Book

    Message from Paul Caron on March 26, 2013 ---
    http://taxprof.typepad.com/

    2012 IRS Data Book

    The IRS yesterday released the 2012 IRS Data Book, which contains a wealth of statistical information for the IRS's Oct. 1, 2011 - Sept. 30, 2012 fiscal year.  Here are the statistical tables:

    Returns Filed, Taxes Collected, and Refunds Issued Enforcement: Examinations Enforcement: Information Reporting and Verification Enforcement: Collections, Penalties, and Criminal Investigation Taxpayer Assistance Tax Exempt Activities Chief Counsel IRS Budget & Workforce
    First-Time Homebuyer Credit

    Press and blogosphere coverage:

     


    "Countdown to a Tax Hike," The Wall Street Journal, August 31, 2012 ---
    http://professional.wsj.com/article/SB10000872396390444772804577619583044242606.html?mod=WSJ_Taxes_Taxes_2&mg=reno64-wsj

    The best advice, experts say: make a few important moves now, and be ready to react quickly in the months ahead.

    To recap: At year's end, rates on ordinary income, interest, capital gains, dividends, gifts and estates are set to jump—in some cases sharply. Other tax benefits will lapse as well, affecting all levels of taxpayers. (Please see the tables below and on Page B10.)

    Few observers expect any major tax legislation before the Nov. 6 election. After that, there won't be much time. The House of Representatives has scheduled only 16 working days before its adjournment on Dec. 14. While the Senate has more days in session, "they don't have much incentive to act if the House isn't there," notes Clint Stretch, a lawyer and former executive at Deloitte Tax LLP in Washington.

    Experts foresee two possible outcomes. One is that after the election both houses of Congress agree to extend the current rules for up to a year, buying time to make fundamental changes to the tax code while avoiding the economic consequences of huge tax increases.

    The other possibility is that the election changes the political equation so much that one party blocks a tax-rate extension, allowing the current rules to expire and pushing tough decisions into 2013.

    Lawmakers return in early January, but Mr. Stretch and others believe it could take them several months to reach an agreement and make changes retroactive to the beginning of the year.

    In that scenario, most Americans would be affected. Employees could see their take-home pay fall as higher tax rates kick in, for example, while the heirs of people who die will face a much harsher estate-tax regime.

    Lawrence Carlton, an accountant in Bedford, Mass., says he is getting more than a dozen calls a week asking what tax rates will be next year: "My clients don't believe me when I say, 'I'm sorry, I just can't tell you.'"

    So how should you prepare for the uncertain months ahead? Tax experts surveyed by the Wall Street Journal offered several dos and don'ts:

    Continued in article

    Jensen Comment
    Summary of Dos and Don'ts

    • Do consider the effect of higher taxes on investment returns next year
    • Don't rush to take all of your capital gains
    • Do consider whether to accelerate Roth IRA conversions
    • Don't count on an extension of this year's Social Security tax cut
    • Do expect an AMT "patch" for 2012
    • Don't take money from your IRA if you are 70½ or older and want to donate money from it
    • Do prepare for the possibility of less-generous gift- and estate-tax rates and exemptions after 2012

    AMT --- http://en.wikipedia.org/wiki/Alternative_Minimum_Tax


    "Tax Advice for the Second Obama Administration," by Paul L. Caron, SSRN, February 18, 2013 ---
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2220496

    Abstract:
    Twenty-five of the nation’s leading tax academics, practitioners, journalists, and public intellectuals gathered in Malibu, California on the Friday before President Obama’s second inauguration to plead for tax reform. The papers published in this issue of the Pepperdine Law Review provide very different prescriptions for America’s tax ills. But there is a unanimous diagnosis that the country’s tax system is sick indeed. A re-elected president’s inauguration offers a particularly propitious moment to put politics aside and embark on a treatment plan. If our lawmakers are interested in healing our tax wounds, the ideas presented in these pages offer a good place to begin. They run the gamut from relatively minor procedures to total transplantation. But all would improve the health of our current tax system.

     


    IRS Identity Protection Specialized Unit at 800-908-4490

    "IRS: Identity Theft Crackdown Sweeps Across the Nation:  More than 200 Actions Taken In Past Week in 23 States," SmartPros, February 1, 2012 ---
    http://accounting.smartpros.com/x73338.xml

    . . .

    To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance. The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.

    Identity theft occurs when someone uses another’s personal information without their permission to commit fraud or other crimes using the victim’s name, Social Security number or other identifying information. When it comes to federal taxes, taxpayers may not be aware they have become victims of identity theft until they receive a letter from the IRS stating more than one tax return was filed with their information or that IRS records show wages from an employer the taxpayer has not worked for in the past.

    If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. The taxpayer should contact the IRS Identity Protection Specialized Unit at 800-908-4490.  The taxpayer will be asked to complete the IRS Identity Theft Affidavit, Form 14039, and follow the instructions on the back of the form based on their situation.

    Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft or the IRS Identity Theft Protection page on the IRS website.

    IRS Identity Protection Specialized Unit at 800-908-4490


    "Students and Families Miss Out on Millions in Tax Breaks, Report Says," by Michael Stratford, Chronicle of Higher Education, June 18, 2012 ---
    http://chronicle.com/article/StudentsFamilies-Miss-Out/132371/

    About 1.5 million tax filers in 2009 did not take advantage of the higher-education tax benefits for which they appeared to be eligible, according to a government report released on Monday.

    The report, by the Government Accountability Office, says students and their families missed out on average tax benefit of $466. The missed savings totaled $726-million.

    Tax benefits for higher education—which include the American Opportunity Credit, the Lifetime Learning Credit, and deductions for tuition payments and interest paid on student loans—each year total about $30-billion. But about 14 percent of the people who were eligible for the benefits in the 2009 tax year did not use them, the GAO found.

    And even among those who did take advantage of some higher-education tax benefit, the report says many did not use them effectively. For example, nearly 40 percent of the students and families who took the tuition deduction could have saved more money by claiming the Lifetime Learning Credit instead. Filers who didn't maximize their tax savings paid an average of $284 more than they had to, for a total of approximately $67.2-million.

    The Government Accountability Office says that, since 2005, it has repeatedly found that millions of filers eligible for higher-education tax breaks have failed to claim them. In the report the GAO recommends that the Internal Revenue Service and Department of Education work together to develop a "coordinated, comprehensive strategy" aimed at better informing students about the benefits for which they are eligible.


    Increasing Inequality for Economic Growth
    Marginal Tax Rates Around the World --- http://www.econlib.org/library/Enc/MarginalTaxRates.html

    "How Much the Rich Pay Mitt Romney, the 1% and taxes," The Wall Street Journal, January 20, 2012 ---
    http://online.wsj.com/article/SB10001424052970204555904577168683705018156.html?mod=djemEditorialPage_t

    Mitt Romney's disclosure this week that his effective federal tax rate is "probably closer to the 15% rate than anything" has created the predictable political uproar. The White House and its media allies figure they've now got their stereotype of the Monopoly man, albeit without his cane and top hat, who they can crush in their planned class-warfare campaign.

    We're not sure if facts will matter in this cacophony, but someone should at least try to introduce a little reality into the debate, especially since Mr. Romney seems so unprepared to make the case.

    Start with the fact that, like Warren Buffett, Mr. Romney said he makes most of his money from investments, not wages or salary. Thus his income is really taxed twice: once at the corporate tax rate of 35%, then again at a 15% tax rate when it is passed through to him as dividends or via capital gains from the sale of stock.

    All income from businesses is eventually passed through to the owners, so to ignore business taxes creates a statistical illusion that makes it appear that the rich pay less than they really do. By this logic, if the corporate tax rate were raised to, say, 60% from today's 35% and the dividend and capital gains tax were cut to zero, it would appear that business owners were getting away with paying no federal tax at all.

    This all-too-conveniently confuses the incidence of a tax with the burden of a tax. The marginal tax rate on every additional dollar of capital gains and dividend income from corporate profits can reach as high as 44.75% at the federal level (assuming a company pays the 35% top corporate rate), not 15%.

    The Congressional Budget Office recently examined the distribution of federal taxes on various income groups. The report was ballyhooed by liberals as proof of rising income inequality, but that argument is for another day. What everyone has ignored is what CBO found about the relative taxes paid by different groups. And, lo, the rich pay more, which is probably why the press didn't report it.

    The nearby table from the CBO report shows that in 2007 the average income tax rate paid by the 1% was 18.8%, compared to 4.2% for Americans in a broadly defined middle class from the 21st to 80th income percentiles. The poorest 20% on average paid a net negative income-tax rate of 5.6% because of the checks they receive for tax credits that are "refundable." These are essentially transfer payments redistributing income from the rich and middle class to the poor.

    As for all federal taxes, CBO found that in 2007 the top 1% paid an average rate of a little under 30%, compared to 15.1% for middle-income earners. In calculating this overall tax burden, CBO takes account of payroll taxes, which moves the rate of the lowest 20% of earners into positive territory at 4.7%. CBO also apportions to individuals who are shareholders the tax that corporations pay on corporate profits.

    Continued in article

    "20 Jan, 2012, 06.34PM IST, New York Times Why Americans think the tax rate is high when it is not," The Economic Times ---
    http://economictimes.indiatimes.com/news/international-business/why-americans-think-the-tax-rate-is-high-when-it-is-not/articleshow/11568197.cms

    When people heard that Mitt Romney's federal income tax rate was about 15 per cent, the immediate reaction of many was to assume that their own tax rate was higher. The top marginal rate is 35 per cent, after all, and the marginal rate on a couple with $70,000 in taxable income is 25 per cent.

    But the truth is that most households probably pay a lower rate than Romney. It is impossible to know for sure, given that he has yet to release his tax return. What is clear, though, is that a large majority of US households - about two out of three - pays less than 15 per cent of income to the federal government, through either income taxes or payroll taxes.

    This disconnect between what we pay and what we think we pay is nothing less than one of the country's biggest economic problems.

    Many Americans see themselves as struggling under the weight of a heavy tax burden (partly for the understandable reason that wage growth has been so weak). Yet taxes in the United States are quite low today, compared with past years or those in other countries. Most important, US taxes are not sufficient to pay for the programs that many people want, like Medicare, Social Security, road construction and education subsidies.

    What does this combination create? An enormous long-term budget deficit.

    Together, all federal taxes equaled 14.4 per cent of the nation's economic output last year, the lowest level since 1950. Add state and local taxes, and the share nearly doubles, to about 27 per cent, according to the Tax Policy Center in Washington - still lower than at almost any other point in the past 40 years.

    As the economy recovers and incomes rise, tax payments will increase somewhat. But they will not keep pace with projected spending, in the form of Medicare, Medicaid and Social Security. And total taxes at current rates would still make up a smaller share of the economy than in virtually any other rich country - not just European nations but also Australia, Canada, Israel and New Zealand.

    Obviously, tax increases are not the only way to solve the deficit. Spending cuts can, too. But so far, at least, many voters seem to prefer small, symbolic cuts, like those to foreign aid. Substantial cuts - be they the changes to Medicare that President Barack Obama included in his health care bill or the Medicare overhaul that Republicans prefer - tend to be politically unpopular.

    Since the late 1970s, just before the modern tax-cutting push began, total federal tax rates have fallen for every income group. The payroll tax has risen, but declines in the income tax have more than made up for those increases. Nearly half the population now pays no federal income tax.

    Most households pay less than 15 per cent of their income to the federal government because of tax breaks, like the exclusion for health insurance, and because marginal rates apply to only a small part of a taxpayer's income. On the first $70,000 of a couple's taxable income, the total federal income tax rate is only 13.8 per cent.

    That said, taxes have fallen the most for the very affluent. Romney and his father - George W. Romney, the former automobile executive, Michigan governor and presidential candidate - do a nice job of illustrating the change.

    Continued in article

    Jensen Comment
    Of course rich and poor alike pay other taxes such as taxes at the fuel pump and payroll deduction taxes if those ever come back (which seems increasingly unlikely in our political dogfight). And there are serious ways to be mislead by media-alleged tax rates. For example, do you compute the tax rate that you're paying now on your own tax return on the basis of full gross income versus adjusted gross income after exclusions and deferrals for such thinks as interest on municipal bonds, 401-K deferrals, and other tax breaks in the current tax rules? Chances are if you divide your 2011 what you pay in 2011 federal income taxes by the full "gross" income you will find that you're paying 10% or less.

    Of course rich people take greater advantages of such tax law provisions such as exemption of interest on municipal and school bonds. But in a sense they are paying a virtual tax on those exemptions since municipal and school bonds have lower interest returns and/or more default risk. Hence computing the marginal rate that rich people pay in taxes becomes more complicated than you will ever learn from watching MSNBC or reading the New York Times.


    Tax accounting professors Rodney Mock (Cal Poly) and Nancy Shurtz (Oregon) published an opinion piece in the April 16, 2012 edition of The Wall Street Journal..

    "Mock and Shurtz: The TurboTax Crime Wave," by Rodney P. Mock and Nancy Shurtz, The Wall Street Journal, April 16, 2012 ---
    http://online.wsj.com/article/SB10001424052702304444604577339840734386180.html?mod=djemEditorialPage_t

    Jensen Comment
    The so-called Turbo Tax defense has been rejected by the IRS in all but two cases in history (apart from Timothy Geithner's infamous Turbo Tax defense when seeking to be appointed as U.S. Treasury Secretary. These rejections have led to free online consulting services by leading developers of tax preparation services to deal with instances where generalized tax software does not deal with very special and peculiar tax questions. When taxpayers get tax advice directly from consultants it tends to reduce chances of hard nose rejections by the IRS.


    "The New Capital-Gains Maze," The Wall Street Journal, February 15, 2013 --- Click Here
    http://professional.wsj.com/article/SB10001424127887324432004578302123138871136.html?KEYWORDS=Laura+Saunders&mg=reno64-wsj

    Chances are your capital-gains taxes are going up this year—and if you aren't careful, you could end up paying more than necessary.

    Amid the political drama surrounding the "fiscal cliff" negotiations, some investors overlooked significant tax changes kicking in this year. Most notable: those on long-term capital gains, or taxable income from the sale of investments held longer than a year.

    Under the old system, there were often only two rates: zero and 15%, depending on your income. Now, there are three tax tiers: zero, 15% and 20%. And that isn't all. There also are three backdoor tax increases that can push your effective rate even higher—to nearly 25%.

    Experts say many taxpayers whose rate still is 15% could well owe one-third more than they would have last year. And many top-bracket taxpayers will owe nearly two-thirds more, even if their income is that high only because of a once-in-a-lifetime sale.

    "These are significant increases, and they raise the value of tax deferral and careful planning," says Vanguard Group tax expert Joel Dickson.

    Investors who have begun to consider these issues—and many haven't—admit to being confused.

    "I'm trying to figure out whether it's even worth it to have a taxable account," says Matt Reiland, a 32-year-old oil-industry financial analyst in Farmington, N.M., who now is putting away $1,000 a month.

    Fortunately for investors, there still are ways to minimize the hit—and even dodge it. Strategies include carefully timing investment sales, making charitable donations and family gifts with assets instead of cash, and minimizing certain income. With markets approaching record highs, investors need to know them.

    To be sure, long-term capital gains still retain many of the advantages investors have cherished for decades.

    Unlike wages, capital gains often can be timed. Losses on one investment can be "harvested" and used to offset gains on other investments, even in different years. Up to $3,000 of capital losses still are deductible against "ordinary" income such as wages. And whatever an investor's top rate on gains, it often is far below the rate on ordinary income, which now can be more than 41%.

    It isn't just capital gains that are affected by the tax changes. The new provisions also apply to many dividends, and some apply to other investment income, including interest. But these types of income often are more difficult to time than long-term gains.

    Where You Stand

    This year's changes divide taxpayers into three groups. For joint filers with more than $450,000 of taxable income or single filers with more than $400,000, the tax rate on long-term gains is fairly clear, if painful.

    It starts with a flat tax of 20% above those thresholds. Add to that the new "Pease limit," a complex backdoor increase tied to itemized deductions that is named after Donald Pease, a former Ohio congressman. In effect, the Pease limit raises a taxpayer's rate by about 1%, according to experts at the Tax Policy Center, a nonpartisan research group in Washington.

    Finally, there is a new 3.8% flat tax on net investment income—unless the investor has sold an actively managed business—for a total of about 25%.

    Thus, for a taxpayer already in the top bracket, the tax on a $500,000 gain could rise to about $125,000 this year from $75,000 in 2012.

    For taxpayers in the next income tier—couples with $72,500 to $450,000 of taxable income and single filers with $36,250 to $400,000—the effective rate on a gain is harder to predict.

    It begins with a 15% flat rate, but taxpayers who cross certain income thresholds owe more because of the 3.8% net investment income tax, the Pease limit and the Personal Exemption Phaseout, or PEP, a backdoor increase that limits personal exemptions.

    Here's how it could play out: Say a couple with two children in college and a third soon to go has an adjusted gross income of $220,000. They sell long-held investments to help pay tuition, realizing a $175,000 gain. Although they are in the 15% bracket for long-term gains, just as they were in 2012, they'll owe about $5,500 more than they would have last year due to the new 3.8% tax.

    Continued in article


    From The Wall Street Journal Accounting Weekly Review on April 6, 2012

    Tax Pitfalls for Fund Investors
    by: Rachel Louise Ensign
    Apr 05, 2012
    Click here to view the full article on WSJ.com
    Click here to view the video on WSJ.com WSJ Video
     

    TOPICS: Capital Gains, Personal Taxation, Tax Laws, Tax Planning

    SUMMARY: This article is the first in an entire report on tax strategies and other issues related to investing in mutual funds. The related video discusses the potential changes in taxation from expected lapses in current tax laws. As well, the article has a related Podcast of only audio broadcast at http://podcast.mktw.net/wsj/audio/20120402/pod-wsjepensign/pod-wsjepensign.mp3 that discusses "mistakes mutual fund investors make"-the focus of this article.

    CLASSROOM APPLICATION: The article is useful in a class on personal taxation when covering topics related to Schedule D and to IRAs.

    QUESTIONS: 
    1. (Introductory) What is the difference in tax treatment between ordinary income and capital gains? How are these terms defined in tax law?

    2. (Advanced) Why should an investor consider putting certain types of investments in an IRA or 401(K) plan while including others in taxable investment accounts?

    3. (Advanced) If an investor has capital gains on an investment but also has incurred losses on another investment, what should that investor do? How must an investor be careful to avoid "wash sale rules"? In your answer, define the term "wash sales."

    4. (Advanced) Why are gains on investments in an exchange-traded funds (ETFs) that hold gold taxed differently than are gains on investments in other mutual funds?

    5. (Advanced) According to the related podcast, when considering whether to invest in a Roth IRA or a 401 K, investors should consider what changes to tax rates are expected. Why?
     

    Reviewed By: Judy Beckman, University of Rhode Island

     

    "Tax Pitfalls for Fund Investors," by Rachel Louise Ensign, The Wall Street Journal, April 5, 2012 ---
    http://online.wsj.com/article/SB10001424052970204603004577269872566639722.html?mod=djem_jiewr_AC_domainid

    Fund investors can go wrong in all sorts of ways. But since mid-April is fast approaching, let's talk about one of the most common and least understood: taxes.

    Even if it is too late to do anything about this year's returns, it is a good time to start planning for next year's.

    At the root of the most common blunders are three types of taxable fund payouts: interest income, dividends and capital gains. While all three are subject to a complex web of tax rates and regulations, investors can limit their tax bills by understanding their funds, planning carefully and staying abreast of tax changes in Washington.

    Here, according to financial advisers, are five of the biggest mistakes many fund investors make:

    1. Keeping 'tax-inefficient' funds in a taxable brokerage account

    Some types of funds distribute lots of dividends, interest income and capital gains, all of which can boost tax bills. Many investors would be better off holding those funds in tax-sheltered retirement accounts. With a standard 401(k) plan or individual retirement account, you pay tax only when you make withdrawals; earnings and withdrawals usually are tax-free in a Roth 401(k) or Roth IRA.

    Tax-efficient funds—those unlikely to make big distributions—can be left in a taxable account, says Michael Gibney, a financial adviser in Riverdale, N.J. You will owe capital-gains tax if you sell those securities at a gain, but at least the timing of such sales is under your control.

    Taxable-bond funds, including high-yield funds and funds holding Treasury inflation-protected securities, are among the investments you might consider holding in an IRA, advisers say. Ditto for funds that emphasize high-dividend stocks. Meanwhile, index funds that track a broad stock-market benchmark—and most but not all ETFs—might be candidates for a taxable account, as would municipal bond funds, since interest earned is tax-free.

    Determining whether a fund is going to have capital gains can be tricky. Each year, funds must distribute gains if portfolio managers sell securities for a net taxable gain. One indicator is the level of turnover in the portfolio, though, admittedly, it is an imprecise gauge.

    The higher a fund's turnover, a figure that can be found on Morningstar.com, the more likely it is to pay out capital gains, says Mark Armbruster, president of Armbruster Capital Management, which is in the Rochester, N.Y., area. If a fund has paid out capital gains in the past, something that also can be found on Morningstar, that also is a sign it may do so again, he says.

    Small-stock funds may produce more capital gains than large-stock funds, advisers say, because there are many more small stocks to trade among.

    Broad index funds, which don't change their holdings very often, are less likely to pay out capital gains than some actively managed funds that change their investments based on market conditions. The Vanguard 500 Index fund, for example, has a 4% turnover ratio and hasn't distributed capital gains since 1999. The actively managed CGM Focus, on the other hand, has a nearly 500% turnover rate. It has performed poorly in recent years, so it hasn't been in a position to distribute gains, but it distributed $8.21 a share in mostly short-term capital gains in 2007.

    Still, when and why a fund realizes capital gains is complex, so "turnover is only a very rough gauge of tax efficiency," says Christine Benz, director of personal finance at Morningstar. Another gauge is Morningstar's "potential capital-gains exposure" statistic, an estimate of the percentage of a fund's assets that represent mostly unrealized gains.

    ETFs, in particular, rarely distribute capital gains, Mr. Armbruster says. That is because most are index funds but also because they are structured to minimize taxable sales of portfolio securities.

     

    2. Holding on to funds that cost you big

    Capital gains, whether taken on purpose by the investor or passed along by a fund, can add to your tax bill. But you can lessen their impact by strategically booking capital losses when holdings decline in value, so that they offset any gains dollar for dollar. In any year, if your capital losses exceed your capital gains, you can take up to $3,000 of the loss as a tax deduction and carry the rest of the loss forward to offset gains in future years.

    This "tax-loss harvesting" has to be done carefully, however, to comply with Internal Revenue Service rules. Once you sell a fund or other security at a loss, you have to wait 30 days before buying either that same fund or a very similar fund (for instance, one that tracks the same index), or the loss is invalidated. "The securities cannot be 'substantially identical,' " says Gil Charney, principal tax researcher at the Tax Institute at H&R Block, a division of H&R Block Inc., but "the IRS never clearly defined what substantially identical means.… It's gray."

    If you want to keep exposure to the sector that fund covered, you can buy a slightly different fund—for instance, you likely could sell a fund tracking the Standard & Poor's 500-stock index and immediately buy one tracking the Russell 1000, says Mr. Armbruster. You could later return to your original holding.

    Keep tax-loss harvesting in mind any time the market or a particular holding suffers a major decline; you'll miss opportunities if you think about this only near year-end.

     

    3. Buying an ETF without learning what its tax treatment is

    Gains and income from certain ETFs are subject to funky tax rules because of the funds' holdings or their corporate structures. Though most of these aberrations invest in niche industries, some of the most popular ETFs could leave you with a surprisingly large tax bill.

    The most popular offender: Gains from selling SPDR Gold Shares, GLD +0.70% the second-largest exchange-traded product by assets, are taxed at a top 28% rate on collectibles, rather than the maximum 15% rate on long-term capital gains. That is true for all other funds that hold physical precious metals.

    There are different rules for ETFs that provide commodities exposure by investing in futures contracts: Gains are taxed 60% at a long-term rate and 40% at a short-term rate. ETFs structured this way include some from the U.S. Commodity, PowerShares and ProShares families.

    Also, some non-stock ETFs are structured as partnerships and report their tax information on a Schedule K-1 instead of the common 1099 form. Schedule K-1 typically is sent later than a 1099—it may not even arrive before your tax return is due because the partnership has to file its own return before sending you this form, says Eric Smith, an IRS spokesman. In this situation, you'll want to ask for an extension from the IRS, he says. You can avoid these hassles by holding these funds in an IRA.

     

    4. Fudging the new forms

    Reporting securities sales on your tax return has gotten more complex, with new rules that require brokerage firms and fund companies to report to the IRS what you paid for some securities you sell. Because that reporting applies only to securities purchased after specified dates, you may have sales of both "covered" and non-covered assets. As in the past, for non-covered securities, the financial firm may voluntarily provide cost information only to you.

    The new rules could make tax preparation more complex, tripping up some investors.

    "Basically what they've done is taken Schedule D and added a new schedule behind it—Form 8949. All the transactions you used to put directly on Schedule D…are now on this new form," says Robert Schmansky, a financial adviser in Bloomfield Hills, Mich.

    The most important thing to know about Form 8949 is that you will have to separate the covered transactions from those that aren't and report them on different lines. Individual stocks purchased on or after Jan. 1, 2011, are covered; for mutual funds and most ETFs, the new treatment applies to purchases on or after Jan. 1, 2012. Then, you must add the covered and non-covered transactions and put the total on Schedule D.

     

    5. Investing without paying attention to the tax debate in Washington

    When deciding when to take gains and what account to hold various funds in, it is important to stay abreast of what is going on in Washington.

    Think hard about where tax rates are likely headed in the future. While some tax changes affecting funds are already in store, some experts watching the political debate—and the ballooning federal deficit—say investors may want to hedge their bets against higher rates and pay taxes on their gains soon.

    There are a number of big tax changes on tap starting in 2013 that could deal a huge blow to your funds. If the Bush tax cuts are allowed to expire, the top rate on ordinary income and short-term capital gains will rise to 39.6% from 35%.

    The current top 15% rate on long-term capital gains is set to rise to 20%. Qualified dividends will no longer be taxed at a top 15% rate and will be taxed as ordinary income. Also, net investment income, which includes dividends, interest and capital gains, will be subject to a new 3.8% Medicare tax, part of the Affordable Care Act, for married couples filing jointly who earn more than $250,000 a year and individuals earning more than $200,000 a year.

    One possibility is that some of the current rates will be extended for most taxpayers, but not for high earners. "People who are over the $250,000 mark—Obama has drawn a line in the sand for those people," says Ken Weingarten, a financial adviser in Lawrenceville, N.J. "It's going to be crazy after the election. There is going to be a lot of horse trading to get these things straightened out."

    Continued in article

    Bob Jensen's tax helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    "A New Theory of the State Corporate Income Tax: The State Corporate Income Tax as Retail Sales Tax Complement," by Darien Shanske, SSRN, June 5, 2012 ---
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2078488 
    Tax Law Review, Forthcoming

    Abstract:
    The state corporate income tax has been and remains a vital source of income for the states. The theoretical justifications for this tax, however, are weak and, as reasonably predicted based on its poor design, the state corporate income tax has been in decline as a source of state revenue for decades. Nevertheless, states have taken important steps to shore up their corporate income taxes. At least one of these major reforms, apportioning the state corporate income tax base on the basis of in-state corporate sales, was probably undertaken on the basis of implausible policy arguments. Despite the ad hoc (at best) nature of these reforms, they have changed the state corporate income tax for the better. An initial goal of this Article is to collect this positive news at a time when most fiscal news remains bleak.

    The argument at the heart of this Article starts from the analytical observation (first made by Charles McLure) that these changes to the state corporate income tax have made the tax into an odd type of sales (consumption) tax. This Article then argues that this observation is important because this new corporate income tax is reaching sales on which no retail sales tax is due (e.g., most services) and sales on which no retail sales tax is generally remitted (e.g., sales made by certain internet retailers). This means that the new corporate income tax is acting not only like a sales tax, but as a complement to poorly designed state sales taxes. This Article argues that, assuming that states will not act directly to broaden their sales tax base, they can act to broaden their consumption tax base indirectly through their corporate income taxes.


    PBS Video:  What Do Tax Rates' Ups and Downs Mean for Economic Growth?
    http://video.pbs.org/video/2176062522
    Thank you Paul Caron for the heads up.

    Marginal Tax Rates Around the World --- http://www.econlib.org/library/Enc/MarginalTaxRates.html

    Although I favor raising taxes at all income levels with much higher marginal rates for the wealthy, keep in mind that there are limits. A close friend in Sweden argued that at one point for certain wealthy Swedes like him the marginal tax rate exceeded 100% --- which has to really discourage both working and investing risk capital.


    In the 1970s and 1980s economic growth in Sweden was very low compared to other Western European nations, and much of this is attributed to high marginal tax rates (80+%) on workers in general and even higher for wealthy Swedes, many of whom shifted their wealth and even themselves out of Sweden ---
    http://en.wikipedia.org/wiki/Sweden

     
    A bursting real estate bubble caused by inadequate controls on lending combined with an international recession and a policy switch from anti-unemployment policies to anti-inflationary policies resulted in a fiscal crisis in the early 1990s.] Sweden's GDP declined by around 5%. In 1992, there was a run on the currency, with the central bank briefly jacking up interest to 500%.


    The response of the government was to cut spending and institute a multitude of reforms to improve Sweden's competitiveness, among them reducing the
    welfare state and privatising public services and goods. Much of the political establishment promoted EU membership, and the Swedish referendum passed with 52% in favour of joining the EU on 13 November 1994. Sweden joined the European Union on 1 January 1995.


    Marginal Tax Rates by Country ---
    http://www.nationmaster.com/graph/tax_hig_mar_tax_rat_ind_rat-highest-marginal-tax-rate-individual


    By 2009, Sweden had dropped its marginal tax rate of well over 80% to 57%. This still leaves Sweden with the third-highest marginal tax rate. At a marginal tax rate of 35%, the United States is tied with many nations at Rank 37. The reason almost half of U.S. taxpayers, many of whom are well above the poverty level, pay zero or very low income tax is that there are so many ways to avoid or defer income taxes, especially with all the newer types of credits available in the revised U.S. Tax Code.


    Sometimes what appears to be a raising of income taxes is merely a shifting of taxes such as when huge and painful increases on a state's cost of capital are passed to its more regressive sales and property taxes and apartment rentals. It will be very tough if school districts, towns, cities, counties, and states must compete head-to-head in bond markets with corporations.


    The problem with tax exempt bonds is that there are gazillions of dollars invested in these bonds such that even small increases in tax-exempt cost of capital can clobber citizens in need of schools, road repairs, welfare, etc.

    Rates Versus Enforcement
    Marginal Tax Rates by Country ---
    http://www.nationmaster.com/graph/tax_hig_mar_tax_rat_ind_rat-highest-marginal-tax-rate-individual

    One of the problems in comparing marginal tax rates and economic growth by country is the enormous problem of variations in tax enforcement between nations. Countries (read that Greece and Italy) may have relatively high marginal tax rates where enforcement is a sham. Illinois just imposed one of the largest tax rate increases among all 50 states in the United States. But Illinois is handing out "Get Out of Tax Free" cards right and left for large corporations that threaten to pull up stakes in Illinois and move on to states that have lower tax rates.

    Benefits Covered in Tax Payments
    Marginal Tax Rates by Country ---
    http://www.nationmaster.com/graph/tax_hig_mar_tax_rat_ind_rat-highest-marginal-tax-rate-individual

    Another problem in comparing marginal tax rates and economic growth by country is that countries vary in terms of what taxpayers receive in return. Many nations provide health care benefits for all citizens in revenues collected from taxes. Others provide less health services from taxation. Some nations can keep taxes lower because they are protected by the military might of neighbors. Canada, for example, has never had to invest heavily in its military because it lives under the powerful military umbrella of the United States. Israel is a high taxation state, but taxes would soar through the roof if the United States did not heavily subsidize military protection of Israel.


    "Tax planning for parents of college students:  Help clients form a strategy from the Code's array of options," by Joseph D. Beams andJohn W. Briggs," Journal of Accountancy, March 2012 ---
    http://www.journalofaccountancy.com/Issues/2012/Mar/20114558.htm

    As parents plan for their children’s higher education, they may choose from an array of tax-favored savings vehicles and deductions and credits. Options include education savings plans, education credits, deduction of educational expenses, education savings bonds, education loans and other alternatives. No single option works best for everyone, but by reviewing the pros and cons of each alternative, families can choose a strategy that best meets their needs.

     

    Since planning for college education should start when children are young, CPA tax practitioners should offer these services to new parents as well as those with children currently in college. Yearly tax organizers should include questions about tax planning for college. When conducting yearend tax planning for parents of college students, CPAs should discuss related issues, including the dependency exemption on parents’ returns during their children’s college years.

     

    As the need for a college degree has increased, the cost of going to college has also increased. According to The College Board, for the 2011–2012 academic year, the average annual in-state tuition and fees at a public four-year college are $8,244, and the average total out-of-state tuition and fees are $20,770. The average annual tuition and fees at private nonprofit colleges are $28,500 (tinyurl.com/45joe2). These costs do not include room and board, books or supplies. According to The Project on Student Debt, the average college senior graduating in 2010 owed $25,250 in student loans (tinyurl.com/4yv5t7z). Families therefore have good reason to start saving toward these costs while their children are young. Savings vehicles include Sec. 529 plans, education savings bonds and Coverdell education savings accounts (Coverdell ESAs). All of these plans have their merits. (See the SEC’s overview of Sec. 529 plans at tinyurl.com/d8ojwwg.) Families without savings can still take advantage of the following tax incentives once their children are in college.

    Continued in article

    Bob Jensen's taxation helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    Tax Decision Case
    From The Wall Street Journal Accounting Weekly Review on January 20, 2012

    Most ETFs Are Tax-Smart. But Others...
    by: Ari I. Weinberg
    Jan 09, 2012
    Click here to view the full article on WSJ.com
     

    TOPICS: Capital Gains, Taxation

    SUMMARY: The article describes an ETF's structure, how investor transactions affect taxation of other invested individuals, and how ETF managers can vary behaviors to be more or less tax efficient in their operations. It is part of the WSJ's "Investing in Funds: A Quarterly Analysis, January 2012."

    CLASSROOM APPLICATION: The article is useful in classes covering personal taxation or financial planning.

    QUESTIONS: 
    1. (Introductory) What is the difference between a mutual fund and an exchange traded fund (ETF)? In your answer, include a definition of each of these types of funds then make the comparison between the two.

    2. (Introductory) How do changes in funds' investment portfolios result in taxable gains to investors?

    3. (Advanced) How can investor requests for redemptions result in taxable gains (or deductible losses) for all investors in that mutual fund? How does the difference identified in answer to question 1 above mean that ETFs can avoid generating these tax implications for investors?

    4. (Advanced) In what ways are some ETFs less tax efficient than other ETFs? How could you determine an ETF's history in this matter?

    5. (Advanced) Overall, why does an investor care about taxable distributions from an investment before selling that investment himself or herself?

    6. (Advanced) What is the purpose of Forms K-1 and 1099? What is the difference between the two forms? Which of these forms does the article's author believe a taxpayer/investor would prefer to receive from an ETF?
     

    Reviewed By: Judy Beckman, University of Rhode Island

     

    "Most ETFs Are Tax-Smart. But Others... ," by: Ari I. Weinberg, The Wall Street Journal, January 9, 2012 ---
    http://online.wsj.com/article/SB10001424052970203893404577098661198194858.html?mod=djem_jiewr_AC_domainid

    Exchange-traded funds are hardly the magic models of tax efficiency that some advisers or fund sponsors would like investors to believe. But generally, they are at least as good at minimizing tax pain for stock investors as index funds, the most tax-efficient type of mutual fund.

    Here's a closer look at the tax advantages of ETFs and the limits of those benefits, particularly when investing in assets other than stocks. How does ETF structure affect taxes?

    The vast majority of ETFs are regulated as traditional mutual funds under the Investment Company Act of 1940, and most are similar to conventional index funds in that they buy and hold the components of a market benchmark. The difference is that unlike their mutual-fund cousins, ETFs trade like stocks. As long as the indexes they are tracking don't see big changes in their components, ETFs, like index funds, rarely have to make portfolio changes.

    Avoiding such changes helps limit realized capital gains that might have to be distributed to investors.

    But there is a significant difference in how ETFs operate compared with mutual funds that also helps with tax efficiency. When a traditional mutual fund receives cash from investors, it issues fund shares and buys a representative set of its portfolio investments. When investors redeem, the fund delivers cash and may have to sell underlying investments, which can result in capital gains that are subject to tax. [NEEDillonline] David Plunkert

    With ETFs, ordinary investors buy and sell ETF shares from other investors, not from the fund itself. Meanwhile, ETF shares are created and redeemed in so-called in-kind transactions with big institutional investors: To receive ETF shares, market makers, known as authorized participants, deliver the underlying securities (or a representative basket) to the fund manager. And when they redeem ETF shares, they are handed securities rather than cash, which often eliminates the need for the fund to take gains. What's the impact of ordinary investors' buying shares from each other?

    With this design, buying and selling by one investor doesn't result in tax consequences for the rest of the fund because the ETF doesn't have to sell securities to pay off departing investors. ETFs allow investors to be "isolated from the actions of other investors," says Ryan Issakainen, ETF strategist for ETF sponsor First Trust Advisors LP. And, because the cost of trading is borne by the individual investor, securities-transaction costs for the fund itself are low. How do in-kind transactions affect a fund's tax efficiency?

    They allow ETF managers to make tax-wise decisions about which securities to distribute and whether to sell securities or distribute them in-kind.

    In industry parlance, ETFs can internalize losses and externalize gains. That is, when an index change requires an ETF to get rid of a stock that has fallen in price since purchase, the fund can make the sale on the open market, collect the cash and take the capital loss on its books. If the fund is looking at a winning trade, the bias is to pass that stock out in an in-kind redemption—taking its low cost basis out with it, as well as any potential capital-gains tax bill.


    Continued in article

     


    In spite of the media hype about 9-9-9, I think it's safe to assume there won't be serious tax reform in the near future.

    If tax reform swaggered into a Luckenbach, Texas saloon, it would be "all hat and no horse"
    The ladies of the night would die laughing at that "itty-bitty thang" that walked in
    And it would need a ladder to peek over the top of the spittoon

    My point is that you probably should plan your financial future on the present mess we call the Tax Code. In this regard, you might like to learn about one of the best helper sites around.

    Tax Helpers
    October 22, 2011 message from Scott Bonacker (himself a professional CPA tax expert)

    It is hard to prioritize the things that are important to tax preparers, not the least of which are these: keeping up with current developments and improving understanding of the principles of taxation.  Single sourcing is one way we do it, and for that reason the commercial tax services provide
    extensive editorial content and regular newsletters and updates.

    There is also a considerable amount of information and thought that is available for free on the internet if you know where to find it. So much, that it is difficult sometimes to filter the choices to the ones that can make a valuable contribution.

    Email study groups are one way, and blogs are another. One of those is the 21st Century Taxation blog by Professor Nellen.

    Professor Nellen is a tax professor and director of the MS Taxation Program at San Jose State University, and her blog is frequently updated with intelligent commentary and links to resources.

    Her experience as a teacher shows as Professor Nellen will often point out an event or an article or a circumstance and then describe how she sees it in relation to current events or professional practice. Her blog posts provide analysis and links to allow the reader to look into things in more
     depth, and many times they close with a question - "What do you think?"

    A prolific writer, Professor Nellen maintains a personal website -

    http://www.21stcenturytaxation.com/

    Professor Nellen's academic page at San Jose State University - http://www.cob.sjsu.edu/nellen_a/  is also a large repository of useful information.

    Since most of us are in the business of tax planning and preparation we also become involved in explaining and discussing relative advantages and disadvantages of the options that are available now. Then there is also the potential for future alternatives.  Professor Nellen's collection of articles and analysis of tax reform information can be a very important addition to the resources available to a tax professional.

    I saw an email tagline that said something about experts knowing where to find answers. First you have to recognize that there may be an issue. What
    are your sources of information?

    Scott Bonacker CPA
    Springfield, MO


    IRS Telephone Tax Map
    March 12, 2010 message from Scott Bonacker [lister@BONACKERS.COM]

    http://taxmap.ntis.gov/taxmap/

    About IRS Tax Map

    IRS Tax Map began in 2002 as a prototype to address the business need for improved access to tax law technical information by our telephone assistors. Tax Map is built on two technologies: semantic integration and the Topic Maps international standard (ISO/IEC 13250).

    Background

    IRS began implementing standard markup languages and creating structured content for our tax law information in the late 1980s. XML/SGML has allowed IRS to standardize document syntax and structure but additional standards were needed to integrate our information sources. IRS chose the Topic Maps international standard for IRS Tax Map.

    IRS Tax Map

    IRS Tax Map is a web presentation of an underlying "topic map", best understood as a kind of subject-oriented database — a database designed to organize information around subjects of interest to taxpayers. Each subject has a "topic page" in Tax Map. This page provides central access to everything that Tax Map knows about the subject. It may have links to the topic pages of related topics, as well as to relevant forms, instructions, and publications.

    The Tax Map production process adapts to the different kinds of information produced by the various groups at IRS, and incorporates input and feedback from IRS Tax Specialists and Tax Map users. Adherence to the principles of the ISO Topic Maps standard protects the value of this knowledge, allowing it to be exploited and maintained under changing conditions.

    For more information on the Topic Maps international standard see Cover Pages hosted by OASIS and the ISO working group maintaining the standard. For additional information or comments on IRS Tax Map email us at: topicmap@irs.gov

    Bob Jensen's taxation helpers are at
    http://faculty.trinity.edu/rjensen/bookbob1.htm#010304Taxation


    Where do you find help with taxes?

    Start with the IRS links shown above. These services are free from the IRS.
    Especially note the IRS Taxpayer Advocate Service --- http://www.irs.gov/advocate/index.html
    Taxpayer Advocate Service. --- http://www.irs.gov/advocate/index.html 
    IRS Site Map --- http://www.irs.gov/sitemap/index.html

    IRS Telephone Tax Map --- http://taxmap.ntis.gov/taxmap/

    TaxSites.com (links to tax news sites) --- http://www.taxsites.com/help.html

    Check with you local or state Society of CPAs. These societies often provide links to free local taxpayer assistance helpers.
    Links for U.S. states and territories can be found at http://www.aicpa.org/Legislative+Activities+and+State+Licensing+Issues/State+News+and+Info/States/info/index.htm
    or just Click Here

    There are thousands of commercial taxpayer assistance companies, attorneys, and accountants that charge fees and deal with varying levels of tax problem complexities. Be sure to investigate the credentials and reputations of these service providers. There are many fraudulent taxpayer serivice firms --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#TaxScams
    Unless the provider has an established reputation, don't deal over the phone or the Internet. A local provider should have an office and an address other than a postal box. Taxpayer assistance is an area where you may not get what you pay for.

    There are some helpers for obtaining professional services at http://faculty.trinity.edu/rjensen/fees.htm

    A U.S. Treasury Department site where tax professionals go for news and updates --- http://www.treasury.gov/topics/taxes/

    Custom Google searches of tax sites --- http://www.taxsites.com/

    Will Yancey earned an accountancy PhD at the University of Texas and then served on the faculty at TCU for six years as a tax professor. While at TCU I was impressed by his early-on Web site of taxation helpers. His Web site was recognized in The CPA Journal, Technology Section, "Website of the Month: WillYancey.com", December 2004, page 60. Will Yancey no longer maintains the detailed taxation part of his Web site but links to a tremendous taxation helper site started by an avid hunter and professor at the University of Northern Iowa, Dennis Schmidt, that was later sold for big bucks to a commercial outfit --- http://www.taxsites.com/help.html

    A Special Tribute to My Open Sharing Friend Will Yancey ---
    http://faculty.trinity.edu/rjensen/Yancey.htm


    "2012 tax software survey:  Which products and features yielded frustration or bliss?" by Paul Bonner, Journal of Accountancy, September 2012 ---
    http://www.journalofaccountancy.com/Issues/2012/Sep/20125667.htm

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation 

     


    AccountingWeb's 2009 Tax Software Review for Professionals, November 2009

    Featured Tax Software

    ·         ATX

    ·         CrossLink

    ·         Drake

    ·         GoSystem Tax RS

    ·         Great Tax

    ·         Intuit ProLine Lacerte Tax

    ·         Intuit ProLine ProSeries

    ·         Intuit ProLine Tax Online Edition

    ·         Orange Tax Suite

    ·         ProSystem fx Tax

    ·         TaxACT

    ·         TaxWise

    ·         TaxWorks

    ·         UltraTax CS

    Bob Jensen's accounting software helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware 


    Accounting and Tax News --- http://faculty.trinity.edu/rjensen/AccountingNews.htm

    Tax Foundation Facts & Figures (Free) ---
    http://taxfoundation.org/files/ff2012.pdf

    TickMarks (tax blog) --- http://tickmarks.blogspot.com/

    "Unemployment taxes may double or even triple in 2010," AccountingWeb, December 17, 2009 ---
    http://www.accountingweb.com/topic/tax/unemployment-taxes-may-double-or-even-triple-2010


    Case Studies in Gaming the Income Tax Laws
    http://www.cs.trinity.edu/~rjensen/temp/TaxNoTax.htm

    Effective Tax Rates Are Lower Than Most People Believe
    "Measuring Effective Tax Rates," by Rachel Johnson Joseph Rosenberg Roberton Williams, Urban-Brookings Tax Policy Center,  February 7, 2012 ---
    http://www.taxpolicycenter.org/UploadedPDF/412497-ETR.pdf

    The American Dream ---
    http://www.cs.trinity.edu/~rjensen/temp/SunsetHillHouse/SunsetHillHouse.htm

    American Dream --- http://en.wikipedia.org/wiki/American_Dream
    Often the goal of an American Dream is not so much betterment of your own life but betterment of the lives of your children and grandchildren.
    The Hendersons featured in this article have two of their own girls plus a girl and boy that they adopted in China.

    Could it be that tax revisionists in Denmark are beginning to anticipate (by reducing tax rates)
    value added from something like an American Dream being introduced in Denmark?

    Does the American Dream add more good than harm?

    A Message from Jim Peters on the AECM

    A couple of years ago, 60 minutes interview a bunch of Danish citizens because the Danes had once again topped the international surveys as the happiest people on earth. Americans, as with most international measures, were somewhere in the middle of the pack. The Dane's advice to Americans was to dump the American Dream because it caused more harm than good. The core of the American Dream seems to be equating wealth to happiness and setting off on a constant quest for more wealth. The Danes advice was to focus more on non-economic sources of happiness and learn to appreciate what you have.

    Obviously, all this is an anathema to Americans and some of the reaction to the Dane's comments included epithets like "losers" and "hippies." But, the fact is that they are happier than Americans.

    Jim

    Jensen Comment
    I take issue with Jim's quoted phrase that the American Dream in America "caused more harm than good." In my opinion, most of what we have that is good in America was built in one way or another on somebody's American Dream, a somebody willing to take financial and even physical risks, work tirelessly to build or rebuild something (possibly making creative innovations along the way), and pass the fruits of entrepreneurial labor on so that other Americans can find jobs and other Americans can enjoy the goods and services provided by the American Dreams of others.

    Continued with pictures at
    http://www.cs.trinity.edu/~rjensen/temp/SunsetHillHouse/SunsetHillHouse.htm

     


    Investment Clubs, Hedge Funds, and Tax Implications

    Investment clubs commenced with friends in communities and/or work places that sometimes made social events out of studying investments and pooling small amounts of money in a fund that in turn was managed by the group as a whole ---
    http://en.wikipedia.org/w/index.php?title=Special%3ASearch&redirs=0&search=Investment+club&fulltext=Search&ns0=1

    I also think of an hedge fund as a much larger investment club where a professional investor generally manages the investments for a group of individuals who join that index fund. Hedge funds, like lower end investment clubs, do not sell shares in the club to the public in general. An advantage and a disadvantage of not going public is that such funds, until recently, are not subject to state and Federal securities laws and SEC oversight, although since the adverse publicity (read that Madoff Hedge Fund) of the failed attempts are being made by lawmakers to rein in on hedge funds --- http://en.wikipedia.org/wiki/Hedge_fund
    The Madoff Hedge Fund turned out to be the largest Ponzi Scheme in the World (aside from the Social Security Fund of the U.S. which is a Ponzi scheme not yet shut down).

    Investment Club Software ---
    http://en.wikipedia.org/wiki/Investment_club_software

    An Investment Club Helper Site ---
    http://investmentclubsonline.com/result.php?Keywords=Investment%20Clubs
    Note that investment clubs should understand state and local tax laws regarding investment club returns and liquidations.

    IRS Publication 550 (2008), Investment Income and Expenses
    http://www.irs.gov/publications/p550/index.html

    Abusive Tax Scheme Investigations - Fiscal Year 2009 ---
    http://www.irs.gov/compliance/enforcement/article/0,,id=187267,00.html

    Bob Jensen's investment helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#WebsitesForInvestors


    When the homeowner mortgage deduction hurts versus helps a local real estate market
    "Study finds key tax break has adverse effect on homeownership, social welfare,"  by Greg Tammen, PhysOrg, March 30, 2011 ---
    http://www.physorg.com/news/2011-03-key-tax-adverse-effect-homeownership.html 

    The American dream of owning a home with a white picket fence may stay a dream for many, according to a recent study by a Kansas State University economist.

    Tracy Turner, associate professor of economics at K-State, and Christian Hilber, a professor at the London School of Economics in the United Kingdom, completed a study on America's mortgage interest deduction and how effectively it promotes homeownership.

    The mortgage interest deduction, also called the MID, is the second largest tax break in the federal tax code and is meant to promote homeownership by allowing itemizing homeowners to deduct the annual interest payments they make on their primary residence and second home real estate loans. For the 2011 fiscal year, the deduction will account for an estimated $104.5 billion in revenue loss for the U.S. Treasury.

    However, since the Reagan administration, the deduction has been viewed as a vehicle for promoting homeownership, Turner said.

    "In urban places suffering from neighborhood instability, underperforming schools, low social capital and poor governance, increasing homeownership rates may improve conditions in these communities. This is because when households own their housing, they have more of a stake in the success of their communities," Turner said. "But in these urban places the MID is doing the opposite; it's actually lowering the likelihood of owning a home."

    The duo's study analyzed household data collected from 1984-2007 by the Panel Study of Income Dynamics.

    Findings showed that the mortgage interest deduction boosts homeownership rates only in areas with an abundant housing supply, like the Midwest -- but only for higher-income households. In denser urban cities with limited housing available, the deduction actually has a negative impact, reducing homeownership and instead inflating housing prices.

    According to Turner, the finding is consistent with economic theory: tight land restrictions mean that the higher demand for owner-occupied housing – because of increases in the mortgage interest deduction -- will only bid up house prices without expanding the house stock, which in turn means higher down payments.

    Consequently, though households may be able to make monthly payments, low-wealth households can't afford the elevated down payment. These high house prices, and therefore higher transaction costs, also make homeownership a less attractive option to mobile households that may not be looking for a long-term purchase.

    Continued in article

    Jensen Comment
    Clearly the mortgage deduction issue gets confounded by other factors affecting the motivation to buy a home in a given neighborhood. In a great location with good schools, scenic views, ease of commuting, etc. one's investment in a home is more apt to make a capital gain as well as provide fine living while owning the home. In a rundown neighborhood with crime problems, poor schools, etc. an investment in a home is more apt result in a capital loss. Why buy a home in a neighborhood that you're trying to escape from as soon as you can afford better and/or as soon as you have school-age children?

    Hence the mortgage deduction motivation may not be as important as other factors driving incentives to own rather than rent.


    "What Can Taxpayers Do If They Can't Pay Their Taxes?" SmartPros, April 6, 2009 --- http://accounting.smartpros.com/x66196.xml 

    Are there options for Americans who cannot pay their taxes, due to their financial difficulties resulting from the down economy?

    According to Jim Keller, of Thomson Reuters, more taxpayers will face this challenge during the coming filing season. Taxpayers who fail to timely file and pay their taxes face penalties and interest charges. Not only that, says Keller, these folks can expect to come up against a more aggressive IRS. For example, the number of levies issued by the IRS increased by 1,608% from 2000 to 2007—from 220,000 levies to more than 3.75 million levies. A new factor that will play into taxpayer collections is that the IRS (as noted by IRS Commissioner Doug Shulman in a recent press release) has decided not to renew contracts with two private debt collection agencies but instead anticipates hiring more than 1,000 new collection personnel as IRS employees in fiscal year 2009.

    Fortunately, there are some options available to help taxpayers pay their balance due. Here’s a scenario of problem solving from Thomson Reuters:

    Let’s assume that Bob and Judy’s 2008 tax return shows unpaid tax of $5,000, but they don’t have the cash to pay the tax. First, they should not ignore the IRS—it will not go away. They should either file their return by the April 15 due date, or request a filing extension. Either way, the failure to pay the taxes due on April 15 will result in interest charges and a penalty for failure to pay of ½% per month on the unpaid balance (up to 25%) until the taxes are paid. But by filing or extending their return, they’ll avoid the more onerous late filing penalty of 5% per month on the unpaid balance (up to 25%) until the return is filed.

    If Bob and Judy don’t do anything by April 15th, but file the return and pay their taxes three months later, they’ll owe a failure to file penalty of $750. If they extend the return and then file it and pay their taxes three months later, they’d pay a failure to pay penalty of $75— $675 less than if no extension had been filed. “This shows how important it is to file or extend by April 15th even if you don’t have the money,” says Keller.

    Keller points out that getting an extension is pretty easy these days. Taxpayers no longer have to pay the balance due or sign the extension request for a valid six-month filing extension. However, the liability must be properly estimated and the amount due entered on the appropriate lines of the request, or the extension will be disallowed. “While doing so will avoid a failure to file penalty, interest and the failure to pay penalty will accrue from April 15 until the tax is paid,” he warns.

    Some taxpayers can qualify for an extension to pay the tax because of undue hardship, or because of a federally declared disaster, terrorist act, or military action. This type of approach would allow Bob and Judy to avoid the failure to pay penalty but not the interest charge. “However, hardship relief is difficult to obtain,” says Keller, “because of the restricted definition of hardship, and most taxpayers do not experience a federally declared disaster, like a hurricane or flood.”

    Financing the Payment

    Borrow from a bank or family. “Since the failure to pay penalty and interest applies to the late payment of tax, borrowing from a family member, bank, or other lender can be less expensive than paying penalties and interest to the IRS,” says Keller, pointing out that the IRS interest rate changes quarterly. For the first quarter of 2009, the underpayment rate is 5%. Tax penalties are nondeductible, and interest expense associated with an individual’s federal tax liability, whether paid to the IRS or to a commercial lender, generally is nondeductible personal interest.

    Home equity loan. If Bob and Judy can finance the tax payment with a home equity loan, the interest may be deductible for regular tax (but not AMT) purposes. A home equity loan is debt (other than acquisition debt) secured by a qualified residence. It generates deductible interest to the extent the loan doesn’t exceed the lesser of $100,000 ($50,000 for married filing separately), or the FMV of the residence less acquisition debt. There’s no limit on the number of qualified home equity loans a taxpayer can take out (as long as the loans collectively meet the $100,000/$50,000 or FMV limitation) and use of the debt proceeds is irrelevant unless they’re used to purchase or carry tax-exempt obligations.

    Credit card. Another option is paying the tax by credit card. Applicable finance charges (according to the credit card agreement) and processing fees will apply, but if Bob or Judy has a low interest rate card, these will be kept to a minimum until the balance is paid in full. While the interest on the credit card is nondeductible personal interest, some credit cards provide low rates, airline miles, or other incentives. For more information, go to the front page of www.irs.gov and type “paying tax by credit card” in the Search box.

    Request an Installment Agreement with the IRS. A final option is to request an installment arrangement from the IRS. Form 9465 is the application to the IRS requesting an installment payment arrangement. Once submitted, the IRS will notify the taxpayer within 30 days if the request is approved or denied, or if additional information is needed. The IRS would charge Bob and Judy a $105 fee for entering into the agreement, but that fee would be reduced to $52 if the direct debit option is selected, and can be reduced to $43 for certain low-income taxpayers.

    Under current administrative procedures, the IRS will approve installment agreements up to $25,000 (including tax, penalties, and interest) when the taxpayer agrees to pay the amount due in five years or less. Also, since Bob and Judy owe $25,000 or less, they can use the online payment agreement (OPA) application at www.irs.gov to request a payment agreement. This application is available to taxpayers who meet the $25,000 requirement, have filed all required tax returns, and are current with their tax payments. The OPA application would enable Bob and Judy to obtain a short-term extension of up to 120 days to pay, or request a longer monthly payment plan.

    Says Keller: The bottom line is that if you can’t pay taxes you owe on April 15, either file your return or file for an extension, and pay as much as you can to avoid penalties and interest. You can then work on a solution to pay the unpaid balance. “Never ignore the filing deadline,” says Keller.


    "Obama Plans ‘MyRA’ Retirement Savings Accounts" retirement accounts work," by Michael Cohn, Accounting Today, January 29, 2014
    http://www.accountingtoday.com/ad_includes/welcome.html

    President Obama introduced a new retirement savings vehicle that he called a “MyRA” in his State of the Union address on Tuesday evening, and the White House has followed up with more details on Wednesday about it.

    “Let's do more to help Americans save for retirement,” said Obama (see Obama Calls for Wage Increases and Tax Reforms in State of the Union). “Today, most workers don't have a pension. A Social Security check often isn't enough on its own. And while the stock market has doubled over the last five years, that doesn't help folks who don't have 401(k)s. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It's a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in."

    The White House press secretary's office said in a fact sheet it released Wednesday that MyRA would provide a new simple, safe and affordable “starter” retirement savings account that will be offered through employers to help Americans begin to save for retirement.

    The new product will be targeted to the many Americans who currently lack access to workplace retirement savings plans, which is usually the most effective way to save for retirement, the White House noted. It wsa created by executive action Wednesday, bypassing Congress.

    Unlike a 401(k), however, MyRA will offer “principal protection” so a saver’s account balance “will never go down,” the White House said. “The product will be offered via a familiar Roth IRA account, and savers will benefit from principal protection, so the account balance will never go down in value. The security in the account, like all savings bonds, will be backed by the U.S. government. Contributions can be withdrawn tax free at any time.”

    To make MyRA a more user-friendly, “portable” account, contributions will be voluntary, automatic and small. Initial investments could be as low as $25 and contributions that are as low as $5 could be made through automatic payroll deductions. “Savers have the option of keeping the same account when they change jobs and can roll the balance into a private-sector retirement account at any time,” said the White House.

    In addition, MyRA is expected to provide the same secure investment return currently available to federal employees. Savers will earn interest at the same variable interest rate as the federal employees’ Thrift Savings Plan Government Securities Investment Fund.

    MyRA is expected to be widely available to millions of lower- and middle-income Americans through their employers. It will be available to households earning up to $191,000 a year. The accounts will be offered through an initial pilot program to employees of employers who choose to participate by the end of 2014. “The accounts are little to no cost and easy for employers to use, since employers will neither administer the accounts nor contribute to them,” said the White House. “Participants could save up to $15,000, or for a maximum of 30 years, in their accounts before transferring their balance to a private sector Roth IRA.”

    New York CPA Reactions A group of New York State Society of CPAs members offered various reactions to the President’s MyRA proposal.

    “The concept sounds great and it has the potential to build a foundation for people to begin saving for their retirement,” said David Young, CPA, a member of the NYSSCPA’s Rochester Chapter. “The challenge could be in the implementation for the employers and employees. The cost of the implementation and administration may outweigh the benefit gained from the ‘My RA’ program.”

    Another NYSSCPA member, Catherine Censullo, a CPA and personal financial specialist from White Plains, N.Y., said she was concerned about the rate of return. “The bonds will have very small returns, which are not good for keeping up with inflation over the long term growth, but participants will not have to worry about losing their money invested,” she said.

    “My other concern is that it will be too easy to take the money back out, which may defeat the purpose of putting money away and not touching it before retirement,” Censullo added. ”What remains to be seen is how the plans will be structured and what the incentive will be for employers to participate in the plan.”

    Another certified financial advisor shared his concerns. “President Obama's "MyRA" is another simple-minded response to a serious problem afflicting our nation's citizenry,” said Daniel G. Mazzola, a certified financial analyst and CPA from Long Island, N.Y. “Is it appropriate to encourage people to invest in long-term Treasury bonds in a climate of historically low interest rates? Will the money deducted be placed in a separate account for each individual or a general trust fund like the Social Security Trust Fund with which the government has access and can use for general expenditures?”

    “Is the President unaware that it is relatively easy for a private sector worker to establish an IRA at a local bank or brokerage house?" Mazzola added. “Making it easier for people to set aside money for retirement is a small measure when compared to providing an overall environment in which they have an opportunity to be successful.”

    Auto-IRA Despite President Obama’s recent emphasis on issuing executive orders as a way to get around a gridlocked Congress, the White House said the administration would continue to work with Congress on the President’s existing proposals to make sure that all Americans can secure a dignified retirement. “While Social Security is and must remain a rock-solid, guaranteed progressive benefit that every American can rely on, the most secure retirement requires a three-legged stool that includes savings and pensions,” said the fact sheet. “That’s why the President is using his executive authority to create the ‘myRA’ and has already proposed to work with Congress on the following proposals to help Americans save for their retirement.”

    Those proposals, which depend on passage in Congress, include giving every employee access to easy, payroll-based savings through the “Auto-IRA.” Approximately half of all American workers do not have access to employer-sponsored retirement plans like 401(k)s, which puts the onus on individuals to set up and invest in an Individual Retirement Account, the White House noted. Up to 9 out of 10 workers automatically enrolled in a 401(k) plan through their employer make contributions, even years later, while fewer than 1 out of 10 workers eligible to contribute to an IRA voluntarily do so. The President’s budget will propose to establish automatic enrollment in IRAs (or “auto-IRAs”) for employees without access to a workplace savings plan, in keeping with a plan that he has proposed in every budget since he took office. Employers that do not provide any employer-sponsored savings plan would be required to connect their employees with a payroll deduction IRA. This proposal could provide access to one-quarter of all workers, according to a recent study.

    Workers would not be required to contribute to an Auto-IRA and are free to opt out. Employers would also not contribute. The plan would also help defray the minimal administrative costs of establishing auto-IRAs for small businesses, including through tax incentives, the White House pointed out.

    Continued in article

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    Teaching Case on Roth IRAs
    From The Wall Street Journal Accounting Weekly Review

    The Roth-IRA Math for 50-Somethings
    by: Walter Updegrave

    Sep 27, 2014
    Click here to view the full article on WSJ.com
     

    TOPICS: Individual Taxation, Roth IRA, Tax Planning

    SUMMARY: Roth IRAs have long appealed to investors in the early stages of their careers who expect to pay taxes at a higher rate in retirement. Research released recently by T. Rowe Price Group indicates that investors in their 50s and early 60s who pay taxes at a lower rate in retirement can fare better in a Roth, as well.

    CLASSROOM APPLICATION: The explanation in this article is appropriate for coverage of IRAs in an individual taxation course.

    QUESTIONS: 
    1. (Introductory) What is a Roth IRA? How does it differ from other IRAs?

    2. (Advanced) What are the advantages of Roth IRAs? With what group of people are Roths popular? Why?

    3. (Advanced) Who does the research suggest should consider contributing to a Roth? Why? People in what situations should make other choices? Please explain the reasons for your answer.

    4. (Advanced) What are the requirements for contributing to an IRA? Are you able to contribute to a Roth now? What are the advantages of contributing to a Roth IRA while you are young? After reading this article, will you be investing in a Roth IRA? Why or why not? What other investment options do you have?
     

    Reviewed By: Linda Christiansen, Indiana University Southeast

    "The Roth-IRA Math for 50-Somethings," by Walter Updegrave, The Wall Street Journal, September 27, 2014 ---
    http://online.wsj.com/articles/the-roth-ira-math-for-50-somethings-1411753083?mod=djem_jiewr_AC_domainid

    Roth IRAs have long appealed to investors in the early stages of their careers who expect to pay taxes at a higher rate in retirement.

    Older investors may also be tempted to use Roths to generate more retirement income than they could with a traditional individual retirement account or 401(k), even if they expect to pay taxes at a lower rate down the road.

    The strategy may work in some circumstances, but the advantage for those investors of saving with a Roth could be relatively small—and is no sure thing.

    Roths are essentially mirror versions of traditional IRAs and 401(k)s; each is designed to build retirement assets over time by putting money into stocks, bonds and other investments. With a traditional IRA or 401(k), you get a tax deduction upfront or invest pretax dollars. When you withdraw money later on, you pay taxes on the contribution and any investment gains.

    With a Roth, by contrast, you contribute after-tax dollars, and you can generally withdraw the contributions and any gains tax-free in retirement. Investors who expect their marginal tax rate to be higher in retirement can benefit, in particular, by in effect avoiding higher taxes in the future.

    Research released recently by T. Rowe Price Group, TROW +0.33% a major fund manager based in Baltimore, indicates that investors in their 50s and early 60s who pay taxes at a lower rate in retirement can fare better in a Roth, as well.

    Consider a hypothetical 55-year-old investor plugged into a spreadsheet supplied by T. Rowe Price. The investor pays taxes at the 28% rate and drops to a 25% rate after retiring at 65. The investor could end up with 8% more after-tax income during a 30-year retirement by contributing to a Roth instead of a traditional account.

    The advantage is smaller over the shorter term. If that investor contributes $6,500—the maximum for people 50 and older—to a Roth IRA and the $6,500 grows at 7% a year, he or she would have $12,786 after 10 years, which could be withdrawn without paying any tax.

    An investor who contributed the same amount to a traditional IRA—and who invested the tax savings in a separate taxable account—would end up with $12,566, or $220 less than with the Roth. Paying taxes on that separate account each year is what gives the Roth its advantage.

    But investors who want to capitalize on this advantage by choosing a Roth IRA or 401(k) over a traditional account should be aware of two important caveats.

    First, since the advantage is relatively small, it can take many years for an investment in a Roth to develop a meaningful edge over a traditional account if an investor will be moving to a lower tax rate in retirement.

    The hypothetical investor achieves the 8% increase in after-tax income in retirement by keeping the Roth IRA invested for 40 years, including the 10 years before retirement at 65 and the 30 years during retirement in which the money earns 6% annually and is gradually withdrawn.

    "I don't think you want to be banking on strategies that may require extreme time horizons for you to come out materially ahead," says Michael Kitces, director of planning research at Pinnacle Advisory Group in Columbia, Md.

    The second caveat is that an investor who expects to drop to a lower tax rate would need to contribute the maximum allowable amount to a Roth to take full advantage of the boost a Roth can provide.

    For example, if the hypothetical 55-year-old investor put just $4,000 into a Roth IRA, instead of the maximum $6,500, the investor would end up with 4% less after-tax income over a 30-year retirement than with a traditional account. The investor would have done better putting the equivalent amount of pretax dollars—$5,556, assuming a 28% tax rate—in a traditional account.

    The Roth might still be a worthwhile choice for such an investor. For example, an investor in a Roth IRA wouldn't have to take minimum distributions after age 70½ and pay tax on them, as the investor would with a traditional IRA.

    Continued in article


    "2010: The Year of the Roth Conversion?" by Rich Arzaga, Journal of Accountancy, January 2010 ---
    http://www.journalofaccountancy.com/Issues/2010/Jan/20091743.htm

    This year will be the Year of the Tiger, according to Chinese custom, but it also could be remembered by investors as the Year of the Roth Conversion, a decision that can have a large impact on investors’ ability to build wealth during their lifetime and preserve wealth for beneficiaries.

     

    Prior to 2010, anyone (except married taxpayers filing separately) with an annual adjusted gross income (AGI) of no greater than $100,000 could convert a traditional IRA to a Roth IRA. The AGI cap has prevented higher-income earners, a class of savers that might have benefited most from this strategy, from participating. However, under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) these previously ineligible taxpayers will be eligible to participate starting this year (including married but separate filers). In fact, there is an incentive to take action in 2010: Everyone who converts this year may defer and spread income recognition from the conversion over tax years 2011 and 2012. A conversion in 2010 thus could reduce the marginal tax rate and total taxes due on what otherwise would be a larger single-year distribution. The 10% penalty tax otherwise imposed on early or excess distributions from an IRA does not apply. A conversion could be an attractive retirement income and estate planning strategy for wealthy individuals and high-income earners who seek to reduce taxes later in life and transfer more wealth to beneficiaries tax-free. But like any other approach to income and taxes, this decision is eventually based on a set of sustainable assumptions and specific objectives of the taxpayer.

     

    ADVANTAGES OF A ROTH ACCOUNT

    A chief advantage of a Roth IRA is that it has more flexible rules concerning distributions. Also, taxpayers who are otherwise unable to contribute to a traditional IRA can take advantage of a Roth IRA’s appreciation free from tax on gains. Other advantages of a Roth IRA include:

     

    • In most instances, contributions can be withdrawn at any time without penalty. Earnings may be withdrawn without tax or penalty if the taxpayer is at least age 59½ and has held the Roth account for at least five years. Similar strategies that provide for tax-free growth and withdrawal are the IRC § 529 plans for college education and cash-value life insurance policies. Each has its strengths and limitations.
    • With a Roth IRA, there are no required minimum distributions (RMDs) like those that apply to traditional IRAs when the taxpayer reaches age 70½. For affluent families with sufficient resources for retirement income, the RMD can seem an unnecessary expense with a confusing formula. From a client’s perspective, eliminating RMDs can provide a great sense of relief from the annual hassle of calculating and managing these distributions.
    • Unlike with traditional IRA accounts, taxpayers can continue to contribute to a Roth IRA after reaching age 70½—also an attractive feature as Americans redefine retirement and continue to be industrious into later years. Starting in 2010, a retired couple can contribute $12,000 each year (including the “over- 50 make-up” amount) into Roth accounts. The AGI limits on regular contributions to a Roth IRA still apply, but it is possible to make nondeductible contributions to a traditional IRA and convert them to a Roth, regardless of AGI. These contributions grow free of income tax indefinitely, creating significant value for taxpayers as well as their beneficiaries.
    • A tax-diversified retirement distribution strategy also helps with Social Security planning. Up to 85% of Social Security benefits are taxable. When calculating modified adjusted gross income (MAGI) for Social Security purposes, taxpayers must include all taxable and tax-exempt income and 50% of their Social Security benefits, but not Roth IRA distributions. Having a Roth IRA to supplement retirement income can be very important in managing the taxability of Social Security benefits.

     

    IDEAL CONVERSION CANDIDATES

    Some taxpayers may benefit more than others from converting to a Roth IRA. Assuming there are no cash flow issues, risk management gaps, other tax planning considerations that need to be weighed against the benefit of a conversion, advance tax issues at play, or adverse legislative changes, taxpayers who stand to benefit the most are those who:

     

    • Are wealthy.
    • Seek to reduce estate settlement costs.
    • Won’t need to draw income from converted retirement accounts.
    • Are young, high-income earners.
    • Believe their tax bracket will be the same or higher in retirement, or more specifically, when they draw income from their qualified retirement accounts. The attractiveness of traditional IRAs and qualified retirement plans depends on the assumption that taxpayers will have a lower effective tax rate after retirement, when the deferred taxes on the savings will come due. Conversely, taxpayers whose tax rate seems more likely to be the same or higher in retirement might just as soon pay taxes on income now and accumulate tax-free gains. Consider the conversion comparison in Exhibit 1.

    Continued in article

    Bob Jensen's taxation helpers are at http://faculty.trinity.edu/rjensen/BookBob1.htm#010304Taxation

     


    Question
    Where can you find facts about taxation?

    October 7, 2007 message from JOHN STANCIL [jstancil@VERIZON.NET

    I realize that the IRS is pretty tight with its data, even in aggregated form. However, does anyone know if there is an internet source where you can obtain certain tax facts – such as the amount of charitable contributions claimed on individual returns, the dollar amount of earned income credit, the amount of productive activity deductions taken on a year to year basis?

    Any help would be appreciated.

    John Stancil
    Florida Southern College

    October 8, 2007 reply from Bob Jensen

    When in doubt, always start with Wikipedia --- http://en.wikipedia.org/wiki/Taxation 
    It goes without saying that you must be suspicious of questionable items in any Wikipedia module. However, the above link is quite good on this topic. As with most Wikipedia modules, both the Reference (Notes) links and the Discussion sections are very important.

    The Notes section (near the bottom) in this case leads to OECD sites such as the National Accounts site ---
    http://www.oecd.org/topicstatsportal/0,2647,en_2825_495684_1_1_1_1_1,00.html 

    OECD Factblog --- https://community.oecd.org/community/factblog?view=overview

    OECD Factbook eXplorer --- http://stats.oecd.org/oecdfactbook/

    Education Today: The OECD Perspective ---
    http://www.oecd.org/document/57/0,3343,en_2649_33723_42440761_1_1_1_1,00.html

     

    The Discussion tab (near the top) leads to an extensive table of contents of discussions.

    Here are a few other sites to check out:

    Bob Jensen’s statistical data links --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics 

    FirstGov --- http://www.fedworld.gov/firstgov.html 

    Great IRS site links (not necessarily data table links):

    The Individual Complete Report Publication contains complete individual income tax data. The statistics are based on a sample of individual income tax returns, selected before audit, which represents a population of Forms 1040, 1040A, and 1040EZ, including electronic returns. --- Click Here

    FAQs and answers --- http://www.irs.gov/faqs/index.html 

    Tax Fraud Alerts from the IRS --- http://www.irs.gov/compliance/enforcement/article/0,,id=121259,00.html 

    Tax Scams --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#TaxScams 

    Bob Jensen's taxation helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


     

    Ten Highest and Ten Lowest States in Terms of Taxpayer Liability
    A Lot of Taxpayers in the South Pay Zero Taxes (Non-Payers)  Due to Credits, Deductions, and Poverty

    Source:  Scott A. Hodge, Tax Foundation, May 24, 2010 ---
    http://www.taxfoundation.org/publications/show/26336.html
    According to the latest IRS figures for 2008, a record 52 million filers—36 percent of the 143 million who filed a
    tax return—had no tax liability because their credits and deductions reduced their liability to zero.
    Indeed, tax credits such as the child tax credit and earned income tax credit have become so generous
    that a family of four earning up to about $52,000 can expect to have their income tax liability erased entirely.


    Controversial Tax Court Decision on Tuition Deductions
    How One Woman Went to Tax Court and Won Deduction

    January 11, 2010 message from Davidson, Dee (Dawn) [dgd@MARSHALL.USC.EDU]

    Nurse Outduels IRS Over M.B.A. Tuition

    How One Woman Went to Tax Court and Won Deduction http://online.wsj.com/article/SB10001424052748703535104574646582965101664.html?mod=WSJ_latestheadlines 

    By LAURA SAUNDERS A Maryland nurse accomplished two rare feats in her battle with the Internal Revenue Service: She defended herself against the agency's lawyers and won, and she got a ruling that could help tens of thousands of students deduct the cost of an M.B.A. degree on their taxes. The U.S. Tax Court handed Lori Singleton-Clarke her victory last month, saying the 47-year-old Bryantown, Md., woman had properly deducted nearly $15,000 in business school tuition. The Tax Court ruling should make it easier for many other professionals to deduct the expense of a Master in Business Administration degree.

    dee davidson
    Leventhal School of Accounting
    Marshall School of Business
    University of Southern California

    January 11, 2010 reply from Ramsey, Donald [dramsey@UDC.EDU]

    To get to the essence of this concept, you really need to read the case at

    http://www.ustaxcourt.gov/InOpHistoric/SINGLETON-CLARKE.SUM.WPD.pdf 

    The degree in question was an MBA with a concentration in Health Care Administration, from the University of Phoenix. The tax court held that the degree did not qualify her for a new occupation, but did enhance her skills in her existing job.

    An interesting observation was that sometimes an MBA does qualify one for a new occupation, but not always. The court also noted that the MBA does not lead to any particular professional license.

    I suppose an MBA with a concentration in accounting might be construed as leading to a professional license, and likely so would an MAcc. Such graduates, of course, are not all necessarily intending to seek the CPA, but if they do sit for the CPA exam I suppose that would likely disqualify the deduction even though the individual might continue working as an accountant.

    Cheers,

    DR

    (A message from Pod L, 7L13, of the UDC temporary satellite station in the Intelsat Building) Donald D. Ramsey, CPA, Department of Accounting, Finance, and Economics, School of Business and Public Administration, University of the District of Columbia, 4200 Connecticut Ave., N. W., Washington, D. C. 20008. (202) 274-7054.

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/BookBob1.htm#010304Taxation


    Free Tax Tutorials for Professors and Students
    Tax Analysts, a non-profit pubic service organization that provides in-depth tax information resources for tax professionals, has announced it is making its news and research products available at no charge to accounting, law, and economics professors and their students.
    AccountingWeb, June 28, 2007 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=103676

    See http://taxprof.typepad.com/taxprof_blog/files/tax_analysts_campus.pdf

    Free accounting and tax course materials are linked at http://faculty.trinity.edu/rjensen/Bookbob1.htm#Materials


    The Journal of Accountancy has many free accounting and tax helpers ---
    http://www.aicpa.org/pubs/jofa/joahome.htm


    Free Tax Software for Low Income Individuals
    Free File Alliance --- http://en.wikipedia.org/wiki/Free_File_Alliance

    "TurboTax Customers Angry Over Change In Tax Return Software," CBS News via Paul Caron, TaxProf Blog, January 14, 2015 ---
    http://taxprof.typepad.com/taxprof_blog/2015/01/turbotax-customers-angry-.html

    Changes to the popular tax program, TurboTax, has some customers mad.

    “People are just livid. They feel deceived,” says consumer advocate Edgar Dworsky. “They feel they’ve used this product for so many years, they’ve trusted it, and now they’re being sandbagged.” Dworsky is a TurboTax customer unhappy after Intuit, the maker of TurboTax, changed the deluxe version of the popular tax preparation software product.

    The changes require customers to upgrade to more expensive versions if reporting investment, self-employment, or rental income — costing an extra $30 to $40 — and surprising many long-time Turbo customers. “Imagine their surprise when they get halfway through doing their taxes and there is a roadblock in the program that says you have to upgrade,” added Dworsky.

    “It can be viewed as a bait and switch, yes,” Prof. Bryan Menk told KDKA money editor Jon Delano on Tuesday, “because people were not accustomed to this limitation in a prior year.” Menk teaches taxation at Duquesne University and uses TurboTax himself.

    Jensen Comment
    Reminds me of the time TurboTax tried to stick it to users who fought back with a boycott that led to changed pricing by TurboTax in 2008.
    In other words the consumer boycott worked in 2008.

    Sounds to me like it's time for another boycott.

    2008 TurboTax Boycott
    Tax Software Boycott of TurboTax Begins:  I'll Bet You Can't Find the Hidden Fees Disclosed on the TurboTax Website
    Note that this was back in the time when most taxpayers mailed in hard copy printouts of their tax returns. It was common to by one copy of TurboTax and then file returns for other members of the family such as when a married couple filed separate returns.

    Users are not complaining about the functionality of TurboTax. The problem, as they see it, is with pricing changes. For the first time, TurboTax producer Intuit started charging users an additional $9.95 for each additional return whether they print or e-file. Also, readers complain that the 2008 software costs more at checkout, jumping from $44.95 to $59.95. (However, when AccountingWEB went on Amazon, the software could be had at the discounted price of $54.99.) . . . One reviewer seemed to be issuing a battle cry by writing, "Time to start the boycott." Another reviewer had criticism of a more personal nature: "You should fire the person who came up with pay to print!" Of the 182 product reviews as of the evening of December 9, 2008, 171 of them were one-star reviews and only five were five-stars, the highest rating. Of the five five-star ratings, one user named Fernando Ortega said TurboTax is still the best, pointing out that he doesn't have to enter all of his personal information and previous returns manually.
    "TurboTax turmoil: Online reviews pan the top selling software," AccountingWeb, December 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=106620

    Bob Jensen's taxation helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

    Jensen Comment
    H&R Block did not raise the 2008 software fee and had no additional user fee --- http://newsblaze.com/story/2008120913262200003.mwir/topstory.html
    I shifted to TaxCut years ago and have never regretted doing so --- http://www.hrblock.com/taxes/products/software/index.html
    Maybe it's just me, but I prefer to buy TaxCut in the box at Wal-Mart so that I have a CD for each year to file away. I prefer not to download the software directly, although download updates are free and easy to install.

    It has been popular in the past for a person to file his or her tax return and then use the same software for filing the tax returns of children or parents. No longer will this be possible for free from TurboTax. Presumably the add-on fee has to be paid when spouses file separate returns rather than a joint return. Turbo Tax along with other popular tax software for individuals does participate in the Free File Alliance for taxpayers having less than $54,000 adjusted gross income. This is only  free tax software for the Federal Return, but the accompanying TurboTax State Return costs $26 so all is not free if you need to file both a State and Federal Return using Turbo Tax.

    The new additional return fee irks taxpayers in 2008 just like the TurboTax activation fee in 2003 really irked taxpayers --- http://www.pcmag.com/article2/0,1895,821308,00.asp

    What irks me is how hard it is at the TurboTax Web site about this $9.95 additional return fee. It's almost like TurboTax is playing a game to make it easier to drop the fee if the boycott really becomes serious.

    Another thing that irks me with the TurboTax Web site is that it highlights that users can get a free edition of TurboTax and allows users to start filling in the information. Then it suddenly springs on the purchase fee along the way for users who will have an adjusted gross income above $54,000 after they have started preparing their return. This essentially wastes their time if they decide not to order the Turbo Tax software for $59 directly from TurboTax. For example, someone who decides to pay $54 from Amazon essentially has to start over preparing the return. I think hiding the $54,000 AGI maximum is highly unethical on the part of the TurboTax Website.

     


    "Users Grade Tax Software," by Stanley Zarowin, Journal of Accountancy, October 2007 --- http://www.aicpa.org/pubs/jofa/oct2007/tax_software.htm

    2008 Professional Tax Software as Listed in a November 7, 2008 Accounting Web Newsletter

    Featured Tax Software

    2008 Update from WebCPA --- http://www.webcpa.com/article.cfm?articleid=29425

    From the Journal of Accountancy Smart Stops on the Web in 2008

    A TAX TOOLBOX
    www.irs.gov/taxpros/article/0,,id=118004,00.html
    This Smart Stop from the IRS provides a host of basic tools for tax professionals, handily compiled onto one page for easy access. The information ranges from recent tax law changes to standards of practice and Circular 230 information to the contact info for the Taxpayer Advocacy Panel (see “The Taxpayer Advocacy Panel: An Opportunity to Collaborate With the IRS,” JofA, Sept. 08, page 68). The page contains a host of publications on representing clients before the IRS, as well as requesting client transcripts and copies of their tax returns. Also look under “IRS Collection Tools and Your Clients Rights” for rules on representation and disclosure and Offer in Compromise guidelines.

    HOMEBUYERS TAKE NOTE
    www.federalhousingtaxcredit.com
    Visit this new site from the National Association of Home Builders for an overview of the Housing and Economic Recovery Act of 2008, which authorizes a tax credit for qualified first-time buyers purchasing homes before July 1, 2009. The “Frequently Asked Questions” page answers both general and technical questions regarding the credit, or click on “The Law’s Other Provisions” to go beyond the act’s tax credit provisions and learn about its implications for property taxes, mortgage revenue bonds and Federal Housing Administration modernization. If you’re still looking for information, the “Home Buyer Resources” page hosts a list of links to helpful government Web sites, including state and local homebuyer assistance programs.

     

    Bob Jensen's tax helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

    Bob Jensen's accounting software helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware


    "Faculty Members Given Laptops May Incur Taxes, by David Shieh, Chronicle of Higher Education, January 7, 2008 --- http://chronicle.com/wiredcampus/article/3541/faculty-members-given-laptops-may-incur-taxes?utm_source=at&utm_medium=en


    From Smart Stops on the Web, Journal of Accountancy, October 2007 --- http://www.aicpa.org/pubs/jofa/oct2007/smart_stops.htm

    TAX

    BIG RESOURCES FOR SMALL BUSINESSES
    www.irs.gov/businesses/small

    Whether you own a small business or work for one, this IRS site sorts out tax-related information so you don’t have to. There’s an A–Z index that lets you search by business type or by subject. It lists the necessary forms for each and links to information on starting up, closing down and everything in between. You also can sign up for the “e-News for Small Businesses” electronic newsletter or download complimentary tax products, including tax calendars and videos. And, of course, there’s plenty of guidance on e-filing and forms for both small businesses with employees and the self-employed.

    CONSTRUCTIVE CRITICISM
    www.improveirs.org

    Got a beef with the IRS? The Taxpayer Advisory Panel, a federal advisory committee established under the authority of the Treasury Department, is a group of volunteers working to improve the Service. Its Web site features a comment box and phone number where citizens can make suggestions. You can also view taxpayer suggestions that have become proposals, which range from the general (improving the quality of customer service), to the picky (adding lines to forms) to the technical (expanding the third-party authorization On The Web time frame). Want to join the panel? There’s information on becoming a member in the FAQ section.

    KNOW THE LAW
    http://tax.cchgroup.com/legislation

    Turn to this site for coverage of new tax legislation and analysis of its impact on taxpayers and tax professionals, plus comments on proposed tax law reform. Click on the “Full CCH Coverage Here” links for access to “Tax Briefing” PDFs, which include in-depth analyses of the legislations’ tax credits, deductions and effective dates. The site also offers “Quick Tax Facts” PDFs for several pieces of legislation, including the Small Business and Work Opportunity Act of 2007; Tax Relief and Health Care Act of 2006; and the Pension Protection Act of 2006.


    Methodology to Identify Small Businesses and Their Owners
    Department of the U.S. Treasury
    Technical Paper 4
    August 2011 --- Click Here
    http://www.treasury.gov/resource-center/tax-policy/tax-analysis/Documents/OTA-T2011-04-Small-Business-Methodology-Aug-8-2011.pdf

    Comments from Paul Caron on August 9, 2011 ---
    http://taxprof.typepad.com/

    The Treasury Department's Office of Tax Analysis has released Methodology to Identify Small Businesses and Their Owners:

    Due to data constraints and the lack of clear definitions, prior analyses of the tax code’s impact on small business owners were flawed. In this paper, we develop a methodology to define and identify small businesses. We then apply that methodology to a new data source to identify the individual owners of those small businesses. Having matched owners to their small business entities, we present tabulations that detail various tax characteristics of small businesses and their owners for tax year 2007. ...

    For tax year 2007, our previous methodology counted 34.7 million filers reporting $662 billion of net flow-through business income as small business owners. Using our revised methodology, we count 20.0 million filers reporting $376 billion of net business income as small business owners under a broad measure of small business owner. Under our narrow definition, we count 9.4 million filers reporting $335 billion of net business income as small business owners.


    From Smart Stops on the Web, Journal of Accountancy, July 2007 --- http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm
     

    THE BLOGGING PROFESSOR
    http://taxprof.typepad.com

    This Smart Stop provides a daily dose of tax news, papers and court judgments. Professor Paul Caron of the University of Cincinnati College of Law updates the site frequently with a balance of academic and practical items, ranging from IRS reports to details on upcoming tax conferences. CPAs can use the topical archive to find posts by subject tag. Caron’s site is part of the Law Professor Blogs Network (see “Smart Stops on the Web,” JofA, Oct. 06, page 27), which hosts a variety of academic blogs on securities, banking, nonprofits and trusts.

    Free Video Helpers
    From Smart Stops on the Web, Journal of Accountancy, July 2007 --- http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm

    TAX ON THE TUBE
    www.taxtalktoday.tv

    Billed as “The Tax Show for the Tax Pro,” this IRS-sponsored site hosts live programs featuring tax experts and professionals on the second Tuesday of the month, with video, podcasts and transcripts of programs available from the previous 12 months. Visit the “Program Resources” tab before airtime for links to workshops, forums and online tools on the month’s tax topic. CPAs can earn one CPE credit hour for every program watched or listened to (live or archived) as long as their state board accepts NASBA-sponsored programs—so it would be wise to check with your state board before buying credits.

    Question
    Where do you rank in terms of annual income and total net worth?
    Jensen Comment
    It may surprise you how many full professors are in the top percentiles in terms of academic-year salaries (before tax) plus supplementary income and how many senior professors have TIAA-CREF and other savings net worth in the top 10th percentile. The top fifty percent of income earners purportedly pay over 97% of all taxes (income, FICA, property, estate, gift, sales taxes, and other) collected from individuals in the U.S.
    You can read more about tax collections at http://www.askquestions.org/articles/taxes/

    "Where Do You Stand on America's Wealth Spectrum?" by Lee Eisenberg, Yahoo Finance, November 6, 2007 ---
    http://finance.yahoo.com/banking-budgeting/article/103815/Where-Do-You-Stand-on-America's-Wealth-Spectrum

    Annual income parking ramp
     
    Income level (percentile) Median income (rounded)
    Level VI (90 to 100) $170,000
    Level V (80 to 89.9) $99,000
    Level IV (60 to 79.9) $65,000
    Level III (40 to 59.9) $40,000
    Level II (20 to 39.9) $24,000
    Level I (less than 20) $10,000
    Source: Before-Tax Family Income, 2001 Federal Reserve Board Survey 

    So does making $170,000 a year make a person rich? Last year a plurality of respondents (29 percent) in a survey by The New York Times said that "rich" was making between $100,000 and $200,000 a year. Unfortunately, the survey didn't break out how many people in that salary range considered themselves rich. If the people I talk to are any indication, very few do.

    Of course, income is only one part of the equation defining where you stand. Net worth is more telling. Net worth, as every financially precocious schoolchild knows, is the sum of one's assets -- home equity, investments, savings accounts, retirement funds, cars, furnishings and such things as jewelry, furs, wine collection, old baseball cards -- minus all outstanding liabilities such as mortgage balance, revolving and credit card debt, college loans and so on. Across all households, the national median net worth is $86,000. Half of your fellow citizens have more than that, half less. As you see, there's a massive disparity between the haves and have-nots.

    Net worth parking ramp
     

    Net worth (percentile) Median net worth (rounded)
    Level VI (90 to 100) $833,600
    Level V (80 to 89.9) $263,100
    Level IV (60 to 79.9) $141,500
    Level III (40 to 59.9) $62,500
    Level II (20 to 39.9) $37,200
    Level I (less than 20) $7,900
    Source: Family Net Worth, 2001 Federal Reserve Board Survey

    We live in a country that once celebrated itself as egalitarian, yet 1 percent of the population -- nearly 3 million people -- currently has as much money as the 100 million people at the bottom of the ramp.

    Yet when I ask those at the top of the ramp how they feel about the future, whether their fortunate place on the ramp gives them a measure of confidence about it, they shake their heads. They give me a look that says, "What planet do you park on?"

    You and your broker If you're not parked near the top of the ramp, you're of little or no interest to financial services firms and financial advisers. There's no money to be made at these levels. Last year, a handful of Wall Street firms told their brokers they would no longer receive commissions on accounts holding less than $50,000. This effectively tells people with nano-Numbers to get lost. But for the Wall Street firms, there's gold on the floors above. The greater the household assets, the more fees and transaction costs can be extracted from an account. The result is a flood of advertising that captures a lifestyle so gloriously affluent it's enough to make everybody feel poor.

    Those who manage Numbers break customers down into innumerable segments to better target them through their marketing efforts. These segments take into consideration all the usual demographic characteristics, such as age, income and net worth. Other segmentation models define you according to psychographic qualities: personal interests, leisure-time activities, whether you are active or passive when it comes to managing your affairs -- including, for instance, how comfortable you are using a computer. Once a financial services company figures it has your Number, it will use what it thinks are the most effective channels to get its hands on it. It will place advertising in the magazines and newspapers you read and the television shows and Web sites you browse. And it will probe you incessantly through the mailbox, testing or selling financial products and services.

    The Number industry divides people on the top floors of the garage into three broad segments of wealth, each of which is nicely profitable.

    The biggest and broadest affluent segment consists of people with investable assets of between $200,000 and $1 million to $2 million. This group is sometimes referred to as mass affluent, and it would be fair to think of it as the meat and potatoes of the financial services business. If you're at the lower end of that range -- if you have, say, $300,000 in your accounts -- you're definitely of prime interest to the brokers and customer reps at Merrill Lynch, Smith Barney, Vanguard and the rest. But they need to be careful lest you cost them money.

    To assign a real live broker (oops, financial consultant) to a client who keeps too low a Number is tantamount to Safeway assigning a personal shopper to anyone who comes in to buy a quart of milk. Still, there are profitable ways for financial services firms to serve smaller customers: the telephone, assuming they can keep the calls short and to the point and, better still, the online channel, where self-service is highly cost-effective. This is not to say that firms aren't happy to see you walk into their investment centers for a quick hello and a fill-out-the-papers session. They'll shake your hand, put an arm around your shoulder, even pour you a cup of coffee. After that, the more you manage your own modest Number, the better for them and the more cost-effective for you.

    The next segment up from mass affluent is where the action gets white hot. This parking level belongs to those designated as high net worth individuals (or HNWIs). There are no universal criteria here. Generally, HNWIs have invested assets of at least $1 million, although some companies also target younger households with healthy six-figure incomes, knowing that their net worth is likely to reach target levels in the near future. Right now there are well over 7 million high net worth households in the United States, with a forecasted growth rate of 16 percent a year and projected assets of $32 trillion. Yum.

    If their marketing efforts are any indication, Wall Street firms see HNWIs as the happiest people in the world, no matter that so many of them are, rightly or wrongly, distressed over their long-term prospects. Distress is not what's pictured in the ads. The ads are filled with images of zippy seniors who flash large white teeth and incredibly healthy gums. They dance. They jog. They bike. They fish. They golf. They snuggle. According to the ads, life is a theme park expressly designed for the middle-aged. Graying boomers waltz across their living rooms, raise glasses to one another on the decks of ocean liners and exchange smiles secure in the knowledge that a surefire blue-steel erection is just a pill away. These ads remind us that we are living in the Golden Age of Aging. Not only are we younger and healthier than middle-aged people used to be, many of us would probably have been blind, disabled or dead by now had we had the bad luck to have been born just a tiny bit sooner.

    Valet parking If you've made it onto the top levels of the ramp -- say you have at least $5 million in investments -- you are deemed to be an ultra high net worth individual (or UHNWI). This is a very nice position to hold in life, all the sweeter thanks to recent federal tax cuts. People earning $10 million a year hand over a smaller percentage of their income to the government than those earning a tenth of that and -- to a great degree -- escape the "gotcha" snare of the alternative minimum tax, according to The New York Times. The treatment extended to a UHNWI approaches that accorded to royalty. As a UHNWI, you aren't offered a cardboard cup of day-old sludge from a Mr. Coffee machine. Now you qualify for a china cup of freshly brewed java from a gleaming French press. They'd better get another grinder or two. The Boston Consulting Group reports that 3,000 new households a year lay claim to $20 million or more in invested assets. Should you be among them, put your feet up and just whistle for service.

    If getting yourself to a firm's teak-paneled office is too much of a schlep, the investment advisers will high-tail it to you. They'll be more than delighted to take you to dinner at the best place in town and toast your success with the finest vintages on the menu. They go to this expense because they obviously respect your business prowess and find you personally charming. Mostly, though, they admire you for your assets. They will ply you with leather binders filled with laser-printed pie charts, bar graphs and three-dimensional wave diagrams. Over dessert, they will produce PowerPoint slides that show how your nest egg will incubate and eventually burgeon into a soaring phoenix that will carry your Number higher and higher, all thanks to their nurturing and personal attention.

    There is yet one more place to park, higher up and more exclusive still. This spot is for people for whom even discreet, private banking is déclassé. On this level of the ramp you forgo the wealth managers at even the toniest trust companies and rely instead on your own "family office," complete with its own in-house investment manager and staff.

    Typically, families with family offices have $100 million, $500 million, $1 billion, enough to blow off even the Lehmans, the Goldmans and the Northern Trusts of the world. At present, there are approximately 5,000 family offices around the country. Family offices are not for strivers -- at least not yet. But family offices may be going the way of fractional jets, shared yachts and high-end vacation-home clubs. People with only 20 million Numbers have begun to band together to create, in effect, multifamily offices to oversee their investments and estate planning.

    Back down on the street, though, it's another world. Most people have to circle the block, just looking for a way to get into the damn garage.

    Wikipedia has a great module on the history and theory of taxation --- http://en.wikipedia.org/wiki/Tax

    Who Pays America's Tax Burden, and Who Gets the Most Government Spending?
    by Andrew Chamberlain, Gerald Prante and Scott A. Hodge
    Special Report No. 151
    March 22, 2007
    Tax Foundation 
    http://www.taxfoundation.org/publications/show/2282.html

    Executive Summary
    While many studies answer the question of who pays taxes in America, the question of who gets the most government spending is often overlooked. Just as some Americans bear a larger portion of the nation's tax burden than others, some Americans also receive a larger share of the nation's government spending.

    This report summarizes the key findings of a comprehensive 2007 Tax Foundation study of federal, state and local taxes and government spending. The results show that when we consider the distribution of government spending as well as taxes, it provides a dramatically altered view of how U.S. fiscal policy affects Americans at different income levels than is apparent from the distribution of tax burdens alone.

    Overall, we find that America's lowest-earning one-fifth of households received roughly $8.21 in government spending for each dollar of taxes paid in 2004. Households with middle-incomes received $1.30 per tax dollar, and America's highest-earning households received $0.41. Government spending targeted at the lowest-earning 60 percent of U.S. households is larger than what they paid in federal, state and local taxes. In 2004, between $1.03 trillion and $1.53 trillion was redistributed downward from the two highest income quintiles to the three lowest income quintiles through government taxes and spending policy.

    These findings suggest tax distributions alone do not tell Americans how much the nation's fiscal system is helping or hurting low-income households. To answer that, we must look beyond tax burdens to government spending as well. Lawmakers who ignore the distribution of govern­ment spending risk making policy judgments based on an incorrect set of facts about the United States fiscal system.

    Jensen Comment
    Keep in mind that there are all sorts of definitional and externality problems when it comes to measuring how much is “received” from the government versus how much is “taxed.” For example, when a when the government provides each tobacco farmer with an allotment or quota on the amount of tobacco that can be grown per acre, the tobacco price is artificially increased without necessarily receiving a check from the government. The same thing happens to businesses and individuals who benefit from import or other quotas. The same thing could be accomplished by not having such allotment quotas and reimbursing farmers (from the government) for price differentials. Also the government may force direct transfer payments in the private sector in lieu of taxing and redistributing payments from Peter to pay Paul.


    "The Most Tax-Friendly and Unfriendly States For Business," by Charley Blaine, 24/7 Wall Street, October 11, 2013 --- Click Here
    http://247wallst.com/special-report/2013/10/11/the-most-tax-friendly-states-for-business-2/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=OCT142013A&utm_campaign=DailyNewsletter

    Jensen Comment
    There may be better ways to define "friendly" than in terms of business and individual taxes. For example, Texas did not make the tax-friendly list in comparison with Wyoming, Alaska, New Hampshire, and Nevada. Yet firms are flocking more to Texas that all of those other states combined. Being tax friendly does not trump such things as available workforce (yes Hispanics in Texas are good workers) and incentives provided by state and local governments. Location is important with Texas being a gateway to commerce south of the Rio Grande. Large airport hubs are important to attracting new businesses. This also gives Dallas and Houston an edge. And not having labor union strife is all-important which favors southern states relative to New England and New York.


    Our goal is for our economy to look more like Texas, and a lot less like California.
    Sam. Brownback, 2012 Governor of Kansas --- http://en.wikipedia.org/wiki/Sam_Brownback

    "The Heartland Tax Rebellion:  More states want to repeal their income taxes," The Wall Street Journal, February 7, 2012 ---
    http://online.wsj.com/article/SB10001424052970203889904577200872159113492.html#mod=djemEditorialPage_t

    Oklahoma Governor Mary Fallin is starting to feel surrounded. On her state's southern border, Texas has no income tax. Now two of its other neighbors, Missouri and Kansas, are considering plans to cut and eventually abolish their income taxes. "Oklahoma doesn't want to end up an income-tax sandwich," she quips.

    On Monday she announced her new tax plan, which calls for lowering the state income-tax rate to 3.5% next year from 5.25%, and an ambition to phase out the income tax over 10 years. "We're going to have the most pro-growth tax system in the region," she says.

    She's going to have competition. In Kansas, Republican Governor Sam Brownback is also proposing to cut income taxes this year to 4.9% from 6.45%, offset by a slight increase in the sales tax rate and a broadening of the tax base. He also wants a 10-year phase out. In Missouri, a voter initiative that is expected to qualify for the November ballot would abolish the income tax and shift toward greater reliance on sales taxes.

    South Carolina Governor Nikki Haley wants to abolish her state's corporate income tax. And in the Midwest, Congressman Mike Pence, who is the front-runner to be the next Republican nominee for Governor, is exploring a plan to reform Indiana's income tax with much lower rates. That policy coupled with the passage last week of a right-to-work law would help Indiana attract more jobs and investment.

    That's not all: Idaho, Maine, Nebraska, New Jersey and Ohio are debating income-tax cuts this year.

    But it is Oklahoma that may have the best chance in the near term at income-tax abolition. The energy state is rich with oil and gas revenues that have produced a budget surplus and one of the lowest unemployment rates, at 6.1%. Alaska was the last state to abolish its income tax, in 1980, and it used energy production levies to replace the revenue. Ms. Fallin trimmed Oklahoma's income-tax rate last year to 5.25% from 5.5%.

    The other state overflowing with new oil and gas revenues is North Dakota thanks to the vast Bakken Shale. But its politicians want to abolish property taxes rather than the income tax.

    They might want to reconsider if their goal is long-term growth rather than short-term politics. The American Legislative Exchange Council tracks growth in the economy and employment of states and finds that those without an income tax do better on average than do high-tax states. The nearby table compares the data for the nine states with no personal income tax with that of the nine states with the highest personal income-tax rates. It's not a close contest.

    Skeptics point to the recent economic problems of Florida and Nevada as evidence that taxes are irrelevant to growth. But those states were the epicenter of the housing bust, thanks to overbuilding, and for 20 years before the bust they had experienced a rush of new investment and population growth. They'd be worse off now with high income-tax regimes.

    The experience of states like Florida, New Hampshire, Tennessee and Texas also refutes the dire forecasts that eliminating income taxes will cause savage cuts in schools, public safety and programs for the poor. These states still fund more than adequate public services and their schools are generally no worse than in high-income tax states like California, New Jersey and New York.

    They have also recorded faster revenue growth to pay for government services over the past two decades than states with income taxes. That's because growth in the economy from attracting jobs and capital has meant greater tax collections.

    The tax burden isn't the only factor that determines investment flows and growth. But it is a major signal about how a state treats business, investment and risk-taking. States like New York, California, Illinois and Maryland that have high and rising tax rates also tend to be those that have growing welfare states, heavy regulation, dominant public unions, and budgets that are subject to boom and bust because they rely so heavily on a relatively few rich taxpayers.

    The tax competition in America's heartland is an encouraging sign that at least some U.S. politicians understand that they can't take prosperity for granted. It must be nurtured with good policy, as they compete for jobs and investment with other states and the rest of the world.

    "Our goal is for our economy to look more like Texas, and a lot less like California," says Mr. Brownback, the Kansas Governor. It's the right goal.

     

    Continued in article

    State Individual Income Tax Rates in the 50 States, 2000-2011 ---
    http://www.taxfoundation.org/taxdata/show/228.html
    On a per capita basis ---
    50-State Table of State and Local Individual Income Tax Collections Per Capita

    Comparison of Corporate Income Tax Rates in the 50 States ---
    http://www.taxfoundation.org/taxdata/show/230.html
    On a per capita basis ---
    http://www.taxfoundation.org/taxdata/show/281.html
    This is a little misleading since many states like Illinois give their largest corporate employers "Get Out of Tax Free" cards (or offsetting subsidies)

    State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, 2000-2010 ---
    http://www.taxfoundation.org/publications/show/245.html

    PBS Video:  What Do Tax Rates' Ups and Downs Mean for Economic Growth?
    http://video.pbs.org/video/2176062522
    Thank you Paul Caron for the heads up.

    Marginal Tax Rates Around the World --- http://www.econlib.org/library/Enc/MarginalTaxRates.html

    Bob Jensen's threads on taxation ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#Taxation

     

     


    Question
    How can you compare living costs between any two towns in the U.S.?

    The Salary Mess (causing faculty attrition rates) for Universities in Wisconsin
    The problem is money. Wisconsin's stagnating state higher-education budget has forced the university to keep faculty salaries far below average. When professors get feelers from elsewhere, they learn that a move can easily mean a whopping 100-percent salary increase — sometimes more. Budget problems have also depleted money for perks that keep faculty members on board — funds for research and travel, pay for summer months, reduced teaching loads, and longer and more frequent sabbaticals.
    Robin Wilson, "Wisconsin's Flagship Is Raided for Scholars," Chronicle of Higher Education, April 18, 2008, Page A1 --- http://chronicle.com/weekly/v54/i32/32a00103.htm

    Jensen Comment
    The problem is that analysts in general tend to compare average before-tax salaries and living costs. Although Wisconsin is slightly low in terms of state-supported university salaries, on an after-tax basis they are very low due to high taxes in Wisconsin.

    Wisconsin's State/Local Tax Burden Among Nation's Highest in 2007 --- http://www.taxfoundation.org/research/topic/67.html
    During the past three decades Wisconsin's state and local tax burden has consistently ranked among the nation's highest. Estimated at 12.3% of income, Wisconsin’s state and local tax burden percentage ranks 7th highest nationally, well above the national average of 11.0%. Wisconsin taxpayers pay $4,736 per capita in state and local taxes, and per capita state income is $38,639.
    Wisconsin's State-Local Tax Burden, 1970-Present

    On the other hand, some states that also pay lower than average faculty salaries are winners in terms of letting faculty keep more of their income. For example, consider Delaware:

    Delaware's State/Local Tax Burden Fourth Lowest in Nation in 2007 --- http://www.taxfoundation.org/research/topic/18.html
    Consistently over the past two decades, Delaware has had one of the nation’s lowest state and local tax burdens. Estimated at 8.8% of income, Delaware’s state-local tax burden percentage ranks 47th highest nationally, well below the national average of 11.0%. Delaware taxpayers pay $3,804 per-capita in state and local taxes, and per capita state income is $43,471.
    Delaware's State-Local Tax Burden, 1970-present

    States like New York, New Jersey, and California that have relatively high average salaries for their major research universities can be losers in terms of taxes and real estate costs. Real estate costs in those states are still high even after the bursting of the sub-prime bubble. High taxes are also bummers in Maine and Vermont. States like Florida that used to be good deals for taxes and real estate costs have seen property taxes and insurance costs soar.

    You may feed in the name of any state you choose and get state and local tax burden comparisons --- http://www.taxfoundation.org/research/topic/18.html

    You probably should go to the above site before comparing the average salaries (by faculty rank) of U.S. colleges and universities (public and private) that are listed in several sections of  Chronicle of Higher Education, April 18, 2008"

    If you are attracted to or turned off by the average salaries (by faculty rank) in a given school, don't forget to compare taxes and real estate costs. There are also other cost considerations like the cost of private schools in some urban areas that have low cost or dangerous public schools K-12.


    "States Where People Pay the Most (and Least) in Taxes," by Charles B. Stockdale, Michael B. Sauter, Douglas A. McIntyre, Yahoo Finance, July 21, 2011 ---
    http://finance.yahoo.com/taxes/article/113173/states-pay-most-least-taxes-247wallst

    Jensen Comment
    But we're only operating in the narrow range of 6.3% (Alaska) to 12.2% (New Jersey) for state and local taxes, including property taxes. One would hope that, by adding to a state's tax burden, the quality of education would be the result of higher taxes. This, however, is not the case for most states. For example, South Dakota comes in at Rank 3 with a very low 7.6% tax burden and manages to have one of the very best K-12 rural and urban education systems among the 50 states. Unfortunately, this does not extend to higher education in South Dakota. New Jersey has the highest taxation rate of 12.2% but does not get a whole lot of K-12 bang for the buck in terms of education compared with the low taxation states of South Dakota, New Hampshire, and Tennessee.

    The largest cities in the U.S. face the most daunting problems in K-12 education. Problems with rural versus urban may be greater than problems with high state taxation versus low state taxation. For example, rural New York has some very nice rural K-12 schools that exist apart from troubled NYC schools. On the other hand, rural Texas has some of the worst rural K-12 schools in the nation. Mississippi has some of the worst urban and rural schools in the nation, but Mississippi is neither a high nor a low taxation state total state and local taxation rankings. However, in terms of local property taxation, Mississippi has low property tax burdens. Quality of schools in rural communities correlates highly and negatively with degree of poverty in those communities. Quality of urban schools is more complicated. New York City and Chicago are quite wealthy and prosperous in ways that do not translate in to quality of K-12 inner city public schools. Minneapolis is less prosperous and wealthy but probably has somewhat better public schools. although in every large U.S. city the inner city schools are lower in quality than schools in their suburbs.

    Bob Jensen's threads on taxation are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#010304Taxation


    Best and Worst Run States in America — An Analysis Of All 50


    Read more: Best and Worst Run States in America — An Analysis Of All 50 - 24/7 Wall St. http://247wallst.com/2011/11/28/best-and-worst-run-states-in-america-an-analysis-of-all-50/#ixzz1frPOmNxB
     

     

    From the AICPA CPA Letter Daily on December 7, 2011
    For the second year, 24/7 Wall St. ranked the 50 states according to how well they are run. Factors included the state's financial health, standard of living, education system, employment rate, crime rate and how efficiently the state uses its resources to provide government services. 24/7 Wall St. determined that Wyoming is the best-run state and California is the worst run. 24/7 Wall St.
    http://247wallst.com/2011/11/28/best-and-worst-run-states-in-america-an-analysis-of-all-50/

    Jensen Comment
    The best-run state is Wyoming. The worst-run state is California  Most of the Top Ten best-run states have relatively low populations. Small seems to be better in terms of state government efficiency, although social programs and cold weather in those states tend to repel welfare and Medicaid recipients from around the nation. It's difficult to draw liberal versus conservative explanations for best-run states since liberal states of Vermont and Minnesota are mixed in the Top Ten along with the conservative states of Wyoming, Utah, and the two Dakota states.

    Minnesota has the least debt per capita, but the union-run state of Massachusetts has the most debt per capita. This is somewhat interesting because both Minnesota and Massachusetts are viewed as liberal states (more so in the days of Hubert Humphrey and Walter Mondale). The relatively conservative southern states tend to be below the median on state debt per capita. The western states are more variable. I accuse Taxachusetts of being union-run in part because Boston refuses to allow Wal-Mart stores until Wal-Mart becomes unionized.

    When it comes to debt per capita there is less denominator effect than I suspected beforehand, although small populations become a huge factor behind the high debt loads per capita in Alaska, Rhode Island, and Delaware. Alaska can also afford a higher debt load because of vast untapped natural resources.

    I watched two very liberal commentators from Boston on television last night arguing that more debt load in Taxachusetts to support increased spending for social programs was a good investment of that state's economy. This seems to be questionable given where Taxachusetts already stands in relation to debt per capita.

     

     

     


    Compare taxes for all 50 states of the U.S, at --- http://www.taxfoundation.org/research/topic/18.html 

    Compare the living costs of any two locales in the United States in terms of how far your salary will go in these to locales (such as where you live now versus where you might want to move to) --- Click Here  --- http://snipurl.com/comparelivingcosts       
    [www_salary_com] 

    Bob Jensen's threads on Salary Compression, Inversion, and Controversies --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#Salaries

    Tax Index 2008 ranks state tax systems --- http://www.sbecouncil.org/uploads/BusinessTaxIndex2008.pdf

    Following are the “Business Tax Index” scores and rankings, followed by brief descriptions of

    why each factor is included in the Index, and how it is measured.

    •Personal Income Tax. State personal income tax rates affect individual economic decisionmakingin important ways. A high personal income tax rate raises the costs of working, saving, investing, and risk taking. Personal income tax rates vary among states, therefore impacting crucial economic decisions and activities. In fact, the personal income tax influences business far more than generally assumed because roughly 90 percent of businesses file taxes as individuals (e.g., sole proprietorship, partnerships and S-Corps.), and therefore pay personal income taxes rather than corporate income taxes. Measurement: state’s top personal income tax rate.1

    Jensen Comment
    The above tax rates are a little misleading in some states. For example, New Hampshire shares Rank 1 with a zero percent rate. However, New Hampshire has a five percent tax on dividends and interest payments above a $5,000 exemption and excluding all interest and dividends embedded in pension payments. The New Hampshire tax does include interest payments on municipal bonds, exempt from Federal income tac, issued outside the state of New Hampshire. Some other states have some sneaky ways of taxing without calling it an "income tax."

    Of course a huge tax often overlooked when locating or relocating is the property tax.

    Jensen Comment
    New Hampshire came out better than I expected based upon my experience. One thing I noticed since moving to New Hampshire is that property is reappraised much less often. In 2006 my home was re-appraised after the previous appraisal in 1996. When I lived in San Antonio, homes were re-appraised at least every year. Frequent appraisals can be good news or bad news, but they are mostly bad news for people who live in desirable neighborhoods (read that gated neighborhoods in San Antonio) since these neighborhoods tend to go up in value much more frequently than poorer neighborhoods.

    Jensen Comment
    The problem is that analysts in general tend to compare average before-tax salaries and living costs. Although Wisconsin is slightly low in terms of state-supported university salaries, on an after-tax basis they are very low due to high taxes in Wisconsin.

    Wisconsin's State/Local Tax Burden Among Nation's Highest in 2007 --- http://www.taxfoundation.org/research/topic/67.html
    During the past three decades Wisconsin's state and local tax burden has consistently ranked among the nation's highest. Estimated at 12.3% of income, Wisconsin’s state and local tax burden percentage ranks 7th highest nationally, well above the national average of 11.0%. Wisconsin taxpayers pay $4,736 per capita in state and local taxes, and per capita state income is $38,639.
    Wisconsin's State-Local Tax Burden, 1970-Present

    On the other hand, some states that also pay lower than average faculty salaries are winners in terms of letting faculty keep more of their income. For example, consider Delaware:

    Delaware's State/Local Tax Burden Fourth Lowest in Nation in 2007 --- http://www.taxfoundation.org/research/topic/18.html
    Consistently over the past two decades, Delaware has had one of the nation’s lowest state and local tax burdens. Estimated at 8.8% of income, Delaware’s state-local tax burden percentage ranks 47th highest nationally, well below the national average of 11.0%. Delaware taxpayers pay $3,804 per-capita in state and local taxes, and per capita state income is $43,471.
    Delaware's State-Local Tax Burden, 1970-present

    States like New York, New Jersey, and California that have relatively high average salaries for their major research universities can be losers in terms of taxes and real estate costs. Real estate costs in those states are still high even after the bursting of the sub-prime bubble. High taxes are also bummers in Maine and Vermont. States like Florida that used to be good deals for taxes and real estate costs have seen property taxes and insurance costs soar.

    You may feed in the name of any state you choose and get state and local tax burden comparisons --- http://www.taxfoundation.org/research/topic/18.html

    You probably should go to the above site before comparing the average salaries (by faculty rank) of U.S. colleges and universities (public and private) that are listed in several sections of  Chronicle of Higher Education, April 18, 2008"

    If you are attracted to or turned off by the average salaries (by faculty rank) in a given school, don't forget to compare taxes and real estate costs. There are also other cost considerations like the cost of private schools in some urban areas that have low cost or dangerous public schools K-12.

    Compare taxes for all 50 states of the U.S. at --- http://www.taxfoundation.org/research/topic/18.html 

    Some Interesting State Comparisons on State& Local Taxation, Business Climate, and Debt Per Capita
     http://www.cs.trinity.edu/~rjensen/temp/StateComparisons2012.htm

    Compare the living costs of any two locales in the United States in terms of how far your salary will go in these to locales (such as where you live now versus where you might want to move to) --- Click Here  --- http://snipurl.com/comparelivingcosts       
    [www_salary_com] 

    Bob Jensen's threads on Salary Compression, Inversion, and Controversies --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#Salaries

    Bob Jensen's tax comparison helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    Jensen Comment
    Among cities that have hotels large enough for AAA annual meetings, what cities might be avoided in an effort not to surprise attendees with enormous add ons to rental car fees, hotel bills, and restaurant tabs?

    What I don't know is whether this also includes those special surcharges added to local sales taxes for construction of sports arenas that cost hundreds of millions of dollars. My guess is that these surcharges are not added in for some of the cities ranked below, because sometimes arena surcharges are only tacked onto hotel bills in the city.

    Warning:  Note the difference between amount of a sales tax and its breadth --- which makes Hawaii possibly the most expensive place to visit or live.

    "Sales Tax Rates in Major U.S. Cities," by Scott Drenkard, Alex Raut and Kevin Duncan, The Tax Foundation, April 11, 2012 ---
    http://www.taxfoundation.org/news/show/28117.html

    . . .

    Conclusion

    Of course, sales taxes are just one part of an overall tax structure and should be considered in context. For example, Washington State has high sales taxes but no income tax; Oregon has no sales tax but high income taxes. While many factors influence business location and investment decisions, sales taxes are something within policymakers' control that can have immediate impacts. One gauge of competitiveness is how a city's sales tax rate compares to its neighbors.

    City
    State
    State Rate
    Local Rate
    Total Rate
    Rank
    Birmingham (a) Alabama 4.0% 6.0% 10.0% 1
    Montgomery Alabama 4.0% 6.0% 10.0% 1
    Chicago Illinois 6.25% 3.25% 9.5% 3
    Glendale Arizona 6.6% 2.9% 9.5% 3
    Seattle Washington 6.5% 3.0% 9.5% 3
    Phoenix Arizona 6.6% 2.7% 9.3% 6
    Memphis Tennessee 7.0% 2.25% 9.25% 7
    Nashville Tennessee 7.0% 2.25% 9.25% 7
    Tucson Arizona 6.6% 2.5% 9.1% 9
    Mesa Arizona 6.6% 2.45% 9.05% 10
    Baton Rouge Louisiana 4.0% 5.0% 9.0% 11
    New Orleans (b) Louisiana 4.0% 5.0% 9.0% 11
    Scottsdale Arizona 6.6% 2.35% 8.95% 13
    New York New York 4.0% 4.875% 8.875% 14
    Chandler Arizona 6.6% 2.2% 8.8% 15
    Gilbert Arizona 6.6% 2.2% 8.8% 15
    Buffalo New York 4.0% 4.75% 8.75% 17
    Fremont (c) California 7.25% 1.5% 8.75% 17
    Long Beach (c) California 7.25% 1.5% 8.75% 17
    Los Angeles (c) California 7.25% 1.5% 8.75% 17
    Oakland (c) California 7.25% 1.5% 8.75% 17
    Spokane Washington 6.5% 2.2% 8.7% 22
    Tulsa Oklahoma 4.5% 4.017% 8.517% 23
    San Francisco (c) California 7.25% 1.25% 8.5% 24
    Saint Louis Missouri 4.225% 4.266% 8.491% 25
    Oklahoma City Oklahoma 4.5% 3.875% 8.375% 26
    Austin (d) Texas 6.25% 2.0% 8.25% 27
    Corpus Christi Texas 6.25% 2.0% 8.25% 27
    Dallas Texas 6.25% 2.0% 8.25% 27
    El Paso Texas 6.25% 2.0% 8.25% 27
    Fort Worth Texas 6.25% 2.0% 8.25% 27
    Garland Texas 6.25% 2.0% 8.25% 27
    Houston Texas 6.25% 2.0% 8.25% 27
    Irving Texas 6.25% 2.0% 8.25% 27
    Laredo Texas 6.25% 2.0% 8.25% 27
    Lubbock Texas 6.25% 2.0% 8.25% 27
    Plano Texas 6.25% 2.0% 8.25% 27
    San Jose (c) California 7.25% 1.0% 8.25% 27
    San Antonio Texas 6.25% 1.875% 8.125% 39
    Henderson Nevada 6.85% 1.25% 8.1% 40
    Las Vegas Nevada 6.85% 1.25% 8.1% 40
    North Las Vegas Nevada 6.85% 1.25% 8.1% 40
    Arlington Texas 6.25% 1.75% 8.0% 43
    Atlanta Georgia 4.0% 4.0% 8.0% 43
    Aurora (e) Colorado 2.9% 5.1% 8.0% 43
    Philadelphia Pennsylvania 6.0% 2.0% 8.0% 43

    Contineud in article


    In 2009 New Jersey, New York, and Connecticut hit residents with the highest state taxes, but with the enormous tax hikes in such states as Illinois and California, the top honors may shift in 2011. In 2011 states like New York are going to tax the incomes of people who own property in New York but spend very little, if any, time in New York. It would seem that owning second homes in New York has become a rather dumb decision for people actually living in other states. The new words of advice:  Sell that Sucker in New York!

    Note that the "tax burdens" on individuals include state income taxes, property taxes, and sales taxes as well as other tax burdens. In many states if they don't get you one way, they hit you in another way. For example, having no income or sales taxes may shift much of the burden to property taxes. However, the high tax states in general may be high in most of the types of tax. California, however, gives some property tax relief to long-time owners because of the infamous Proposition 13.

    The calculations are quite confusing since sales, lodging, and property taxes on out-of-state visitors and second home owners are reallocated back to states of residence in somewhat complicated formulas.

    "State-Local Tax Burdens Fall in 2009 as Tax Revenues Shrink Faster than Income:  New Jersey’s Citizens Pay the Most, Alaska’s Least," Special Report 109, The Tax Foundation, February 2011 ---
    http://taxfoundation.org/files/sr189.pdf

    Table 1

    State and Local Tax Burdens by Rank Fiscal Year 2009

    State-Local State Tax Burden Rank

    U.S. Average 9.8%

    New Jersey 12.2% 1

    New York 12.1 2

    Connecticut 12.0 3

    Wisconsin 11.0 4

    Rhode Island 10.7 5

    California 10.6% 6

    Minnesota 10.3 7

    Vermont 10.2 8

    Maine 10.1 9

    Pennsylvania 10.1 10

    Massachusetts 10.0% 11

    Maryland 10.0 12

    Illinois 10.0 13

    Arkansas 9.9 14

    Nebraska 9.8 15

    North Carolina 9.8% 16

    Oregon 9.8 17

    Ohio 9.7 18

    Kansas 9.7 19

    Utah 9.7 20

    Michigan 9.7% 21

    Hawaii 9.6 22

    Delaware 9.6 23

    Iowa 9.5 24

    Indiana 9.5 25

    North Dakota 9.5% 26

    West Virginia 9.4 27

    Idaho 9.4 28

    Washington 9.3 29

    Kentucky 9.3 30

    Florida 9.2% 31

    Georgia 9.1 32

    Virginia 9.1 33

    Missouri 9.0 34

    Montana 8.7 35

    Mississippi 8.7% 36

    Oklahoma 8.7 37

    Arizona 8.7 38

    Colorado 8.6 39

    Alabama 8.5 40

    New Mexico 8.4% 41

    Louisiana 8.2 42

    South Carolina 8.1 43

    New Hampshire 8.0 44

    Texas 7.9 45

    Wyoming 7.8% 46

    Tennessee 7.6 47

    South Dakota 7.6 48

    Nevada 7.5 49

    Alaska 6.3 50

    Dist. of Columbia 9.6% (24)

    Notes: As a unique state-local entity, D.C. is not included in rankings, but the figure in parentheses shows where it would rank. The local portions of tax collection figures for fiscal year 2009 rely on projections of local government tax revenue Sources: Tax Foundation calculations using data from multiple sources, primarily Census Bureau, Rockefeller Institute, Bureau of Economic Analysis, Council on State Taxation, and Travel Industry Association.


    Question
    In the face of some of the most drastic declines in property values in the U.S., why have many California homeowners not seen their tax valuations decline?

    Answer
    Proposition 13 kept tax valuations way below market value during the blowing up of the real estate bubble such that tax valuations did not have to decline when the bubble burst (thereby sending market values back down closer to tax appraisals). Unfortunately, Proposition 13 equivalents were not passed in other states where increases in tax appraisals forced many fixed-income people out of their homes.

    "Prop. 13 Surprise," Investor's Business Daily, July 11, 2008 --- http://www.ibdeditorials.com/IBDArticles.aspx?id=300669630582951

    It may not get much national notice, but a significant man-bites-dog story has emerged from the debris of California's real estate bust. Cities and counties are finding that their assessment rolls actually are going up while house values are diving.

    Los Angeles County, for example, has seen its latest roll rise 6.9% to $1.1 trillion even as area home prices have depreciated 23%. Even nearby Riverside County, where the housing market has been swamped by foreclosures, assessments have gone up 1.45%.

    Meanwhile, state government is staring at a budget gap of more than $15 billion, despite levying some of the highest personal income-tax rates in the nation.

    The key to this puzzle is, as the Los Angeles Times notes, the role of Proposition 13 "as an economic stabilizer." Passed by voters in 1978, when an earlier real-estate boom juiced assessments so fast people were in danger of being taxed out of their homes, Prop. 13 now is shielding cities and counties from the latest downdraft.

    It does this by assessing homes at their sale prices and limiting annual increases to 2% after that. A house bought for $500,000 in 1995, for instance, would be assessed at no more than $647,000 in 2008, even if its market value was well over $1 million.

    Prop. 13 also caps property tax rates (other than voter-approved bond issues or special levies) at 1% of assessed value. These limits produce a smooth, gradually rising, revenue stream. Without them, local governments would be lurching from boom to bust.

    Continued in article


    Deisel fuel tax rates are quite different --- http://www.sbecouncil.org/uploads/BusinessTaxIndex2008.pdf
    Note that states do not tax deisel and gasolene for off-road use such as in farm tractors. However, this fuel is colored such that drivers who cheat on the road are subjected to heavy fines if caught with the wrong color in a fuel tank.

    The problem is that analysts in general tend to compare average before-tax salaries and living costs. Although Wisconsin is slightly low in terms of state-supported university salaries, on an after-tax basis they are very low due to high taxes in Wisconsin.

    Wisconsin's State/Local Tax Burden Among Nation's Highest in 2007 --- http://www.taxfoundation.org/research/topic/67.html
    During the past three decades Wisconsin's state and local tax burden has consistently ranked among the nation's highest. Estimated at 12.3% of income, Wisconsin’s state and local tax burden percentage ranks 7th highest nationally, well above the national average of 11.0%. Wisconsin taxpayers pay $4,736 per capita in state and local taxes, and per capita state income is $38,639.
    Wisconsin's State-Local Tax Burden, 1970-Present

    On the other hand, some states that also pay lower than average faculty salaries are winners in terms of letting faculty keep more of their income. For example, consider Delaware:

    Delaware's State/Local Tax Burden Fourth Lowest in Nation in 2007 --- http://www.taxfoundation.org/research/topic/18.html
    Consistently over the past two decades, Delaware has had one of the nation’s lowest state and local tax burdens. Estimated at 8.8% of income, Delaware’s state-local tax burden percentage ranks 47th highest nationally, well below the national average of 11.0%. Delaware taxpayers pay $3,804 per-capita in state and local taxes, and per capita state income is $43,471.
    Delaware's State-Local Tax Burden, 1970-present

    States like New York, New Jersey, and California that have relatively high average salaries for their major research universities can be losers in terms of taxes and real estate costs. Real estate costs in those states are still high even after the bursting of the sub-prime bubble. High taxes are also bummers in Maine and Vermont. States like Florida that used to be good deals for taxes and real estate costs have seen property taxes and insurance costs soar.

    You may feed in the name of any state you choose and get state and local tax burden comparisons --- http://www.taxfoundation.org/research/topic/18.html

    You probably should go to the above site before comparing the average salaries (by faculty rank) of U.S. colleges and universities (public and private) that are listed in several sections of  Chronicle of Higher Education, April 18, 2008"

    If you are attracted to or turned off by the average salaries (by faculty rank) in a given school, don't forget to compare taxes and real estate costs. There are also other cost considerations like the cost of private schools in some urban areas that have low cost or dangerous public schools K-12.

    Compare taxes for all 50 states of the U.S. at --- http://www.taxfoundation.org/research/topic/18.html 

    Compare the living costs of any two locales in the United States in terms of how far your salary will go in these to locales (such as where you live now versus where you might want to move to) --- Click Here  --- http://snipurl.com/comparelivingcosts       
    [www_salary_com] 

    Bob Jensen's threads on Salary Compression, Inversion, and Controversies --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#Salaries

    Bob Jensen's tax comparison helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    A Comparative Analysis of State Tax on Business, Tax Foundation, 2012 ---
    http://www.taxfoundation.org/files/lm_2012_proof_08.pdf

    . . .

    Table 7 on Page 14

    Overall Results

                                                                                Mature Firms                                   New Firms

                                                        Index Score        Rank                    Index Score     Rank

                 Alabama                                 86.0                13                             86.4             19

    Alaska                                    97.7.                23                            81.1             17

    Arizona                                   86.2                 14                          114.9              31

    Arkansas                               102.8                 30                            69.6               8

    California                              105.8                 34                          133.8              45


    Colorado                                105.4                33                          135.1               47

    Connecticut                               93.9                21                          109.3               30

    Delaware                                   98.1               24                             80.5               16

    Florida                                       90.6               19                           122.8               36

    Georgia                                      71.8                 3                            66.7                   6


    Hawaii                                      142.6.              49.                         151.4                50

    Idaho                                         111.7               38                          116.0                32

    Illinois                                         126.4               45                            94.2                24

    Indiana                                        122.7               43                            80.1                15

    Iowa                                            116.5              40                          126.8                 41


    Kansas                                        133.5               47                          141.6                 48

    Kentucky                                        88.4              18                             69.4                   7

    Louisiana                                       84.1              10                             52.8                   2

    Maine                                            100.4              27                              87.3                 20

    Maryland                                        82.4                8                           134.7                  46


    Massachusetts                              123.6               44                         128.2                   43

    Michigan                                            98.8               25                           96.6                   25

    Minnesota                                         112.7              39                         119.6                   35

    Mississippi                                         109.2              37                           89.3                   21

    Missouri                                             108.8              36                           97.0                   26


    Montana                                               93.1               20                           93.8                  23

    Nebraska                                             82.5                 9                           31.7                    1

    Nevada                                                 77.7                 4                          124.8                 38

    New Hampshire                                     99.7                26                           91.0                  22

    New Jersey                                         121.1                41                         104.9                 27


    New Mexico                                            97.4               22                           80.0                  14

    New York                                               121.1              42                         124.4                   37

    North Carolina                                         80.8                 7                           79.9                   13

    North Dakota                                            87.0               15                          83.5                    18

    Ohio                                                         78.1                 5                           58.7                      3


    Oklahoma                                                 87.1               16                          65.3                       5

    Oregon                                                     100.5               28                       106.3                     28

    Pennsylvania                                           145.1               50                       145.9                     49

    Rhode Island                                           129.1               46                       128.4                     44

    South Carolina                                           103.8               32                       119.4                     34


    South Dakota                                              56.0                 2                         77.7                      11

    Tennessee                                                   101.3               29                       108.7                      29

    Texas                                                            85.9              12                       127.7                       42

    Utah                                                              80.2                 6                        76.7                       10

    Vermont                                                       103.7                31                       79.2                       12


    Virginia                                                           84.4                 11                     125.9                      39

    Washington                                                     87.2                 17                     126.3                       40

    West Virginia                                                140.2                 48                     118.5                       33

    Wisconsin                                                    107.7                  35                       59.8                         4

    Wyoming                                                       48.3                    1                       73.3                          9

    Continued in article

    Jensen Comment
    Of course there are many other factors to consider when running a business in a given state. First there are markets to consider. For example Wisconsin and Ohio look attractive from a tax standpoint but these states are unattractive to labor intensive business firms because of union power within those states. Such firms may prefer moving into Alabama, Arkansas, or Mississippi in spite of having to pay higher taxes. Many firms have moved from New England to the south because of higher wages and taxes in New England. Taxes and wages have been a disaster for some states. For example, Hawaii was at one time a thriving grower of pineapples. Now most of the pineapple growers have moved elsewhere because of taxes and wages.

    Another thing to consider are subsidies to business firms that offset taxes and wages. For example, when threatened with a huge movements of business firms out of Illinois (including huge firms like Caterpillar and Sears), Illinois commenced to offset its high business taxes and wages with business subsidies.

    Bob Jensen's threads on taxation are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

     


    Question
    As a hobby collector are you evading taxes illegally?

    From The Wall Street Journal Accounting Weekly Review on February 22, 2008

    If You Collect, the IRS May Collect From You
    by Arden Dale
    The Wall Street Journal

    Feb 14, 2008
    Page: D5
    Click here to view the full article on WSJ.com ---
    http://online.wsj.com/article/SB120295828908267469.html?mod=djem_jiewr_AC
     

    TOPICS: Personal Taxation

    SUMMARY: This article discusses implications of gains on collectible items, such as artwork, automobiles or "Elvis's guns." "Capital gains, estate and gift taxes may all come into play depending on whether you decide to sell off parts of the collection or bequeath it to an heir. Experts advise that you start by deciding [the taxpayer's] tax status....A collector, for tax purposes, is one who buys and owns items primarily for personal pleasure. An investor, on the other hand, buys chiefly to make a profit. A dealer is in the business of buying and selling. For the average person, the big distinction is between collector and investor." The article goes on to discuss the tax implications of gains on collectible items.

    CLASSROOM APPLICATION: This article may be used in Personal Tax classes, Personal Financial Planning classes or Investment classes to pull together the various possibilities in this area of taxation. Also, the orientation of the article allows for combining discussion of three taxation approaches on collectible items typically covered in different tax courses.

    QUESTIONS: 
    1.) What is the reasoning behind categorizing a taxpayer as a collector, an investor or a dealer of collectible items?

    2.) What code sections are relevant to the taxability of gains, deductibility of losses and deductibility of expenses related to collectible items?

    3.) What are the requirements of code section 212? What actions by a taxpayer would support the notion that code section 212 is the relevant tax code section to decide on the tax treatment of expenditures related to collectible items?

    4.) How does the "special 28% capital gains tax" on collectible items compare to taxes on gains related to other investments?

    5.) How are capital gains and losses accumulated for the purpose of applying capital gains taxes?
     

    Reviewed By: Judy Beckman, University of Rhode Island
     


    "IRS Names Four New Frivolous Claims to Avoid," SmartPros, January 15, 2008 --- http://accounting.smartpros.com/x60395.xml

    The four new frivolous claims pertain to the following:
    • Misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending.
    • Erroneous claims that taxes are owed only by persons with a fiduciary relationship to the United States or the IRS.
    • A nonexistent "Mariner's Tax Deduction" (or the like) related to invalid deductions for meals.
    • Certain instances of misuse or excessive use of the section 6421 fuels credit.

    An individual or group may not avoid paying their fair share of taxes by making "frivolous" legal arguments. The IRS publicizes these frivolous claims to help taxpayers understand the law and avoid penalties.

    Continued in article


    Question
    Does it pay to evade taxes and, if so, why don't more people do it?

    "Why so Little Tax Evasion? Nobel Laureate Gary Becker, The Becker-Posner Blog, November 25, 2007 --- http://www.becker-posner-blog.com/

    All the rich countries are successful in raising sizable amounts of revenue from taxes with only a rather little tax evasion. Tax avoidance is the use of legal means to reduce taxes, whereas tax evasion uses illegal means. The federal government of the US raises almost 20 percent of American GDP through taxes on personal and business income, capital gains, estates, and the sale of gasoline and some other goods. The estimates from the 2001 IRS National Research Program indicate that the percent of income not reported is quite low for wages and salaries, but rises to over 50 percent for farm income, and about 40 percent for business income. Income tax payments overall are under reported by about 13 percent. What determines the degree of tax evasion?

    If taxpayers responded only to the expected cost of evading taxes, evasion would be far more widespread. The reason is that only about 7 percent of all tax returns are audited (over a 7 year period), and typically the penalty on under reported income is only about 20 percent of the taxes owed. Virtually no one is sent to jail simply for evading taxes unless that evasion is on a very large scale, or involves massive fraud. If a person were to evade $1,000 in taxes, his expected gain would be 0.93x$1000 -0.07x$200 (=$1000/5) = $916. On these considerations alone, he should not hesitate to evade paying the $1,000, and presumably much more.

    To be sure, the expected gain is not the right criterion since most taxpayers would be risk averse regarding audits and punishments, especially if there is some chance of much greater than the average punishment or likelihood of an audit. However, if the expected gain from evading $1,000 were $916, the degree of risk aversion would have to be huge, far higher than the risk aversion that is embodied in pricing of assets, for risk to explain why there is so little tax evasion.

    This is not to say that possible punishments have no affect on the amount of tax evasion. Compliance rates are much higher when governments have independent evidence on a person's income since then the probability of audit when he under reports his income is much higher than when they do not have this information. For example, income from independent consulting to companies is better reported than tips on earnings, or than the incomes of farmers and other small business owners because employers report how much they paid to independent consultants, whereas no one reports how much they paid in tips, or how much they bought from a local store. A PhD study in progress at the University of Chicago by Oscar Vela also shows that persons in occupations where integrity is a more important determinant of success, such as law or medicine, are less likely to evade taxes. Presumably, any publicity that an individual in these occupations was convicted of tax evasion would damage his reputation and earnings.

    Vela finds that considerations of reputation, along with more traditional variables in the tax evasion literature do help explain how much evasion occurs for different types of income. These variables include the likelihood of audits that varies for different classes of taxpayers, punishments for those audited, marital status (not surprisingly, married persons are less likely to evade taxes), the marginal tax rate, and the ease with which governments can match reported incomes with independent evidence on incomes, such as from 1040 and 1099 tax forms,

    Note that tax avoidance as well as tax evasion tends to rise as the marginal tax rate increases. That is, with higher tax rates, individuals and businesses are both more likely not to report some of their income to the tax authorities, and also to search harder for ways to reduce how much of their income they are obligated to report. This implies, for example, that flattening the income tax structure would increase the amount of personal income reported to tax authorities because both the amount of evasion and the avoidance of the personal income tax would be reduced.

    However, audits, punishments, and the other deterrence variables mentioned in the previous paragraphs do not fully explain why there is not much more tax evasion. I believe it is necessary to recognize that most people believe they have a duty, moral or otherwise, to report their taxable income more or less honestly. I intentionally say "more or less honestly" because a little cheating on taxes is usually considered to be ok, as long as it does not go too far. Individuals might not pay social security taxes on their payments to workers who clean their houses, and they might pay a mason in cash because he then gives them a lower price, but these same persons would be very reluctant to engage in large-scale tax evasion.

    Similarly, most people do not believe it is moral to steal money even when there is little chance they will be found out, and they feel obligated to obey many other laws, even when that entails inconvenience and cost to themselves. There would be considerably more crime if individuals only obeyed laws when the expected cost of being caught, adjusted for risk, exceeded the benefits from disobeying these laws. To some extent, people obey many laws, including tax laws, because most other persons are doing the same. If so, their behavior might change radically if they lost confidence that others would pay their taxes and obey other laws.

    Clearly, morality about obeying laws does not apply to all types of taxes, or all laws-people often cross a street when the light is red, do not stop at stop signs when riding their bikes, and do not report much of their tips. Moreover, in many countries of Latin America, Africa, and Russia and other parts of Eastern Europe, individuals do not even feel much obligation to pay ordinary income and other taxes. They evade except when they expect the chances of being caught are high, as with businesses paying value added taxes. These countries are unable to raise substantial amounts from taxes on personal incomes or businesses except when marginal tax rates are low. Instead they rely greatly on value added and other more difficult to evade taxes.

    "Why so Little Tax Evasion? Richard Posner, The Becker-Posner Blog, November 25, 2007 --- http://www.becker-posner-blog.com/

    Becker presents persuasive evidence that the amount of tax evasion varies, as one would expect in a rational-choice model of taxpaying, with variance in the private costs and private benefits of evasion. I am inclined to believe that the private costs are higher than he suggests, which if true would mean that more tax compliance can be attributed to rational fear of punishment than he suggests and less to taxpayers' feeling a moral duty to pay taxes. For example, the civil penalties for tax evasion are quite severe (the fraud penalty is 100 percent of the amount of taxes evaded), and anyone charged with civil or criminal tax evasion will incur heavy legal and accounting expenses in defending against the charge. Although the audit rate is low, it is not random, but rather is higher for those taxpayers who are in the best position to evade taxes without being caught or whose tax returns raise a red flag because of unusually high deductions or other suspicious circumstances. And once one has been caught evading taxes, one can expect the rate of future audits of one's returns to be high. While it is true that underpayment of taxes is rarely prosecuted criminally, even when deliberate, criminal prosecution is likely if the tax evader takes steps to conceal the evasion, as by never filing a tax return, keeping phony books, or forging evidence of deductions. Moreover, the government does occasionally prosecute even small fry.

    . . .

    The general question that Becker raises of the moral costs of committing crime is a fascinating one. I would be inclined to search as hard as possible for nonmoral costs before concluding that morality is a major motivator of behavior, especially with regard to crimes, like tax evasion, that do not have an identifiable victim. In the case of many crimes, the benefits to most people of perpetrating them would be so slight (and often zero or even negative) that sanctions play only a small role in bringing about compliance; enforcement costs needn't be high in order to deter when nonenforcement benefits are low. Some examples: the demand for crack cocaine among white people (including cocaine addicts) appears to be very small. Both altruism and fear deter most people from attempting crimes of violence, quite apart from expected punishment costs. The vast majority of men do not have a sexual interest in prepubescent children. Well-to-do people often have excellent substitutes for crime: any person of means can procure legal substitutes for illegal drugs (for example, Prozac for cocaine, Valium for heroin). Fear of injury deters most people from driving recklessly or while drunk. People who have no taxable income are incapable of evading income tax. People who do have taxable income can obtain benefits from evading it, but the costs of evasion are, as I have emphasized, nonnegligible, so there is widespread compliance along with a good deal of evasion. I would therefore expect differences across countries in tax evasion to be related more to differences in penalties, collection methods, and so forth than to differences in morality. Americans may exhibit higher tax compliance than Italians, but Americans are not a more moral people than Italians.

    Continued in article

    Jensen Comment
    I inclined to think that more people evade taxes than Becker and Posner suggest, although this evasion has declined due to added reporting of revenues, particularly 1099 forms for miscellaneous income. In the United States, the IRS estimated in 2007 that Americans owed $345 billion more than they paid, or about 14% of federal revenues for FY2007. But these estimates are very soft numbers based largely on intense audits of a miniscule proportion of taxpayers filing returns --- http://en.wikipedia.org/wiki/Tax_Evasion

    Contents

    You can learn a lot about taxation at http://en.wikipedia.org/wiki/Tax
    Also see http://en.wikipedia.org/wiki/Income_tax


    Although a lot (OK most) people disagree with me, I've been a long-time advocate of replacing the U.S. corporate income tax with a VAT tax

    "US VAT Introduction versus the Proposed Changes of The ‘European Union’ VAT System," by Richard Cornelisse, Big Four Blog, March 24, 2012 ---
    http://www.big4.com/ernst-young/us-vat-introduction-versus-the-proposed-changes-of-the-european-union-vat-system


    Questions
    How can the IRS tax earnings for services not rendered?

    My second question concerns the annual limit on wages (that just moved up to $102,000) subject to Social Security taxes. Suppose a professor received an academic year salary of $150,000 in 2008 plus a tenure buyout of $300,000 for early retirement at age 56 (actually there's no obligation to retire before reaching 100 years of age or later). If her/his "wages" aggregate to $450,000 wouldn't the Social Security tax still be limited to the first $102,000?

    "University Owes Social Security Taxes for Tenured-Faculty Buyouts, Court Says," by Goldie Blumenstyk, The Chronicle of Higher Education, November 5, 2007 --- Click Here

    A federal appeals court has ruled against the University of Pittsburgh’s argument that buyout payments to tenured professors who take early retirement are not subject to Social Security taxes. The court, in a 2-to-1 ruling, said the payments are taxable.

    The ruling centered heavily on the judges’ interpretation of tenure.

    The university had contended that such payments were not taxable as “wages” because they were given in exchange for the professors’ relinquishing their tenure rights. Pitt sought a refund for the $2-million in taxes that it paid from 1996 to 2001.

    But the Internal Revenue Service denied that request, and when the university sued, a U.S. district-court judge, Donetta Ambrose, ruled for the university as a matter of law. The federal government appealed that decision, paving the way for the ruling last week in which a three-judge panel of the U.S. Court of Appeals for the Third Circuit sided with the government.

    “Because tenure is a form of compensation for past services to the university, payments offered as a substitute for tenure are compensation and therefore taxable as wages,” two of the judges said in the majority opinion.

    In a dissent, Judge Anthony J. Scirica disagreed with the interpretation of tenure as merely a version of seniority but, rather, as the second part of an employment relationship with its own rights. As such, said Judge Scirica, “payments for the relinquishment of property right in tenure at the university were not remuneration for employment and were not subject” to taxation.

    As the opinion notes, the case marked the third time that a federal appeals court had taken up the question since 2001. In one instance the court found that such payments were taxable, and in another, that they were not.

    Bob Jensen's taxation helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

     


    From The Wall Street Journal Accounting Weekly Review on March 9, 2007

    Reviewed By: Judy Beckman, University of Rhode Island
     


    What to Know When Choosing a Tax Preparer
    by Tom Herman
    The Wall Street Journal

    Mar 07, 2007
    Page: D1
    Click here to view the full article on WSJ.com

    TOPICS: Accounting, Code of Ethics, Code of Professional Conduct, Income Taxes, Personal Taxation, Public Accounting

    SUMMARY: The article describes tax preparation alternatives and can be used in a personal income tax course to prepare students for professional life, particularly in offering tax services. One former IRS official estimates that there are 1.2 million to 1.6 million tax practitioners in the country, though no one is certain of the total. A box highlights tax preparation alternatives, listing CPAs third along with tax-preparation software, chains such as H&R Block, and enrolled IRS agents. The article describes some unscrupulous tax preparation practices, particularly since "concern about paid preparers escalated last year after the U.S. Government Accountability Office found significant mistakes--and even some cheating--by workers at a few major tax-preparation firms." The data on problems in paid preparers' work leads the article, though ensuing paragraphs advise taxpayers with lower incomes and less complex tax situations to consider free or purchased tax software and "higher-income taxpayers with far more complex tax questions [to] consider looking for an enrolled agent, an accountant or another expert with extensive training."

    QUESTIONS: 
    1.) Do you think this article is helpful to CPAs providing services to identify the benefits of a paid preparers' services? What are the positive aspects of the article for this purpose? What are the negative aspects?

    2.) Must an individual be a CPA to sign as a paid preparer for a tax return? Does the IRS hold any requirements for an individual to fill that role?

    3.) What are the problems with returns by paid preparers uncovered in work by the General Accountability Office (GAO) in relation to 2005 tax return filings? Why do you think the GAO undertook this investigative work?

    4.) Does the IRS have any provisions to penalize paid preparers for errors or other improprieties in their work? Explain.

    5.) How does the American Institute of CPA's (AICPA's) Code of Professional Conduct address the issues with improper tax returns discussed in this article? What is the consequence to a CPA for violating this code?

    6.) How do paid preparers structure fees to clients for tax preparation services? Why do you think these differences exist? List all factors you can think of and specifically refer to requirements based on a CPA's code of professional conduct.

     

     

    "(Tax) Abusive Insurance and Retirement Plans : Single–employer section 419 welfare benefit plans are the latest incarnation in insurance deductions the IRS deems abusive," by Lance Wallach, Journal of Accountancy, October 2006 --- http://www.aicpa.org/pubs/jofa/sep2008/abusive_insurance.htm


     

    EXECUTIVE SUMMARY

    Some of the listed transactions CPA tax practitioners are most likely to encounter are employee benefit insurance plans that the IRS has deemed abusive. Many of these plans have been sold by promoters in conjunction with life insurance companies.

    As long ago as 1984, with the addition of IRC §§ 419 and 419A, Congress and the IRS took aim at unduly accelerated deductions and other perceived abuses. More recently, with guidance and a ruling issued in fall 2007, the Service declared as abusive certain trust arrangements involving cash-value life insurance and providing post-retirement medical and life insurance benefits.

    The new "more likely than not" penalty standard for tax preparers under IRC § 6694 raises the stakes for CPAs whose clients may have maintained or participated in such a plan. Failure to disclose a listed transaction carries particularly severe potential penalties.


    Lance Wallach, CLU, ChFC, CIMC, is the author of the AICPA’s The Team Approach to Tax, Financial and Estate Planning. He can be reached at lawallach@aol.com or on the Web at, www.vebaplan.com or 516-938-5007. The information in this article is not intended as accounting, legal, financial or any other type of advice for any specific individual or other entity. You should consult an appropriate professional for such advice.

     

     

     


    From the IRS Site
    If you earned $54,000 or less in 2007, you can use Free File to prepare your taxes online beginning in mid-January 2008 right here at the IRS website.
    --- http://www.irs.gov/efile/article/0,,id=118986,00.html

    e-file Using a Computer

    IRS e-file is the fastest most accurate way to file your taxes.

    Filing your federal tax return using IRS e-file is easier and more convenient than ever before! Most taxpayers can use this program. Access to a personal computer and the Internet is necessary to conveniently, quickly and safely transmit your return and receive proof of acknowledgement. You decide the manner of tax preparation to quickly and conveniently e-file your Form 1040, Form 1040A, Form 1040EZ or Form 1040SS (PR) using a personal computer. You can:

    • Purchase commercially available software from a retailer,
    • Download software from an Internet site and prepare your return offline, or
    • Prepare and file your return online.

    NOTE: IRS cannot compete with private enterprise and does not offer free e-file software or direct filing. A number of companies, tested and approved by the IRS, do offer free use of their software and free filing, while others will charge nominal fees. Terms and conditions vary among companies and you are advised to review the information on each company's web site and choose the product that is right for you.

    Anyway you choose, it's a simple process. As always, IRS e-file means a more accurate return, fast refunds - in half the time compared to filing a paper return - and even faster and safer with Direct Deposit! IRS e-file also offers the convenience of filing your tax return early and delaying payment up until the due date.

    You can choose to file a completely paperless tax return by using a Self-Select PIN as your signature. With a Self-Select PIN, there is no paper signature document to send in!

    And don't forget, in 37 states and in the District of Columbia you can simultaneously e-file your Federal and state tax returns. Your personal computer and IRS e-file does it all!

    NOTE: Prior Year 1040 series returns may not be filed electronically.

    Continued in article --- http://www.irs.gov/efile/article/0,,id=98294,00.html

    Tax Cut Only Provides Free Online Preparation (Federal Only) for Taxpayers Earning Less Than $52,000 ---
    http://www.hrblock.com/taxes/partner/index.jsp?otpPartnerId=180
    Others must pay --- http://www.taxcut.com/

    Turbo Tax Appears More Generous for "Simple" Federal Returns --- Click Here

    "Tax-Prep Software Doesn't Add Up," by Rob Pegoraro, The Washington Post, March 12. 2005 --- Click Here

    I knew I was doomed about five minutes into this year's tax-prep ordeal. Two different programs -- having been fed nothing more than basic personal info and the contents of a pair of W-2s -- did not agree on the total tax bill for my wife and me.

    H&R Block's TaxCut Online and Intuit's TurboTax Online should have coughed up identical responses to such a simple input, but instead they were $857 apart.

    Sadly, I wasn't surprised to see the two dominant home tax-preparation programs disagree, merely disappointed to see them part company so quickly. I have long since abandoned all hope of understanding how these applications compute my tax bill; I just want to know which one can end the agony first.

    When judged on those limited criteria, tax-preparation software has improved a little -- especially the Web-based versions that most people use, which need no software installation, securely encrypt work online and are free for simple returns. Others can try them for free, then pay to print or file (or, at no cost, copy data from them into the IRS's new, free Web-filing system).

    This year, I tried roughly comparable Web applications: Block's $19.95 TaxCut Online Basic and Intuit's $29.95 TurboTax Online Deluxe. Each worked in Internet Explorer 7 and Firefox 3 in Windows; Safari 3 on a Mac. Intuit supports Windows 2000 or newer and Mac OS X 10.2 or newer, while Block only allows Win XP or Vista and OS X 10.3 or newer.

    After some long nights of plugging in numbers for two salaries, a little freelance income, multiple bank accounts and investments, a mortgage and too many other details, TurboTax left me with a slightly higher tax bill than TaxCut. And yet I felt more comfortable with TurboTax's estimate and less annoyed by its performance.

    That's partially because TurboTax required less work. While both Web applications could import tax-prep files saved by 2008-vintage desktop programs, TaxCut kept asking me to type in information it should have pulled from that file, such as names of mutual funds.

    TurboTax can download tax-return data from many employers and brokerages. It also linked to Intuit's ItsDeductible site for quick estimates of in-kind charitable donations (if you don't need that feature, get the $14.95 TurboTax Basic edition that Intuit doesn't list on its home page). Block doesn't offer its comparable DeductionPro service to any of its TaxCut Online users.

    That oversight wasn't TaxCut's only unforced error. It demanded too much scrolling up and down and clicking through consecutive screens to enter data on one form. And when I left a field blank instead of typing a zero -- a common occasion with investments, thanks to all the flavors of capital gains the tax code serves up -- the site scolded me to finish the form.

    Other TaxCut issues went beyond mere aesthetics. Its Web version lacks important features available in the disc-based edition, like the ability to inspect the 1040 form the program is creating, then save an offline copy of your data. It also omits such lesser-known options as the tax credit for first-time homebuyers in the District.

    And if you decide you'd rather not use TaxCut, there's no one-click way to wipe your data from the site.

    TaxCut does include the extra-cost option of a consultation with one of Block's own tax advisors. But you have to put up with a lot of aggravation first.

    Intuit's pricier program offered its own annoyances. It kept asking questions only an accountant could answer, such as the chunk of a mutual fund's dividends subject to foreign tax -- a detail absent from the fund's 1099 form.

    At other times, TurboTax's overall edge in efficiency vanished, like its plodding tour of deductions and credits repeatedly held up by a prompt to "Find More Deductions," or its clumsy method of recording cash donations to charity.

    TurboTax, however, allowed more confidence in its numbers by showing more of its work. I could click the running total in the top-right corner to see a summary of the factors behind that number, with my 1040-in-progress another click away. At the end of the process, a semi-plain-English explanation added context.

    But both of these programs, along with every other tax-prep application I've tried, too often fail to explain why we must subject ourselves to these contortions.

    The tax code represents the single worst interface -- bloated, inefficient, unreadable, unreliable, downright grotesque -- I have ever seen. And to what end? We try to reward good behavior and punish bad conduct with all these cryptic little rules, but how can people

    Along the way, we've corrupted a basic obligation of citizenship -- paying the cost of civilization -- into a Kafkaesque game that only lawyers, lobbyists and accountants seem capable of winning.

    I would like to see tax-prep applications deal with this misery more effectively. But I would rather see them made obsolete by a tax code that people can understand and follow without any extra software.

     

    January 4, 2007 reply from John Stancil [jstancil@VERIZON.NET]

    TaxACT ( www.taxact.com ) has its standard 1040 product free for download. The deluxe is $12.95 and the ultimate (which includes stat) is $19.95. The standard only allows one return, with the others you can do multiple returns. E-file is free.

    John Stancil

    IRS Homepage (The best U.S. Government agency web site on the Internet) http://www.irs.gov/ 

    IRS Site Map --- http://www.irs.gov/sitemap/index.html

    FAQs and answers --- http://www.irs.gov/faqs/index.html

    IRS Tax Interactive
    http://www.irs.gov/individuals/page/0,,id%3D15552,00.html  

    The IRS youth education web site on taxation (an IRS  joint development project with the American Bar Association)
    http://www.irs.ustreas.gov/prod/taxi/abouttaxi.html

    Taxpayer Advocate Service --- http://www.irs.gov/advocate/index.html

    Will you get hit by the Alternative Minimum Tax?
    The AMT Assistant from the IRS --- http://apps.irs.gov/app/amt/

    The IRS tells you how to get in trouble with the IRS ---
    http://www.aicpa.org/pubs/jofa/sep2006/tax_ex1.htm

    "Comparing Tax Prep Software," AccountingWeb, February 5, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=101747

    There are five tax preparation software packages that we can compare and contrast. They are:

    TurboTax provides a customized tax interview to help automate the preparation of your federal and state return, according to Intuit. They guarantee your return to be 100 percent accurate. Your return is double checked for errors and omissions and life events prompts are provided. You can transfer data from year to year and import data from TurboTax, Quicken(R), Quickbooks(R), Microsoft Money(R), or Intuit ItsDeductible(R). Basic, Deluxe, Premier level software packages are offered. Preparation is also available using TurboTax Online covering the same three levels. You get a single downloadable state product with Deluxe and Premier TurboTax products. You also receive ItsDeductible with Deluxe and Premier TurboTax products.

    Intuit is offering to increase the size of your $1,000 refund by $200, or more, in gift cards from over 50 popular retailers including Lowe’s, AMC Theaters, and Dell, according to TurboTax. Learn more about this offer at http://www.turbotax.com/refund_bonus/.

    If your return is audited, TurboTax has partnered with TaxResources, Inc. (TRI) to provide customers with TurboTax Audit Defense. This service can only be purchased through TurboTax software or TurboTax for the Web through October 16, 2006. Starting October 17th, customers should visit http://intuit.taxaudit.com if they would like to purchase Audit Defense, according to TurboTax. This service must be purchased prior to receiving a notice of audit.

    TaxCut(R) offers one state product free with Deluxe and Premium TaxCut products. H&R Block guarantees your return to be 100 percent accurate. Any errors and omissions are double checked as you proceed through your customized interview. Life events advice is also provided. You can transfer data from year to year and import data from TaxCut, TurboTax, Quicken, MS Money, H&R Block Deduction Pro(R), or Intuit ItsDeductible. Audit Support(TM) is there for you if your federal or state return is audited, according to H&R Block.

    You could double the amount of your federal refund with the Double Your Refund Instant Win Game just by filing your taxes with H&R Block. Enter one of three ways: have your taxes prepared at a participating tax office, use one of our online tax programs, or obtain a game card without purchase by mail, according to H&R Block.

    TaxACT(R) provides personal and professional tax products. They offer Standard, Deluxe, and Deluxe with State bundles, according to TaxACT. Free e-filing is available with each individual and state return prepared online. Taxpayers can download the TaxACT software or order the CD at extra cost or use the low-priced online option. Each option has Standard, Deluxe, and Ultimate bundles with stepped pricing and features. Any errors and omissions are double checked by the program. Life events guidance is also provided.

    TaxBrain is an online tax preparation service that replaces the return-long interview process with a single questionnaire. Appropriate input sheets are selected by the program based on the short questionnaire, according to PEI. A Personalized Organizer is provided to help the taxpayer put together all the necessary paperwork. The program validates every entry and flags potential audit items and tax-saving opportunities while the federal and state individual return is prepared. TaxBrain also provides expanded Schedule C support for small businesses.

    Each TaxBrain client builds a personalized tax profile stored on a customized page that can be used to manage taxes into the future. Filings can be managed and tax payments can be made from this page, according to TaxBrain. TaxBrain Online is always available for taxpayer assistance. SmartCoverage(TM) Audit Defense provides representation if your federal or state return is audited.

    CompleteTax(TM) is CCH’s entry in the tax preparation arena. You can take advantage of an online chat service there, according to CCH. The CCH Online Tax Guide, and the Ernst & Young Tax Guide, are also available, as well as a financial calculator and a tax projector. You can also check on the status of your e-file.

    CompleteTax Pro(TM) is a professional affiliate program providing an online individual tax preparation system with Standard and Private Label service options, according to CCH. Customers can prepare and process their own returns for $24.95 using the Standard service option. The Private Label version allows firms to create their own brand name for the CompleteTax Pro(TM)-based program. Learn more about CompleteTax Pro(TM) at tax.cchgroup.com/completetaxpro.

    Not only are chains (e.g., H&R Block) allowed to sell some of your private information, they are also allowed to charge you hidden fees and pressure you to buy products you don't need. My advice is to either obtain tax preparation software and do your own taxes or go to a CPA

    "Beware of hidden fees for tax preparation:  Federal report finds major chains charge for unnecessary extra services," by Lea Thompson, MSNBC News, April 4, 2006 --- http://www.msnbc.msn.com/id/12156097/
    (This link was forwarded by Robert Bowers)

    More than 60 percent of Americans pay for tax preparation. Paid tax preparers do 78 million returns. Monday, NBC News showed you how some tax preparers at the nation's biggest chains have been cheating the government in order to get their clients bigger refunds. But NBC’s hidden camera investigation also found some of those same preparers are quick to sell clients questionable financial products they may not need.

    The problems government investigators found with the nation's largest tax preparers were widespread, including high rates for instant refunds and fees you might not expect to pay.

    “Frankly, I was amazed at the degree of incompetence and unprofessionalism,” says Sen. Max Baucus, D-Mont.

    "IRS Plans to Allow Preparers to Sell Data," SmartPros, March 22, 2006 --- http://accounting.smartpros.com/x52297.xml

    The IRS is quietly moving to loosen the once-inviolable privacy of federal income-tax returns. If it succeeds, accountants and other tax-return preparers will be able to sell information from individual returns - or even entire returns - to marketers and data brokers.

    The change is raising alarm among consumer and privacy-rights advocates. It was included in a set of proposed rules that the Treasury Department and the IRS published in the Dec. 8 Federal Register, where the official notice labeled them "not a significant regulatory action."

    IRS officials portray the changes as housecleaning to update outmoded regulations adopted before it began accepting returns electronically. The proposed rules, which would become effective 30 days after a final version is published, would require a tax preparer to obtain written consent before selling tax information.

    Critics call the changes a dangerous breach in personal and financial privacy. They say the requirement for signed consent would prove meaningless for many taxpayers, especially those hurriedly reviewing stacks of documents before a filing deadline.

    "The normal interaction is that the taxpayer just signs what the tax preparer puts in front of them," said Jean Ann Fox of the Consumer Federation of America, one of several groups fighting the changes. "They think, 'This person is a tax professional, and I'm going to rely on them.' "

    Criticism also came from U.S. Sen. Barack Obama (D., Ill.). In a letter last Tuesday to IRS Commissioner Mark Everson, Obama warned that once in the hands of third parties, tax information could be resold and handled under even looser rules than the IRS sets, increasing consumers' vulnerability to identity theft and other risks.

    "There is no more sensitive information than a taxpayer's return, and the IRS's proposal to allow these returns to be sold to third-party marketers and database brokers is deeply troubling," Obama wrote.

    The IRS first announced the proposal in a news release the day before the official notice was published, headlined: "IRS Issues Proposed Regulations to Safeguard Taxpayer Information."

    The announcement did not mention potential sales of tax information. It said the proposed rules were guided by the principle "that tax return preparers may not disclose or use tax return information for purposes other than tax return preparation without the knowing, informed and voluntary consent of the taxpayer."  

    Bob Jensen's taxation helpers (including links to tax preparation software) are at http://faculty.trinity.edu/rjensen/bookbob1.htm#010304Taxation

    Questions
    Is it wise to advise older widows, widowers, and divorcees to live in sin?

    Answer: Probably Yes!

    "Senior Marriage Penalty," AccountingWeb, February 8, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=101758

    “It’s galling that they have a marriage penalty for seniors, when they’ve addressed it for everyone else,” Lonell Spencer, a 77-year-old retiree from Arcadia, Connecticut, told the Hartford Courant. The penalty he’s referring to is the tax on Social Security income, which applies to every dollar of income over $32,000 for married couples, compared to $25,000 for a single taxpayer. Recent efforts to eliminate marriage penalties for most married taxpayers have not significantly affected married seniors because the taxable income threshold is only slightly higher for couples than it is for singles. Further, the median family income for those over 50 is $35,200, according to AARP’s annual report, The State of 50+ America, indicating that more than half the families would be subject to the Social security income tax if one or more family members are receiving Social Security benefits.

    For nearly 50 years, Social Security benefits were tax-free; then in 1983 the rules were changed because the Social Security system was underfunded. Since then, while inflation adjustments have more than doubled the standard deduction and personal exemption write-offs, the tax on income from Social Security benefits has not been adjusted for inflation. If it had been, the Hartford Courant reports, then the threshold would be $50,000. Instead, the tax actually begins accelerating at $44,000 for married couples. According to The State of 50+ America,the real income of those over 50 has not increased since 1999. In fact, real income for 2004, the last period for which The State of 50+ America collected data, is actually lower than the real income levels of 1999.

    The issue is not just about taxing Social Security benefits. The law was intended to tax “high income” taxpayers but increasingly affects middle-income seniors, the Fresno Bee reports. The State of 50+ America found that more than half the income of 50.1 percent of Americans over 62 comes from sources other than Social Security. In addition, the financial assets of those over 65, adjusted for inflation, increased by 94 percent between 1992 and 2004, and more Americans over 50 are employed, The State of 50+ America reports.

    Unlike other “marriage penalties,” the senior marriage penalty has not received much attention. That is likely to change as baby boomers reach retirement age and get caught by the tax, Mark Luscombe, principal tax analyst for CCH, a Wolters Kluwer company, told the Fresno Bee. A search of the AARP web site however, indicates that either the issue has not yet become a significant issue to boomers or that it has not been incorporated into the organization’s lobbying efforts to date.


    There are property taxes and then their are total state taxes
    How does your state rank in terms of property taxes?

    "NY, NJ pay highest property taxes: study," by Anastasija Johnson, Reuters, September 12, 2007 --- Click Here

    New Jersey and New York state residents paid the highest property taxes in the country in 2006, as much as $6,500 more than the national median, according to a report released on Wednesday.

    Hunterdon County, New Jersey, about a 55-mile (89-km) drive from New York City, replaced Westchester County, New York, on top of the list of 10 counties with the highest median real estate taxes, the Tax Foundation, a nonpartisan tax research group, said in the report.

    Median real estate taxes for Hunterdon County totaled $7,999, followed by the $7,706 bill paid by homeowners in Nassau County, Long Island's western half.

    Third on the list was Westchester County, which is just north of New York City. Its residents paid $7,626, according to the report by the Washington, D.C.-based group.

    Nationally, the median homeowner property tax was $1,541.

    In New Jersey, the median value of a home was $366,600. New York's median home value was $303,400.

    By this measure, both states were far eclipsed by California, whose median home value was $535,700, the nation's highest. However, in California the median property tax was just $2,510.

    All of the other seven counties with highest median real estate taxes were also either in New York or New Jersey.

    The rankings were based on the latest data for 2006 from the U.S. Census Bureau in its American Community Survey, the Tax Foundation said.

    "The story for the states is much the same as for the top counties: the Northeast area of the country has the highest property taxes, along with pockets elsewhere, such as Wisconsin, Texas, and Illinois," the research group said.

    Texas has passed property tax reform since the data was tallied, it added.

    When the states were looked at, instead of just counties, New Jersey led the list of the top five, followed by New Hampshire, Connecticut, New York and Massachusetts.

    "These states also have high per capita income, and the highest property tax bills, in terms of dollar amounts, are usually found in the areas with the highest incomes," the study said.

    Arkansas, Mississippi, West Virginia, Alabama and Louisiana had the lowest median property taxes in 2006.

    New Jersey's statewide median real estate taxes were $5,773, while Louisiana's stood at only $179.

    The study also looked at median real estate taxes as a percentage of median home value. In this regard, nine of the top 10 counties were in New York, with one Texas county also making the list, the research group said.

    Total State Tax Burdens
    Tax Foundation Data --- http://www.taxfoundation.org/research/topic/9.html
    State-by-State Rankings in 2007 --- http://www.taxfoundation.org/research/topic/9.html

    Tax Foundation Facts & Figures (Free) ---
    http://taxfoundation.org/files/ff2012.pdf

    Some Interesting State Comparisons on State& Local Taxation, Business Climate, and Debt Per Capita
     http://www.cs.trinity.edu/~rjensen/temp/StateComparisons2012.htm

    When it comes to rankings with respect to per capita total taxation, there are more disputes as to what taxes to include and exclude. One listing of such taxes and results state by state as of January 2007 is at http://www.retirementliving.com/RLtaxes.html

    States are listed alphabetically in three sections:
    Alabama-Iowa, Kansas-New Mexico, New York-Wyoming

    Many people planning to retire use the presence or absence of a state income tax as a litmus test for a retirement destination.  This is a serious miscalculation since higher sales and property taxes can more than offset the lack of a state income tax. The lack of a state income tax doesn’t necessarily ensure a low total tax burden.

    States raise revenue in many ways including sales taxes, excise taxes, license taxes, income taxes, intangible taxes, property taxes, estate taxes and inheritance taxes.  Depending on where you live, you may end up paying all of them or just a few.

    This section of our Web site provides you with information on state income taxes, sales and fuel taxes, taxes on retirement income, property taxes and inheritance and estate taxes. as well as sales and fuel taxes. It is intended to give you some insight into which states may offer a lower cost of living.  To check out the state where you want to retire,  just select from the state menu above.

    State Sales Tax
    All states except Alaska, Delaware, Montana, New Hampshire and Oregon, collect sales taxes.   Some have a single rate throughout the state though most permit local additions to the base tax rate. Those states with a single rate include Connecticut, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Vermont, Virginia, and West Virginia.

    States with the highest sales tax are: California (7.25%), Mississippi (7.0%), New Jersey (7.0%), Tennessee (7.0%), Rhode Island (7.0%), Minnesota (6.5%), Nevada (6.5%), and Washington (6.5%).  Many cities and counties have the option of imposing an additional local option sales tax.  For instance, in Tennessee some cities add as much as 2.75%.  Nevada's sales tax varies by county and can be as high as 7.75%.

    Most states exempt prescription drugs from sales taxes. Some also exempt food and clothing purchases and a few also exempt non-prescription drugs.

    Fuel Tax
    Every state collects excise taxes on gasoline, diesel fuel and gasohol. The figures shown for each state reflect only the amounts controlled by the states and do not include additional taxes imposed on motor carriers. However, they do include other taxes paid at the pump by consumers.  Where applicable they include sales taxes, gross receipts taxes, oil inspection fees, underground storage tank fees and other miscellaneous environmental fees. They do not include the federal excise tax which is 18.4 cents for gasoline and 24.4 cents for diesel fuel.

    Nine states permit cities or counties to impose a local tax on fuel. Taxes in some states can also vary based on the wholesale price which is adjusted quarterly.

    Cigarette Tax
    Several states are continuing to raise excise taxes on cigarettes and other tobacco products in order to increase revenue.  The rates shown do not include the federal cigarette tax of 39 cents a pack.  Chicago is the most expensive place to buy cigarettes.  When you add the city tax, the Cook County tax and the state tax, the total is $3.66 per pack.  Evanston and Cicero (Illinois) also have city and Cook county taxes.  The top five states with the highest state tax on cigarettes are: New Jersey ($2.58), Rhode Island ($2.46), Washington ($2.025), tied for fourth place are Arizona, Maine, Michigan ($2.00), and fifth is Alaska ($1.80).   Counties and cities may impose an additional tax ranging from 1 cent to $2.00 on a pack of cigarettes. About 82% of what consumers pay for a pack of cigarettes (average cost $4.26 - including statewide sales taxes but not local cigarette or sales taxes) ends up going to the government in taxes and other payments rather than for the cigarettes.

    Personal Income Tax
    A total of 41 states impose income taxes. New Hampshire and Tennessee apply it only to income from interest and dividends. Seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) do not tax personal income. Of the 41 with a broad-based income tax, 35 base the taxes on federal returns, typically taking a portion of what you pay the IRS or using your federal adjusted gross income or taxable income as the starting point.

    Personal Exemptions and Standard Deductions
    Most states specify amounts for taxpayers and each of their dependents that can be used as an offset in determining taxable income. Most also specify the amounts that persons 65 or older can deduct.

    Medical/Dental Deductions
    Most states treat health care expenses as having already been deducted from federal returns. Two states (North Dakota and Oregon) allow full deductions while Indiana does not permit itemized deductions on state taxes.

    Federal Income Tax Deduction
    Only 12 of the 41 states with broad-based income taxes permit taxpayers to deduct federal income taxes.  This is an advantage if you are deciding between two states with similar rate structures but only one allows you to deduct. The latter would give you a lower effective tax rate.

    Retirement Income Taxes
    Under federal law, taxpayers may be required to include a portion of their Social Security benefits in their taxable adjusted gross income (AGI).  Most states begin the calculation of state personal income tax liability with federal AGI, or federal taxable income.  In those states, the portion of Social Security benefits subject to personal income tax is subject to state personal income tax unless state law allows taxpayers to subtract the federally taxed portion of their benefits from their federal AGI in the computation of their state AGI.

    Many states exclude Social Security retirement benefits from state income taxes.  The District of Columbia and 26 states with income taxes provide a full exclusion for Social Security benefits -- Alabama, Arizona, Arkansas, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, and Virginia.

    The remaining 15 states with broad-based income taxes tax Social Security to some extent:

    States are prohibited from taxing benefits of U.S. military retirees if they exempt the pensions of state and local government retirees.  Most states that impose an income tax exempt at least part of pension income from taxable income.  Different types of pension income (private, military, federal civil service, and state or local government) are often treated differently for tax purposes.  

    States are generally free from federal control in deciding how to tax pensions, but some limits apply.  State tax policy cannot discriminate against federal civil service pensions.  Ten states exclude all federal, state and local pension income from taxation.  These include Alabama, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania.  Among these 10 states, only Kansas taxes any Social Security income, but only to the extent it is subject to federal taxation.  These 10 states differ on the taxation of retirement income from private-sector sources.  Kansas and Massachusetts do not exclude any private-sector retirement income, but most of the others allow a fairly broad exclusion.  Pennsylvania allows a full exclusion.  Alabama excludes income from defined benefit plans.  Hawaii excludes income from contributory plans.  Illinois and Mississippi exclude income from qualified retirement plans.  Louisiana, Michigan and New York cap the private-sector exclusion at $6,000, $34,920 and $20,000, respectively.

    Five states (California, Connecticut, Nebraska, Rhode Island, and Vermont) allow no exemptions or tax credits for pension and other retirement income that is counted in federal adjusted gross income.  Most in-state government pensions are taxed the same as out-of-state government pensions.  However, Arizona, Idaho, Kansas, Louisiana, New York, and Oklahoma provide greater tax relief plans than they do for out-of-state government pension plans.  The District of Columbia also provides greater tax relief for DC government pensions than for state government pensions.

    Three states (New Jersey, Massachusetts, and Pennsylvania) do not allow IRA contributions to be deducted from taxable income.  Of the three, only Pennsylvania does not tax IRA earnings of taxpayers age 59 ½ years or older, since earnings are treated like pension income, which is tax exempt.

    Retired Military Pay
    Some states provide special tax benefits to military retirees.  Others simply follow the federal tax rules.  The states that do not tax retired military pay are: Alabama, Alaska, Florida, Hawaii, Illinois, Kansas, Kentucky*, Louisiana, Massachusetts, Michigan, Mississippi*, Missouri*, Nevada, New Hampshire, New Jersey, New York, North Carolina*, Oregon*, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming.
    (*With conditions)

    Property Taxes
    Taxes on land and the buildings on it are the biggest source of revenue for local governments.  They are not imposed by states but by the tens of thousands of cities, townships, counties, school districts and other assessing jurisdictions.

    The state's role is to specify the maximum rate on the market value of the property, or a percentage of it, as the legal standard for the local assessors to follow.  The local assessor determines the value to be taxed. You can't escape property taxes in any state.  But you can find significantly low rates in certain parts of the country.

    Most states give residents over a certain age a break on their property taxes.  With some taxes, you'll need a relatively low income to qualify.  Forty states provide either property tax credits or homestead exemptions that limit the value of assessed property subject to tax.

    There may be other tax breaks available, depending on where you live.  All 50 states offer some type of property tax relief program, such as freezes that will lock in the assessed value of your property once you reach a certain age, or deferral of taxes until the homeowner moves or dies.  They ultimately have to be paid.  In addition, counties and municipalities often have their own property tax relief plans.

    Retirees with low incomes and high housing costs may face property tax bills that are higher than they can manage.  Some states target property tax relief to those homeowners bearing the greatest burden.  Property tax reform that takes into account a homeowner's ability to pay, such as a so-called "property tax circuit breaker," can better protect low-income homeowners from rising property taxes that accompany rising property values.  Targeted property tax relief avoids sharp reductions in funding for locally provided public services and inequities based solely on date of purchase.

    Other property tax relief strategies that may be used to target property tax relief include homestead exemptions which exempt a certain amount of a home's value from taxation, credits to rebate a certain percentage of taxes paid, and deferral programs to allow low-income elderly homeowners to defer payment of property taxes until property is sold.

    Property Tax Swaps
    More and more states are cutting property taxes in exchange for increases in sales or other taxes.  Idaho, New Jersey, South Carolina and Texas took this step in 2006.  In New Jersey the state increased the sales tax by 1 cent with half of it designated for property tax relief in 2006 and possibly the full amount in future years.  Voters in Idaho also approved a 1 cent sales tax increase that reduces property taxes by $260 million.  South Carolina's Republican governor, Mark Sanford, signed a measure that promises to cut average property taxes by 60% and makes up the revenue by increasing the sales tax by 1 cent.  The revenue will be used to support the Homestead Exemption Fund.  In Texas the state lowered property taxes by increasing the taxes on cigarettes and some business activity.

    Best and Worst States: Based on data from the 2002 census, the following five states have the lowest local property taxes per capita/year. They are Arkansas ($191), Alabama ($285), Kentucky ($376), New Mexico ($380), and Oklahoma ($425). The states with the highest local property taxes per capita/year are: New Jersey ($1,871), Connecticut ($1,733), New York ($1,402), and Rhode Island ($1,369).

    For more information about property taxes in all states, click here.

    Inheritance and Estate Taxes
    An inheritance tax is an assessment made on the portion of an estate received by an individual. It differs from an estate tax which is a tax levied on an entire estate before it is distributed to individuals. It is strictly a state tax. Eleven states still collect an inheritance tax. They are: Connecticut, Indiana, Iowa, Kansas, Kentucky, Maryland, Nebraska, New Jersey, Oregon, Pennsylvania and Tennessee. Connecticut will be phased out after 2005. In all states, transfers of assets to a spouse are exempt from the tax. In some states, transfers to children and close relatives are also exempt.

    As for estate taxes, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) phases out the federal estate tax that culminates in full repeal in 2010. On a much faster track, the legislation repeals over four years -- 2002 through 2005 -- the federal estate tax credit to which state estate taxes are tied. In most states, estate and inheritance taxes are designed in such a way that states face either a full or partial loss of estate tax revenues as this credit is phased out. States can avert this loss of revenue by "decoupling." Decoupling means protecting the relevant parts of their tax code from the changes in the federal tax code, in most cases by remaining linked to federal law as it existed prior to the change.

    Seventeen states and the District of Columbia have retained their estate taxes after the federal changes. Of these, 15 states -- Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Ohio, Oregon, Rhode Island, Vermont, Virginia, and Wisconsin -- and the District of Columbia decoupled from the federal changes. Two states -- Nebraska and Washington -- retained their tax by enacting similar but separate estate taxes.

    Of these, 12 states acted to decouple from the federal changes. Illinois, Maine, Maryland, Massachusetts, New Jersey, Rhode Island, and Vermont enacted legislation linking their estate taxes to the federal estate tax as in effect before the 2001 tax bill. Minnesota, which passes a tax conformity package each year, explicitly elected not to change its estate tax to conform to the federal changes. North Carolina elected to decouple at least through 2005, and Wisconsin has decoupled through 2007. Nebraska decoupled by creating a separate state estate tax on estates that exceed $1 million based on the federal law before the 2001 changes. In 2005, Washington enacted a separate tax with a somewhat different rate structure that applies to estates that exceed $2 million after the state's original decoupling was nullified in court.

    In addition, five states and the District of Columbia will remain decoupled unless they take legislative action. In five states -- Kansas, New York, Ohio, Oregon, and Virginia -- and the District of Columbia, estate tax laws are written in such a way that the state will not conform to the federal changes unless it takes legislative action.

    Tax Burden By State
    If all other things are equal, a state with a lower tax burden is a more attractive place to retire than a state with a higher one. To get a true sense of which state is less expensive, you need to look at state and local tax burdens. Only then do the low tax states stand out.

    Taxes that are included in the state and local tax burden are as follows:

    *Property Taxes (represents an average; individual property taxes vary by locality)
     *Sales and Gross Receipts (different taxing entities may add to the state sales tax)
    *Selective Sales Taxes (alcoholic beverages, amusements, insurance premiums, motor fuels, parimutuels, public utilities, tobacco products, and others)
    *Licenses (alcoholic beverages, amusements, corporation, hunting and fishing, motor vehicles, motor vehicle operators, public utilities, occupation and business) *Other Taxes (individual income, corporation net income, death and gift, documentary and stock transfer, severance, and others)

    The data presented on the linked page that follows shows states ranked by tax burden as a percentage of income. The taxes include those paid by individuals AND businesses to state and local governments. Businesses are included because they usually pass their tax costs on to consumers.

    The top five states where the tax burden as a percent of income is the highest are: Vermont (14.1%), Maine (14.0%), New York (13.8%), Rhode Island (12.7%), and Ohio (12.4%).  The United States average is 11.06%.  The District of Columbia is 12.5%.

    The five states with the lowest tax burden as a percent of income are: Alaska (6.6%) 50th, New Hampshire (8.0%) 49th, Tennessee (8.5%) 48th, Delaware (8.8%) 47th, and Alabama (8.8%) 46th.  Alaska has the lowest tax burden because it levies significant severance taxes on oil extracted from the state - taxes that are included in the price of oil sold thereby enabling Alaska to collect taxes that are paid by consumers across the country.  As a result, the state sends checks to all residents at tax time.

    Other states that export a significant fraction of their severance tax burdens are Texas and New Mexico. States that "import" the largest portions of those taxes are California, Pennsylvania and New York.

    Since 2000, five states have experienced double-digit drops in their tax burden rankings.  New Mexico has dropped 29 places, Idaho 23 places, and Utah 19 places.  Georgia and North Dakota have dropped 15 and 10 places, respectively.  New jersey has seen the highest increase since 2000, jumping from 24th place to 10th place.  Arkansas and Indiana have both risen 10 places.

    The data supporting the tax burden figures comes from the U.S. Department of Commerce's Census Bureau and the Bureau of Economic Analysis. It is the most authoritative source of income and total tax collection data. Its projections of the tax burden for 2007 come from data as yet unpublished.

    To view a table showing the effective state and local tax burdens as a percentage of income, the tax burden per capita, and income per capita, click here. The table does not reflect the tax advantages available to seniors in many states and municipalities that reduce their property taxes and/or personal income taxes.

    Sources:
    * Individual state tax and revenue departments
    * State Tax Handbook (2007); published by CCH Inc.
    * Federation of Tax Administrators 
    * The Tax Foundation
    * National Conference of State Legislatures
    * U.S. Department of Commerce, Bureau of Economic Analysis

    Updated: January 2007

    Tax Foundation Data --- http://www.taxfoundation.org/research/topic/9.html

    Rankings in 2007 --- http://www.taxfoundation.org/research/topic/9.html


    A Comparative Analysis of State Tax on Business, Tax Foundation, 2012 ---
    http://www.taxfoundation.org/files/lm_2012_proof_08.pdf

    . . .

    Table 7 on Page 14

    Overall Results

                                                                                Mature Firms                                   New Firms

                                                        Index Score        Rank                    Index Score     Rank

                 Alabama                                 86.0                13                             86.4             19

    Alaska                                    97.7.                23                            81.1             17

    Arizona                                   86.2                 14                          114.9              31

    Arkansas                               102.8                 30                            69.6               8

    California                              105.8                 34                          133.8              45


    Colorado                                105.4                33                          135.1               47

    Connecticut                               93.9                21                          109.3               30

    Delaware                                   98.1               24                             80.5               16

    Florida                                       90.6               19                           122.8               36

    Georgia                                      71.8                 3                            66.7                   6


    Hawaii                                      142.6.              49.                         151.4                50

    Idaho                                         111.7               38                          116.0                32

    Illinois                                         126.4               45                            94.2                24

    Indiana                                        122.7               43                            80.1                15

    Iowa                                            116.5              40                          126.8                 41


    Kansas                                        133.5               47                          141.6                 48

    Kentucky                                        88.4              18                             69.4                   7

    Louisiana                                       84.1              10                             52.8                   2

    Maine                                            100.4              27                              87.3                 20

    Maryland                                        82.4                8                           134.7                  46


    Massachusetts                              123.6               44                         128.2                   43

    Michigan                                            98.8               25                           96.6                   25

    Minnesota                                         112.7              39                         119.6                   35

    Mississippi                                         109.2              37                           89.3                   21

    Missouri                                             108.8              36                           97.0                   26


    Montana                                               93.1               20                           93.8                  23

    Nebraska                                             82.5                 9                           31.7                    1

    Nevada                                                 77.7                 4                          124.8                 38

    New Hampshire                                     99.7                26                           91.0                  22

    New Jersey                                         121.1                41                         104.9                 27


    New Mexico                                            97.4               22                           80.0                  14

    New York                                               121.1              42                         124.4                   37

    North Carolina                                         80.8                 7                           79.9                   13

    North Dakota                                            87.0               15                          83.5                    18

    Ohio                                                         78.1                 5                           58.7                      3


    Oklahoma                                                 87.1               16                          65.3                       5

    Oregon                                                     100.5               28                       106.3                     28

    Pennsylvania                                           145.1               50                       145.9                     49

    Rhode Island                                           129.1               46                       128.4                     44

    South Carolina                                           103.8               32                       119.4                     34


    South Dakota                                              56.0                 2                         77.7                      11

    Tennessee                                                   101.3               29                       108.7                      29

    Texas                                                            85.9              12                       127.7                       42

    Utah                                                              80.2                 6                        76.7                       10

    Vermont                                                       103.7                31                       79.2                       12


    Virginia                                                           84.4                 11                     125.9                      39

    Washington                                                     87.2                 17                     126.3                       40

    West Virginia                                                140.2                 48                     118.5                       33

    Wisconsin                                                    107.7                  35                       59.8                         4

    Wyoming                                                       48.3                    1                       73.3                          9

    Continued in article

    Jensen Comment
    Of course there are many other factors to consider when running a business in a given state. First there are markets to consider. For example Wisconsin and Ohio look attractive from a tax standpoint but these states are unattractive to labor intensive business firms because of union power within those states. Such firms may prefer moving into Alabama, Arkansas, or Mississippi in spite of having to pay higher taxes. Many firms have moved from New England to the south because of higher wages and taxes in New England. Taxes and wages have been a disaster for some states. For example, Hawaii was at one time a thriving grower of pineapples. Now most of the pineapple growers have moved elsewhere because of taxes and wages.

    Another thing to consider are subsidies to business firms that offset taxes and wages. For example, when threatened with a huge movements of business firms out of Illinois (including huge firms like Caterpillar and Sears), Illinois commenced to offset its high business taxes and wages with business subsidies.

    Bob Jensen's threads on taxation are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

     


    "IRS Draws Lines for Political Advocacy," Doug Lederman, Inside Higher Ed, June 12, 2007 --- http://www.insidehighered.com/news/2007/06/12/irs

    As the 2008 campaign begins to heat up, the Internal Revenue Service — which is responsible for carrying out federal tax law that restricts political activity by nonprofit organizations — has issued guidelines aimed at giving colleges and other tax-exempt organizations practical advice about where the lines are and how not to cross them.

    The guidance, which comes in the form of a revenue ruling that has formal legal standing, lays out 21 actual situations, in areas such as voter education efforts, candidate appearances and issue advocacy — that raised questions about whether the activity a charitable organization engaged in should be considered inappropriate participation in a political campaign. Although the underlying laws and regulations are longstanding, the IRS document is an effort to formalize what have been “pretty subjective” standards about what’s allowable (or not), said Bertrand M. Harding Jr., a tax lawyer who specializes in nonprofit issues. “These offer insight into the question of ‘Does this cross the line or not cross the line?’ in fairly helpful fashion,” Harding said.

    Three of the case studies — which as is typical of IRS publications, do not identify the involved parties — directly involve colleges or universities.

    In one, a university president wrote in his monthly column in an alumni newsletter ("My Views") that “[i]t is my personal opinion that Candidate U should be reelected.” Although the president used personal funds to pay for the cost of his column in that one issue, “the newsletter is an official publication of the university. Because the endorsement appeared in an official publication .... it constitutes campaign intervention” by the university, the IRS concludes.

    Continued in article


    Taxes In-Depth
    Everything you always wanted to know about form 1040 but were afraid to ask from Taxes In-Depth --- http://www.taxesindepth.com/

    Reviews and links to free tax preparation programs ---
    Plan to Pay Uncle Sam ---  http://taxes.about.com

    Updates on other tax helper sites from Smart Stops on the Web, Journal of Accountancy, August 2005 --- http://www.aicpa.org/pubs/jofa/aug2005/news_web.htm

    TurboTax, TaxCut Expand Offerings for Federal Income Tax Via IRS Web Site; 
    State Tax Returns Are Not Included
    If you've been using a basic version of some package like Turbo Tax and you've not yet paid to upgrade this year, you might be interested in going to to the IRS Free File site at http://www.irs.gov/efile/article/0,,id=118986,00.html 

     

    For the first time, all taxpayers can prepare and file federal returns electronically for free through the IRS Web site.  In the past, participants in the Free File program, a partnership between the IRS and private tax preparers, had to meet criteria related to age, income or state of residence. The program is designed to encourage more taxpayers to file electronic returns, which are cheaper for the IRS to process. This year, tax software giant Intuit, maker of TurboTax software, has scrapped all restrictions. For now, anyone who goes to www.irs.gov, clicks on “Free File” and links to TurboTax can prepare and file their taxes at no charge. Two other preparers, eSmartTax and TaxACT, are also offering their services to all taxpayers for free.
    Sandra Block, "This year, everyone can file taxes free at IRS Web site:  Some preparers drop restrictions," USA Today, January 19, 2005 --- http://www.usatoday.com/printedition/news/20050119/1a_bottomstrip19_dom.art.htm 
    The terrific IRS Web site is at http://www.irs.gov/ 

    Uncle Sam, Meet Uncle Fed www.unclefed.com 
    This site bills itself as the “complete online resource for tax relief” and lives up to that slogan with more than a dozen sections of information, links and resources for taxpayers, preparers and professionals alike. The Tax Help Archives house instructions and forms—from 2000 back to 1996—for help in preparing delinquent tax returns.

     
    If the great IRS site cannot answer your questions, then I highly recommend Will Yancey's great helpers at  http://www.willyancey.com/ 

    As part of an ongoing effort to improve ethical standards for tax professionals and to curb abusive tax avoidance transactions, the Treasury Department and the Internal Revenue Service have issued final regulations amending Treasury Department Circular 230.  “The playing field for tax advisors has changed with these standards for tax opinions, the new penalties that Congress recently enacted and other steps the IRS has taken to detect and deter abusive transactions,” said Namorato. "Most professionals share our concern about the egregious behavior of some of their colleagues and we appreciate the efforts of responsible practitioners to promote ethical practice. We are taking steps to ensure that all practitioners live up to their professional obligations.”
    AccounitngWeb, December 22, 2004 --- http://www.accountingweb.com/item/100245 
    New Tax Guide Available from the IRS --- http://www.irs.gov/newsroom/article/0,,id=131175,00.html

    Blog ---www.taxfoundation.org
     

    Are you moving overseas?
    The 2004 Jobs Act rewrote the tax and reporting rules for U.S. citizens and foreign residents moving overseas. Here are planning suggestions for this new environment --- http://www.aicpa.org/pubs/jofa/sep2005/lifson.htm

    Great Comparisons of Tax Software
    "Tax Software Makes the Grade, by Stanley Zarowin, Journal of Accountancy, September 2005, pp. 48-60 --- http://www.aicpa.org/pubs/jofa/sep2005/zarowin.htm

    From Smart Stops on the Web, Journal of Accountancy, January 2006 --- http://www.aicpa.org/pubs/jofa/jan2006/news_web.htm

    Resources for Tax Time
    www.yearendcentral.adp.com
    CPAs and office managers doing payroll can make this tax season easier with this ADP-sponsored Web site. Find all state and federal tax forms, a guide to penalty and interest rates and federal tax calculations. Read case studies in the State Unemployment Insurance section on employer liability and use a claim cost calculator and glossary. Go to the Tax Compliance & Financial Services Toolbox to find STATcentral with 2004, 2005 and 2006 payroll calendars, reporting forms and the Payroll & Tax Monitor, which highlights and reports on new and changing state tax rules.

    "Forbes “Best of the Web”: Tax Planning," AccountingWeb, August 29, 2005 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=101242

    There are many resources available on the Internet to help you and your clients with tax planning. Two of the best, according to Forbes’ Best of the Web: Tax Planning are the Financial Planning Toolkit from CCH and AccountantsWorld Tax and Accounting Directory.

    CCH’s Financial Planning Toolkit offers an excellent Basic Tax Guide and animated calculators with detailed explanations and printable reports. Here users will find top tax stories in the news and sections including:
     

    • Personal Financial Advisor
       
    • Financial Planning Process
       
    • Investing
       
    • Insurance and Risk Management
       
    • Retirement Planning
       
    • Estate Planning
       
    • Tax Planning

    The site’s only weak spot, according to Forbes, is that it links only to the Internal Revenue Service (IRS) web site.

     


    Converting Home Videos to DVDs

    Q: Are there services that will take home video and burn it to a DVD


    Question
    Where can you find a good retirement calculator?

    "Financial Tools on the Web," by Kelly Greene, The Wall Street Journal, July 21, 2006, Page B5 --- http://online.wsj.com/article/SB115350728686713845.html?mod=todays_us_money_and_investing

    Many readers emailed us notes like these when we announced the launch of "Ask Encore" this month and solicited questions about retirement-related financial issues.

    Two of the most comprehensive calculators we have come across are at analyzenow.com, a Web site by Henry Hebeler, an author and retired Boeing Co. executive. Begin by clicking on "Free Programs." A preretirement planner there collects the information Mr. Guttman lists, and can help you put together budgets for current expenses as well as those expected in retirement to see if your savings are on track. Retirement expenses such as medical bills (including Medicare Part B premiums) could rise more quickly than inflation; this tool lets you tinker with anticipated increases in future costs. One caution: To make your predictions as accurate as possible, plan on spending at least a couple of hours going through old financial records.

    The postretirement calculator cranks out the amount you can spend each year, using your age, number of years you want the investments to last, taxes, income from investments (other than your home), reserves, debt, Social Security, pensions, and any other income. If you have a pension with no cost-of-living adjustment, make sure that's taken into account. In the spot for reserves, be sure to include savings for future home repairs and car purchases, too, Mr. Hebeler says.

    A calculator at troweprice.com figures out your nest egg's chances for outlasting you by examining how it would perform in 500 hypothetical future economic scenarios. (Click the applicable link below "individual investors," then go to the "investment planning & tools" tab and click "retirement planning." There, you'll see the link to the retirement-income calculator.) WSJ.com also offers retirement-planning tools at WSJ.com/BookTools.

    Firecalc.com uses investment returns since 1871 to figure out how often your strategy would have paid off historically. Of course, tools like these come with a big caveat: Nobody can predict the future. But if, say, firecalc.com indicates that your nest egg might have survived the Great Depression and other financial calamities that have hit the U.S. in the past 135 years, at least you can take comfort in that.

     Ask Encore/Focus on Retirement is a weekly column answering readers' questions about retirement and personal finance -- from annuities and bonds, to trusts and inheritance issues. Send questions to encore@wsj.com.

    Bob Jensen's threads on calculators are at http://faculty.trinity.edu/rjensen/bookbob3.htm#080512Calculators


    "Five Best Books on Taxes IRS on your mind? Tax expert Randy Blaustein declares these books to be major assets," The Wall Street Journal, January 28, 2006; Page P8 ---
    http://online.wsj.com/article/SB113839091155258477.html?mod=todays_us_pursuits

    1. The IRS Problem Solver
    By Daniel J. Pilla
    Regan Books, 2003

    Daniel J. Pilla provides nine valuable secrets to winning your audit -- but bear in mind that the general rule is never try to handle an IRS audit yourself (it's like trying to perform your own brain surgery). Another important rule: Never walk into an audit without knowing the issues. Anticipate the questions you are likely to be asked and be prepared with the documentation that will be needed to resolve the matter in your favor. The author supplies plenty of sample form letters -- requesting an abatement of penalties, for instance, or asking for the release of a levy placed on your salary -- that could be used to respond to almost anything the IRS throws at you.

    2. Confessions of a Tax Collector
    By Richard Yancey
    HarperCollins, 2004

    A reminiscence of the author's 12-year career as a revenue officer (a field employee of the IRS's Collection Division), this book reveals how the officers are taught to impose their will on delinquent taxpayers. Mr. Yancey recalls the advice about the opposition offered by a senior revenue officer shortly after he was hired: "Find where they are. Track what they do. Learn what they have. Execute what they fear." This book is replete with stories about the nuts and bolts of collecting taxes from people who either don't have the money or simply don't want to pay. "'Never enter a taxpayer's kitchen,' one training manual cautioned us. 'A kitchen usually has knives and other implements which may be used as weapons.'"

    3. What the IRS Doesn't Want You to Know
    By Martin S. Kaplan
    Wiley, 2003

    This is the ninth edition Martin S. Kaplan's book, significantly updated since the certified public accountant began a decade ago unveiling information that other tax professionals were afraid to discuss publicly for fear of IRS retaliation. Mr. Kaplan does a compelling job of explaining how to tell if the IRS suspects you of criminal tax fraud. He also lays out how the Criminal Investigation Division proves the critical element of "willful intent" when taxpayers refuse to make specific records available or submit false invoices to support a tax-return item. The author reveals his trade's secrets -- for example, how companies designated "S" corporations can be used by shareholders for deductions that are unlikely to attract the IRS's scrutiny.

    4. Tax This! An Insider's Guide to Standing Up To the IRS
    By Scott M. Estill
    Self-Counsel Press, 2000

    The author, a former IRS senior trial attorney, tells you how to level the playing field and win when dealing with the IRS. The advice (for individuals and businesses) is accompanied by citations of IRS code and regulations, useful for readers who want more information on a particular issue. Taxpayers who owe the IRS money will find here all the instructions they need on the important questions. One chapter, titled "Fight the IRS in Court," offers readers a primer in ways to represent themselves in Tax Court. Mr. Estill's advice -- forceful and direct -- is research the law, be organized, stand when speaking and, not least, don't ever interrupt the judge.

    5. J.K. Lasser's Your Income Tax 2006
    By J.K. Lasser Institute
    Wiley, 2005

    The current incarnation of the Lasser franchise, so beloved by taxpayers, encompasses some 816 pages on every possible detail concerning the preparation of your 2005 personal income tax return. One chapter, devoted entirely to the IRS, includes such matters as your odds of being audited and the average itemized deductions for 2003 (medical, taxes, charity, interest) based on adjusted gross income. It also offers good basic information about preparing for an audit and handling one. And the authors explain how to recover the costs of a tax dispute if the IRS took an unreasonable position that forced you to incur legal fees and other expenses in order to win your case.

     

    From Smart Stops on the Web, Journal of Accountancy, September 2005 ---


    Stop Threats Near and Far www.isalliance.org 
    Are your company’s computers suffering from Web insecurity? Give your PCs peace of mind with a visit to the Internet Security Alliance e-stop. Free registration gets you three best practices guides on cybersecurity for individuals, senior managers and small businesses. The News section offers the “Insider Threat Study: Computer System Sabotage in Critical Infrastructure Sectors.”

    Get in the Know www.software-engine.org 
    CPAs and IT managers looking for software can click on this Web site for free downloads, program reviews and vendors. A search for accounting software returns links to sites that offer demos, explanations and pricing information. Or you can search categories such as antivirus, banking, content management, telecom and Web design software.

    Risky Business www.disasterrecoveryworld.com
    CPAs and IT professionals will find business continuity and disaster recovery planning tips in a slide-show presentation at this Web stop. Other resources include articles, papers and real-life disaster recovery stories, guidelines for testing a plan and a suggested statement of support from the executive level of your organization.

    For the Record www.itic.org 
    The Information Technology Industry Council keeps track of regulatory policy documents such as guidelines for grounding IT equipment and lists international IT standards through a link to the International Committee for Information Technology Standards’s e-stop. Categories of interest for CPAs include electronic commerce, export controls, intellectual property, taxation and telecommunications.

     

    Federal Depreciation Rates --- http://www.smbiz.com/sbrl012.html

    You can add to or take from the TaxAlmanac
    TaxAlmanac: The free online tax research resource and community --- http://www.taxalmanac.org/index.php/Main_Page

    "Users Size Up Tax Software, by Stanley Zarowin, Journal of Accountancy, October 2004, pp. 70-80 --- http://www.aicpa.org/pubs/jofa/oct2004/zarowin.htm 

    Although AICPA tax practitioners rated this year’s crop of tax-preparation software superior to the products they used last year, they gave lower grades to vendors’ technical support. But for many tax practitioners, the bigger story was that the number of tax-software products continued to decline, forcing newly orphaned customers to go through the agony of selecting a new package and converting their client tax files to make them compatible. Such were the highlights of the Journal of Accountancy’s spring 2004 survey of 2,010 AICPA tax-department members. The average satisfaction rating for the nine professional products included in the survey was 4.09—out of a possible 5.00—up from last year’s average of 3.61, with Intuit’s Lacerte posting the highest overall ratings with a score of 4.43 (see exhibit 2). Three products tied for third place with a score of 4.35: Drake Software, Thomson Creative Solutions’ UltraTax and CCH Tax and Accounting’s ProSystem fx Tax.

    The average cumulative rating for technical support slipped sharply to 2.44 from 3.50 last year, although respondents reported an improvement in the way their software ran on their networks—4.09, up from 3.50.

    For a list of the vendors included in the survey, see exhibit 1.

    SHRINKING MARKET The survey also revealed that not only is the field of vendors dwindling, but the existing market is becoming more concentrated, with four products appearing to lead the field with the most customers: Intuit’s Lacerte and ProSeries, CCH’s ProSystem fx Tax and Thomson Creative Solutions’ UltraTax.

    Evidence of the growing concentration can be deduced from the data in exhibit 2. Although more than twice as many tax practitioners responded this year than last (2,010 vs. 993), making the 2004 data more statistically reliable, only nine products received the 10 or more responses needed to qualify for inclusion in the survey. That’s down from 12 last year.

    In addition, tax year 2004 will see at least three fewer tax software products on the market. Thomson Creative Solutions, which owns UltraTax and RIA’s GoSystem Tax RS, acquired the customer lists of Tax Relief and Exact Tax, both of which withdrew from the market. Also, Best Software sold its CPA Software Visual Tax customer list to CCH, which will be attempting to migrate those customers to its ProSystem fx Tax.

    Caveat: The lopsided response in favor of just four products makes the individual scores of the remaining five products statistically unreliable. GoSystem Tax RS received just 50 responses, Max Plus 44, TaxWorks 29, Drake 17 and TaxWise 12. However, we believe the cumulative average of all nine product scores in exhibit 2 is statistically reliable.

    Currently, there are only 16 tax software products on the market that provide all the necessary federal forms and can calculate taxes for every state with an income tax. That’s down about 20% in the past decade. Aside from the packages reviewed in this survey, other products on the market include GreatTax, Orrtax, Dunphy, Taxslayer, Petz Crosslink, TaxSimple and TaxAct.

    When a software publisher acquires a competitor, it usually just wants the customer list; the acquired product usually becomes defunct and the buyer seeks to convert the orphaned customers to its brand. But when Intuit acquired Lacerte a few years ago, it took a different tack: Because both the Lacerte brand name and product were so popular, Intuit decided to continue the package under a joint name.

    TROUBLE FOR PRACTITIONERS The current turnover rate—the percentage of customers voluntarily moving to a new product or being forced to switch because their current product was being withdrawn—ran at about 13% last year (see exhibit 3).

    Most tax practitioners are not happy about market consolidation—and for good reason. Switching tax packages is no small matter. First of all the CPA firm has to install the new product on its network, praying its computer system is sufficiently robust to handle the change; if it isn’t, the customer must go through the often difficult and expensive process of upgrading the hardware.

    Then, since each tax package operates differently, the firm’s tax professionals must learn to run the new software and become familiar with all its unique technical nuances. And finally, the firm has to put all its client tax data through the new vendor’s conversion software to make the returns compatible with the new package—all the while worrying whether the conversion process will leave it with hours of work tracing for evidence of errors.

    Continued in the article

    What if you are on leave of absence outside the U.S.

    A Trinity professor had a tax question for faculty on leave outside the U.S.   My good friend Amy Dunbar from the University of Connecticut sent us some guidance on this matter.  

    Amy’s answer may be of interest to other faculty planning leaves outside the U.S.

    I might add that forty years ago I was a tax accountant, but now I’m considered a menace to the world when it comes to tax questions.  I now put my stuff into TurboTax and cross my fingers.   In previous TigerTalk messages I noted that basic tax software, including TurboTax and TaxCut are now free as long as you are willing to file electronically --- http://www.irs.gov/efile/article/0,,id=118986,00.html

    You have to scroll down to read Amy’s message.

    Bob Jensen

    -----Original Message-----
    From: Amy Dunbar 
    Sent:
    Sunday, February 06, 2005 10:36 PM
    To: Jensen, Robert
    Subject: RE: a question about the tax code

     

    For a US person to exclude foreign earned income under Sec. 911, she must be a bona-fide resident of the foreign country OR be physically present in the foreign country 330 out of 365 days. Tell your friend to get IRS Publication 54 for guidance.  I copied the following excerpts from CCH.

     

    U.S. citizens and resident aliens of the United States are generally taxed on their worldwide income. For tax years beginning in 2002 through 2007, qualified individuals who live and work abroad may elect to exclude from gross income up to $80,000 of foreign earned income, as well as certain employer-provided housing costs (Code Sec. 911(b)(2)(D) and Reg. §1.911-1(a)). Individuals with self-employment income are also entitled to deduct certain non-employer-provided housing costs (Code Sec. 911(c)(3) and Reg. §§1.911-4(d)(3) and (e)). The sum of the exclusions and the deduction may not exceed a taxpayer's foreign earned income (Code Sec. 911(d)(7)). The dollar amount limitation on the Code Sec. 911 exclusion increases annually; for a schedule of the increased maximum exclusions, see ¶28,049.025.

    For the exclusions and the deduction to apply, the taxpayer's tax home must be in a foreign country (see ¶28,049.021). The following are not considered foreign countries for purposes of the exclusions and deduction: American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, the Virgin Islands and the Antarctic region (Reg. §1.911-2(g)-(h); see also IRS Pub. 54, "Tax Guide for U.S. Citizens and Resident Aliens Abroad" (for 2003 returns)).

    Taxpayers living and working abroad may also exclude from gross income the value of meals and lodging provided by an employer under the same general rules that apply to all taxpayers (Code Sec. 119). However, the requirement that lodging be furnished on the employer's business premises in order for the exclusion to apply is modified in the case where employment in a foreign country is in a remote area (see ¶7222.021).

    In addition to the exclusions and deductions discussed above, a taxpayer may also be entitled to a credit for foreign taxes paid on his earnings abroad that are not excludable (see ¶27,826.021).

    In computing
    U.S. tax liability, a taxpayer may not claim exclusions, deductions or credits that are properly allocable or chargeable under Reg. §1.861-8 to amounts that are excluded from income under Code Sec. 911(a). Thus, a taxpayer may not deduct unreimbursed employee business expenses against wage income that was excluded as foreign earned income (Code Sec. 911(d)(6) and Reg. §1.911-6(a)).

     

    Physical presence test. A citizen or resident alien of the United States whose tax home is a foreign country will be eligible for the foreign earned income exclusion and housing cost exclusion if he is present in a foreign country or countries for 330 days out of any consecutive 12-month period (Reg. §1.911-2(d)). The taxpayer does not have to be present in the foreign country solely for business purposes in order to meet this test. Some of the qualifying foreign presence time can be vacation time.

    The 12-month period may begin on any day of the calendar month. The period ends with the day before the corresponding calendar day in the 12th succeeding month, or, if there is no corresponding calendar day, with the last day of the 12th succeeding month. A full day for purposes of the 330-day requirement is a period of 24 consecutive hours beginning at
    midnight .

    Any period of 12 consecutive months may be used, provided the 330 days on foreign soil fall within that period. It is not necessary to begin or end any 12-month period with the first full day after arrival in a foreign country or the last full day before departure. Also, any 12-month period may overlap another.

    Example (4):

    A taxpayer arrives in a foreign country on April 24, 2004 , at noon , and remains in the foreign country until 2 p.m. on March 21, 2005 . Among other possible twelve-month periods, the taxpayer is present in the foreign country an aggregate of 330 full days during each of the following twelve-month periods: March 21, 2004 , through March 20, 2005 , and April 25, 2004 , through April 24, 2005 .


    Waiver of time limits. With one exception, the 330 day requirement is unconditional. Thus, if a taxpayer falls short of the 330 day requirement because of a vacation in the
    U.S. or because illness forces a return to the U.S. , then the physical presence test is not satisfied.

    However, relief from the residence requirements is provided for taxpayers who would otherwise satisfy the bona fide residence or the physical presence test except for the fact that they were forced to leave foreign countries because of civil unrest, war, or other adverse conditions (Reg. §1.911-2(f)).

    Taxation Sites from Smart Stops on the Web, Journal of Accountancy, October 2004, Page 19 --- http://www.aicpa.org/pubs/jofa/oct2004/news_web.htm 

    TAX SITES

    Links for Professionals
    www.taxsites.com
    CPAs and tax preparers will want to bookmark this directory to accounting, payroll and tax Web sites. In the tax software category, users can find many links to electronic programs for income tax preparation, payroll and 1099s, estate, trust and retirement, and sales and use taxes. Other topics include federal tax laws, rates and tables, tax forms and publications and tax associations such as the Institute for Professionals in Taxation.

    E-Filing Help
    www.autotax.com
    Tax preparers who electronically file returns will find links to federal forms and instructions, www.irs.gov and state e-file application requirements here. Users can find their way to all state revenue and tax e-sites, and download Form 8633, Application to Participate in the IRS e-file Program. Shoppers can view a free demo of Tax Link’s AutoTax Pro software.

    Wealth Preservation Resources
    www.estateplanninglinks.com
    Elder law attorney Dennis Toman’s e-stop offers estate planners links to Web sites with current and archived IRC section 7250 rates, estate tax calculators and IRS tax tables. Visitors can get a free seven-part course on estate planning subjects including joint tenancy, living trusts and probate, as well as find estate planning glossaries, articles such as “Top Seven Estate Planning Questions” and the e-pamphlet Life Advice About Making a Will.

    Calculators Aplenty
    www.completetax.com
    CPAs and tax preparers will want to bookmark this Web stop for a useful offering—free calculators. Visitors can find auto expense, home and personal finance, investment, lease, refinance and retirement calculators. Other site resources, such as the 2004 tax guide, current and archived tax news, forms, tables, worksheets and a tax glossary, also will come in handy.

    For Gift Tax Returns
    www.709accountant.com
    CPAs and their clients can read a comprehensive guide to the federal gift tax at this e-stop. Topics of discussion include annual exclusions, charitable deductions, due dates and extensions, generation-skipping transfers and marital deductions. Visitors also can access gift tax rate and unified credit tables for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, as well as look into purchasing 709 Accountant’s federal gift tax software.

    Hyperology --- http://snipurl.com/Hyperology
    This site features a lot of things including coverage of tax and 401K deductions.

    New Tax Helper Sites from Smart Stops on the Web, Journal of Accountancy, August 2004, Page 25 --- 

    Strategies for Savings
    www.gofso.com/premium/ts/ts_menu.html
    CPAs and personal financial planners can enter this Web site through the back door to read guidance for clients on maximizing tax deductions such as travel and entertainment expenses and charitable contributions. Users also can find financial calculators, information on topics including annuities and mutual fund taxation, and due dates for filing tax returns and reporting tax information.

    Fact or Fiction?
    www.incometaxstrategies.com
    Tax advisers can look over the tax secrets and myths section of this e-stop on debunking falsehoods, such as the idea that not taking every possible deduction reduces a client’s chances for an audit, as well as learn about little-known strategies such as how to get an annual early tax refund. The site features links to more than 80 itemized deductions and a free monthly newsletter.

    Resources and Tips
    www.funwithtaxes.com
    Tax specialist and author Gail Perry’s online compilation of her column “Fun With Taxes” includes links to articles from the New York Times such as “Beating the Tuition Blues and Earning Some Tax Breaks” and her own writings—such as the article “IRS Throws Foul Ball Into All American Pastime.” In addition, visitors can find daily tax tips from the IRS and the Tax Preparation Tool Box, which includes an IRA calculator to determine eligibility or compare Roth IRAs with traditional ones to see their worth at retirement.

    For Filing and More
    www.taxbrain.com
    In addition to free registration, links to state and federal tax forms and electronic filing options, tax preparers who visit this Web stop can click on the Tax Center link at the bottom of the home page to find a tax glossary, the e-document “Seven Tax Return Mistakes to Avoid,” a W-4 calculator and a tax estimator.

    Government Approved
    www.homebusinesstaxsavings.com
    Tax consultants and preparers with home-business-based clients can find tips here on tax breaks in compliance with congressional law, the tax code and tax court rulings such as “converting ‘commuting miles’ into tax-deductible business miles,” the benefits of obtaining an employer identification number and deductions for donations. Users also can sign up for a free subscription to the newsletter Tax Tips You Can Bank On.

     

    New (Year 2004) E-Services Tools for Tax Professionals --- http://www.smartpros.com/x44233.xml 

    Bob Jensen has two threads on tax controversies:

     
     
    "Evaluating Tax Software," by Stanley Zarowin, Journal of Accountancy, October 2002, pp. 38-47 --- http://www.aicpa.org/pubs/jofa/oct2002/zarowin.htm
     
    "New Tax Break for Teachers," Journal of Accountancy, August 2002, Page 65 --- http://www.aicpa.org/pubs/jofa/aug2002/tax1.htm 
     
    Tax fraud and tax scams --- http://faculty.trinity.edu/rjensen/fraud.htm#TaxFraud 
     
    Tax Agencies Around the World --- http://www.oecd.org/daf/fa/links/links.htm 
     
    IRS Forms Search Page --- http://www.irs.ustreas.gov/plain/forms_pubs/findfiles.html 
    Download IRS Tax Forms --- http://www.irs.ustreas.gov/plain/forms_pubs/forms.html 

    !040 -ES 1040 ES Estimated Tax Forms --- http://ftp.fedworld.gov/pub/irs-pdf/f1040e01.pdf 

    IRS Offers New Withholding Calculator Looking for a quick way to figure out what your income tax will be under the new tax legislation?  http://www.accountingweb.com/item/52146 

    2001 State Government Tax Collections http://www.census.gov/govs/www/statetax01.html 

    Which Is Better: TurboTax or TaxCut? --- http://www.thestreet.com/_tscs/funds/taxes/1359496.html#restofstory 
    This article is two years old, but it is still somewhat informative.
    A more recent Year 2003 comparison is at http://www.thestreet.com/_tscs/funds/beverlygoodman/10067709.html 

    Also see http://www.pcmag.com/article2/0,4149,810950,00.asp 

    News and Resources:  Tax Professional's Corner --- http://www.irs.gov/bus_info/tax_pro/index.html 

    Tax Analysts:  Tax Information Worldwide online
    http://www.tax.org/

    Statistics of Income Overview from the IRS --- http://www.irs.gov/taxstats/display/0,,i1%3D40%26genericId%3D16924,00.html 

    Blocksoft.com offers many tips on taxes and tax resources
    Use Block's new TaxCut 1040EZ Online for FREE.
    http://www.blocksoft.com/

    Intuit --- it is a market share leader with Quickbooks and TurboTax
    http://www.intuit.com/
    Also note the Turbo tax contest described at http://www.netguide.com/Site/Detail?id=117856

    Microsoft Money Financial Suite --- http://www.microsoft.com/products/prodref/699_ov.htm
    http://www.microsoft.com/products/prodref/699_ov.htm

    Microsoft Money Plus --- http://www.microsoft.com/Money/default.mspx

    Money.com is a personal finance web site that offers many tax tips on how to save tax dollars and avoid tax audits
    http://www.pathfinder.com/money/plus/index.oft

    Visit NYTimes.com's Website called "Your Taxes," a comprehensive guide to FAQs about tax filing.  This site was prepared in  collaboration with the experts at TurboTax, "Your Taxes" contains tax forms, calculators and step-by-step information on filing --- http://www.nytimes.com/taxes?0221 

    As a former tax columnist for the New York Times, I recently launched a comprehensive tax site for individuals and would like to recommend its listing in your tax links directory. The site is called TaxPlanet.com - All Things Tax for Individuals. Its url is www.taxplanet.com 
    Gary Klott@taxplanet.com [GaryKlott@taxplanet.com

    1099 - "the magazine for independent professionals." (Tax, Personal Finance, Careers, Small Business) 
     http://www.1099.com/ 

    "Important Tax-Act Dates for Taxpayers to Know," by the Financial Planning Association --- 
    http://flywheel.memeticsystems.com/backend/ct_click.cgi?ct_id=973&type=1 

    The above site has much more than dates --- it is a great summary of key things to consider in financial planning and investing.  Take a look and see how useful this site really may be in your life.

    Guide to 2004 Web-Based Tax Software from PC World --- http://www.pcworld.com/news/article/0,aid,114426,00.asp 
    Go online for a choice of tax-preparation programs varying in capability and cost.

     

    Duke and Pace researchers shed light on corporate tax shelters
    A study by researchers from Duke University and Pace University found that use of corporate tax shelters not only allows organizations to avoid billions of dollars in annual tax payments, it may also help companies artificially enhance their attractiveness to investors by reducing levels of debt. The study also explores some commonly used tax shelters and the characteristics of firms that have employed these shelters. Finance professors John R. Graham of Duke's Fuqua School of Business and Alan L. Tucker of Pace's Lubin School of Business collected the largest known sample of tax shelters utilized by corporations during the past 25 years.
    "Duke and Pace researchers shed light on corporate tax shelters," Lubin, December 22, 2004 --- http://snipurl.com/DukePace

     


    Dear Professor Jensen

    June 28, 2004 message from Jenn Glass [jglass@digitalbrandexpressions.com]

    Your site is a great resource.  I found it while doing research our client, Jackson Hewitt, a division of Cendant, and the fastest-growing tax service in the country. Jackson Hewitt, founded in the mid-1980s has grown to over 4,000 locations throughout the nation.  Most Jackson Hewitt offices are independently owned and operated, and offer full-service individual tax preparation, electronic filing and Refund Anticipation Loans.

    Jackson Hewitt’s website is packed with useful tools, tips, and financial resources, including a Tax Resource Center, Tax Calculators, Tax Tips, Tax Glossary, Tax Law Changes, and Tax News. After review of your site, I believe this information may be of interest to your site’s visitors. Would you create links to Jackson Hewitt from http://faculty.trinity.edu/rjensen/ with the following information:

     

    Title: Jackson Hewitt

    URL: http://www.jacksonhewitt.com

    Description: Experts in tax return preparation and processing, promising fast, accurate, trustworthy professional service for each customer. Visit Jackson Hewitt.com for useful tools, tips, and financial resources, including a Tax Resource Center, Tax Calculators, Tax Tips, Tax Glossary, State and Federal Tax Law Changes, and Current Tax News.  

     

    Additionally, I have included an article entitled, “Top 25 Overlooked Tax Deductions” below. We are offering this article, free of charge, to sites who might find it useful for their site visitors. Please feel free to post to your site upon your review. We ask that the embedded links to Jackson Hewitt remain linked in the document upon posting.

     

    - Article -

    Top 25 Overlooked Tax Deductions

     You wouldn’t believe the number of deductions that are overlooked each year, by taxpayers just like you. That’s right; these money-saving deductions are missed by countless income earners every tax season. Read on and arm yourself to take full advantage of these deductions and get back what you deserve:

     

    1. Student loan interest 
    2. Self-employment tax paid  (50% is deductible)
    3. Health insurance premiums for some self-employed persons 
    4. Penalty on early withdrawal of savings 
    5. Alimony paid (not including child support) 
    6. Medical transportation costs
    7. Nursing home medical care expenses 
    8. Certain medical aids
    9. Hearing aids, eye glasses, and contact lenses 
    10. Some hospital fees  
    11. Medical equipment for disabled or handicapped individuals 
    12. Certain life-care fees paid to retirement home
    13. Alcohol, drug abuse treatment, and certain stop-smoking treatment costs
    14. Special school costs for mentally or physically handicapped individuals 
    15. Nursing service costs
    16. Prior year State income taxes
    17. Estimated state taxes for the last quarter of the year
    18. Personal property taxes on cars, boats, etc.
    19. Taxes paid to a foreign government 
    20. Mandatory contributions to state disability funds 
    21. Points paid on mortgage or refinancing 
    22. Property donated to a recognized charity 
    23. Cash contributions to a recognized charity 
    24. Mileage costs for charitable activities
    25. Qualified casualty and theft losses

     

    Note: Not every item will be applicable to your situation.

    For further advice on taking advantage of these as well as other deductions, contact a local tax preparation service like Jackson Hewitt. Also, follow these links to other interesting topics that can help you save on taxes and keep more money in your pocket:  Tax Tips and Tax Help.

    - End Article -

    Thank you,

    Jenn   

    Jennifer Glass
    e-Marketing Assistant
    Digital Brand Expressions
    4499 Route 27
    Kingston, NJ 08528
    (609) 688-1606

    www.digitalbrandexpressions.com


    "Users Rank Tax Software," by Stanley Zarowin, Journal of Accountancy, October 2003, pp. 30-39 --- http://www.aicpa.org/pubs/jofa/oct2003/zarowin.htm 

    TaxACT 5925 Dry Creek Lane, NE,
    Cedar Rapids, IA 52402
    800-573-4287 www.taxact.com
    ATX Forms Total Tax Office,
    Max, Saber and
    ZillionForms
    63 Sweden St.,
    PO Box 1040,
    Caribou, ME 04736
    877-728-9776 www.atxpros.com
    CCH ProSystem fx Tax 21250 Hawthorne Blvd.,
    Torrance, CA 90503
    800-739-9998 www.prosystemfx.com
    Creative Solutions UltraTax 7322 Newman Blvd.,
    Dexter, MI 48130
    800-968-8900 www.creativesolutions.com
    Drake Software Drake Tax
    Solution
    235 E. Palmer St.,
    Franklin, NC 28734
    800-890-9500 www.drakesoftware.com
    Dunphy Systems 1040 Professional
    Tax Prep
    6740 Huntley Rd.,
    Suite 103,
    Columbus, OH 43229
    614-431-0846 www.dunphy.com
    Intuit/Lacerte Lacerte 5601 Headquarters Dr.
    Plano, TX 75024
    800-765-4065 www.lacertesoftware.com
    Intuit/ProSeries ProSeries 110 Juliad Ct.,
    Fredericksburg, VA 22406
    800-934-1040 www.proseries.com
    Laser Systems TaxWorks by
    Laser Systems
    350 N. 400 West,
    Kaysville, UT 84037
    800-230-2322 www.taxworks.com
    RCS TaxSlayer Pro TaxSlayer Pro 610 Ronald Reagan Dr.,
    Evans, GA 30809
    706-868-0985 www.taxslayerpro.com
    Tax$imple Tax$imple 8 Emery Ave.,
    Randolph, NJ 07869
    866-729-7798 www.taxsimple.com
    Universal
    Tax Systems
    TaxWise 6 Mathis Dr. NW,
    Rome, GA 30165
    800-755-9473 www.taxwise.com

    Tax Software Sites from Smart Stops on the Web, Journal of Accountancy, October 2003, Page 27 --- http://www.aicpa.org/pubs/jofa/oct2003/news_web.htm 

    Windom’s World
    www.windom.org

    Wyoming-based accountant and tax preparer Jarvis Windom offers professional preparers free tax resources at his nuts-and-bolts e-stop. Users can scroll down his home page for links to many tax software Web sites, which provide free demos for preparing electronically filed returns and tax forms, rates and tables.

    News and Reviews
    www.softwarenews.net

    Information technology consultants and CPAs can tap into the e-version of The CPA Software News magazine and access its features and columns, buyer’s guides, detailed software reviews and due diligence tables for estate planning.

    Free Conversion and Evaluation Copy
    www.proseries.com

    Intuit’s Web site for ProSeries tax preparation software offers CPAs and professional preparers a free evaluation CD including forms to e-file, as well as a free CPE self-study course. The company says it will convert new users’ client data for free.

    For Tax Preparers
    www.completetax.com

    After utilizing this site’s online tax prep software for a one-time fee of $24.95, CPAs and tax professionals can e-file client returns for free and access resources such as a detailed explanation of the new provisions of the 2003 Tax Relief Act, a tax glossary and links to forms, tables and worksheets. The site also has a collection of personal finance calculators CPAs can use when advising clients.

    Take a TaxCut
    www.taxcut.com

    This e-commerce site for H&R Block’s TaxCut software offers free resources such as sections on tax law changes and tax planning. Users also can access a tax estimator and a withholding calculator and discover the “Top Ten Overlooked Deductions.”

    Visualize No Matter the Size
    www.cpasoftware.com

    Whether CPAs and tax pros are filing individual or corporate client tax returns, this Web site offers its tax prep software in a unique way—in the same format as the paper version. Visual Business Tax and Visual 1040, 1041 and 991 tax software mirrors the hard-copy forms, making e-filing easier by giving professionals a familiar platform on which to work.

    From the Journal of Accountancy in September 2002 --- http://www.aicpa.org/pubs/jofa/sep2002/news_web.htm 

    Links to Tax Programs
    www.futureofsoftware.net
    CPAs and tax preparers can find links here to sites that offer software—either to demo for free or purchase—as well as hardware and peripherals. Users can explore categories such as computer rentals, data recovery and storage, and multimedia. A search on the site for tax software returned 34 different links.

    E-Filing Info and Tax Tips
    tax.links.ws
    Professional tax preparers can go from this home page to state sites, which offer income tax forms and/or online filing. The tax tips section offers news, and current and archived suggestions for how to reduce the amount of tax individuals pay, as well as links to research current tax issues. And, of course, users also can find links to research tax preparation software such as Quicken TurboTax and TaxCut from H&R Block.

    Something for Nothing
    www.electronictaxservices.com

    Tax professionals can click on links to sites with free tax resources including information on where to file for a tax extension at www.taxextensions.com and the “101 Hot Tax Tips” audiotape available from the National Audit Defense Network at www.awayirs.com/ap/affiliate_fuel.htm. Users also can find links to sites with discounted tax preparation and filing software from Quicken TurboTax.

    Invest Time to Learn Here
    www.moneyeducation.net
    Although this site is designed to “bring the investor the most thorough information possible on all investing topics,” it doesn’t leave professional tax preparers out. They can find links to www.irs.gov and state Web sites for tax forms, as well as tax software ratings.

    Comparison Shop
    www.consumersearch.com
    CPAs and PFPs can find links to detailed tax preparation software reviews in the Personal Finance section of this site. Users can read comparison charts, download for free the basic version of the software TaxAct 2001, find pricing information (including discounts and rebates on tax preparation programs) and search for local software dealers.

    Discounts and Forms
    1-free-internet.com/1-tax-forms
    CPAs and tax specialists can look up tips on how to reduce their clients’ taxes, as well as obtain tax planning and preparation advice here. This site also links to www.irs.gov and irs.com (no relation to the federal agency) for tax forms, instructions, rates and tables. Users can link to turbotax.com to get coupons for up to $20 off its tax software products.


    A helpful Social Security helper link in a message from Linda Pfingst, CPA [lcpfingst@SPRINTMAIL.COM

    Thought I would share an interesting web page for calculating break-even ages for social security benefits. I am often asked "what would be more beneficial, to retire at 62 or 63, or wait until my full retirement age of 66?" The SSA.gov site does not consider all of the combinations, and after some searching I found a "neat" site by David Zinda: http://www.social-security-table.com/index.htm 

    No fancy variables (present, future,inflation adjustments) just straight calculations. Save a ton of time working it out "by hand" or even with T-Value.

    Linda C. Pfingst, CPA

    After viewing the first page, click on "Next"


    From "Smart Stops on the Web," Journal of Accountancy, January 2004, Page 31 --- http://www.aicpa.org/pubs/jofa/feb2004/news_web.htm 

    Tax Time Once Again
    taxes.yahoo.com
    Accountants and preparers gearing up for tax season will find state and federal tax forms and more than 200 articles on, for example, capital gains, mutual funds and tax rules for gifts, as well as tax calculators for investing, retirement planning and home mortgages and sales at Yahoo’s Tax Center. Visitors can use a glossary of tax terms and a preparer’s checklist from H&R Block.

    Grants for Growth
    www.government-grants-101.com
    CPAs can point clients to small business advice and links to financial services, government grants and loans at this Web stop. Visitors can find business plan templates, checklists and frequently asked questions in categories including home and Internet businesses and sales and marketing.

    Gratis Legal Advice
    law.freeadvice.com
    CPA consultants for individuals and small business owners can tap into free online legal expertise here. Categories include bankruptcy, business, employment, estate planning, financial, intellectual property and tax law. Each one lists a series of general questions and answers on that topic.

     


    Small Business Resource Guide

    "The Small Business Resource Guide, CD-ROM 2002 provides critical tax information to small businesses including forms, instructions, and publications. The CD also provides valuable business information from a variety of government agencies, non-profit organizations, and educational institutions. The CD contains essential startup information needed by new small businesses in order to be successful. The design of the CD makes finding information easy and quick and incorporates file formats and browsers which can be run on virtually any desktop or laptop computer"

    You can order up to five free copies of this product at:

    http://www.irs.gov/businesses/small/display/0,,i1%3D2%26i2%3D23%26genericId%3D7128,00.html

    Other government prepared CD-Rom products are shown on:

    http://www.irs.gov/businesses/small/display/0,,i1=2&i2=23&genericId=20005,00.html

     

    Victorious Taxpayer Issues IRS Survival Guide --- http://www.smartpros.com/x33474.xml 

    The booklet is useful if the IRS notifies you that you are being audited.  It is available online ($4.95) and in printed form ($5.95) on http://www.taxrevue.com/
    Rich's IRS Survival Coaching Services are also available by phone.

    Money Guide to Taxes
    http://www.netguide.com/Money/taxes

    Dennis Schmidt's Accounting and Tax Guide
     

    There is a great review of tax software in the following cover story:

    "Ranking the Products," by Stanley Zarowin, Journal of Accountancy, October 2001, pp. 28-32 --- http://www.aicpa.org/pubs/jofa/oct2001/zarowin.htm 

    Vendor Tax program Address Telephone E-mail address
    ATX
    Forms
    Saber, Max
    and Taxsolver
    PO Box 1040,
    Caribou, ME 04736
    800-944-8883 sales@atxforms.com
    CCH ProSystem fx 21250 Hawthorne Blvd.,
    Torrance, CA 90503
    800-457-7639 cust_serv@cch.com
    Creative
    Solutions
    UltraTax 7322 Newman Blvd.,
    Dexter, MI 48130
    800-968-8900 sales@CreativeSolutions.com
    Drake
    Software
    Drake Tax
    Solution
    235 E. Palmer St.,
    Franklin, NC 28734
    800-890-9500 drakeinfo@drake-software.com
    Dunphy
    Systems
    1040 Professional
    Tax Preparation
    6740 Huntley Rd., Suite 103,
    Columbus, OH 43229
    614-431-0846 dunphy@dunphy.com
    Intuit ProSeries 2535 Garcia Ave.,
    Mountain View, CA 94043
    800-934-1040 www.proseries.com
    Lacerte/Intuit Lacerte 1040
    Tax Software
    13155 Noel Rd., 22nd Floor,
    Dallas, TX 75244
    800-765-7777 www.lscsoft.com
    Micro Vision
    Software
    Tax Relief 1040 140 Fell Court,
    Hauppauge, NY 11788
    800-829-7354 www.microvisioninc.com
    Orrtax
    Software
    IntelliTax 13208 NE 20th St.,
    Bellevue, WA 98005
    800-377-3337 webmaster@orrtax.com
    TaxACT 2nd Story Software 5925 Dry Creek Lane, NE,
    Cedar Rapids, IA 52402
    800-573-4287 www.taxact.com
    Taxworks By
    Laser Systems
    TaxWorks By
    Laser Systems
    350 North 400 West,
    Kaysville, UT 84037
    800-230-2322 www.taxworks.com
    Universal
    Tax Systems
    TaxWise 6 Mathis Dr. NW, PO Box 2729,
    Rome, GA 30164
    800-755-9473 sales@universalsystems.com
    Xpress Software Xpress Individual
    Package
    P.O. Box 280760,
    Columbia, SC 29228
    800-285-1065 www.xpresssoftware.com

     


    Please add a link to my web site in your Accounting, Finance and Business section under Miscellaneous Taxation Web Sites --- www.funwithtaxes.com 

    Thank you!
    Gail Perry, CPA
    Tax columnist for the Indianapolis Star


    Tax Time 2002 http://lii.org/taxes 

    The following resources include Web sites related to income tax preparation, taxation, sales tax, tax-related finance sites, the IRS and state taxation agencies, tax forms and publications, and finally (how we need it during tax season) a bit of humor.

     

    All Tax Time 2002 Resources

    State (Primarily California)

    Federal

    Just For Fun


    Tax Links for the U.K. -- http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=13447&d=182 


    There are more extensive and expensive web sites on taxation and tax research.   Some of the heavy duty alternatives discussed by Barbara Karlin at the ATA in San Francisco include the following:.

    http://www.taxsites.com/

    http://www.taxresources.com/

    http://www.abanet.org/tax/sites.html

    http://www.willyancey.com/


    Sharing Tax Accounting and Technology Professional Gene Prescott --- http://www.taxtechcpa.com/index.html 

    Will Yancey lists a bunch of tax professor web sites at http://www.willyancey.com/ 

    Since I do not teach taxation, I hesitate to pick out the leading educator web sites in this area.  I will, however, repeat the links to three of my friends who teach taxation.

    Amy Dunbar at http://www.sba.uconn.edu/users/ADunbar/dunbaru.htm

    Tom Omer at http://omer.actg.uic.edu/

    Mark Wolfson at http://gobi.stanford.edu/facultybios/bio.asp?ID=168


    Look up the financial reports, budgeting information, and names of officers in your favorite college, charity, church, or other non-profit organization.  These organizations must file a Form 990 with the IRS and, thereby, are on the web.  For short and easy-to-find summaries see http://www.guidestar.org/index.html 

    Posting Form 990 images is an ongoing process. If a Form 990 image is available for your selected charity, you will see a "Form 990" option on the left side of its GuideStar Pages™. More images are being added to the database. Meanwhile, you will find easy-to-read profiles and financial reports derived from IRS Forms 990 by searching for an organization and reading its GuideStar Pages.

    Searchable Database
    2005/2006 Compensation of Presidents of Private Institutions
    --- http://www.insidehighered.com/news/2007/12/31/qt

    Searchable Database
    Compensation of Presidents of Higher Education Institutions ---
    http://chronicle.com/stats/990/

    How to check on a charity or church or college before you donate:
    You can begin with IRS Form 990 disclosures, but these sometimes may be more misleading than helpful. 
    You can access them from Guidestar at http://www.guidestar.org/index.jsp  
    One problem is that reported "compensation" for executives may not include free houses, free cars, and free services like lawn care and catering.
    Another problem is that rich alumni may provide college executives with free condo use, airline tickets, and club memberships.
    Guidestar also provides salary disclosures for top executives in the non-profit organization. 
    However, funds can (such as charity crooks) can be diverted by cheats in other ways.
    Research Tools 
    Analyst Reports 
    Charity Check 
    Grant Explorer 
    Data Services 
    Nonprofit Compensation Reports 
    Salary Search 

     

    Linda Phingst sent me a link to another source for Form 990 copies.  Go to http://www.nccs.urban.org.


    What does hedonism have to do with taxation?

    "The Tax Man vs. Hedonists Liquid Engines Inc. can't do much about death, but corporate taxes are another matter." 
    John P. Mello Jr., CFO Magazine August 26, 2003 --- http://www.cfo.com/printarticle/0,5317,10492|,00.html?f=options 

    At a time when technology start-ups are rare and technological innovation even rarer, this Sunnyvale, Calif.-based company plans to launch an entire suite of products designed to help companies manage financial performance. The first product, out later this month, is tax-planning software that can, Liquid Engines claims, fully analyze in 5 to 10 minutes the kinds of mind-numbing tax situations that typically keep teams of consultants busy for weeks — situations involving perhaps scores of business units operating across dozens of states, each with hundreds of unique tax regulations.

    Relying on a powerful econometric modeling technique called hedonics, the software can cope with any number of financial constraints and variables and zero in on the optimal solution to virtually any corporate tax-planning problem, claims CEO Joe Fantuzzi.

    Hedonics, which originated in the 1950s, is a technique that is now closely associated with Stanford Graduate School of Business. Derived from hedon, the Greek word for pleasure, hedonics has proven itself to be a powerful tool for analyzing prices and consumer choice in such markets as housing and personal computers, where many qualitative factors contribute, each with a different weight, to the perceived value of products. The price of a house, for instance, may reflect its distance from a train station, the quality of nearby schools, its age, and neighborhood demographics.

    So Liquid Engines's software assigns weights to the many financial conditions and outside business factors, some of them not easily quantified, that affect taxes and cash flows. The technical challenge has been to encode the matrix-intensive hedonics algorithm in software that rapidly finds optimum solutions. The company has been helped by two Nobel laureates from Stanford: Liquid Engines board member A. Michael Spence and technical adviser Myron Scholes, known best for his work on the Black-Scholes options-pricing model.


    Miscellaneous Taxation Web Sites

    A helpful site for U.S. taxpayers (download forms, instructions, FAQs, tax tables, IRS publication guides, etc.) ---- WorldWideWeb Tax [.pdf] http://www.wwwebtax.com/ 

    IRS - The Digital Daily: Income Tax Forms, Instructions, Publications, Regulations, and other stuff
    United States Tax Court http://www.ustaxcourt.gov/
    Tax Helpers from the University of Illinois at Chicago
    http://www.uic.edu/depts/lib/collections/govdocs/tax/index.html

    Tips from Microsoft on how to avoid tax audits
    http://moneycentral.msn.com/articles/tax/prepare/1384.asp


    FIN 48
    October 21, 2009 message from Dennis Beresford [dberesfo@TERRY.UGA.EDU]

    IRS Commissioner Doug Shulman spoke at a conference of the National Association of Corporate Directors that I attended earlier this week. He covered the income tax risk issues that directors should be concerned about. I thought this was a very good summary of both what auditors and tax accountants should be interested in and I refer interested parties to his posted remarks at:
    http://media-newswire.com/release_1103133.html 

    Denny Beresford


    The Tax History Project http://www.taxhistory.org/
    Digital Daily Welcome - IRS
    Tax and Accounting Sites Directory
    Tax Resources
    CHECKPOINT
    JohnSon's Tax Page
    Tax Analysts' Discussion Groups
    Tax and Accounting Sites
    John Gill's tax education page
    Tax Resources (U. of Iowa)
    Tax World Homepage
    Tax World Homepage (Omer)
    Taxing Times 1996
    TaxSites - Internet income tax related information available on Internet
    The Tax History (Includes Presidential Tax Returns)
    U.S. House of Representatives - Internet Law Library - Code of Federal Regulations (searchable)
    U.S. Tax Code On-Line
    Master of Business Taxation Degree Program University of Minnesota
    American College of Trust & Estate Counsel (ACTEC)
    Americans for Tax Reform
    U.S. House of Representatives Internet Law Library
    Cato Project On Social Security Privatization
    Tax Analysts Home Page
    Tax Analysts Discussion Groups
    The Tax History Project at Tax Analysts
    Today's Tax News
    Tax Calendar
    Tax Analysts Tax Clinic
    Tax Quotations -- Presented by Tax Analysts
    The World Wide Web Virtual Library: Law: Taxation
    University Law Review Project
    FarisLaw
    Law & Estate Planning Sites (Mark Welch's Links)
    Emory Law School Tax Server
    Robert Clofine's Estate Planning Page
    Tax and Accounting Sites Directory
    Tax & Estate Planning Resources on the WWW
    Tax Court Rules Table of Contents
    Tax-Related Primary Sources on the Internet
    TaxSites - Internet income tax related information available on Internet
    TaxSites [Framed]
    Estate Planning Links Web Site
    The Tax Prophet®
    Will Yancey's Home Page
    PM&S Tax Page
    Deloitte & Touche's Tax News & Views
    TaxWeb: Federal & State Tax Forms
    1997 State and Local Government Finance Estimates, by State
    IRS - The Digital Daily: Income Tax Forms, Instructions, Publications, Regulations, and other stuff
    JohnSon's Tax Page
    Tax Analysts' Discussion Groups
    Tax and Accounting Sites
    Tax World Homepage
    Taxing Times 1996
    TaxSites - Internet income tax related information available on Internet
    The Tax History (Includes Presidential Tax Returns)
    U.S. House of Representatives - Internet Law Library - Code of Federal Regulations (searchable)
    U.S. Tax Code On-Line

    ABA LawInfo.org --- http://www.abalawinfo.org/ 
         Your gateway to information on legal topics that affect your daily life.
     
    From the Scout Report

    Global Financial Data [.pdf] http://www.globalfindata.com/ 

    This impressive collection of historical global financial data stretches from the years 1264 to 2000. While most of the actual data must be purchased, this Website does offer several free series, including Stock Markets since 1693, Interest Rates since 1700, and Inflation Rates since 1264. The site also contains a decent-sized collection of research papers written about the Eurodollar and a links page with financial Websites from around the world.

     

    Tax Cape is an interesting website from the standpoint of international financing and taxation.  Among other things it compares 50 leading financial sites around the world   --- http://www.taxcape.com/ 

    I received this email requesting that I add this message to New Bookmarks:

    Your TaxCape Team
    TaxCape Anstalt 
    http://www.taxcape.com  
    Landstrasse 30 FL-9494 Schaan Furstentum Liechtenstein 
    Tel.: +423 238 11 68; Fax: +423 238 11 69 mailto:info@taxcape.com

     

    Miscellaneous Accounting Research Helpers

    http://faculty.trinity.edu/rjensen/default4.htm
     
    Tools for Finding Indexed Accounting Research http://www.rutgers.edu/Accounting/raw/aaa/facdev/research/indexed.htm

    Investing in E-Commerce and other technologies poses huge problems for business decision makers, because the popular investment criteria such as Return on Investment (ROI) are so difficult to compute and there are so many uncertainties about both investments and returns.  These topics make interesting case studies in both managerial accounting and accounting information systems courses.  Two articles of interest are as follows:

    "E-Commerce: New Sense of Urgency Companies Rush For Online Market Share Flurry of multimillion-dollar deals signals new effort to be competitive in E-commerce," by Clinton Wilder in Information Week, May 24, 1999, 48-56.

    "Rethinking ROI Some projects have become so important that companies are looking for new ways to measure their return on investment--or are dispensing wtih ROI studies completely," by Tom Stein in Information Week, May 24, 1999, 59-68.

    Both articles deal with problems of ROI as a criterion for investment decisions and performance evaluation.  The online versions of these articles can be found at http://www.informationweek.com/maindocs/index_735.htm

     
    Audit Committee Oversight Responsibilities Checklist
    http://www.fei.org/download/iia_2_13_04.pdf 

    Business, Finance, and Investment Sites

     
  • The mortgage helpers were moved to http://faculty.trinity.edu/rjensen/FraudReporting.htm#MortgageAdvice
  • Mortgage Professor's Tips on Whether or Not to Pay Off Your Mortgage Early --- http://www.mtgprofessor.com/early_payoff.htm

    How Mortgages Work --- http://money.howstuffworks.com/mortgage.htm 

    What are current mortgage rates? --- http://biz.yahoo.com/b/r/m.html
    Also see http://www.mortgageloan.com/

    Mortgage Professor's Tips on Whether or Not to Pay Off Your Mortgage Early --- http://www.mtgprofessor.com/early_payoff.htm

    How Mortgages Work --- http://money.howstuffworks.com/mortgage.htm 

    What are current mortgage rates? --- http://biz.yahoo.com/b/r/m.html
    Also see MortgageLoan.com --- http://www.mortgageloan.com/

    Bob Jensen's additional links for mortgage advice --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#MortgageAdvice

    Bob Jensen's threads on Internet frauds are at http://faculty.trinity.edu/rjensen/FraudReporting.htm


    CNBC Investment Helpers --- http://www.cnbc.com/id/15840232?video=922873186 

    Good Advice Site:  Free Money Finance. Free Money Finance --- http://www.freemoneyfinance.com/

    Top 10 Places to Look for Stock Prices --- http://search.nola.info/?t=share%20prices 

    One opinion on the top 10 investment resource sites.
    InvestMove.com --- www.investmove.com 

    Top Ten Financial Portals

         1. Yahoo Finance
         2. MSN MoneyCentral
         3. Quicken.com
         4Wall Street City
         5Inter@ctive Investor
         6Motley Fool
         7Wall Street Research Net
         8Morningstar
         9Stockmaster
       10Silicon Investor

    Yahoo's picks of the top finance web sites --- http://www.zdnet.com/zdsubs/yahoo/content/101most/101finance.html 

    Top 50 Financial Websites --- Money.com http://www.money.com/money/depts/websmart/bestweb/index.html  

    Geoportals.com (Guides to Investment Links) --- http://www.geoinvest.com/ 

    At Stanford University many years ago, I had a classmate named Randy Johnson.  Randy has had great success with two best-selling mortgage books.  He also maintains a very helpful helper site on mortgages --- http://www.loan-wolf.com/ 

    Mutual Fund Investing Helpers from Consumer Reports "Survival of the Fittest"  http://www.consumerreports.org/Special/Samples/Reports/0103mut0.html 

    Dear Bob,

    Hi, I know I recently contacted you regarding receiving press releases and that somebody else has also contacted you regarding a reciprocal link exchange. The reason that I am contacting you now is because I would also like to tell you about a free service that we are offering to technology-related sites.

    ITtoolbox Data Feed delivers relevant news, industry documents and/or custom stock indices directly to your website. Content for the data feed is constantly updated, providing fresh content to your site daily. Although the Data Feed offers information for more than 20 areas in information technology, you will be able to select and customize the information that you present, extending your site’s diversity and adding to your user’s experience. If you would like to implement or even see what this free service would look like on your site, please go to http://datafeed.ITtoolbox.com, and follow the directions provided, at the URL prompt, type ".test" If you have any questions, about the service, please do not hesitate to contact me.

    I look forward to any feedback on our network and the possibility of working with you in a mutually beneficial relationship.

    Try out our Data Feed, and let me know what you think! Hope to hear from you soon!

    Michelle Stanton

    www.ITtoolbox.com 

    (610) 280-9517

    NASDAQ-100 Dynamic Heatmap® Explore our ETF Heatmap and our NASDAQ-100 Pre-Market Heatmap View the price of companies in the NASDAQ-100 Index at a glance. Each colored rectangle represents an individual company that is part of the NASDAQ-100 --- http://screening.nasdaq.com/heatmaps/heatmap_100.asp 


    Downside:  The Investor's Reality Check --- http://www.downside.com/ 
    Includes a cash flow death watch.

    Why hasn't all the air come out of the market bubble yet? In the June 28th issue of The Economist, (p. 25), we read this: "The Fed, it seems, will stop at nothing to keep the post-bubble economy afloat. ... After playing an key role in nurturing the equity bubble of the late 1990s by holding down interest rates, it has since propped up the economy by furthering first a property bubble and then a bond bubble." This article is worth a close read.


    From PBS --- The History of Old Money versus Newer Electronic Money --- http://www.pbs.org/opb/electricmoney/ 

     

    From the Scout Report on May 17, 2001

    FundAlarm http://www.fundalarm.com/ 

    While most mutual fund information Websites will tell you when you should buy mutual funds, FundAlarm, created and maintained by Roy Weitz, CPA, offers news and information that will help users make informed decisions about selling their mutual finds. Along with a database of nearly 4,000 data tables of stocks and balanced mutual finds, FundAlarm also provides three lists of mutual funds: those that should be sold right away, those to keep, and mutual funds that are merely strong candidates for

     

    The University of Kansas International Business Resource Connection http://www.ibrc.bschool.ukans.edu/ 

    The IBRC, a business outreach program of the Center for International Business Education and Research (CIBER) within the School of Business at the University of Kansas, was created to encourage trade opportunities and expand international business education. Through strategic alliances with major partners (including the U.S. Department of Education and the Kauffman Foundation), private sector affiliates, faculty and students at the University of Kansas, the IBRC assists small and medium-sized Kansas companies explore available trade opportunities and broaden international business skills. Particular emphasis is placed on the emerging role of electronic communication resources (the Internet) in developing international business opportunities for firms located in the heartland of the United States.

    Also, don't forget Paul Pacter's great international accounting site at http://www.iasplus.com/ 

    Associations for Business and Finance

    Bob Jensen's threads on accounting practice, consultation, and financial planning are at http://faculty.trinity.edu/rjensen/fees.htm 
     
    Financial Executives International (FEI) --- http://www.fei.org/ 
    Newsletter FEI Express --- http://www.fei.org/newsletters/default.cfm 
    The FEI Teleconference Archive of the Financial Executives Institute
    You can download the RealAudio files or the transcripts. 
    http://www.fei.org/tc/
     
    South Texas (San Antonio) Chapter --- San Antonio Chapter Information http://www.fei.org/chapter/SanAntonio/  
    IOSCO Home Page
    Welcome to NACUBO!
    US Securities and Exchange Commission
    UAW Demo (Financial Analysis Updates)
    Alliance of Business Women International
    Associated Colleges of the South

    American Association of Individual Investors --- http://www.aaii.org/ 

    Business Firm and Other Directories

    ABA LawInfo.org --- http://www.abalawinfo.org/ 
         Your gateway to information on legal topics that affect your daily life.

    Free estate planning helpers from a Georgia law firm --- http://www.scrogginlaw.com/ 
     

    How to find an organization

    Businesses

    http://www.business.com/ 

    http://dir.yahoo.com/Business_and_Economy/Directories/ 

    Not-for-Profit Organizations

    http://www.icnl.org/ 

    If you know the name of a non-profit organization, you can find a raft of data in their IRS 990 tax returns at http://www.guidestar.org/index.jsp 

    helpers
    Financial Markets and Investing

    Bob Jensen's helpers on finding investment help --- http://faculty.trinity.edu/rjensen/fees.htm 

    Bob Jensen's threads on consumer fraud prevention and reporting are at http://faculty.trinity.edu/rjensen/FraudReporting.htm

    The New Google Stock Screener (sort of nice as online screeners go) --- Click Here

    A Blog for Students of Investment Strategies --- http://bonasimm.blogspot.com/

    20 timeless money rules
    Money Magazine collected the best advice from some of the smartest investors (and other people) who have ever lived.
    Carla Fried, Money Magazine, August 2007 --- http://money.cnn.com/galleries/2007/moneymag/0708/gallery.20_rules.moneymag/index.html

    "10 reasons people make stupid decisions," Bad Analysis, October 10, 2006 ---
    http://badanalysis.blogspot.com/2006/10/10-reasons-your-co-workers-make-stupid.html

    Top 100 Economics Blogs --- http://www.currencytrading.net/2007/the-top-100-economics-blogs/
    Bob Jensen's threads on blogs and listservs --- http://faculty.trinity.edu/rjensen/ListServRoles.htm 

    DealBook is a financial news service produced by The New York Times.
    It is published daily, Monday-Friday, except on U.S. Market holidays and during the last week of the year. A daily digest of DealBook is also available via email, delivered before the market opens.
    The New York Times --- http://dealbook.blogs.nytimes.com/

    There's a shelf of financial bestsellers whose titles now sound absurd: Ravi Batra's The Great Depression of 1990; James Glassman's Dow 36,000; Harry Figgie's Bankruptcy 1995: The Coming Collapse of America and How to Stop It. There’s BusinessWeek’s 1979 description of "the death of equities as a near permanent condition,
    Michael Lewis, "The Evolution of an Investor," Blaine-Lourd Profile, December 2007 ---
    http://www.portfolio.com/executives/features/2007/11/19/Blaine-Lourd-Profile#page3
    As quoted by Jim Mahar in his Finance Professor Blog at http://financeprofessorblog.blogspot.com/

    As a group, professional money managers control more than 90 percent of the U.S. stock market. By definition, the money they invest yields returns equal to those of the market as a whole, minus whatever fees investors pay them for their services. This simple math, you might think, would lead investors to pay professional money managers less and less. Instead, they pay them more and more...Nobody knows which stock is going to go up. Nobody knows what the market as a whole is going to do, not even Warren Buffett. A handful of people with amazing track records isn’t evidence that people can game the market. Nobody knows which company will prove a good long-term investment. Even Buffett’s genius lies more in running businesses than in picking stocks. But in the investing world, that is ignored. Wall Street, with its army of brokers, analysts, and advisers funneling trillions of dollars into mutual funds, hedge funds, and private equity funds, is an elaborate fraud.
    Michael Lewis, "The Evolution of an Investor," Blaine-Lourd Profile, December 2007 ---
    http://www.portfolio.com/executives/features/2007/11/19/Blaine-Lourd-Profile#page3
    As quoted by Jim Mahar in his Finance Professor Blog at http://financeprofessorblog.blogspot.com/

    Question
    What is the AICPA's feed the pig initiative?

    November 8, 2006 message from Barry Rice [BRice@LOYOLA.EDU]

    Who says CPAs don't have a sense of humor?
     
    * * *

    Feed the Pig is a new national public service campaign from the American Institute of Certified Public Accountants (AICPA) and The Advertising Council to encourage the 40 million Americans age 25 to 34 to take control of their personal finances. The campaign is a new component of the 360 Degrees of Financial Literacy effort, which offers free tools and resources to help Americans manage their finances through every stage of life.

    The American Institute of Certified Public Accountants (AICPA) is the national professional association of CPAs, with approximately 330,000 members in business, industry, public practice, government and education. The AICPA sets the ethical standards for the profession and theauditing standards for private companies, non-profit groups, and federal, state and local governments.

    The Advertising Council has produced thousands of PSA campaigns addressing the most pressing social issues of the day. The Ad Council aims to foster tremendous positive change by raising awareness, inspiring action and saving lives.

    For more information about this campaign, please contact feedthepig@aicpa.org or visit www.feedthepig.org

    Barry Rice

    November 8, 2006 reply from Bob Jensen

    Hello Barry,

    It's become a rare even to hear from the Founding Father of the AECM, and it's great to know that you're alive and well.

    I'm old enough to remember when Bill Paton, a powerhouse on the University of Michigan campus, in the middle of the 20th Century, made a push to require basic accounting for every student on campus. In the 21st Century I would not advocate this for basic accounting, but I do think it is very important to require all students to take a course in personal finance and taxation. Even our accounting students (who do not face the short-skirt, fish net stockings dilemma mentioned by Catlin below) still are incredibly weak in personal finance and have difficulty managing their own financial affairs for the long-term future. For example, how many of them can effectively argue against the clever and highly misleading "investment advisor education infomercials and scams," the dirty tricks of credit card companies, and FICO fraud? Arthur Levitt claims says society is too easily seduced.

    "I don't see frankly much out there that really does the job, and that's partially because investors are their own worst enemy," says former SEC Chairman Arthur Levitt. "They refuse to invest skeptically, and are too easily seduced by all the purveyors of financial products that prey upon their worst instincts."
    "Investor Education 101: How to Avoid Scams:  Outreach Programs Target Most-Vulnerable Americans, But Success Is Hard to Assess,"  By Lynn Cowan, The Wall Street Journal, May 9, 2006; Page D3 --- http://online.wsj.com/article/SB114713241888747241.html?mod=todays_us_personal_journal

     

    My case is strongly supported by Catlin Petre's recent article in Newsweek Magazine, November 13, 2006, pp. 16-17 --- http://www.msnbc.msn.com/id/15565824/site/newsweek/

    When I got my first job after graduating, I found that life's real tests start when final exams end.

    My friends and I are incredibly lucky to have gotten the educations we have. But there's a discrepancy between what we learn in school and what we need to know for work, and there must be some way for universities to bridge this gap. They might, for example, offer classes in personal finance as part of the economics department.

    When I got my first job after graduating, I found that life's real tests start when final exams end.

    Nov. 13, 2006 issue - To think there was once a time when I thought nailing the interview was the hardest part of getting a job. I recently applied to be a cocktail waitress at an upscale bowling alley in Manhattan. After a brief interview, the manager congratulated me, saying I'd be a great fit. It was only a momentary victory. She produced a sheaf of papers, and my stomach turned flips. I knew what was coming—the dreaded W-4. I'd filled them out before, for various summer jobs, but I'd always been exempted from taxes because I was a full-time student. Now that I had graduated from college, this was the first W-4 I had to complete fully.

    The manager watched as I hesitated. "Are you having trouble?" she asked as I squinted at the tiny print. "Oh, no, I'm fine." I stared at the form, trying to figure out how many allowances to claim—or what an allowance was, for that matter. I didn't want to admit that I was stumped, so finally I just took a guess.

    Later I asked my friends to shed some light on the matter, but none of them knew any more than I did. Instead, they advised me to do what they did: make it up and hope for the best. So much for being a well-educated college graduate.

    Having taken seminars on government, I could hold forth on the relationship between taxation and the federal deficit but was clueless about filling out a basic tax form. I'd graduated with a B.A. in philosophy in May, and had decided against going straight to graduate school. But while countless newspapers claimed that the job market for graduates was the best it had been in years, I had no idea how to take advantage of it. I couldn't imagine myself in an entry-level administrative position staring at a spreadsheet for eight hours a day—partly because it sounded dull, but also because in college I had never learned how to use spreadsheet programs. Cocktail waitressing seemed like a good way to make ends meet.

    My friends and I are graduates of Wesleyan, Barnard, Stanford and Yale. We've earned 3.9 GPAs and won academic awards. Yet none of us knows what a Roth IRA is or can master a basic tax form. And heaven help us when April comes and we have to file tax returns.

    My friends and I are incredibly lucky to have gotten the educations we have. But there's a discrepancy between what we learn in school and what we need to know for work, and there must be some way for universities to bridge this gap. They might, for example, offer classes in personal finance as part of the economics department. How about a class on renting an apartment? Granted, it might be hard to lure students to such mundane offerings, but the students who don't go will wish they had.

    College students are graduating with greater debt than ever before, yet we haven't learned how to manage our money. We can wing it for only so long before employers start wising up to our real-world incompetence. In fact, they already are: a study released last month showed that hundreds of employers have found their college-graduate hires to be "woefully unprepared" for the job market.

    All this raises a disturbing question: when I spent a ton of time and money on my fancy degree, what exactly was I buying? The ability to think, some might say. OK, fine, that's important. Still, my résumé would look odd if it read, "Skills: proficient in French, word processing, thinking." The thinking I did in college seems to be of limited utility in the "real world." The fact that I wrote a 30-page critical analysis of the function of shame in society did nothing to ease the sting when I spilled beer on a customer at the bowling alley.

    That's not the only time I've found my education incompatible with real life. I had trouble getting used to my new uniform, which consists of a supershort '50s-style bowling skirt, boots and fishnet stockings. As I changed into it for the first time, I had a vision of the feminist philosophers I had read in college hovering over me, shaking their heads disapprovingly.

    But it wasn't long before I began to see that the short skirt played a role in boosting my tips—a definite plus now that I was trying to rent an apartment, feed myself and buy the occasional book or new toothbrush.

    So which to live by: the philosophers or the skirt? I'm trying to fashion some combination, one that allows me to retain my principles without having to file for bankruptcy. After all, the last thing I want is to be confronted with more confusing government paperwork.

     

    My helpers for investors are at http://faculty.trinity.edu/rjensen/Bookbob1.htm

    My advice on mortgages is at http://faculty.trinity.edu/rjensen/Bookbob1.htm#mortgages

    My warnings for on dirty secrets of credit card companies and credit rating agencies are at http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO

    Hope to hear more from you in the future Barry!

    Bob Jensen

     

    One opinion on the top 10 investment resource sites.
    InvestMove.com --- www.investmove.com 

    Top Ten Financial Portals

    New to list The Google Finance site is at http://finance.google.com/finance
         1. Yahoo Finance
         2. MSN MoneyCentral
         3. Quicken.com
         4Wall Street City
         5Inter@ctive Investor
         6Motley Fool
         7Wall Street Research Net
         8Morningstar
         9Stockmaster
       10Silicon Investor

    BigCharts --- http://bigcharts.marketwatch.com/ 

     

    The Google Finance site is at http://finance.google.com/finance

    Financial Markets in a New Age of Oil --- http://siteresources.worldbank.org/INTMENA/Resources/MainReport.pdf

    The Digital Duo has a video on how to manage your money with a computer on the Web --- http://www.pcworld.com/digitalduo/video/0,segid,216,00.asp
    Heavily featured are bank rate finders, annuities information, and financial portals.

    Investment Helper Site from the National Association of Securities Dealers --- http://www.nasdr.com/ 

    Teach Your Children to Invest --- http://www.aaii.com/promo/20011119/feature2.shtml

    "AICPA Launches New Website '360 Degrees of Financial Literacy'," AccountingWeb, October 26, 2004 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=99979 

    As part of its on-going efforts to improve the financial health of Americans across all life stages and socio-economic levels, the American Institute of Certified Public Accountants (AICPA) and the CPA profession went live this week with its new consumer website.

    The 360 Degrees of Financial Literacy website allows visitors to immediately pinpoint the financial information they need because it is organized by common life stages that trigger financial issues: childhood, college, career, military and reserves, couples and marriage, parenthood, home ownership, entrepreneurs, life crisis, sandwich generation and retirement.

    The website is the linchpin of a coordinated program, 360 Degrees of Financial Literacy, sponsored by the AICPA and state societies of CPAs across the nation in which CPAs volunteer their time and talents to educate members of their
    community about life-stage related financial issues.

    Visitors to the site will be able to access information geared toward empowering them to make better financial choices to meet their present and future needs. Each life stage contains: articles; easy-to-use financial planning and assessment tools, worksheets and calculators; and frequently asked questions. In addition, the site allows visitors to access topics of general financial interest such as strategies for saving and investing, financing a
    car, managing credit and getting out of debt.

    You may visit the site at www.360financialliteracy.org

     

     

    Investment Research Resources

    The Google Finance site is at http://finance.google.com/finance
    CNNfn
    Datek / Zacks
    Fianancial Web
    Hoover's Online
    Market Guide Inc.
    MSN Investor
    Stock Site
    Trading Day
    Wall Street City
    Wall Street Research Net

    BigCharts --- http://bigcharts.marketwatch.com/ 

     

    Big Charts
    Fianancial Web
    IQC Historical Quotes
    Stock Site
    Trading Day
    Wall Street City
    Wall Street Research Net

     

    10k Wizard
    EDGAR Database
    EDGAR Online - People
    First Call
    InsiderTrader

     

    Big Charts
    Bloomberg
    Wall Street City
     
    Big Charts
    Citicorp
    CNNfn
    Corporate Information
    Daily Stocks
    Equityweb
    Fat's Financial Directory
    Financial Web
    Hoover's Online
    Intellifact
    Investor Home
    Invest-o-rama!
    JustQuoteMe
    Market Guide Inc.
    MSN Investor
    Netscape - Business
    Nordby
    PC Quote
    Planet Direct
    Quicken
    Quote.com
    Reuters Moneynet
    Stock Master
    Stock Quotes
    Stock Selector
    Stock Site
    Stockpoint
    Trade N Post
    Trading Day
    Wall-Street.com
    Wall Street City
    Wall Street Research Net
    Washington Post
    Wright Research Center
    Yahoo! Finance
    Zacks Free Resear

     

    Industry Research

     

    14 Steps for Researching an Industry
    Boston University
    Ithaca College
    Learning About an Industry
    Santa Clara University
    University of Pittsburgh
    What is Market Research?

     

    About.com - Industries/Professions
    CNNfn - Industry Watch
    Current Industrial Reports
    Datek - News By Industry
    Deloitte & Touche - PeerScape
    Dow Jones
    FindLinks - Industry-Specific Web Links
    FRB - Beige Book
    Hoover's - Industry Zone
    Industry Link
    Industry Research Desk
    Intellifact.com Market Research
    International Trade Administration
    Investext
    iMarket Inc.
    MarketingBASE
    Motley Fool - Industry Snapshot
    Quote.com
    NewsPage
    Standard & Poor's DRI Home Page
    U.S. Census Bureau - American FactFinder
    U.S. Industry & Trade Outlook
    WEFA
    Yahoo! - Business and Economy:Companies
    Yahoo! - Industry News
    Yahoo! - Research by Industry

     

    Invest-o-rama! stock screening
    Hoover's Online: StockScreener
    Market Guide Inc.- Stock Screening
    MSN Investor (Finder)
    Stock Selector
    Stock Tools
    Wall Street City
     

    Trade Associations 

     
    Associations Online
    ASAE's Gateway to Associations
    Better Business Bureau
    Chambers of Commerce
    GuideStar
    Industry.net (Site Map)
    IPL Associations on the Net
    Virtual Community of Associations (VCA)
    World Chambers Network

    Financial and Economic News

    The Google Finance site is at http://finance.google.com/finance
    Business Week
    Business Wire
    Companies Online Search
    Data Broadcasting Corporation
    Forbes
    Fortune
    Excite - NewsTracker
    Kiplinger
    MSNBC
    National Public Radio
    Netscape - Business Journal
    NewsEdge - NewsPage
    Northern Light
    PBS Online
    PR Newswire
    RealGuide - News
    Zacks Investment Research
    ABC News
    Associated Press
    Barrons
    Bloomberg
    Chicago Tribune
    CNBC
    CNN
    CNNfn
    Discovery
    Drudge Retort
    Economist
    Financial Times
    Los Angeles Times
    Moody's
    New York Times
    Online Gateway
    Political Junkie
    Red Herring
    Time
    US Newswire
    USA Today
    Wall Street Journal

     

     

    SIC Codes

    SIC and NAICS Codes
    SIC - OSHA
    SIC - Sites

     

    Tutorials and Education

    Tutorials on Investing, Portfolio Management, and Personal Finance

    Bonehead Finance --- http://ourworld.compuserve.com/homepages/Bonehead_Finance/ 

    Strategies and Tactics --- http://www.strategies-tactics.com/ 

    Investor Solutions Inc. (Asset Management) --- http://www.fee-only-advisor.com/ 

    American Association of Individual Investors --- http://www.aaii.org/ 

    Where to find financial statements in different countries:

     http://www.cnmv.es  
     http://www.sib.co.uk  
     http://www.cob.fr 
     http://www.rmc.es 
     http://www.infogreffe.fr 
     http://www.companies-house.co.uk 
     http://www.infocamere.it 
     http://www.publi-com.dk 
     http://www.powernet.ch 

     

    Geoportals.com (Guides to Investment Links) --- http://www.geoinvest.com/ 

    eFinancial News http://www.efinancialnews.com/ 

    Financial Risk Links --- http://victoryrisk.com/ 

    Advanced Stock Information http://www.stockadvanced.com/ (note that ratios are available)

    Enter a symbol and click "go!" to get the following information: Stock Prices, Options, Stock Splits, Charts, Live Stock Quotes, Stock Performance, Earnings Estimates, Analyst Opinions, Company Performance, Stock Valuation, Broker Reports, Company Profile, Earnings Release Dates, Latest News, Fundamentals, Intraday Charts, Forum Discussions, Technical Charts, Annual Reports, Significant Events, Institutional Ownership, Financial Ratios, Insider Trading, SEC Filings, Financial Statements, Stock Dividends, Competition, Momentum Rating, Management Discussion, Conference Calls, Short Interest, and more.

    Calculators and Other Tools

    Bob Jensen's Threads on Accounting Fraud, Forensic Accounting, Securities Fraud, and White Collar Crime ---  http://faculty.trinity.edu/rjensen/fraud.htm 

    Bob Jensen's Threads on Fees and Choosing Accountants, Financial Advisors, and Consultants --- http://faculty.trinity.edu/rjensen/fees.htm

    Guides to using a financial calculator without having to be confused by the manual
    http://moon.pepperdine.edu/~mkinsman/Using.html  

    Click here to view links to online finance and investment calculators

    The Education Alliance Network provides, free of cost, the materials for colleges and universities to expose college-level students to financial management software, helping them gain hands-on experience to real-world technologies. http://www.gps.com/ean/

    Investing and Finance
    (Including Futures, Options, Swaps, Forward Rate Agreements, and Investment Guides)

    TIAA Helpers in Personal Finance (a blog) ---
    https://www.tiaa.org/public/index.html?tc_mcid=se_b2cbau19_bing_71700000031942727_58700003826134503_76347400716128_personal+finance_c&gclid=CPn3zamd2t8CFY-zswodRtwLcg&gclsrc=ds

    Bob Jensen's links about finding financial helpers can be found at http://faculty.trinity.edu/rjensen/fees.htm 


    Investing and Finance
    (Including Futures, Options, Swaps, Forward Rate Agreements, and Investment Guides)

    Bob Jensen's links to financial helpers can be found at http://faculty.trinity.edu/rjensen/fees.htm (out of date)

    TED Talk:  How to Take Charge of Your Personal Finances ---
    https://www.ted.com/playlists/685/how_to_take_charge_of_your_personal_finances?utm_source=newsletter_weekly_2019-01-26&utm_campaign=newsletter_weekly&utm_medium=email&utm_content=playlist_title


    Librarians Say Information Literacy Is Important, They Don't Have the Tools to Teach It ---
    https://thejournal.com/articles/2017/01/05/report-librarians-say-info-literacy-is-important-they-dont-have-the-tools-to-teach-it.aspx

    Bob Jensen Says Financial Literacy is Important, and Perhaps We Have Too Many Tools to Teach It ---
     

    More specifically we don't have a single site or a single curriculum that stands out above all others in the areas of financial literacy and personal finance. One problem is knowing how to choose the best topics for different levels of learning. One vital element is an understanding of the time value of money and how to use finance calculators and/or spreadsheet software like Excel to teach it. Another important element is learning about how to borrow money and calculate annual percentage rates (APRs) on loans and savings. I personally think it's vital to teach when to buy versus rent a home. I think it's vital to learn how to make purchase verses leasing decisions for things like cars.

    More uncertain topics include how deeply to go into tax rules and advice.

    More uncertain topics include the financial aspects of marriage and divorce.

    Other uncertain topics include how deeply to go into retirement savings alternatives.

    Other uncertain topics include how deeply to go into accounting and small business management.

    There are many free sites, including my own at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Here’s What You’ll Pay for Health Care In Retirement (Social Security benefits won't even cover your health care costs if you add supplemental Medicare insurance (that I recommend by the way)) ---
    http://time.com/money/4340299/what-youll-pay-healthcare-in-retirement/

    Student Loans:  What You Need to Know Before Signing ---
    http://www.journalofaccountancy.com/issues/2017/jan/student-loan-repayment.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=09Jan2017

    Helpers for Student Loan Forgiveness and Cancellation ---
    https://www.moneygeek.com/education/college/resources/student-loan-forgiveness-cancellation/


    Rob Gronkowski has saved all of his $54 million in NFL earnings and has simple advice for young players entering the league ---
    https://www.businessinsider.com/rob-gronkowski-contract-earnings-saved-advice-nfl-rookies-2018-10

    Jensen Comment
    Players should first of all be wary of financial managers, especially those willing to take on risky investments. My advice to guys like Gronkowski is to be more hands on in choosing their own portfolios.
    Players should diversify their investments. Be wary of real estate for various reasons, especially those annual property taxes that can eat investors alive. 
    Get a good tax advisor apart from a financial advisor.
    Don't use Michael Jordan as a role model even though he's very, very wealthy. Michael is too much of a gambler and spendthrift.
    Use Rob Gronkowski as a role model.
    Players should consider putting a considerable portion, certainly not all, into tax exempt mutual funds that have fairly high after-tax cash yields (e.g., those of Vanguard or Fidelity)
    As they age to say over sixty they should consider putting even larger portions into tax exempt mutual funds. As you age inflation risk is less of a concern.
    Players should resist temptations of luxury houses, yachts, private jets, cars, and gold diggers (if you catch my drift). High life memories are probably great, but memories of downfalls are nightmares.
    Beware of old "friends" that can become leeches like the ones that brought down Aaron Hernandez ---
    https://en.wikipedia.org/wiki/Aaron_Hernandez


    From the CPA Newsletter on November 19, 2015

    US ranks 14th in world for financial literacy
    http://www.forbes.com/forbes/welcome/
    The US ranked 14th in a survey of global financial literacy that was conducted in more than 140 countries. The researchers asked multiple-choice questions about topics such as interest and diversification. Only 57% of Americans received a passing grade. Find the AICPA's financial education resources at 360financialliteracy.org. Forbes (11/18)

    How little couples talk about money. It’s probably one of the last taboos except in heated arguments after it's too late.
    Suggestions for improving communications with partners about money
    http://www.forbes.com/sites/johnwasik/2016/09/16/how-much-do-you-need-for-retirement-communication-is-the-key/#558a3fc514eb

    Jensen Comment
    I found the best way to communicate about money with Erika was to let her take over the checkbook years and years ago even before we retired. That way when I talked about long-range planning her knowledge of the short-range ins and outs made her much more sympathetic and understanding about the long run. In the short run, however, she still won't tell me how much money is in the account --- in fear that I might spend too much foolishly if I know how much is available. She let's me carry one check in my billfold --- but that's strictly for emergencies.

    And what a relief it was to put bill paying out of my mind.
    Erika actually reconciles the checkbook to the penny which is something that I rounded off to the nearest $100 give or take another $100. This task is difficult for her since, as a surgical nurse by training long before computers, she did not even use a calculator let alone a computer. She still likes to balance our checkbook without the aid of a calculator.

    How to Manage Your Finances When One Spouse Retires – and the Other Doesn’t ---
    http://money.usnews.com/money/retirement/articles/2017-04-28/how-to-manage-your-finances-when-one-spouse-retires-and-the-othe


    Time Magazine:  A Majority of People Are Making This Costly Medicare Part B Mistake --- Click Here
    Jensen Comment
    They may also be making a mistake regarding how much to pay for a Medicare supplemental plan that can get quite expensive. My wife has had numerous surgeries, hospital stays, therapy hospital stays, medication prescriptions, and therapist home visits. We have saved tens of thousands of dollars by having her on the best Medicare supplemental plan available from Blue Cross Anthem. For me having such a premium plan costs me far more than the benefits claimed to date. There are various other supplemental plans to choose from and it's difficult to recommend a given level of plan without factoring in health and income. Carefully read about coverage and costs.

    A growing number of Americans over age 65 are filing for bankruptcy just to get by, and it could signal a larger problem in the US ---
    https://www.businessinsider.com/older-americans-are-filing-for-bankruptcy-during-retirement-2018-8

    Jensen Comment
    One of the main problems is that workers factored in Social Security benefits as part of their monthly income after retirement. What they failed to account for is that Medicare, Medicare D, and Medicare supplemental insurance leaves almost nothing out of SS benefits for other living expenses. Although SS benefits are taxable, most poorer recipients probably pay little or no income taxes since nearly half of the people who file tax returns do not owe any income taxes. The killer is the cost of the Medicare and supplemental Medicare benefits. One option is to declare bankruptcy and go on Medicaid, But declaring bankruptcy has its own drawbacks including the possible loss of a home. Some folks intend to be helped by their children, but all too often their children aren't reliable in this regard. Their needs for financial help may be part of the problem.

    The cost of long-term care insurance recently doubled (almost), because the cost of long-term care almost doubled over the past decade. Costs vary greatly with quality of care --- there are a lot of expensive, albeit crappy, nursing homes. I never thought long-term care insurance was a good deal before it doubled since I planned ahead with tax-free savings for possible long-term health care. It's not possible to advise anybody about long-term care insurance without knowing more details about the person being insured, and then it's usually an expensive crap shoot. Be sure to read the fine print before signing any long-term care insurance policy.


    Four types of retirement plans for small businesses: SEP, Simple IRA, 401(k), and Solo 401(k) ---
    http://maaw.blogspot.com/2018/12/four-types-of-retirement-plans-for.html


    How to mislead with statistics
    A new NBER paper finds an increase in male mortality immediately after retiring at age 62 ---
    http://www.thinkadvisor.com/2018/01/02/early-retirement-aligns-with-early-death-study-fin?&slreturn=1515496097
    Thanks to Glen Gray for the heads up.

    Jensen Comment
    Although the report is pretty good about noting the limitations of its findings it's important to note that electing to start Social Security at age 62 is not a random event. People in their early 60s do not flip coins to decide whether or not to take early SS payments at age 62.  Many have medical issues, some life threatening, that increase the odds of choosing early payments. Also most individuals have some knowledge of their own life expectancy. Firstly, they know their prior medical history such as already having had cancer or two heart attacks. Secondly, they know something about their genetic history such as having ancestors that live to ripe old ages.

    Secondly, for many taking early retirement does not mean quitting work. Some simply change jobs, but others stay of the same job. Note that benefits may be reduced by starting SS payments at age 62.

    My main point here is that this is an illustration of where statistical findings should probably not have a major impact on individual choices because the statistical findings are misleading for particular instances --- like the particular instance of your SS timing decision.

    At what age should you start your Social Security benefits?
    https://www.schwab.com/resource-center/insights/content/when-should-you-take-social-security?cmp=em-QYC

     

    Jensen Comment
    For those contemplating starting up Social Security benefits before age 65, keep in mind that Medicare is not available until age 65 except for people who qualify for Medicare under approved disability benefits. Note that it's possible to start SS benefits under disability at most any age. Those benefits may or may not carry Medicare benefits. My wife got SS disability benefits and Medicare benefits well before she was 60 years of age (she's had 17 spine surgeries). One of our daughters got SS disability benefits without Medicare benefits when she was much younger. Her husband, however, had family medical insurance through his university faculty employer.

     

    If you are legitimately disabled you should probably apply for SS disability payments whenever you are unable to work and your other disability coverage is about to expire. It's best, in my opinion, to talk to specialized lawyers who will carry the ball on your SS disability. application. Getting approval may take years.


    Home Equity Loan --- https://en.wikipedia.org/wiki/Home_equity_loan

    The New Tax Law:  How Home Equity Loans Have Become a Worse Deal for Homeowners ---
    http://247wallst.com/housing/2018/02/02/how-home-equity-loans-have-become-a-worse-deal-for-homeowners/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=FEB032018A&utm_campaign=DailyNewsletter

    Jensen Comment
    In general I've preferred home equity lines of credit to reverse mortgages, but there are circumstances that might favor reverse mortgages.

    Reverse Mortgage --- https://en.wikipedia.org/wiki/Reverse_mortgage

    Is a Reverse Mortgage Right for You or Your Parents ---
    https://www.newretirement.com/retirement/new-reverse-mortgage-calculator-assesses-suitability/?nr_product=revmort&nr_a=OB&nr_adgroup=seniormanbig&nr_medium=contentmkt&nr_creative=b4isgnoffRMrd&nr_campaign=acssuit4retire&nr_adtype=ImageOverHeadLine&nr_keyword=lookalikev2&utm_medium=contentmkt&utm_source=OB&nr_size=00bdb2eef6ffc34429fb93fe43f8b6ad06&nr_placement=Life

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    Chicago Tribune:  The average 65-year-old couple retiring in a year can expect to spend $404,253 in today's dollars on health insurance and other health care costs ---
    http://www.chicagotribune.com/business/columnists/ct-retirement-health-care-costs-marksjarvis-column-0618-biz-20170615-column.html

    Jensen Comment
    Erika and I spent more than $400,000 on health care in the first 10 years of retirement. Firstly, Medicare is not free in retirement even though we both paid into Medicare during our working years ---
    https://en.wikipedia.org/wiki/Medicare_(United_States)#Out-of-pocket_costs

    Secondly, the premiums for our Medicare Supplemental insurance can be much greater than the Medicare premiums. I recommend buy a quality supplemental

    Thirdly Medicare D only pays a portion of our annual prescription drug costs, especially after Erika and I hit the donut hole every year ---
    https://en.wikipedia.org/wiki/Medicare_Part_D_coverage_gap

    Fourthly, there are many medical expenses not covered by Medicare, including all the non-prescription medications and such things as my hotel expenses in Boston when I wanted to be near Erika during her surgeries and therapy sessions.

    Don't think that I'm complaining since Medicare has paid out over a million dollars for Erika's multiple spine surgeries and therapies and medications. My point, however, is that retirees should not really count on much on discretionary spending from Social Security payments since there are ever so many medical expenses for many seniors on Social Security.

    And most importantly, Medicare does not pay for nursing services (such as the enormous monthly costs of nursing homes) when folks are no longer able to care for themselves. Erika and I are not at that point, but all people should plan ahead to save for the time when they might need very expensive long-term nursing care. I'm not an advocate of expensive nursing care insurance, but everybody should consider this and other alternatives in planning ahead for the possibility of needing long-term nursing care.


    How little couples talk about money. It’s probably one of the last taboos except in heated arguments after it's too late.
    Suggestions for improving communications with partners about money
    http://www.forbes.com/sites/johnwasik/2016/09/16/how-much-do-you-need-for-retirement-communication-is-the-key/#558a3fc514eb

    Jensen Comment
    I found the best way to communicate about money with Erika was to let her take over the checkbook years and years ago even before we retired. That way when I talked about long-range planning her knowledge of the short-range ins and outs made her much more sympathetic and understanding about the long run. In the short run, however, she still won't tell me how much money is in the account --- in fear that I might spend too much foolishly if I know how much is available. She let's me carry one check in my billfold --- but that's strictly for emergencies.

    And what a relief it was to put bill paying out of my mind.
    Erika actually reconciles the checkbook to the penny which is something that I rounded off to the nearest $100 give or take another $100. This task is difficult for her since, as a surgical nurse by training long before computers, she does not even use a calculator let alone a computer. She was very good at counting sponges and sometimes had to tell the surgeon that a sponge was unaccounted for and must still be hidden in the body. One time a surgeon ignored her. Three weeks later he had to go back into the patient's body to look for the (now infected) sponge.


    Most Seniors Flunked a New Retirement Quiz. Could You Do Better? ---
    http://time.com/money/4771461/retirement-quiz-pass-or-flunk/?xid=newsletter-brief


    Six Ways to Fraud-Protect Savings of the Elderly (note the "springing" power of attorney)---
    http://www.cbsnews.com/news/6-ways-to-fraud-proof-your-retirement-savings/

    Jensen Comment
    Some of these tips should be modified in light of protections such as the degree of protection provided by a trustworthy ID theft insurance protection company.
    Definitely consider the deep pockets of your account provider. Many thefts are less protected if you use a local money manager (like a solo attorney or CPA) rather than a reputable money management company.
    If you have a broker make sure that broker is not churning the accounts for increased transactions commissions.
    Older folks may not really need to pay money managers if they park their savings in safe places like TIAA, Vanguard, or Fidelity offering free high-quality advice to older folks. Before retirement many employers provide some good free advice for money management.

    Some things vital to younger people are not as relevant to older folks. For example, when investing pension savings a younger worker should definitely consider inflation risks. Inflation risk of of less concern to most older folks when it comes to weighing investment risk against inflation risk. For example, investing savings in a tax-exempt bond mutual fund is not a good alternative for long-term inflation protection, but may be a good place to park money for older folks like me less concerned with inflation risk. A high-priced house on an acreage may be good inflation protection for a young couple but retirees might consider selling it off after retirement so they can appreciate the liquidity without having to incur the financing cost of a reverse mortgage. In my opinion, reverse mortgages are over-hyped in the media. For sme older folks they are not the best alternative for liquidity.

    Everybody should keep an eye on tax reform.
    I doubt that Trump will be able to eliminate all the itemized deductions he recently proposed eliminating, but some older folks should reconsider both investing and spending practices if he has some success. Personally, I don't think Congress will greatly modify tax law for individuals, although there may be some major revisions for business firms. Older folks affected by the more complicated aspects of tax regulations, such as those having Subchapter S investments, definitely should seek out expert advice unless they are experts themselves. Don't be blind sided by serious tax reform!

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    20 Rules of Personal Finance ---
    http://awealthofcommonsense.com/2016/12/20-rules-of-personal-finance/


    rom the Scout Report on May 5,

    Google Keep --- https://keep.google.com 

    Gmail users may be interested in Google Keep, a tool that allows users to save reminders, to-do lists, URLs, images, and more in just one place. Once downloaded, users can quickly and easily create reminders, upload images, or add notes. While Google Keep is folder-free (which may appeal to those looker for simplicity), users do have the option of adding labels, color-coding items, and conducting  a text search for a note or item of interest. Google Keep also syncs across multiple devices and users have the option of copying and exporting text from Google Keep into Google Docs for editing. Just like Google Docs, Google Keep also allows users to easily share notes and items with others.


     DashFlow Money Tracker --- http://dashflow.co

    Looking for some digital help in tracking your spending habits and meeting financial goals? Dashflow may appeal. This financial application for iOS devices allows users to organize and track spending.  Financial information is presented across a number of useful graphs and the user-friendly and straight-forward interface allows users to focus on their financial life without distraction. In addition, DashFlow allows users to enter due date reminders and track multiple financial goals at once. The basic version of DashFlow is free; users have the option of purchasing Pro or Premium versions for additional features

     


    From the CPA Newsletter on November 19, 2015

    US ranks 14th in world for financial literacy
    http://www.forbes.com/forbes/welcome/
    The US ranked 14th in a survey of global financial literacy that was conducted in more than 140 countries. The researchers asked multiple-choice questions about topics such as interest and diversification. Only 57% of Americans received a passing grade. Find the AICPA's financial education resources at 360financialliteracy.org. Forbes (11/18)


    Still, there’s little to celebrate from Bankrate’s survey of banks. To make sure you’re not hit with egregious ATM fees, here are three simple ways to avoid them
    ---
    http://time.com/money/3433402/how-to-avoid-atm-fees/


    Finance Tips from The Math Dude Blog ---
    http://www.quickanddirtytips.com/
    These my be especially interesting when teaching financial literacy modules

     

    1.      What Is Credit Card APR?

    is a credit card APR and how is it calculated?" A.  APR is short for Annual Percentage Rate, ... which is the interest you’re charged over a 12-month period. For instance, a card with 24% APR costs 2% ... a single account can have several different APRs. The card company may charge one rate for purchases, one ...

    By Laura Adams, MBA, Money Girl - December 18, 2013

    2.      What Is a CD and What’s the Best Way to Invest with Them? Audio

    a higher rate of interest. Understand APY vs. APR Speaking of interest, there are two main ways that ... interest is expressed for CDs: APY and APR. APY stands for annual percentage yield and it’s the rate you’d ... APY is the rate you’ll get if you never withdraw interest from a CD. APR, on the other hand, stands ...

    By Laura Adams, MBA, Money Girl - February 10, 2011

    Jensen Comment
    CD's have very lousy investment returns since the Federal Reserve drove interest rates to almost zero.
    In general these days you have to take on more risk to get better returns.

    3.      Can I Save Money Using a Balance Transfer Credit Card?

    transfer card with 0% APR for 12 months, no annual fee, no balance transfer fees, plus cash back rewards. ... APR after the 0% APR 12-month promotion period expires. If she continues to make $500 monthly ...

    By Laura Adams, MBA, Money Girl - January 08, 2012

    4.      Consolidate Credit Card Debt and Save Money

    a lower interest rate, you can save a lot of money. The Discover® More Card gives you 0% APR for 15 months ... Lending Club or Prosper —where you can borrow for as little as 6.59% and earn an average of 10.59% APR ...

    By Laura Adams, MBA, Money Girl - June 02, 2012

    5.      How Is Credit Card Interest Calculated?

    typically charged a daily rate that's equal to the card's annual percentage rate (APR) divided by ... 365. For instance, the APR for new purchases could be 11.99%, cash advances 23.99%, and balance ...

    By Laura Adams, MBA, Money Girl - December 01, 2011

    Jensen Comment
    Make every effort to pay more each month than what the credit card billing says is the "minimum" amount.
    Better yet always take the monthly amount due down to zero to avoid interest charges altogether.

    6.     

    7.      401(k) Loans

    card debt of $6,000. The APR (annual percentage rate) on my card is high at 17% and I'd love to ...

    By Laura Adams, MBA, Money Girl - December 21, 2010

    8.     

    9.      Should You Apply for a No-Interest Credit Card?

    Otherwise, after the promotion ends, the annual interest rate or APR usually skyrockets on your outstanding ...

    By Laura Adams, MBA, Money Girl - September 26, 2013

    10.  How to Make a Balance Transfer Pay Off Audio

    transfer at 0% APR for a limited time. Should I transfer the balance of my higher-interest card and save ... a balance transfer card, look for the following features: an introductory interest rate of 0% APR for ...

    By Laura Adams, MBA, Money Girl - December 18, 2012

    The Khan Academy also has some great personal finance tutorials ---
    https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers


    Helpers for Student Loan Forgiveness and Cancellation ---
    https://www.moneygeek.com/education/college/resources/student-loan-forgiveness-cancellation/

    Jensen Comment
    If you do not qualify for student loan forgiveness you should probably compare your current annual loan payments with payments if you privately refinance at the present low interest rates. However, you may lose some protections and options in doing so. Be careful about refinancing that sounds too good to be true. You might be able to refinance with your parents in a win-win situation if your parents consider you a good investment risk and you pay a higher interest rate than their safe investment alternatives. Read that as meaning you have a good job in a good profession and are not an unemployed aspiring artist or writer or getting a Ph.D. in a discipline where Ph.D. graduates are a dime a dozen.

    Whether or not you pay your student loan off aggressively by making above the minimum amounts due each year depends much upon what you would otherwise do with the money. Savings rates are so low that you are probably better off paying the loan off aggressively relative to saving. Risky investments are not the same as gambling, but you should probably be very cautious with putting money into risky investments like tech stocks until you have your student loans paid off. Also remember that there are transactions costs for buying and selling land, houses, and stocks. Short-term ownership (called flipping) of a house/condo is risky unless the buying deal was very good in a very hot housing market such as near a college or medical center. It helps in house flipping markets if you do the fixing up of a house yourself.

    My advice is to avoid buying new cars until your loan is paid off, although you may have to invest in a quality pre-owned car or lease modest cars at low rates. Think public transportation if you live in an urban area that has good public transportation. You can always rent an occasional car if needed for a trip.


    "Why Land and Homes Actually Tend to Be Disappointing Investments," by Robert J. Schiller, The New York Times, July 15, 2016 ---
    http://www.nytimes.com/2016/07/17/upshot/why-land-may-not-be-the-smartest-place-to-put-your-nest-egg.html?_r=1

    Jensen Comment
    This article is yet another example of how to mislead with statistics. Making money in land parcels and homes is exactly like making money in the stock market --- you've got to have picked the right ones to put into your portfolio. I sold an Iowa farm that more than doubled in value after I sold it. One reason was the idiotic decision to subsidize corn farmers by requiring upwards of 10% corn ethanol in every gallon of gas. North Dakota farmers made a lot of money selling oil rights. Owners of condos in Manhattan and San Francisco made small fortunes on tiny bits of property. Houses purchased for less than $50,000 in 1980 in Silicon Valley may be worth more than $5 million in 2016.

    But what looks like good deals in stocks and real estate in hindsight is just that --- hindsight! There are no guarantees of high returns without taking risks unless you are in the Mafia where you can force your own returns. Expectations of higher returns means acquiring more financial risk for most of us.

    There are some serious advantages to investing as much as you can in a home when you anticipate owning it for more than 10 years. Firstly, you get the added non-financial enjoyment of living in a wonderful home. Secondly, there are some tax breaks for the the 50% of taxpayers that really pay taxes. But there are a drawbacks. Property taxes are the primary way the USA funds its K-12 schools as well as pay for county and municipal services. In most instances growth rates for property taxes outpaced the capital gains since the real estate bubble burst in 2007.

    There are also some wonderful instances where owners have successful rental properties such as owning a duplex where the rent from one half of the house pays all the expenses of the entire house. A friend of mine, Tom Selling, says that when he moved from Dartmouth it was a good decision to continue to rent his condo rather than sell it at the time. That is probably true of nearly all rental property close to college campuses if the property was purchased before the real estate bubble burst in 2007. There are some tax breaks of rental housing such as depreciation and maintenance expense write-offs. For example, half the cost of the roof on a duplex might be expensed.

    Don't get carried away investing in land that has no serious annual cash inflow. Of course there are exceptions, but in general the taxes and maintenance fees (e.g., mowing) plus the eventual cost of selling the land take all the fun out of trying to eventually make a profit.

    With bank savings deposits earning virtually zero interest it's tempting to take on more financial risks with your savings. Each investor is unique. I advise getting "free" advice from reputable mutual funds like Vanguard or Fidelity or TIAA. I don't advise paying dearly for it at your local investment advisor service. Find out the range of alternatives from long-term tax exempt mutual funds to diversified real estate fund to a varity of long-term and short term equity alternatives. Learn enough to become your own adviser.

    Bob Jensen's helpers for investors (free because that may be more than they're worth) ---
    See Below
     


    Home Equity Loan --- https://en.wikipedia.org/wiki/Home_equity_loan

    From the CFO Journal's Morning Ledger on August 12, 2016

    Home equity loans come back to haunt borrowers, banks
    The bill is coming due for many homeowners on a type of loan that was widely popular in the run-up to the housing bust, causing a rise in delinquencies at banks. More homeowners are missing payments on their home-equity lines of credit, or Helocs, a type of loan that allows borrowers to withdraw cash from their house to pay for renovations, college tuition or almost any other expense. These loans typically require interest-only payments for the first 10 years, but then principal payments kick in for the next 15 or 20 years. Borrowers who signed up for Helocs in early 2006 were at least 30 days late on $2.8 billion of balances four months after principal payments kicked in this year, according to Equifax  Roughly 840,000 Helocs taken out in 2006 are resetting this year, with principal payments on an additional nearly one million loans expected to hit in 2017.

     


    Alliance for Financial Inclusion (financial literacy initiative funded by Bill and Melinda Gates) ---  http://www.afi-global.org/

    Tips on Personal Finance --- http://twitter.com/EverydayFinance

    Helpers in planning for retirement --- http://www.plan-for-retirement.com/

    Personal Financial Helpers:  From the Virginia Society of CPAs --- http://www.vscpa.com/Financial_Fitness/

    Wharton Professor Olivia Mitchell on Worldwide Financial Literacy
    http://www.ssga.com/definedcontribution/docs/Olivia_Mitchell_GlobalFinancialLiteracy_SSgADC_The Participant02.pdf
    Thank you Jim Mahar for the heads up.

    Education: Federal Reserve Bank of Kansas City ---  http://www.kansascityfed.org/education/
    Note the Financial Fables section --- http://www.kansascityfed.org/education/fables/index.cfm

    A Guide to College Savings Plans ---
    http://www.moneygeek.com/education/college/resources/college-savings-plans-guide/

    Bob Jensen's helpers in personal finance ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

    Video:  Investing for Inflation ---
    http://www.simoleonsense.com/janet-tavakoli-author-of-dear-mr-buffett-on-investing-for-inflation/

    What five classic Disney movies can teach us about personal finance ---
    http://www.csmonitor.com/Business/Saving-Money/2014/0904/What-five-classic-Disney-movies-can-teach-us-about-personal-finance

    U.S. Social Security Retirement Benefit Calculators --- http://www.socialsecurity.gov/estimator/

    Mutual Funds: 10 questions to test your IQ (ten answers every investor should know by heart) ---
    http://www.azcentral.com/business/consumer/articles/2009/04/10/20090410biz-MutualFundsQuiz0410.html

    The London Stock Exchange, one of the UK’s top financial institutions – has recently revamped its website ( www.londonstockexchange.com  ) to expand its user-base. A wealth of useful financial information can be accessed on the new site, such as live share and stock prices, charts, indexes including FTSE 100 index, listed companies and financial news. As well as the global financial shares and trading markets, users can also keep up to date with the UK stock market by taking advantage of the many new additions to the website.

    "Lack of Financial Literacy Complicates Student-Aid Process, Report Says," by Allie Bidwell, Chronicle of Higher Education, May 13, 2013 ---
    http://chronicle.com/article/Lack-of-Financial-Literacy/139223/

    Bob Jensen's advocacy of putting financial literacy in the common core ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#FinancialLiteracy

    The Washington Post's New Personal Finance Service ---
    http://www.washingtonpost.com/business/get-there/

    This Sneaky Retailer Trick Could Cost You Hundreds of Dollars ---
    http://time.com/money/4578471/retailers-deferred-interest-deals/?xid=newsletter-brief


    Social Security Administration --- https://www.ssa.gov/
    This site has a reasonably good search engine

    "Here's when you should start claiming your Social Security benefits," by Ben Carlson, Business Insider, May 2016 ---
    http://www.businessinsider.com/when-to-claim-social-security-benefits-2016-5

    . . .

    What if you’re still working?

    What age gives you the highest benefits?

    What happens in a widow(er) situation?

    What’s the breakeven if you wait to claim?

    What about divorced spousal benefits?

    How does social security affect tax planning

    Continued in artilce

    Retirement Planner: Benefits For Your Divorced Spouse --- https://www.ssa.gov/planners/retire/yourdivspouse.html

    Here’s What You’ll Pay for Health Care In Retirement (Social Security benefits won't even cover your health care costs if you add supplemental Medicare insurance (that I recommend by the way)) ---
    http://time.com/money/4340299/what-youll-pay-healthcare-in-retirement/

    Forget about retiring on Social Security. Health care costs alone will devour the entire lifetime benefits—and then some—of a 45-year-old couple when they retire, according to projections released Wednesday by HealthView Services, a Danvers, Mass.- based company that provides retirement health care cost data and tools to financial advisers.

    Social Security payments will stretch farther for current retirees, but the numbers are still stark: In 2016, the average 66-year-old couple will require 57% of their lifetime, pre-tax Social Security benefits to pay for health care costs, according to HealthView Services. The average 45-year-old couple, by contrast, will need 116% of lifetime Social Security payments to cover health care costs.

    Total retirement health care expenses for that 45-year-old couple planning to retire at age 65 will come to $592,275 in today’s dollars and $1.6 million in future dollars, HealthView Services projects. The projection assumes the male member of the couple will live to 87 and the female to 89.

    The total tab includes premiums for Medicare Part B, which covers doctors’ visits, Part D, which covers drugs, and Part F, which is the most comprehensive supplemental insurance. It also includes expenses not covered by Medicare, such as dental work and hearing aids. Notably, it does not include long-term care costs. Medicare does not pay for long-term stays in nursing homes, or for assisted living facilities.

    Of course, these averages won’t reflect everyone’s experience. People’s individual health status will influence how much they pay. What’s more, not everyone will choose to buy a Part F Medigap policy. It’s a popular but expensive choice, with monthly premiums that vary widely by region but average around $200.

    While expensive, Part F plans eliminate a lot of the uncertainty of medical expenses. Premiums are predictable and cover most of beneficiaries’ out-of-pocket expenses. Without a supplemental plan, beneficiaries could be on the hook for even more if they have a big medical episode, such as a stroke, or a serious diagnosis like cancer.

    On Plan F, “if you never have a problem and drop dead at 110, you’ll have wasted a lot of money,” said Ron Mastrogiovanni, founder and CEO of HealthView Services. A more likely scenario, he said, is that, “We’re not going to stay healthy throughout retirement.”

    Continued in article

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

    Bob Jensen's universal health care messaging --- http://faculty.trinity.edu/rjensen/Health.htm 

     


    If you are daydreaming about the differences between men and women don't forget this important difference.

    In July I had occasion to visit a friend in our local nursing home in Franconia. I had to pass by a large number of residents on the porch before reaching the front door. I counted 18 old women and 2 old men. Why weren't the gender odds like this the same when I was a student on campus?

    From the CPA Newsletter on December 4, 2015

    Women face higher long-term care costs
    Women are more likely to need long-term personal care as they age, research shows. In addition, women often need this type of care for longer periods than men do, partly because they tend to live longer. Total projected spending on long-term care exceeds $182,000 for women over 65, half of which will be out of pocket. Forbes (12/3)

    Jensen Comment
    Remember that Medicare does not fund nursing home confinement, and the costs of such confinements are exploding in part due to demand increases from the aging baby boomer generation. Yikes that's me!


    Medical Costs Can Add Up in Retirement
    Two Big Reasons You Need Added Savings in Retirement ---
    http://www.forbes.com/sites/ashleaebeling/2015/09/25/two-big-reasons-you-need-more-retirement-savings/

    Think Medicare will cover you when it comes to all your health-related expenses in retirement? Not even close. Sure Medicare is the cornerstone of coverage, but it covers approximately 60% of health care expenses, and it does not cover long-term care expenses. That leaves retirees with major health care expenses (medical, dental, vision, prescription) and possibly long-term care expenses (home health care services or assisted living or nursing care) coming out of their retirement nest egg.

    Pre-retirees should take a two-pronged approach to planning for these health-related expenses in retirement and make health care part of their overall retirement plan, says Carol Goetsch, manager of advisory client services at U.S. Bancorp Investments in Minneapolis.

    “Having a plan allows you to determine where and how you want coverage and the role your family members will play; not having a plan becomes reactionary and creates dysfunction in the family.” Goestch says.

    Here’s the overwhelming big picture. A couple at age 65 can expect to spend $395,000 in medical, dental, vision, hearing, premiums, co-pays and other out of pocket health care expenses in retirement–according to Healthview Services 2015 Retirement Health Care Cost Data Report. Long-term care expenses are separate, and will cost an average of $140,000 per person, although the averages can be misleading, meaning you might need a lot more, especially if you’re a woman.

    Here are some planning tips.

    Don’t count on health care cost averages. A Midwestern couple came to Goetsch when they were turning 60. They thought they could live off of $75,000 a year until their Bancorp advisor helped them run a health assessment that estimated their combined health care expenses would be $3,500 a month or $42,000 a year (one is a diabetic and one has heart issues). On average an individual needs $1,000 a month to cover basic medical expenses in retirement, but one mistake people make is looking at averages instead of what their circumstances project. “Certain impairments take more of a toll,” Goestch says. Gender, family history, and current life expectancy should all be taken into account. In this case, the couple decided to work a little longer and take advantage of workplace benefits–at least until they reached 65 and could go on Medicare. They cut back on lavish travel and supercharged retirement–and health care–savings.

    Continued in article

    Four Mistakes That Could Ruin Your Retirement ---
    http://www.cnbc.com/2015/09/03/4-mistakes-that-could-ruin-your-retirement.htm

    Mistake: Boosting bond allocations at retirement
    It used to be a good ideal to shift from CREF to TIAA before retirement. Thanks to the Fed's virtually zero interest rate policies this may no longer be a good idea. Times change, however, so everything should be reconsidered if you won't be retiring soon.

    Mistake: Counting on Medicare to cover all health care costs
    Medicare is being torn apart by fraud and explosion of medical costs. Drastic revisions in the future almost certainly will entail making middle and upper income retirees bear much more of their medical costs than they currently are paying out when on Medicare.

    Mistake: Moving to a state for the low income taxes
    There are usually more important variables for choosing where to live in retirement than state income taxes. However, if plans include moving to another state both income and inheritance taxes should be considered. We have two grown children living in California and Maine. Taxes were a consideration when we chose New Hampshire with good tax deals relative to Maine and California, and New Hampshire is very close to Maine.

    Mistake: Not saving enough for retirement.
    This is a bigger problem since the Fed's zero interest rate policy destroyed most safe investment alternatives like certificates of deposit and low-risk bonds. Now investments for retirement must take on more risk like choosing all CREF versus having some TIAA. Of course taking on more financial risk entails taking more chances. Dah! Some investors take chances in real estate, but the real estate in my portfolio was only in the house I lived in and the land surrounding this house. I do not generally like rental property because of the headaches of being a landlord (including owning a farm). I do not like idle land investments because of the annual property taxes and insurance cash going out and no cash coming in.

    More of Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

     

    This is the research you should do before picking a credit card ---
    http://www.businessinsider.com/sc/pick-the-right-credit-card-2015-8 

    AICPA:  Back-to-School: How to Pay for College ---
    http://blog.aicpa.org/2015/08/back-to-school-how-to-pay-for-college.html#sthash.gcYpuxSm.PSkI9cqt.dpbs

    The Upshot: Is It Better to Rent or Buy? (real estate calculator) ---  http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
    Jensen Comment
    My general advice for new faculty is not to buy a home until tenure is achieved except in hot markets where fast turnover profits are probable provided too much is paid initially. After tenure achievement the above calculator can be helpful.

    My priors were to invest as much as possible in long-term ownership of a house and the least possible in the long-term ownership of a very reliable car. 

    However, be careful where you buy real estate. Up in the White Mountains I advise mountain or lake views even though New Hampshire has a view tax.  There really aren't any gated neighborhoods up here, and nothing would be gained by having gated neighborhoods. In San Antonio I would not put big money into a house that's not in a gated neighborhood. Even if you're opposed philosophically to that concept, the fact is that expensive homes do not sell very well in San Antonio unless they are in gated neighborhoods with armed guards at the gates. I would have had much more capital gain on my big San Antonio house if it had been in a gated neighborhood. Sigh!


     

    The Upshot:  Is It better to Lease or Buy a Car? --- http://money.howstuffworks.com/business/getting-a-job/buy-vs-lease-car.htm
    Jensen Comment
    Leasing became much more attractive when the Federal Reserve drove commercial interest rates toward zero. But that does not mean "more attractive" than buying in all instances. Much depends on the amount you drive and the terms of the lease in the context of  the amount you drive. It also depends a lot upon your willingness to drive older cars. When I worked in San Antonio where newish cars are stolen in unbelievable numbers daily my wife's car was a newish tiny Honda Civic, and I drove a very reliable battered up ancient Ford station wagon that had a newish engine and transmission under the hood. This ghetto-like car looked so bad that nobody would think of stealing it and driving it across the border to Mexico.

    In general, even in retirement, my wife and I do not mind driving well-maintained older cars. Our main car in the White Mountains (where car theft would be headline news) is a very reliable Subaru Forrester that we will probably drive until it is at least 20 years old (it's now five years old) or has over 100,000 miles.  The Subaru will probably be the last car we ever own. After that its car leasing for us unless we're in a nursing home. I also keep an unreliable old Jeep Cherokee in the barn that's used mostly for hauling brush to the dump. That will be in our barn on the day I die.

    My point is that leasing would probably not be the best choice for us until we're very old. However, leasing is the best choice for most of our children except for one son who puts a lot of miles on a car commuting a long distance to work in California.


    How to Mislead With Statistics
    "How much you have to save every year if you want to put your kids through college," by Libby Kane, Business Insider, April 27, 2015 ---
    http://www.businessinsider.com/how-much-to-save-every-year-for-college-2015-4 
    Customized cost and savings calculators.

    Jensen Comment
    I've repeated elsewhere over and over that there are many factors that make the cost of college education variable and uncertain. For example, the cost of getting an online degree (even from a high quality university) while living at home is a whole lot different than paying full tuition, room, and board for an onsite degree at either a public or private university or college.

    Also financial aid is common and very serious for a majority of students. The tuition cost is now zero in many USA prestigious (e.g., Ivy League) universities for students from families earning less than $125,000 per year. In addition, President Obama is now forgiving all or parts of student loans for a relatively small number of graduates.

    The problem when the kids are very young lies in choosing a college savings plan without knowing what lies ahead in terms of future tuition costs, living costs, financial aid, etc. Colleges may be funded quite differently 20 years from now, and we really don't know what kind of deals will be available way out in the future. For example, it's entirely possible that the most prestigious universities in the USA will be totally free to all students, albeit a highly restricted number of students qualifying for admissions. It's entirely possible that the first two years of college will eventually be free in most state-supported universities.

    Parents and especially grandparents currently contribute a great deal of financial support from tax-advantages 529 Plans ---
    http://en.wikipedia.org/wiki/Coverdell_Education_Savings_Account
    Who knows if and how long those plans will survive?
    These plans are currently clobbered by the Fed's "quantitative easing" (QE) interest rates that through savers under the bus by paying virtually negligible interest rates.

    A Guide to College Savings Plans ---
    http://www.moneygeek.com/education/college/resources/college-savings-plans-guide/


    This Is the Worst Retirement Solution Ever ---
    http://www.bloomberg.com/news/articles/2015-04-21/this-is-the-worst-retirement-solution-ever?cmpid=BBD042115


    Tips for Passing a Personal-Finance Stress Test ---
    http://blogs.wsj.com/briefly/2015/03/11/5-tips-for-passing-a-personal-finance-stress-test/

    Your household finances might be humming along just fine. But would they be able to withstand an unforeseen medical bill or sudden reduction in paid working hours? How about a job loss, furlough or unexpected tax assessment? As the Federal Reserve prepares to announce the results of this year’s stress tests on the nation’s largest banks Wednesday, we offer the following five stress tests for your own finances.

    1 Debt-to-Income Ratio

    Divide your debts, including credit cards, student-loan and car-loan balances, and your mortgage, by your pretax earnings. That will give you your debt-to-income ratio.

    Sheryl Garrett, the founder of the Garrett Planning Network, says a good rule of thumb is to have a personal debt-to-income ratio of less than 28%, not counting mortgages, or household debt-to-household income of less than 36%, including mortgages.

    A higher ratio is a warning that you have too much debt relative to your income and you either have to lower your debt or raise your income, or both.

    2 Discretionary Expenses

    It’s important to know what your discretionary expenses are and how quickly you can cut back on them in times of stress.

    Start by sorting all your expenses into three categories: fixed, which are those payments you have to make regardless of circumstances; variable nondiscretionary, which are expenses such as groceries or air-conditioning bills over which you can exercise some level of control; and purely discretionary expenses such as gym memberships and vacations.

    Discretionary expenses should make up a greater percentage of your overall expenses than your fixed expenses, says Eleanor Blayney, consumer advocate for the CFP Board in Washington, giving you room to defer, cut back or eliminate.

    “Figure out what you could live without or whittle down quickly,” she says. Discretionary Expenses > Fixed Expenses

    A good standard is for discretionary expenses to be two thirds of your overall expenses.

    3 Emergency Savings

    Financial planners tell clients to reserve enough cash in savings or other easily liquidated accounts to cover three to nine months of expenses—with three months being the bare minimum.

    This stash will be the first place you turn for help because it is readily available. Getting at it shouldn’t require selling securities or taking an early-withdrawal penalty from a retirement account or certificate of deposit.

    The greater your obligations, the more emergency cash you should have squirreled away, planners say. A single mother with a mortgage would want several months if not more than a year of cash to cover expenses, for example. A freshly graduated single person who has no student debt and who is renting an apartment might need only three months’ worth.

    The National Foundation for Credit Counseling offers a program called “Sharpen Your Financial Focus” that has free online questionnaires for people to use in figuring out their own plans. 3 to 9 You should have enough cash to cover three to nine months of expenses in case of emergency.

    4 Additional Income

    Consider your options for generating additional income in a period of stress, says Bruce McClary, a spokesman for the National Foundation for Credit Counseling.

    Wages or tips from a second part-time job or proceeds from selling personal possessions could raise enough to float you through a financially strapped period without spending down your emergency savings too quickly.

    5 Total Assets

    If banks are evaluated by the liquidity and quality of their balance sheets and their ability to weather a run on their deposits, consumers could be evaluated by the liquidity and quality of their assets and how well they could withstand an immediate call by all their creditors, Ms. Blayney says.

    Add up your emergency savings, the equity in your home and the balances in your retirement savings accounts to get your total assets. Then divide that number by your monthly expenses to figure out how many months you could live with no investment appreciation and no income until you have completely depleted those assets.

    Take two people, each with a net worth of $1 million. The first person has securities and cash accounts, the second has her money tied up in real estate. Which one could pay the bills more quickly with less of a discount to convert assets to cash?

    “You need to look at the liquidity of the net worth and the quality of it,” she says.

    Corrections & Amplifications

    To calculate debt-to-income ratio, divide your debts by pretax earnings. An earlier version of this post incorrectly said the ratio was obtained by dividing pretax earnings by debts.

    Jensen Comment
    The article should have given more consideration to tax planning. For example, I would give consideration to combining savings liquidity with tax exempt income in a diversified tax exempt mutual fund such as a a low cost fund (with a checkbook) available from Fidelity or Vanguard. Care must be taken, however, to have long-term savings that are better protections against inflation such as CREF accounts.

    Real estate is a tricky investment due to property taxes and insurance. If there's sufficient rental to cover these expenses such as in a condo or profitable farm then real estate is more attractive as a long-term investment. For example, I have a friend who kept his condo beside the Dartmouth College campus long after he moved on. He now calls this condo his cash cow.

    However, I don't like being a landlord --- which is why I sold my inherited Iowa farm and invested mostly in our home and in a tax exempt mutual fund from Vangard. However, I'm old now so that inflation is less of a worry in my remaining lifetime.

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    "Here's The Painstakingly Detailed Budget Of A Couple Who Earns Nearly $15,000 A Month," by Libby Kane, Business Insider, January 26, 2015

    Question
    Suppose you were teaching a financial literacy course and used the following monthly budget for a couple. What would you focus on to stimulate student debates on the issues.

     

    Hints

    ·        The couple earns $180,000 after-tax withholdings and tax estimated additional payments per year (assuming both adults work giving rise to the day care allowance).

     

    ·        My calculation assuming a 4% APR 30-year mortgage initially is that the couple owns a home originally costing $345,150 plus whatever they made in a down payment. This price would be relatively high in a decadent farming town in Iowa and relatively low in a suburb of most major cities. It would be a tent in Silicon Valley. It would not be much of a house within a walking distance of virtually all major universities in the USA.


    The house probably cost a lot less if the $1,647.80 payment also covers property taxes and mortgage insurance. Have your students estimate the original cost of the home if the payments on the mortgage itself are only $1,000 per month. They must be living in an old shack or a cramped town house.

     

    ·        The life insurance seems relatively low for a family with young children.

     

    ·        The "out-to-eat" budget is relatively low and can be used up entirely with two nights out at nice restaurants per month. The family must eat out mostly at fast-food and pizza joints. One way to save money plus eat healthy meals is to eat at a nearby hospital like we did in both San Antonio (where the Northeast Baptist Hospital was only a block away). Eating at the hospital was cheaper than cooking at home. Erika worked full time at this hospital.


     

    ·        The electric bill of $200 would not cover our electric bill with heating and air conditioning while we lived in San Antonio where the electricity and gas bill was over $400 per month. In the White Mountains of New Hampshire electricity, propane and heating oil would be more like $1,000 per month. It's very cold up here.

     

    ·        I think for a younger family not of Medicare the medical, dental, and prescription drug allowance is way too low in the budget shown in the article below. For retired folks like us on Medicare the medical, dental and prescription outlays would be much, much higher --- more like $1,500 per month. Younger folks naively think Medicare is "free"  after you retire. It's not free when you add in the cost of Medicare itself, the cost of Medicare supplemental insurance, and the out-of-pocket costs of medicine not covered by Medicare D.

     

    ·        How about the other monthly estimates?
    Are they realistic for the USA?
    Are important items deleted in terms of most families?

     

    o   In San Antonio where I watered my lawn with a sprinkling system my water and sewer bills were over $200 per month

    o   My Time Warner cable bill is now over $160 per month

    o   What about those monthly iPhone usage fees?

    o   How about home owner insurance and umbrella (liability) insurance?

    o   How about lawn and garden equipment such as a garden tractor and lawn mowers and snow throwers?

    o   What about furniture and appliance costs? Up here in the boondocks I spend quite a lot on extended on-site warranties.

     

    When you teach from this budget you might go into more details regarding possible tax strategy and retirement strategy  pros and cons.

     

    "Here's The Painstakingly Detailed Budget Of A Couple Who Earns Nearly $15,000 A Month," by Libby Kane, Business Insider, January 26, 2015 ---
    http://www.businessinsider.com/detailed-budget-of-high-earning-couple-2015-1 

     

    February 1, 2015 reply from Patricia Walters

    Bob

    Not every place charges for water. We had a well in VA and we paid electricity and maintenance for the pump, not for the water.

    We had a lawn mower in VA. Here we have someone come and cut our grass who has the equipment, about 100 per month in the growing season only. No snow. Even in VA we had shovels, not power tools.

    No TV, only cable for internet. Biggest utility charges electricity (we have big OLD house) and phones.

    We don't know where these people live. Costs vary widely depending on location, even within counties.

    Are there homes in Fort Worth that cost over a million? Sure. But there are also homes in reasonable neighborhoods for less than $150,000. I live in one of those neighborhoods.

    I've lived in NYC, NJ, VA and now TX. Costs vary widely across those places and within those places.

    One if their biggest expenditure was school, which seemed likely to me.

    Why do you doubt the truth of their budget?

    Pat

     

    February 2, 2015 reply from Bob Jensen

    Hi Patricia,

    I did not doubt the truth of their budget, but I did think they left a few things out or were ambiguous about some things that need to be clarified by a teacher or students using this budget in a financial literacy course.

    For example, the $1,687 mortgage payment could be the mortgage alone or it could also cover property taxes, homeowner insurance, and mortgage insurance. Take those away from the payment and you are left with a fairly low-sized mortgage.

    In my case the property taxes are $1,000 per month but they are not part of my mortgage payment in these mountains. In fact the property tax payment and the mortgage payment only differ by $200 because I paid over 60% down at the time of purchase. Later I refinanced the remaining mortgage for 3.6% for 30 years. I pay the homeowners insurance separately, and that's not cheap up here.

    Most people cannot afford such a large down payment unless they're retired. In rural mountain and ocean properties the banks typically require larger down payments than in towns. In many instances former owners must finance the homes they sell.

    When I taught at the University of Maine I had an ocean cottage that could not be financed except by an owner. Banks would not loan on shore property in those days. That made interest rates highly variable, because they were part and parcel to sales price negotiations. Owners also typically demand large down payments when they finance sales properties.

    I also wanted a mortgage so I could play the game of having more itemized tax deductions plus invest more in a long-term insured tax-exempt mutual fund that pays only slightly less than by mortgage interest rate. The standard deduction sucks, but you have to have a sizable amount of itemized deductions to cover the minimum threshold for itemized deductions..

    I could pay the mortgage off any time, but I don't want to due to a tax strategy that might be debated by students in a financial literacy course. That's why I suggest having students debate alternate tax strategies at the same time they are discussing household budgeting.

    Having a deep water well makes me not concerned about the cost of water usage. Wells only get expensive when you have to replace the well and or the pressure tank and pump. Two of my neighbors had to replace their wells, and it cost each of them thousands of dollars.

    With a well also comes a septic system. The risk here is having to replace the drain fields for broken tiles. That expense depends a lot on having sufficiently high ground for another field. You can't put a new drain field over an old drain field or in low land that does not drain well from rain and snow melt.

    A B&B down the road is having all sorts of troubles finding a suitable place for a new drain field. The small hotel has been empty for over a year in part because of this problem and the need for a new well.

    In San Antonio you could get housing relatively close to Trinity University for less than $200,000 but most faculty who do so either do not have children or send their children to private schools (which is really expensive). Also crime risks are higher near campus relative to most outer northern parts of the city. By higher crime risk I mean that I don't recommend walking near campus at night and having to have high quality home security systems.

    Trinity has very safe and well lighted walking, jogging, and biking trails on campus that are heavily patrolled by officers on bicycles. These trails are used a lot by neighbors not affiliated with the University. It's a public service.

    Thanks for your thoughts,
    Bob

     


    From the CPA Newsletter on September 3, 2014

    How retirement planning has changed since ERISA was enacted
    http://r.smartbrief.com/resp/gbsdBYbWhBCJbSoSCidKtxCicNRJcg?format=standard
    The Employee Retirement Income Security Act was enacted in 1974 in response to some much publicized failures of private defined benefit (or pension) plans. Rebecca Miller, CPA, Robert Lavenberg, CPA, J.D., and Ian MacKay, CPA, CGMA, mark ERISA's 40th anniversary with a look back at the challenges ERISA was originally intended to address and the issues facing retirees now and in the future. Journal of Accountancy print issue (9/2014)

    Bob Jensen's threads on pension accounting ---
    http://faculty.trinity.edu/rjensen/Theory02.htm#Pensions

     


    Fees = Transactions Costs (when buying or selling shares) plus Fund Management Fees (paid annually to professionals who manage your portfolio like the managers at TIAA/CREF, Fidelity, Vanguard, etc.). manage your retirement funds.

    Taxes = Capital Gains Taxes (that apply even on retirement funds like CREF when you make eventual withdrawals). Note that capital gains taxes must be paid by your estate on the balances left in your retirement funds. Most of us won't get hit with estate taxes (due to high estate tax exemptions), but we all get hit with capital gains taxes on the retirement funds and farms we leave behind for heirs.

    Inflation = Loss in Buying Power of Saving Dear Money That Turns Into Cheap Money (even under your mattress)
    The government is now misleading us about inflation by taking price increases for food and fuel out of its reported  inflation index so you think that your dollars are still dear when they are cheap in terms of things that you buy day-by-day. Economists are whores for politicians. Government deficit spending and obligations for $100 trillion in unfunded entitlements (like Medicare and Medicaid) make inflation the biggest worry of the three diseases on retirement savings --- fees, taxes, and inflation.

    "Here's How Little You Earn On Stocks After You Pay The Man, Uncle Sam, And The Invisible Hand," by Myles Udland, Business Insider, August 29, 2014 ---
    http://www.businessinsider.com/thornburgs-real-real-equity-returns-2014-8

    Fees, taxes, and even inflation just kill your investment returns.

    A Thornburg Investment Management study of "real, real returns," which was alerted to us by Cullen Roche at Pragmatic Capitalism, shows how various costs eat into your stock market returns. 

    Real, real returns take into account expenses (the man), taxes (Uncle Sam), and inflation (the invisible hand).

    Thornburg's study notes that "nominal returns are a misleading driver of an investor's investment and asset-allocation planning... because they are significantly eroded by taxes, expenses and inflation." The risk then, as Thornburg sees it, is that a failure to understand real, real returns could lead to investment decisions that miss potential diversification opportunities. 

    This chart from Thornburg shows how the annualized nominal return of $100 invested in the S&P 500 between 1983 and 2013 is about 11%, making that investment worth $2,346.

    However, on a real, real basis that investment returns 6%, making it worth just $570.

    A pretty stark difference between expectations and reality.

    Jensen Comment
    There are ways of partly beating the tax man by investing a portion of your retirement funds in a tax-exempt mutual fund that holds bonds of school districts, towns, cities, counties, and states. However, I say "partly beats" in the sense that value changes in those funds are subject to capital gains taxes even if the interest on those bonds that builds up your savings are not taxed while your earn that interest or when you withdraw that interest. A second  drawback is that there is relatively more risk in investing in a given tax-free municipal bond versus a taxable high-grade corporate bond. But huge diversified tax-free mutual funds like those of Fidelity and Vanguard. A third drawback in theory is that tax-free bonds should earn less interest than corporate bonds. This is not always the case in this era of stupid quantitative easing by the Federal Reserve that keeps interest rates on CDs and high-grade corporate bonds close to zero. Tax-free interest rates have held up batter in this idiotic era of quantitative easing since the crash of 2007.

    Remember that higher return investments also carry higher financial risks beyond the savings killers of fees, taxes, and inflation. For example land investments have less inflation risks but are subject to many other financial risks. For example, think of paying a million dollars for an Iowa farm that sold ten years ago $500,000 and doubled in value because of the corn ethanol government mandate for gasoline. The added financial risk for your new farm is that one day soon the government will come to its senses and remove the ethanol mandate for fuel, thereby leaving the corn for cows and hogs. Your million dollar farm may plunge in value --- thus the added investment risk beyond the retirement savings killers of fees, taxes, and inflation.


    "The Crushingly Expensive Mistake Killing Your Retirement:   401(k) fees are costing you hundreds of thousands of dollars over your lifetime," by Matthew O'Brien, The Atlantic, February 15, 2014 ---
    http://www.theatlantic.com/business/archive/2014/02/the-crushingly-expensive-mistake-killing-your-retirement/283866/

    Jensen Comment
    Investors should probably question whether they need to pay a financial advisor on top of the unavoidable expenses of managing a mutual fund. Investors should also seek out lower cost fund management funds such as Fidelity, Vanguard, and TIAA/CREF. Most of the more expensive funds are delivering addedreturns that justify the added costs unless they have taken you into financial risks you don't understand.

    The big funds offer a lot of free advising services that you should investigate before running down to a personal advisor in a glitzy office building.


    "5 Little-Known Ways To Save Money On Amazon ," by Grayson Bell, Debt Roundup via Business Insider, August  29, 2014 ---
    http://www.businessinsider.com/ways-to-save-money-on-amazon-2014-8

    Jensen Comment
    If you are an active buyer like me on Amazon it probably pays to become a Prime member.

    One advantage of living in the boon docks is home delivery when you're not at home. I know the rural mail carrier (Mary), the UPS driver (Joe), and the FedEx driver all by name. They leave the deliveries in our unlocked garage in rain, snow, or shine. When I lived in San Antonio I would've not dared to leave our garage unlocked. City living is just more scary and a hassle in many other ways.

    Don't forget to use your accumulated payment credits on Amazon. Amazon makes it really easy to use those points when making a payment.


    "How to Choose a Charity Wisely," by John F. Wasik, The New York Times, November 7, 2013 ---
    http://www.nytimes.com/2013/11/08/giving/how-to-choose-a-charity-wisely.html?ref=giving&pagewanted=all&_r=0

    DONATING to charities this time of year used to be relatively efficient and painless. After watching the Macy’s Thanksgiving Day Parade, you plunked some money into a Salvation Army bucket, wrote some checks, contributed some household items and were done.

    Yet with charities increasingly involved in awareness campaigns, complex networks of cause marketing and often exorbitant overhead, donating to the most effective charity has never been more challenging.

    If you are a discriminating giver, you will need a set of guidelines that can tell you if your donation will mostly be spent on a charity’s mission and not peripheral activities. These days you have to use your head far more than your heart to see that your charitable dollars are well spent on causes you care about.

    There are services and strategies that you can use to make an informed decision. Most of them can help you determine if your dollars will reach the charity’s “mission” — and whether a nonprofit organization is effective in what it is striving to do.

    Charities are already witnessing greater selectivity among donors, probably driven by the pinch of a sluggish economy. According to The Chronicle of Philanthropy, a trade newspaper for the nonprofit sector, donations to the top 400 fund-raising charities are slowing this year after gaining 4 percent in 2012. Last year, the top nonprofits took in about $81 billion.

    Although such things are hard to measure, it is possible that donors have become more sophisticated in their giving as useful information on charities has become more detailed. Yet it is easy to get distracted by ubiquitous causes that blanket every corner of society. Herewith, a guide to navigating the thicket.

    The Major Services

    One of the first stops in searching for charities is GuideStar, which contains records from 1.8 million nonprofits registered with the Internal Revenue Service.

    The free component of the GuideStar website provides access to each organization’s Form 990, the basic I.R.S. filing document for nonprofits. That is useful on the front end if you want basic information on a charity’s income, spending, mission and executive salaries.

    As with the other services, you can also pay for “premium” services from GuideStar that provide more financial analysis and access to a nonprofit’s contractors. This would help if you wanted to perform detailed comparisons of charities or to explore their financial ratios or executive compensation in greater depth.

    What GuideStar does not do is give a qualified rating of a charity. It tries to remain neutral and “is not a charity evaluator,” says Lindsay J. K. Nichols, a spokeswoman. For more intensive evaluations, you need to go to the BBB Wise Giving Alliance or Charity Navigator.

    The BBB Wise Giving Alliance, affiliated with the Council of Better Business Bureaus, has free reviews of 1,300 national charities; local BBBs have evaluations on an additional 10,000. The group applies 20 “accountability” standards — governance, oversight, effectiveness and the like — once every two years at no charge to the charities, but it does not explicitly rate them using a star or letter system.

    The alliance will specify if a charity does not meet BBB standards or “did not disclose the requested information.” About 40 percent of the charities evaluated meet all 20 benchmarks; ones that do are designated a “BBB Accredited Charity.”

    Organizations accredited by the alliance can then pay a sliding-scale fee based on their size to obtain a license to use the BBB Charity Seal on websites and fund-raising material. About 60 percent of those qualifying elect to pay the fee for the seal.

    Like GuideStar and Charity Navigator, the alliance cautions against paying too much attention to the percentage spent on nonprogram expenses, also known as the “overhead ratio.”

    The alliance’s approach appears to be more rigorous than the other two services’, although its findings are not compiled into an overall rating. Organizations are deemed “accredited” (met standards), “standards not met,” “unable to verify,” “did not disclose” and “review in progress.”

    Still, the group’s focus on audited financial statements and accountability — it also publishes in-depth newsletter articles on the subject — is a pragmatic way to view a charity’s operations.

    Art Taylor, the alliance’s president, said the group “sees where the charity is at on our 20 standards, which goes to the heart of how a charity functions.”

    To customize a search and get charity-specific ratings, Charity Navigator, which evaluates about 7,000 nonprofits, has an easy-to-use interface to find charities that match your interests.

    Focusing on financial health, accountability and transparency, Charity Navigator applies an analysis to each of its charities to come up with its star ratings (with four stars as the highest rank). It examines federal Form 990s to see how much of a charity’s income goes toward programs and what percentage is spent on administration and fund-raising. Of the three major services, Charity Navigator is the easiest to use.

    Generally, a good benchmark for a worthwhile charity is having at least 75 percent of income spent on programs, or the nonprofit’s mission, according to Sandra Miniutti, a spokeswoman for Charity Navigator.

    Aside from vetting a charity’s financials, Ms. Miniutti suggests, donors should “understand the charity’s mission — pick just a few, do your research and stick with them over time.”

    Getting Granular

    Want to dig deeper and go beyond the charity information services? You can use them to find basic information on revenue, fund-raising and spending, but you will need to go several layers deeper if you want additional scrutiny. Here are some major issues to consider:

    Have you compared the charity’s Form 990 with its annual report and audited financial statements?

    The 990 can often be opaque and may not tell you particulars on an organization’s specific programs. You may need an accountant or financial adviser acquainted with nonprofit accounting to review these documents; the audited financials contain much more detail.

    Does the charity practice “joint cost allocation?”

    This is accounting jargon for lumping in fund-raising or solicitation with the charity’s program expenses. According to the BBB Wise Giving Alliance, more than 20 percent of nationally solicited charities it reviews employ this practice, which could muddy the waters in gauging how much is really being spent on the charity’s mission. To get a clearer picture, you will need to identify the charity’s primary purpose. If it is mainly a grass-roots lobbying or public awareness organization (which means you may not be able to deduct your donation), then joint cost allocation may make sense. If it devotes its efforts to financing research, then the allocation may be a red flag.

    How does the charity evaluate its effectiveness?

    You should be able to see some examples in its annual reports. Also, ask the charity directly about its successes. Does the organization use independent auditors to benchmark its performance? Where has it failed? A transparent charity should provide this information along with progress reports.

    Eric Friedman, author of “Reinventing Philanthropy” (Potomac Books, 2013), says charities that cannot gauge their effectiveness through benchmarks “may have effective programs, but it’s hard for donors to understand how effective or compare them to other options. I’ve stopped focusing on financial measures, which can be misleading.”

    Is the mission supported by academic research?

    Organizations may be funding ineffective ways of addressing their mission. A boutique charity information service like GiveWell recommends only three organizations a year out of the hundreds it has considered since its founding in 2007. GiveWell performs extensive research to show that recommended charities are “proven, cost-effective, scalable and transparent,” said Alexander Berger, its senior research analyst. “Because we’re aiming to find the best giving opportunities possible — not to rate every charity — we don’t research charities that are unlikely to excel on our criteria.”

    Watch out for red flags.

    Because nonprofit accounting and reporting can be incomplete, suspicious activity can be hidden. Daniel Borochoff, president of CharityWatch, formerly known as the American Institute of Philanthropy, rates 600 charities with a grading system from A to F — and takes a watchdog approach that tries to expose nonprofit abuses. “There’s a lot of sneaky reporting going on,” Mr. Borochoff said. He said chicanery could often be found in “gifts in kind,” where donations may be overvalued, or in organizations with emotional appeals — some charities involving animals, children, first responders and veterans. They may be little more than aggressive fund-raising operations that do little for their missions, or funds that are diverted to officers or other purposes.

    Do you need comprehensive advice?

    If you are also concerned about tax or estate planning considerations, it would make sense to work with a wealth manager, estate-planning lawyer or certified financial planner. Many advisers also have insights into nonprofit accounting that can help you vet a charity on a deeper level. Robert J. DiQuollo, chief executive of Brinton Eaton Wealth Advisors in Madison, N.J., said he could scrutinize nonprofit line items like executive salaries and program-related expenses. “We always approach the charity directly,” Mr. DiQuollo said, “to make sure that the charity is spending money on what the donor wants.”

    Is the charity sitting on too much cash?

    You need to know if the charity is putting its cash to good use or reserving it for some other purpose. According to Wise Giving Alliance standards, “the charity’s unrestricted net assets available for use should not be more than three times the size of the past year’s expenses or three times the size of the current year’s budget, whichever is higher.” This is something you may need an experienced accountant to evaluate. The bottom line: As a donor, you need to know if your money will be put to work immediately or sidelined.

    Due Diligence

    ¶ What can you do with these ratings and reams of financial information? Although you can become immersed in nonprofit accounting arcana and employ all of the charity research services, your efforts may still not tell you if a charity is worthwhile.

    Continued in article


    "Five Really Dumb Money Moves Retirees Make:  How to Avoid Ever Having to Say 'I Lost the Nest Egg'," by Tom Lauricella, The Wall Street Journal, February 23, 2014 ---
    http://online.wsj.com/news/articles/SB10001424052702303775504579394930456252714

    After decades of saving for retirement, you never want to end up saying, "I lost the nest egg."

    For most people, retirement savings will need to be carefully tended if they are to last two or three decades, a typical life span after collecting one's final full-time paycheck.

    But there are plenty of mistakes that can be made. Some can deplete that nest egg in one fell swoop, while others can result in a slow bleed that becomes apparent only over time.

    Some missteps to avoid:

    1. Big purchases.

    It's a natural instinct for new retirees to want to kick back and treat themselves following decades of hard work.

    Ronald Myers, an adviser at Associated Financial Consultants in Fort Lauderdale, Fla., talks about clients who see some of their retirement funds as their "YOLO money"—You Only Live Once.

    "I'm the first guy to say go out and enjoy yourself early on—you aren't going to get any healthier," says Mr. Myers. But it's crucial, he says, to avoid blowing a hole in a retirement plan at the get-go. And given the uncertainty of the market, the depth of that hole may not become apparent until much later in life.

    He points to example of a retiree who plans to withdraw $25,000 a year from a $500,000 nest egg starting off by taking $50,000 to buy a boat—two years of income.

    Should that big withdrawal be followed by a market decline, the result could be many years shaved off the time those savings will last.

     

    2. No cushion.

    In retirement, a major, unexpected expense can quickly send a financial plan off the rails. But that doesn't have to happen.

    "I see a lot of people cutting it really close and living paycheck to paycheck, even though they are really paying themselves" out of their savings, says Blair duQuesnay, director of investments at ThirtyNorth Investments in New Orleans.

    The problem comes when an emergency crops up that requires laying out extra cash on short notice. If that outlay requires selling investments in the middle of a market downturn, the retiree could be locking in losses that can't be recovered.

    "It takes planning ahead," says Ms. duQuesnay. Her firm advises clients to keep six months to one year's worth of cash on hand for replenishing that stockpile.

    3. Forgetting common sense.

    Remember: "There's no such thing as a free lunch."

    That's especially the case with investments promising big payoffs with low risk.

    People "have a unique ability to suspend common sense, believing that strangers want to let us in on deals that are too good to be true, which of course, are," says Alan Roth, a financial planner in Colorado Springs, Colo.

    Mr. Roth says there are often telltale signs it's time to hang up the phone on a sales pitch. They include: a sense of urgency ("The deal is only good today!"), using a church or fraternal organization to vouch for its credibility or a play on emotions.

     

    4. Reaching for yield.

    The "no free lunch" risk to a nest egg also applies to investors who have cut back on holdings of relatively safe but low-yielding government bonds and bulked up on riskier investments that offer meatier yields—like high-yielding junk bonds, bank-loan funds or dividend-paying stocks.

    "When you substitute a fixed-income, low-volatility investment for a higher-volatility investment, the risk of a loss of principal in a down market is much higher," says Ms. duQuesnay.

    A simple litmus test for how well that higher-yielding investment will act are returns from during the financial crisis. Bank-loan funds, for example, lost an average of 29.7% in 2008.

     

    5. Letting emotions rule.

    "Acting emotionally in a down market could be mistake No. 1" when it comes to wrecking a nest egg, says Mr. Myers.

    He acknowledges that retirees who need their savings to help pay the bills will feel the pull of reacting to short-term losses. "During retirement, it's behavioral economics on steroids," he says.

    Retirees should build a portfolio that meets their long-term goals and one where they can withstand watching the inevitable downs in the markets that come with the ups.

    To put it another way, says Mr. Roth: "It's dumb to buy high and sell low."

    Jensen Comment
    It's hard to advise future retirees without knowing what they really do enjoy. For example, I think it's dumb to invest in retirement businesses unless you really, really enjoy retirement businesses or really, really need the income from retirement businesses. For example, a widow purchased a three-story house just down the road when she was a widow over 60 years of age. For a while making jewelry to pay for her mortgage payments seemed like a good idea. Now taking her truck and camper all alone to out-of-state jewelry shows has become a drag, but she needs the income in part because revaluations of her home have really clobbered her with higher property taxes in a down market (at least up here). Tax appraisers care more about village and school expenses than what property will realistically sell for up here in the remote White Mountains.

    It's probably a good idea that she invested in her jewelry business, but at her present age it's become more depressing. I don't think she's enjoying her "retirement," especially since she must do most of the house maintenance by herself. Last summer she was on a huge 40-foot extension ladder scraping and painting by herself  almost every sunny day.

    She also splits her own wood to heat that big house. What was her mistake? It was probably a mistake to purchase such a big house without the annual cash flow to cushion the expenses of taxes and maintenance while thinking she would forever enjoy making jewelry and traveling to shows.

    There's also a couple that I know who both retired from the military and invested $2 million in a bed and breakfast (mostly financed with three mortgages). Running a B&B sounded like fun until the reality of cooking breakfast for guests seven days a week became a drag year after year after year. Even with hired maid service, there are endless days of maintaining the grounds, keeping the plumbing working in 26 bathrooms, painting and papering 24 rooms, washing windows, fixing roof leaks, patching an ancient heating system, operating the front desk, dealing with happy and not-so-happy happy guests, and on and on and on. Retirement? What's that? They were more retired while on active duty.

    Then there's a retiree friend down on the highway who purchased a $180,000 motor home hoping to entice a woman friend into marrying him and touring all over North America. She considered the idea for 20 minutes and then said no way. The motor home with less than 500 miles on the odometer sat in his front yard with a "For Sale" sign for over five years (he lives on a state highway where drivers passing by could see the thing year after year). At long last he sold the thing, but I don't want to embarrass him by asking how much he lost on this dream (beside losing his would-be bride). He had 12 nice cabins and land out back that our village took over due to defaulted property tax payments.

    I paid too much for a retirement acreage, but I do enjoy this type isolated rural living. It would be a risk if my health failed and I had to hire everything done around here. However, I'm fortunate to have the retirement cash flow to do so if I must eventually hire everything done. And the outdoor work winter and summer is currently much more enjoyable than boring exercise routines in a gym. If and when I become gaga and have to go into a nursing home my estate will take a huge hit because it's impossible to recover much more than half of what I paid for this property in an up market before the real estate crash.

    However, in spite of contentment with my own retirement, it's important to note that many of those things you dreamed about all your working years may change over the course of your retirement. Firstly, you may lose some of your good health. Secondly, you may lose your spouse that was part of your retirement dreams all those years. And yet at age 65 when you're both in good health it probably would be a bummer moving into an assisted living apartment too soon. You both might quickly become depressed and bored to death in a small apartment if you have good health for the next 10-25 years.

    My own parents started their marriage in the Great Depression and never really got over feeling that saving was much, much more important than consumption. Being an only child I eventually inherited their life savings. But all they while they were retired I argued in vain that they should spend more to enjoy their retirement. But then again if they were spending more to enjoy their retirement they would probably would not have enjoyed their retirement. They were more happy living a very modest life beneath what they could well have afforded. Unlike me they did not enjoy expensive restaurants and hotels. They ordered the cheapest things on menus in small farm town restaurants and pretended those were the selections they enjoyed the most as long as there was a salad bar.

    My mother always said:  "If you're going to buy big, buy black dirt."

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    Question
    Why do so few people going into retirement decide against lifetime fixed annuities?

    Jensen Answer
    In 2006 I opted for TIAA lifetime annuities that pay out a fixed amount of monthly income for as long as my wife and/or I are alive. Other options included variable lifetime annuities (that go up and down with the stock market) and lump-sum withdrawals of cash that we could manage ourselves. Lump-sum withdrawal might have been more attractive if we were already sufficiently wealthy to have retirement needs covered. Then we could have given more away to family and charities. But we were not that wealthy.

    A lifetime annuity works best if you live many years beyond when all your retirement funds are depleted. A lifetime annuity is the gift that keeps on giving.
     

    A lifetime annuity works best if you live many years beyond when all your retirement funds are depleted. A lifetime annuity is the gift that keeps on giving.

    At our ages inflation is less of a risk concern than for younger people who are still investing toward retirement. However, if I were advising a younger person who becomes eligible for a TIAA payout because of a divorce I would stress the inflation risks of a very long-term fixed annuity. A variable annuity becomes a better option depending upon age.

    The huge unexpected benefit from our 2006 TIAA retirement deal was that our fixed monthly annuity income was not affected by the economic crash of 2008 like it would have been with a variable lifetime annuity. Since the stock market eventually recovered such losses in monthly income would have eventually recovered pretty well except for the losses before the stock market bounced back.

    It was just plain luck that I retired in 2006 rather than 2009. The decision of the Federal Reserve to drive interest rates down to nearly zero coupled with the Quantitative Easing program must have made it very difficult for TIAA to offer fixed annuity deals after 2008 like the deal I negotiated in 2006. However, I did not investigate the difference between the monthly annuity amount I negotiated in 2006 with the amount I could have negotiated with TIAA  in 2009.

    Note that interest rates on safe investments like bonds and CDs have not bounced back like the stock market. This is because of the damaging policies of the Federal Reserve on the what used to be safer investments --- safer investments that now return virtually zero. I don't look for safe investments to return much of anything for a long, long time. The Fed has forced investors to take on more financial risks with its low-interest policies that don't don't seriously show signs of change in our troubled unemployment economy.

    There are various other considerations when negotiating a retirement annuity, some of which are discussed by Harvard's Justin Fox in the article below. I listened carefully to the advantages and disadvantages of retirement annuities that the TIAA counselor laid out for me before I signed on the dotted line. One consideration for me was the 10-year grace period in which a declining balance in our retirement fund balance goes into our inheritance estate if Erika and I both die before 2016. After 2016 nothing of this balance goes into our estates and if we live long enough TIAA takes a big hit. However, we felt that we had sufficient outside savings to make our children sufficient bequests if we pass on after 2016. Retirees without much in the way of outside savings might not like this 10-year limit.

    There are also other uncertainties. For example, there can be tax advantages or disadvantages of lump-sum withdrawals at retirement. Investors who feel almost certain that income taxes are going to become much higher in the future might opt for a lump-sum payout. Those that think taxes will be lower are less inclined to opt for the lump-sum payout, although there are other considerations. For example, if I had taken a lump-sum payout I probably would have invested most of the payout in an insured long-term tax exempt mutual fund even though there are ups and downs in the values of such funds --- even though the tax-free cash flows are fairly steady month-to-month.

    I did not cover some of the points mentioned by Justin Fox in the article below.

    Always take advantage of the free investment counseling of your Personnel Department and the companies trying to sell you a retirement annuity. Personally I'm not a big fan of paying for investment advice since there are so many free services from TIAA, Vangard, Fidelity, etc. Professionals in these outfits will talk to you for free.

    "What Do People Have Against Retirement Income?" by Justin Fox, Harvard Business Review Blog, February 25, 2014 ---
    http://blogs.hbr.org/2014/02/what-do-people-have-against-retirement-income/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29&cm_ite=DailyAlert-022614+%281%29&cm_lm=sp%3Arjensen%40trinity.edu&cm_ven=Spop-Email

    Bob Jensen's free investment helpers that may not be worth the price are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelper


    "6 Retirement Accounts You Should Know About (Part2)," by Laura Adams, Money Girl, April 23, 2013, Episode 311 ---
    http://moneygirl.quickanddirtytips.com/retirement-plan-types-pt2.aspx

    Frontline broadcast on "The Retirement Gamble,"April 23, 2013 ---
    http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/
    For details see
    http://www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/retirement-gamble/the-retirement-gamble-facing-us-all/

    If you’ve been watching any commercial television lately, you are well aware that the financial services industry is very busy running expensive ads imploring us to worry about our retirement futures. Open a new account today, they say.

    They are not wrong that we should be doing something: America is facing a retirement crisis. One in three Americans has no retirement savings at all. One in two reports that they can’t save enough. On top of that, we are living longer, and health care costs, as we all know, are increasing.

    But, as I found when investigating the retirement planning and mutual funds industries in The Retirement Gamble, which airs tonight on FRONTLINE, those advertisements are imploring us to start saving for one simple reason. Retirement is big business — and very profitable. It doesn’t take a genius to figure out that the more we save into the industry’s financial products, the more money they make in fees and commissions trading our hard-earned cash. And as long as they don’t run away with our money or invest it in a Ponzi scheme, they have little in the way of accountability to us when something goes wrong. And even then it can be hard to fight back.

    Big banks, brokerages, insurance companies and other financial service providers operate under something called a suitability standard — which says they don’t have to give you the best advice, just advice that isn’t too egregiously terrible.

    Let’s say you sit down with an adviser at your brokerage or bank and ask for some advice on how you should allocate your retirement savings, or which funds you might want to choose for your IRA.

    You’ll get lots of advice, but chances are it won’t be worth much. Eighty five percent of all financial advisers and financial planners are really just brokers or salesman. Their incentive is to sell you a product that makes them a higher commission, not necessarily a product that maximizes your chances of saving more. Only 15 percent of advisers are “fiduciaries” — advisers who by law must operate with your best interests in mind.

    Last year, the Obama administration proposed a rule to mandate that all financial advisers, financial planners and other assorted financial wizards would have to adopt a fiduciary standard when it came to employee retirement accounts such as your 401(k) or IRA account. The financial services industry, which today manages something upwards of $10 trillion of our retirement nest eggs, thought this was a bad idea and pushed back hard. Scores of their protest letters poured into the U.S. Labor Department, the branch of our government responsible for regulating employee retirement accounts.

    Congress, too, was hit with a furious lobbying campaign. This would be way too expensive, the industry said; if we have to provide such a standard of service, we will either have to pack up and find another business line, or have to pass the increased costs on to our customers. The Obama administration pulled their proposal last fall.

    How would a new fiduciary rule change things? Chances are you would be sold less expensive products, not only in your IRA accounts but inside your company 401(k) as well. It’s all about fees. While reporting on retirement plans for FRONTLINE, nothing has been more surprising to me than the corrosive effect of fees on our retirement savings.

    It’s this simple: Fund fees can erode as much as half or more of your prospective gains.

    For the sake of dramatizing the point, John Bogle, founder of Vanguard, the world’s largest mutual fund company and pioneer of low-cost index funds, gave me a startling example while we were filming. Assume you are invested in a mutual fund, he says, with a gross return of 7 percent, but that the mutual fund charges you an annual fee of 2 percent.

    Over a 50-year investing lifetime, that little 2 percent fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming.

    In short, fees matter. So what can you do? You aren’t going to find a fund that invests your money for free, but experts say you can come close by buying index funds. Their fees can be a tenth of what the average mutual funds charges. And over time, in bull and bear markets, on average, index funds perform better than their more expensive actively managed fund cousins. This is no secret to anyone who is paying attention.

    So why aren’t our trusted financial advisers and those ads telling us to buy index funds? Why do some 401(k) plans not even offer them on their menus?

    It’s because even though an index fund might be a better option for you and me, a broker operating under a suitability standard has no incentive to sell it to us. He or she will make higher commissions from options that have higher fees.

    Sadly, a recent AARP study reported that 70 percent of mutual fund savers were not even aware that they were paying any fees at all.

    Continued in article

    Dan Stone's summary of the above Frontline show:

    Enjoyed it though didn't find much new here. Basic messages:

    1. index funds are cheaper and, in the long run, preferred (Jack Bogle)
    2. managed funds are a scam to generate fees for the mutual fund industry
    (which some would certainly debate)
    3. most Americans don't have enough for retirement
    4. mutual funds make it hard to determine their fees
    5. the financial services industry, through massive donations, prevents any
    attempts to increase transparency in the financial services industry.

    I've bought Pound Foolish, after hearing an interview with its author, but haven't
    started reading it yet

    (http://www.amazon.com/Pound-Foolish-Exposing-
    Personal-Industry/dp/1591844894
    )

    Dan Stone

    Bob Jensen's personal finance helpers (but not his advice which is free and not worth the money) ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Remember that my financial advice is free and probably not worth the money. After selling the family farm in Iowa and my home in San Antonio, most of my liquid savings is invested in an enormous  Vanguard Long-Term "Guaranteed" Tax Exempt Fund.
    "Apocalypse, Not Now, for Municipal Bonds," by Randall W. Forsyth, Barron's, April 23, 2013 ---
    http://online.barrons.com/article/SB50001424052748703889404578438641361922074.html?mod=BOL_da_udwsd#articleTabs_article%3D0
    $573.2 million in Munis defaulted in 2013 (0.6% of the $3.7 trillion outstanding) versus 1.01% for 2013 .
    My investment returns were very satisfactory and stable throughout the economic crisis that sent stocks soaring.
    At my age I care more about steady annual tax-exempt cash flows rather than valuation ups and downs and hyper inflation risk.
    When I need cash for something big like a new tractor I simply write a Vanguard check. I love the liquidity of this fund.
    Fortunately, however, my TIAA lifetime annuities cover virtually all of our living expenses, including payments on a large mortgage.
    I could write a Vanguard check to pay off the mortgage, but there are tax advantages of not doing so unless unlikely tax reform clobbers tax exempt interest income.


    Sadly, more than half of today’s U.S. retirees will rely on Social Security for more than 50% of their total income, leaving them with the painful choice of either a rather severe drop in living standards, or else risking prematurely exhausting savings and being at the mercy of children or relatives.
    "Latest DALBAR report underscores poor long-term performance of individual investors," The Mathematical Investor, July 2014 ---
    http://www.financial-math.org/blog/2014/05/latest-dalbar-report-underscores-poor-long-term-performance-of-individual-investors/

    As we emphasized in a December 2013 Mathematical Investor blog, individual investors are not very well equipped, and certainly not very effective, in managing their own investment portfolios.

    This is unfortunate, because fewer workers than in the past, particularly in the U.S., are covered by a “defined-benefit” retirement system, namely a pension that guarantees a certain proportion of one’s income at retirement, based on the number of years in service, in perpetuity until one’s death. Instead, the majority of the growing army of American baby boomers (according to the Population Reference Bureau, 76.4 million Americans were born in the period 1946-1966) have to rely on 401K systems or the equivalent, where they must contribute (along with matching contributions, in many cases, by employers) to an investment fund that they have either partial or full discretion to manage. Indeed, more than any generation before, the present generation of workers will be personally responsible for their future financial well-being.

    Other nations are facing similar challenges. In Canada, for instance, their version of “social security” provides only about half what it does in the U.S. In Australia, large employers such as universities typically place roughly 17% of a worker’s income into a “superannuation fund”. In New Zealand, this fraction is 7%. In Canada, pension savings are taxed as they are withdrawn, whereas in Australia superannuation funds are not taxed provided they are withdrawn as annuities. In continental Europe, mandatory retirement rules still exist, while in the English-speaking world, such rules, mercifully, are largely a thing of the past.

    How well are today’s workers doing in saving for retirement? Sadly, more than half of today’s U.S. retirees will rely on Social Security for more than 50% of their total income, leaving them with the painful choice of either a rather severe drop in living standards, or else risking prematurely exhausting savings and being at the mercy of children or relatives. Many should at least lower their expectations for life after retirement, but there is little evidence that most workers nearing retirement are facing this unpleasant reality.

    Of even greater concern is the level of skill with which most individual investors manage their nest eggs. We mentioned in our earlier Mathematical Investor blog a report known as the Quantitative Analysis of Investor Behavior, produced by the DALBAR organization, which attempts to measure short- and long-term success by individual investors. In that blog, we cited results from the 2012 report.

    Now the latest (2014) edition of this report is available. So how well are today’s investors doing? The results are even more discouraging than in previous reports. The report notes that:

    1. Over the past 20 years, “equity fund” investors achieved an average 5.02% annualized return, which is 4.2% less than the 9.22% that he/she could have achieved by simply investing funds in an S&P500 index-tracking fund. This gap expanded in 2013, for only the third time in ten years.
    2. Over the bull market of the past three years, “equity fund” investors achieved only an average 10.87% annual return, lagging the average annual S&P500 return (16.18%) by 5.31%.
    3. Investors in “asset allocation funds” did even more poorly. Their 20-year average annual return was only 2.53%, lagging the S&P500 index (9.22% per annum) by 6.69% per annum.
    4. Investors in “fixed income funds” did more poorly still. Their 20-year average annual return was an abysmal 0.71%, fully 8.51% less than the S&P500 index, and 5.03% per annum less than the Barclay’s Aggregate Bond Index (5.74% per annum) over this time.
    5. Not surprisingly, investors show little evidence of skill in “market timing.” The DALBAR report notes that in the six best months of 2013, when the market was up sharply, there was no evidence that individual investors moved more than average amounts into equity funds.

    As MarketWatch commentator Paul Merriman observes, the typical investor’s emotion-based trading in and out of securities based on fear and knee-jerk reaction to crises is counter-productive to long-term success:

    Every year the conclusion [of the DALBAR report] is the same: On average, investors earn less than mutual fund performance figures imply. Sometimes they earn much less. … One conclusion: No matter whether the market is booming or busting, “Investor results are more dependent on investor behavior than on fund performance.” Investors who buy and hang on are consistently more successful than those who move in and out of the markets.

    In our previous Mathematical Investor blog, we emphasized how the typical individual investor is relatively poorly educated and informed about making personal financial decisions. As the U.S. Securities and Exchange Commission noted in a 2012 report, “investors have a weak grasp of elementary financial concepts and lack critical knowledge of ways to avoid investment fraud.”

    These experiences are exacerbated by the larger plague of disappointing performance in mathematics and science education. This was underscored today with the release of the latest results for U.S. 12th graders on the National Assessment of Educational Progress (NAEP) test. The overall score of 153 in mathematics is identical to that from 2009, and is only slightly higher than the 150 score in 2005, in spite of years of effort and billions of dollars spent to improve K-12 education.

    The DALBAR report concludes

    Attempts to correct irrational investor behavior through education have proved to be futile. The belief that investors will make prudent decisions after education and disclosure has been totally discredited. Instead of teaching, financial professionals should look to implement practices that influence the investor’s focus and expectations in ways that lead to more prudent investment decisions.

    Similarly, Louis S. Harvey, President of DALBAR, argues that

    It is now past the time for the investment community and its regulators to understand that the principle of educating uninterested investors about the complexities of investing is unproductive. … We need a fundamental change that transforms investment thinking into meaningful decisions and choices for retail investors.

    [Added 12 May 2014: A column by Chuck Jaffe summarizes a study by Natixis Global Asset Management on why investors often make poor financial decisions.]


    "The Science Behind Social Security Benefits Calculations," by Theodore J. Sarenski, AICPA, October 20, 2014 ---
    http://blog.aicpa.org/2014/10/the-science-behind-social-security-benefits-calculations.html#sthash.t77ImEv5.i4UykguJ.dpuf

    While the Social Security Administration calculates Social Security benefits, it is your due diligence to know the basics so that you can understand how an additional year of earning will affect your clients’ projected benefit.

    Continued in article-

    Jensen Comment
    This is more about understanding the regulations than science. The regulations are a bit complicated.


    "Offering a Helping Hand on Retirement Savings:  New Website Provides Investment Novices Free Portfolio Recommendations; Asking Questions of the CEO," by Katherine Boehret, The Wall Street Journal, June 5, 2012 ---
    http://professional.wsj.com/article/SB10001424052702303506404577448503218010424.html

    How often do you tinker with your retirement savings? Many people think about this when starting a job or opening a 401(k), but sometimes not again until they are ready to retire. According to financial advisers, that's too late.

    This week, I forced myself to look at accounts I rarely monitor as I tested FutureAdvisor.com, a website founded by two former Microsoft engineers who are also a registered investment adviser and chartered financial analyst, respectively. They wanted to create an easy way for people to manage their retirement savings, primarily using index funds, and they based the site's suggestions on what they consider to be the best practices in the industry and in academia.

    FutureAdvisor, which has no ads, bills itself as a free alternative to paying a lot for financial advice from professionals, who often charge a 1% annual fee or work on commission. Many big investment firms offer retirement-savings services, but these generally don't offer step-by-step advice for an investor's complete portfolio. FutureAdvisor expects to make money when it introduces later this year an optional premium service, which will charge an annual fee of less than 0.25% of your assets to rebalance and maintain your portfolio, automatically. It says suggestions offered on the site are made solely on merit, with no kickbacks or commissions to FutureAdvisor.

    The site differs from budgeting sites like Mint.com that don't specialize in retirement savings. Instead, Mint makes money through recommendations for users, like which credit cards carry lower fees.

    I'm not a financial expert; rather, I looked at FutureAdvisor through the lens of an average person who might want to use the site. Its investment philosophy may not be right for everybody.

    FutureAdvisor is easy to use and walks users through a set of simple steps. There's no asset minimum to use the site, though people who are already in retirement can't use it. Pop-up explanations and options to submit questions to the site's CEO and co-founder, a registered investment adviser, are available as you go.

    For security purposes, FutureAdvisor uses bank-level, 128-bit SSL (Secure Socket Layer) encryption for all communications. It can't move money or make transactions; instead, people do this by clicking on links that send them to their financial institutions where they may pay a fee for certain transactions. Login information is never stored on the website; rather, it's handled by partner company Yodlee.

    To get started with FutureAdvisor, I entered my email and a password to create an account and then answered questions about myself. These included birthday, current annual income, desired retirement age, desired retirement income, age when I started consistently saving for retirement, approximate value of my retirement investments and marital status. Thankfully, messages that say, "What is this?" appear beside each question, explaining why it's asked.

    Next, you enter the names of brokerage firms that handle your accounts, like Fidelity for a 401(k) or T. Rowe Price for a Roth IRA. If you don't already have online accounts with each of these firms, you must set up accounts on their websites so you can return to FutureAdvisor, enter your username and password and access your data.

    FutureAdvisor recognized a lot of different brokerage firms that I searched for, and this week it added Thrift Savings Plans, or TSPs, which are used by government employees, including military personnel. If a brokerage firm isn't on the site, you can suggest it in a feedback box. I did this, and my requested firm was added within hours.

    When personal questions are answered and brokerage-firm information is retrieved, FutureAdvisor asks you to choose a conservative, moderate or aggressive approach with explanations of each. I chose an aggressive option because of my relatively young age. Various charts filled the screen showing recommendations for my stock/bond split, equity style, diversification split and glide style. Terms like this may lose average users, but brief explanations beside them helped, and I read a References and Citations pop-up menu filled with sources from which the advice was generated.

    The most helpful section of the site showed recommendations for my portfolio.

    Continued in article

    FutureAdvisor --- https://www.futureadvisor.com/

     


  • "(More) Clarity on Adjunct Hours (including healthcare insurance guidance)," by Doug Lederman, Inside Higher Ed, February 11, 2014 ---
    http://www.insidehighered.com/news/2014/02/11/irs-guidance-health-care-law-clarifies-formula-counting-adjunct-hours 

    The Obama administration on Monday released its long-awaited final guidance on how colleges should calculate the hours of adjunct instructors and student workers for purposes of the new federal mandate that employers provide health insurance to those who work more than 30 hours a week.

    The upshot of the complicated regulation from the Treasury Department and the Internal Revenue Service:

    • On adjuncts, colleges will be considered on solid ground if they credit instructors for 1 ¼ hours of preparation time for each hour they spend in the classroom, and instructors should be credited for any time they spend in office hours or other required meeting time.
    • On student workers, the IRS opted to exclude work-study employment from any count of work hours, but the administration declined to provide an exemption for student workers over all. As a result, colleges and universities will be required to provide health insurance to teaching and research assistants who work more than 30 hours a week.

    Adjunct Hours

    The issues of how to count the hours of part-time instructors and student workers have consumed college officials and faculty groups for much of the last 18 months, ever since it became clear that the Affordable Care Act definition of a full-time employee as working 30 hours or more a week was leading some colleges to limit the hours of adjunct faculty members, so they fell short of the 30-hour mark.

    All that the government said in its initial January 2013 guidance about the employer mandate under the health care law was that colleges needed to use "reasonable" methods to count adjuncts' hours.

    In federal testimony and at conferences, college administrators and faculty advocates have debated the appropriate definition of "reasonable," with a focus on calculating the time that instructors spend on their jobs beyond their actual hours in the classroom. The American Council on Education, higher education's umbrella association and main lobbying group, proposed a ratio of one hour of outside time for each classroom hour, while many faculty advocates have pushed for a ratio of 2:1 or more.

    In its new regulation, published as part of a complex 227-page final rule in today's Federal Register, the government said that it would be too complex to count actual hours, and it rejected proposals to treat instructors as full time only if they were assigned course loads equivalent or close to those of full-time instructors at their institutions.

    The administration continued to say that given the "wide variation of work patterns, duties, and circumstances" at different colleges, institutions should continue to have a good deal of flexibility in defining what counts as "reasonable."

    But in the "interest of predictability and ease of administration in crediting hours of service for purposes" of the health care law, the agencies said, the regulation establishes as "one (but not the only)" reasonable definition a count of 2.25 hours of work for each classroom hour taught. "[I]n addition to crediting an hour of service for each hour teaching in the classroom, this method would credit an additional 1 ¼ hours service" for "related tasks such as class preparation and grading of examinations or papers."

    Separately, instructors should also be credited with an hour of service for each additional hour they spend outside of the classroom on duties they are "required to perform (such as required office hours or required attendance at faculty meetings," the regulation states.

    The guidance states that the ratio -- which would essentially serve as a "safe harbor" under which institutions can qualify under the law -- "may be relied upon at least through the end of 2015."

    By choosing a ratio of 1 ¼ hours of additional service for each classroom hour, the government comes slightly higher than the 1:1 ratio that the higher education associations sought, and quite a bit lower than the ratio of 2:1 or higher promoted by many faculty advocates.

    David S. Baime, vice president for government relations and research at the American Association of Community Colleges, praised administration officials for paying "very close attention to the institutional and financial realities that our colleges are facing." He said community colleges appreciated both the continued flexibility and the setting of a safe harbor under which, in the association's initial analysis, "the vast majority of our adjunct faculty, under currernt teaching loads, would not be qualifying" for health insurance, Baime said.

    Maria Maisto, president and executive director of New Faculty Majority, said she, too, appreciated that the administration had left lots of room for flexibility, which she hoped would "force a lot of really interesting conversations" on campuses. "I think most people would agree that it is reasonable for employers to actually talk to and involve employees in thinking about how those workers can, and do, perform their work most effectively, and not to simply mandate from above how that work is understood and performed," she added.

    Maisto said she was also pleased that the administration appeared to have set the floor for a "reasonable" ratio above the lower 1:1 ratio that the college associations were suggesting.

    She envisioned a good deal of confusion on the provision granting an hour of time for all required non-teaching activities, however, noting that her own contract at Cuyahoga Community College requires her to participate in professional development and to respond to students' questions and requests on an "as-needed basis." "How does this regulation account for requirements like that?" she wondered.

    Student Workers

    The adjunct issue has received most of the higher education-related attention about the employer mandate, but the final regulations have significant implications for campuses that employ significant numbers of undergraduate and graduate students, too.

    Higher education groups had urged the administration to exempt student workers altogether from the employer mandate, given that many of them would be covered under the health care law's policies governing student health plans and coverage for those up to age 26 on their parents' policies. The groups also requested an exemption for students involved in work study programs.

    The updated guidance grants the latter exemption for hours of work study, given, it states, that "the federal work study program, as a federally subsidized financial aid program, is distinct from traditional employment in that its primary purpose is to advance education."

    But all other student work for an educational organization must be counted as hours of service for purposes of the health care mandate, Treasury and IRS said.

    Steven Bloom, director of federal relations at the American Council on Education, said higher ed groups thought it made sense to exempt graduate student workers, given that their work as teaching assistants and lab workers is generally treated as part of their education under the Fair Labor Standards Act. He said the new guidance is likely to force institutions that employ graduate students as TAs or research assistants -- and don't currently offer them health insurance as part of their graduate student packages -- to start counting their hours.

    The guidance also includes a potentially confounding approach to students who work as interns. The new regulation exempts work conducted by interns as hours of service under the health care employer mandate -- but only "to the extent that the student does not receive, and is not entitled to, payment in connection with those hours."

    Continued in article

    Jensen Question
    How should a university account for a doctoral student who happens to teach 33 hours one semester and works less than 30 hours in all other semesters of the doctoral program? Is the university required to provide health coverage for zero, one, or more years while the student is a full time student in the doctoral program? I assume the university must provide health insurance for one year, but I'm no authority on this issue.

    There also is a huge difference in hours of work required for teaching. A doctoral student who only teaches recitation sections under a professor who provides the lecture sections, writes the syllabus, writes the examinations, and essentially owns a course versus a doctoral student who owns only section of governmental accounting with no supervision from a senior instructor.

    When I was Chair of the Accounting Department at Florida State University, the wife (Debbie) of one of our doctoral students (Chuck Mulford) had total control of the lectures and 33 recitation sections of basic accounting each semester where most of the recitation "instructors" were accounting doctoral students. Debbie had her CPA license and a masters degree, but she was not a doctoral student. She was very good at this job. The recitation instructors had almost no preparation time and did not design or grade the examinations. They did not own all 33 sections like Debbie owned all 33 sections. It would be a bit unfair to give the recitation instructors as much pay for preparation as the selected doctoral students who taught more advanced courses and essentially owned those courses in terms of classroom preparation and examinations.

    Bob Jensen's threads on controversies in higher education (including use of adjuncts) ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm

     


  • "The Law About Debt Collections Harassment," by Laura Adams, Money Girl, May 21, 2013 ---
    http://moneygirl.quickanddirtytips.com/debt-collections-harassment.aspx


    Individual Retirement Account --- https://en.wikipedia.org/wiki/Individual_retirement_account

    Deciding Between a Roth vs. Traditional IRA in 2018---
    https://money.usnews.com/money/retirement/articles/deciding-between-a-roth-vs-traditional-ira

     

    Teaching Case
    From The Wall Street Journal Accounting Weekly Review on January 10, 2014

    Delaying IRA Contributions Can Be Costly
    by: Jonnelle Marte
    Jan 05, 2014
    Click here to view the full article on WSJ.com
     

    TOPICS: Individual Income Taxation, Individual Taxation, IRA Contributions, IRAs

    SUMMARY: Taxpayers can contribute up to $5,500 each year to individual retirement accounts--$6,500 for those over 50. "An analysis of traditional and Roth IRA contributions made by Vanguard Group customers for the 2007 through 2012 tax years showed that, on average, 41% of the dollars contributed to IRAs for any given tax year are invested between January and April of the following year. Half of those dollars are contributed in the first half of April...and only 10% of dollars are contributed in January of the corresponding tax year...." A time value of money comparison in the article shows that this habit-which most advisers think stems from investor laziness-can cost a substantial difference in final savings available at retirement

    CLASSROOM APPLICATION: The article may be used in a class on personal taxes or when covering topics in the time value of money.

    QUESTIONS: 
    1. (Advanced) What is an individual retirement account? A Roth IRA?

    2. (Advanced) According to tax law, when are taxpayers allowed to make IRA deductions?

    3. (Introductory) According to findings by Vangauard Group from analyzing their customer deposits to IRA accounts, when do most taxpayers make IRA contributions?
     

    Reviewed By: Judy Beckman, University of Rhode Island"

    "Delaying IRA Contributions Can Be Costly," by Jonnelle Marte, The Wall Street Journal, January 5, 2014 ---
    http://online.wsj.com/news/articles/SB10001424052702304477704579256610849790176?mod=djem_jiewr_AC_domainid

    It's a new year. And that means it's time for investors to do what they could have done last year—but didn't.

    Namely: make contributions to their 2013 individual retirement accounts. Indeed, an analysis of traditional and Roth IRA contributions made by Vanguard Group customers for the 2007 through 2012 tax years showed that, on average, 41% of the dollars contributed to IRAs for any given tax year are invested between January and April of the following year. Half of those dollars are contributed in the first half of April—the final weeks when contributions for the previous year can be made.

    The study found only 10% of dollars are contributed in January of the corresponding tax year, the earliest month contributions can be made. "We are trying to encourage people to change their way of thinking and think about it sooner," says Maria Bruno, a senior investment analyst with Vanguard Investment Strategy Group. Valid Excuse?

    There are legitimate reasons that big dollars flow into IRAs near the tax-filing deadline. At that point, taxpayers typically know whether their income for the prior year was low enough to qualify for deductible contributions, and can see by exactly how much a contribution would lower their tax bill.

    But some advisers say the habit is one of the ultimate examples of investor laziness, nearly on par with not maxing out the company match for 401(k) contributions or not seeking retirement advice until after retirement.

    "As humans we naturally procrastinate," says Mackey McNeill, an accountant and financial adviser in Bellevue, Ky.

    Procrastination can be costly. The problem, advisers and retirement consultants say, is that investors who make IRA contributions at the last moment miss out on 16 months of potential gains (from January of one year until April of the following year), as well as the chance for those gains to compound over many years. Even if two investors contribute the same amount of money over the years, the person who starts earlier could end up with significantly more savings down the line.

    Compare a saver who makes the maximum annual IRA contribution of $5,500 for those under age 50 in January of each year with another saver who contributes the same amount each April 15 of the following year. Over 31 years, assuming the money is invested in a moderate portfolio earning a hypothetical 7% annual return, the saver who makes full contributions in January could end up with $83,000 in additional savings after 30 years, even though both investors contributed equal amounts—about $170,500—overall, according to an analysis by Ms. McNeill. Tax Burden

    Another downside to putting off contributions: It could add to your tax bills. Money in a taxable account over that 16-month period may incur gains that would have been deferred in an IRA, says Ed Slott, an accountant and founder of IRAHelp.com, a website for retirement savers.

    Some pros say investors' excuses for not contributing as early as possible are looking thin. Most people don't see their income swing wildly from one year to the next, Ms. Bruno says. They can likely use last year's tax return to decide whether to make a contribution for the current tax year each January.

    Procrastinators still have time to change their ways. Some can catch up if they now make their 2013 and 2014 contributions—a total of $11,000 for those under 50 contributing the maximum for each year, Ms. McNeill says. Those investors can then get in the habit of making their IRA contributions at the start of each year. (Investors 50 or older can contribute as much as $6,500 to their IRAs each year.)

    While a doubled-up contribution is a lot to set aside at once, she says: "You've only got to make this change for one year."


    Controversy and Scandal Surrounding John Hancock and the Compounding of Interest
    "Our signature 1776 revolutionary:  John Hancock's role as treasurer left an uneasy Harvard," Harvard Gazette, July 2, 2013 ---
    http://news.harvard.edu/gazette/story/2013/06/our-signature-1776-revolutionary/

    Jensen Comment
    To this day, many people in the USA do not understand the difference between simple interest versus annual compounding versus continuous compounding ---
    http://en.wikipedia.org/wiki/Compound_Interest
    Except for very long holding periods, continuous compounding does not add all that much to annual compounding. But compounding adds a huge amount relative to simple interest.

    For example, if the Lenape Indians in 1626 had invested the $24 they received for Manhattan at 6% compounded annually they could perhaps buy the island back in 2013 for the accumulated savings of  $149,135,522,178.18.  In my first course in economics this was a footnote in the famous textbook by Paul Samuelson (with slightly different numbers). If this was indexed over time for inflation and exempt from taxation the Lenapes could perhaps buy the entire State of New York in 2013.

    It's no wonder that in 1793 Harvard University badly wanted $529 accumulated compound interest owed by the John Hancock estate.


    "Wallet.AI Aims to Serve Up Location-Based Financial Advice:  An app called Wallet.AI wants to put a financial advisor in your pocket," by Rachel Metz, MIT's Technology Review, September 23, 2013 --- Click Here
    http://www.technologyreview.com/news/519346/walletai-aims-to-serve-up-location-based-financial-advice/?utm_campaign=newsletters&utm_source=newsletter-daily-all&utm_medium=email&utm_content=20130924


    Mortgage Rate Calculation Tools --- http://www.mortgagerates.net/additional-resources/calculation-tools/

    Bob Jensen's threads on online calculators --- http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators


    Smart About Money - National Endowment for Financial Education --- http://www.smartaboutmoney.org/


    "Teach Financial Literacy," by Steven Bahls, Chronicle of Higher Education, June 13, 2011 ---
    http://www.insidehighered.com/views/2011/06/13/essay_on_responsibility_of_colleges_to_teach_financial_literacy

     As a college president, I ask students and graduates what are we doing correctly and what can we improve upon. The typical responses to how we can improve are not surprising — more parking and more financial aid (often in that order). Lately the most common answer from recent graduates as to how we can improve has been surprising — more education about financial literacy and the practical aspects of living in today’s world.

    I hear the following comments with increasing frequency, particularly since the Great Recession of 2008:

    • had no idea of the impact of my student debt and credit card debt on my ability to live a comfortable life after college.
       
    • Living in the residence halls and dining at the college, I didn’t need to know about budgeting and renting an apartment. I had no idea how to create a budget so I could live responsibly and comfortably on my salary.
       
    • In college I learned how to cultivate a pointed argument, but quickly learned that in the workplace an aggressive argument can get you fired. No one told me about how to disagree with your boss and not have your job threatened.

    Faculty and administrators at liberal arts colleges do not shy at complex thinking. We tend to scrutinize the details even as we comprehend the big picture. We look for connections among areas of thought, and revel in a multitude of perspectives. By the end of their four years on campus, our students have benefited from a well-rounded, richly layered education. I believe most even recognize what it means to be liberally educated. Having learned to "turn the crystal" as they develop their views and goals, they are confident and able to find success on many levels.

    Why then do so many recent graduates seem unable to demonstrate sound decision-making in an area as fundamental as finances and entering the work world?

    Is it possible that in our efforts to foster creative and critical problem solving, we neglect the basics of responsible day-to-day living and working? As we carefully engage students in discerning shades of gray, is it at the expense of black and white?

    Two events have led me to ask these questions. First is the number of conversations like those described above, with graduates who confided to me their frustrating lack of “real-world” financial knowledge. The second is the fact of the high loan default rate among recent college graduates, which is 7 percent nationwide (Augustana’s rate is 4.2 percent). I know I am not alone in asking the question: What should we do?

    Personal Prosperity and the Common Good

    Jon Meacham, the former editor of Newsweek, addressed the 2011 Council of Independent College Presidents Institute. Meacham praised the role of liberal education, noting that "people who know about Shakespeare tend to create the Internet." But if appreciating Shakespeare and other skills common to a liberal education is viewed by most as "quaint and quirky," liberal education will not survive. Instead, he argues that liberal education must be "vital and relevant" by "training young minds to solve problems and to see what others have yet to see and to think energetically about creating jobs and wealth," which Meacham calls the "oxygen of democracy."

    I'd go one step further than Meacham. Our graduates can’t create wealth and jobs if they don’t have the ability to balance a checkbook, or the skills to hold a job.

    When asked to define "personal success," I think it is fair to suggest that most college freshmen would put "financial success" toward the top of their list. As they begin taking liberal arts courses, they connect their learning to other aspects of their lives, and many begin to think of a career as something more than just a paycheck. They develop meaningful working relationships with faculty members and other students, and may experience some peaks in their education — whether through an internship, international study, research with faculty or other achievements in their major studies. Their definition of success develops more facets.

    At Augustana College, we have long promoted high-impact learning experiences as well as the close relationships that allow integrated and collaborative learning to flourish. Recently we have begun to take new steps toward teaching certain life skills fundamental to ensuring success of all kinds.

    Leadership about financial literacy must come from the top. I remind our students that if they live like college graduates with good jobs while they are students, their debt levels will cause them to live like students when they graduate. Going out to a mid-priced restaurant twice a week for four years could easily cost $8,000. Putting those charges on a credit card and carrying the balance over four years tips the cost to well over $10,000.

    Five years ago, before the severe economic downturn, we introduced a class on personal finance. Offered each spring and fall term, the class is packed with seniors and some juniors. Having read Plato and Neruda, spent hours upon hours working in our human cadaver or volcano lab, or climbed Machu Picchu, these students suspect they must improve their financial literacy before they graduate.

    Their instructor, an alumnus retired banker, begins by teaching how to use financial templates. The students create a personal profile and then produce a cash flow statement for the previous year. After clarifying their own understanding of their financial history, which generally is filled with gaps until this class, they work with their instructor on the process of creating a budget for the next year. Taking into account three to four personal financial goals (e.g., paying for students loans, emergency funds, etc., and even retirement), the students lay their financial path for the future. At all times throughout the class they keep in mind their current net worth, and how that value should affect their financial decisions. The course is such a success that, given the financial illiteracy demonstrated by too many young alumni, we now are offering a free three-hour seminar as a "crash course" in personal finance for our graduating seniors.

    Sharing Responsibility

    Augustana is not the only liberal arts college to offer such a class, and there is more we all can do. Many liberal arts colleges are adding majors that address personal financial viability in a changing world and also attract prospective students in an increasingly competitive market.

    Augustana’s newest majors — which extend from traditional majors — include graphic design, neuroscience, environmental studies, multimedia journalism and engineering physics, among others. While some of our faculty state concerns that our college’s liberal arts foundation might be shaken by the contemporary and perhaps more fiscal focus of these programs, most see the new majors as logical progressions of traditional fields and therefore deeply related to our college’s mission.

    Continued in article

     


    Bloomberg Business Week asked that I share the following links with you:

    1.    Personal Finance News: http://www.bloomberg.com/personal-finance/

    2.    Saving and Investing: http://www.bloomberg.com/personal-finance/saving-and-investing/
    3.    Retirement Planning: http://www.bloomberg.com/personal-finance/retirement-planning/

    4.    Real Estate Investing: http://www.bloomberg.com/personal-finance/real-estate/

    5.    Tax News:http://www.bloomberg.com/personal-finance/taxes/
    6.    Financial Advisers: http://www.bloomberg.com/personal-finance/financial-advisers/
    7.    Insurance and Health: http://www.bloomberg.com/personal-finance/insurance-and-health/
    8.    Financial Calculators: http://www.bloomberg.com/personal-finance/calculators/
    9.    Businessweek Magazine Online: http://www.businessweek.com/subscribe/
     

    I posted all the above links to my personal finance helper links at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     

    I also added the Financial Calculators link to
    http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators

    I added the tax news to
    http://faculty.trinity.edu/rjensen/AccountingNews.htm#News

    Inside Footnotes (advice from and for security analysts) ---
    http://www.footnoted.com/inside-footnotes/ 


    "What’s Wrong with the Financial Services Industry?" by Barry Ritholtz, Ritholtz Blog, February 21, 2013 ---
    http://www.ritholtz.com/blog/2013/02/whats-wrong-with-the-financial-services-industry/

    If you hang around these parts for any length of time, you will occasionally run across a jeremiad of mine complaining about the Financial Services Industry.

    I’ve been thinking about this more than usual lately. This has led to some correspondence with Helaine Olen, whose book Pound Foolish: Exposing the Dark Side of the Personal Finance Industry is next up in my queue. (Her appearance on the TDS yesterday is here). It is similar to the deep dive my colleague Josh Brown took in Backstage Wall Street.

    My criticism is somewhat different than Helaine’s (though I am sympatico with much of her view). I break down the problems as follows:

     

    Simplicity does not pay well: Investing should be relatively simple: Buy broad asset classes, hold them over long periods of time, rebalance periodically, get off the tracks when the locomotive is bearing down on you. The problem is its easier in theory than is reality to execute this.

    Confusion is not a bug, its a feature:   Thus, the massive choice, the nonstop noise the confusing claims, all work to make this much more complex than it needs to be.

    Too much money attracts the wrong kinds of people: Let’s face it, the volume of cash that passes through the Financial Services Industry is enormous. Few who enters finance does so for altruistic reasons.

    Incentives are misaligned: As I’ve written previously, too many people are unwilling to get rich slowly. Hence, some of the wrong people work in finance, and some of the right people exercise bad judgment.

    Too many people have a hand in your pocket:  The list of people nicking you as an investor is enormous. Insiders (CEO/CFO/Boards of Directors) transfer wealth from shareholders to themselves, with the blessing of corrupted Compensation Consultants. Active mutual funds charge way too much for sub par performance. 401(k)s are disastrous. NYSE and NASDAQ Exchanges have been paid to allow a HFT tax on every other investor. FASB and Accountants have doen an awful job, allowing corporations to mislead investors with junk balance statements. The Media’s job is to sell advertising, not provide you with intelligent advice. The Regulators have been captured.

    What’s the net impact of all this on your investments ?

    The Financialized US Economy: The above list reflects nearly half a century of the financialization of the broader US economy. Instead of serving industry, finance has trumped it. This led directly to the financial crisis and economic collapse of 2007-09.

    Human Nature: Then there is your own behavioral issues. On top of everything else, you are governed by a brain that simply wasn’t built for this.

    All of these add up to a system that is flawed, and often fails to do its job.

    Continued in article

    Large public accounting firms are probably not in favor of simplifying the tax code
    February 17, 2013 message from Richard Sansing

    This week's issue of The Economist has a special report on
    off-shore finance. This article discusses the role of large
    public accounting firms.


    http://www.economist.com/news/special-report/21571556-accounting-firms-will-do-nicely-under-any-set-rules-merry-enablers

    Jensen Content
    Note that "simplicity does not pay well" in consulting!
    I wonder to what extent large CPA firms want simplified accounting and auditing rules (to increase profits on audits) and highly complex regulations and financing alternatives (to increase profitability of consulting). Thus far in the 21st Century everything seems to becoming more complicated., which is probably why audits are not especially profitable relative to consulting.

    However, unless a new regulation is put in place to rotate audit firms, auditing contributes heavily to fixed costs annually due to the tendency of clients to stick with the same auditing firms year after year. Consulting engagements come and go making them not especially reliable for paying fixed costs but making them profitable on top of the fixed costs paid for by audit engagements. Thant's my $.02.


    Definition of Screwed:
    avg mkt return ~12%, avg mutual fund ret ~9%, average investor ret ~ 2.6%. Timing, selection, and costs destroy

    Finance Professor Jim Mahar

    "Romancing Alpha (α), Breaking Up with Beta (β)," by Barry Ritholtz, Ritholtz, February 15, 2013 --- |
    http://www.ritholtz.com/blog/2013/02/alpha-beta/

    Since it is a Friday (following Valentine’s Day), I want to step back from the usual market gyrations to discuss a broader topic: The pursuit of Alpha, where it goes wrong, and the actual cost in Beta.
     

    For those of you unfamiliar with the Wall Street’s Greek nomenclature, a quick (and oversimplified) primer: When we refer to Beta (β), we are referencing a portfolio’s correlation to its benchmark returns, both directionally and in terms of magnitude.
     

    We use a scale of 0-1. Let’s say your benchmark is the S&P500 — it has a β = 1. Something uncorrelated does what it does regardless of what the SPX does, and its Beta is = 0. We can also use negative numbers, so a Beta of minus 1 (-1) does the exact opposite of the benchmark.
     

    Beta measures how closely your investments perform relative to your benchmark. If you were to do nothing else but buy that benchmark index (i.e., S&P500), you will have captured Beta (for these purposes, I am ignoring volatility).

    The other Greek letter we want to mention is Alpha (α). Alpha is the risk-adjusted return of active management for any investment. The goal of active management is through a combination of stock/sector selection, market timing, hedging, leverage, etc. is to beat the market. This can be described as generating Alpha.

    To oversimplify: Alpha is a measure of out-performance over Beta.

    Why bring this up today?

    Over the past few months, I have been looking at an inordinate number of portfolios and 401(k) plans that have all done pretty poorly. I am not referring to any one quarter of even year, but rather, over the long haul. There is an inherent selection bias built into this group — well performing portfolios don’t have owners considering switching asset managers. But even accounting for that bias, a hefty increase in the sheer number of reviews leads me to wonder about just how widespread the under-performance is.
     

    One of the things that has become so obvious to me over the past few years is how unsuccessful various players in the markets have been in their pursuit of Alpha. We know that 80% or so of mutual fund managers underperform their benchmarks each year. We have seen Morningstar studies that show of the remaining 20%, factor in fees, and that number drops to 1%.
     

    The overall performance of the highest compensated group of managers, the 2%+20% Hedge Fund community, has been similarly awful, as they have underperformed for a decade or more.

    Continued in article

     


    Department of Labor (DOL) --- http://en.wikipedia.org/wiki/United_States_Department_of_Labor

    "EBSA Cracks Down on Retirement Plan Advisors:  Advisors take heed: The DOL arm that rides herd over retirement plans is ramping up its enforcement efforts," by Melanie Waddell, AdvisorOne, March 26, 2012 ---
    http://www.advisorone.com/2012/03/26/ebsa-cracks-down-on-retirement-plan-advisors?t=legal-compliance

    Prominent retirement planning officials are warning advisors to make sure that the retirement plans they advise are compliant with Department of Labor rules, as the DOL’s regulatory arm responsible for policing these plans is cracking down.

    So far this year, the DOL’s Employee Benefits Security Administration (EBSA) has significantly raised its enforcement efforts in what Andy Larson, director of the Retirement Learning Center, says should serve as a wake-up call to advisors who advise retirement plans and plan sponsors.

    In 2011, EBSA said it had closed 3,472 civil cases and obtained monetary results of nearly $1.39 billion. EBSA also closed 302 criminal cases that resulted in 129 individuals being indicted and 75 cases being closed with guilty pleas or convictions. DOL also wants to increase the number of its enforcement personnel from 913 to 1,003 this year.

    Larson says those EBSA enforcement numbers are “astonishing” and warns that many advisors are surprisingly still unaware that the DOL has jurisdiction over them.

    What’s the biggest area EBSA is zeroing in on? Fiduciary negligence. EBSA is “seeing very high levels of non-compliance with fiduciary” duties. When the EBSA releases its reproposed fiduciary rule in the first half of this year, the rule “will affect advisors and their fiduciary role,” not plan sponsors, Larson says.

    In light of this, Larson said, advisors should ensure they have a “strong documentable fiduciary process.”

    As Larson notes, since the Employee Retirement Income Security Act (ERISA) was put into place, DOL and the Internal Revenue Service’s Employee Plans Unit have had joint authority “to ride herd” over retirement plans. But service providers have gotten accustomed to the IRS taking the lead in enforcement actions, and have failed to notice over the last two years that the EBSA “is showing up through the unlocked back door and finding problems,” Larson says.

    Because the IRS has been the primary enforcer of ERISA rules, “service providers have developed their models to include mechanisms with IRS requirements,” but may have failed to include “DOL-type protections in their service models,” Larson says.

    Continued in article

    Bob Jensen's helpers (not advice) for personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    "The Truth About Paying Down Your Mortgage Early," Business Insider, June 21, 2013 ---
    http://www.businessinsider.com/paying-off-mortgage-with-leftover-money-2013-6

    Jensen Comment
    Much depends on what your intend to do with the funds that you would otherwise use to pay down part or all of your mortgage. If it all goes to wine, women, and casino gambling then pay down at least part of your mortgage. If it goes to buy gold coins then pay down your mortgage (I'm against buy gold coins in any circumstances since the transactions costs on resale are so high).  If it goes for home improvements the answer is uncertain and depends upon your particular real estate market and how much those improvements add to the monetary and personal value of your home.

    Of course your particular income, savings, and tax situation trumps almost everything.

    I have an enormous refinanced mortgage that will not be paid off until I'm nearly 100 years of age. My strategy is to carry a jumbo mortgage for tax purposes and invest in an insured tax-exempt fund where the after-tax returns of my annual tax-exempt cash flow exceed the after-tax cash outflow of my mortgage costs. Of course this is not a good strategy for everyone because there are risks in tax-exempt fund values, and tax-exempt bonds are not good inflation hedges. Old guys like me don't worry so much about inflation. Young investors should worry about inflation.

    What I'm saying is that your outlook on investments and life change with the seasons of your life. When I was young I always purchased the highest price home with the biggest mortgage that I could possibly afford. When on the faculty at the University of Maine in the 1970s  I had a big and beautiful house in town plus a cottage on 12 acres of ocean front. In those days real estate values just kept going up and up and up.

    Two things have changed in my life. One is that I'm no longer young with worries about inflation and home real estate values. My children will inherit enough to a point that I'm not worried about inflation or the value of my home over the next 20 years --- Ka Sara Sara!

    The other thing that has changed in my lifetime is the real estate market. Up in the mountains where I now live expensive property is just not selling. The market is also limited for other types of property since northern New England is in an economic and population growth slump. Also the market for second (vacation) homes is changing --- in part due to higher risk of losing money on these investments. I sold an Iowa farm a few years ago. This is a totally different type of investment where values have been rising in large measure because of the corn ethanol disaster for consumers. Today, however, I think Iowa farm land is a better investment for farmers who actually drive the tractors on Iowa farm land relative to far away landlords with no intent to farm the land themselves. Having said that, farm land is a pretty good long-term inflation hedge for investors not needing much interim cash flow. At the moment Iowa farm land may be too high priced. Who really knows? Nobody!

    My point is that both your economic and personal situation changes with seasons of life and states of the economy and tax reforms that might finally get enacted. Advice is cheap and possibly misleading. It's best to study your particular situation to a point where you can advise yourself.

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    Individual Retirement Account (IRA) --- http://en.wikipedia.org/wiki/Individual_retirement_account

    There are several types of IRA:

    • Traditional IRA contributions are often tax-deductible (often simplified as “money is deposited before tax” or “contributions are made with pre-tax assets”), all transactions and earnings within the IRA have no tax impact, and withdrawals at retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted). Depending upon the nature of the contribution, a traditional IRA may be referred to as a “deductible IRA” or a “non-deductible IRA.” It was introduced with the Tax Reform Act (TRA) of 1986.
    • Roth IRA contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free. Named for Senator William V. Roth, Jr.. The Roth IRA was introduced as part of the Taxpayer Relief Act of 1997.
    • SEP IRAa provision that allows an employer (typically a small business or self-employed individual) to make retirement plan contributions into a Traditional IRA established in the employee’s name, instead of to a pension fund in the company's name.
    • SIMPLE IRA a Savings Incentive Match Plan for Employees that requires employer matching contributions to the plan whenever an employee makes a contribution. The plan is similar to a 401(k) plan, but with lower contribution limits and simpler (and thus less costly) administration. Although it is termed an IRA, it is treated separately.
    • Self-Directed IRAa self-directed IRA that permits the account holder to make investments on behalf of the retirement plan.

    There are two other subtypes of IRA, named Rollover IRA and Conduit IRA, that are viewed by some as obsolete under current tax law (their functions have been subsumed by the Traditional IRA); but this tax law is set to expire unless extended. However, some individuals still maintain these arrangements in order to keep track of the source of these assets. One key reason is that some qualified plans will accept rollovers from IRAs only if they are conduit/rollover IRAs.

    What was formerly known as an Educational IRA is now called a Coverdell Education Savings Account.

    Starting with the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), many of the restrictions of what type of funds could be rolled into an IRA and what type of plans IRA funds could be rolled into were significantly relaxed. Additional acts have further relaxed similar restrictions. Essentially, most retirement plans can be rolled into an IRA after meeting certain criteria, and most retirement plans can accept funds from an IRA. An example of an exception is a non-governmental 457 plan which cannot be rolled into anything but another non-governmental 457 plan.

    The tax treatment of the above types of IRAs except for Roth IRAs are substantially similar, particularly for rules regarding distributions. SEP IRAs and SIMPLE IRAs also have additional rules similar to those for qualified plans governing how contributions can and must be made and what employees are qualified to participate.

     

    "Should You Contribute to a Non-Deductible IRA?" by Laura Adams, Money Girl, February 12, 2013 ---
    http://moneygirl.quickanddirtytips.com/what-is-a-non-deductible-ira.aspx

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    "Do Gold ETFs Really Move on Inflation Expectations?" by John Spence, ETF Trends, Junw 15, 2012 ---
    http://www.etftrends.com/2012/06/do-gold-etfs-really-move-on-inflation-expectations/
    Thank you Jim Mahar for the heads up.

    Gold ETFs are often described as an inflation hedge but recent academic research suggests the precious metal is more dependent on emerging market demand, particularly from central banks that hold less gold than their counterparts in developed countries.

    “Assuming that gold moved in lockstep with the CPI, the implied price would be about $780 an ounce, according to Duke University Professor Campbell R. Harvey and his collaborator, Claude B. Erb,” Bloomberg News reports.

    Gold is trading back above $1,600 an ounce as traders speculate on the odds of further monetary easing before next week’s Federal Reserve meeting. [Gold ETFs Eye Fed, Europe]

    Since the gold bull market started in about 2001, prices have risen more than sevenfold.

    “If gold is an inflation hedge, then on average its real return should be zero,” Erb and Harvey wrote, according to the Bloomberg report. Instead, returns from 2000 through March of this year averaged 13% a year on an inflation-adjusted basis.

    Gold ETFs such as SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) have likely fueled the metal’s rise since they have made it easier for more investors to buy gold.

    “Global ETF investor positions have continued to trend up in both gold and silver, reflecting the fact that long term price supports such as negative real interest rates, currency debasement and sovereign/financial sector default risk, and rising emerging market/central bank demand remain embedded in the 2012 outlook,” ETF Securities said in a report earlier this year. [Measuring the Impact of Gold ETFs]

    Harvey and Erb wrote that emerging markets can support gold because the precious metal represents a smaller part of central bank reserves than developed nations.

    Foreign central banks are “one of the more intriguing sources of incremental demand for gold,” says ConvergEx Group strategist Nicholas Colas. [Strategist: Why Gold ETFs Still Make Sense]

    “Among emerging economies, for example, central banks are actively buying gold to add to their reserves. The trend is most noticeable in Russia and India, but increasingly in China as well. Press accounts placed China’s net gold purchases in 2011 at over 200 tons, doubling its position in one year,” he said in a recent report.

    “And gold is clearly playing a role at the central bank level in these countries’ efforts to hedge such price increases,” Colas noted. “There is a popular saying on Wall Street – ‘Don’t fight the Fed.’ Why fight the Chinese, Russian and Indian central banks on gold? Like the Fed, they have much deeper pockets than you.”

    See Chart

    Continued in article


    Planning for the Bad as Well as the Good in Retirement

    "CPAs Stress the Importance of Long-Term Care," AICPA, August 2012 ---
    http://blog.aicpa.org/2012/08/cpas-stress-the-importance-of-long-term-care.html

    Jensen Comment
    Note that Medicare does not pay for long-term care even though it does pay for short-term crisis moments that qualify for admission to a hospital. The largest single Medicare expenditure by far is for the hospital costs of dying, but between the stroke and dying hospital periods that are covered by Medicare can be months and even years of long-term care not covered.

    I learned at the 2012 AAA Annual Meetings that a really close former friend and colleague has been paying out over $150,000 per year for 24/7 home nursing care for a number of years. Because this former accounting professor can afford such level of care, it's not been necessary to be admitted into a lower costing nursing care facility. But such nursing care facilities are still very expensive for very long-term care.

    A friend committed suicide about three years ago in Manchester, New Hampshire. We were close years ago when we were both masters degree students at the University of Denver. Interestingly, he had an expensive paid-up insurance policy for long-term nursing care.  Sherman never married and had no family left whatsoever. My guess is that when his health and quality of life started going downhill he just did not want to waste away in a nursing home even though he had premium insurance coverage for long-term care.

    By the way I am not advising for or against long-term care insurance.
    Such insurance is quite expensive and increases greatly in cost with age. I did not conduct research for this email message, but I think that the odds are still relatively low for incurring very expensive long-term care. But "odds" are computed on the basis of a large population of elderly people. The odds for a given individual can be quite different. The mother-in-law of one of my cousins back in Iowa has been in a nursing home for over ten years in a small Iowa town. In no way could she have paid for such care all these years without having had such insurance. Hence, I do not give advice regarding whether to buy or not buy long-term care insurance. I did not buy such insurance.

    Keep in mind that most long-term care insurance policies do not cover all long-term care costs. Some policies only pay a pittance of these costs.

    My point that all retirees are subject to the financial risks of long-term care. These should be factored into dreams of that condo on a golf course or that small hobby farm with occasional luxury cruises.

     


    No Fooling: Try This One Out With Students (adding sensitivity analysis with interest rates and inflation)
    "Slow Compounding," by Floyd Norris, The New York Times, April 1, 2011 ---
    http://norris.blogs.nytimes.com/2011/04/01/slow-compounding/

    American Express has a full-page ad in today’s Times offering a savings account yielding 1.15 percent.

    These days that is a good rate, a fact the people of my generation find astonishing. Such amazingly low rates cause great anxiety for those who saved money in the past and now find it yields so little.

    I did a little arithmetic. My son is an 18-year-old college freshman. If he puts $100 into such an account now, and rates remain constant, he will have doubled his money in time for his 79th birthday party.

    Of course, if you are investing for a child in kindergarten, there is still hope. A $100 investment today would double about the time he or she goes on Medicare.

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    The sad part about going into business apart from writing books is that having such a huge vested interest in that business creates moral hazard in terms of independence as on of the leading personal finance commentators in the world. The champion of the poor and troubled may be trying to increase her 1% at the expense of the poor and troubled.

    Suze Orman --- http://en.wikipedia.org/wiki/Suze_Orman

    "Suze Orman, Debit-Card Dealer:  The money guru introduces her first financial product—and vexes some fans," by Karen Weise, Bloomberg Business Week, January 19, 2012 ---
    http://www.businessweek.com/magazine/suze-orman-debitcard-dealer-01182012.html

    “I love you!” a woman yells as personal finance guru Suze Orman enters the drab conference room at a Barnes & Noble (BKS) in suburban New Jersey. Fans cheer and clap while a man in the front row tears up from excitement. Orman is here to preach the tough-love brand of financial advice that she’s been peddling for more than a decade through nine bestselling books, a highly rated CNBC show, and regular appearances on the old Oprah Winfrey Show. “You have got to be the masters of your own financial future,” she tells the 200-strong crowd. While the event coincides with a new paperback edition of her 10th book, The Money Class, that’s not the main focus of her talk. “You need more than books,” she says. “Now you need the tools.”

    Orman has a particular tool in mind. Just a few days earlier she introduced her first financial product: a prepaid debit card emblazoned with her name. She sees her Approved Card as an alternative way for people who are fed up with—or don’t have—traditional checking accounts and credit cards to manage their cash. And if the most ambitious part of her plan succeeds, the card may eventually help users improve their credit scores.

    Orman’s Approved Card, issued by Wilmington (Del.)-based Bancorp Bank (TBBK), is in part designed to play the role of pestering mom. The basics are simple: People use electronic transfers or cash to load money onto their cards, then use them like regular debit cards, buying groceries or shopping online. The Orman touch comes in such features as automatic text message alerts sent to mobile phones that note the balance remaining on the card after each purchase. The card’s website has Orman issuing such sharply worded reminders as, “Before you make a purchase, you’d better be able to afford it—do you hear me?!”

    Prepaid cards are the fastest-growing payment method, Federal Reserve data show. In 2010 people used them for $65 billion in transactions, compared with $48 billion in 2009, the industry newsletter Nilson Report says. Part of the cards’ appeal is that you can’t get into debt with them. “I think it’s a good idea to have a prepaid card rather than going out willy-nilly with a credit card,” says Glinda Kidd at the book signing.

    Still, prepaid cards often come loaded with fees—and Orman’s is no exception. It has a standard $3 monthly charge. While there’s no cost to reload the card with direct deposits or automatic transfers from a checking account, people must pay up to $4.95 to put cash on the card at Western Union (WU) or MoneyGram (MGI) locations. And if they load with cash rather than electronically, all ATM withdrawals cost $2. One free call to a customer service rep is included each month; extra calls are $2 each.

    “What people don’t understand is the cost to do business,” says Orman in an interview. “If I could have given this to you for free, I would have.” Orman, who says she invested $1 million in the venture, declines to discuss how much money she might make from it. And she vows to train customers to keep their costs down. In videos on the card’s website, she explains the fees, warning that people who load their cards electronically can get cash from one of the 35,000 ATMs in the Allpoint network for free but will incur a $2 charge for using other ATMs—plus whatever fee the ATM operator imposes. “Why would you want to waste money like that?” she says in the video. “Don’t be lazy, and go to an Allpoint ATM.”

    Orman says if she finds people are incurring fees to put cash on the card, only to spend another $2 to get cash at an ATM, she will ask them to turn in their plastic. If you’re going to squander money that way, “just keep it in cash! You don’t need the damn card,” she tells the audience at the book signing.

    Michael Collins, an assistant professor at the University of Wisconsin who studies the financial decision-making of low-income families, says people will eventually figure out the costs of any product. “The question is how long will it take” and how much in fees they will have racked up by then, he says. Collins adds that if Orman’s messages help people control their spending impulses, the card could be beneficial: “Anything that gets people to think harder about their financial security and take some responsibility is a good thing.”

    Some personal finance bloggers have complained about the fees and charged that Orman is using her influence to bilk her fans. On Twitter, the Blog Finanza website said: “You are taking your authority figure to make a $$ from your audience. #DENIED”—echoing a catchphrase from Orman’s TV show. Others, such as MSNBC.com consumer finance columnist Herb Weisbaum, said many people would be better served by building their credit immediately with a secured credit card.

    Orman dismisses the criticisms, saying the card reflects her understanding of people’s financial habits and needs. “I am the personal financial expert of the world,” she says. “I know what I am talking about.” Publicly, Orman lashed out on Twitter against the naysayers, calling them “small thinkers,” “idiots,” and “Suze haters.” After New York Times personal finance columnist Ron Lieber and others protested the harsh words, she issued a blanket apology: “For anyone I called an idiot, I too am sorry.”

    Continued in article

    "Does Suze Orman's Prepaid Debit Card Make Sense for You?" by Sarah Gilbert, Get Rich Slowly, January 17, 2012 ---
    http://www.getrichslowly.org/blog/2012/01/17/does-suze-ormans-prepaid-debit-card-make-sense-for-you/?WT.qs_osrc=fxb-48064510

    Suze Orman is famous for her personal, easy-to-digest, and friendly personal finance advice. Many of us less famous (far less famous, in the case of this writer) finance writers admire her general approach, which boils down to “spend less than you earn.” Who can argue with that? So imagine my amazement at the news this week that Suze will be offering a branded prepaid debit card.

    Prepaid debit cards have a star-crossed reputation
    You know about branded prepaid debit cards, but they're usually not connected with individuals known for their sensible finance advice. Think
    Russell Simmons. Think the Kardashians. See? Sample words and phrases from our collective wisdom on those topics include “skeptical” and “reprehensible” and “urge to scream” and “hit cash-strapped consumers over the head with nickel-and-dime charges.”

    Suze Orman is famous for her personal, easy-to-digest, and friendly personal finance advice. Many of us less famous (far less famous, in the case of this writer) finance writers admire her general approach, which boils down to “spend less than you earn.” Who can argue with that? So imagine my amazement at the news this week that Suze will be offering a branded prepaid debit card.

    Prepaid debit cards have a star-crossed reputation You know about branded prepaid debit cards, but they're usually not connected with individuals known for their sensible finance advice. Think Russell Simmons. Think the Kardashians. See? Sample words and phrases from our collective wisdom on those topics include “skeptical” and “reprehensible” and “urge to scream” and “hit cash-strapped consumers over the head with nickel-and-dime charges.”

    The biggest problems with prepaid debit cards are, really, threefold:

    While they are cards that are available to consumers with bad credit, they don't help consumers build credit, though they are advertised as doing so (any help would be mild at best - the reporting they do is only to smaller credit reporting agencies, not the “big three” that man the velvet rope for most consumer debt in America). They're punishingly expensive and seem more directed toward association with the personality branding the card than any financial benefit. Russell's “Rush” Card costs between $4 and $15 upfront, with $10 monthly fees and $1 per-transaction fees. They're accused of using celebrities to take advantage of both the hopes and difficult situations of the “unbanked,” mostly-lower-class, often minority consumers whose financial situation is so bad that banks won't take the risk of giving them checking accounts.

    Suze Orman wants to make a difference (but, is it a fool's errand?) Orman has a different idea. She, too, wants to convince the unbanked to use her prepaid debit card, but she wants to charge less. Her “Approved Card” is far cheaper than Rush or the K thingy - only $3 to purchase the card and a $3 monthly fee. ATM transactions from the Allpoint network (found in 7-Eleven, Costco, Kroger, CVS, and Walgreens) are $2 per withdrawal, and point of sale transactions, such as purchases at the grocery store or coffee shop or online, are free. Balance inquiries and some declined transactions are $1 , but it's free to be declined at the register for a regular PIN/signature transaction. Many of these transactions, especially ATM withdrawals, are free for 30 days with a direct deposit or bank transfer into the Approved Card account, making them a great product for customers with some sort of automatically-deposited income (even, for instance, unemployment).

    Notably, electronic debit bill paying is free. Many competing products charge for this service, from $1 to $3 per transaction, and it's the service that customers without a regular bank account need. Often, discounts and special deals are available to customers who allow vendors to debit their account each month.

    The great credit score kerfuffle
    The concept that sells many prepaid debit cards - the quasi-justification for how expensive they are - is that they might help in the quest to raise a credit score. If a credit score is low enough so that a mainstream bank isn't part of your personal finance portfolio, can a prepaid debit card even help? Probably not.

    The problem that Suze Orman has mentioned in public statements about the Approved Card is that credit bureaus, beyond even knowing about the transactions made by the millions of unbanked consumers, don't care about sensible use of money. They just care about sensible use of credit. A New York Times piece quotes Orman as saying, “There is something radically wrong here. We are rewarding people for having credit and punishing people who pay in cash. I want to change that paradigm.”

    Wanting to change credit score calculation is easy. Changing is hard.
    Orman has done the near-impossible and convinced TransUnion, one of the big three credit bureaus, to collect the data about spending habits from her customers. But what that will do to credit scores is another thing entirely. The answer, probably, is nothing.

    The problem that Suze Orman has mentioned in public statements about the Approved Card is that credit bureaus, beyond even knowing about the transactions made by the millions of unbanked consumers, don't care about sensible use of money. They just care about sensible use of credit. A New York Times piece quotes Orman as saying, “There is something radically wrong here. We are rewarding people for having credit and punishing people who pay in cash. I want to change that paradigm.”

    Wanting to change credit score calculation is easy. Changing is hard.
    Orman has done the near-impossible and convinced TransUnion, one of the big three credit bureaus, to collect the data about spending habits from her customers. But what that will do t
    o credit scores is another thing entirely. The answer, probably, is nothing.

    The problem is that TransUnion has only been persuaded to evaluate the data Orman will collect with her Approved Card; it has not promised to include that in credit reports nor in the calculation of scores. If, after two years, it finds the data meaningful, it's still unlikely to have much of an effect on the resultant calculations. Responsible use of a prepaid debit card, after all, hasn't had much impact on the financial institutions that sponsor the card - in this case, Orman's own company - so the patterns of data don't have much meaning.

    What kind of debit card use could demonstrate the sort of behavior creditors want to see, such as:

    • On-time delivery of minimum payments
    • A history of purchasing high-value assets and then paying them off quickly
    • Regular income and a comfortable ratio of debt-to-income

    These all can be shown far more reliably through existing reporting. A consumer who pays rent on time each month in cash won't differ, to the eyes of TransUnion, from a consumer who pays rent on time each month by automatic debit from her Approved Card. Similarly, failing to overdraw an Approved Card account (that is impossible to overdraw from, except perhaps for a few $1/$2 ATM transaction declined fees) is very different from failing to overdraw a bank account.

    Why would you use a prepaid debit card?
    There are two groups of people I can see benefiting from using a prepaid debit card, as well as one group I would caution to avoid it. All of them could achieve higher credit scores, but not in the way you think. Let me explain
    .

    Continued in article

    Jensen Comment
    The sad part about going into business apart from writing books is that having such a huge vested interest in that business creates moral hazard in terms of independence as on of the leading personal finance commentators in the world. The champion of the poor and troubled may be trying to increase her 1% at the expense of the poor and troubled.

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     

     


    Financial Education in the Math Classroom --- http://mathforum.org/fe/

    A Government Website for Helpers in Personal Finance
    MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are planning to buy a home, balancing your checkbook, or investing in your 401k, the resources on MyMoney.gov can help you do it better. Throughout the site, you will find important information from 20 federal agencies government wide.
    My Money.gov --- http://www.mymoney.gov/

    PBS Television will now answer your personal finance questions ---
    http://www.pbs.org/newshour/insider/business/jan-june09/pocketchange_05-05.html


    From CNN:  Clark Howard's Informative Advice About Shopping, Financial Planning, and Warnings About Scams ---
    http://www.cnn.com/CNN/Programs/clark.howard/?iref=allsearch

    Bob Jensen's warnings about scams ---
    http://faculty.trinity.edu/rjensen/FraudReporting.htm

    Bob Jensen's shopping helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob3.htm


    National Endowment for Financial Education --- http://www.nefe.org/

    Mission

    The mission of the National Endowment for Financial Education is to help individual Americans acquire the knowledge and skills necessary to take control of their financial destiny. NEFE’s mission is grounded in the belief that regardless of background or income level, financially informed individuals are better able to:

    • Take control of their circumstances, 
    • Improve their quality of life, and 
    • Ensure a stable future for themselves and their families.

    Guiding Principles

    NEFE’s guiding principles are stated in eight initiatives.
    These initiatives:

    • Describe how NEFE achieves its mission, and 
    • Outline the goals and standards that guide the foundation’s activities.

    Every project or program undertaken by NEFE must fit within the scope of at least one initiative.
    NEFE accomplishes its mission primarily by
    partnering with other organizations to:

    • Provide practical, reliable, and unbiased financial education to members of the public. 
    • Accomplish research in the field of financial literacy education. 
    • Create demand for financial education. 

    NEFE’s activities place special emphasis on those who face financial challenges that are not being addressed by others. Among our target audiences are: 

    • Youth, 
    • Low-income individuals and families, and 
    • People in difficult or unusual life circumstances. 

    NEFE’s partnerships and the foundation’s own efforts result in a wide range of free and low-cost activities and materials, including: 

    New activities are covered in each issue of the foundation’s newsletter, NEFE Digest, and in the New at NEFE section.

    Organizational Structure

    The National Endowment for Financial Education is a nonprofit 501(c)(3) foundation governed by a volunteer Board of Trustees and led by president and CEO Ted Beck.  A staff of fewer than 25 individuals guides NEFE’s public-service work at its headquarters in Denver, Colorado. To learn more, visit the History section of this Web site.

     

    NEFE organizes its activities into four action areas, which flow from the foundation’s mission and initiatives.

     

    NEFE defines its action areas as:

    • Education Programs. Although not restricted to a particular age group, the Education Programs area has been oriented primarily to providing financial planning information to youth, including NEFE’s longest-standing public service effort, the NEFE High School Financial Planning Program® (HSFPP)
    • Strategic Programs and AlliancesThis action area works to help Americans improve the quality of their lives through financial education provided in cooperation with other nonprofit organizations and foundations, and occasional corporate sponsors. 
    • Multimedia Access. This action area represents NEFE’s commitment to sharing its expertise in financial planning education with all those who might benefit from it, including consumers, educators, and the media
    • Innovative Thinking. The goal of this action area is to inspire creative ideas and new perspectives on personal finance, to communicate them broadly, and to assist in their actualization where appropriate. This action area supports fellowships programs, grantmaking, and research and strategic activities.

    Video:  Interesting look at 8 common investment mistakes that uses Big Brown (the horse, not the delivery company). ---
    http://financeprofessorblog.blogspot.com/2009/10/video-on-common-mistakes.html

    Last night's (October 7, 2009) PBS NewsHour took a look at the bearish obsession du jour, the commercial real estate market. Real estate analyst Bob White took them around to show some of the ugliest cases out there. (via Square Feet)
    http://www.businessinsider.com/a-guided-tour-of-nyc-commercial-real-estate-wreckage-video-2009-10


    TIAA-CREF has done a good job weathering the latest economic recession
    "TIAA-CREF and You," Chronicle of Higher Education, October 4, 2011 ---
    http://chronicle.com/article/TIAA-CREFYou/129261/?sid=at&utm_source=at&utm_medium=en

    . . .

    To understand TIAA-CREF's offerings, first understand what it is: Whatever the prominence of the words Teachers and College in its unpacked acronym, TIAA-CREF is simply a giant insurance company. Pennywise wrote about TIAA-CREF once before, in a column that appeared at the height of the financial crisis entitled, "Is TIAA-CREF Safe?" Personally, I find that article has held up fairly well and may be reassuring today, in our renewed mood of uncertainty. New readers might want to take a look at it.

    TIAA-CREF has weathered the Great Recession well. Today the company ranks 87th on the Fortune 500 list, with $32-billion in revenues and $1.4-billion in annual profits. All four ratings agencies still give the company the highest possible rating for financial stability; at this point, its ratings are better than the federal government's. A leading investing Web site calls the company the strongest annuity insurer in the United States.

    As for your specific TIAA-CREF investing options, your university's human-resources department can choose from a smorgasbord, so plans will differ. Almost certainly your college's plan has annuities at its core. Those are, for the most part, variable annuities, meaning their value and rates of return fluctuate along with financial markets, functioning much like mutual funds in the accumulation phase—the stretch of life in which you amass your holdings. Once you reach the drawdown phase, however, those vehicles offer the ability either to take out your pile of money in a lump sum or to annuitize it, meaning convert it into a steady stream of annual (hence the name "annuity") income that will last the rest of your life.

    You may notice annuities getting bad press from time to time because the ones sold by many insurers come wrapped in a lot of hidden fees and are sold by advisers seeking commissions. TIAA-CREF's annuities are in a different category; they are relatively low-cost, the company's consultants get no commissions, and the criticisms don't really apply (one exception noted at the end of this column).

    Here's how not to invest with TIAA-CREF: Don't—after looking at the 10-year returns of the different options—put your money heavily into the ones that have performed best. Ten years from now something else may have outperformed them. The funds that have done well recently are probably the most expensive right now, but nobody can be sure.

    Instead, consider your household portfolio as a whole. Seek a well-diversified mix of different types of investments that rely on returns from different sectors of the economy. Understand how each option functions and spread your money around in proportions that make sense for your relative sense of risk.

    Your plan is likely to include the following:

    TIAA Traditional Annuity. From your point of view, this account works a bit like a bank certificate of deposit with a very generous interest rate. TIAA-CREF guarantees that any money you put in will be returned. The company then pays a specific rate of interest (currently 3.75 percent) on all new money deposited, a rate adjusted periodically. (The overall rate of return for the past 10 years was 5.62 percent). Because TIAA-CREF manages the underlying pool of money by investing mostly in bonds and related securities, rates in the coming years will probably be fairly low, but your contributions are contractually guaranteed.

    This is an excellent investment for those who react very badly to market drops. However, while you do not face market risk, you do face individual company risk. If TIAA-CREF went bankrupt, its guarantee would mean nothing. That's why the firm's profitability and stability are crucial.

    Note: To guarantee your principal plus a rate of interest, TIAA-CREF puts some fairly strong restrictions on clients' ability to transfer money in and out of this annuity. Don't commit money to TIAA Traditional unless you are content to let it sit until you retire. You can get it out, but it will be difficult.

    Tip: Concentrate your TIAA Traditional holdings in your main 403(b) account, since a much lower rate of interest (currently 0.75 percent less) will be paid on it in your Supplemental Retirement Account (SRA), if you have one.

    TIAA Real Estate Variable Annuity. The funds in this distinctive offering are invested directly in real estate (office buildings, malls, industrial parks, and so forth). Buy in, and you get the perks of being a property mogul and landlord, without all the hassles.

    CREF Variable Annuities. These function a great deal like regular mutual funds. There are five stock-market options: Global, Stock, Equity Index, Growth, and Social Choice. Global and Stock both invest in world stock markets, including U.S. and international ones. Equity Index and Growth are solely U.S. stock-market funds. Social Choice screens for certain ethical and political criteria. Then there are three options that apply to the more stable, less risky part of your portfolio: Bond, Inflation-Linked Bond, and Money Market.

    It may be that your university plan also offers, beyond the above annuities, TIAA-CREF's vast array of mutual funds, which come in almost infinite variations, including LifeCycle funds (all-in-one, no-brainer options for those who want to put things on autopilot) or highly specific funds focusing on specific sectors of the stock market, such as small-cap companies.

    The precise mix that is right for you depends on your risk tolerance and time frame. There are decent models on Page 12 of this brochure. No need to make it complex, though. A pretty good holding could be amassed in just TIAA Traditional (20 percent); TIAA Real Estate (10 percent); one of the stock-market annuities, perhaps Equity Index since it costs you the least, or Global since it has international diversification to offer (60 percent); and the inflation-adjusted bond option (10 percent). Reduce the equities portion and increase the bond if you are skittish or near retirement.

    Remember that the current market mayhem may mean you will be buying low. Don't let it scare you away from stocks, even if, in the short term, you see some declines.

    Continued in article

     


    Making Home Affordable --- http://www.makinghomeaffordable.gov/pages/default.aspx

    Making Home Affordable is a key part of the Obama Administration's effort to help homeowners avoid foreclosure. If you are struggling with your monthly mortgage payments or have already missed a payment, now is the time to take action. Start today by learning more about the options available to you through MHA

    Help for Homeowners Facing Foreclosure

    Help for Homeowners Struggling With Mortgage Payments

    Help for Homeowners Trying to Avoid Mortgage Troubles

    Attend an MHA event in your area


    Ray Williams --- http://en.wikipedia.org/wiki/Ray_Williams_(basketball)
    "Nobody wnats you when you're down and out" --- http://www.youtube.com/watch?v=MsrA2fMn0sk&feature=fvst

    A Sad, Sad Case That Might Be Used When Teaching Personal Finance:  Another Joe Lewis Example
    "Desperate times:  Ex-Celtic Williams, once a top scorer, is now looking for an assist," by Bob Hohler, Boston Globe, July 2, 2010 ---
    http://www.boston.com/sports/basketball/celtics/articles/2010/07/02/desperate_times/

    Every night at bedtime, former Celtic Ray Williams locks the doors of his home: a broken-down 1992 Buick, rusting on a back street where he ran out of everything.

    The 10-year NBA veteran formerly known as “Sugar Ray’’ leans back in the driver’s seat, drapes his legs over the center console, and rests his head on a pillow of tattered towels. He tunes his boom box to gospel music, closes his eyes, and wonders.

    Williams, a generation removed from staying in first-class hotels with Larry Bird and Co. in their drive to the 1985 NBA Finals, mostly wonders how much more he can bear. He is not new to poverty, illness, homelessness. Or quiet desperation.

    In recent weeks, he has lived on bread and water.

    “They say God won’t give you more than you can handle,’’ Williams said in his roadside sedan. “But this is wearing me out.’’

    A former top-10 NBA draft pick who once scored 52 points in a game, Williams is a face of big-time basketball’s underclass. As the NBA employs players whose average annual salaries top $5 million, Williams is among scores of retired players for whom the good life vanished not long after the final whistle.

    Dozens of NBA retirees, including Williams and his brother, Gus, a two-time All-Star, have sought bankruptcy protection.

    “Ray is like many players who invested so much of their lives in basketball,’’ said Mike Glenn, who played 10 years in the NBA, including three with Williams and the New York Knicks. “When the dividends stopped coming, the problems started escalating. It’s a cold reality.’’

    Williams, 55 and diabetic, wants the titans of today’s NBA to help take care of him and other retirees who have plenty of time to watch games but no televisions to do so. He needs food, shelter, cash for car repairs, and a job, and he believes the multibillion-dollar league and its players should treat him as if he were a teammate in distress.

    One thing Williams especially wants them to know: Unlike many troubled ex-players, he has never fallen prey to drugs, alcohol, or gambling.

    “When I played the game, they always talked about loyalty to the team,’’ Williams said. “Well, where’s the loyalty and compassion for ex-players who are hurting? We opened the door for these guys whose salaries are through the roof.’’

    Unfortunately for Williams, the NBA-related organizations best suited to help him have closed their checkbooks to him. The NBA Legends Foundation, which awarded him grants totaling more than $10,000 in 1996 and 2004, denied his recent request for help. So did the NBA Retired Players Association, which in the past year gave him two grants totaling $2,000.

    Continued in article


    "A Home Is a Lousy Investment:  Today's young people would be foolish to imitate their parents and view ownership as the cornerstone of personal finance," by Robert Bridges, The Wall Street Journal, July 11, 2011 ---
    http://online.wsj.com/article/SB10001424052702304259304576375323652341888.html?mod=djemEditorialPage_t

    At the risk of heaping more misery on the struggling residential property market, an analysis of home-price and ownership data for the last 30 years in California—the Golden State with notoriously golden property prices—indicates that the average single family house has never been a particularly stellar investment.

    In a society increasingly concerned with providing for retirement security and housing affordability, this finding has large implications. It means that we have put excessive emphasis on owner-occupied housing for social objectives, mistakenly relied on homebuilding for economic stimulus, and fostered misconceptions about homeownership and financial independence. We've diverted capital from more productive investments and misallocated scarce public resources.

    Between 1980 and 2010, the value of a median-price, single-family house in California rose by an average of 3.6% per year—to $296,820 from $99,550, according to data from the California Association of Realtors, Freddie Mac and the U.S. Census. Even if that house was sold at the most recent market peak in 2007, the average annual price growth was just 6.61%.

    So a dollar used to purchase a median-price, single-family California home in 1980 would have grown to $5.63 in 2007, and to $2.98 in 2010. The same dollar invested in the Dow Jones Industrial Index would have been worth $14.41 in 2007, and $11.49 in 2010.

    Insert Graph

    Here's another way of looking at the situation. If a disciplined investor who might have considered purchasing that median-price house in 1980 had opted instead to invest the 20% down payment of $19,910 and the normal homeownership expenses (above the cost of renting) over the years in the Dow Jones Industrial Index, the value of his portfolio in 2010 would have been $1,800,016. The stocks would have been worth more than the house by $1,503,196. If the analysis is based on 2007, the stock portfolio would have been worth $2,186,120, exceeding the house value by $1,625,850.

    In light of this lackluster investment performance, and in the aftermath of the recent housing-market collapse, why is there such rapt attention to the revival of the homebuilding industry and residential property markets? The answer is that for policy makers whose survival depends on economic recovery, few activities have such direct, intense and immediate positive economic impact as new home construction.

    Continued in article

    Jensen Comment
    There's a huge difference between owning rental property versus owning a residence for yourself, although dealing with tenants is sometimes a real pain in the tail. If you're handy with repairing rental property located in an area where there's huge demand (such as near a college campus or medical center), the returns can be quite high for property purchased when the real estate market is on the down side and mortgage rates were low --- such as in 2011. There are also added tax breaks such as deductions for repairs, insurance, and depreciation. But on your personal residence the capital gains are no longer as attractive as they were in the days of your ancestors. Plus Congress is debating whether to do away with deductions for residence mortgages, although I've great faith in the immense power of the banking and real estate lobbies.

    Home ownership, until recently, was a very good inflation hedge. The above article tends to imply that inflation-adjusted returns may not be so great in the future unless you purchased your home at a really low price in a distressed market that shows signs of relatively good recovery such as in Texas versus California. Rural property and vacation properties are not so hot in terms of expected recovery. For example, small towns in the farming regions of the mid-west, like my home state of Iowa, have dismal chances of recovery as factory farms drive off small farmers and the rural towns small farmers support. My grandfather's well-maintained five bedroom house in Swea City, Iowa recently sold for less than $10,000. And over half of downtown Swea City is boarded over with plywood. I'm amazed that more owners have not torched buildings just to collect the insurance.

    Anticipated fuel price increases will affect real estate values. Property values may decline for home owners now located 30 or more miles from where most of the jobs are located. On the other side of the coin, properties closer to work centers may have increasing returns if they are in areas of good schools. Dangerous and/or lousy schools always hurt the values of real estate. Another Hurricane Andrew might wipe out real estate prices in South Florida due, in part, to unaffordable hurricane insurance.

    Your biggest worry as a home owner trying to sell these days is that no serious buyer even wants to view the property let alone make an offer unless you are willing to sell at a huge loss. The minister here in our Sugar Hill Community Church had a high-value former home in Grand Junction, Colorado. It took over three years to even have a potential buyer view the property. Many owners are finding they cannot sell at prices above the amortized balance on their mortgages. Owners often simply pack up and leave the keys with their banker, thereby wiping out all the equity built up in the home.

    Of course there are various advantages and disadvantages of home ownership other than investment prospects. On the plus side many people like me find joy in taking care of a home and the land that surrounds the home --- more joy than we would find if we only rented the property.

    In some cases ownership is the only alternative for a quality home on a long-term basis. For example, Stanford University provided on-campus land for faculty housing where, on a campus lot leased cheaply for 99 years, faculty could build their own houses under a condition that when they rent or sell these houses it will be to somebody in the Stanford community (faculty or staff or visiting scholars). It's usually possible for someone new to Stanford to rent a professor's house on this campus land. But such rentals are likely only short term for a year or two such that somebody new to Stanford who really wants to live on campus for the long haul really has to buy a home and not rent. When I was invited back to Stanford for two think-tank years, I rented a geology professor's home for one year and an economics professor's home the second year. These homes were both only a few blocks from where Stanford accounting professors Chuck Horngren, Bill Beaver, and Joel Demski had built their campus homes.

    A drawback to home ownership in general, however, is that it's getting harder and harder to sell a house without taking a beating financially unless the property is purchased at very, very distressed prices. Some banks and towns are selling foreclosed homes very cheap. For example, a friend up here in Sugar Hill, NH recently purchased a foreclosed home at a third of its appraised value for property taxes. The problem is that for property taxes, the tax appraiser subsequently refused to lower the appraisal value down to the purchase price, i.e., the property taxes remained relatively high on this foreclosed property after it was resold at a 'bargain basement" price.. The tax assessor stated that Sugar Hill will not lower the property tax because of a "bargain basement" purchase price. Hence, buyers receiving good deals on purchase prices will not necessarily receive similar good deals when the property tax bills are received twice a year on this good deal purchase. Tax appraisal values may be much higher than the transacted purchase prices if the the tax appraiser deems the purchase prices as bargain basement prices on foreclosed properties.

    Home Ownership is Never "Free" Even When You Own Your Home Free and Clear of First and Second Mortgages
    Put another way, if a buyer pays more than the tax appraisal value, the tax appraisal value will be soon be raised for property tax purposes since all transacted real estate prices must be reported to the taxing authorities. But if the buyer pays less than the tax appraisal value, the tax appraisal value will not be lowered for property tax purposes unless the property owner is successful in a costly lawsuit in Superior Court. This means that most  new owners of Sugar Hill properties are paying property taxes at much higher appraised values than what they can realistically expect if they sell those properties in today's depressed real estate market. I think this is a fact of life in most other parts of the United States at the moment. And if the courts force property tax districts to set property tax appraisals at more realistic real estate value estimates, then the property tax districts will just set the tax rates at levels needed to support rising local, county, and school district budgets.

    Another huge ownership drawback is that in many states like New Hampshire, property taxes have become the primary means of local town, county, and school financing. Hence, property taxes are markedly rising on homes even if their value is on the decline. Of course, renters of homes are indirectly paying the property taxes on homes. But landlord tax breaks (such as for depreciation) can be factored in to reduce somewhat increasing property taxes. Also renters often accept less spectacular houses to live in knowing that these houses are not investments and that they are free to relocate in a year or less with no transactions cost and trauma of trying to find buyers for their rental homes.

    The point here is that many, many home owners are having second thoughts about ever again purchasing homes unless the homes can be purchased at exceedingly low bargain basement prices to justify the relatively high and ever-increasing annual property taxes due on those properties. Or there must be some very unique attributes that makes the property attractive to buyers such as golf course frontage, ocean frontage, lake frontage, mountain views, or a short walking/bicycle distance to a Stanford University faculty office.

    Aside from a home plus a rural farm I inherited in Iowa, I owned three houses (one in Michigan, one in Maine, and one in Florida) during the era where home ownership was a great investment with values rising about 10%- 20% each year on average. I also owned one house in Texas in a later era where I lost 15% (even more loss if I adjust for inflation) of my 24-year investment and breathed a great sigh of relief that the only serious prospect (after ten months)  to look at this big house (4,500 square feet and my last-ever swimming pool)) made an offer. And I sold this San Antonio house in 2006 before the real estate bubble burst!

    I suspect I will also lose a substantial amount that I invested in my present scenic and comfortable cottage. But, since I hope to remain here until the day I die, I don't care so much about that loss ---
    http://faculty.trinity.edu/rjensen/NHcottage/NHcottage.htm

    In the our case, a home is far more than a financial investment even if it is a 150-year old money pit ---
    http://en.wikipedia.org/wiki/The_Money_Pit

    July 11, 2011 reply from Hossein Nouri

    Bob:

    I think it depends on when you start your initial investment date. I purchased $35,000 of mutual funds (10 different categories) in 1996 and at present its value is about $42,000 (20% increase or 1.33% a year). I also purchased a condo in 1999 for $85000 and at present it is $200,000 (135% increase or about 10% a year). It also provides about $6000 positive cash flow every year or about 7% of original cost. My retirement since 1992 also is not doing much better than my mutual fund investment.

    So, my suggestion to all young people is to buy property, but in good location. At least you have something tangible in hand and not a piece of worthless paper which is manipulated by all sharks in the Wall street.

    Hossein Nouri

    July 11, 2011 reply from David Fordham

    Bob: I'm assuming the author is announcing a change rather than trying to correct a myth, because I would disagree with him if he's doing the latter... up until the last four years, that is.

    I would think it would be a very interesting study to look at a possible relationship between widespread home ownership in America (and possibly other countries) and social-class mobility of the middle-class. Home ownership served as a major source of wealth for my great-grandparents, grandparents, and my parents' generations, and even for my generation. Most of my own current non-retirement net worth was generated as roll-over gains on homes which I sold as the company transferred me around the country during my business career.

    By contrast, in Europe, I saw a major social-class gap between the owners of rental properties, and the renters. In talking anecdotally with friends, they seemed to hold the view that in general, rich people own homes (country estates, townhomes, subdivision houses, city flats, etc.), and working-class stiffs rent those properties from them. They felt that most of the European middle-class population: (1) were renters rather than owners, and (2) were unable to save enough to materially increase their net worth the way Americans do by owning homes and watching them appreciate in value, and thus (3) were unable to climb the socio-economic ladder and deliver to their kids a better life the way most Americans have been doing for their children.

    With apologies to Jagdish, the "caste inheritance" system whereby ones' children end up in the same socio-economic level as their parents, was somewhat more prevalent in Europe (albeit not at the trade/craft/occupation level as in India, but at the socio-economic level).

    For example, my father greatly exceeded his father's level, as I have exceeded my father's, and my sons are almost ready to exceed me, while many of our friends in Europe were about where their parents and grandparents had been: children of blue collar workers became blue collar workers, etc.

    Of course, this might be due to educational institutions, tradition, and many other factors besides home ownership. But since home ownership was such a wealth-builder (e.g., a GOOD investment) for about 100 years, I can't help but suppose an impact.

    So I'm very curious as to what the current supposed trend (identified in your article, of moving away from the "home-ownership for every family" model to the "most everybody is renting their abode" will do to the traditional American middle-class.

    It's going to be an interesting next 50 years or so.

    David Fordham

    July 11, 2011 reply from Bob Jensen

    Hi David,

    It will be very difficult to isolate the impact of home ownership apart from other factors affecting the U.S., including birth control technology, tax law changes, trends in delaying marriage, trends in couples living together without marriage, reduced numbers of children per household, career mobility, government policy on welfare that almost destroyed families the some population sectors, collapse of housing values, increasing proportion of women having long-term careers, etc.

    Bob Jensen

    Bob Jensen's helpers for personal finance are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers

     


    Investment Clubs, Hedge Funds, and Tax Implications

    Investment clubs commenced with friends in communities and/or work places that sometimes made social events out of studying investments and pooling small amounts of money in a fund that in turn was managed by the group as a whole ---
    http://en.wikipedia.org/w/index.php?title=Special%3ASearch&redirs=0&search=Investment+club&fulltext=Search&ns0=1

    I also think of an hedge fund as a much larger investment club where a professional investor generally manages the investments for a group of individuals who join that index fund. Hedge funds, like lower end investment clubs, do not sell shares in the club to the public in general. An advantage and a disadvantage of not going public is that such funds, until recently, are not subject to state and Federal securities laws and SEC oversight, although since the adverse publicity (read that Madoff Hedge Fund) of the failed attempts are being made by lawmakers to rein in on hedge funds --- http://en.wikipedia.org/wiki/Hedge_fund
    The Madoff Hedge Fund turned out to be the largest Ponzi Scheme in the World (aside from the Social Security Fund of the U.S. which is a Ponzi scheme not yet shut down).

    Investment Club Software ---
    http://en.wikipedia.org/wiki/Investment_club_software

    An Investment Club Helper Site ---
    http://investmentclubsonline.com/result.php?Keywords=Investment%20Clubs
    Note that investment clubs should understand state and local tax laws regarding investment club returns and liquidations.

    IRS Publication 550 (2008), Investment Income and Expenses
    http://www.irs.gov/publications/p550/index.html

    Abusive Tax Scheme Investigations - Fiscal Year 2009 ---
    http://www.irs.gov/compliance/enforcement/article/0,,id=187267,00.html

    Bob Jensen's taxation helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    A Nobel Laureate Talks About the 4% "Rule" in Personal Finance
    Many retirees are advised to follow the 4% rule for managing spending and investing. William F. Sharpe and his co-authors argue that following this advice can lead to overpayments and surpluses. To avoid these pitfalls, retirees also have to have a clear idea of how much risk they are willing to take.
    Stanford Graduate School of Business News, April 2010 ---
    http://www.gsb.stanford.edu/news/research/sharpe_4percent.html
     


    "What You Need to Know About Socially Responsible Investing," by Adam Bold, Yahoo Finance, April 19, 2011 ---
    http://finance.yahoo.com/news/What-You-Need-to-Know-About-usnews-2251466802.html?x=0


    Technology for Personal Finance
    "Goalkeeping Gets Easier in the Finances Arena New Mint.com Feature Offers User-Friendly Options That Help Savers Set Up Budget Objectives and Stick to Them," by Katherine Boehret, The Wall Street Journal, June 30, 2010 ---
    http://online.wsj.com/article/SB10001424052748704911704575326914251218780.html

    When most people hear the word "budget," they groan about all the numbers and spreadsheets involved in setting financial goals. Instead they procrastinate and continue spending without any specific savings goals. Case in point: I recently postponed a meeting with my financial planner because I didn't have the energy after a long business trip to work through my finances.

    Now Mint.com, a website that already offers user-friendly options for studying how one's money is spent, has introduced an easy way to set budget objectives, link them to accounts and learn specific steps on how to reach those goals. The goals can even be personalized with digital photos, like an image of the car you're saving up to buy. And this service, which launched Tuesday, doesn't cost a cent.

    I've been testing Intuit Inc.'s free, updated Mint.com service, specifically focusing on its new Mint Goals feature. The idea of adding goals that tie into real accounts has been a long time coming for the finance-management website. Mint previously offered a Planning section on its site, but it required too much manual input, including setting up personal budget categories, and guesswork about how much one should spend.

    The Goals feature uses pop-up windows where users can quickly input data, like annual salary, to get estimates on how much they can afford to spend on things like a vacation, as well as how much they need to save for that vacation. Monthly savings estimates can be set to aggressive savings plans or conservative ones with just a mouse click.

    Finances in One Place
    Mint.com has been around for almost three years and is already used by millions of people. Its proprietary algorithms encrypt data so people will feel confident enough to input their usernames and passwords for their online financial accounts, allowing them to see all of their financial activity in one place. These accounts include those tied to credit cards, banks, retirement savings and others. Mint is known for displaying colorful visuals like pie charts and graphs, so it's easy for people to see where they're spending their money or how it's being invested.

    Mint Goals is a new tab on the Mint.com site, and clicking on it directs users to a group of eight popular goals and one that can be customized (more will be added over time). The preset list includes goals to get out of debt, buy a home, buy a car, save for college, take a trip or save for retirement. A digital checklist in each goal called "Next Steps" gives people serious, doable tasks to complete, so they can actually make progress toward a goal in ways other than just putting money aside. This instant gratification saved me from doing a lot of calculating.

    The Best Account
    When you set up a goal for the first time, Mint suggests what type of account would work best for saving toward it. Examples include a 529 savings plan for people who are saving to put their kids through college or a Roth IRA for retirement savings. Mint will also tell you the provider with the best interest rate.

    Unlike some other websites that encourage saving, like SmartyPig.com, Mint isn't a bank, so you'll have to leave the Mint site to create accounts and manage money transfers rather than starting them right on the site. Aaron Patzer, the company's founder and CEO, expects the site will enable setting up savings accounts and money transfers by the end of this year.

    Each goal includes the overall amount of money intended to be saved, today's balance, planned and projected dates for reaching the goal and how much has been saved this month (like $200 of $750). I liked looking at Mint's colorful thermometers, which quickly showed me how I was progressing in a particular goal.

    For example, the Buy a Home goal checklist includes steps like finding a Realtor, getting homeowner's insurance and getting prequalified for a loan. A panel beside each of these items also offers an educational explanation of what these steps really mean. Many explanations include links to a blog called MintLife, where blog posts from Mint employees and some freelancers offer deep explanations about financial questions.

    Ads With Context
    The Goals feature comes with contextual ads, which help it remain free. One checklist item suggests opening a high-yield savings account and also offers links to the Discover and American Express websites, which offer the accounts. If you've started a Mint Goal to save for a trip to Iceland, travel insurance is suggested, along with Web links to sites that sell trip insurance.

    While these links might allow people to get started right away on a particular task, they also beg the question of whether these are the best options for users—or just the biggest advertisers on Mint. Mr. Patzer explained that companies for these ads are chosen according to what's best for the user and are selected from a list of savings options ranked by the site's editors.

    Goals can be linked to several of your accounts on Mint so they're updated with real-time data. A long-term retirement goal can link to a 401(k), brokerage account and retirement account. If the stock market takes a dive and money is lost in an account, that loss is automatically reflected in the overall goal's balance. If you tie a savings account to a goal to save for a house, every dollar added to that account (on the bank's end) is automatically reflected in the goal.

    Mint already gave people a visually engaging way to know more about what their money is doing, but Mint Goals give people a real reason to come back to the site more often.

    Mint.com home page --- http://www.mint.com/

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    Spent:  A Poverty A Game 23% of America Does Not Need to Play
    Adrienne Gonzalez, Jr. Deputy Accountant, February 26, 2011 ---
    http://www.jrdeputyaccountant.com/2011/02/game-23-of-america-does-not-need-to.html

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelper

     


    "2010: The Year of the Roth Conversion?" by Rich Arzaga, Journal of Accountancy, January 2010 ---
    http://www.journalofaccountancy.com/Issues/2010/Jan/20091743.htm

    This year will be the Year of the Tiger, according to Chinese custom, but it also could be remembered by investors as the Year of the Roth Conversion, a decision that can have a large impact on investors’ ability to build wealth during their lifetime and preserve wealth for beneficiaries.

     

    Prior to 2010, anyone (except married taxpayers filing separately) with an annual adjusted gross income (AGI) of no greater than $100,000 could convert a traditional IRA to a Roth IRA. The AGI cap has prevented higher-income earners, a class of savers that might have benefited most from this strategy, from participating. However, under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) these previously ineligible taxpayers will be eligible to participate starting this year (including married but separate filers). In fact, there is an incentive to take action in 2010: Everyone who converts this year may defer and spread income recognition from the conversion over tax years 2011 and 2012. A conversion in 2010 thus could reduce the marginal tax rate and total taxes due on what otherwise would be a larger single-year distribution. The 10% penalty tax otherwise imposed on early or excess distributions from an IRA does not apply. A conversion could be an attractive retirement income and estate planning strategy for wealthy individuals and high-income earners who seek to reduce taxes later in life and transfer more wealth to beneficiaries tax-free. But like any other approach to income and taxes, this decision is eventually based on a set of sustainable assumptions and specific objectives of the taxpayer.

     

    ADVANTAGES OF A ROTH ACCOUNT

    A chief advantage of a Roth IRA is that it has more flexible rules concerning distributions. Also, taxpayers who are otherwise unable to contribute to a traditional IRA can take advantage of a Roth IRA’s appreciation free from tax on gains. Other advantages of a Roth IRA include:

     

    • In most instances, contributions can be withdrawn at any time without penalty. Earnings may be withdrawn without tax or penalty if the taxpayer is at least age 59½ and has held the Roth account for at least five years. Similar strategies that provide for tax-free growth and withdrawal are the IRC § 529 plans for college education and cash-value life insurance policies. Each has its strengths and limitations.
    • With a Roth IRA, there are no required minimum distributions (RMDs) like those that apply to traditional IRAs when the taxpayer reaches age 70½. For affluent families with sufficient resources for retirement income, the RMD can seem an unnecessary expense with a confusing formula. From a client’s perspective, eliminating RMDs can provide a great sense of relief from the annual hassle of calculating and managing these distributions.
    • Unlike with traditional IRA accounts, taxpayers can continue to contribute to a Roth IRA after reaching age 70½—also an attractive feature as Americans redefine retirement and continue to be industrious into later years. Starting in 2010, a retired couple can contribute $12,000 each year (including the “over- 50 make-up” amount) into Roth accounts. The AGI limits on regular contributions to a Roth IRA still apply, but it is possible to make nondeductible contributions to a traditional IRA and convert them to a Roth, regardless of AGI. These contributions grow free of income tax indefinitely, creating significant value for taxpayers as well as their beneficiaries.
    • A tax-diversified retirement distribution strategy also helps with Social Security planning. Up to 85% of Social Security benefits are taxable. When calculating modified adjusted gross income (MAGI) for Social Security purposes, taxpayers must include all taxable and tax-exempt income and 50% of their Social Security benefits, but not Roth IRA distributions. Having a Roth IRA to supplement retirement income can be very important in managing the taxability of Social Security benefits.

     

    IDEAL CONVERSION CANDIDATES

    Some taxpayers may benefit more than others from converting to a Roth IRA. Assuming there are no cash flow issues, risk management gaps, other tax planning considerations that need to be weighed against the benefit of a conversion, advance tax issues at play, or adverse legislative changes, taxpayers who stand to benefit the most are those who:

     

    • Are wealthy.
    • Seek to reduce estate settlement costs.
    • Won’t need to draw income from converted retirement accounts.
    • Are young, high-income earners.
    • Believe their tax bracket will be the same or higher in retirement, or more specifically, when they draw income from their qualified retirement accounts. The attractiveness of traditional IRAs and qualified retirement plans depends on the assumption that taxpayers will have a lower effective tax rate after retirement, when the deferred taxes on the savings will come due. Conversely, taxpayers whose tax rate seems more likely to be the same or higher in retirement might just as soon pay taxes on income now and accumulate tax-free gains. Consider the conversion comparison in Exhibit 1.

    Continued in article

    Bob Jensen's taxation helpers are at http://faculty.trinity.edu/rjensen/BookBob1.htm#010304Taxation


    History and Strategy of Poker --- http://en.wikipedia.org/wiki/Poker
    Warning:  Gambling online is not recommended since the games tend to be rigged according to an expose on CBS Sixty Minutes
    Interestingly many of the online games are run by Canadian Native Americans not subject to gambling laws in Canada.
    CBS Sixty Minutes tied some online cheating to organized crime located --- Guess?  Would you believe Las Vegas.

    "Online Poker Study: The More Hands You Win, the More Money You Lose (even if the games are honest) ," Science Daily, January 13, 2010 ---
    http://www.sciencedaily.com/releases/2010/01/100112152410.htm

    The likely reason, said Cornell sociology doctoral student Kyle Siler, whose study analyzed 27 million online poker hands, is that the multiple wins are likely for small stakes, and the more you play, the more likely you will eventually be walloped by occasional -- but significant -- losses.

    This finding, Siler said, "coincides with observations in behavioral economics that people overweigh their frequent small gains vis-à-vis occasional large losses, and vice versa." In other words, players feel positively reinforced by their streak of wins but have difficulty fully understanding how their occasional large losses offset their gains.

    Continued in article

    "How Poker Can Make You a Better Investor," by Bob Frick, Kiplinger, January 7, 2010 ---
    http://www.kiplinger.com/features/archives/how-poker-can-make-you-a-better-investor.html?kipad_id=x

    Ever watch professional poker players calculating the odds, then coolly dissecting their opponents? Many of the same skills the top players use can help you be a better investor. Success at both investing and gambling, it turns out, has much to do with controlling emotions. And playing a little poker can help you recognize, and avoid, emotional traps that endanger your most important stack of chips -- your portfolio. But you need to know what to look for.

    The psychological issues that drive investing and gambling decisions aren’t merely similar. They are “identical,” says Andrew Lo, director of the Massachusetts Institute of Technology Laboratory for Financial Engineering and one of the leaders in the field of behavioral finance (listen to our podcast with Lo). It’s easy to find investment professionals and professional poker players who agree. Says poker pro Daniel Negreanu, who holds four World Series of Poker bracelets and two World Poker Tour Championship titles: “Having emotional stability and emotional control is key to both investing and poker.”

    Can you gain that control at a poker table? Aaron Brown is among many who think so. Brown is a onetime finance professor and former portfolio manager for Prudential Securities who is now a risk manager for hedge funds. He’s also the author of The Poker Face of Wall Street (Wiley, $17). Says Brown: “People tell me playing poker is risky. Investing for a financial lifetime without playing poker is risky. I’d much rather make these mistakes at the table.”

    And by mistakes, Brown means the common emotional errors that plague investors. The burgeoning fields of investor psychology and behavioral finance are uncovering more about these errors all the time, and they are the subject of a year-long series co-produced by Kiplinger’s and Nightly Business Report on PBS.

    By playing some poker, “you can find out your tendencies to make emotional mistakes, and then you can guard against them,” says Frank Murtha, a behavioral-finance consultant with a PhD in counseling psychology (his dissertation explored the effect of psychological errors in gambling). Murtha helps clients from investment banks, financial-services companies and trading firms to avoid making psychological errors.

    He’s also co-founder of MarketPsych, which offers psychological-training services to traders and money managers and which offers a number of online tests that any investor can take to better understand his or her own psychological makeup.

    Most investors make few investment decisions over a year, or even over a lifetime. But experts agree that just a few hours of playing poker will take you through literally dozens of financial decisions -- potentially a lifetime’s worth if you were making those decisions about your portfolio. By playing poker while keeping in mind the psychological errors that are also common to investing, you can get a lifetime’s worth of training in one evening.

    What are these errors? We’ve picked five of the most common, and all can be found both in investing and in gambling. Click on each one below to learn how they appear in poker and investing and to find out how you can use poker to help train yourself not to make these errors.

    Greed
    Overconfidence
    Regret
    Seeing patterns
    Holding on to losers

    More on Poker and Investing
    How Texas Hold 'Em Simulates Investing
    How Deepak Chopra Helped Me Become a Better Poker Player
    SPECIAL REPORT: Your Mind, Your Money

    Next page: GREED

     

    Bob Jensen's personal finance and  investment helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers

     


    Question
    What is hyperbolic discounting?

    "Psychology of poverty and temptation," by Chris Blattman, September 2009 ---
    http://chrisblattman.com/2009/09/15/psychology-of-poverty-and-temptation/

    Some people are impulsive and impatient; they prefer a dollar or a donut today far more than a dollar or a donut tomorrow, so much so that they’re willing to give up shocking amounts of dollars and donuts tomorrow for just one today. This is one reason, some say, that we see such high interest rates for short-term borrowing, from New York to Calcutta.

    Some people are not only impulsive and impatient, but inconsistently so. they care a lot about a dollar today versus tomorrow, but could care less between getting a dollar either 10 or 11 days from now. Economists call this ‘hyperbolic discounting’.

    Both behaviors–impatience and time inconsistency–could be a source of persistent poverty.

    Or not. Abhijit Banerjee presented a new paper here yesterday, written with MIT colleague Sendhil Mullainathan. They look at a number of seemingly unusual behaviors by the very poor–from exorbitant rates of short-term borrowing to the low take-up of small, high-return investments. Impatience cannot explain the patterns, they say. The impatience approach also requires the poor think differently than the rest of the population.

    Another view: we’re all impulsive and impatient in the same way, but over a narrow range of goods that are quickly and cheaply satisfied. If you’re poor, these temptations are a big fraction of your income. If you’re even somewhat wealthy, they are not. Temptations are declining in income.

    The paper runs through half a dozen perplexing patterns of behavior, and shows that these simple assumptions can explain a great deal.

    This approach has a great deal in common with hyperbolic discounting, but is empirically distinct (and has very different policy implications). Parsing out and testing these subtleties strikes me as one of the most important frontiers in the study of poverty. Declining temptation, if true, could explain all sorts of odd behaviors. With more than a few Uganda and Liberia surveys on the horizon, I’m now scheming ways to test whether it’s true.

    It’s a difficult paper, especially for those uninitiated in micro-economic theory. Even if that sounds like you: the subtle points are worth the slog.

    For an intro to the subfield, see Senthil’s essay, Development economics through the lens of psychology. Another great resource is Stefano Dellavigna’s recent JEL article on evidence from the field. Both are ungated.

     Behavioral and Cultural Economics and Finance --- http://faculty.trinity.edu/rjensen/theory01.htm#Behavioral


    78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.
    Championship Rings in pawn shops, IRS vaults, Ponzi schemer stashes offshore, or in the clutches of ex-wives

    What on earth did athletes learn in college?

    Pros seem especially susceptible to Ponzi schemes. Some recent examples --- Click Here

    10 Ways Sports Stars (multi-millionaires) Go From Riches To Rags," by Lawrence Delevingne, Business Insider, September 18, 2009 --- http://www.businessinsider.com/10-ways-sports-stars-destroy-their-finances-2009-9

     Sports Illustrated article this year showed how shockingly common financial ruin is:

    • By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.
    • Within five years of retirement, an estimated 60% of former NBA players are broke.
    • Numerous retired MLB players have been similarly ruined.

    If that's not bad enough, the recession has made things even worse. Too much money in real estate; investments in Ponzi schemes; and poor financial advising have been exposed with the down economy.

    A sign of the times? More former stars are selling their championship rings for money than ever. "It's amazing that I heard the recession was over," says Timothy Robins, owner of Championshiprings.net, who buys bling from current and former pros and has seen a 36% increase in sales during the past year. "I'm getting more calls from players than ever. They're having a really hard time."

    While just about everyone has lost money over the past year, athletes tend to make particularly bad financial decisions, and it's not just reckless spending.

    How they lose their wealth --- Click Here
    http://www.businessinsider.com/10-ways-sports-stars-destroy-their-finances-2009-9#put-cash-in-a-ponzi-scheme-1

    The 10 ways sports pros blow their cash >>

    Jensen Comment
    The same goes for many, many movie stars like Debbie Reynolds who, very late in their lives, are "willing to work for food."

    The boots in Hollywood's Boot Hill are not stuffed with savings.

    How to avoid losing your money to fraud ---
    http://faculty.trinity.edu/rjensen/FraudReporting.htm

    Behavioral and Cultural Economics and Finance --- http://faculty.trinity.edu/rjensen/theory01.htm#Behavioral


    "The Best Online Tools (software, services) for Personal Finance," The Wall Street Journal, June 8, 2009 --- http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

    1. Budgeting Your Money

    2. Creating a Financial Plan

    3. Tracking Investments and Getting Advice
    4. Checking for Fraud
    5. Keeping Track of Credit
    6. Managing Loans

    Details at http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

    Bob Jensen's helpers for personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Bob Jensen's threads on Accounting Software ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware


    Money Market Funds Are Not as Risk Free as Bank Accounts
    What very few people are talking about, however, is a more radical solution to the moral hazard question raised by money market funds. Maybe the right approach now is to acknowledge the truth. Money market funds are not, in fact, turbocharged bank accounts. They are investment vehicles. However “safe” the securities they invest in, they contain an element of risk. Indeed, the very reason they yield more than savings accounts is that they are riskier. That’s how investing works. So maybe, in this post-Reserve Fund world, it’s time for the industry — and investors — to stop pretending that money funds are risk-free. As it turns out, there is a pretty simple way to do this. As it also turns out, the money market fund industry is dead-set against it.
    Joe Nocera, "It’s Time to Admit That Money Funds Involve Risk," The New York Times, August 28, 2009 ---
    http://www.nytimes.com/2009/08/29/business/29nocera.html?_r=2


    Follow the Herd:  Can you identify a moral hazard here?

    From the Finance Professor Blog on October 19, 2009 ---
    http://financeprofessorblog.blogspot.com/

    "KaChing, a Web site where 400,000 amateur and professional investors manage virtual portfolios. Others have logged on to see what the investors on the site are doing and make the same trades in their own real portfolios.

    On Monday, KaChing is to add a new twist. Customers can set up brokerage accounts that automatically mirror the trades of a money manager, some of them professionals.

    “The idea of an asset manager showing all his research, his holdings — it’s unheard-of,”"

    The trouble with mutual funds is that investors can feel as though they have put their money in a black box. The 90 million Americans with money in funds know little about fees, what securities their money is invested in and who is in charge . . . KaChing has attracted a roster of prominent early investors from Silicon Valley who have financed the company with $3 million. They include Marc Andreessen, co-founder of Netscape; Kevin Compton of Kleiner Perkins Caufield & Byers; and Jeffrey Jordan, chief executive of OpenTable, the online reservation service. The angel investors have also been investing their own money through KaChing during the pilot period. “The concept is great — the ability to tap into not just the wisdom of the crowd, but to be able to identify and invest with the particular geniuses in the crowd that stand out,” said Mr. Andreessen, who has invested $100,000 using the site.
    Claire Cane Miller, "Site Lets Investors See and Copy Experts’ Trades," The Wall Street Journal, October 19, 2009 ---
    http://www.nytimes.com/2009/10/19/technology/start-ups/19kaching.html?_r=1

    Jensen Comment
    Money managers are human. Some might loose their tempers at a company to the point they lead their herds off cliffs just to get back at a company. Some money managers may be secretly greedy for themselves or friends and family and lead their herds with hidden agendas based on greed. For example, this is one way for a money manager to help out one of his buddies who founded a small technology company with high financial risk at the moment.

    Stock pickers in the WSJ's "Heard on the Street" and other financial news sites are watched closely such that they are not manipulating their private accounts with hidden agendas that make themselves wealthy at the expense of readers.

    I'm not arguing that there's anything illegal or even unethical about KaChing's "new twist." I just feel that the lemmings should be aware of the moral hazard.

    The KaChing homepage is at
    http://www.kaching.com/

     


    Stocks are still the best investment for the long run. But maybe not for your long run.
    Justin Fox, "Are Stocks Still Good for the Long Run?" Time Magazine, June 15, 2009 --- http://www.time.com/time/magazine/article/0,9171,1902843-2,00.html
    Also see Jim Mahar's June 10, 2009 summary at http://financeprofessorblog.blogspot.com/
    In particular this references a study by Arnott that asserts that over the past 40 years the stock market underperformed the bond market. In my opinion, if you into bonds for the next 40 years they'd better be inflation-indexed bonds such as Treasury TIPs.

    Bob Jensen's threads on the Efficient Markets Hypothesis --- http://faculty.trinity.edu/rjensen/theory01.htm#EMH


    PBS Television will now answer your personal finance questions ---
    http://www.pbs.org/newshour/insider/business/jan-june09/pocketchange_05-05.html

    Personal Finance Helpers
    From Smart Stops on the Web, Journal of Accountancy, July 2008

    KEEPING IT SIMPLE
    www.bargaineering.com/articles
    This Smart Stop’s author puts together a “Blueprint for Financial Prosperity,” working and blogging through the complexities of personal finance. Articles include “Speed Up or Shift Up: Thinking About Your Income Path” and “Do You Have an Opportunity Fund?” Also find tax and investing coverage, plus reviews of financial planning and wealth management books. Every month, the author plays “Devil’s Advocate,” where he examines the other side of “mainstream” or “common sense” personal finance ideas. Recent “Advocate” posts include “Don’t Budget to the Penny” and “Don’t Just Buy Index Funds.”

    THIS WEEK IN PERSONAL FINANCE
    www.carnivalofpersonalfinance.com
    The Carnival of Personal Finance touts itself as “a traveling weekly showcase of the best blog articles on the topic.” The carnival is hosted by a different guest blogger each week. In every edition, you’ll find links to the guest editor’s picks of the week, typically highlighting five to 10 posts from various sources, which feature expert advice on professional sites or regular-Joe experiences on personal sites. You can submit your own post for consideration, view the schedule of upcoming hosts or just browse the wealth of archived articles.

    The AICPA maintains a financial literacy site at http://www.aicpa.org/financialliteracy/FeedThePig/

    Why mutual funds are dangerous investments --- http://hk.youtube.com/watch?v=irZi9YZVEyo
    This is good advice to a point. However, most investors have different circumstances such as liquidity preferences, tax complications, and different ages such that there may not be a safe index fund suitable for every investor.

    Center for Retirement Research at Boston College --- http://crr.bc.edu/

    Investment Clubs, Hedge Funds, and Tax Implications

    Investment clubs commenced with friends in communities and/or work places that sometimes made social events out of studying investments and pooling small amounts of money in a fund that in turn was managed by the group as a whole ---
    http://en.wikipedia.org/w/index.php?title=Special%3ASearch&redirs=0&search=Investment+club&fulltext=Search&ns0=1

    I also think of an hedge fund as a much larger investment club where a professional investor generally manages the investments for a group of individuals who join that index fund. Hedge funds, like lower end investment clubs, do not sell shares in the club to the public in general. An advantage and a disadvantage of not going public is that such funds, until recently, are not subject to state and Federal securities laws and SEC oversight, although since the adverse publicity (read that Madoff Hedge Fund) of the failed attempts are being made by lawmakers to rein in on hedge funds --- http://en.wikipedia.org/wiki/Hedge_fund
    The Madoff Hedge Fund turned out to be the largest Ponzi Scheme in the World (aside from the Social Security Fund of the U.S. which is a Ponzi scheme not yet shut down).

    Investment Club Software ---
    http://en.wikipedia.org/wiki/Investment_club_software

    An Investment Club Helper Site ---
    http://investmentclubsonline.com/result.php?Keywords=Investment%20Clubs
    Note that investment clubs should understand state and local tax laws regarding investment club returns and liquidations.

    IRS Publication 550 (2008), Investment Income and Expenses
    http://www.irs.gov/publications/p550/index.html

    Abusive Tax Scheme Investigations - Fiscal Year 2009 ---
    http://www.irs.gov/compliance/enforcement/article/0,,id=187267,00.html

    Bob Jensen's investment helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#WebsitesForInvestors

    Bob Jensen's taxation helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    Helpful Calculators free from the Florida Institute of CPAs --- http://www.ficpa.org/ficpa/ResourceCenter/Calculators

    Home Financing

    Personal Financing

    Investment

    Retirement

    Lease

    Calculator disclaimer

    The information provided by these calculators is for illustrative purposes only. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed.

    Presented by TimeValue Software ©2009

    Bob Jensen's threads on helpful calculators ---
    http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     

     


    Question
    In the public accounting profession, what's a PFS
    ?

    Hint
    PFS is a new credential to put after one's name --- it looks better than Pfffssssttt

    The American Institute of Certified Public Accountants (AICPA) and Texas Tech University's Division of Personal Financial Planning have announced a joint agreement to develop a new educational program that will lead to the AICPA's Personal Financial Specialist (PFS) credential. The program will officially begin in June 2009, but the AICPA and Texas Tech have announced that they will conduct a PFS Pathway beta program or test program at AICPA offices in Dallas November 10 through 14th. The PFS beta program consists of four days of intense comprehensive personal financial planning case study in 12 technical areas, including estate planning, employee benefits, investment planning, financial independence, and income tax planning. Participants take an eight-hour multiple choice exam of approximately 200 questions on the fifth day.
    "AICPA and Texas Tech announce new pathway to PFS credential," AccountingWeb, August 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=105793

    Bob Jensen's threads on personal finance are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Bob Jensen's threads on credit reporting are at http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO

    Bob Jensen's helpers for finding a financial advisor are at http://faculty.trinity.edu/rjensen/fees.htm

    Bob Jensen's career helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

    Mutual Funds: 10 questions to test your IQ (ten answers every investor should know by heart) ---
    http://www.azcentral.com/business/consumer/articles/2009/04/10/20090410biz-MutualFundsQuiz0410.html

    "How to Prevent Investment Adviser Fraud," by Brian Carroll, Journal of Accountancy, January 2006 --- http://www.aicpa.org/pubs/jofa/jan2006/carroll.htm


    EXECUTIVE SUMMARY
    SECTION 206 OF THE INVESTMENT ADVISERS ACT OF 1940 provides guidelines for investment advisers on what constitutes fraud.

    THE SUPREME COURT HAS HELD THAT THE ACT imposes a fiduciary duty on investment advisers to act in the best interest of their clients by fully disclosing all potential conflicts of interest.

    INVESTMENT ADVISERS SHOULD REVIEW CAREFULLY SEC and other disclosure requirements to ensure they clearly understand potential conflicts.

    INVESTMENT ADVISERS SHOULD REVIEW ALL SEC FILINGS, client marketing materials and other significant documents to ensure that they have appropriately disclosed all potential conflicts.

    Brian Carroll, CPA, is special counsel with the SEC in Philadelphia and an adjunct professor at Rutgers University School of Law, Camden, N.J.

    Alpha Return on Investment --- http://en.wikipedia.org/wiki/Alpha_(investment)

    What the professional investors don't tell you ---
    I downloaded this video --- http://www.cs.trinity.edu/~rjensen/temp/FinancialRounds.flv

    From the Financial Rounds Blog on September 4, 2009 ---
    http://financialrounds.blogspot.com/

    When I teach investments, there's always a section on market efficiency. A key point I try to make is that any test of market efficiency suffers from the "joint hypothesis" problem - that the test is not tests market efficiency, but also assumes that you have the correct model for measuring the benchmark risk-adjusted return.

    In other words, you can't say that you have "alpha" (an abnormal return) without correcting for risk.


    Falkenblog makes exactly this point:
     

    In my book Finding Alpha I describe these strategies, as they are built on the fact that alpha is a residual return, a risk-adjusted return, and as 'risk' is not definable, this gives people a lot of degrees of freedom. Further, it has long been the case that successful people are good at doing one thing while saying they are doing another.
     
    Even better, he's got a pretty good video on the topic (it also touches on other topics). Enjoy.

    You can watch the video under September 4, 2009 at http://financialrounds.blogspot.com/
    I downloaded this video --- http://www.cs.trinity.edu/~rjensen/temp/FinancialRounds.flv

    Bob Jensen's threads on Return on Investment (ROI) are at
    http://faculty.trinity.edu/rjensen/roi.htm

    Bob Jensen's threads on market efficiency (EMH) are at 
    http://faculty.trinity.edu/rjensen/theory01.htm#EMH

    50 Most Common Mistakes Made by Traders and Investors ---
    http://www.ratiotrading.com/2009/09/50-common-mistakes-most-traders-make/


    "Firms Take to The Tweetable Business Model," by Kim Hart, The Washington Post, March 9, 2009 --- Click Here

    Twitter, that microblogging tool that caught on with teens and twentysomethings using it to tell loyal followers what they're doing at any given time -- in 140 characters or less -- is now becoming part of the business strategy for a wide range of brands, from Skittles to Fairfax County.

    As exciting as it may be to hear about what your friends, or total strangers for that matter, ate for breakfast, some companies are realizing that a more effective use of Twitter is to mine it for clients, recruit employees and answer customer service questions.

    To that end, some businesses are starting to host Twitter tutorials for employees.

    Network Solutions, a Web-hosting and online marketing company based in Herndon, held a brown-bag lunch session last week to teach staffers how to sign up for a Twitter account, how to send messages to individuals and how to search for people who may be talking about the company in messages, or "tweets."

    Twitter is an easy way to create buzz for a new product launch or to alert customers to a service outage. Earlier this week, the Skittles Web site directed visitors to a Twitter search for the term "skittle" to see what people were saying about the candy. Attendees at conferences and other business-related gatherings already use the service to relate details on an unusually interesting session or to share news announcements.

    For example, at a conference focused on global health last month, philanthropist Bill Gates released a jarful of mosquitoes into a room to make a point about the spread of malaria.

    "And people found out about that first on Twitter," said Steven Fisher, community and social media manager at Network Solutions.

    Shashi Bellamkonda, Network Solutions' social media swami (yes, that's his real title), organized the tutorial, attended by about 30 people. He's a more prolific Twitterer than most, posting anywhere from five to 15 tweets per day about anything from his daily routine to the news. Big companies such as Dell are active in the Twitterverse addressing customer service issues, he said.

    Fairfax County government is also experimenting with Twitter, sending out announcements about snow-induced school closings and county board meetings.

    Companies are now accustomed to monitoring blogs and other consumer-generated content for mentions of brands -- in fact, companies such as Arlington-based New Media Strategies have made a profitable business out of it. Similarly, Bellamkonda wants Network Solutions employees to take notice of any questions, complaints or other mentions of the company that pop up on Twitter.

    W. Roy Dunbar, the firm's chief executive, said it is even more important to communicate with customers during an economic downturn. He said he gives his social media team free rein to experiment with new tools.

    "Next time, we'll conduct the meeting entirely in tweets," Bellamkonda said.

    It may be a short meeting.

    Rediscovering the Internet

    The crusade for government transparency and open data -- two of the biggest buzzwords in Washington since President Obama put them on his agenda -- has gained momentum over the past week.

    Vivek Kundra, the District's chief technology officer, was officially named as the federal chief information officer Thursday, ending months of speculation about what the brand-new job entails and what it means for how government agencies use technology.

    While the answers to those questions are still unclear, the announcement prompted a collective cheer from some local developers. As an example of what Kundra may do with federal technology projects, many of them point to the contest he held last year called Apps for Democracy, which challenged independent Web developers to come up with interesting ways to use government data.

    District-based Development Seed, a Web consulting group, mashed together government data and other online resources to create DC Bikes, a site with information about bike thefts, popular bike trails and other information for local bike enthusiasts.

    Continued in article

    March 10, 2009 reply from Roger Debreceny [roger@DEBRECENY.COM]

    Gerry Trites asked about Investor Relations on Twitter. I follow his countryman, Dominic Jones (http://twitter.com/irwebreport and http://www.irwebreport.com/) closely. He points to much going on on Twitter. See, for example, http://preview.tinyurl.com/amw98y on “eBay’s lawyers are wrong to delete earnings call information” and http://preview.tinyurl.com/avv4yl on “SEC disclaimers in the age of Twitter”.

    BTW, if you want to see your portfolio bump around rock bottom in real time, you can get stocktwits at http://stocktwits.com/ ..

    Of course, you can also follow me on Twitter at www.twitter.com/debreceny and see very important, indeed earth shattering, information such as “OMG I fractured my big toe and can’t ride my bike for a month” and “Yeah, my toe is OK and I can ride again!” <Bg>

    Regards
    Roger

     


    Question
    Did your grandparents give you a prepaid college 529 savings account?

    "Volatility Hits Prepaid 529s," by Jillian Mincer, The Wall Street Journal, March 9, 2009 ---
    http://online.wsj.com/article/SB123663406748876025.html?mod=todays_us_personal_journal

    The market volatility that has squeezed pension plans is having a similar impact on one kind of college 529 savings account -- the prepaid plan.

    Like pensions, almost all of the plans have seen their assets significantly drop as their investments have plunged. At the same time, college costs have kept rising.

    At least one state -- Alabama -- has notified plan participants that it will be considering options, which could include closing enrollment, later this month.

    "It's a potential crisis for at least some of these plans," says Joe Hurley, founder of www.savingforcollege.com, an independent Web site that provides information about 529 plans. "They may go to the state and ask for funds."

    About a dozen prepaid 529 college savings plans are available. While details of the plans vary, all allow families to buy all or part of a college education at today's prices. Typically, the accounts are guaranteed by states to at least match in-state tuition increases.

    Continued in article


    Question
    Are risky returns higher or lower than the risk free rate on average over long periods of time?

    First learn about the theory of mean reversion at http://en.wikipedia.org/wiki/Mean_reversion

    "Reversion to the Mean Why treasuries have outperformed equities," The Economist via CFO.com, November 10, 2008 --- http://www.cfo.com/article.cfm/12585264/?f=rsspage

    GREATER risk means greater reward, right? Wrong, at least over the last 25 years. As the graph shows, Treasury bonds have actually outperformed riskier asset classes over the last quarter century. That is despite the long equity bull-market from 1982 to 2000.

    Treasury bonds have understandably beaten equities this year, when the financial sector has been in crisis and the economy headed towards recession. The government bond-market always performs well at times of crisis. But the last 25 years have been, by and large, a pretty good time for global economies, marked by the "great moderation" in inflation and growth.

    But the last quarter century has been positive for all asset classes, with government debt, corporate bonds and Treasuries all returning an average of around 10% a year in nominal terms. So why have Treasuries done so well in relative terms? The explanation, as Jim Reid of Deutsche Bank explains, lies in reversion to the mean.

    Asset classes can go through long periods when they underperform, leaving them cheap and ripe for revaluation. That happened to Treasury bonds, which suffered four consecutive decades of negative real returns from the 1940s through the 1970s. At that point, Paul Volcker, then the Federal Reserve chairman and now an advisor to President-elect Barack Obama, successfully brought down inflation, allowing investors to lock in double-digit Treasury yields. It was one of the great historical buying opportunities.

    Such a period is extremely unusual. Since 1900, the average annual return from Treasuries has been 4.6%, or 1.5% after allowing for inflation. In contrast, American equities have delivered 9.3%, or 6% in real terms.

    The current poor performance of stockmarkets reflects, of course, a reversion to the mean after the excesses seen during the dotcom bubble, when the rolling 25-year annual return of US equities reached a remarkable 16%. On a 10-year basis, the return from equities has now slumped to minus 3.5% in real terms.

    . . .

    There are two important caveats. First, this kind of analysis is no use at all in predicting short-term movements. Second, markets spend very little of the time at fair value (on Mr Reid's calculations), tending to veer wildly from one extreme to another. All three asset classes might still be overvalued; after all, the figures show returns over the last quarter century have been well above average.

    Jensen Comment
    This speaks in favor of jumping out of equity at the instant a bubble begins to burst. but it's generally difficult to identify a true bubble early on. Plus the media is always urging the public not to panic and to hang on to equity investments on the theory that what goes down goes back up. The media, however, probably does not have a clue about mean reversion.False positive bailouts can lead unnecessary transactions costs. Also if your equity investment is tied up in a pension fund like CREF, you don't have fast reacting options.


    Helpers in planning for retirement --- http://www.plan-for-retirement.com/

    Naked Shorts:  Irreverent Investment Ideas --- http://nakedshorts.typepad.com 

    Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

    Bob Jensen's investment helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#Finance


    Question
    Where can you find one of the best definitions of hedge funds and summaries of alternative hedge fund strategies?

    Answer
    Where else than Wikipedia --- http://en.wikipedia.org/wiki/Hedge_fund

    Bob Jensen's rather puny set of threads in comparison is under the H-terms at http://faculty.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#H-Terms


     


    Tax Breaks for College Savings:  Now may be the best time for starting to save for the college education of your children or grandchildren

    "529 College Savings Plans remain a mystery to most parents," AccountingWeb, August 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=104018

    Parents are counting on credit to counterbalance skyrocketing college costs, according to The State of College Savings, a survey to assess the state of college savings conducted by the College Savings Foundation. Fifty-four percent have saved less than $5,000 toward their goal and almost 40 percent expect to take at least 10 years to dig out of the daunting debt expected to send their children to college.

    The survey of 447 parents, who span income levels and crisscross the country, revealed for the first time that American families intend to rely on long term-debt, rather than savings, to fund their children's futures. Even though 79 percent of all respondents would be highly disappointed if their children could not afford to go to college, over half, 51 percent, of that group has saved less than $5,000 per child.

    Continued in article

    Morningstar, the global investment research firm has published its annual list of the best and worst 529 plans – when it comes to earning long-term returns for college savers – and the overall opinion smacks of optimism. Some of the worst plans from years past have folded up and gone away, while others continually strive to improve.
    AccountingWeb, August 2008 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=105846

    "Twelve tips for funding that college education," AccountingWeb, August 2008 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=104016

     


    There's a shelf of financial bestsellers whose titles now sound absurd: Ravi Batra's The Great Depression of 1990; James Glassman's Dow 36,000; Harry Figgie's Bankruptcy 1995: The Coming Collapse of America and How to Stop It. There’s BusinessWeek’s 1979 description of "the death of equities as a near permanent condition,
    Michael Lewis, "The Evolution of an Investor," Blaine-Lourd Profile, December 2007 ---
    http://www.portfolio.com/executives/features/2007/11/19/Blaine-Lourd-Profile#page3
    As quoted by Jim Mahar in his Finance Professor Blog at http://financeprofessorblog.blogspot.com/

    As a group, professional money managers control more than 90 percent of the U.S. stock market. By definition, the money they invest yields returns equal to those of the market as a whole, minus whatever fees investors pay them for their services. This simple math, you might think, would lead investors to pay professional money managers less and less. Instead, they pay them more and more...Nobody knows which stock is going to go up. Nobody knows what the market as a whole is going to do, not even Warren Buffett. A handful of people with amazing track records isn’t evidence that people can game the market. Nobody knows which company will prove a good long-term investment. Even Buffett’s genius lies more in running businesses than in picking stocks. But in the investing world, that is ignored. Wall Street, with its army of brokers, analysts, and advisers funneling trillions of dollars into mutual funds, hedge funds, and private equity funds, is an elaborate fraud.
    Michael Lewis, "The Evolution of an Investor," Blaine-Lourd Profile, December 2007 ---
    http://www.portfolio.com/executives/features/2007/11/19/Blaine-Lourd-Profile#page3
    As quoted by Jim Mahar in his Finance Professor Blog at http://financeprofessorblog.blogspot.com/


    "Smart Stops on the Web," Journal of Accountancy, January 2008 --- http://www.aicpa.org/pubs/jofa/jan2008/smart_stops.htm

    PERSONAL FINANCIAL PLANNING

    CENTER IN ON PFP SERVICES
    http://pfp.aicpa.org

    Want to offer financial planning services to your clients? Visit the AICPA’s Personal Financial Planning Center for PFP resources to get you started. Click the “Events” tab to register for Web seminars, including “The Mathematics of Estate Planning” on Jan. 16, or research the requirements and application process for the Personal Financial Specialist credential. In the upcoming months, the section’s Executive Committee will roll out a suite of updated practice guides on various PFP technical and practice management topics, available to PFP Section members and PFS credential holders at no cost.

    STRAIGHT FROM THE SOURCE
    www.treasurydirect.gov

    Individuals and financial institutions can buy and redeem Treasury securities, including bills, notes, TIPS and series I and EE savings bonds, directly from the U.S. Treasury at this Smart Stop. Not confident enough to invest yet? Enter the “Individuals” or “Institutions” sections, and then use the “Research Center” to access a glossary of terms and in-depth coverage of auctions and products or to take a guided tour of the site. There is also a calendar of upcoming Treasury auctions, as well as auction regulations and recent results.

    STAY DEBT-FREE
    www.moneycrashers.com

    At this “Guide to Financial Fitness,” author Erik Folgate chronicles his experience with getting into and out of debt, providing recent graduates and young professionals with the education needed to be financially successful. Follow the “11 Principles” series, which includes tips on saving money for the unexpected and creative ways to boost your income, or read articles on financial planning, such as “Don’t Let Your Fears Stand in the Way of Investing” and “Stay Positive When Paying Off Debt.”

     

    GENERAL INTEREST

    ERISA EDUCATION
    www.dol.gov/elaws/ERISA/Fiduciary.htm

    Developed by the Employee Benefits Security Administration, this site’s fiduciary adviser provides an overview of the basic fiduciary responsibilities applicable to private-sector retirement plans under the Employee Retirement Income Security Act (ERISA). Designed for accountants and other third-party service providers, the adviser uses a series of questions to determine whether a retirement plan falls under ERISA requirements, and if so, what they are. This Smart Stop also has a comprehensive listing of ERISA resources at www.dol.gov/elaws/ebsa/fiduciary/resources.htm.

    FLY HAPPY
    www.yapta.com

    Whether you’re planning a vacation months in advance or jetting off for a last-minute business trip, use Yapta as “Your Amazing Personal Travel Assistant.” Registered users tag their desired or frequently traveled flights, then are alerted by e-mail when the prices of those routes drop. Already bought a ticket? If you booked through an airline’s Web site, submit your confirmation code or forward Yapta your confirmation e-mail. If the ticket price drops below what you paid, the site will let you know whom to call and what to say to receive a refund for the difference or a travel voucher.

    STUDENT INSIDERS
    http://njscpa.typepad.com/examcram

    What does it take to become a CPA these days? Follow a few New Jersey Society of CPAs student members, who are chronicling their trials, tribulations and triumphs on the society’s Exam Cram blog. Browse the archives to read Scott Sandford’s journey as he studied for and took the CPA Exam while working at Deloitte, or join the NJSCPA’s new student recruit, Priscilla Jenkins of Merrill Lynch & Co. in Pennington, N.J., as she sits for part of the exam in February. Also take some time to read Tomorrow’s CPA, a monthly
    e-newsletter for accounting students, written by accounting students, on the NJSCPA’s Students and Educators site (www.njscpa.org/students).

    GO GLOBAL
    www.jimhamiltonblog.blogspot.com

    Jim Hamilton, a principal analyst at Wolters Kluwer Law & Business and a leading contributor to the CCH Federal Securities Law Reporter, emphasizes SEC rulemaking, international, federal and state regulations, and industry trends on his “World of Securities Regulation” blog. Under “Tools,” click “Posts by Topic” for a complete listing of the blog’s auditing, financial reporting, Sarbanes-Oxley and PCAOB coverage, or look for new posts on principles-based regulations, the mortgage lending market and international issues.

    —Megan Pinkston

     

    A Government Website for Helpers in Personal Finance
    MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are planning to buy a home, balancing your checkbook, or investing in your 401k, the resources on MyMoney.gov can help you do it better. Throughout the site, you will find important information from 20 federal agencies government wide.
    My Money.gov --- http://www.mymoney.gov/

    The AICPA's Financial Literacy Helper Site --- http://www.360financialliteracy.org/

    Bob Jensen's finance helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm


    Annuity Buyer's Guide --- http://www.annuitybuyersguide.com/


    David Bach's "Latte Principle" --- Click Here
    A Penny Saved Compounds to Much More Than a Dollar Earned
    Jim Mahar provided the following two links:

    "Penny's Add Up to Millions," Free Money Finance, October 15, 2007 --- http://www.freemoneyfinance.com/2007/10/pennies-add-up-.html

    Here's a post from Yahoo Finance that details the author's struggle with her husband to take his lunch to work. But the essence of what she says is really that saving/watching your pennies is the key to wealth. Her thoughts:

    I'm convinced that for the average person who wants to build wealth, pennies count.

    Pennies have a funny way of snowballing into dollars, and then hundreds, and then thousands, especially if you use them to buy the stocks of well-managed companies. Consider the story of a parking attendant who earns $20,000 a year but has amassed a $500,000 equity portfolio. Or the one about a group of New Yorkers who managed to save for a down payment on a (very expensive, very tiny) piece of the Big Apple. Or the clan of seven dubbed "America's cheapest family," who paid off their mortgage in nine years on a salary of $35,000 a year.

    I've seen article after article bashing David Bach's "Latte Principle" -- the idea that if you save on small spending you can amass a large amount of wealth. The main argument against it is that people should be paying attention to large expenditures -- that's where the real difference is made. But Bach isn't saying to ignore the expensive decisions in life. He's just aware that for many of us there are small amounts we spend every day without really thinking about how much they end up costing us. And that if we just limit a few of them and save that money, we can save a good amount throughout the years.

    Continued in article

    "How to Save a Bundle of Money,"  Free Money Finance, October 15, 2007 --- http://www.freemoneyfinance.com/2007/10/how-to-save-a-b.html

    Yahoo Finance has a list of ten money drains along with the annual costs of each of them. I view this as a list of where we all can save a bundle of money. Here's their list as well as the annual amounts spent on each of them (in other words, what you could save if you eliminated them):

    1. Coffee -- $360 per year.
    2. Cigarettes -- $1,660 a year.
    3. Alcohol -- $3,650 per year.
    4. Bottled water from convenience stores -- $365 per year.
    5. Manicures -- $1,068 per year.
    6. Car washes -- $348 per year.
    7. Weekday lunches out -- $2,350 a year.
    8. Vending machines snacks -- $260 per year.
    9. Interest charges on credit card bills -- $4,868 in interest (over time).
    10. Unused memberships -- $480 per year.

    Now of course I wouldn't suggest that someone cut out everything and eliminate all of life's pleasures. After all, we should use part of our money to enjoy ourselves. But for those people out there looking for a way to save a bit extra, for those who simply "can't make it on what I earn", and for those who would simply like to pay down their debt, this is a pretty good list to consider cutting down on -- even if it's for a short period of time. And you don't have to eliminate each of the items above, simply consider cutting back on them. There's still tons of savings available by cutting your car washes, manicures, or alcohol consumption in half.

    And if these aren't enough money saving ideas, check out my list of ways to save money from 2005-2006 as well as my 2007 list.

    Jensen Comment
    Of course eliminating all the above would not necessarily be wise. If there's five feet of snow on the ground, I'm not about to wash my own car. Yet getting the car washed in winter is more important than in summer if you live where they salt and sand the roads. Spending $358 each winter car washes may well save thousands if you can, thereby, double the life of your car.

    New cars lose 60% of value in the first four years. Most people waste more money on cars and interest charges for car financing than any other single cash drain in their lives, including the cost of housing. Cars are a necessity of life for most of us who have no convenient public transportation alternatives. But frequent trading in of good cars for new cars is a monumental mistake in finance. Leasing is also a synonym for stupidity. Insiders call it "fleecing a car." But I'm grateful for ignorant people who are constantly turning in good owned or leased cars. Most of the cars I've owned over the years were turned back leased cars. Great mechanics put my previously-owned or previously-leased vehicles back in top shape, and I save a bundle relative to their prior owners. If you must finance your next vehicle, please be a smart shopper and be informed how dealers cheat --- http://faculty.trinity.edu/rjensen/FraudDealers.htm

    I lived in San Antonio for 24 years where over 500 cars per month are stolen. See the video --- http://www.youtube.com/watch?v=TQPSXCqBqz4
    My answer was to buy an old car (usually a station wagon) and make it look even less desirable to the thousands of car thieves cruising about San Antonio by day and by night. Little did thieves know that underneath the hood was a new power train and other features that made my old heaps just like new. I always remember a comedy show that featured a company in Los Angeles that would ghettoize a new or relatively-new car to make it look like a junk yard dog. My city cars were like that. My wife and I were more safe since our cars were of little temptation to carjackers. But my children generally crouched down in the seats or asked to be let out a block away so their friends would not see them in my cars.

    Next to car financing, the biggest mistake most people make is credit card financing to a point where they seldom zero out what they owe on credit cards. This is the "dirty secret" of that makes credit card companies suck billions upon billions of dollars out of the economy --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO
    When we're about to go on long trips, I overpay monthly expenses ahead of time so that if we're delayed in returning home we never have to worry about being charged interest or late payment penalties. For example, I put huge credit balances into our credit card accounts before going on a long adventure.

    Do I buy into David Bach's "Latte Principle?"
    Well yes and no. I do not believe in Spartan living so I can watch my savings grow for the sake of watching my savings grow. I don't drink latte, but I also opt for four-star or five-star hotels or lovely country inns when my wife and I are on adventures. Expensive restaurants are generally wastes of money, but we go to them when the mood is right and/or the friends we're with prefer a top restaurant. Often you can eat just as well in the hotel's lounge as in the expensive restaurant down the hall. There's a huge difference between what you splurge for on daily (like credit card interest and latte) versus what you splurge for infrequently. When I used to come home at night and have a couple of drinks daily, I drank cheap Boca Chico rum in my cubalibras. Now that I don't drink daily, I splurge on fine wine and expensive liquor once in a while.

    In the final analysis, I would have to say that I live better in retirement because I pretty much followed the "Latte Principle" before it was called "Latte Principle." Most of my travels in life were financed by others who made me sing (lecture) for my supper, but I enjoyed the fellowship and strokes of these types of trips more than I did boring leisure vacations. I spent as much as I could possibly afford on land and houses, but these generally returned more than I paid for them. I spent as little as possible on cars and preferred to buy finely-tailored suits in upscale second hand shops (look for Second Looks in San Antonio and Austin).. I think most of the former owners of my suits had passed on in life.

    I never argue with my wife over money even when she tips almost as much as the check itself.  I never object when she hands out ten dollar bills to receptionists,  postal clerks, trash haulers, window washers, and bell ringers outside the Wal-Mart stores. She's thrifty but likes a lot of new things she generally buys on sale. She seldom shops in stores. But the UPS truck stops up here in the mountains nearly every day. While my wife is wearing the "8" and "0" buttons off on  phone in our den (mostly she orders gifts), I'm on the computer ordering everything from books to groceries to space heaters from Amazon.com (a great, great place to shop). Our UPS driver's name is Joe, and if I'm not at home he comes into the basement and assembles what he's just delivered. Will your UPS driver do that?

    I truly got my money's worth out of faculty clubs. I would've joined expensive country clubs but I never had time for a round of golf even once a week. Such is the price one pays for being a workaholic.

    It's easier for a workaholic to live by the "Latte Principle." But most of us workaholics are doing what we like best.

    October 17, 2007 reply from Barbara Scofield [scofield@GSM.UDALLAS.EDU]

    When my husband was in training to be a police chaplain, the trainer began talking about the issue of stolen cars by pointing to my husband and saying, “What kind of car do you drive?” Rob, my husband, responded, “A ’99 Saturn wagon.” The police trainer told him, “You can leave the keys in your car.”

    Barbara W. Scofield, PhD, CPA


    Investment Theory versus Practice:  What are volatility "smiles" versus "smirks"?

    From the Financial Rounds Blog on April 28, 2008 --- http://financialrounds.blogspot.com/

    Informed Traders and Options Markets

    If you were an informed trader, would you trade in the options market or in the market for the underlying asset? Finance theory says you'd trade in the options market because of increased leverage.

    Now here's another paper that supports this idea. In their March 2008 paper Xiaoyan Zhang, Rui Zhao and Yuhang Xing look at whether relatively expensive put options can be used as "bad news" indicators. Here's the abstract of their paper:

    The shape of the volatility smirks has significant cross-sectional predictive power for future equity returns. Stocks exhibiting the steepest smirks in their traded options underperform stocks with the least pronounced volatility smirks in their options by around 15% per year on a risk-adjusted basis. This predictability persists for at least six months, and firms with steepest volatility smirks are those experiencing the worst earnings shocks in the following quarter. The results are consistent with the notion that informed traders with negative news prefer to buy out-of-the-money put options, and that the equity market is slow in incorporating the information embedded in volatility smirks.

    Read the whole thing here. --- http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1107464

    In case you're not familiar with the term, the volatility "smile" refers to the phenomenon that implied volatility increases for options that are further out of the money. If the increase in implied volatility is greater on one side than on the other, the pattern is known as a volatility "smirk". In the case of this paper the smirk is used as an indicator of the degree to which puts or calls are relatively expensive. For example, if calls are relatively more expensive, that is taken as an indicator that informed traders have been buying calls because they have positive information about a stock, with expensive puts being an indicator that traders possess bad news.

    In addition to predicting subsequent returns, the authors also find that firms with the most expensive put options are more likely to have the worst negative earnings shocks in the following quarter.

    All in all, a pretty cool paper that indicates how information from one market can predict movements in another.

    Jensen Comment
    Do you suppose that Sony's Camera's new frown-fixing tool (called Happy Face Retouch) can be pointed at a volatility graph and turn a smirk into a smile?

    Bob Jensen's investment and personal finance helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    Question
    What are 120-20 and 130-30 funds?

    These funds are called 120-20 or 130-30 funds, reflecting their proportion of assets held long and sold short, with the proceeds from the short sales used to leverage the long position with borrowed funds, so that the long exposure is more than 100 percent. “The idea seems to have caught on,” said Barry P. Barbash, a Washington lawyer who once headed the investment management division at the Securities and Exchange Commission. “Public funds using this strategy seem to be multiplying almost daily.”
    Robert D. Hershey, Jr., "This Fund Concept Blurs Old Lines," The New York Times, July 8, 2007 --- Click Here

    "Twenty-Five Ways to Reduce Investment Risk," The Aleph Blog , July 21, 2007 --- http://alephblog.com/?p=186

    The Aleph Blog (Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control) --- http://alephblog.com/

    From Smart Stops on the Web, Journal of Accountancy, July 2007 --- http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm

    WEALTH MANAGEMENT

    SECURING A REPUTABLE BROKER
    www.nasd.com/brokercheck
    The NASD has answered the calls of investors looking for background information on potential financial service providers. The organization’s BrokerCheck Program lets users research current or formerly registered securities firms, individual brokers and regulated Investment Adviser firms. It also provides a comprehensive 10-year business and licensure history and list of disclosure events, including criminal actions, customer complaints and disciplinary actions by regulators against the firm or broker. Investors receive an electronic disclosure report as well as access to other educational services, including the Professional Designation Database and state disclosure programs.

    BECAUSE YOU’RE WORTH…MORE
    www.freemoneyfinance.com

    Whether you’re living on a student’s budget or a CFO’s salary, Free Money Finance has innovative ideas for increasing net worth, budgeting and maximizing retirement savings that you can immediately put into practice. On Mondays, check out “Star Money Articles,” a posting of news and tips from several of the Web’s popular personal finance sites. Take a few minutes on Fridays to read “One Year Ago,” popular posts from the prior year, to jump-start a frugal weekend.

    THE BENEFITS OF TAX KNOWLEDGE
    www.irs.gov/retirement

    Visit this Smart Stop for the latest tax news and information affecting the employee plans community. CPAs can search for resources on employee plans (EP) examinations and enforcement, retirement plans, benefit audits and correcting EP errors. Click on the “EP/Forms/Pubs/Products” link for access to PDF versions of EP forms and publications, plus in-depth instructions for form 5500, Annual Return/Report of Employee Benefit Plan, and form 5330, Return of Excise Taxes Related to Employee Benefit Plans.

    NOTHING IS CERTAIN BUT…
    www.deathandtaxesblog.com

    Visit Chicago-area attorney Joel Schoenmeyer’s Web site to brush up on topics straddling the lines between law, accounting and wealth management. Death and Taxes—The Blog offers estate planning and administration news and commentary, plus coverage of legal issues about real estate, gift and income taxes, trusts and charitable giving.

    Naked Shorts:  Irreverent Investment Ideas --- http://nakedshorts.typepad.com 

    Corporate Financial Reports
    O'Keefe Accounting Library Searches http://library.sau.edu/bestinfo/Majors/Accnt/accindex.htm

    Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

    Mortgage Professor's Tips on Whether or Not to Pay Off Your Mortgage Early --- http://www.mtgprofessor.com/early_payoff.htm

    How Mortgages Work --- http://money.howstuffworks.com/mortgage.htm 

    The AICPA's Financial Literacy Helper Site --- http://www.360financialliteracy.org/

    What are current mortgage rates? --- http://biz.yahoo.com/b/r/m.html

    Lord Help Us!
    Stockpickr has a list of the Top 100 Business Blogs

    Damodaran Online: A Great Sharing Site from a Finance Professor at New York University and Textbook Writer --- http://pages.stern.nyu.edu/%7Eadamodar/

    Jim Mahar's finance sharing site (especially note his great blog link) --- http://financeprofessor.com/

    Financial Rounds from an anonymous finance professor --- http://financialrounds.blogspot.com/

    Beware of the So-Called Investor Education Programs (especially beware of infomercials)
    "I don't see frankly much out there that really does the job, and that's partially because investors are their own worst enemy," says former SEC Chairman Arthur Levitt. "They refuse to invest skeptically, and are too easily seduced by all the purveyors of financial products that prey upon their worst instincts."
    "Investor Education 101: How to Avoid Scams:  Outreach Programs Target Most-Vulnerable Americans, But Success Is Hard to Assess,"  By Lynn Cowan, The Wall Street Journal, May 9, 2006; Page D3 --- http://online.wsj.com/article/SB114713241888747241.html?mod=todays_us_personal_journal

    The Invisible Problem of Risk Blindness," by Kevin Dowd, Financial Engineering News, November 2006 --- http://www.fenews.com/fen52/risk-reward/risk-reward.html

    Help for the younger generation's planning ahead for their financial futures
    "A Glimpse of the Future: Savings and asset accumulation among Americans 25–34," Journal of Accountancy, January 2007 --- http://www.aicpa.org/pubs/jofa/jan2007/special2.htm
    Also see http://faculty.trinity.edu/rjensen/fees.htm

    Are Hedge Funds Out of Control?  (from the University of Pennsylvania's Wharton School
    Click Here

    Foreign Direct Investment (FDI) in the U.S. --- http://www.fdi.net/

    "Are You Saving Enough for Retirement? A Guide to Figuring It Out and Funding It," by Jonathan Clements, The Wall Street Journal, July 12, 2006; Page D1 ---
    http://online.wsj.com/article/SB115265948927403942.html?mod=todays_us_personal_journal

    So what's your personal liability and how can you trim it? Brace yourself: We're in for some scary math.

     Bridging the gap.
    "Corporate accounting requires companies to look at their pension obligations, to use reasonable assumptions and to fund those obligations on an annual basis," notes Charles Farrell, a financial consultant in Medina, Ohio. "A little bit of that corporate discipline can be helpful on the individual side."
     
     

    Mr. Farrell's advice: Start by deciding how much income you will need from your portfolio to supplement whatever you expect from Social Security and any pensions you're entitled to. Next, multiply your desired portfolio income by 20, to get the target size of your retirement nest egg. (This assumes you use a 5% withdrawal rate in the first year of retirement, and thereafter step up your withdrawals with inflation.)

    For instance, if you're looking to garner $40,000 in initial retirement income from your portfolio, you would need $800,000 saved. Let's say you have $300,000 salted away. That means your current unfunded retirement liability is $500,000.

    To find out how much you need to save each month to amass this $500,000, head to www.dinkytown.net and call up the savings-goal calculator. One problem: Thanks to inflation, your target retirement income and your required savings could be whole lot bigger by the time you quit the work force. What to do? Mr. Farrell suggests thinking in terms of after-inflation "real" rates of return.

    To that end, when using the dinkytown.net calculator, set inflation at zero and input what you think your annual return will be, over and above inflation. If your portfolio includes a decent helping of stocks and you're careful about investment expenses, you might opt for a 4% real return.

    Finally, enter your portfolio's value, your current monthly savings and your time horizon. The calculator will then tell you how much you really need to save each month to accumulate your desired nest egg. But here's the key: To combat inflation and ensure you have enough at retirement, you will need to increase your monthly savings along with inflation.

     Raising the price.
    Does your required savings rate seem a little steep? If anything, you should probably be socking away even more, for two reasons.
     
     

    First, many financial planners consider a truly safe withdrawal rate to be 4.5% or even 4%. That means you ought to amass as much as 25 times your desired $40,000, boosting your retirement liability to $1 million.

    This is clearly news to a lot of ordinary investors. According to a study recently conducted for insurer New York Life, 40% of those surveyed weren't sure how much they could safely withdraw from a portfolio -- and an additional 29% thought that a safe retirement withdrawal rate was 10% or more. "There's a pretty big gap between expectations and reality," says Ted Mathas, chief operating officer at New York Life.

    Second, while you might want only $40,000 a year in portfolio income, you should be prepared to spend as much as $74,095 per person. That's the national average cost for a private nursing-home room, according to insurer MetLife's Mature Market Institute. In fact, if both you and your spouse need care at the same time, you could have to fork over some $150,000 a year.

    Assuming you get $20,000 a year from Social Security, your out-of-pocket cost might be $130,000. Based on a 5% withdrawal rate, that means you need $2.6 million socked away. How's that for a retirement liability?

    "Long-term care is a huge potential cost," Mr. Farrell says. "If you're not rich enough to self-insure, you've got to think about buying a long-term-care policy that gives you at least minimal coverage."

     Trimming the tab.
    A long-term-care policy is one way to dial down your unfunded retirement liability.
     
     

    What else can you do? To squeeze more retirement income out of your assets, you could take out a reverse mortgage and use maybe 25% or 50% of your savings to buy an immediate-fixed annuity that pays lifetime income.

    In addition, "you could try to lower your fixed costs," Mr. Farrell says. "A smaller house is better, because that should lower your property taxes and lower your utilities. You might also want to reassess how many cars you have."

    Of course, cutting back isn't easy. "Try to downscale before you retire, to see if you're comfortable with that," Mr. Farrell suggests. "If you're not, you might want to retire a little later."

    Postponing retirement -- unpalatable as it seems -- can transform your chances of a comfortable retirement. By delaying, you will have more time to save and more time for your investments to grow. You will also shorten your retirement, so you can be more aggressive in spending down your nest egg.

    As an added bonus, delaying retirement will allow you to postpone taking Social Security and purchasing an immediate annuity. Result: When you start Social Security and when you buy your annuity, you will get even more income.

    Investment Helpers
    From the Journal of Accountancy January 2007 Smart Stops on the Web --- http://www.aicpa.org/pubs/jofa/jan2007/news_web.htm

    Onward and Upward
    www.mynextphase.com

    Here CPAs and financial advisers can get a free trial membership and explore some of the nonfinancial considerations of retirement, such as how to handle change and revisit past interests as future options. Retirement Resources has links to Web sites on health, recreation and working after retirement. Find books on successful retirement in Suggested Reading, get the free newsletter Next Phase News and download research findings in “Retirement Trends and Truths.”

    Get the Financial Facts
    http://kimsnider.blogs.com
    This blog, created by the founder and president of Kim Snider Financial Communications, has dozens of posts from financial journals and Web sites on topics including annuities, bonds, cash flow investments, financial education and investment principles. Find out how Kim Snider invests her own money and learn her portfolio management strategies with a free informational session.

    A Helping Hand
    www.finaid.org

    Personal financial planners with clients that have kids in school will want to bookmark this Smart Stop for guides on navigating financial aid, loan and scholarship information. Find links to aid programs from the military and federal and state governments, as well as resources on education tax benefits and financial aid applications. Get calculators to project college costs and help with family budgeting. Or go to Beyond Financial Aid for a financial aid checklist and links to college selection and jobs and internship sites.

    Money Matters
    www.pfblog.com

    Follow this blogger’s personal finance journey to learn about the 10 best domestic equity fund managers and how to properly close a credit card account. Look up your life expectancy in the Archives or go to the PFBlog Digest to get the scoop on paying off student loans, starting salaries for college grads and how 529 plans affect financial aid eligibility.

    Make a Clean Break
    www.womansdivorce.com

    Financial advisers looking for divorce resources for female clients can go to this site’s Downloadable Documents section for state-specific divorce forms, parenting, separation and property settlement agreements. The Legal Considerations for Women and Financial Information sections offer divorce strategies and advice on choosing an attorney.

     

    From 'Smart Stops on the Web', Journal of Accountancy, December 2004, Page 29 --- http://www.aicpa.org/pubs/jofa/dec2004/news_web.htm 

    SMART STOPS ON THE WEB
     
    MUTUAL FUND SITES

    Back to Basics
    mutualfunds.about.com
    CPAs looking for a refresher course on mutual funds will find articles such as “Determining Your Mutual Fund’s ‘Cost Basis’” and “Avoiding Internet Investment Scams.” Users can sign up for a free 10-day online course on the basics of mutual fund investing or a mutual fund newsletter. Other resources include links to broker ratings of funds, financial calculators and glossaries.

    The Fund Finder
    www.mutualfundsnet.com
    CPAs looking for investment information for their clients will want to bookmark this Web site. In addition to free mutual fund sponsor searches in categories such as socially responsible corporate and government mutual funds, users can find information about investment conferences and links to breaking industry news. CPA broker-dealers can add their resumes to the database or check job postings from listed companies.

    For Fund Facts
    www.mfea.com
    Investment advisers looking to educate their clients on mutual fund options will find detailed information on topics including taxes and fund risk at this stop on the Web. Users can find explanations of the differences among mutual funds and a glossary of investment terms or search for funds, create model portfolios or use calculators for college, retirement and tax-savings plans.

    The Kids and College section of this Web stop links to sites that offer investment resources for money-minded children, such as calculators to help them decide how much allowance to save for major purchases and a dictionary of basic investment terms.

    Satisfy Your Need to Know
    www.ici.org
    Here visitors can find free statistics on money market mutual fund assets or reports on the latest industry developments, such as “SEC changes SRO Procedures for Filing Rule Changes.” Other sections include A Guide to Understanding Mutual Funds, Frequently Asked Questions and a news archive dating back to 1995.

    Keep Track of the Market
    www.123jump.com
    Users can register for free to keep tabs on their mutual funds at this e-stop, which offers general business, current and archived earnings news, as well as QuoteStream to see how your picks measure up on the Nasdaq, NYSE and S&P 500 stock index. Visitors also can get two daily e-mail newsletters, Earnings Ticker and Ticker AM—Business News Update.


    From Smart Stops on the Web, The Journal of Accountancy, May 2006 --- http://www.aicpa.org/pubs/jofa/may2006/news_web.htm

    Invest Time for a Laugh
    www.dailyreckoning.com
    Who says researching investment information can’t be fun? At this Web site, visitors not only get the latest market headlines and insights, but also some laughs. For example, the Essentialist Glossary in the Extras section defines Bill Gates as “where God goes for a loan.” Users also can read special reports on investing in India or value-investing strategies, subscribe to the free Daily Reckoning financial e-letter or get five secrets for investing in small- and micro-cap stocks.


     
     

    October 13, 2006 message from Dan Blystone (no relation to Trinity University's Bob Blystone)

    Dear Bob,

    I am writing to request that you kindly consider adding a link to my website (TradersLog.com) on your page here:

    http://faculty.trinity.edu/rjensen/bookbus.htm 

    I think your visitors may find it useful and interesting, and it would help my startup gain some valuable exposure.

    The website description is: Portal website for traders and investors featuring articles, analysis and a community forum.

    Please let me know if you have any questions.

    Best Regards,

    Dan Blystone
     TradersLog.com
    (312) 593-1322

    Reply from Bob Jensen

    Hi Dan,

    I added your message to http://faculty.trinity.edu/rjensen/Bookbus.htm

    However, I think I have some better places to also add your message. It will be in the forthcoming (October 31) edition of New Bookmarks.

    I have added your link to my investor helper module at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Since you provide a great set of links to economic and financial statistics, I also added your link at http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics

    Best of luck in your venture.

    Bob Jensen


     

     


    A deep interest in numbers and finance and a desire to help the average investor led Eric Tyson, MBA '89, to write a series of "Dummies" books in areas about personal money management.
    http://www.gsb.stanford.edu/news/bmag/sbsm0311/feature_tyson.shtml 

    Top Online Brokers, Barron's, March 10, 2003, Page 24
    STAR POWER

    Our first-ever 4-1/2-star rating goes to optionsXpress, with seven other brokers getting strong four-star scores.  Check also the scores in categories most important to you.

    Broker Trade
    Execution
    Ease of
    Use
    Range of
    Offerings
    Research
    Amenities
    Reports and
    Customer
    Access
    Costs Weighted
    Total
    Star
    Rating
    optionsXpress 4.8 4.3 4.5 4.6 4.1 4.0 26.5 ****1/2
    TradeStation 5.0 4.0 3.9 4.5 4.0 4.5 25.9 ****
    Terra Nova 4.8 3.8 3.8 3.8 4.6 4.0 25.2 ****
    Ameritrade Apex 4.0 4.5 3.7 4.6 4.1 3.3 24.6 ****
    Wall St.*E 4.5 3.0 4.8 3.4 4.2 4.5 24.3 ****
    Wall St. Access 3.7 4.5 4.8 3.9 3.3 3.0 23.5 ****
    SieberNet 3.8 4.2 3.6 4.1 4.2 3.0 23.4 ****
    CyBerTrader 4.7 4.0 2.5 4.2 3.9 3.5 23.2 ****
    E*Trade (Power) 3.4 3.0 4.2 4.2 4.3 3.1 22.6 ***1/2
    Harrisdirect 3.6 3.5 4.5 4.4 3.7 1.9 22.5 ***1/2
    Fidelity 3.4 3.5 4.3 3.7 4.4 2.0 22.3 ***1/2
    Charles Schwab 3.4 3.7 4.1 4.4 4.2 0.4 21.9 ***1/2
    Scottrade 3.8 3.8 3.5 3.7 3.2 4.0 21.8 ***1/2
    E*Trade (Standard) 2.5 4.0 4.0 4.2 4.4 1.6 21.6 ***1/2
    Interactive Brokers 4.3 3.7 3.0 2.7 3.3 4.9 21.4 ***1/2
    Preferred Trade 4.8 3.7 3.4 2.4 3.1 3.9 21.3 ***1/2
    myTrack 4.0 3.5 3.2 3.6 3.5 3.0 21.2 ***1/2
    MB Trading 4.3 3.6 3.3 2.7 3.5 3.5 21.1 ***1/2
    TD Waterhouse 3.0 3.0 4.6 3.4 3.7 3.1 20.9 ***1/2
    Brown & Co. 2.7 2.5 3.3 2.6 2.6 5.0 17.5 ***
    Brokerage America 1.7 3.5 3.1 3.0 2.6 5.0 17.5 ***
    JB Oxford 3.1 2.5 3.5 2.0 2.7 3.4 17.0 ***
    Vanguard 2.7 3.1 2.8 2.4 3.3 1.4 16.5 **1/2
    Merrill Lynch Direct 2.2 2.7 3.0 3.8 3.0 0.7 16.4 **1/2
    American Express 2.9 3.7 2.3 3.0 1.8 2.2 16.0 **1/2
    Strong Funds 1.4 3.6 2.5 3.1 2.7 2.8 15.7 **
    Firstrade 2.2 2.5 2.6 2.5 2.5 3.8 15.4 **
    Quick & Reilly 2.2 2.4 3.3 3.2 2.4 1.3 15.3 **

     

     

     

     

     

     

    Student Loans:  What You Need to Know Before Signing ---
    http://www.journalofaccountancy.com/issues/2017/jan/student-loan-repayment.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=09Jan2017


    How little couples talk about money. It’s probably one of the last taboos except in heated arguments after it's too late.
    Suggestions for improving communications with partners about money
    http://www.forbes.com/sites/johnwasik/2016/09/16/how-much-do-you-need-for-retirement-communication-is-the-key/#558a3fc514eb

    Jensen Comment
    I found the best way to communicate about money with Erika was to let her take over the checkbook years and years ago even before we retired. That way when I talked about long-range planning her knowledge of the short-range ins and outs made her much more sympathetic and understanding about the long run. In the short run, however, she still won't tell me how much money is in the account --- in fear that I might spend too much foolishly if I know how much is available. She let's me carry one check in my billfold --- but that's strictly for emergencies.

    And what a relief it was to put bill paying out of my mind.
    Erika actually reconciles the checkbook to the penny which is something that I rounded off to the nearest $100 give or take another $100. This task is difficult for her since, as a surgical nurse by training long before computers, she does not even use a calculator let alone a computer. She was very good at counting sponges and sometimes had to tell the surgeon that a sponge was unaccounted for and must still be hidden in the body. One time a surgeon ignored her. Three weeks later he had to go back into the patient's body to look for the (now infected) sponge.


    20 Rules of Personal Finance ---
    http://awealthofcommonsense.com/2016/12/20-rules-of-personal-finance/


    From the CPA Newsletter on November 19, 2015

    US ranks 14th in world for financial literacy
    http://www.forbes.com/forbes/welcome/
    The US ranked 14th in a survey of global financial literacy that was conducted in more than 140 countries. The researchers asked multiple-choice questions about topics such as interest and diversification. Only 57% of Americans received a passing grade. Find the AICPA's financial education resources at 360financialliteracy.org. Forbes (11/18)


    Still, there’s little to celebrate from Bankrate’s survey of banks. To make sure you’re not hit with egregious ATM fees, here are three simple ways to avoid them
    ---
    http://time.com/money/3433402/how-to-avoid-atm-fees/


    Finance Tips from The Math Dude Blog ---
    http://www.quickanddirtytips.com/
    These my be especially interesting when teaching financial literacy modules

     

    1.      What Is Credit Card APR?

    is a credit card APR and how is it calculated?" A.  APR is short for Annual Percentage Rate, ... which is the interest you’re charged over a 12-month period. For instance, a card with 24% APR costs 2% ... a single account can have several different APRs. The card company may charge one rate for purchases, one ...

    By Laura Adams, MBA, Money Girl - December 18, 2013

    2.      What Is a CD and What’s the Best Way to Invest with Them? Audio

    a higher rate of interest. Understand APY vs. APR Speaking of interest, there are two main ways that ... interest is expressed for CDs: APY and APR. APY stands for annual percentage yield and it’s the rate you’d ... APY is the rate you’ll get if you never withdraw interest from a CD. APR, on the other hand, stands ...

    By Laura Adams, MBA, Money Girl - February 10, 2011

    Jensen Comment
    CD's have very lousy investment returns since the Federal Reserve drove interest rates to almost zero.
    In general these days you have to take on more risk to get better returns.

    3.      Can I Save Money Using a Balance Transfer Credit Card?

    transfer card with 0% APR for 12 months, no annual fee, no balance transfer fees, plus cash back rewards. ... APR after the 0% APR 12-month promotion period expires. If she continues to make $500 monthly ...

    By Laura Adams, MBA, Money Girl - January 08, 2012

    4.      Consolidate Credit Card Debt and Save Money

    a lower interest rate, you can save a lot of money. The Discover® More Card gives you 0% APR for 15 months ... Lending Club or Prosper —where you can borrow for as little as 6.59% and earn an average of 10.59% APR ...

    By Laura Adams, MBA, Money Girl - June 02, 2012

    5.      How Is Credit Card Interest Calculated?

    typically charged a daily rate that's equal to the card's annual percentage rate (APR) divided by ... 365. For instance, the APR for new purchases could be 11.99%, cash advances 23.99%, and balance ...

    By Laura Adams, MBA, Money Girl - December 01, 2011

    Jensen Comment
    Make every effort to pay more each month than what the credit card billing says is the "minimum" amount.
    Better yet always take the monthly amount due down to zero to avoid interest charges altogether.

    6.     

    7.      401(k) Loans

    card debt of $6,000. The APR (annual percentage rate) on my card is high at 17% and I'd love to ...

    By Laura Adams, MBA, Money Girl - December 21, 2010

    8.     

    9.      Should You Apply for a No-Interest Credit Card?

    Otherwise, after the promotion ends, the annual interest rate or APR usually skyrockets on your outstanding ...

    By Laura Adams, MBA, Money Girl - September 26, 2013

    10.  How to Make a Balance Transfer Pay Off Audio

    transfer at 0% APR for a limited time. Should I transfer the balance of my higher-interest card and save ... a balance transfer card, look for the following features: an introductory interest rate of 0% APR for ...

    By Laura Adams, MBA, Money Girl - December 18, 2012

    The Khan Academy also has some great personal finance tutorials ---
    https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

     

     


    Helpers for Student Loan Forgiveness and Cancellation ---
    https://www.moneygeek.com/education/college/resources/student-loan-forgiveness-cancellation/

    Jensen Comment
    If you do not qualify for student loan forgiveness you should probably compare your current annual loan payments with payments if you privately refinance at the present low interest rates. However, you may lose some protections and options in doing so. Be careful about refinancing that sounds too good to be true. You might be able to refinance with your parents in a win-win situation if your parents consider you a good investment risk and you pay a higher interest rate than their safe investment alternatives. Read that as meaning you have a good job in a good profession and are not an unemployed aspiring artist or writer or getting a Ph.D. in a discipline where Ph.D. graduates are a dime a dozen.

    Whether or not you pay your student loan off aggressively by making above the minimum amounts due each year depends much upon what you would otherwise do with the money. Savings rates are so low that you are probably better off paying the loan off aggressively relative to saving. Risky investments are not the same as gambling, but you should probably be very cautious with putting money into risky investments like tech stocks until you have your student loans paid off. Also remember that there are transactions costs for buying and selling land, houses, and stocks. Short-term ownership (called flipping) of a house/condo is risky unless the buying deal was very good in a very hot housing market such as near a college or medical center. It helps in house flipping markets if you do the fixing up of a house yourself.

    My advice is to avoid buying new cars until your loan is paid off, although you may have to invest in a quality pre-owned car or lease modest cars at low rates. Think public transportation if you live in an urban area that has good public transportation. You can always rent an occasional car if needed for a trip.


    "Why Land and Homes Actually Tend to Be Disappointing Investments," by Robert J. Schiller, The New York Times, July 15, 2016 ---
    http://www.nytimes.com/2016/07/17/upshot/why-land-may-not-be-the-smartest-place-to-put-your-nest-egg.html?_r=1

    Jensen Comment
    This article is yet another example of how to mislead with statistics. Making money in land parcels and homes is exactly like making money in the stock market --- you've got to have picked the right ones to put into your portfolio. I sold an Iowa farm that more than doubled in value after I sold it. One reason was the idiotic decision to subsidize corn farmers by requiring upwards of 10% corn ethanol in every gallon of gas. North Dakota farmers made a lot of money selling oil rights. Owners of condos in Manhattan and San Francisco made small fortunes on tiny bits of property. Houses purchased for less than $50,000 in 1980 in Silicon Valley may be worth more than $5 million in 2016.

    But what looks like good deals in stocks and real estate in hindsight is just that --- hindsight! There are no guarantees of high returns without taking risks unless you are in the Mafia where you can force your own returns. Expectations of higher returns means acquiring more financial risk for most of us.

    There are some serious advantages to investing as much as you can in a home when you anticipate owning it for more than 10 years. Firstly, you get the added non-financial enjoyment of living in a wonderful home. Secondly, there are some tax breaks for the the 50% of taxpayers that really pay taxes. But there are a drawbacks. Property taxes are the primary way the USA funds its K-12 schools as well as pay for county and municipal services. In most instances growth rates for property taxes outpaced the capital gains since the real estate bubble burst in 2007.

    There are also some wonderful instances where owners have successful rental properties such as owning a duplex where the rent from one half of the house pays all the expenses of the entire house. A friend of mine, Tom Selling, says that when he moved from Dartmouth it was a good decision to continue to rent his condo rather than sell it at the time. That is probably true of nearly all rental property close to college campuses if the property was purchased before the real estate bubble burst in 2007. There are some tax breaks of rental housing such as depreciation and maintenance expense write-offs. For example, half the cost of the roof on a duplex might be expensed.

    Don't get carried away investing in land that has no serious annual cash inflow. Of course there are exceptions, but in general the taxes and maintenance fees (e.g., mowing) plus the eventual cost of selling the land take all the fun out of trying to eventually make a profit.

    With bank savings deposits earning virtually zero interest it's tempting to take on more financial risks with your savings. Each investor is unique. I advise getting "free" advice from reputable mutual funds like Vanguard or Fidelity or TIAA. I don't advise paying dearly for it at your local investment advisor service. Find out the range of alternatives from long-term tax exempt mutual funds to diversified real estate fund to a varity of long-term and short term equity alternatives. Learn enough to become your own adviser.

    Bob Jensen's helpers for investors (free because that may be more than they're worth) ---
    See Below
     


    Home Equity Loan --- https://en.wikipedia.org/wiki/Home_equity_loan

    From the CFO Journal's Morning Ledger on August 12, 2016

    Home equity loans come back to haunt borrowers, banks
    The bill is coming due for many homeowners on a type of loan that was widely popular in the run-up to the housing bust, causing a rise in delinquencies at banks. More homeowners are missing payments on their home-equity lines of credit, or Helocs, a type of loan that allows borrowers to withdraw cash from their house to pay for renovations, college tuition or almost any other expense. These loans typically require interest-only payments for the first 10 years, but then principal payments kick in for the next 15 or 20 years. Borrowers who signed up for Helocs in early 2006 were at least 30 days late on $2.8 billion of balances four months after principal payments kicked in this year, according to Equifax  Roughly 840,000 Helocs taken out in 2006 are resetting this year, with principal payments on an additional nearly one million loans expected to hit in 2017.

     


    Alliance for Financial Inclusion (financial literacy initiative funded by Bill and Melinda Gates) ---  http://www.afi-global.org/

    Tips on Personal Finance --- http://twitter.com/EverydayFinance

    Helpers in planning for retirement --- http://www.plan-for-retirement.com/

    Personal Financial Helpers:  From the Virginia Society of CPAs --- http://www.vscpa.com/Financial_Fitness/

    Wharton Professor Olivia Mitchell on Worldwide Financial Literacy
    http://www.ssga.com/definedcontribution/docs/Olivia_Mitchell_GlobalFinancialLiteracy_SSgADC_The Participant02.pdf
    Thank you Jim Mahar for the heads up.

    Education: Federal Reserve Bank of Kansas City ---  http://www.kansascityfed.org/education/
    Note the Financial Fables section --- http://www.kansascityfed.org/education/fables/index.cfm

    A Guide to College Savings Plans ---
    http://www.moneygeek.com/education/college/resources/college-savings-plans-guide/

    Bob Jensen's helpers in personal finance ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

    Video:  Investing for Inflation ---
    http://www.simoleonsense.com/janet-tavakoli-author-of-dear-mr-buffett-on-investing-for-inflation/

    What five classic Disney movies can teach us about personal finance ---
    http://www.csmonitor.com/Business/Saving-Money/2014/0904/What-five-classic-Disney-movies-can-teach-us-about-personal-finance

    U.S. Social Security Retirement Benefit Calculators --- http://www.socialsecurity.gov/estimator/

    Mutual Funds: 10 questions to test your IQ (ten answers every investor should know by heart) ---
    http://www.azcentral.com/business/consumer/articles/2009/04/10/20090410biz-MutualFundsQuiz0410.html

    The London Stock Exchange, one of the UK’s top financial institutions – has recently revamped its website ( www.londonstockexchange.com  ) to expand its user-base. A wealth of useful financial information can be accessed on the new site, such as live share and stock prices, charts, indexes including FTSE 100 index, listed companies and financial news. As well as the global financial shares and trading markets, users can also keep up to date with the UK stock market by taking advantage of the many new additions to the website.

    "Lack of Financial Literacy Complicates Student-Aid Process, Report Says," by Allie Bidwell, Chronicle of Higher Education, May 13, 2013 ---
    http://chronicle.com/article/Lack-of-Financial-Literacy/139223/

    Bob Jensen's advocacy of putting financial literacy in the common core ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm#FinancialLiteracy

    The Washington Post's New Personal Finance Service ---
    http://www.washingtonpost.com/business/get-there/

    This Sneaky Retailer Trick Could Cost You Hundreds of Dollars ---
    http://time.com/money/4578471/retailers-deferred-interest-deals/?xid=newsletter-brief


    Social Security Administration --- https://www.ssa.gov/
    This site has a reasonably good search engine

    "Here's when you should start claiming your Social Security benefits," by Ben Carlson, Business Insider, May 2016 ---
    http://www.businessinsider.com/when-to-claim-social-security-benefits-2016-5

    . . .

    What if you’re still working?

    What age gives you the highest benefits?

    What happens in a widow(er) situation?

    What’s the breakeven if you wait to claim?

    What about divorced spousal benefits?

    How does social security affect tax planning

    Continued in artilce

    Retirement Planner: Benefits For Your Divorced Spouse --- https://www.ssa.gov/planners/retire/yourdivspouse.html

    Here’s What You’ll Pay for Health Care In Retirement (Social Security benefits won't even cover your health care costs if you add supplemental Medicare insurance (that I recommend by the way)) ---
    http://time.com/money/4340299/what-youll-pay-healthcare-in-retirement/

    Forget about retiring on Social Security. Health care costs alone will devour the entire lifetime benefits—and then some—of a 45-year-old couple when they retire, according to projections released Wednesday by HealthView Services, a Danvers, Mass.- based company that provides retirement health care cost data and tools to financial advisers.

    Social Security payments will stretch farther for current retirees, but the numbers are still stark: In 2016, the average 66-year-old couple will require 57% of their lifetime, pre-tax Social Security benefits to pay for health care costs, according to HealthView Services. The average 45-year-old couple, by contrast, will need 116% of lifetime Social Security payments to cover health care costs.

    Total retirement health care expenses for that 45-year-old couple planning to retire at age 65 will come to $592,275 in today’s dollars and $1.6 million in future dollars, HealthView Services projects. The projection assumes the male member of the couple will live to 87 and the female to 89.

    The total tab includes premiums for Medicare Part B, which covers doctors’ visits, Part D, which covers drugs, and Part F, which is the most comprehensive supplemental insurance. It also includes expenses not covered by Medicare, such as dental work and hearing aids. Notably, it does not include long-term care costs. Medicare does not pay for long-term stays in nursing homes, or for assisted living facilities.

    Of course, these averages won’t reflect everyone’s experience. People’s individual health status will influence how much they pay. What’s more, not everyone will choose to buy a Part F Medigap policy. It’s a popular but expensive choice, with monthly premiums that vary widely by region but average around $200.

    While expensive, Part F plans eliminate a lot of the uncertainty of medical expenses. Premiums are predictable and cover most of beneficiaries’ out-of-pocket expenses. Without a supplemental plan, beneficiaries could be on the hook for even more if they have a big medical episode, such as a stroke, or a serious diagnosis like cancer.

    On Plan F, “if you never have a problem and drop dead at 110, you’ll have wasted a lot of money,” said Ron Mastrogiovanni, founder and CEO of HealthView Services. A more likely scenario, he said, is that, “We’re not going to stay healthy throughout retirement.”

    Continued in article

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

    Bob Jensen's universal health care messaging --- http://faculty.trinity.edu/rjensen/Health.htm 

     


    If you are daydreaming about the differences between men and women don't forget this important difference.

    In July I had occasion to visit a friend in our local nursing home in Franconia. I had to pass by a large number of residents on the porch before reaching the front door. I counted 18 old women and 2 old men. Why weren't the gender odds like this the same when I was a student on campus?

    From the CPA Newsletter on December 4, 2015

    Women face higher long-term care costs
    Women are more likely to need long-term personal care as they age, research shows. In addition, women often need this type of care for longer periods than men do, partly because they tend to live longer. Total projected spending on long-term care exceeds $182,000 for women over 65, half of which will be out of pocket. Forbes (12/3)

    Jensen Comment
    Remember that Medicare does not fund nursing home confinement, and the costs of such confinements are exploding in part due to demand increases from the aging baby boomer generation. Yikes that's me!


    Medical Costs Can Add Up in Retirement
    Two Big Reasons You Need Added Savings in Retirement ---
    http://www.forbes.com/sites/ashleaebeling/2015/09/25/two-big-reasons-you-need-more-retirement-savings/

    Think Medicare will cover you when it comes to all your health-related expenses in retirement? Not even close. Sure Medicare is the cornerstone of coverage, but it covers approximately 60% of health care expenses, and it does not cover long-term care expenses. That leaves retirees with major health care expenses (medical, dental, vision, prescription) and possibly long-term care expenses (home health care services or assisted living or nursing care) coming out of their retirement nest egg.

    Pre-retirees should take a two-pronged approach to planning for these health-related expenses in retirement and make health care part of their overall retirement plan, says Carol Goetsch, manager of advisory client services at U.S. Bancorp Investments in Minneapolis.

    “Having a plan allows you to determine where and how you want coverage and the role your family members will play; not having a plan becomes reactionary and creates dysfunction in the family.” Goestch says.

    Here’s the overwhelming big picture. A couple at age 65 can expect to spend $395,000 in medical, dental, vision, hearing, premiums, co-pays and other out of pocket health care expenses in retirement–according to Healthview Services 2015 Retirement Health Care Cost Data Report. Long-term care expenses are separate, and will cost an average of $140,000 per person, although the averages can be misleading, meaning you might need a lot more, especially if you’re a woman.

    Here are some planning tips.

    Don’t count on health care cost averages. A Midwestern couple came to Goetsch when they were turning 60. They thought they could live off of $75,000 a year until their Bancorp advisor helped them run a health assessment that estimated their combined health care expenses would be $3,500 a month or $42,000 a year (one is a diabetic and one has heart issues). On average an individual needs $1,000 a month to cover basic medical expenses in retirement, but one mistake people make is looking at averages instead of what their circumstances project. “Certain impairments take more of a toll,” Goestch says. Gender, family history, and current life expectancy should all be taken into account. In this case, the couple decided to work a little longer and take advantage of workplace benefits–at least until they reached 65 and could go on Medicare. They cut back on lavish travel and supercharged retirement–and health care–savings.

    Continued in article

    Four Mistakes That Could Ruin Your Retirement ---
    http://www.cnbc.com/2015/09/03/4-mistakes-that-could-ruin-your-retirement.htm

    Mistake: Boosting bond allocations at retirement
    It used to be a good ideal to shift from CREF to TIAA before retirement. Thanks to the Fed's virtually zero interest rate policies this may no longer be a good idea. Times change, however, so everything should be reconsidered if you won't be retiring soon.

    Mistake: Counting on Medicare to cover all health care costs
    Medicare is being torn apart by fraud and explosion of medical costs. Drastic revisions in the future almost certainly will entail making middle and upper income retirees bear much more of their medical costs than they currently are paying out when on Medicare.

    Mistake: Moving to a state for the low income taxes
    There are usually more important variables for choosing where to live in retirement than state income taxes. However, if plans include moving to another state both income and inheritance taxes should be considered. We have two grown children living in California and Maine. Taxes were a consideration when we chose New Hampshire with good tax deals relative to Maine and California, and New Hampshire is very close to Maine.

    Mistake: Not saving enough for retirement.
    This is a bigger problem since the Fed's zero interest rate policy destroyed most safe investment alternatives like certificates of deposit and low-risk bonds. Now investments for retirement must take on more risk like choosing all CREF versus having some TIAA. Of course taking on more financial risk entails taking more chances. Dah! Some investors take chances in real estate, but the real estate in my portfolio was only in the house I lived in and the land surrounding this house. I do not generally like rental property because of the headaches of being a landlord (including owning a farm). I do not like idle land investments because of the annual property taxes and insurance cash going out and no cash coming in.

    More of Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/bookbob1.htm#InvestmentHelpers

     

    This is the research you should do before picking a credit card ---
    http://www.businessinsider.com/sc/pick-the-right-credit-card-2015-8 

    AICPA:  Back-to-School: How to Pay for College ---
    http://blog.aicpa.org/2015/08/back-to-school-how-to-pay-for-college.html#sthash.gcYpuxSm.PSkI9cqt.dpbs

    The Upshot: Is It Better to Rent or Buy? (real estate calculator) ---  http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
    Jensen Comment
    My general advice for new faculty is not to buy a home until tenure is achieved except in hot markets where fast turnover profits are probable provided too much is paid initially. After tenure achievement the above calculator can be helpful.

    My priors were to invest as much as possible in long-term ownership of a house and the least possible in the long-term ownership of a very reliable car. 

    However, be careful where you buy real estate. Up in the White Mountains I advise mountain or lake views even though New Hampshire has a view tax.  There really aren't any gated neighborhoods up here, and nothing would be gained by having gated neighborhoods. In San Antonio I would not put big money into a house that's not in a gated neighborhood. Even if you're opposed philosophically to that concept, the fact is that expensive homes do not sell very well in San Antonio unless they are in gated neighborhoods with armed guards at the gates. I would have had much more capital gain on my big San Antonio house if it had been in a gated neighborhood. Sigh!


     

    The Upshot:  Is It better to Lease or Buy a Car? --- http://money.howstuffworks.com/business/getting-a-job/buy-vs-lease-car.htm
    Jensen Comment
    Leasing became much more attractive when the Federal Reserve drove commercial interest rates toward zero. But that does not mean "more attractive" than buying in all instances. Much depends on the amount you drive and the terms of the lease in the context of  the amount you drive. It also depends a lot upon your willingness to drive older cars. When I worked in San Antonio where newish cars are stolen in unbelievable numbers daily my wife's car was a newish tiny Honda Civic, and I drove a very reliable battered up ancient Ford station wagon that had a newish engine and transmission under the hood. This ghetto-like car looked so bad that nobody would think of stealing it and driving it across the border to Mexico.

    In general, even in retirement, my wife and I do not mind driving well-maintained older cars. Our main car in the White Mountains (where car theft would be headline news) is a very reliable Subaru Forrester that we will probably drive until it is at least 20 years old (it's now five years old) or has over 100,000 miles.  The Subaru will probably be the last car we ever own. After that its car leasing for us unless we're in a nursing home. I also keep an unreliable old Jeep Cherokee in the barn that's used mostly for hauling brush to the dump. That will be in our barn on the day I die.

    My point is that leasing would probably not be the best choice for us until we're very old. However, leasing is the best choice for most of our children except for one son who puts a lot of miles on a car commuting a long distance to work in California.


    How to Mislead With Statistics
    "How much you have to save every year if you want to put your kids through college," by Libby Kane, Business Insider, April 27, 2015 ---
    http://www.businessinsider.com/how-much-to-save-every-year-for-college-2015-4 
    Customized cost and savings calculators.

    Jensen Comment
    I've repeated elsewhere over and over that there are many factors that make the cost of college education variable and uncertain. For example, the cost of getting an online degree (even from a high quality university) while living at home is a whole lot different than paying full tuition, room, and board for an onsite degree at either a public or private university or college.

    Also financial aid is common and very serious for a majority of students. The tuition cost is now zero in many USA prestigious (e.g., Ivy League) universities for students from families earning less than $125,000 per year. In addition, President Obama is now forgiving all or parts of student loans for a relatively small number of graduates.

    The problem when the kids are very young lies in choosing a college savings plan without knowing what lies ahead in terms of future tuition costs, living costs, financial aid, etc. Colleges may be funded quite differently 20 years from now, and we really don't know what kind of deals will be available way out in the future. For example, it's entirely possible that the most prestigious universities in the USA will be totally free to all students, albeit a highly restricted number of students qualifying for admissions. It's entirely possible that the first two years of college will eventually be free in most state-supported universities.

    Parents and especially grandparents currently contribute a great deal of financial support from tax-advantages 529 Plans ---
    http://en.wikipedia.org/wiki/Coverdell_Education_Savings_Account
    Who knows if and how long those plans will survive?
    These plans are currently clobbered by the Fed's "quantitative easing" (QE) interest rates that through savers under the bus by paying virtually negligible interest rates.

    A Guide to College Savings Plans ---
    http://www.moneygeek.com/education/college/resources/college-savings-plans-guide/


    This Is the Worst Retirement Solution Ever ---
    http://www.bloomberg.com/news/articles/2015-04-21/this-is-the-worst-retirement-solution-ever?cmpid=BBD042115


    Tips for Passing a Personal-Finance Stress Test ---
    http://blogs.wsj.com/briefly/2015/03/11/5-tips-for-passing-a-personal-finance-stress-test/

    Your household finances might be humming along just fine. But would they be able to withstand an unforeseen medical bill or sudden reduction in paid working hours? How about a job loss, furlough or unexpected tax assessment? As the Federal Reserve prepares to announce the results of this year’s stress tests on the nation’s largest banks Wednesday, we offer the following five stress tests for your own finances.

    1 Debt-to-Income Ratio

    Divide your debts, including credit cards, student-loan and car-loan balances, and your mortgage, by your pretax earnings. That will give you your debt-to-income ratio.

    Sheryl Garrett, the founder of the Garrett Planning Network, says a good rule of thumb is to have a personal debt-to-income ratio of less than 28%, not counting mortgages, or household debt-to-household income of less than 36%, including mortgages.

    A higher ratio is a warning that you have too much debt relative to your income and you either have to lower your debt or raise your income, or both.

    2 Discretionary Expenses

    It’s important to know what your discretionary expenses are and how quickly you can cut back on them in times of stress.

    Start by sorting all your expenses into three categories: fixed, which are those payments you have to make regardless of circumstances; variable nondiscretionary, which are expenses such as groceries or air-conditioning bills over which you can exercise some level of control; and purely discretionary expenses such as gym memberships and vacations.

    Discretionary expenses should make up a greater percentage of your overall expenses than your fixed expenses, says Eleanor Blayney, consumer advocate for the CFP Board in Washington, giving you room to defer, cut back or eliminate.

    “Figure out what you could live without or whittle down quickly,” she says. Discretionary Expenses > Fixed Expenses

    A good standard is for discretionary expenses to be two thirds of your overall expenses.

    3 Emergency Savings

    Financial planners tell clients to reserve enough cash in savings or other easily liquidated accounts to cover three to nine months of expenses—with three months being the bare minimum.

    This stash will be the first place you turn for help because it is readily available. Getting at it shouldn’t require selling securities or taking an early-withdrawal penalty from a retirement account or certificate of deposit.

    The greater your obligations, the more emergency cash you should have squirreled away, planners say. A single mother with a mortgage would want several months if not more than a year of cash to cover expenses, for example. A freshly graduated single person who has no student debt and who is renting an apartment might need only three months’ worth.

    The National Foundation for Credit Counseling offers a program called “Sharpen Your Financial Focus” that has free online questionnaires for people to use in figuring out their own plans. 3 to 9 You should have enough cash to cover three to nine months of expenses in case of emergency.

    4 Additional Income

    Consider your options for generating additional income in a period of stress, says Bruce McClary, a spokesman for the National Foundation for Credit Counseling.

    Wages or tips from a second part-time job or proceeds from selling personal possessions could raise enough to float you through a financially strapped period without spending down your emergency savings too quickly.

    5 Total Assets

    If banks are evaluated by the liquidity and quality of their balance sheets and their ability to weather a run on their deposits, consumers could be evaluated by the liquidity and quality of their assets and how well they could withstand an immediate call by all their creditors, Ms. Blayney says.

    Add up your emergency savings, the equity in your home and the balances in your retirement savings accounts to get your total assets. Then divide that number by your monthly expenses to figure out how many months you could live with no investment appreciation and no income until you have completely depleted those assets.

    Take two people, each with a net worth of $1 million. The first person has securities and cash accounts, the second has her money tied up in real estate. Which one could pay the bills more quickly with less of a discount to convert assets to cash?

    “You need to look at the liquidity of the net worth and the quality of it,” she says.

    Corrections & Amplifications

    To calculate debt-to-income ratio, divide your debts by pretax earnings. An earlier version of this post incorrectly said the ratio was obtained by dividing pretax earnings by debts.

    Jensen Comment
    The article should have given more consideration to tax planning. For example, I would give consideration to combining savings liquidity with tax exempt income in a diversified tax exempt mutual fund such as a a low cost fund (with a checkbook) available from Fidelity or Vanguard. Care must be taken, however, to have long-term savings that are better protections against inflation such as CREF accounts.

    Real estate is a tricky investment due to property taxes and insurance. If there's sufficient rental to cover these expenses such as in a condo or profitable farm then real estate is more attractive as a long-term investment. For example, I have a friend who kept his condo beside the Dartmouth College campus long after he moved on. He now calls this condo his cash cow.

    However, I don't like being a landlord --- which is why I sold my inherited Iowa farm and invested mostly in our home and in a tax exempt mutual fund from Vangard. However, I'm old now so that inflation is less of a worry in my remaining lifetime.

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    "Here's The Painstakingly Detailed Budget Of A Couple Who Earns Nearly $15,000 A Month," by Libby Kane, Business Insider, January 26, 2015

    Question
    Suppose you were teaching a financial literacy course and used the following monthly budget for a couple. What would you focus on to stimulate student debates on the issues.

     

    Hints

    ·        The couple earns $180,000 after-tax withholdings and tax estimated additional payments per year (assuming both adults work giving rise to the day care allowance).

     

    ·        My calculation assuming a 4% APR 30-year mortgage initially is that the couple owns a home originally costing $345,150 plus whatever they made in a down payment. This price would be relatively high in a decadent farming town in Iowa and relatively low in a suburb of most major cities. It would be a tent in Silicon Valley. It would not be much of a house within a walking distance of virtually all major universities in the USA.


    The house probably cost a lot less if the $1,647.80 payment also covers property taxes and mortgage insurance. Have your students estimate the original cost of the home if the payments on the mortgage itself are only $1,000 per month. They must be living in an old shack or a cramped town house.

     

    ·        The life insurance seems relatively low for a family with young children.

     

    ·        The "out-to-eat" budget is relatively low and can be used up entirely with two nights out at nice restaurants per month. The family must eat out mostly at fast-food and pizza joints. One way to save money plus eat healthy meals is to eat at a nearby hospital like we did in both San Antonio (where the Northeast Baptist Hospital was only a block away). Eating at the hospital was cheaper than cooking at home. Erika worked full time at this hospital.


     

    ·        The electric bill of $200 would not cover our electric bill with heating and air conditioning while we lived in San Antonio where the electricity and gas bill was over $400 per month. In the White Mountains of New Hampshire electricity, propane and heating oil would be more like $1,000 per month. It's very cold up here.

     

    ·        I think for a younger family not of Medicare the medical, dental, and prescription drug allowance is way too low in the budget shown in the article below. For retired folks like us on Medicare the medical, dental and prescription outlays would be much, much higher --- more like $1,500 per month. Younger folks naively think Medicare is "free"  after you retire. It's not free when you add in the cost of Medicare itself, the cost of Medicare supplemental insurance, and the out-of-pocket costs of medicine not covered by Medicare D.

     

    ·        How about the other monthly estimates?
    Are they realistic for the USA?
    Are important items deleted in terms of most families?

     

    o   In San Antonio where I watered my lawn with a sprinkling system my water and sewer bills were over $200 per month

    o   My Time Warner cable bill is now over $160 per month

    o   What about those monthly iPhone usage fees?

    o   How about home owner insurance and umbrella (liability) insurance?

    o   How about lawn and garden equipment such as a garden tractor and lawn mowers and snow throwers?

    o   What about furniture and appliance costs? Up here in the boondocks I spend quite a lot on extended on-site warranties.

     

    When you teach from this budget you might go into more details regarding possible tax strategy and retirement strategy  pros and cons.

     

    "Here's The Painstakingly Detailed Budget Of A Couple Who Earns Nearly $15,000 A Month," by Libby Kane, Business Insider, January 26, 2015 ---
    http://www.businessinsider.com/detailed-budget-of-high-earning-couple-2015-1 

     

    February 1, 2015 reply from Patricia Walters

    Bob

    Not every place charges for water. We had a well in VA and we paid electricity and maintenance for the pump, not for the water.

    We had a lawn mower in VA. Here we have someone come and cut our grass who has the equipment, about 100 per month in the growing season only. No snow. Even in VA we had shovels, not power tools.

    No TV, only cable for internet. Biggest utility charges electricity (we have big OLD house) and phones.

    We don't know where these people live. Costs vary widely depending on location, even within counties.

    Are there homes in Fort Worth that cost over a million? Sure. But there are also homes in reasonable neighborhoods for less than $150,000. I live in one of those neighborhoods.

    I've lived in NYC, NJ, VA and now TX. Costs vary widely across those places and within those places.

    One if their biggest expenditure was school, which seemed likely to me.

    Why do you doubt the truth of their budget?

    Pat

     

    February 2, 2015 reply from Bob Jensen

    Hi Patricia,

    I did not doubt the truth of their budget, but I did think they left a few things out or were ambiguous about some things that need to be clarified by a teacher or students using this budget in a financial literacy course.

    For example, the $1,687 mortgage payment could be the mortgage alone or it could also cover property taxes, homeowner insurance, and mortgage insurance. Take those away from the payment and you are left with a fairly low-sized mortgage.

    In my case the property taxes are $1,000 per month but they are not part of my mortgage payment in these mountains. In fact the property tax payment and the mortgage payment only differ by $200 because I paid over 60% down at the time of purchase. Later I refinanced the remaining mortgage for 3.6% for 30 years. I pay the homeowners insurance separately, and that's not cheap up here.

    Most people cannot afford such a large down payment unless they're retired. In rural mountain and ocean properties the banks typically require larger down payments than in towns. In many instances former owners must finance the homes they sell.

    When I taught at the University of Maine I had an ocean cottage that could not be financed except by an owner. Banks would not loan on shore property in those days. That made interest rates highly variable, because they were part and parcel to sales price negotiations. Owners also typically demand large down payments when they finance sales properties.

    I also wanted a mortgage so I could play the game of having more itemized tax deductions plus invest more in a long-term insured tax-exempt mutual fund that pays only slightly less than by mortgage interest rate. The standard deduction sucks, but you have to have a sizable amount of itemized deductions to cover the minimum threshold for itemized deductions..

    I could pay the mortgage off any time, but I don't want to due to a tax strategy that might be debated by students in a financial literacy course. That's why I suggest having students debate alternate tax strategies at the same time they are discussing household budgeting.

    Having a deep water well makes me not concerned about the cost of water usage. Wells only get expensive when you have to replace the well and or the pressure tank and pump. Two of my neighbors had to replace their wells, and it cost each of them thousands of dollars.

    With a well also comes a septic system. The risk here is having to replace the drain fields for broken tiles. That expense depends a lot on having sufficiently high ground for another field. You can't put a new drain field over an old drain field or in low land that does not drain well from rain and snow melt.

    A B&B down the road is having all sorts of troubles finding a suitable place for a new drain field. The small hotel has been empty for over a year in part because of this problem and the need for a new well.

    In San Antonio you could get housing relatively close to Trinity University for less than $200,000 but most faculty who do so either do not have children or send their children to private schools (which is really expensive). Also crime risks are higher near campus relative to most outer northern parts of the city. By higher crime risk I mean that I don't recommend walking near campus at night and having to have high quality home security systems.

    Trinity has very safe and well lighted walking, jogging, and biking trails on campus that are heavily patrolled by officers on bicycles. These trails are used a lot by neighbors not affiliated with the University. It's a public service.

    Thanks for your thoughts,
    Bob

     


    From the CPA Newsletter on September 3, 2014

    How retirement planning has changed since ERISA was enacted
    http://r.smartbrief.com/resp/gbsdBYbWhBCJbSoSCidKtxCicNRJcg?format=standard
    The Employee Retirement Income Security Act was enacted in 1974 in response to some much publicized failures of private defined benefit (or pension) plans. Rebecca Miller, CPA, Robert Lavenberg, CPA, J.D., and Ian MacKay, CPA, CGMA, mark ERISA's 40th anniversary with a look back at the challenges ERISA was originally intended to address and the issues facing retirees now and in the future. Journal of Accountancy print issue (9/2014)

    Bob Jensen's threads on pension accounting ---
    http://faculty.trinity.edu/rjensen/Theory02.htm#Pensions

     


    Fees = Transactions Costs (when buying or selling shares) plus Fund Management Fees (paid annually to professionals who manage your portfolio like the managers at TIAA/CREF, Fidelity, Vanguard, etc.). manage your retirement funds.

    Taxes = Capital Gains Taxes (that apply even on retirement funds like CREF when you make eventual withdrawals). Note that capital gains taxes must be paid by your estate on the balances left in your retirement funds. Most of us won't get hit with estate taxes (due to high estate tax exemptions), but we all get hit with capital gains taxes on the retirement funds and farms we leave behind for heirs.

    Inflation = Loss in Buying Power of Saving Dear Money That Turns Into Cheap Money (even under your mattress)
    The government is now misleading us about inflation by taking price increases for food and fuel out of its reported  inflation index so you think that your dollars are still dear when they are cheap in terms of things that you buy day-by-day. Economists are whores for politicians. Government deficit spending and obligations for $100 trillion in unfunded entitlements (like Medicare and Medicaid) make inflation the biggest worry of the three diseases on retirement savings --- fees, taxes, and inflation.

    "Here's How Little You Earn On Stocks After You Pay The Man, Uncle Sam, And The Invisible Hand," by Myles Udland, Business Insider, August 29, 2014 ---
    http://www.businessinsider.com/thornburgs-real-real-equity-returns-2014-8

    Fees, taxes, and even inflation just kill your investment returns.

    A Thornburg Investment Management study of "real, real returns," which was alerted to us by Cullen Roche at Pragmatic Capitalism, shows how various costs eat into your stock market returns. 

    Real, real returns take into account expenses (the man), taxes (Uncle Sam), and inflation (the invisible hand).

    Thornburg's study notes that "nominal returns are a misleading driver of an investor's investment and asset-allocation planning... because they are significantly eroded by taxes, expenses and inflation." The risk then, as Thornburg sees it, is that a failure to understand real, real returns could lead to investment decisions that miss potential diversification opportunities. 

    This chart from Thornburg shows how the annualized nominal return of $100 invested in the S&P 500 between 1983 and 2013 is about 11%, making that investment worth $2,346.

    However, on a real, real basis that investment returns 6%, making it worth just $570.

    A pretty stark difference between expectations and reality.

    Jensen Comment
    There are ways of partly beating the tax man by investing a portion of your retirement funds in a tax-exempt mutual fund that holds bonds of school districts, towns, cities, counties, and states. However, I say "partly beats" in the sense that value changes in those funds are subject to capital gains taxes even if the interest on those bonds that builds up your savings are not taxed while your earn that interest or when you withdraw that interest. A second  drawback is that there is relatively more risk in investing in a given tax-free municipal bond versus a taxable high-grade corporate bond. But huge diversified tax-free mutual funds like those of Fidelity and Vanguard. A third drawback in theory is that tax-free bonds should earn less interest than corporate bonds. This is not always the case in this era of stupid quantitative easing by the Federal Reserve that keeps interest rates on CDs and high-grade corporate bonds close to zero. Tax-free interest rates have held up batter in this idiotic era of quantitative easing since the crash of 2007.

    Remember that higher return investments also carry higher financial risks beyond the savings killers of fees, taxes, and inflation. For example land investments have less inflation risks but are subject to many other financial risks. For example, think of paying a million dollars for an Iowa farm that sold ten years ago $500,000 and doubled in value because of the corn ethanol government mandate for gasoline. The added financial risk for your new farm is that one day soon the government will come to its senses and remove the ethanol mandate for fuel, thereby leaving the corn for cows and hogs. Your million dollar farm may plunge in value --- thus the added investment risk beyond the retirement savings killers of fees, taxes, and inflation.


    "The Crushingly Expensive Mistake Killing Your Retirement:   401(k) fees are costing you hundreds of thousands of dollars over your lifetime," by Matthew O'Brien, The Atlantic, February 15, 2014 ---
    http://www.theatlantic.com/business/archive/2014/02/the-crushingly-expensive-mistake-killing-your-retirement/283866/

    Jensen Comment
    Investors should probably question whether they need to pay a financial advisor on top of the unavoidable expenses of managing a mutual fund. Investors should also seek out lower cost fund management funds such as Fidelity, Vanguard, and TIAA/CREF. Most of the more expensive funds are delivering addedreturns that justify the added costs unless they have taken you into financial risks you don't understand.

    The big funds offer a lot of free advising services that you should investigate before running down to a personal advisor in a glitzy office building.


    "5 Little-Known Ways To Save Money On Amazon ," by Grayson Bell, Debt Roundup via Business Insider, August  29, 2014 ---
    http://www.businessinsider.com/ways-to-save-money-on-amazon-2014-8

    Jensen Comment
    If you are an active buyer like me on Amazon it probably pays to become a Prime member.

    One advantage of living in the boon docks is home delivery when you're not at home. I know the rural mail carrier (Mary), the UPS driver (Joe), and the FedEx driver all by name. They leave the deliveries in our unlocked garage in rain, snow, or shine. When I lived in San Antonio I would've not dared to leave our garage unlocked. City living is just more scary and a hassle in many other ways.

    Don't forget to use your accumulated payment credits on Amazon. Amazon makes it really easy to use those points when making a payment.


    "How to Choose a Charity Wisely," by John F. Wasik, The New York Times, November 7, 2013 ---
    http://www.nytimes.com/2013/11/08/giving/how-to-choose-a-charity-wisely.html?ref=giving&pagewanted=all&_r=0

    DONATING to charities this time of year used to be relatively efficient and painless. After watching the Macy’s Thanksgiving Day Parade, you plunked some money into a Salvation Army bucket, wrote some checks, contributed some household items and were done.

    Yet with charities increasingly involved in awareness campaigns, complex networks of cause marketing and often exorbitant overhead, donating to the most effective charity has never been more challenging.

    If you are a discriminating giver, you will need a set of guidelines that can tell you if your donation will mostly be spent on a charity’s mission and not peripheral activities. These days you have to use your head far more than your heart to see that your charitable dollars are well spent on causes you care about.

    There are services and strategies that you can use to make an informed decision. Most of them can help you determine if your dollars will reach the charity’s “mission” — and whether a nonprofit organization is effective in what it is striving to do.

    Charities are already witnessing greater selectivity among donors, probably driven by the pinch of a sluggish economy. According to The Chronicle of Philanthropy, a trade newspaper for the nonprofit sector, donations to the top 400 fund-raising charities are slowing this year after gaining 4 percent in 2012. Last year, the top nonprofits took in about $81 billion.

    Although such things are hard to measure, it is possible that donors have become more sophisticated in their giving as useful information on charities has become more detailed. Yet it is easy to get distracted by ubiquitous causes that blanket every corner of society. Herewith, a guide to navigating the thicket.

    The Major Services

    One of the first stops in searching for charities is GuideStar, which contains records from 1.8 million nonprofits registered with the Internal Revenue Service.

    The free component of the GuideStar website provides access to each organization’s Form 990, the basic I.R.S. filing document for nonprofits. That is useful on the front end if you want basic information on a charity’s income, spending, mission and executive salaries.

    As with the other services, you can also pay for “premium” services from GuideStar that provide more financial analysis and access to a nonprofit’s contractors. This would help if you wanted to perform detailed comparisons of charities or to explore their financial ratios or executive compensation in greater depth.

    What GuideStar does not do is give a qualified rating of a charity. It tries to remain neutral and “is not a charity evaluator,” says Lindsay J. K. Nichols, a spokeswoman. For more intensive evaluations, you need to go to the BBB Wise Giving Alliance or Charity Navigator.

    The BBB Wise Giving Alliance, affiliated with the Council of Better Business Bureaus, has free reviews of 1,300 national charities; local BBBs have evaluations on an additional 10,000. The group applies 20 “accountability” standards — governance, oversight, effectiveness and the like — once every two years at no charge to the charities, but it does not explicitly rate them using a star or letter system.

    The alliance will specify if a charity does not meet BBB standards or “did not disclose the requested information.” About 40 percent of the charities evaluated meet all 20 benchmarks; ones that do are designated a “BBB Accredited Charity.”

    Organizations accredited by the alliance can then pay a sliding-scale fee based on their size to obtain a license to use the BBB Charity Seal on websites and fund-raising material. About 60 percent of those qualifying elect to pay the fee for the seal.

    Like GuideStar and Charity Navigator, the alliance cautions against paying too much attention to the percentage spent on nonprogram expenses, also known as the “overhead ratio.”

    The alliance’s approach appears to be more rigorous than the other two services’, although its findings are not compiled into an overall rating. Organizations are deemed “accredited” (met standards), “standards not met,” “unable to verify,” “did not disclose” and “review in progress.”

    Still, the group’s focus on audited financial statements and accountability — it also publishes in-depth newsletter articles on the subject — is a pragmatic way to view a charity’s operations.

    Art Taylor, the alliance’s president, said the group “sees where the charity is at on our 20 standards, which goes to the heart of how a charity functions.”

    To customize a search and get charity-specific ratings, Charity Navigator, which evaluates about 7,000 nonprofits, has an easy-to-use interface to find charities that match your interests.

    Focusing on financial health, accountability and transparency, Charity Navigator applies an analysis to each of its charities to come up with its star ratings (with four stars as the highest rank). It examines federal Form 990s to see how much of a charity’s income goes toward programs and what percentage is spent on administration and fund-raising. Of the three major services, Charity Navigator is the easiest to use.

    Generally, a good benchmark for a worthwhile charity is having at least 75 percent of income spent on programs, or the nonprofit’s mission, according to Sandra Miniutti, a spokeswoman for Charity Navigator.

    Aside from vetting a charity’s financials, Ms. Miniutti suggests, donors should “understand the charity’s mission — pick just a few, do your research and stick with them over time.”

    Getting Granular

    Want to dig deeper and go beyond the charity information services? You can use them to find basic information on revenue, fund-raising and spending, but you will need to go several layers deeper if you want additional scrutiny. Here are some major issues to consider:

    Have you compared the charity’s Form 990 with its annual report and audited financial statements?

    The 990 can often be opaque and may not tell you particulars on an organization’s specific programs. You may need an accountant or financial adviser acquainted with nonprofit accounting to review these documents; the audited financials contain much more detail.

    Does the charity practice “joint cost allocation?”

    This is accounting jargon for lumping in fund-raising or solicitation with the charity’s program expenses. According to the BBB Wise Giving Alliance, more than 20 percent of nationally solicited charities it reviews employ this practice, which could muddy the waters in gauging how much is really being spent on the charity’s mission. To get a clearer picture, you will need to identify the charity’s primary purpose. If it is mainly a grass-roots lobbying or public awareness organization (which means you may not be able to deduct your donation), then joint cost allocation may make sense. If it devotes its efforts to financing research, then the allocation may be a red flag.

    How does the charity evaluate its effectiveness?

    You should be able to see some examples in its annual reports. Also, ask the charity directly about its successes. Does the organization use independent auditors to benchmark its performance? Where has it failed? A transparent charity should provide this information along with progress reports.

    Eric Friedman, author of “Reinventing Philanthropy” (Potomac Books, 2013), says charities that cannot gauge their effectiveness through benchmarks “may have effective programs, but it’s hard for donors to understand how effective or compare them to other options. I’ve stopped focusing on financial measures, which can be misleading.”

    Is the mission supported by academic research?

    Organizations may be funding ineffective ways of addressing their mission. A boutique charity information service like GiveWell recommends only three organizations a year out of the hundreds it has considered since its founding in 2007. GiveWell performs extensive research to show that recommended charities are “proven, cost-effective, scalable and transparent,” said Alexander Berger, its senior research analyst. “Because we’re aiming to find the best giving opportunities possible — not to rate every charity — we don’t research charities that are unlikely to excel on our criteria.”

    Watch out for red flags.

    Because nonprofit accounting and reporting can be incomplete, suspicious activity can be hidden. Daniel Borochoff, president of CharityWatch, formerly known as the American Institute of Philanthropy, rates 600 charities with a grading system from A to F — and takes a watchdog approach that tries to expose nonprofit abuses. “There’s a lot of sneaky reporting going on,” Mr. Borochoff said. He said chicanery could often be found in “gifts in kind,” where donations may be overvalued, or in organizations with emotional appeals — some charities involving animals, children, first responders and veterans. They may be little more than aggressive fund-raising operations that do little for their missions, or funds that are diverted to officers or other purposes.

    Do you need comprehensive advice?

    If you are also concerned about tax or estate planning considerations, it would make sense to work with a wealth manager, estate-planning lawyer or certified financial planner. Many advisers also have insights into nonprofit accounting that can help you vet a charity on a deeper level. Robert J. DiQuollo, chief executive of Brinton Eaton Wealth Advisors in Madison, N.J., said he could scrutinize nonprofit line items like executive salaries and program-related expenses. “We always approach the charity directly,” Mr. DiQuollo said, “to make sure that the charity is spending money on what the donor wants.”

    Is the charity sitting on too much cash?

    You need to know if the charity is putting its cash to good use or reserving it for some other purpose. According to Wise Giving Alliance standards, “the charity’s unrestricted net assets available for use should not be more than three times the size of the past year’s expenses or three times the size of the current year’s budget, whichever is higher.” This is something you may need an experienced accountant to evaluate. The bottom line: As a donor, you need to know if your money will be put to work immediately or sidelined.

    Due Diligence

    ¶ What can you do with these ratings and reams of financial information? Although you can become immersed in nonprofit accounting arcana and employ all of the charity research services, your efforts may still not tell you if a charity is worthwhile.

    Continued in article


    "Five Really Dumb Money Moves Retirees Make:  How to Avoid Ever Having to Say 'I Lost the Nest Egg'," by Tom Lauricella, The Wall Street Journal, February 23, 2014 ---
    http://online.wsj.com/news/articles/SB10001424052702303775504579394930456252714

    After decades of saving for retirement, you never want to end up saying, "I lost the nest egg."

    For most people, retirement savings will need to be carefully tended if they are to last two or three decades, a typical life span after collecting one's final full-time paycheck.

    But there are plenty of mistakes that can be made. Some can deplete that nest egg in one fell swoop, while others can result in a slow bleed that becomes apparent only over time.

    Some missteps to avoid:

    1. Big purchases.

    It's a natural instinct for new retirees to want to kick back and treat themselves following decades of hard work.

    Ronald Myers, an adviser at Associated Financial Consultants in Fort Lauderdale, Fla., talks about clients who see some of their retirement funds as their "YOLO money"—You Only Live Once.

    "I'm the first guy to say go out and enjoy yourself early on—you aren't going to get any healthier," says Mr. Myers. But it's crucial, he says, to avoid blowing a hole in a retirement plan at the get-go. And given the uncertainty of the market, the depth of that hole may not become apparent until much later in life.

    He points to example of a retiree who plans to withdraw $25,000 a year from a $500,000 nest egg starting off by taking $50,000 to buy a boat—two years of income.

    Should that big withdrawal be followed by a market decline, the result could be many years shaved off the time those savings will last.

     

    2. No cushion.

    In retirement, a major, unexpected expense can quickly send a financial plan off the rails. But that doesn't have to happen.

    "I see a lot of people cutting it really close and living paycheck to paycheck, even though they are really paying themselves" out of their savings, says Blair duQuesnay, director of investments at ThirtyNorth Investments in New Orleans.

    The problem comes when an emergency crops up that requires laying out extra cash on short notice. If that outlay requires selling investments in the middle of a market downturn, the retiree could be locking in losses that can't be recovered.

    "It takes planning ahead," says Ms. duQuesnay. Her firm advises clients to keep six months to one year's worth of cash on hand for replenishing that stockpile.

    3. Forgetting common sense.

    Remember: "There's no such thing as a free lunch."

    That's especially the case with investments promising big payoffs with low risk.

    People "have a unique ability to suspend common sense, believing that strangers want to let us in on deals that are too good to be true, which of course, are," says Alan Roth, a financial planner in Colorado Springs, Colo.

    Mr. Roth says there are often telltale signs it's time to hang up the phone on a sales pitch. They include: a sense of urgency ("The deal is only good today!"), using a church or fraternal organization to vouch for its credibility or a play on emotions.

     

    4. Reaching for yield.

    The "no free lunch" risk to a nest egg also applies to investors who have cut back on holdings of relatively safe but low-yielding government bonds and bulked up on riskier investments that offer meatier yields—like high-yielding junk bonds, bank-loan funds or dividend-paying stocks.

    "When you substitute a fixed-income, low-volatility investment for a higher-volatility investment, the risk of a loss of principal in a down market is much higher," says Ms. duQuesnay.

    A simple litmus test for how well that higher-yielding investment will act are returns from during the financial crisis. Bank-loan funds, for example, lost an average of 29.7% in 2008.

     

    5. Letting emotions rule.

    "Acting emotionally in a down market could be mistake No. 1" when it comes to wrecking a nest egg, says Mr. Myers.

    He acknowledges that retirees who need their savings to help pay the bills will feel the pull of reacting to short-term losses. "During retirement, it's behavioral economics on steroids," he says.

    Retirees should build a portfolio that meets their long-term goals and one where they can withstand watching the inevitable downs in the markets that come with the ups.

    To put it another way, says Mr. Roth: "It's dumb to buy high and sell low."

    Jensen Comment
    It's hard to advise future retirees without knowing what they really do enjoy. For example, I think it's dumb to invest in retirement businesses unless you really, really enjoy retirement businesses or really, really need the income from retirement businesses. For example, a widow purchased a three-story house just down the road when she was a widow over 60 years of age. For a while making jewelry to pay for her mortgage payments seemed like a good idea. Now taking her truck and camper all alone to out-of-state jewelry shows has become a drag, but she needs the income in part because revaluations of her home have really clobbered her with higher property taxes in a down market (at least up here). Tax appraisers care more about village and school expenses than what property will realistically sell for up here in the remote White Mountains.

    It's probably a good idea that she invested in her jewelry business, but at her present age it's become more depressing. I don't think she's enjoying her "retirement," especially since she must do most of the house maintenance by herself. Last summer she was on a huge 40-foot extension ladder scraping and painting by herself  almost every sunny day.

    She also splits her own wood to heat that big house. What was her mistake? It was probably a mistake to purchase such a big house without the annual cash flow to cushion the expenses of taxes and maintenance while thinking she would forever enjoy making jewelry and traveling to shows.

    There's also a couple that I know who both retired from the military and invested $2 million in a bed and breakfast (mostly financed with three mortgages). Running a B&B sounded like fun until the reality of cooking breakfast for guests seven days a week became a drag year after year after year. Even with hired maid service, there are endless days of maintaining the grounds, keeping the plumbing working in 26 bathrooms, painting and papering 24 rooms, washing windows, fixing roof leaks, patching an ancient heating system, operating the front desk, dealing with happy and not-so-happy happy guests, and on and on and on. Retirement? What's that? They were more retired while on active duty.

    Then there's a retiree friend down on the highway who purchased a $180,000 motor home hoping to entice a woman friend into marrying him and touring all over North America. She considered the idea for 20 minutes and then said no way. The motor home with less than 500 miles on the odometer sat in his front yard with a "For Sale" sign for over five years (he lives on a state highway where drivers passing by could see the thing year after year). At long last he sold the thing, but I don't want to embarrass him by asking how much he lost on this dream (beside losing his would-be bride). He had 12 nice cabins and land out back that our village took over due to defaulted property tax payments.

    I paid too much for a retirement acreage, but I do enjoy this type isolated rural living. It would be a risk if my health failed and I had to hire everything done around here. However, I'm fortunate to have the retirement cash flow to do so if I must eventually hire everything done. And the outdoor work winter and summer is currently much more enjoyable than boring exercise routines in a gym. If and when I become gaga and have to go into a nursing home my estate will take a huge hit because it's impossible to recover much more than half of what I paid for this property in an up market before the real estate crash.

    However, in spite of contentment with my own retirement, it's important to note that many of those things you dreamed about all your working years may change over the course of your retirement. Firstly, you may lose some of your good health. Secondly, you may lose your spouse that was part of your retirement dreams all those years. And yet at age 65 when you're both in good health it probably would be a bummer moving into an assisted living apartment too soon. You both might quickly become depressed and bored to death in a small apartment if you have good health for the next 10-25 years.

    My own parents started their marriage in the Great Depression and never really got over feeling that saving was much, much more important than consumption. Being an only child I eventually inherited their life savings. But all they while they were retired I argued in vain that they should spend more to enjoy their retirement. But then again if they were spending more to enjoy their retirement they would probably would not have enjoyed their retirement. They were more happy living a very modest life beneath what they could well have afforded. Unlike me they did not enjoy expensive restaurants and hotels. They ordered the cheapest things on menus in small farm town restaurants and pretended those were the selections they enjoyed the most as long as there was a salad bar.

    My mother always said:  "If you're going to buy big, buy black dirt."

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    Question
    Why do so few people going into retirement decide against lifetime fixed annuities?

    Jensen Answer
    In 2006 I opted for TIAA lifetime annuities that pay out a fixed amount of monthly income for as long as my wife and/or I are alive. Other options included variable lifetime annuities (that go up and down with the stock market) and lump-sum withdrawals of cash that we could manage ourselves. Lump-sum withdrawal might have been more attractive if we were already sufficiently wealthy to have retirement needs covered. Then we could have given more away to family and charities. But we were not that wealthy.

    A lifetime annuity works best if you live many years beyond when all your retirement funds are depleted. A lifetime annuity is the gift that keeps on giving.
     

    A lifetime annuity works best if you live many years beyond when all your retirement funds are depleted. A lifetime annuity is the gift that keeps on giving.

    At our ages inflation is less of a risk concern than for younger people who are still investing toward retirement. However, if I were advising a younger person who becomes eligible for a TIAA payout because of a divorce I would stress the inflation risks of a very long-term fixed annuity. A variable annuity becomes a better option depending upon age.

    The huge unexpected benefit from our 2006 TIAA retirement deal was that our fixed monthly annuity income was not affected by the economic crash of 2008 like it would have been with a variable lifetime annuity. Since the stock market eventually recovered such losses in monthly income would have eventually recovered pretty well except for the losses before the stock market bounced back.

    It was just plain luck that I retired in 2006 rather than 2009. The decision of the Federal Reserve to drive interest rates down to nearly zero coupled with the Quantitative Easing program must have made it very difficult for TIAA to offer fixed annuity deals after 2008 like the deal I negotiated in 2006. However, I did not investigate the difference between the monthly annuity amount I negotiated in 2006 with the amount I could have negotiated with TIAA  in 2009.

    Note that interest rates on safe investments like bonds and CDs have not bounced back like the stock market. This is because of the damaging policies of the Federal Reserve on the what used to be safer investments --- safer investments that now return virtually zero. I don't look for safe investments to return much of anything for a long, long time. The Fed has forced investors to take on more financial risks with its low-interest policies that don't don't seriously show signs of change in our troubled unemployment economy.

    There are various other considerations when negotiating a retirement annuity, some of which are discussed by Harvard's Justin Fox in the article below. I listened carefully to the advantages and disadvantages of retirement annuities that the TIAA counselor laid out for me before I signed on the dotted line. One consideration for me was the 10-year grace period in which a declining balance in our retirement fund balance goes into our inheritance estate if Erika and I both die before 2016. After 2016 nothing of this balance goes into our estates and if we live long enough TIAA takes a big hit. However, we felt that we had sufficient outside savings to make our children sufficient bequests if we pass on after 2016. Retirees without much in the way of outside savings might not like this 10-year limit.

    There are also other uncertainties. For example, there can be tax advantages or disadvantages of lump-sum withdrawals at retirement. Investors who feel almost certain that income taxes are going to become much higher in the future might opt for a lump-sum payout. Those that think taxes will be lower are less inclined to opt for the lump-sum payout, although there are other considerations. For example, if I had taken a lump-sum payout I probably would have invested most of the payout in an insured long-term tax exempt mutual fund even though there are ups and downs in the values of such funds --- even though the tax-free cash flows are fairly steady month-to-month.

    I did not cover some of the points mentioned by Justin Fox in the article below.

    Always take advantage of the free investment counseling of your Personnel Department and the companies trying to sell you a retirement annuity. Personally I'm not a big fan of paying for investment advice since there are so many free services from TIAA, Vangard, Fidelity, etc. Professionals in these outfits will talk to you for free.

    "What Do People Have Against Retirement Income?" by Justin Fox, Harvard Business Review Blog, February 25, 2014 ---
    http://blogs.hbr.org/2014/02/what-do-people-have-against-retirement-income/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29&cm_ite=DailyAlert-022614+%281%29&cm_lm=sp%3Arjensen%40trinity.edu&cm_ven=Spop-Email

    Bob Jensen's free investment helpers that may not be worth the price are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelper


    "6 Retirement Accounts You Should Know About (Part2)," by Laura Adams, Money Girl, April 23, 2013, Episode 311 ---
    http://moneygirl.quickanddirtytips.com/retirement-plan-types-pt2.aspx

    Frontline broadcast on "The Retirement Gamble,"April 23, 2013 ---
    http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/
    For details see
    http://www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/retirement-gamble/the-retirement-gamble-facing-us-all/

    If you’ve been watching any commercial television lately, you are well aware that the financial services industry is very busy running expensive ads imploring us to worry about our retirement futures. Open a new account today, they say.

    They are not wrong that we should be doing something: America is facing a retirement crisis. One in three Americans has no retirement savings at all. One in two reports that they can’t save enough. On top of that, we are living longer, and health care costs, as we all know, are increasing.

    But, as I found when investigating the retirement planning and mutual funds industries in The Retirement Gamble, which airs tonight on FRONTLINE, those advertisements are imploring us to start saving for one simple reason. Retirement is big business — and very profitable. It doesn’t take a genius to figure out that the more we save into the industry’s financial products, the more money they make in fees and commissions trading our hard-earned cash. And as long as they don’t run away with our money or invest it in a Ponzi scheme, they have little in the way of accountability to us when something goes wrong. And even then it can be hard to fight back.

    Big banks, brokerages, insurance companies and other financial service providers operate under something called a suitability standard — which says they don’t have to give you the best advice, just advice that isn’t too egregiously terrible.

    Let’s say you sit down with an adviser at your brokerage or bank and ask for some advice on how you should allocate your retirement savings, or which funds you might want to choose for your IRA.

    You’ll get lots of advice, but chances are it won’t be worth much. Eighty five percent of all financial advisers and financial planners are really just brokers or salesman. Their incentive is to sell you a product that makes them a higher commission, not necessarily a product that maximizes your chances of saving more. Only 15 percent of advisers are “fiduciaries” — advisers who by law must operate with your best interests in mind.

    Last year, the Obama administration proposed a rule to mandate that all financial advisers, financial planners and other assorted financial wizards would have to adopt a fiduciary standard when it came to employee retirement accounts such as your 401(k) or IRA account. The financial services industry, which today manages something upwards of $10 trillion of our retirement nest eggs, thought this was a bad idea and pushed back hard. Scores of their protest letters poured into the U.S. Labor Department, the branch of our government responsible for regulating employee retirement accounts.

    Congress, too, was hit with a furious lobbying campaign. This would be way too expensive, the industry said; if we have to provide such a standard of service, we will either have to pack up and find another business line, or have to pass the increased costs on to our customers. The Obama administration pulled their proposal last fall.

    How would a new fiduciary rule change things? Chances are you would be sold less expensive products, not only in your IRA accounts but inside your company 401(k) as well. It’s all about fees. While reporting on retirement plans for FRONTLINE, nothing has been more surprising to me than the corrosive effect of fees on our retirement savings.

    It’s this simple: Fund fees can erode as much as half or more of your prospective gains.

    For the sake of dramatizing the point, John Bogle, founder of Vanguard, the world’s largest mutual fund company and pioneer of low-cost index funds, gave me a startling example while we were filming. Assume you are invested in a mutual fund, he says, with a gross return of 7 percent, but that the mutual fund charges you an annual fee of 2 percent.

    Over a 50-year investing lifetime, that little 2 percent fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming.

    In short, fees matter. So what can you do? You aren’t going to find a fund that invests your money for free, but experts say you can come close by buying index funds. Their fees can be a tenth of what the average mutual funds charges. And over time, in bull and bear markets, on average, index funds perform better than their more expensive actively managed fund cousins. This is no secret to anyone who is paying attention.

    So why aren’t our trusted financial advisers and those ads telling us to buy index funds? Why do some 401(k) plans not even offer them on their menus?

    It’s because even though an index fund might be a better option for you and me, a broker operating under a suitability standard has no incentive to sell it to us. He or she will make higher commissions from options that have higher fees.

    Sadly, a recent AARP study reported that 70 percent of mutual fund savers were not even aware that they were paying any fees at all.

    Continued in article

    Dan Stone's summary of the above Frontline show:

    Enjoyed it though didn't find much new here. Basic messages:

    1. index funds are cheaper and, in the long run, preferred (Jack Bogle)
    2. managed funds are a scam to generate fees for the mutual fund industry
    (which some would certainly debate)
    3. most Americans don't have enough for retirement
    4. mutual funds make it hard to determine their fees
    5. the financial services industry, through massive donations, prevents any
    attempts to increase transparency in the financial services industry.

    I've bought Pound Foolish, after hearing an interview with its author, but haven't
    started reading it yet

    (http://www.amazon.com/Pound-Foolish-Exposing-
    Personal-Industry/dp/1591844894
    )

    Dan Stone

    Bob Jensen's personal finance helpers (but not his advice which is free and not worth the money) ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Remember that my financial advice is free and probably not worth the money. After selling the family farm in Iowa and my home in San Antonio, most of my liquid savings is invested in an enormous  Vanguard Long-Term "Guaranteed" Tax Exempt Fund.
    "Apocalypse, Not Now, for Municipal Bonds," by Randall W. Forsyth, Barron's, April 23, 2013 ---
    http://online.barrons.com/article/SB50001424052748703889404578438641361922074.html?mod=BOL_da_udwsd#articleTabs_article%3D0
    $573.2 million in Munis defaulted in 2013 (0.6% of the $3.7 trillion outstanding) versus 1.01% for 2013 .
    My investment returns were very satisfactory and stable throughout the economic crisis that sent stocks soaring.
    At my age I care more about steady annual tax-exempt cash flows rather than valuation ups and downs and hyper inflation risk.
    When I need cash for something big like a new tractor I simply write a Vanguard check. I love the liquidity of this fund.
    Fortunately, however, my TIAA lifetime annuities cover virtually all of our living expenses, including payments on a large mortgage.
    I could write a Vanguard check to pay off the mortgage, but there are tax advantages of not doing so unless unlikely tax reform clobbers tax exempt interest income.


    Sadly, more than half of today’s U.S. retirees will rely on Social Security for more than 50% of their total income, leaving them with the painful choice of either a rather severe drop in living standards, or else risking prematurely exhausting savings and being at the mercy of children or relatives.
    "Latest DALBAR report underscores poor long-term performance of individual investors," The Mathematical Investor, July 2014 ---
    http://www.financial-math.org/blog/2014/05/latest-dalbar-report-underscores-poor-long-term-performance-of-individual-investors/

    As we emphasized in a December 2013 Mathematical Investor blog, individual investors are not very well equipped, and certainly not very effective, in managing their own investment portfolios.

    This is unfortunate, because fewer workers than in the past, particularly in the U.S., are covered by a “defined-benefit” retirement system, namely a pension that guarantees a certain proportion of one’s income at retirement, based on the number of years in service, in perpetuity until one’s death. Instead, the majority of the growing army of American baby boomers (according to the Population Reference Bureau, 76.4 million Americans were born in the period 1946-1966) have to rely on 401K systems or the equivalent, where they must contribute (along with matching contributions, in many cases, by employers) to an investment fund that they have either partial or full discretion to manage. Indeed, more than any generation before, the present generation of workers will be personally responsible for their future financial well-being.

    Other nations are facing similar challenges. In Canada, for instance, their version of “social security” provides only about half what it does in the U.S. In Australia, large employers such as universities typically place roughly 17% of a worker’s income into a “superannuation fund”. In New Zealand, this fraction is 7%. In Canada, pension savings are taxed as they are withdrawn, whereas in Australia superannuation funds are not taxed provided they are withdrawn as annuities. In continental Europe, mandatory retirement rules still exist, while in the English-speaking world, such rules, mercifully, are largely a thing of the past.

    How well are today’s workers doing in saving for retirement? Sadly, more than half of today’s U.S. retirees will rely on Social Security for more than 50% of their total income, leaving them with the painful choice of either a rather severe drop in living standards, or else risking prematurely exhausting savings and being at the mercy of children or relatives. Many should at least lower their expectations for life after retirement, but there is little evidence that most workers nearing retirement are facing this unpleasant reality.

    Of even greater concern is the level of skill with which most individual investors manage their nest eggs. We mentioned in our earlier Mathematical Investor blog a report known as the Quantitative Analysis of Investor Behavior, produced by the DALBAR organization, which attempts to measure short- and long-term success by individual investors. In that blog, we cited results from the 2012 report.

    Now the latest (2014) edition of this report is available. So how well are today’s investors doing? The results are even more discouraging than in previous reports. The report notes that:

    1. Over the past 20 years, “equity fund” investors achieved an average 5.02% annualized return, which is 4.2% less than the 9.22% that he/she could have achieved by simply investing funds in an S&P500 index-tracking fund. This gap expanded in 2013, for only the third time in ten years.
    2. Over the bull market of the past three years, “equity fund” investors achieved only an average 10.87% annual return, lagging the average annual S&P500 return (16.18%) by 5.31%.
    3. Investors in “asset allocation funds” did even more poorly. Their 20-year average annual return was only 2.53%, lagging the S&P500 index (9.22% per annum) by 6.69% per annum.
    4. Investors in “fixed income funds” did more poorly still. Their 20-year average annual return was an abysmal 0.71%, fully 8.51% less than the S&P500 index, and 5.03% per annum less than the Barclay’s Aggregate Bond Index (5.74% per annum) over this time.
    5. Not surprisingly, investors show little evidence of skill in “market timing.” The DALBAR report notes that in the six best months of 2013, when the market was up sharply, there was no evidence that individual investors moved more than average amounts into equity funds.

    As MarketWatch commentator Paul Merriman observes, the typical investor’s emotion-based trading in and out of securities based on fear and knee-jerk reaction to crises is counter-productive to long-term success:

    Every year the conclusion [of the DALBAR report] is the same: On average, investors earn less than mutual fund performance figures imply. Sometimes they earn much less. … One conclusion: No matter whether the market is booming or busting, “Investor results are more dependent on investor behavior than on fund performance.” Investors who buy and hang on are consistently more successful than those who move in and out of the markets.

    In our previous Mathematical Investor blog, we emphasized how the typical individual investor is relatively poorly educated and informed about making personal financial decisions. As the U.S. Securities and Exchange Commission noted in a 2012 report, “investors have a weak grasp of elementary financial concepts and lack critical knowledge of ways to avoid investment fraud.”

    These experiences are exacerbated by the larger plague of disappointing performance in mathematics and science education. This was underscored today with the release of the latest results for U.S. 12th graders on the National Assessment of Educational Progress (NAEP) test. The overall score of 153 in mathematics is identical to that from 2009, and is only slightly higher than the 150 score in 2005, in spite of years of effort and billions of dollars spent to improve K-12 education.

    The DALBAR report concludes

    Attempts to correct irrational investor behavior through education have proved to be futile. The belief that investors will make prudent decisions after education and disclosure has been totally discredited. Instead of teaching, financial professionals should look to implement practices that influence the investor’s focus and expectations in ways that lead to more prudent investment decisions.

    Similarly, Louis S. Harvey, President of DALBAR, argues that

    It is now past the time for the investment community and its regulators to understand that the principle of educating uninterested investors about the complexities of investing is unproductive. … We need a fundamental change that transforms investment thinking into meaningful decisions and choices for retail investors.

    [Added 12 May 2014: A column by Chuck Jaffe summarizes a study by Natixis Global Asset Management on why investors often make poor financial decisions.]


    "The Science Behind Social Security Benefits Calculations," by Theodore J. Sarenski, AICPA, October 20, 2014 ---
    http://blog.aicpa.org/2014/10/the-science-behind-social-security-benefits-calculations.html#sthash.t77ImEv5.i4UykguJ.dpuf

    While the Social Security Administration calculates Social Security benefits, it is your due diligence to know the basics so that you can understand how an additional year of earning will affect your clients’ projected benefit.

    Continued in article-

    Jensen Comment
    This is more about understanding the regulations than science. The regulations are a bit complicated.


    "Offering a Helping Hand on Retirement Savings:  New Website Provides Investment Novices Free Portfolio Recommendations; Asking Questions of the CEO," by Katherine Boehret, The Wall Street Journal, June 5, 2012 ---
    http://professional.wsj.com/article/SB10001424052702303506404577448503218010424.html

    How often do you tinker with your retirement savings? Many people think about this when starting a job or opening a 401(k), but sometimes not again until they are ready to retire. According to financial advisers, that's too late.

    This week, I forced myself to look at accounts I rarely monitor as I tested FutureAdvisor.com, a website founded by two former Microsoft engineers who are also a registered investment adviser and chartered financial analyst, respectively. They wanted to create an easy way for people to manage their retirement savings, primarily using index funds, and they based the site's suggestions on what they consider to be the best practices in the industry and in academia.

    FutureAdvisor, which has no ads, bills itself as a free alternative to paying a lot for financial advice from professionals, who often charge a 1% annual fee or work on commission. Many big investment firms offer retirement-savings services, but these generally don't offer step-by-step advice for an investor's complete portfolio. FutureAdvisor expects to make money when it introduces later this year an optional premium service, which will charge an annual fee of less than 0.25% of your assets to rebalance and maintain your portfolio, automatically. It says suggestions offered on the site are made solely on merit, with no kickbacks or commissions to FutureAdvisor.

    The site differs from budgeting sites like Mint.com that don't specialize in retirement savings. Instead, Mint makes money through recommendations for users, like which credit cards carry lower fees.

    I'm not a financial expert; rather, I looked at FutureAdvisor through the lens of an average person who might want to use the site. Its investment philosophy may not be right for everybody.

    FutureAdvisor is easy to use and walks users through a set of simple steps. There's no asset minimum to use the site, though people who are already in retirement can't use it. Pop-up explanations and options to submit questions to the site's CEO and co-founder, a registered investment adviser, are available as you go.

    For security purposes, FutureAdvisor uses bank-level, 128-bit SSL (Secure Socket Layer) encryption for all communications. It can't move money or make transactions; instead, people do this by clicking on links that send them to their financial institutions where they may pay a fee for certain transactions. Login information is never stored on the website; rather, it's handled by partner company Yodlee.

    To get started with FutureAdvisor, I entered my email and a password to create an account and then answered questions about myself. These included birthday, current annual income, desired retirement age, desired retirement income, age when I started consistently saving for retirement, approximate value of my retirement investments and marital status. Thankfully, messages that say, "What is this?" appear beside each question, explaining why it's asked.

    Next, you enter the names of brokerage firms that handle your accounts, like Fidelity for a 401(k) or T. Rowe Price for a Roth IRA. If you don't already have online accounts with each of these firms, you must set up accounts on their websites so you can return to FutureAdvisor, enter your username and password and access your data.

    FutureAdvisor recognized a lot of different brokerage firms that I searched for, and this week it added Thrift Savings Plans, or TSPs, which are used by government employees, including military personnel. If a brokerage firm isn't on the site, you can suggest it in a feedback box. I did this, and my requested firm was added within hours.

    When personal questions are answered and brokerage-firm information is retrieved, FutureAdvisor asks you to choose a conservative, moderate or aggressive approach with explanations of each. I chose an aggressive option because of my relatively young age. Various charts filled the screen showing recommendations for my stock/bond split, equity style, diversification split and glide style. Terms like this may lose average users, but brief explanations beside them helped, and I read a References and Citations pop-up menu filled with sources from which the advice was generated.

    The most helpful section of the site showed recommendations for my portfolio.

    Continued in article

    FutureAdvisor --- https://www.futureadvisor.com/

     


  • "(More) Clarity on Adjunct Hours (including healthcare insurance guidance)," by Doug Lederman, Inside Higher Ed, February 11, 2014 ---
    http://www.insidehighered.com/news/2014/02/11/irs-guidance-health-care-law-clarifies-formula-counting-adjunct-hours 

    The Obama administration on Monday released its long-awaited final guidance on how colleges should calculate the hours of adjunct instructors and student workers for purposes of the new federal mandate that employers provide health insurance to those who work more than 30 hours a week.

    The upshot of the complicated regulation from the Treasury Department and the Internal Revenue Service:

    • On adjuncts, colleges will be considered on solid ground if they credit instructors for 1 ¼ hours of preparation time for each hour they spend in the classroom, and instructors should be credited for any time they spend in office hours or other required meeting time.
    • On student workers, the IRS opted to exclude work-study employment from any count of work hours, but the administration declined to provide an exemption for student workers over all. As a result, colleges and universities will be required to provide health insurance to teaching and research assistants who work more than 30 hours a week.

    Adjunct Hours

    The issues of how to count the hours of part-time instructors and student workers have consumed college officials and faculty groups for much of the last 18 months, ever since it became clear that the Affordable Care Act definition of a full-time employee as working 30 hours or more a week was leading some colleges to limit the hours of adjunct faculty members, so they fell short of the 30-hour mark.

    All that the government said in its initial January 2013 guidance about the employer mandate under the health care law was that colleges needed to use "reasonable" methods to count adjuncts' hours.

    In federal testimony and at conferences, college administrators and faculty advocates have debated the appropriate definition of "reasonable," with a focus on calculating the time that instructors spend on their jobs beyond their actual hours in the classroom. The American Council on Education, higher education's umbrella association and main lobbying group, proposed a ratio of one hour of outside time for each classroom hour, while many faculty advocates have pushed for a ratio of 2:1 or more.

    In its new regulation, published as part of a complex 227-page final rule in today's Federal Register, the government said that it would be too complex to count actual hours, and it rejected proposals to treat instructors as full time only if they were assigned course loads equivalent or close to those of full-time instructors at their institutions.

    The administration continued to say that given the "wide variation of work patterns, duties, and circumstances" at different colleges, institutions should continue to have a good deal of flexibility in defining what counts as "reasonable."

    But in the "interest of predictability and ease of administration in crediting hours of service for purposes" of the health care law, the agencies said, the regulation establishes as "one (but not the only)" reasonable definition a count of 2.25 hours of work for each classroom hour taught. "[I]n addition to crediting an hour of service for each hour teaching in the classroom, this method would credit an additional 1 ¼ hours service" for "related tasks such as class preparation and grading of examinations or papers."

    Separately, instructors should also be credited with an hour of service for each additional hour they spend outside of the classroom on duties they are "required to perform (such as required office hours or required attendance at faculty meetings," the regulation states.

    The guidance states that the ratio -- which would essentially serve as a "safe harbor" under which institutions can qualify under the law -- "may be relied upon at least through the end of 2015."

    By choosing a ratio of 1 ¼ hours of additional service for each classroom hour, the government comes slightly higher than the 1:1 ratio that the higher education associations sought, and quite a bit lower than the ratio of 2:1 or higher promoted by many faculty advocates.

    David S. Baime, vice president for government relations and research at the American Association of Community Colleges, praised administration officials for paying "very close attention to the institutional and financial realities that our colleges are facing." He said community colleges appreciated both the continued flexibility and the setting of a safe harbor under which, in the association's initial analysis, "the vast majority of our adjunct faculty, under currernt teaching loads, would not be qualifying" for health insurance, Baime said.

    Maria Maisto, president and executive director of New Faculty Majority, said she, too, appreciated that the administration had left lots of room for flexibility, which she hoped would "force a lot of really interesting conversations" on campuses. "I think most people would agree that it is reasonable for employers to actually talk to and involve employees in thinking about how those workers can, and do, perform their work most effectively, and not to simply mandate from above how that work is understood and performed," she added.

    Maisto said she was also pleased that the administration appeared to have set the floor for a "reasonable" ratio above the lower 1:1 ratio that the college associations were suggesting.

    She envisioned a good deal of confusion on the provision granting an hour of time for all required non-teaching activities, however, noting that her own contract at Cuyahoga Community College requires her to participate in professional development and to respond to students' questions and requests on an "as-needed basis." "How does this regulation account for requirements like that?" she wondered.

    Student Workers

    The adjunct issue has received most of the higher education-related attention about the employer mandate, but the final regulations have significant implications for campuses that employ significant numbers of undergraduate and graduate students, too.

    Higher education groups had urged the administration to exempt student workers altogether from the employer mandate, given that many of them would be covered under the health care law's policies governing student health plans and coverage for those up to age 26 on their parents' policies. The groups also requested an exemption for students involved in work study programs.

    The updated guidance grants the latter exemption for hours of work study, given, it states, that "the federal work study program, as a federally subsidized financial aid program, is distinct from traditional employment in that its primary purpose is to advance education."

    But all other student work for an educational organization must be counted as hours of service for purposes of the health care mandate, Treasury and IRS said.

    Steven Bloom, director of federal relations at the American Council on Education, said higher ed groups thought it made sense to exempt graduate student workers, given that their work as teaching assistants and lab workers is generally treated as part of their education under the Fair Labor Standards Act. He said the new guidance is likely to force institutions that employ graduate students as TAs or research assistants -- and don't currently offer them health insurance as part of their graduate student packages -- to start counting their hours.

    The guidance also includes a potentially confounding approach to students who work as interns. The new regulation exempts work conducted by interns as hours of service under the health care employer mandate -- but only "to the extent that the student does not receive, and is not entitled to, payment in connection with those hours."

    Continued in article

    Jensen Question
    How should a university account for a doctoral student who happens to teach 33 hours one semester and works less than 30 hours in all other semesters of the doctoral program? Is the university required to provide health coverage for zero, one, or more years while the student is a full time student in the doctoral program? I assume the university must provide health insurance for one year, but I'm no authority on this issue.

    There also is a huge difference in hours of work required for teaching. A doctoral student who only teaches recitation sections under a professor who provides the lecture sections, writes the syllabus, writes the examinations, and essentially owns a course versus a doctoral student who owns only section of governmental accounting with no supervision from a senior instructor.

    When I was Chair of the Accounting Department at Florida State University, the wife (Debbie) of one of our doctoral students (Chuck Mulford) had total control of the lectures and 33 recitation sections of basic accounting each semester where most of the recitation "instructors" were accounting doctoral students. Debbie had her CPA license and a masters degree, but she was not a doctoral student. She was very good at this job. The recitation instructors had almost no preparation time and did not design or grade the examinations. They did not own all 33 sections like Debbie owned all 33 sections. It would be a bit unfair to give the recitation instructors as much pay for preparation as the selected doctoral students who taught more advanced courses and essentially owned those courses in terms of classroom preparation and examinations.

    Bob Jensen's threads on controversies in higher education (including use of adjuncts) ---
    http://faculty.trinity.edu/rjensen/HigherEdControversies.htm

     


  • "The Law About Debt Collections Harassment," by Laura Adams, Money Girl, May 21, 2013 ---
    http://moneygirl.quickanddirtytips.com/debt-collections-harassment.aspx


    Teaching Case
    From The Wall Street Journal Accounting Weekly Review on January 10, 2014

    Delaying IRA Contributions Can Be Costly
    by: Jonnelle Marte
    Jan 05, 2014
    Click here to view the full article on WSJ.com
     

    TOPICS: Individual Income Taxation, Individual Taxation, IRA Contributions, IRAs

    SUMMARY: Taxpayers can contribute up to $5,500 each year to individual retirement accounts--$6,500 for those over 50. "An analysis of traditional and Roth IRA contributions made by Vanguard Group customers for the 2007 through 2012 tax years showed that, on average, 41% of the dollars contributed to IRAs for any given tax year are invested between January and April of the following year. Half of those dollars are contributed in the first half of April...and only 10% of dollars are contributed in January of the corresponding tax year...." A time value of money comparison in the article shows that this habit-which most advisers think stems from investor laziness-can cost a substantial difference in final savings available at retirement

    CLASSROOM APPLICATION: The article may be used in a class on personal taxes or when covering topics in the time value of money.

    QUESTIONS: 
    1. (Advanced) What is an individual retirement account? A Roth IRA?

    2. (Advanced) According to tax law, when are taxpayers allowed to make IRA deductions?

    3. (Introductory) According to findings by Vangauard Group from analyzing their customer deposits to IRA accounts, when do most taxpayers make IRA contributions?
     

    Reviewed By: Judy Beckman, University of Rhode Island"

    "Delaying IRA Contributions Can Be Costly," by Jonnelle Marte, The Wall Street Journal, January 5, 2014 ---
    http://online.wsj.com/news/articles/SB10001424052702304477704579256610849790176?mod=djem_jiewr_AC_domainid

    It's a new year. And that means it's time for investors to do what they could have done last year—but didn't.

    Namely: make contributions to their 2013 individual retirement accounts. Indeed, an analysis of traditional and Roth IRA contributions made by Vanguard Group customers for the 2007 through 2012 tax years showed that, on average, 41% of the dollars contributed to IRAs for any given tax year are invested between January and April of the following year. Half of those dollars are contributed in the first half of April—the final weeks when contributions for the previous year can be made.

    The study found only 10% of dollars are contributed in January of the corresponding tax year, the earliest month contributions can be made. "We are trying to encourage people to change their way of thinking and think about it sooner," says Maria Bruno, a senior investment analyst with Vanguard Investment Strategy Group. Valid Excuse?

    There are legitimate reasons that big dollars flow into IRAs near the tax-filing deadline. At that point, taxpayers typically know whether their income for the prior year was low enough to qualify for deductible contributions, and can see by exactly how much a contribution would lower their tax bill.

    But some advisers say the habit is one of the ultimate examples of investor laziness, nearly on par with not maxing out the company match for 401(k) contributions or not seeking retirement advice until after retirement.

    "As humans we naturally procrastinate," says Mackey McNeill, an accountant and financial adviser in Bellevue, Ky.

    Procrastination can be costly. The problem, advisers and retirement consultants say, is that investors who make IRA contributions at the last moment miss out on 16 months of potential gains (from January of one year until April of the following year), as well as the chance for those gains to compound over many years. Even if two investors contribute the same amount of money over the years, the person who starts earlier could end up with significantly more savings down the line.

    Compare a saver who makes the maximum annual IRA contribution of $5,500 for those under age 50 in January of each year with another saver who contributes the same amount each April 15 of the following year. Over 31 years, assuming the money is invested in a moderate portfolio earning a hypothetical 7% annual return, the saver who makes full contributions in January could end up with $83,000 in additional savings after 30 years, even though both investors contributed equal amounts—about $170,500—overall, according to an analysis by Ms. McNeill. Tax Burden

    Another downside to putting off contributions: It could add to your tax bills. Money in a taxable account over that 16-month period may incur gains that would have been deferred in an IRA, says Ed Slott, an accountant and founder of IRAHelp.com, a website for retirement savers.

    Some pros say investors' excuses for not contributing as early as possible are looking thin. Most people don't see their income swing wildly from one year to the next, Ms. Bruno says. They can likely use last year's tax return to decide whether to make a contribution for the current tax year each January.

    Procrastinators still have time to change their ways. Some can catch up if they now make their 2013 and 2014 contributions—a total of $11,000 for those under 50 contributing the maximum for each year, Ms. McNeill says. Those investors can then get in the habit of making their IRA contributions at the start of each year. (Investors 50 or older can contribute as much as $6,500 to their IRAs each year.)

    While a doubled-up contribution is a lot to set aside at once, she says: "You've only got to make this change for one year."


    Controversy and Scandal Surrounding John Hancock and the Compounding of Interest
    "Our signature 1776 revolutionary:  John Hancock's role as treasurer left an uneasy Harvard," Harvard Gazette, July 2, 2013 ---
    http://news.harvard.edu/gazette/story/2013/06/our-signature-1776-revolutionary/

    Jensen Comment
    To this day, many people in the USA do not understand the difference between simple interest versus annual compounding versus continuous compounding ---
    http://en.wikipedia.org/wiki/Compound_Interest
    Except for very long holding periods, continuous compounding does not add all that much to annual compounding. But compounding adds a huge amount relative to simple interest.

    For example, if the Lenape Indians in 1626 had invested the $24 they received for Manhattan at 6% compounded annually they could perhaps buy the island back in 2013 for the accumulated savings of  $149,135,522,178.18.  In my first course in economics this was a footnote in the famous textbook by Paul Samuelson (with slightly different numbers). If this was indexed over time for inflation and exempt from taxation the Lenapes could perhaps buy the entire State of New York in 2013.

    It's no wonder that in 1793 Harvard University badly wanted $529 accumulated compound interest owed by the John Hancock estate.


    "Wallet.AI Aims to Serve Up Location-Based Financial Advice:  An app called Wallet.AI wants to put a financial advisor in your pocket," by Rachel Metz, MIT's Technology Review, September 23, 2013 --- Click Here
    http://www.technologyreview.com/news/519346/walletai-aims-to-serve-up-location-based-financial-advice/?utm_campaign=newsletters&utm_source=newsletter-daily-all&utm_medium=email&utm_content=20130924


    Mortgage Rate Calculation Tools --- http://www.mortgagerates.net/additional-resources/calculation-tools/

    Bob Jensen's threads on online calculators --- http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators


    Smart About Money - National Endowment for Financial Education --- http://www.smartaboutmoney.org/


    "Teach Financial Literacy," by Steven Bahls, Chronicle of Higher Education, June 13, 2011 ---
    http://www.insidehighered.com/views/2011/06/13/essay_on_responsibility_of_colleges_to_teach_financial_literacy

     As a college president, I ask students and graduates what are we doing correctly and what can we improve upon. The typical responses to how we can improve are not surprising — more parking and more financial aid (often in that order). Lately the most common answer from recent graduates as to how we can improve has been surprising — more education about financial literacy and the practical aspects of living in today’s world.

    I hear the following comments with increasing frequency, particularly since the Great Recession of 2008:

    • had no idea of the impact of my student debt and credit card debt on my ability to live a comfortable life after college.
       
    • Living in the residence halls and dining at the college, I didn’t need to know about budgeting and renting an apartment. I had no idea how to create a budget so I could live responsibly and comfortably on my salary.
       
    • In college I learned how to cultivate a pointed argument, but quickly learned that in the workplace an aggressive argument can get you fired. No one told me about how to disagree with your boss and not have your job threatened.

    Faculty and administrators at liberal arts colleges do not shy at complex thinking. We tend to scrutinize the details even as we comprehend the big picture. We look for connections among areas of thought, and revel in a multitude of perspectives. By the end of their four years on campus, our students have benefited from a well-rounded, richly layered education. I believe most even recognize what it means to be liberally educated. Having learned to "turn the crystal" as they develop their views and goals, they are confident and able to find success on many levels.

    Why then do so many recent graduates seem unable to demonstrate sound decision-making in an area as fundamental as finances and entering the work world?

    Is it possible that in our efforts to foster creative and critical problem solving, we neglect the basics of responsible day-to-day living and working? As we carefully engage students in discerning shades of gray, is it at the expense of black and white?

    Two events have led me to ask these questions. First is the number of conversations like those described above, with graduates who confided to me their frustrating lack of “real-world” financial knowledge. The second is the fact of the high loan default rate among recent college graduates, which is 7 percent nationwide (Augustana’s rate is 4.2 percent). I know I am not alone in asking the question: What should we do?

    Personal Prosperity and the Common Good

    Jon Meacham, the former editor of Newsweek, addressed the 2011 Council of Independent College Presidents Institute. Meacham praised the role of liberal education, noting that "people who know about Shakespeare tend to create the Internet." But if appreciating Shakespeare and other skills common to a liberal education is viewed by most as "quaint and quirky," liberal education will not survive. Instead, he argues that liberal education must be "vital and relevant" by "training young minds to solve problems and to see what others have yet to see and to think energetically about creating jobs and wealth," which Meacham calls the "oxygen of democracy."

    I'd go one step further than Meacham. Our graduates can’t create wealth and jobs if they don’t have the ability to balance a checkbook, or the skills to hold a job.

    When asked to define "personal success," I think it is fair to suggest that most college freshmen would put "financial success" toward the top of their list. As they begin taking liberal arts courses, they connect their learning to other aspects of their lives, and many begin to think of a career as something more than just a paycheck. They develop meaningful working relationships with faculty members and other students, and may experience some peaks in their education — whether through an internship, international study, research with faculty or other achievements in their major studies. Their definition of success develops more facets.

    At Augustana College, we have long promoted high-impact learning experiences as well as the close relationships that allow integrated and collaborative learning to flourish. Recently we have begun to take new steps toward teaching certain life skills fundamental to ensuring success of all kinds.

    Leadership about financial literacy must come from the top. I remind our students that if they live like college graduates with good jobs while they are students, their debt levels will cause them to live like students when they graduate. Going out to a mid-priced restaurant twice a week for four years could easily cost $8,000. Putting those charges on a credit card and carrying the balance over four years tips the cost to well over $10,000.

    Five years ago, before the severe economic downturn, we introduced a class on personal finance. Offered each spring and fall term, the class is packed with seniors and some juniors. Having read Plato and Neruda, spent hours upon hours working in our human cadaver or volcano lab, or climbed Machu Picchu, these students suspect they must improve their financial literacy before they graduate.

    Their instructor, an alumnus retired banker, begins by teaching how to use financial templates. The students create a personal profile and then produce a cash flow statement for the previous year. After clarifying their own understanding of their financial history, which generally is filled with gaps until this class, they work with their instructor on the process of creating a budget for the next year. Taking into account three to four personal financial goals (e.g., paying for students loans, emergency funds, etc., and even retirement), the students lay their financial path for the future. At all times throughout the class they keep in mind their current net worth, and how that value should affect their financial decisions. The course is such a success that, given the financial illiteracy demonstrated by too many young alumni, we now are offering a free three-hour seminar as a "crash course" in personal finance for our graduating seniors.

    Sharing Responsibility

    Augustana is not the only liberal arts college to offer such a class, and there is more we all can do. Many liberal arts colleges are adding majors that address personal financial viability in a changing world and also attract prospective students in an increasingly competitive market.

    Augustana’s newest majors — which extend from traditional majors — include graphic design, neuroscience, environmental studies, multimedia journalism and engineering physics, among others. While some of our faculty state concerns that our college’s liberal arts foundation might be shaken by the contemporary and perhaps more fiscal focus of these programs, most see the new majors as logical progressions of traditional fields and therefore deeply related to our college’s mission.

    Continued in article

     


    Bloomberg Business Week asked that I share the following links with you:

    1.    Personal Finance News: http://www.bloomberg.com/personal-finance/

    2.    Saving and Investing: http://www.bloomberg.com/personal-finance/saving-and-investing/
    3.    Retirement Planning: http://www.bloomberg.com/personal-finance/retirement-planning/

    4.    Real Estate Investing: http://www.bloomberg.com/personal-finance/real-estate/

    5.    Tax News:http://www.bloomberg.com/personal-finance/taxes/
    6.    Financial Advisers: http://www.bloomberg.com/personal-finance/financial-advisers/
    7.    Insurance and Health: http://www.bloomberg.com/personal-finance/insurance-and-health/
    8.    Financial Calculators: http://www.bloomberg.com/personal-finance/calculators/
    9.    Businessweek Magazine Online: http://www.businessweek.com/subscribe/
     

    I posted all the above links to my personal finance helper links at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     

    I also added the Financial Calculators link to
    http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators

    I added the tax news to
    http://faculty.trinity.edu/rjensen/AccountingNews.htm#News

    Inside Footnotes (advice from and for security analysts) ---
    http://www.footnoted.com/inside-footnotes/ 


    "What’s Wrong with the Financial Services Industry?" by Barry Ritholtz, Ritholtz Blog, February 21, 2013 ---
    http://www.ritholtz.com/blog/2013/02/whats-wrong-with-the-financial-services-industry/

    If you hang around these parts for any length of time, you will occasionally run across a jeremiad of mine complaining about the Financial Services Industry.

    I’ve been thinking about this more than usual lately. This has led to some correspondence with Helaine Olen, whose book Pound Foolish: Exposing the Dark Side of the Personal Finance Industry is next up in my queue. (Her appearance on the TDS yesterday is here). It is similar to the deep dive my colleague Josh Brown took in Backstage Wall Street.

    My criticism is somewhat different than Helaine’s (though I am sympatico with much of her view). I break down the problems as follows:

     

    Simplicity does not pay well: Investing should be relatively simple: Buy broad asset classes, hold them over long periods of time, rebalance periodically, get off the tracks when the locomotive is bearing down on you. The problem is its easier in theory than is reality to execute this.

    Confusion is not a bug, its a feature:   Thus, the massive choice, the nonstop noise the confusing claims, all work to make this much more complex than it needs to be.

    Too much money attracts the wrong kinds of people: Let’s face it, the volume of cash that passes through the Financial Services Industry is enormous. Few who enters finance does so for altruistic reasons.

    Incentives are misaligned: As I’ve written previously, too many people are unwilling to get rich slowly. Hence, some of the wrong people work in finance, and some of the right people exercise bad judgment.

    Too many people have a hand in your pocket:  The list of people nicking you as an investor is enormous. Insiders (CEO/CFO/Boards of Directors) transfer wealth from shareholders to themselves, with the blessing of corrupted Compensation Consultants. Active mutual funds charge way too much for sub par performance. 401(k)s are disastrous. NYSE and NASDAQ Exchanges have been paid to allow a HFT tax on every other investor. FASB and Accountants have doen an awful job, allowing corporations to mislead investors with junk balance statements. The Media’s job is to sell advertising, not provide you with intelligent advice. The Regulators have been captured.

    What’s the net impact of all this on your investments ?

    The Financialized US Economy: The above list reflects nearly half a century of the financialization of the broader US economy. Instead of serving industry, finance has trumped it. This led directly to the financial crisis and economic collapse of 2007-09.

    Human Nature: Then there is your own behavioral issues. On top of everything else, you are governed by a brain that simply wasn’t built for this.

    All of these add up to a system that is flawed, and often fails to do its job.

    Continued in article

    Large public accounting firms are probably not in favor of simplifying the tax code
    February 17, 2013 message from Richard Sansing

    This week's issue of The Economist has a special report on
    off-shore finance. This article discusses the role of large
    public accounting firms.


    http://www.economist.com/news/special-report/21571556-accounting-firms-will-do-nicely-under-any-set-rules-merry-enablers

    Jensen Content
    Note that "simplicity does not pay well" in consulting!
    I wonder to what extent large CPA firms want simplified accounting and auditing rules (to increase profits on audits) and highly complex regulations and financing alternatives (to increase profitability of consulting). Thus far in the 21st Century everything seems to becoming more complicated., which is probably why audits are not especially profitable relative to consulting.

    However, unless a new regulation is put in place to rotate audit firms, auditing contributes heavily to fixed costs annually due to the tendency of clients to stick with the same auditing firms year after year. Consulting engagements come and go making them not especially reliable for paying fixed costs but making them profitable on top of the fixed costs paid for by audit engagements. Thant's my $.02.


    Definition of Screwed:
    avg mkt return ~12%, avg mutual fund ret ~9%, average investor ret ~ 2.6%. Timing, selection, and costs destroy

    Finance Professor Jim Mahar

    "Romancing Alpha (α), Breaking Up with Beta (β)," by Barry Ritholtz, Ritholtz, February 15, 2013 --- |
    http://www.ritholtz.com/blog/2013/02/alpha-beta/

    Since it is a Friday (following Valentine’s Day), I want to step back from the usual market gyrations to discuss a broader topic: The pursuit of Alpha, where it goes wrong, and the actual cost in Beta.
     

    For those of you unfamiliar with the Wall Street’s Greek nomenclature, a quick (and oversimplified) primer: When we refer to Beta (β), we are referencing a portfolio’s correlation to its benchmark returns, both directionally and in terms of magnitude.
     

    We use a scale of 0-1. Let’s say your benchmark is the S&P500 — it has a β = 1. Something uncorrelated does what it does regardless of what the SPX does, and its Beta is = 0. We can also use negative numbers, so a Beta of minus 1 (-1) does the exact opposite of the benchmark.
     

    Beta measures how closely your investments perform relative to your benchmark. If you were to do nothing else but buy that benchmark index (i.e., S&P500), you will have captured Beta (for these purposes, I am ignoring volatility).

    The other Greek letter we want to mention is Alpha (α). Alpha is the risk-adjusted return of active management for any investment. The goal of active management is through a combination of stock/sector selection, market timing, hedging, leverage, etc. is to beat the market. This can be described as generating Alpha.

    To oversimplify: Alpha is a measure of out-performance over Beta.

    Why bring this up today?

    Over the past few months, I have been looking at an inordinate number of portfolios and 401(k) plans that have all done pretty poorly. I am not referring to any one quarter of even year, but rather, over the long haul. There is an inherent selection bias built into this group — well performing portfolios don’t have owners considering switching asset managers. But even accounting for that bias, a hefty increase in the sheer number of reviews leads me to wonder about just how widespread the under-performance is.
     

    One of the things that has become so obvious to me over the past few years is how unsuccessful various players in the markets have been in their pursuit of Alpha. We know that 80% or so of mutual fund managers underperform their benchmarks each year. We have seen Morningstar studies that show of the remaining 20%, factor in fees, and that number drops to 1%.
     

    The overall performance of the highest compensated group of managers, the 2%+20% Hedge Fund community, has been similarly awful, as they have underperformed for a decade or more.

    Continued in article

     


    Department of Labor (DOL) --- http://en.wikipedia.org/wiki/United_States_Department_of_Labor

    "EBSA Cracks Down on Retirement Plan Advisors:  Advisors take heed: The DOL arm that rides herd over retirement plans is ramping up its enforcement efforts," by Melanie Waddell, AdvisorOne, March 26, 2012 ---
    http://www.advisorone.com/2012/03/26/ebsa-cracks-down-on-retirement-plan-advisors?t=legal-compliance

    Prominent retirement planning officials are warning advisors to make sure that the retirement plans they advise are compliant with Department of Labor rules, as the DOL’s regulatory arm responsible for policing these plans is cracking down.

    So far this year, the DOL’s Employee Benefits Security Administration (EBSA) has significantly raised its enforcement efforts in what Andy Larson, director of the Retirement Learning Center, says should serve as a wake-up call to advisors who advise retirement plans and plan sponsors.

    In 2011, EBSA said it had closed 3,472 civil cases and obtained monetary results of nearly $1.39 billion. EBSA also closed 302 criminal cases that resulted in 129 individuals being indicted and 75 cases being closed with guilty pleas or convictions. DOL also wants to increase the number of its enforcement personnel from 913 to 1,003 this year.

    Larson says those EBSA enforcement numbers are “astonishing” and warns that many advisors are surprisingly still unaware that the DOL has jurisdiction over them.

    What’s the biggest area EBSA is zeroing in on? Fiduciary negligence. EBSA is “seeing very high levels of non-compliance with fiduciary” duties. When the EBSA releases its reproposed fiduciary rule in the first half of this year, the rule “will affect advisors and their fiduciary role,” not plan sponsors, Larson says.

    In light of this, Larson said, advisors should ensure they have a “strong documentable fiduciary process.”

    As Larson notes, since the Employee Retirement Income Security Act (ERISA) was put into place, DOL and the Internal Revenue Service’s Employee Plans Unit have had joint authority “to ride herd” over retirement plans. But service providers have gotten accustomed to the IRS taking the lead in enforcement actions, and have failed to notice over the last two years that the EBSA “is showing up through the unlocked back door and finding problems,” Larson says.

    Because the IRS has been the primary enforcer of ERISA rules, “service providers have developed their models to include mechanisms with IRS requirements,” but may have failed to include “DOL-type protections in their service models,” Larson says.

    Continued in article

    Bob Jensen's helpers (not advice) for personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    "The Truth About Paying Down Your Mortgage Early," Business Insider, June 21, 2013 ---
    http://www.businessinsider.com/paying-off-mortgage-with-leftover-money-2013-6

    Jensen Comment
    Much depends on what your intend to do with the funds that you would otherwise use to pay down part or all of your mortgage. If it all goes to wine, women, and casino gambling then pay down at least part of your mortgage. If it goes to buy gold coins then pay down your mortgage (I'm against buy gold coins in any circumstances since the transactions costs on resale are so high).  If it goes for home improvements the answer is uncertain and depends upon your particular real estate market and how much those improvements add to the monetary and personal value of your home.

    Of course your particular income, savings, and tax situation trumps almost everything.

    I have an enormous refinanced mortgage that will not be paid off until I'm nearly 100 years of age. My strategy is to carry a jumbo mortgage for tax purposes and invest in an insured tax-exempt fund where the after-tax returns of my annual tax-exempt cash flow exceed the after-tax cash outflow of my mortgage costs. Of course this is not a good strategy for everyone because there are risks in tax-exempt fund values, and tax-exempt bonds are not good inflation hedges. Old guys like me don't worry so much about inflation. Young investors should worry about inflation.

    What I'm saying is that your outlook on investments and life change with the seasons of your life. When I was young I always purchased the highest price home with the biggest mortgage that I could possibly afford. When on the faculty at the University of Maine in the 1970s  I had a big and beautiful house in town plus a cottage on 12 acres of ocean front. In those days real estate values just kept going up and up and up.

    Two things have changed in my life. One is that I'm no longer young with worries about inflation and home real estate values. My children will inherit enough to a point that I'm not worried about inflation or the value of my home over the next 20 years --- Ka Sara Sara!

    The other thing that has changed in my lifetime is the real estate market. Up in the mountains where I now live expensive property is just not selling. The market is also limited for other types of property since northern New England is in an economic and population growth slump. Also the market for second (vacation) homes is changing --- in part due to higher risk of losing money on these investments. I sold an Iowa farm a few years ago. This is a totally different type of investment where values have been rising in large measure because of the corn ethanol disaster for consumers. Today, however, I think Iowa farm land is a better investment for farmers who actually drive the tractors on Iowa farm land relative to far away landlords with no intent to farm the land themselves. Having said that, farm land is a pretty good long-term inflation hedge for investors not needing much interim cash flow. At the moment Iowa farm land may be too high priced. Who really knows? Nobody!

    My point is that both your economic and personal situation changes with seasons of life and states of the economy and tax reforms that might finally get enacted. Advice is cheap and possibly misleading. It's best to study your particular situation to a point where you can advise yourself.

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    Individual Retirement Account (IRA) --- http://en.wikipedia.org/wiki/Individual_retirement_account

    There are several types of IRA:

    • Traditional IRA contributions are often tax-deductible (often simplified as “money is deposited before tax” or “contributions are made with pre-tax assets”), all transactions and earnings within the IRA have no tax impact, and withdrawals at retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted). Depending upon the nature of the contribution, a traditional IRA may be referred to as a “deductible IRA” or a “non-deductible IRA.” It was introduced with the Tax Reform Act (TRA) of 1986.
    • Roth IRA contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free. Named for Senator William V. Roth, Jr.. The Roth IRA was introduced as part of the Taxpayer Relief Act of 1997.
    • SEP IRAa provision that allows an employer (typically a small business or self-employed individual) to make retirement plan contributions into a Traditional IRA established in the employee’s name, instead of to a pension fund in the company's name.
    • SIMPLE IRA a Savings Incentive Match Plan for Employees that requires employer matching contributions to the plan whenever an employee makes a contribution. The plan is similar to a 401(k) plan, but with lower contribution limits and simpler (and thus less costly) administration. Although it is termed an IRA, it is treated separately.
    • Self-Directed IRAa self-directed IRA that permits the account holder to make investments on behalf of the retirement plan.

    There are two other subtypes of IRA, named Rollover IRA and Conduit IRA, that are viewed by some as obsolete under current tax law (their functions have been subsumed by the Traditional IRA); but this tax law is set to expire unless extended. However, some individuals still maintain these arrangements in order to keep track of the source of these assets. One key reason is that some qualified plans will accept rollovers from IRAs only if they are conduit/rollover IRAs.

    What was formerly known as an Educational IRA is now called a Coverdell Education Savings Account.

    Starting with the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), many of the restrictions of what type of funds could be rolled into an IRA and what type of plans IRA funds could be rolled into were significantly relaxed. Additional acts have further relaxed similar restrictions. Essentially, most retirement plans can be rolled into an IRA after meeting certain criteria, and most retirement plans can accept funds from an IRA. An example of an exception is a non-governmental 457 plan which cannot be rolled into anything but another non-governmental 457 plan.

    The tax treatment of the above types of IRAs except for Roth IRAs are substantially similar, particularly for rules regarding distributions. SEP IRAs and SIMPLE IRAs also have additional rules similar to those for qualified plans governing how contributions can and must be made and what employees are qualified to participate.

     

    "Should You Contribute to a Non-Deductible IRA?" by Laura Adams, Money Girl, February 12, 2013 ---
    http://moneygirl.quickanddirtytips.com/what-is-a-non-deductible-ira.aspx

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    "Do Gold ETFs Really Move on Inflation Expectations?" by John Spence, ETF Trends, Junw 15, 2012 ---
    http://www.etftrends.com/2012/06/do-gold-etfs-really-move-on-inflation-expectations/
    Thank you Jim Mahar for the heads up.

    Gold ETFs are often described as an inflation hedge but recent academic research suggests the precious metal is more dependent on emerging market demand, particularly from central banks that hold less gold than their counterparts in developed countries.

    “Assuming that gold moved in lockstep with the CPI, the implied price would be about $780 an ounce, according to Duke University Professor Campbell R. Harvey and his collaborator, Claude B. Erb,” Bloomberg News reports.

    Gold is trading back above $1,600 an ounce as traders speculate on the odds of further monetary easing before next week’s Federal Reserve meeting. [Gold ETFs Eye Fed, Europe]

    Since the gold bull market started in about 2001, prices have risen more than sevenfold.

    “If gold is an inflation hedge, then on average its real return should be zero,” Erb and Harvey wrote, according to the Bloomberg report. Instead, returns from 2000 through March of this year averaged 13% a year on an inflation-adjusted basis.

    Gold ETFs such as SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) have likely fueled the metal’s rise since they have made it easier for more investors to buy gold.

    “Global ETF investor positions have continued to trend up in both gold and silver, reflecting the fact that long term price supports such as negative real interest rates, currency debasement and sovereign/financial sector default risk, and rising emerging market/central bank demand remain embedded in the 2012 outlook,” ETF Securities said in a report earlier this year. [Measuring the Impact of Gold ETFs]

    Harvey and Erb wrote that emerging markets can support gold because the precious metal represents a smaller part of central bank reserves than developed nations.

    Foreign central banks are “one of the more intriguing sources of incremental demand for gold,” says ConvergEx Group strategist Nicholas Colas. [Strategist: Why Gold ETFs Still Make Sense]

    “Among emerging economies, for example, central banks are actively buying gold to add to their reserves. The trend is most noticeable in Russia and India, but increasingly in China as well. Press accounts placed China’s net gold purchases in 2011 at over 200 tons, doubling its position in one year,” he said in a recent report.

    “And gold is clearly playing a role at the central bank level in these countries’ efforts to hedge such price increases,” Colas noted. “There is a popular saying on Wall Street – ‘Don’t fight the Fed.’ Why fight the Chinese, Russian and Indian central banks on gold? Like the Fed, they have much deeper pockets than you.”

    See Chart

    Continued in article


    Planning for the Bad as Well as the Good in Retirement

    "CPAs Stress the Importance of Long-Term Care," AICPA, August 2012 ---
    http://blog.aicpa.org/2012/08/cpas-stress-the-importance-of-long-term-care.html

    Jensen Comment
    Note that Medicare does not pay for long-term care even though it does pay for short-term crisis moments that qualify for admission to a hospital. The largest single Medicare expenditure by far is for the hospital costs of dying, but between the stroke and dying hospital periods that are covered by Medicare can be months and even years of long-term care not covered.

    I learned at the 2012 AAA Annual Meetings that a really close former friend and colleague has been paying out over $150,000 per year for 24/7 home nursing care for a number of years. Because this former accounting professor can afford such level of care, it's not been necessary to be admitted into a lower costing nursing care facility. But such nursing care facilities are still very expensive for very long-term care.

    A friend committed suicide about three years ago in Manchester, New Hampshire. We were close years ago when we were both masters degree students at the University of Denver. Interestingly, he had an expensive paid-up insurance policy for long-term nursing care.  Sherman never married and had no family left whatsoever. My guess is that when his health and quality of life started going downhill he just did not want to waste away in a nursing home even though he had premium insurance coverage for long-term care.

    By the way I am not advising for or against long-term care insurance.
    Such insurance is quite expensive and increases greatly in cost with age. I did not conduct research for this email message, but I think that the odds are still relatively low for incurring very expensive long-term care. But "odds" are computed on the basis of a large population of elderly people. The odds for a given individual can be quite different. The mother-in-law of one of my cousins back in Iowa has been in a nursing home for over ten years in a small Iowa town. In no way could she have paid for such care all these years without having had such insurance. Hence, I do not give advice regarding whether to buy or not buy long-term care insurance. I did not buy such insurance.

    Keep in mind that most long-term care insurance policies do not cover all long-term care costs. Some policies only pay a pittance of these costs.

    My point that all retirees are subject to the financial risks of long-term care. These should be factored into dreams of that condo on a golf course or that small hobby farm with occasional luxury cruises.

     


    No Fooling: Try This One Out With Students (adding sensitivity analysis with interest rates and inflation)
    "Slow Compounding," by Floyd Norris, The New York Times, April 1, 2011 ---
    http://norris.blogs.nytimes.com/2011/04/01/slow-compounding/

    American Express has a full-page ad in today’s Times offering a savings account yielding 1.15 percent.

    These days that is a good rate, a fact the people of my generation find astonishing. Such amazingly low rates cause great anxiety for those who saved money in the past and now find it yields so little.

    I did a little arithmetic. My son is an 18-year-old college freshman. If he puts $100 into such an account now, and rates remain constant, he will have doubled his money in time for his 79th birthday party.

    Of course, if you are investing for a child in kindergarten, there is still hope. A $100 investment today would double about the time he or she goes on Medicare.

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    The sad part about going into business apart from writing books is that having such a huge vested interest in that business creates moral hazard in terms of independence as on of the leading personal finance commentators in the world. The champion of the poor and troubled may be trying to increase her 1% at the expense of the poor and troubled.

    Suze Orman --- http://en.wikipedia.org/wiki/Suze_Orman

    "Suze Orman, Debit-Card Dealer:  The money guru introduces her first financial product—and vexes some fans," by Karen Weise, Bloomberg Business Week, January 19, 2012 ---
    http://www.businessweek.com/magazine/suze-orman-debitcard-dealer-01182012.html

    “I love you!” a woman yells as personal finance guru Suze Orman enters the drab conference room at a Barnes & Noble (BKS) in suburban New Jersey. Fans cheer and clap while a man in the front row tears up from excitement. Orman is here to preach the tough-love brand of financial advice that she’s been peddling for more than a decade through nine bestselling books, a highly rated CNBC show, and regular appearances on the old Oprah Winfrey Show. “You have got to be the masters of your own financial future,” she tells the 200-strong crowd. While the event coincides with a new paperback edition of her 10th book, The Money Class, that’s not the main focus of her talk. “You need more than books,” she says. “Now you need the tools.”

    Orman has a particular tool in mind. Just a few days earlier she introduced her first financial product: a prepaid debit card emblazoned with her name. She sees her Approved Card as an alternative way for people who are fed up with—or don’t have—traditional checking accounts and credit cards to manage their cash. And if the most ambitious part of her plan succeeds, the card may eventually help users improve their credit scores.

    Orman’s Approved Card, issued by Wilmington (Del.)-based Bancorp Bank (TBBK), is in part designed to play the role of pestering mom. The basics are simple: People use electronic transfers or cash to load money onto their cards, then use them like regular debit cards, buying groceries or shopping online. The Orman touch comes in such features as automatic text message alerts sent to mobile phones that note the balance remaining on the card after each purchase. The card’s website has Orman issuing such sharply worded reminders as, “Before you make a purchase, you’d better be able to afford it—do you hear me?!”

    Prepaid cards are the fastest-growing payment method, Federal Reserve data show. In 2010 people used them for $65 billion in transactions, compared with $48 billion in 2009, the industry newsletter Nilson Report says. Part of the cards’ appeal is that you can’t get into debt with them. “I think it’s a good idea to have a prepaid card rather than going out willy-nilly with a credit card,” says Glinda Kidd at the book signing.

    Still, prepaid cards often come loaded with fees—and Orman’s is no exception. It has a standard $3 monthly charge. While there’s no cost to reload the card with direct deposits or automatic transfers from a checking account, people must pay up to $4.95 to put cash on the card at Western Union (WU) or MoneyGram (MGI) locations. And if they load with cash rather than electronically, all ATM withdrawals cost $2. One free call to a customer service rep is included each month; extra calls are $2 each.

    “What people don’t understand is the cost to do business,” says Orman in an interview. “If I could have given this to you for free, I would have.” Orman, who says she invested $1 million in the venture, declines to discuss how much money she might make from it. And she vows to train customers to keep their costs down. In videos on the card’s website, she explains the fees, warning that people who load their cards electronically can get cash from one of the 35,000 ATMs in the Allpoint network for free but will incur a $2 charge for using other ATMs—plus whatever fee the ATM operator imposes. “Why would you want to waste money like that?” she says in the video. “Don’t be lazy, and go to an Allpoint ATM.”

    Orman says if she finds people are incurring fees to put cash on the card, only to spend another $2 to get cash at an ATM, she will ask them to turn in their plastic. If you’re going to squander money that way, “just keep it in cash! You don’t need the damn card,” she tells the audience at the book signing.

    Michael Collins, an assistant professor at the University of Wisconsin who studies the financial decision-making of low-income families, says people will eventually figure out the costs of any product. “The question is how long will it take” and how much in fees they will have racked up by then, he says. Collins adds that if Orman’s messages help people control their spending impulses, the card could be beneficial: “Anything that gets people to think harder about their financial security and take some responsibility is a good thing.”

    Some personal finance bloggers have complained about the fees and charged that Orman is using her influence to bilk her fans. On Twitter, the Blog Finanza website said: “You are taking your authority figure to make a $$ from your audience. #DENIED”—echoing a catchphrase from Orman’s TV show. Others, such as MSNBC.com consumer finance columnist Herb Weisbaum, said many people would be better served by building their credit immediately with a secured credit card.

    Orman dismisses the criticisms, saying the card reflects her understanding of people’s financial habits and needs. “I am the personal financial expert of the world,” she says. “I know what I am talking about.” Publicly, Orman lashed out on Twitter against the naysayers, calling them “small thinkers,” “idiots,” and “Suze haters.” After New York Times personal finance columnist Ron Lieber and others protested the harsh words, she issued a blanket apology: “For anyone I called an idiot, I too am sorry.”

    Continued in article

    "Does Suze Orman's Prepaid Debit Card Make Sense for You?" by Sarah Gilbert, Get Rich Slowly, January 17, 2012 ---
    http://www.getrichslowly.org/blog/2012/01/17/does-suze-ormans-prepaid-debit-card-make-sense-for-you/?WT.qs_osrc=fxb-48064510

    Suze Orman is famous for her personal, easy-to-digest, and friendly personal finance advice. Many of us less famous (far less famous, in the case of this writer) finance writers admire her general approach, which boils down to “spend less than you earn.” Who can argue with that? So imagine my amazement at the news this week that Suze will be offering a branded prepaid debit card.

    Prepaid debit cards have a star-crossed reputation
    You know about branded prepaid debit cards, but they're usually not connected with individuals known for their sensible finance advice. Think
    Russell Simmons. Think the Kardashians. See? Sample words and phrases from our collective wisdom on those topics include “skeptical” and “reprehensible” and “urge to scream” and “hit cash-strapped consumers over the head with nickel-and-dime charges.”

    Suze Orman is famous for her personal, easy-to-digest, and friendly personal finance advice. Many of us less famous (far less famous, in the case of this writer) finance writers admire her general approach, which boils down to “spend less than you earn.” Who can argue with that? So imagine my amazement at the news this week that Suze will be offering a branded prepaid debit card.

    Prepaid debit cards have a star-crossed reputation You know about branded prepaid debit cards, but they're usually not connected with individuals known for their sensible finance advice. Think Russell Simmons. Think the Kardashians. See? Sample words and phrases from our collective wisdom on those topics include “skeptical” and “reprehensible” and “urge to scream” and “hit cash-strapped consumers over the head with nickel-and-dime charges.”

    The biggest problems with prepaid debit cards are, really, threefold:

    While they are cards that are available to consumers with bad credit, they don't help consumers build credit, though they are advertised as doing so (any help would be mild at best - the reporting they do is only to smaller credit reporting agencies, not the “big three” that man the velvet rope for most consumer debt in America). They're punishingly expensive and seem more directed toward association with the personality branding the card than any financial benefit. Russell's “Rush” Card costs between $4 and $15 upfront, with $10 monthly fees and $1 per-transaction fees. They're accused of using celebrities to take advantage of both the hopes and difficult situations of the “unbanked,” mostly-lower-class, often minority consumers whose financial situation is so bad that banks won't take the risk of giving them checking accounts.

    Suze Orman wants to make a difference (but, is it a fool's errand?) Orman has a different idea. She, too, wants to convince the unbanked to use her prepaid debit card, but she wants to charge less. Her “Approved Card” is far cheaper than Rush or the K thingy - only $3 to purchase the card and a $3 monthly fee. ATM transactions from the Allpoint network (found in 7-Eleven, Costco, Kroger, CVS, and Walgreens) are $2 per withdrawal, and point of sale transactions, such as purchases at the grocery store or coffee shop or online, are free. Balance inquiries and some declined transactions are $1 , but it's free to be declined at the register for a regular PIN/signature transaction. Many of these transactions, especially ATM withdrawals, are free for 30 days with a direct deposit or bank transfer into the Approved Card account, making them a great product for customers with some sort of automatically-deposited income (even, for instance, unemployment).

    Notably, electronic debit bill paying is free. Many competing products charge for this service, from $1 to $3 per transaction, and it's the service that customers without a regular bank account need. Often, discounts and special deals are available to customers who allow vendors to debit their account each month.

    The great credit score kerfuffle
    The concept that sells many prepaid debit cards - the quasi-justification for how expensive they are - is that they might help in the quest to raise a credit score. If a credit score is low enough so that a mainstream bank isn't part of your personal finance portfolio, can a prepaid debit card even help? Probably not.

    The problem that Suze Orman has mentioned in public statements about the Approved Card is that credit bureaus, beyond even knowing about the transactions made by the millions of unbanked consumers, don't care about sensible use of money. They just care about sensible use of credit. A New York Times piece quotes Orman as saying, “There is something radically wrong here. We are rewarding people for having credit and punishing people who pay in cash. I want to change that paradigm.”

    Wanting to change credit score calculation is easy. Changing is hard.
    Orman has done the near-impossible and convinced TransUnion, one of the big three credit bureaus, to collect the data about spending habits from her customers. But what that will do to credit scores is another thing entirely. The answer, probably, is nothing.

    The problem that Suze Orman has mentioned in public statements about the Approved Card is that credit bureaus, beyond even knowing about the transactions made by the millions of unbanked consumers, don't care about sensible use of money. They just care about sensible use of credit. A New York Times piece quotes Orman as saying, “There is something radically wrong here. We are rewarding people for having credit and punishing people who pay in cash. I want to change that paradigm.”

    Wanting to change credit score calculation is easy. Changing is hard.
    Orman has done the near-impossible and convinced TransUnion, one of the big three credit bureaus, to collect the data about spending habits from her customers. But what that will do t
    o credit scores is another thing entirely. The answer, probably, is nothing.

    The problem is that TransUnion has only been persuaded to evaluate the data Orman will collect with her Approved Card; it has not promised to include that in credit reports nor in the calculation of scores. If, after two years, it finds the data meaningful, it's still unlikely to have much of an effect on the resultant calculations. Responsible use of a prepaid debit card, after all, hasn't had much impact on the financial institutions that sponsor the card - in this case, Orman's own company - so the patterns of data don't have much meaning.

    What kind of debit card use could demonstrate the sort of behavior creditors want to see, such as:

    • On-time delivery of minimum payments
    • A history of purchasing high-value assets and then paying them off quickly
    • Regular income and a comfortable ratio of debt-to-income

    These all can be shown far more reliably through existing reporting. A consumer who pays rent on time each month in cash won't differ, to the eyes of TransUnion, from a consumer who pays rent on time each month by automatic debit from her Approved Card. Similarly, failing to overdraw an Approved Card account (that is impossible to overdraw from, except perhaps for a few $1/$2 ATM transaction declined fees) is very different from failing to overdraw a bank account.

    Why would you use a prepaid debit card?
    There are two groups of people I can see benefiting from using a prepaid debit card, as well as one group I would caution to avoid it. All of them could achieve higher credit scores, but not in the way you think. Let me explain
    .

    Continued in article

    Jensen Comment
    The sad part about going into business apart from writing books is that having such a huge vested interest in that business creates moral hazard in terms of independence as on of the leading personal finance commentators in the world. The champion of the poor and troubled may be trying to increase her 1% at the expense of the poor and troubled.

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     

     


    Financial Education in the Math Classroom --- http://mathforum.org/fe/

    A Government Website for Helpers in Personal Finance
    MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are planning to buy a home, balancing your checkbook, or investing in your 401k, the resources on MyMoney.gov can help you do it better. Throughout the site, you will find important information from 20 federal agencies government wide.
    My Money.gov --- http://www.mymoney.gov/

    PBS Television will now answer your personal finance questions ---
    http://www.pbs.org/newshour/insider/business/jan-june09/pocketchange_05-05.html


    From CNN:  Clark Howard's Informative Advice About Shopping, Financial Planning, and Warnings About Scams ---
    http://www.cnn.com/CNN/Programs/clark.howard/?iref=allsearch

    Bob Jensen's warnings about scams ---
    http://faculty.trinity.edu/rjensen/FraudReporting.htm

    Bob Jensen's shopping helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob3.htm


    National Endowment for Financial Education --- http://www.nefe.org/

    Mission

    The mission of the National Endowment for Financial Education is to help individual Americans acquire the knowledge and skills necessary to take control of their financial destiny. NEFE’s mission is grounded in the belief that regardless of background or income level, financially informed individuals are better able to:

    • Take control of their circumstances, 
    • Improve their quality of life, and 
    • Ensure a stable future for themselves and their families.

    Guiding Principles

    NEFE’s guiding principles are stated in eight initiatives.
    These initiatives:

    • Describe how NEFE achieves its mission, and 
    • Outline the goals and standards that guide the foundation’s activities.

    Every project or program undertaken by NEFE must fit within the scope of at least one initiative.
    NEFE accomplishes its mission primarily by
    partnering with other organizations to:

    • Provide practical, reliable, and unbiased financial education to members of the public. 
    • Accomplish research in the field of financial literacy education. 
    • Create demand for financial education. 

    NEFE’s activities place special emphasis on those who face financial challenges that are not being addressed by others. Among our target audiences are: 

    • Youth, 
    • Low-income individuals and families, and 
    • People in difficult or unusual life circumstances. 

    NEFE’s partnerships and the foundation’s own efforts result in a wide range of free and low-cost activities and materials, including: 

    New activities are covered in each issue of the foundation’s newsletter, NEFE Digest, and in the New at NEFE section.

    Organizational Structure

    The National Endowment for Financial Education is a nonprofit 501(c)(3) foundation governed by a volunteer Board of Trustees and led by president and CEO Ted Beck.  A staff of fewer than 25 individuals guides NEFE’s public-service work at its headquarters in Denver, Colorado. To learn more, visit the History section of this Web site.

     

    NEFE organizes its activities into four action areas, which flow from the foundation’s mission and initiatives.

     

    NEFE defines its action areas as:

    • Education Programs. Although not restricted to a particular age group, the Education Programs area has been oriented primarily to providing financial planning information to youth, including NEFE’s longest-standing public service effort, the NEFE High School Financial Planning Program® (HSFPP)
    • Strategic Programs and AlliancesThis action area works to help Americans improve the quality of their lives through financial education provided in cooperation with other nonprofit organizations and foundations, and occasional corporate sponsors. 
    • Multimedia Access. This action area represents NEFE’s commitment to sharing its expertise in financial planning education with all those who might benefit from it, including consumers, educators, and the media
    • Innovative Thinking. The goal of this action area is to inspire creative ideas and new perspectives on personal finance, to communicate them broadly, and to assist in their actualization where appropriate. This action area supports fellowships programs, grantmaking, and research and strategic activities.

    Video:  Interesting look at 8 common investment mistakes that uses Big Brown (the horse, not the delivery company). ---
    http://financeprofessorblog.blogspot.com/2009/10/video-on-common-mistakes.html

    Last night's (October 7, 2009) PBS NewsHour took a look at the bearish obsession du jour, the commercial real estate market. Real estate analyst Bob White took them around to show some of the ugliest cases out there. (via Square Feet)
    http://www.businessinsider.com/a-guided-tour-of-nyc-commercial-real-estate-wreckage-video-2009-10


    TIAA-CREF has done a good job weathering the latest economic recession
    "TIAA-CREF and You," Chronicle of Higher Education, October 4, 2011 ---
    http://chronicle.com/article/TIAA-CREFYou/129261/?sid=at&utm_source=at&utm_medium=en

    . . .

    To understand TIAA-CREF's offerings, first understand what it is: Whatever the prominence of the words Teachers and College in its unpacked acronym, TIAA-CREF is simply a giant insurance company. Pennywise wrote about TIAA-CREF once before, in a column that appeared at the height of the financial crisis entitled, "Is TIAA-CREF Safe?" Personally, I find that article has held up fairly well and may be reassuring today, in our renewed mood of uncertainty. New readers might want to take a look at it.

    TIAA-CREF has weathered the Great Recession well. Today the company ranks 87th on the Fortune 500 list, with $32-billion in revenues and $1.4-billion in annual profits. All four ratings agencies still give the company the highest possible rating for financial stability; at this point, its ratings are better than the federal government's. A leading investing Web site calls the company the strongest annuity insurer in the United States.

    As for your specific TIAA-CREF investing options, your university's human-resources department can choose from a smorgasbord, so plans will differ. Almost certainly your college's plan has annuities at its core. Those are, for the most part, variable annuities, meaning their value and rates of return fluctuate along with financial markets, functioning much like mutual funds in the accumulation phase—the stretch of life in which you amass your holdings. Once you reach the drawdown phase, however, those vehicles offer the ability either to take out your pile of money in a lump sum or to annuitize it, meaning convert it into a steady stream of annual (hence the name "annuity") income that will last the rest of your life.

    You may notice annuities getting bad press from time to time because the ones sold by many insurers come wrapped in a lot of hidden fees and are sold by advisers seeking commissions. TIAA-CREF's annuities are in a different category; they are relatively low-cost, the company's consultants get no commissions, and the criticisms don't really apply (one exception noted at the end of this column).

    Here's how not to invest with TIAA-CREF: Don't—after looking at the 10-year returns of the different options—put your money heavily into the ones that have performed best. Ten years from now something else may have outperformed them. The funds that have done well recently are probably the most expensive right now, but nobody can be sure.

    Instead, consider your household portfolio as a whole. Seek a well-diversified mix of different types of investments that rely on returns from different sectors of the economy. Understand how each option functions and spread your money around in proportions that make sense for your relative sense of risk.

    Your plan is likely to include the following:

    TIAA Traditional Annuity. From your point of view, this account works a bit like a bank certificate of deposit with a very generous interest rate. TIAA-CREF guarantees that any money you put in will be returned. The company then pays a specific rate of interest (currently 3.75 percent) on all new money deposited, a rate adjusted periodically. (The overall rate of return for the past 10 years was 5.62 percent). Because TIAA-CREF manages the underlying pool of money by investing mostly in bonds and related securities, rates in the coming years will probably be fairly low, but your contributions are contractually guaranteed.

    This is an excellent investment for those who react very badly to market drops. However, while you do not face market risk, you do face individual company risk. If TIAA-CREF went bankrupt, its guarantee would mean nothing. That's why the firm's profitability and stability are crucial.

    Note: To guarantee your principal plus a rate of interest, TIAA-CREF puts some fairly strong restrictions on clients' ability to transfer money in and out of this annuity. Don't commit money to TIAA Traditional unless you are content to let it sit until you retire. You can get it out, but it will be difficult.

    Tip: Concentrate your TIAA Traditional holdings in your main 403(b) account, since a much lower rate of interest (currently 0.75 percent less) will be paid on it in your Supplemental Retirement Account (SRA), if you have one.

    TIAA Real Estate Variable Annuity. The funds in this distinctive offering are invested directly in real estate (office buildings, malls, industrial parks, and so forth). Buy in, and you get the perks of being a property mogul and landlord, without all the hassles.

    CREF Variable Annuities. These function a great deal like regular mutual funds. There are five stock-market options: Global, Stock, Equity Index, Growth, and Social Choice. Global and Stock both invest in world stock markets, including U.S. and international ones. Equity Index and Growth are solely U.S. stock-market funds. Social Choice screens for certain ethical and political criteria. Then there are three options that apply to the more stable, less risky part of your portfolio: Bond, Inflation-Linked Bond, and Money Market.

    It may be that your university plan also offers, beyond the above annuities, TIAA-CREF's vast array of mutual funds, which come in almost infinite variations, including LifeCycle funds (all-in-one, no-brainer options for those who want to put things on autopilot) or highly specific funds focusing on specific sectors of the stock market, such as small-cap companies.

    The precise mix that is right for you depends on your risk tolerance and time frame. There are decent models on Page 12 of this brochure. No need to make it complex, though. A pretty good holding could be amassed in just TIAA Traditional (20 percent); TIAA Real Estate (10 percent); one of the stock-market annuities, perhaps Equity Index since it costs you the least, or Global since it has international diversification to offer (60 percent); and the inflation-adjusted bond option (10 percent). Reduce the equities portion and increase the bond if you are skittish or near retirement.

    Remember that the current market mayhem may mean you will be buying low. Don't let it scare you away from stocks, even if, in the short term, you see some declines.

    Continued in article

     


    Making Home Affordable --- http://www.makinghomeaffordable.gov/pages/default.aspx

    Making Home Affordable is a key part of the Obama Administration's effort to help homeowners avoid foreclosure. If you are struggling with your monthly mortgage payments or have already missed a payment, now is the time to take action. Start today by learning more about the options available to you through MHA

    Help for Homeowners Facing Foreclosure

    Help for Homeowners Struggling With Mortgage Payments

    Help for Homeowners Trying to Avoid Mortgage Troubles

    Attend an MHA event in your area


    Ray Williams --- http://en.wikipedia.org/wiki/Ray_Williams_(basketball)
    "Nobody wnats you when you're down and out" --- http://www.youtube.com/watch?v=MsrA2fMn0sk&feature=fvst

    A Sad, Sad Case That Might Be Used When Teaching Personal Finance:  Another Joe Lewis Example
    "Desperate times:  Ex-Celtic Williams, once a top scorer, is now looking for an assist," by Bob Hohler, Boston Globe, July 2, 2010 ---
    http://www.boston.com/sports/basketball/celtics/articles/2010/07/02/desperate_times/

    Every night at bedtime, former Celtic Ray Williams locks the doors of his home: a broken-down 1992 Buick, rusting on a back street where he ran out of everything.

    The 10-year NBA veteran formerly known as “Sugar Ray’’ leans back in the driver’s seat, drapes his legs over the center console, and rests his head on a pillow of tattered towels. He tunes his boom box to gospel music, closes his eyes, and wonders.

    Williams, a generation removed from staying in first-class hotels with Larry Bird and Co. in their drive to the 1985 NBA Finals, mostly wonders how much more he can bear. He is not new to poverty, illness, homelessness. Or quiet desperation.

    In recent weeks, he has lived on bread and water.

    “They say God won’t give you more than you can handle,’’ Williams said in his roadside sedan. “But this is wearing me out.’’

    A former top-10 NBA draft pick who once scored 52 points in a game, Williams is a face of big-time basketball’s underclass. As the NBA employs players whose average annual salaries top $5 million, Williams is among scores of retired players for whom the good life vanished not long after the final whistle.

    Dozens of NBA retirees, including Williams and his brother, Gus, a two-time All-Star, have sought bankruptcy protection.

    “Ray is like many players who invested so much of their lives in basketball,’’ said Mike Glenn, who played 10 years in the NBA, including three with Williams and the New York Knicks. “When the dividends stopped coming, the problems started escalating. It’s a cold reality.’’

    Williams, 55 and diabetic, wants the titans of today’s NBA to help take care of him and other retirees who have plenty of time to watch games but no televisions to do so. He needs food, shelter, cash for car repairs, and a job, and he believes the multibillion-dollar league and its players should treat him as if he were a teammate in distress.

    One thing Williams especially wants them to know: Unlike many troubled ex-players, he has never fallen prey to drugs, alcohol, or gambling.

    “When I played the game, they always talked about loyalty to the team,’’ Williams said. “Well, where’s the loyalty and compassion for ex-players who are hurting? We opened the door for these guys whose salaries are through the roof.’’

    Unfortunately for Williams, the NBA-related organizations best suited to help him have closed their checkbooks to him. The NBA Legends Foundation, which awarded him grants totaling more than $10,000 in 1996 and 2004, denied his recent request for help. So did the NBA Retired Players Association, which in the past year gave him two grants totaling $2,000.

    Continued in article


    "A Home Is a Lousy Investment:  Today's young people would be foolish to imitate their parents and view ownership as the cornerstone of personal finance," by Robert Bridges, The Wall Street Journal, July 11, 2011 ---
    http://online.wsj.com/article/SB10001424052702304259304576375323652341888.html?mod=djemEditorialPage_t

    At the risk of heaping more misery on the struggling residential property market, an analysis of home-price and ownership data for the last 30 years in California—the Golden State with notoriously golden property prices—indicates that the average single family house has never been a particularly stellar investment.

    In a society increasingly concerned with providing for retirement security and housing affordability, this finding has large implications. It means that we have put excessive emphasis on owner-occupied housing for social objectives, mistakenly relied on homebuilding for economic stimulus, and fostered misconceptions about homeownership and financial independence. We've diverted capital from more productive investments and misallocated scarce public resources.

    Between 1980 and 2010, the value of a median-price, single-family house in California rose by an average of 3.6% per year—to $296,820 from $99,550, according to data from the California Association of Realtors, Freddie Mac and the U.S. Census. Even if that house was sold at the most recent market peak in 2007, the average annual price growth was just 6.61%.

    So a dollar used to purchase a median-price, single-family California home in 1980 would have grown to $5.63 in 2007, and to $2.98 in 2010. The same dollar invested in the Dow Jones Industrial Index would have been worth $14.41 in 2007, and $11.49 in 2010.

    Insert Graph

    Here's another way of looking at the situation. If a disciplined investor who might have considered purchasing that median-price house in 1980 had opted instead to invest the 20% down payment of $19,910 and the normal homeownership expenses (above the cost of renting) over the years in the Dow Jones Industrial Index, the value of his portfolio in 2010 would have been $1,800,016. The stocks would have been worth more than the house by $1,503,196. If the analysis is based on 2007, the stock portfolio would have been worth $2,186,120, exceeding the house value by $1,625,850.

    In light of this lackluster investment performance, and in the aftermath of the recent housing-market collapse, why is there such rapt attention to the revival of the homebuilding industry and residential property markets? The answer is that for policy makers whose survival depends on economic recovery, few activities have such direct, intense and immediate positive economic impact as new home construction.

    Continued in article

    Jensen Comment
    There's a huge difference between owning rental property versus owning a residence for yourself, although dealing with tenants is sometimes a real pain in the tail. If you're handy with repairing rental property located in an area where there's huge demand (such as near a college campus or medical center), the returns can be quite high for property purchased when the real estate market is on the down side and mortgage rates were low --- such as in 2011. There are also added tax breaks such as deductions for repairs, insurance, and depreciation. But on your personal residence the capital gains are no longer as attractive as they were in the days of your ancestors. Plus Congress is debating whether to do away with deductions for residence mortgages, although I've great faith in the immense power of the banking and real estate lobbies.

    Home ownership, until recently, was a very good inflation hedge. The above article tends to imply that inflation-adjusted returns may not be so great in the future unless you purchased your home at a really low price in a distressed market that shows signs of relatively good recovery such as in Texas versus California. Rural property and vacation properties are not so hot in terms of expected recovery. For example, small towns in the farming regions of the mid-west, like my home state of Iowa, have dismal chances of recovery as factory farms drive off small farmers and the rural towns small farmers support. My grandfather's well-maintained five bedroom house in Swea City, Iowa recently sold for less than $10,000. And over half of downtown Swea City is boarded over with plywood. I'm amazed that more owners have not torched buildings just to collect the insurance.

    Anticipated fuel price increases will affect real estate values. Property values may decline for home owners now located 30 or more miles from where most of the jobs are located. On the other side of the coin, properties closer to work centers may have increasing returns if they are in areas of good schools. Dangerous and/or lousy schools always hurt the values of real estate. Another Hurricane Andrew might wipe out real estate prices in South Florida due, in part, to unaffordable hurricane insurance.

    Your biggest worry as a home owner trying to sell these days is that no serious buyer even wants to view the property let alone make an offer unless you are willing to sell at a huge loss. The minister here in our Sugar Hill Community Church had a high-value former home in Grand Junction, Colorado. It took over three years to even have a potential buyer view the property. Many owners are finding they cannot sell at prices above the amortized balance on their mortgages. Owners often simply pack up and leave the keys with their banker, thereby wiping out all the equity built up in the home.

    Of course there are various advantages and disadvantages of home ownership other than investment prospects. On the plus side many people like me find joy in taking care of a home and the land that surrounds the home --- more joy than we would find if we only rented the property.

    In some cases ownership is the only alternative for a quality home on a long-term basis. For example, Stanford University provided on-campus land for faculty housing where, on a campus lot leased cheaply for 99 years, faculty could build their own houses under a condition that when they rent or sell these houses it will be to somebody in the Stanford community (faculty or staff or visiting scholars). It's usually possible for someone new to Stanford to rent a professor's house on this campus land. But such rentals are likely only short term for a year or two such that somebody new to Stanford who really wants to live on campus for the long haul really has to buy a home and not rent. When I was invited back to Stanford for two think-tank years, I rented a geology professor's home for one year and an economics professor's home the second year. These homes were both only a few blocks from where Stanford accounting professors Chuck Horngren, Bill Beaver, and Joel Demski had built their campus homes.

    A drawback to home ownership in general, however, is that it's getting harder and harder to sell a house without taking a beating financially unless the property is purchased at very, very distressed prices. Some banks and towns are selling foreclosed homes very cheap. For example, a friend up here in Sugar Hill, NH recently purchased a foreclosed home at a third of its appraised value for property taxes. The problem is that for property taxes, the tax appraiser subsequently refused to lower the appraisal value down to the purchase price, i.e., the property taxes remained relatively high on this foreclosed property after it was resold at a 'bargain basement" price.. The tax assessor stated that Sugar Hill will not lower the property tax because of a "bargain basement" purchase price. Hence, buyers receiving good deals on purchase prices will not necessarily receive similar good deals when the property tax bills are received twice a year on this good deal purchase. Tax appraisal values may be much higher than the transacted purchase prices if the the tax appraiser deems the purchase prices as bargain basement prices on foreclosed properties.

    Home Ownership is Never "Free" Even When You Own Your Home Free and Clear of First and Second Mortgages
    Put another way, if a buyer pays more than the tax appraisal value, the tax appraisal value will be soon be raised for property tax purposes since all transacted real estate prices must be reported to the taxing authorities. But if the buyer pays less than the tax appraisal value, the tax appraisal value will not be lowered for property tax purposes unless the property owner is successful in a costly lawsuit in Superior Court. This means that most  new owners of Sugar Hill properties are paying property taxes at much higher appraised values than what they can realistically expect if they sell those properties in today's depressed real estate market. I think this is a fact of life in most other parts of the United States at the moment. And if the courts force property tax districts to set property tax appraisals at more realistic real estate value estimates, then the property tax districts will just set the tax rates at levels needed to support rising local, county, and school district budgets.

    Another huge ownership drawback is that in many states like New Hampshire, property taxes have become the primary means of local town, county, and school financing. Hence, property taxes are markedly rising on homes even if their value is on the decline. Of course, renters of homes are indirectly paying the property taxes on homes. But landlord tax breaks (such as for depreciation) can be factored in to reduce somewhat increasing property taxes. Also renters often accept less spectacular houses to live in knowing that these houses are not investments and that they are free to relocate in a year or less with no transactions cost and trauma of trying to find buyers for their rental homes.

    The point here is that many, many home owners are having second thoughts about ever again purchasing homes unless the homes can be purchased at exceedingly low bargain basement prices to justify the relatively high and ever-increasing annual property taxes due on those properties. Or there must be some very unique attributes that makes the property attractive to buyers such as golf course frontage, ocean frontage, lake frontage, mountain views, or a short walking/bicycle distance to a Stanford University faculty office.

    Aside from a home plus a rural farm I inherited in Iowa, I owned three houses (one in Michigan, one in Maine, and one in Florida) during the era where home ownership was a great investment with values rising about 10%- 20% each year on average. I also owned one house in Texas in a later era where I lost 15% (even more loss if I adjust for inflation) of my 24-year investment and breathed a great sigh of relief that the only serious prospect (after ten months)  to look at this big house (4,500 square feet and my last-ever swimming pool)) made an offer. And I sold this San Antonio house in 2006 before the real estate bubble burst!

    I suspect I will also lose a substantial amount that I invested in my present scenic and comfortable cottage. But, since I hope to remain here until the day I die, I don't care so much about that loss ---
    http://faculty.trinity.edu/rjensen/NHcottage/NHcottage.htm

    In the our case, a home is far more than a financial investment even if it is a 150-year old money pit ---
    http://en.wikipedia.org/wiki/The_Money_Pit

    July 11, 2011 reply from Hossein Nouri

    Bob:

    I think it depends on when you start your initial investment date. I purchased $35,000 of mutual funds (10 different categories) in 1996 and at present its value is about $42,000 (20% increase or 1.33% a year). I also purchased a condo in 1999 for $85000 and at present it is $200,000 (135% increase or about 10% a year). It also provides about $6000 positive cash flow every year or about 7% of original cost. My retirement since 1992 also is not doing much better than my mutual fund investment.

    So, my suggestion to all young people is to buy property, but in good location. At least you have something tangible in hand and not a piece of worthless paper which is manipulated by all sharks in the Wall street.

    Hossein Nouri

    July 11, 2011 reply from David Fordham

    Bob: I'm assuming the author is announcing a change rather than trying to correct a myth, because I would disagree with him if he's doing the latter... up until the last four years, that is.

    I would think it would be a very interesting study to look at a possible relationship between widespread home ownership in America (and possibly other countries) and social-class mobility of the middle-class. Home ownership served as a major source of wealth for my great-grandparents, grandparents, and my parents' generations, and even for my generation. Most of my own current non-retirement net worth was generated as roll-over gains on homes which I sold as the company transferred me around the country during my business career.

    By contrast, in Europe, I saw a major social-class gap between the owners of rental properties, and the renters. In talking anecdotally with friends, they seemed to hold the view that in general, rich people own homes (country estates, townhomes, subdivision houses, city flats, etc.), and working-class stiffs rent those properties from them. They felt that most of the European middle-class population: (1) were renters rather than owners, and (2) were unable to save enough to materially increase their net worth the way Americans do by owning homes and watching them appreciate in value, and thus (3) were unable to climb the socio-economic ladder and deliver to their kids a better life the way most Americans have been doing for their children.

    With apologies to Jagdish, the "caste inheritance" system whereby ones' children end up in the same socio-economic level as their parents, was somewhat more prevalent in Europe (albeit not at the trade/craft/occupation level as in India, but at the socio-economic level).

    For example, my father greatly exceeded his father's level, as I have exceeded my father's, and my sons are almost ready to exceed me, while many of our friends in Europe were about where their parents and grandparents had been: children of blue collar workers became blue collar workers, etc.

    Of course, this might be due to educational institutions, tradition, and many other factors besides home ownership. But since home ownership was such a wealth-builder (e.g., a GOOD investment) for about 100 years, I can't help but suppose an impact.

    So I'm very curious as to what the current supposed trend (identified in your article, of moving away from the "home-ownership for every family" model to the "most everybody is renting their abode" will do to the traditional American middle-class.

    It's going to be an interesting next 50 years or so.

    David Fordham

    July 11, 2011 reply from Bob Jensen

    Hi David,

    It will be very difficult to isolate the impact of home ownership apart from other factors affecting the U.S., including birth control technology, tax law changes, trends in delaying marriage, trends in couples living together without marriage, reduced numbers of children per household, career mobility, government policy on welfare that almost destroyed families the some population sectors, collapse of housing values, increasing proportion of women having long-term careers, etc.

    Bob Jensen

    Bob Jensen's helpers for personal finance are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers

     


    Investment Clubs, Hedge Funds, and Tax Implications

    Investment clubs commenced with friends in communities and/or work places that sometimes made social events out of studying investments and pooling small amounts of money in a fund that in turn was managed by the group as a whole ---
    http://en.wikipedia.org/w/index.php?title=Special%3ASearch&redirs=0&search=Investment+club&fulltext=Search&ns0=1

    I also think of an hedge fund as a much larger investment club where a professional investor generally manages the investments for a group of individuals who join that index fund. Hedge funds, like lower end investment clubs, do not sell shares in the club to the public in general. An advantage and a disadvantage of not going public is that such funds, until recently, are not subject to state and Federal securities laws and SEC oversight, although since the adverse publicity (read that Madoff Hedge Fund) of the failed attempts are being made by lawmakers to rein in on hedge funds --- http://en.wikipedia.org/wiki/Hedge_fund
    The Madoff Hedge Fund turned out to be the largest Ponzi Scheme in the World (aside from the Social Security Fund of the U.S. which is a Ponzi scheme not yet shut down).

    Investment Club Software ---
    http://en.wikipedia.org/wiki/Investment_club_software

    An Investment Club Helper Site ---
    http://investmentclubsonline.com/result.php?Keywords=Investment%20Clubs
    Note that investment clubs should understand state and local tax laws regarding investment club returns and liquidations.

    IRS Publication 550 (2008), Investment Income and Expenses
    http://www.irs.gov/publications/p550/index.html

    Abusive Tax Scheme Investigations - Fiscal Year 2009 ---
    http://www.irs.gov/compliance/enforcement/article/0,,id=187267,00.html

    Bob Jensen's taxation helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    A Nobel Laureate Talks About the 4% "Rule" in Personal Finance
    Many retirees are advised to follow the 4% rule for managing spending and investing. William F. Sharpe and his co-authors argue that following this advice can lead to overpayments and surpluses. To avoid these pitfalls, retirees also have to have a clear idea of how much risk they are willing to take.
    Stanford Graduate School of Business News, April 2010 ---
    http://www.gsb.stanford.edu/news/research/sharpe_4percent.html
     


    "What You Need to Know About Socially Responsible Investing," by Adam Bold, Yahoo Finance, April 19, 2011 ---
    http://finance.yahoo.com/news/What-You-Need-to-Know-About-usnews-2251466802.html?x=0


    Technology for Personal Finance
    "Goalkeeping Gets Easier in the Finances Arena New Mint.com Feature Offers User-Friendly Options That Help Savers Set Up Budget Objectives and Stick to Them," by Katherine Boehret, The Wall Street Journal, June 30, 2010 ---
    http://online.wsj.com/article/SB10001424052748704911704575326914251218780.html

    When most people hear the word "budget," they groan about all the numbers and spreadsheets involved in setting financial goals. Instead they procrastinate and continue spending without any specific savings goals. Case in point: I recently postponed a meeting with my financial planner because I didn't have the energy after a long business trip to work through my finances.

    Now Mint.com, a website that already offers user-friendly options for studying how one's money is spent, has introduced an easy way to set budget objectives, link them to accounts and learn specific steps on how to reach those goals. The goals can even be personalized with digital photos, like an image of the car you're saving up to buy. And this service, which launched Tuesday, doesn't cost a cent.

    I've been testing Intuit Inc.'s free, updated Mint.com service, specifically focusing on its new Mint Goals feature. The idea of adding goals that tie into real accounts has been a long time coming for the finance-management website. Mint previously offered a Planning section on its site, but it required too much manual input, including setting up personal budget categories, and guesswork about how much one should spend.

    The Goals feature uses pop-up windows where users can quickly input data, like annual salary, to get estimates on how much they can afford to spend on things like a vacation, as well as how much they need to save for that vacation. Monthly savings estimates can be set to aggressive savings plans or conservative ones with just a mouse click.

    Finances in One Place
    Mint.com has been around for almost three years and is already used by millions of people. Its proprietary algorithms encrypt data so people will feel confident enough to input their usernames and passwords for their online financial accounts, allowing them to see all of their financial activity in one place. These accounts include those tied to credit cards, banks, retirement savings and others. Mint is known for displaying colorful visuals like pie charts and graphs, so it's easy for people to see where they're spending their money or how it's being invested.

    Mint Goals is a new tab on the Mint.com site, and clicking on it directs users to a group of eight popular goals and one that can be customized (more will be added over time). The preset list includes goals to get out of debt, buy a home, buy a car, save for college, take a trip or save for retirement. A digital checklist in each goal called "Next Steps" gives people serious, doable tasks to complete, so they can actually make progress toward a goal in ways other than just putting money aside. This instant gratification saved me from doing a lot of calculating.

    The Best Account
    When you set up a goal for the first time, Mint suggests what type of account would work best for saving toward it. Examples include a 529 savings plan for people who are saving to put their kids through college or a Roth IRA for retirement savings. Mint will also tell you the provider with the best interest rate.

    Unlike some other websites that encourage saving, like SmartyPig.com, Mint isn't a bank, so you'll have to leave the Mint site to create accounts and manage money transfers rather than starting them right on the site. Aaron Patzer, the company's founder and CEO, expects the site will enable setting up savings accounts and money transfers by the end of this year.

    Each goal includes the overall amount of money intended to be saved, today's balance, planned and projected dates for reaching the goal and how much has been saved this month (like $200 of $750). I liked looking at Mint's colorful thermometers, which quickly showed me how I was progressing in a particular goal.

    For example, the Buy a Home goal checklist includes steps like finding a Realtor, getting homeowner's insurance and getting prequalified for a loan. A panel beside each of these items also offers an educational explanation of what these steps really mean. Many explanations include links to a blog called MintLife, where blog posts from Mint employees and some freelancers offer deep explanations about financial questions.

    Ads With Context
    The Goals feature comes with contextual ads, which help it remain free. One checklist item suggests opening a high-yield savings account and also offers links to the Discover and American Express websites, which offer the accounts. If you've started a Mint Goal to save for a trip to Iceland, travel insurance is suggested, along with Web links to sites that sell trip insurance.

    While these links might allow people to get started right away on a particular task, they also beg the question of whether these are the best options for users—or just the biggest advertisers on Mint. Mr. Patzer explained that companies for these ads are chosen according to what's best for the user and are selected from a list of savings options ranked by the site's editors.

    Goals can be linked to several of your accounts on Mint so they're updated with real-time data. A long-term retirement goal can link to a 401(k), brokerage account and retirement account. If the stock market takes a dive and money is lost in an account, that loss is automatically reflected in the overall goal's balance. If you tie a savings account to a goal to save for a house, every dollar added to that account (on the bank's end) is automatically reflected in the goal.

    Mint already gave people a visually engaging way to know more about what their money is doing, but Mint Goals give people a real reason to come back to the site more often.

    Mint.com home page --- http://www.mint.com/

    Bob Jensen's personal finance helpers are at
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers


    Spent:  A Poverty A Game 23% of America Does Not Need to Play
    Adrienne Gonzalez, Jr. Deputy Accountant, February 26, 2011 ---
    http://www.jrdeputyaccountant.com/2011/02/game-23-of-america-does-not-need-to.html

    Bob Jensen's threads on personal finance ---
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelper

     


    "2010: The Year of the Roth Conversion?" by Rich Arzaga, Journal of Accountancy, January 2010 ---
    http://www.journalofaccountancy.com/Issues/2010/Jan/20091743.htm

    This year will be the Year of the Tiger, according to Chinese custom, but it also could be remembered by investors as the Year of the Roth Conversion, a decision that can have a large impact on investors’ ability to build wealth during their lifetime and preserve wealth for beneficiaries.

     

    Prior to 2010, anyone (except married taxpayers filing separately) with an annual adjusted gross income (AGI) of no greater than $100,000 could convert a traditional IRA to a Roth IRA. The AGI cap has prevented higher-income earners, a class of savers that might have benefited most from this strategy, from participating. However, under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) these previously ineligible taxpayers will be eligible to participate starting this year (including married but separate filers). In fact, there is an incentive to take action in 2010: Everyone who converts this year may defer and spread income recognition from the conversion over tax years 2011 and 2012. A conversion in 2010 thus could reduce the marginal tax rate and total taxes due on what otherwise would be a larger single-year distribution. The 10% penalty tax otherwise imposed on early or excess distributions from an IRA does not apply. A conversion could be an attractive retirement income and estate planning strategy for wealthy individuals and high-income earners who seek to reduce taxes later in life and transfer more wealth to beneficiaries tax-free. But like any other approach to income and taxes, this decision is eventually based on a set of sustainable assumptions and specific objectives of the taxpayer.

     

    ADVANTAGES OF A ROTH ACCOUNT

    A chief advantage of a Roth IRA is that it has more flexible rules concerning distributions. Also, taxpayers who are otherwise unable to contribute to a traditional IRA can take advantage of a Roth IRA’s appreciation free from tax on gains. Other advantages of a Roth IRA include:

     

    • In most instances, contributions can be withdrawn at any time without penalty. Earnings may be withdrawn without tax or penalty if the taxpayer is at least age 59½ and has held the Roth account for at least five years. Similar strategies that provide for tax-free growth and withdrawal are the IRC § 529 plans for college education and cash-value life insurance policies. Each has its strengths and limitations.
    • With a Roth IRA, there are no required minimum distributions (RMDs) like those that apply to traditional IRAs when the taxpayer reaches age 70½. For affluent families with sufficient resources for retirement income, the RMD can seem an unnecessary expense with a confusing formula. From a client’s perspective, eliminating RMDs can provide a great sense of relief from the annual hassle of calculating and managing these distributions.
    • Unlike with traditional IRA accounts, taxpayers can continue to contribute to a Roth IRA after reaching age 70½—also an attractive feature as Americans redefine retirement and continue to be industrious into later years. Starting in 2010, a retired couple can contribute $12,000 each year (including the “over- 50 make-up” amount) into Roth accounts. The AGI limits on regular contributions to a Roth IRA still apply, but it is possible to make nondeductible contributions to a traditional IRA and convert them to a Roth, regardless of AGI. These contributions grow free of income tax indefinitely, creating significant value for taxpayers as well as their beneficiaries.
    • A tax-diversified retirement distribution strategy also helps with Social Security planning. Up to 85% of Social Security benefits are taxable. When calculating modified adjusted gross income (MAGI) for Social Security purposes, taxpayers must include all taxable and tax-exempt income and 50% of their Social Security benefits, but not Roth IRA distributions. Having a Roth IRA to supplement retirement income can be very important in managing the taxability of Social Security benefits.

     

    IDEAL CONVERSION CANDIDATES

    Some taxpayers may benefit more than others from converting to a Roth IRA. Assuming there are no cash flow issues, risk management gaps, other tax planning considerations that need to be weighed against the benefit of a conversion, advance tax issues at play, or adverse legislative changes, taxpayers who stand to benefit the most are those who:

     

    • Are wealthy.
    • Seek to reduce estate settlement costs.
    • Won’t need to draw income from converted retirement accounts.
    • Are young, high-income earners.
    • Believe their tax bracket will be the same or higher in retirement, or more specifically, when they draw income from their qualified retirement accounts. The attractiveness of traditional IRAs and qualified retirement plans depends on the assumption that taxpayers will have a lower effective tax rate after retirement, when the deferred taxes on the savings will come due. Conversely, taxpayers whose tax rate seems more likely to be the same or higher in retirement might just as soon pay taxes on income now and accumulate tax-free gains. Consider the conversion comparison in Exhibit 1.

    Continued in article

    Bob Jensen's taxation helpers are at http://faculty.trinity.edu/rjensen/BookBob1.htm#010304Taxation


    History and Strategy of Poker --- http://en.wikipedia.org/wiki/Poker
    Warning:  Gambling online is not recommended since the games tend to be rigged according to an expose on CBS Sixty Minutes
    Interestingly many of the online games are run by Canadian Native Americans not subject to gambling laws in Canada.
    CBS Sixty Minutes tied some online cheating to organized crime located --- Guess?  Would you believe Las Vegas.

    "Online Poker Study: The More Hands You Win, the More Money You Lose (even if the games are honest) ," Science Daily, January 13, 2010 ---
    http://www.sciencedaily.com/releases/2010/01/100112152410.htm

    The likely reason, said Cornell sociology doctoral student Kyle Siler, whose study analyzed 27 million online poker hands, is that the multiple wins are likely for small stakes, and the more you play, the more likely you will eventually be walloped by occasional -- but significant -- losses.

    This finding, Siler said, "coincides with observations in behavioral economics that people overweigh their frequent small gains vis-à-vis occasional large losses, and vice versa." In other words, players feel positively reinforced by their streak of wins but have difficulty fully understanding how their occasional large losses offset their gains.

    Continued in article

    "How Poker Can Make You a Better Investor," by Bob Frick, Kiplinger, January 7, 2010 ---
    http://www.kiplinger.com/features/archives/how-poker-can-make-you-a-better-investor.html?kipad_id=x

    Ever watch professional poker players calculating the odds, then coolly dissecting their opponents? Many of the same skills the top players use can help you be a better investor. Success at both investing and gambling, it turns out, has much to do with controlling emotions. And playing a little poker can help you recognize, and avoid, emotional traps that endanger your most important stack of chips -- your portfolio. But you need to know what to look for.

    The psychological issues that drive investing and gambling decisions aren’t merely similar. They are “identical,” says Andrew Lo, director of the Massachusetts Institute of Technology Laboratory for Financial Engineering and one of the leaders in the field of behavioral finance (listen to our podcast with Lo). It’s easy to find investment professionals and professional poker players who agree. Says poker pro Daniel Negreanu, who holds four World Series of Poker bracelets and two World Poker Tour Championship titles: “Having emotional stability and emotional control is key to both investing and poker.”

    Can you gain that control at a poker table? Aaron Brown is among many who think so. Brown is a onetime finance professor and former portfolio manager for Prudential Securities who is now a risk manager for hedge funds. He’s also the author of The Poker Face of Wall Street (Wiley, $17). Says Brown: “People tell me playing poker is risky. Investing for a financial lifetime without playing poker is risky. I’d much rather make these mistakes at the table.”

    And by mistakes, Brown means the common emotional errors that plague investors. The burgeoning fields of investor psychology and behavioral finance are uncovering more about these errors all the time, and they are the subject of a year-long series co-produced by Kiplinger’s and Nightly Business Report on PBS.

    By playing some poker, “you can find out your tendencies to make emotional mistakes, and then you can guard against them,” says Frank Murtha, a behavioral-finance consultant with a PhD in counseling psychology (his dissertation explored the effect of psychological errors in gambling). Murtha helps clients from investment banks, financial-services companies and trading firms to avoid making psychological errors.

    He’s also co-founder of MarketPsych, which offers psychological-training services to traders and money managers and which offers a number of online tests that any investor can take to better understand his or her own psychological makeup.

    Most investors make few investment decisions over a year, or even over a lifetime. But experts agree that just a few hours of playing poker will take you through literally dozens of financial decisions -- potentially a lifetime’s worth if you were making those decisions about your portfolio. By playing poker while keeping in mind the psychological errors that are also common to investing, you can get a lifetime’s worth of training in one evening.

    What are these errors? We’ve picked five of the most common, and all can be found both in investing and in gambling. Click on each one below to learn how they appear in poker and investing and to find out how you can use poker to help train yourself not to make these errors.

    Greed
    Overconfidence
    Regret
    Seeing patterns
    Holding on to losers

    More on Poker and Investing
    How Texas Hold 'Em Simulates Investing
    How Deepak Chopra Helped Me Become a Better Poker Player
    SPECIAL REPORT: Your Mind, Your Money

    Next page: GREED

     

    Bob Jensen's personal finance and  investment helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers

     


    Question
    What is hyperbolic discounting?

    "Psychology of poverty and temptation," by Chris Blattman, September 2009 ---
    http://chrisblattman.com/2009/09/15/psychology-of-poverty-and-temptation/

    Some people are impulsive and impatient; they prefer a dollar or a donut today far more than a dollar or a donut tomorrow, so much so that they’re willing to give up shocking amounts of dollars and donuts tomorrow for just one today. This is one reason, some say, that we see such high interest rates for short-term borrowing, from New York to Calcutta.

    Some people are not only impulsive and impatient, but inconsistently so. they care a lot about a dollar today versus tomorrow, but could care less between getting a dollar either 10 or 11 days from now. Economists call this ‘hyperbolic discounting’.

    Both behaviors–impatience and time inconsistency–could be a source of persistent poverty.

    Or not. Abhijit Banerjee presented a new paper here yesterday, written with MIT colleague Sendhil Mullainathan. They look at a number of seemingly unusual behaviors by the very poor–from exorbitant rates of short-term borrowing to the low take-up of small, high-return investments. Impatience cannot explain the patterns, they say. The impatience approach also requires the poor think differently than the rest of the population.

    Another view: we’re all impulsive and impatient in the same way, but over a narrow range of goods that are quickly and cheaply satisfied. If you’re poor, these temptations are a big fraction of your income. If you’re even somewhat wealthy, they are not. Temptations are declining in income.

    The paper runs through half a dozen perplexing patterns of behavior, and shows that these simple assumptions can explain a great deal.

    This approach has a great deal in common with hyperbolic discounting, but is empirically distinct (and has very different policy implications). Parsing out and testing these subtleties strikes me as one of the most important frontiers in the study of poverty. Declining temptation, if true, could explain all sorts of odd behaviors. With more than a few Uganda and Liberia surveys on the horizon, I’m now scheming ways to test whether it’s true.

    It’s a difficult paper, especially for those uninitiated in micro-economic theory. Even if that sounds like you: the subtle points are worth the slog.

    For an intro to the subfield, see Senthil’s essay, Development economics through the lens of psychology. Another great resource is Stefano Dellavigna’s recent JEL article on evidence from the field. Both are ungated.

     Behavioral and Cultural Economics and Finance --- http://faculty.trinity.edu/rjensen/theory01.htm#Behavioral


    78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.
    Championship Rings in pawn shops, IRS vaults, Ponzi schemer stashes offshore, or in the clutches of ex-wives

    What on earth did athletes learn in college?

    Pros seem especially susceptible to Ponzi schemes. Some recent examples --- Click Here

    10 Ways Sports Stars (multi-millionaires) Go From Riches To Rags," by Lawrence Delevingne, Business Insider, September 18, 2009 --- http://www.businessinsider.com/10-ways-sports-stars-destroy-their-finances-2009-9

     Sports Illustrated article this year showed how shockingly common financial ruin is:

    • By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.
    • Within five years of retirement, an estimated 60% of former NBA players are broke.
    • Numerous retired MLB players have been similarly ruined.

    If that's not bad enough, the recession has made things even worse. Too much money in real estate; investments in Ponzi schemes; and poor financial advising have been exposed with the down economy.

    A sign of the times? More former stars are selling their championship rings for money than ever. "It's amazing that I heard the recession was over," says Timothy Robins, owner of Championshiprings.net, who buys bling from current and former pros and has seen a 36% increase in sales during the past year. "I'm getting more calls from players than ever. They're having a really hard time."

    While just about everyone has lost money over the past year, athletes tend to make particularly bad financial decisions, and it's not just reckless spending.

    How they lose their wealth --- Click Here
    http://www.businessinsider.com/10-ways-sports-stars-destroy-their-finances-2009-9#put-cash-in-a-ponzi-scheme-1

    The 10 ways sports pros blow their cash >>

    Jensen Comment
    The same goes for many, many movie stars like Debbie Reynolds who, very late in their lives, are "willing to work for food."

    The boots in Hollywood's Boot Hill are not stuffed with savings.

    How to avoid losing your money to fraud ---
    http://faculty.trinity.edu/rjensen/FraudReporting.htm

    Behavioral and Cultural Economics and Finance --- http://faculty.trinity.edu/rjensen/theory01.htm#Behavioral


    "The Best Online Tools (software, services) for Personal Finance," The Wall Street Journal, June 8, 2009 --- http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

    1. Budgeting Your Money

    2. Creating a Financial Plan

    3. Tracking Investments and Getting Advice
    4. Checking for Fraud
    5. Keeping Track of Credit
    6. Managing Loans

    Details at http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

    Bob Jensen's helpers for personal finance ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Bob Jensen's threads on Accounting Software ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware


    Money Market Funds Are Not as Risk Free as Bank Accounts
    What very few people are talking about, however, is a more radical solution to the moral hazard question raised by money market funds. Maybe the right approach now is to acknowledge the truth. Money market funds are not, in fact, turbocharged bank accounts. They are investment vehicles. However “safe” the securities they invest in, they contain an element of risk. Indeed, the very reason they yield more than savings accounts is that they are riskier. That’s how investing works. So maybe, in this post-Reserve Fund world, it’s time for the industry — and investors — to stop pretending that money funds are risk-free. As it turns out, there is a pretty simple way to do this. As it also turns out, the money market fund industry is dead-set against it.
    Joe Nocera, "It’s Time to Admit That Money Funds Involve Risk," The New York Times, August 28, 2009 ---
    http://www.nytimes.com/2009/08/29/business/29nocera.html?_r=2


    Follow the Herd:  Can you identify a moral hazard here?

    From the Finance Professor Blog on October 19, 2009 ---
    http://financeprofessorblog.blogspot.com/

    "KaChing, a Web site where 400,000 amateur and professional investors manage virtual portfolios. Others have logged on to see what the investors on the site are doing and make the same trades in their own real portfolios.

    On Monday, KaChing is to add a new twist. Customers can set up brokerage accounts that automatically mirror the trades of a money manager, some of them professionals.

    “The idea of an asset manager showing all his research, his holdings — it’s unheard-of,”"

    The trouble with mutual funds is that investors can feel as though they have put their money in a black box. The 90 million Americans with money in funds know little about fees, what securities their money is invested in and who is in charge . . . KaChing has attracted a roster of prominent early investors from Silicon Valley who have financed the company with $3 million. They include Marc Andreessen, co-founder of Netscape; Kevin Compton of Kleiner Perkins Caufield & Byers; and Jeffrey Jordan, chief executive of OpenTable, the online reservation service. The angel investors have also been investing their own money through KaChing during the pilot period. “The concept is great — the ability to tap into not just the wisdom of the crowd, but to be able to identify and invest with the particular geniuses in the crowd that stand out,” said Mr. Andreessen, who has invested $100,000 using the site.
    Claire Cane Miller, "Site Lets Investors See and Copy Experts’ Trades," The Wall Street Journal, October 19, 2009 ---
    http://www.nytimes.com/2009/10/19/technology/start-ups/19kaching.html?_r=1

    Jensen Comment
    Money managers are human. Some might loose their tempers at a company to the point they lead their herds off cliffs just to get back at a company. Some money managers may be secretly greedy for themselves or friends and family and lead their herds with hidden agendas based on greed. For example, this is one way for a money manager to help out one of his buddies who founded a small technology company with high financial risk at the moment.

    Stock pickers in the WSJ's "Heard on the Street" and other financial news sites are watched closely such that they are not manipulating their private accounts with hidden agendas that make themselves wealthy at the expense of readers.

    I'm not arguing that there's anything illegal or even unethical about KaChing's "new twist." I just feel that the lemmings should be aware of the moral hazard.

    The KaChing homepage is at
    http://www.kaching.com/

     


    Stocks are still the best investment for the long run. But maybe not for your long run.
    Justin Fox, "Are Stocks Still Good for the Long Run?" Time Magazine, June 15, 2009 --- http://www.time.com/time/magazine/article/0,9171,1902843-2,00.html
    Also see Jim Mahar's June 10, 2009 summary at http://financeprofessorblog.blogspot.com/
    In particular this references a study by Arnott that asserts that over the past 40 years the stock market underperformed the bond market. In my opinion, if you into bonds for the next 40 years they'd better be inflation-indexed bonds such as Treasury TIPs.

    Bob Jensen's threads on the Efficient Markets Hypothesis --- http://faculty.trinity.edu/rjensen/theory01.htm#EMH


    PBS Television will now answer your personal finance questions ---
    http://www.pbs.org/newshour/insider/business/jan-june09/pocketchange_05-05.html

    Personal Finance Helpers
    From Smart Stops on the Web, Journal of Accountancy, July 2008

    KEEPING IT SIMPLE
    www.bargaineering.com/articles
    This Smart Stop’s author puts together a “Blueprint for Financial Prosperity,” working and blogging through the complexities of personal finance. Articles include “Speed Up or Shift Up: Thinking About Your Income Path” and “Do You Have an Opportunity Fund?” Also find tax and investing coverage, plus reviews of financial planning and wealth management books. Every month, the author plays “Devil’s Advocate,” where he examines the other side of “mainstream” or “common sense” personal finance ideas. Recent “Advocate” posts include “Don’t Budget to the Penny” and “Don’t Just Buy Index Funds.”

    THIS WEEK IN PERSONAL FINANCE
    www.carnivalofpersonalfinance.com
    The Carnival of Personal Finance touts itself as “a traveling weekly showcase of the best blog articles on the topic.” The carnival is hosted by a different guest blogger each week. In every edition, you’ll find links to the guest editor’s picks of the week, typically highlighting five to 10 posts from various sources, which feature expert advice on professional sites or regular-Joe experiences on personal sites. You can submit your own post for consideration, view the schedule of upcoming hosts or just browse the wealth of archived articles.

    The AICPA maintains a financial literacy site at http://www.aicpa.org/financialliteracy/FeedThePig/

    Why mutual funds are dangerous investments --- http://hk.youtube.com/watch?v=irZi9YZVEyo
    This is good advice to a point. However, most investors have different circumstances such as liquidity preferences, tax complications, and different ages such that there may not be a safe index fund suitable for every investor.

    Center for Retirement Research at Boston College --- http://crr.bc.edu/

    Investment Clubs, Hedge Funds, and Tax Implications

    Investment clubs commenced with friends in communities and/or work places that sometimes made social events out of studying investments and pooling small amounts of money in a fund that in turn was managed by the group as a whole ---
    http://en.wikipedia.org/w/index.php?title=Special%3ASearch&redirs=0&search=Investment+club&fulltext=Search&ns0=1

    I also think of an hedge fund as a much larger investment club where a professional investor generally manages the investments for a group of individuals who join that index fund. Hedge funds, like lower end investment clubs, do not sell shares in the club to the public in general. An advantage and a disadvantage of not going public is that such funds, until recently, are not subject to state and Federal securities laws and SEC oversight, although since the adverse publicity (read that Madoff Hedge Fund) of the failed attempts are being made by lawmakers to rein in on hedge funds --- http://en.wikipedia.org/wiki/Hedge_fund
    The Madoff Hedge Fund turned out to be the largest Ponzi Scheme in the World (aside from the Social Security Fund of the U.S. which is a Ponzi scheme not yet shut down).

    Investment Club Software ---
    http://en.wikipedia.org/wiki/Investment_club_software

    An Investment Club Helper Site ---
    http://investmentclubsonline.com/result.php?Keywords=Investment%20Clubs
    Note that investment clubs should understand state and local tax laws regarding investment club returns and liquidations.

    IRS Publication 550 (2008), Investment Income and Expenses
    http://www.irs.gov/publications/p550/index.html

    Abusive Tax Scheme Investigations - Fiscal Year 2009 ---
    http://www.irs.gov/compliance/enforcement/article/0,,id=187267,00.html

    Bob Jensen's investment helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#WebsitesForInvestors

    Bob Jensen's taxation helpers are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#InvestmentHelpers


    Helpful Calculators free from the Florida Institute of CPAs --- http://www.ficpa.org/ficpa/ResourceCenter/Calculators

    Home Financing

    Personal Financing

    Investment

    Retirement

    Lease

    Calculator disclaimer

    The information provided by these calculators is for illustrative purposes only. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed.

    Presented by TimeValue Software ©2009

    Bob Jensen's threads on helpful calculators ---
    http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators

    Bob Jensen's personal finance helpers ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     

     


    Question
    In the public accounting profession, what's a PFS
    ?

    Hint
    PFS is a new credential to put after one's name --- it looks better than Pfffssssttt

    The American Institute of Certified Public Accountants (AICPA) and Texas Tech University's Division of Personal Financial Planning have announced a joint agreement to develop a new educational program that will lead to the AICPA's Personal Financial Specialist (PFS) credential. The program will officially begin in June 2009, but the AICPA and Texas Tech have announced that they will conduct a PFS Pathway beta program or test program at AICPA offices in Dallas November 10 through 14th. The PFS beta program consists of four days of intense comprehensive personal financial planning case study in 12 technical areas, including estate planning, employee benefits, investment planning, financial independence, and income tax planning. Participants take an eight-hour multiple choice exam of approximately 200 questions on the fifth day.
    "AICPA and Texas Tech announce new pathway to PFS credential," AccountingWeb, August 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=105793

    Bob Jensen's threads on personal finance are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Bob Jensen's threads on credit reporting are at http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO

    Bob Jensen's helpers for finding a financial advisor are at http://faculty.trinity.edu/rjensen/fees.htm

    Bob Jensen's career helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#careers

    Mutual Funds: 10 questions to test your IQ (ten answers every investor should know by heart) ---
    http://www.azcentral.com/business/consumer/articles/2009/04/10/20090410biz-MutualFundsQuiz0410.html

    "How to Prevent Investment Adviser Fraud," by Brian Carroll, Journal of Accountancy, January 2006 --- http://www.aicpa.org/pubs/jofa/jan2006/carroll.htm


    EXECUTIVE SUMMARY
    SECTION 206 OF THE INVESTMENT ADVISERS ACT OF 1940 provides guidelines for investment advisers on what constitutes fraud.

    THE SUPREME COURT HAS HELD THAT THE ACT imposes a fiduciary duty on investment advisers to act in the best interest of their clients by fully disclosing all potential conflicts of interest.

    INVESTMENT ADVISERS SHOULD REVIEW CAREFULLY SEC and other disclosure requirements to ensure they clearly understand potential conflicts.

    INVESTMENT ADVISERS SHOULD REVIEW ALL SEC FILINGS, client marketing materials and other significant documents to ensure that they have appropriately disclosed all potential conflicts.

    Brian Carroll, CPA, is special counsel with the SEC in Philadelphia and an adjunct professor at Rutgers University School of Law, Camden, N.J.

    Alpha Return on Investment --- http://en.wikipedia.org/wiki/Alpha_(investment)

    What the professional investors don't tell you ---
    I downloaded this video --- http://www.cs.trinity.edu/~rjensen/temp/FinancialRounds.flv

    From the Financial Rounds Blog on September 4, 2009 ---
    http://financialrounds.blogspot.com/

    When I teach investments, there's always a section on market efficiency. A key point I try to make is that any test of market efficiency suffers from the "joint hypothesis" problem - that the test is not tests market efficiency, but also assumes that you have the correct model for measuring the benchmark risk-adjusted return.

    In other words, you can't say that you have "alpha" (an abnormal return) without correcting for risk.


    Falkenblog makes exactly this point:
     

    In my book Finding Alpha I describe these strategies, as they are built on the fact that alpha is a residual return, a risk-adjusted return, and as 'risk' is not definable, this gives people a lot of degrees of freedom. Further, it has long been the case that successful people are good at doing one thing while saying they are doing another.
     
    Even better, he's got a pretty good video on the topic (it also touches on other topics). Enjoy.

    You can watch the video under September 4, 2009 at http://financialrounds.blogspot.com/
    I downloaded this video --- http://www.cs.trinity.edu/~rjensen/temp/FinancialRounds.flv

    Bob Jensen's threads on Return on Investment (ROI) are at
    http://faculty.trinity.edu/rjensen/roi.htm

    Bob Jensen's threads on market efficiency (EMH) are at 
    http://faculty.trinity.edu/rjensen/theory01.htm#EMH

    50 Most Common Mistakes Made by Traders and Investors ---
    http://www.ratiotrading.com/2009/09/50-common-mistakes-most-traders-make/


    "Firms Take to The Tweetable Business Model," by Kim Hart, The Washington Post, March 9, 2009 --- Click Here

    Twitter, that microblogging tool that caught on with teens and twentysomethings using it to tell loyal followers what they're doing at any given time -- in 140 characters or less -- is now becoming part of the business strategy for a wide range of brands, from Skittles to Fairfax County.

    As exciting as it may be to hear about what your friends, or total strangers for that matter, ate for breakfast, some companies are realizing that a more effective use of Twitter is to mine it for clients, recruit employees and answer customer service questions.

    To that end, some businesses are starting to host Twitter tutorials for employees.

    Network Solutions, a Web-hosting and online marketing company based in Herndon, held a brown-bag lunch session last week to teach staffers how to sign up for a Twitter account, how to send messages to individuals and how to search for people who may be talking about the company in messages, or "tweets."

    Twitter is an easy way to create buzz for a new product launch or to alert customers to a service outage. Earlier this week, the Skittles Web site directed visitors to a Twitter search for the term "skittle" to see what people were saying about the candy. Attendees at conferences and other business-related gatherings already use the service to relate details on an unusually interesting session or to share news announcements.

    For example, at a conference focused on global health last month, philanthropist Bill Gates released a jarful of mosquitoes into a room to make a point about the spread of malaria.

    "And people found out about that first on Twitter," said Steven Fisher, community and social media manager at Network Solutions.

    Shashi Bellamkonda, Network Solutions' social media swami (yes, that's his real title), organized the tutorial, attended by about 30 people. He's a more prolific Twitterer than most, posting anywhere from five to 15 tweets per day about anything from his daily routine to the news. Big companies such as Dell are active in the Twitterverse addressing customer service issues, he said.

    Fairfax County government is also experimenting with Twitter, sending out announcements about snow-induced school closings and county board meetings.

    Companies are now accustomed to monitoring blogs and other consumer-generated content for mentions of brands -- in fact, companies such as Arlington-based New Media Strategies have made a profitable business out of it. Similarly, Bellamkonda wants Network Solutions employees to take notice of any questions, complaints or other mentions of the company that pop up on Twitter.

    W. Roy Dunbar, the firm's chief executive, said it is even more important to communicate with customers during an economic downturn. He said he gives his social media team free rein to experiment with new tools.

    "Next time, we'll conduct the meeting entirely in tweets," Bellamkonda said.

    It may be a short meeting.

    Rediscovering the Internet

    The crusade for government transparency and open data -- two of the biggest buzzwords in Washington since President Obama put them on his agenda -- has gained momentum over the past week.

    Vivek Kundra, the District's chief technology officer, was officially named as the federal chief information officer Thursday, ending months of speculation about what the brand-new job entails and what it means for how government agencies use technology.

    While the answers to those questions are still unclear, the announcement prompted a collective cheer from some local developers. As an example of what Kundra may do with federal technology projects, many of them point to the contest he held last year called Apps for Democracy, which challenged independent Web developers to come up with interesting ways to use government data.

    District-based Development Seed, a Web consulting group, mashed together government data and other online resources to create DC Bikes, a site with information about bike thefts, popular bike trails and other information for local bike enthusiasts.

    Continued in article

    March 10, 2009 reply from Roger Debreceny [roger@DEBRECENY.COM]

    Gerry Trites asked about Investor Relations on Twitter. I follow his countryman, Dominic Jones (http://twitter.com/irwebreport and http://www.irwebreport.com/) closely. He points to much going on on Twitter. See, for example, http://preview.tinyurl.com/amw98y on “eBay’s lawyers are wrong to delete earnings call information” and http://preview.tinyurl.com/avv4yl on “SEC disclaimers in the age of Twitter”.

    BTW, if you want to see your portfolio bump around rock bottom in real time, you can get stocktwits at http://stocktwits.com/ ..

    Of course, you can also follow me on Twitter at www.twitter.com/debreceny and see very important, indeed earth shattering, information such as “OMG I fractured my big toe and can’t ride my bike for a month” and “Yeah, my toe is OK and I can ride again!” <Bg>

    Regards
    Roger

     


    Question
    Did your grandparents give you a prepaid college 529 savings account?

    "Volatility Hits Prepaid 529s," by Jillian Mincer, The Wall Street Journal, March 9, 2009 ---
    http://online.wsj.com/article/SB123663406748876025.html?mod=todays_us_personal_journal

    The market volatility that has squeezed pension plans is having a similar impact on one kind of college 529 savings account -- the prepaid plan.

    Like pensions, almost all of the plans have seen their assets significantly drop as their investments have plunged. At the same time, college costs have kept rising.

    At least one state -- Alabama -- has notified plan participants that it will be considering options, which could include closing enrollment, later this month.

    "It's a potential crisis for at least some of these plans," says Joe Hurley, founder of www.savingforcollege.com, an independent Web site that provides information about 529 plans. "They may go to the state and ask for funds."

    About a dozen prepaid 529 college savings plans are available. While details of the plans vary, all allow families to buy all or part of a college education at today's prices. Typically, the accounts are guaranteed by states to at least match in-state tuition increases.

    Continued in article


    Question
    Are risky returns higher or lower than the risk free rate on average over long periods of time?

    First learn about the theory of mean reversion at http://en.wikipedia.org/wiki/Mean_reversion

    "Reversion to the Mean Why treasuries have outperformed equities," The Economist via CFO.com, November 10, 2008 --- http://www.cfo.com/article.cfm/12585264/?f=rsspage

    GREATER risk means greater reward, right? Wrong, at least over the last 25 years. As the graph shows, Treasury bonds have actually outperformed riskier asset classes over the last quarter century. That is despite the long equity bull-market from 1982 to 2000.

    Treasury bonds have understandably beaten equities this year, when the financial sector has been in crisis and the economy headed towards recession. The government bond-market always performs well at times of crisis. But the last 25 years have been, by and large, a pretty good time for global economies, marked by the "great moderation" in inflation and growth.

    But the last quarter century has been positive for all asset classes, with government debt, corporate bonds and Treasuries all returning an average of around 10% a year in nominal terms. So why have Treasuries done so well in relative terms? The explanation, as Jim Reid of Deutsche Bank explains, lies in reversion to the mean.

    Asset classes can go through long periods when they underperform, leaving them cheap and ripe for revaluation. That happened to Treasury bonds, which suffered four consecutive decades of negative real returns from the 1940s through the 1970s. At that point, Paul Volcker, then the Federal Reserve chairman and now an advisor to President-elect Barack Obama, successfully brought down inflation, allowing investors to lock in double-digit Treasury yields. It was one of the great historical buying opportunities.

    Such a period is extremely unusual. Since 1900, the average annual return from Treasuries has been 4.6%, or 1.5% after allowing for inflation. In contrast, American equities have delivered 9.3%, or 6% in real terms.

    The current poor performance of stockmarkets reflects, of course, a reversion to the mean after the excesses seen during the dotcom bubble, when the rolling 25-year annual return of US equities reached a remarkable 16%. On a 10-year basis, the return from equities has now slumped to minus 3.5% in real terms.

    . . .

    There are two important caveats. First, this kind of analysis is no use at all in predicting short-term movements. Second, markets spend very little of the time at fair value (on Mr Reid's calculations), tending to veer wildly from one extreme to another. All three asset classes might still be overvalued; after all, the figures show returns over the last quarter century have been well above average.

    Jensen Comment
    This speaks in favor of jumping out of equity at the instant a bubble begins to burst. but it's generally difficult to identify a true bubble early on. Plus the media is always urging the public not to panic and to hang on to equity investments on the theory that what goes down goes back up. The media, however, probably does not have a clue about mean reversion.False positive bailouts can lead unnecessary transactions costs. Also if your equity investment is tied up in a pension fund like CREF, you don't have fast reacting options.


    Helpers in planning for retirement --- http://www.plan-for-retirement.com/

    Naked Shorts:  Irreverent Investment Ideas --- http://nakedshorts.typepad.com 

    Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

    Bob Jensen's investment helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#Finance


    Question
    Where can you find one of the best definitions of hedge funds and summaries of alternative hedge fund strategies?

    Answer
    Where else than Wikipedia --- http://en.wikipedia.org/wiki/Hedge_fund

    Bob Jensen's rather puny set of threads in comparison is under the H-terms at http://faculty.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#H-Terms


     


    Tax Breaks for College Savings:  Now may be the best time for starting to save for the college education of your children or grandchildren

    "529 College Savings Plans remain a mystery to most parents," AccountingWeb, August 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=104018

    Parents are counting on credit to counterbalance skyrocketing college costs, according to The State of College Savings, a survey to assess the state of college savings conducted by the College Savings Foundation. Fifty-four percent have saved less than $5,000 toward their goal and almost 40 percent expect to take at least 10 years to dig out of the daunting debt expected to send their children to college.

    The survey of 447 parents, who span income levels and crisscross the country, revealed for the first time that American families intend to rely on long term-debt, rather than savings, to fund their children's futures. Even though 79 percent of all respondents would be highly disappointed if their children could not afford to go to college, over half, 51 percent, of that group has saved less than $5,000 per child.

    Continued in article

    Morningstar, the global investment research firm has published its annual list of the best and worst 529 plans – when it comes to earning long-term returns for college savers – and the overall opinion smacks of optimism. Some of the worst plans from years past have folded up and gone away, while others continually strive to improve.
    AccountingWeb, August 2008 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=105846

    "Twelve tips for funding that college education," AccountingWeb, August 2008 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=104016

     


    There's a shelf of financial bestsellers whose titles now sound absurd: Ravi Batra's The Great Depression of 1990; James Glassman's Dow 36,000; Harry Figgie's Bankruptcy 1995: The Coming Collapse of America and How to Stop It. There’s BusinessWeek’s 1979 description of "the death of equities as a near permanent condition,
    Michael Lewis, "The Evolution of an Investor," Blaine-Lourd Profile, December 2007 ---
    http://www.portfolio.com/executives/features/2007/11/19/Blaine-Lourd-Profile#page3
    As quoted by Jim Mahar in his Finance Professor Blog at http://financeprofessorblog.blogspot.com/

    As a group, professional money managers control more than 90 percent of the U.S. stock market. By definition, the money they invest yields returns equal to those of the market as a whole, minus whatever fees investors pay them for their services. This simple math, you might think, would lead investors to pay professional money managers less and less. Instead, they pay them more and more...Nobody knows which stock is going to go up. Nobody knows what the market as a whole is going to do, not even Warren Buffett. A handful of people with amazing track records isn’t evidence that people can game the market. Nobody knows which company will prove a good long-term investment. Even Buffett’s genius lies more in running businesses than in picking stocks. But in the investing world, that is ignored. Wall Street, with its army of brokers, analysts, and advisers funneling trillions of dollars into mutual funds, hedge funds, and private equity funds, is an elaborate fraud.
    Michael Lewis, "The Evolution of an Investor," Blaine-Lourd Profile, December 2007 ---
    http://www.portfolio.com/executives/features/2007/11/19/Blaine-Lourd-Profile#page3
    As quoted by Jim Mahar in his Finance Professor Blog at http://financeprofessorblog.blogspot.com/


    "Smart Stops on the Web," Journal of Accountancy, January 2008 --- http://www.aicpa.org/pubs/jofa/jan2008/smart_stops.htm

    PERSONAL FINANCIAL PLANNING

    CENTER IN ON PFP SERVICES
    http://pfp.aicpa.org

    Want to offer financial planning services to your clients? Visit the AICPA’s Personal Financial Planning Center for PFP resources to get you started. Click the “Events” tab to register for Web seminars, including “The Mathematics of Estate Planning” on Jan. 16, or research the requirements and application process for the Personal Financial Specialist credential. In the upcoming months, the section’s Executive Committee will roll out a suite of updated practice guides on various PFP technical and practice management topics, available to PFP Section members and PFS credential holders at no cost.

    STRAIGHT FROM THE SOURCE
    www.treasurydirect.gov

    Individuals and financial institutions can buy and redeem Treasury securities, including bills, notes, TIPS and series I and EE savings bonds, directly from the U.S. Treasury at this Smart Stop. Not confident enough to invest yet? Enter the “Individuals” or “Institutions” sections, and then use the “Research Center” to access a glossary of terms and in-depth coverage of auctions and products or to take a guided tour of the site. There is also a calendar of upcoming Treasury auctions, as well as auction regulations and recent results.

    STAY DEBT-FREE
    www.moneycrashers.com

    At this “Guide to Financial Fitness,” author Erik Folgate chronicles his experience with getting into and out of debt, providing recent graduates and young professionals with the education needed to be financially successful. Follow the “11 Principles” series, which includes tips on saving money for the unexpected and creative ways to boost your income, or read articles on financial planning, such as “Don’t Let Your Fears Stand in the Way of Investing” and “Stay Positive When Paying Off Debt.”

     

    GENERAL INTEREST

    ERISA EDUCATION
    www.dol.gov/elaws/ERISA/Fiduciary.htm

    Developed by the Employee Benefits Security Administration, this site’s fiduciary adviser provides an overview of the basic fiduciary responsibilities applicable to private-sector retirement plans under the Employee Retirement Income Security Act (ERISA). Designed for accountants and other third-party service providers, the adviser uses a series of questions to determine whether a retirement plan falls under ERISA requirements, and if so, what they are. This Smart Stop also has a comprehensive listing of ERISA resources at www.dol.gov/elaws/ebsa/fiduciary/resources.htm.

    FLY HAPPY
    www.yapta.com

    Whether you’re planning a vacation months in advance or jetting off for a last-minute business trip, use Yapta as “Your Amazing Personal Travel Assistant.” Registered users tag their desired or frequently traveled flights, then are alerted by e-mail when the prices of those routes drop. Already bought a ticket? If you booked through an airline’s Web site, submit your confirmation code or forward Yapta your confirmation e-mail. If the ticket price drops below what you paid, the site will let you know whom to call and what to say to receive a refund for the difference or a travel voucher.

    STUDENT INSIDERS
    http://njscpa.typepad.com/examcram

    What does it take to become a CPA these days? Follow a few New Jersey Society of CPAs student members, who are chronicling their trials, tribulations and triumphs on the society’s Exam Cram blog. Browse the archives to read Scott Sandford’s journey as he studied for and took the CPA Exam while working at Deloitte, or join the NJSCPA’s new student recruit, Priscilla Jenkins of Merrill Lynch & Co. in Pennington, N.J., as she sits for part of the exam in February. Also take some time to read Tomorrow’s CPA, a monthly
    e-newsletter for accounting students, written by accounting students, on the NJSCPA’s Students and Educators site (www.njscpa.org/students).

    GO GLOBAL
    www.jimhamiltonblog.blogspot.com

    Jim Hamilton, a principal analyst at Wolters Kluwer Law & Business and a leading contributor to the CCH Federal Securities Law Reporter, emphasizes SEC rulemaking, international, federal and state regulations, and industry trends on his “World of Securities Regulation” blog. Under “Tools,” click “Posts by Topic” for a complete listing of the blog’s auditing, financial reporting, Sarbanes-Oxley and PCAOB coverage, or look for new posts on principles-based regulations, the mortgage lending market and international issues.

    —Megan Pinkston

     

    A Government Website for Helpers in Personal Finance
    MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are planning to buy a home, balancing your checkbook, or investing in your 401k, the resources on MyMoney.gov can help you do it better. Throughout the site, you will find important information from 20 federal agencies government wide.
    My Money.gov --- http://www.mymoney.gov/

    The AICPA's Financial Literacy Helper Site --- http://www.360financialliteracy.org/

    Bob Jensen's finance helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm


    Annuity Buyer's Guide --- http://www.annuitybuyersguide.com/


    David Bach's "Latte Principle" --- Click Here
    A Penny Saved Compounds to Much More Than a Dollar Earned
    Jim Mahar provided the following two links:

    "Penny's Add Up to Millions," Free Money Finance, October 15, 2007 --- http://www.freemoneyfinance.com/2007/10/pennies-add-up-.html

    Here's a post from Yahoo Finance that details the author's struggle with her husband to take his lunch to work. But the essence of what she says is really that saving/watching your pennies is the key to wealth. Her thoughts:

    I'm convinced that for the average person who wants to build wealth, pennies count.

    Pennies have a funny way of snowballing into dollars, and then hundreds, and then thousands, especially if you use them to buy the stocks of well-managed companies. Consider the story of a parking attendant who earns $20,000 a year but has amassed a $500,000 equity portfolio. Or the one about a group of New Yorkers who managed to save for a down payment on a (very expensive, very tiny) piece of the Big Apple. Or the clan of seven dubbed "America's cheapest family," who paid off their mortgage in nine years on a salary of $35,000 a year.

    I've seen article after article bashing David Bach's "Latte Principle" -- the idea that if you save on small spending you can amass a large amount of wealth. The main argument against it is that people should be paying attention to large expenditures -- that's where the real difference is made. But Bach isn't saying to ignore the expensive decisions in life. He's just aware that for many of us there are small amounts we spend every day without really thinking about how much they end up costing us. And that if we just limit a few of them and save that money, we can save a good amount throughout the years.

    Continued in article

    "How to Save a Bundle of Money,"  Free Money Finance, October 15, 2007 --- http://www.freemoneyfinance.com/2007/10/how-to-save-a-b.html

    Yahoo Finance has a list of ten money drains along with the annual costs of each of them. I view this as a list of where we all can save a bundle of money. Here's their list as well as the annual amounts spent on each of them (in other words, what you could save if you eliminated them):

    1. Coffee -- $360 per year.
    2. Cigarettes -- $1,660 a year.
    3. Alcohol -- $3,650 per year.
    4. Bottled water from convenience stores -- $365 per year.
    5. Manicures -- $1,068 per year.
    6. Car washes -- $348 per year.
    7. Weekday lunches out -- $2,350 a year.
    8. Vending machines snacks -- $260 per year.
    9. Interest charges on credit card bills -- $4,868 in interest (over time).
    10. Unused memberships -- $480 per year.

    Now of course I wouldn't suggest that someone cut out everything and eliminate all of life's pleasures. After all, we should use part of our money to enjoy ourselves. But for those people out there looking for a way to save a bit extra, for those who simply "can't make it on what I earn", and for those who would simply like to pay down their debt, this is a pretty good list to consider cutting down on -- even if it's for a short period of time. And you don't have to eliminate each of the items above, simply consider cutting back on them. There's still tons of savings available by cutting your car washes, manicures, or alcohol consumption in half.

    And if these aren't enough money saving ideas, check out my list of ways to save money from 2005-2006 as well as my 2007 list.

    Jensen Comment
    Of course eliminating all the above would not necessarily be wise. If there's five feet of snow on the ground, I'm not about to wash my own car. Yet getting the car washed in winter is more important than in summer if you live where they salt and sand the roads. Spending $358 each winter car washes may well save thousands if you can, thereby, double the life of your car.

    New cars lose 60% of value in the first four years. Most people waste more money on cars and interest charges for car financing than any other single cash drain in their lives, including the cost of housing. Cars are a necessity of life for most of us who have no convenient public transportation alternatives. But frequent trading in of good cars for new cars is a monumental mistake in finance. Leasing is also a synonym for stupidity. Insiders call it "fleecing a car." But I'm grateful for ignorant people who are constantly turning in good owned or leased cars. Most of the cars I've owned over the years were turned back leased cars. Great mechanics put my previously-owned or previously-leased vehicles back in top shape, and I save a bundle relative to their prior owners. If you must finance your next vehicle, please be a smart shopper and be informed how dealers cheat --- http://faculty.trinity.edu/rjensen/FraudDealers.htm

    I lived in San Antonio for 24 years where over 500 cars per month are stolen. See the video --- http://www.youtube.com/watch?v=TQPSXCqBqz4
    My answer was to buy an old car (usually a station wagon) and make it look even less desirable to the thousands of car thieves cruising about San Antonio by day and by night. Little did thieves know that underneath the hood was a new power train and other features that made my old heaps just like new. I always remember a comedy show that featured a company in Los Angeles that would ghettoize a new or relatively-new car to make it look like a junk yard dog. My city cars were like that. My wife and I were more safe since our cars were of little temptation to carjackers. But my children generally crouched down in the seats or asked to be let out a block away so their friends would not see them in my cars.

    Next to car financing, the biggest mistake most people make is credit card financing to a point where they seldom zero out what they owe on credit cards. This is the "dirty secret" of that makes credit card companies suck billions upon billions of dollars out of the economy --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO
    When we're about to go on long trips, I overpay monthly expenses ahead of time so that if we're delayed in returning home we never have to worry about being charged interest or late payment penalties. For example, I put huge credit balances into our credit card accounts before going on a long adventure.

    Do I buy into David Bach's "Latte Principle?"
    Well yes and no. I do not believe in Spartan living so I can watch my savings grow for the sake of watching my savings grow. I don't drink latte, but I also opt for four-star or five-star hotels or lovely country inns when my wife and I are on adventures. Expensive restaurants are generally wastes of money, but we go to them when the mood is right and/or the friends we're with prefer a top restaurant. Often you can eat just as well in the hotel's lounge as in the expensive restaurant down the hall. There's a huge difference between what you splurge for on daily (like credit card interest and latte) versus what you splurge for infrequently. When I used to come home at night and have a couple of drinks daily, I drank cheap Boca Chico rum in my cubalibras. Now that I don't drink daily, I splurge on fine wine and expensive liquor once in a while.

    In the final analysis, I would have to say that I live better in retirement because I pretty much followed the "Latte Principle" before it was called "Latte Principle." Most of my travels in life were financed by others who made me sing (lecture) for my supper, but I enjoyed the fellowship and strokes of these types of trips more than I did boring leisure vacations. I spent as much as I could possibly afford on land and houses, but these generally returned more than I paid for them. I spent as little as possible on cars and preferred to buy finely-tailored suits in upscale second hand shops (look for Second Looks in San Antonio and Austin).. I think most of the former owners of my suits had passed on in life.

    I never argue with my wife over money even when she tips almost as much as the check itself.  I never object when she hands out ten dollar bills to receptionists,  postal clerks, trash haulers, window washers, and bell ringers outside the Wal-Mart stores. She's thrifty but likes a lot of new things she generally buys on sale. She seldom shops in stores. But the UPS truck stops up here in the mountains nearly every day. While my wife is wearing the "8" and "0" buttons off on  phone in our den (mostly she orders gifts), I'm on the computer ordering everything from books to groceries to space heaters from Amazon.com (a great, great place to shop). Our UPS driver's name is Joe, and if I'm not at home he comes into the basement and assembles what he's just delivered. Will your UPS driver do that?

    I truly got my money's worth out of faculty clubs. I would've joined expensive country clubs but I never had time for a round of golf even once a week. Such is the price one pays for being a workaholic.

    It's easier for a workaholic to live by the "Latte Principle." But most of us workaholics are doing what we like best.

    October 17, 2007 reply from Barbara Scofield [scofield@GSM.UDALLAS.EDU]

    When my husband was in training to be a police chaplain, the trainer began talking about the issue of stolen cars by pointing to my husband and saying, “What kind of car do you drive?” Rob, my husband, responded, “A ’99 Saturn wagon.” The police trainer told him, “You can leave the keys in your car.”

    Barbara W. Scofield, PhD, CPA


    Investment Theory versus Practice:  What are volatility "smiles" versus "smirks"?

    From the Financial Rounds Blog on April 28, 2008 --- http://financialrounds.blogspot.com/

    Informed Traders and Options Markets

    If you were an informed trader, would you trade in the options market or in the market for the underlying asset? Finance theory says you'd trade in the options market because of increased leverage.

    Now here's another paper that supports this idea. In their March 2008 paper Xiaoyan Zhang, Rui Zhao and Yuhang Xing look at whether relatively expensive put options can be used as "bad news" indicators. Here's the abstract of their paper:

    The shape of the volatility smirks has significant cross-sectional predictive power for future equity returns. Stocks exhibiting the steepest smirks in their traded options underperform stocks with the least pronounced volatility smirks in their options by around 15% per year on a risk-adjusted basis. This predictability persists for at least six months, and firms with steepest volatility smirks are those experiencing the worst earnings shocks in the following quarter. The results are consistent with the notion that informed traders with negative news prefer to buy out-of-the-money put options, and that the equity market is slow in incorporating the information embedded in volatility smirks.

    Read the whole thing here. --- http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1107464

    In case you're not familiar with the term, the volatility "smile" refers to the phenomenon that implied volatility increases for options that are further out of the money. If the increase in implied volatility is greater on one side than on the other, the pattern is known as a volatility "smirk". In the case of this paper the smirk is used as an indicator of the degree to which puts or calls are relatively expensive. For example, if calls are relatively more expensive, that is taken as an indicator that informed traders have been buying calls because they have positive information about a stock, with expensive puts being an indicator that traders possess bad news.

    In addition to predicting subsequent returns, the authors also find that firms with the most expensive put options are more likely to have the worst negative earnings shocks in the following quarter.

    All in all, a pretty cool paper that indicates how information from one market can predict movements in another.

    Jensen Comment
    Do you suppose that Sony's Camera's new frown-fixing tool (called Happy Face Retouch) can be pointed at a volatility graph and turn a smirk into a smile?

    Bob Jensen's investment and personal finance helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

     


    Question
    What are 120-20 and 130-30 funds?

    These funds are called 120-20 or 130-30 funds, reflecting their proportion of assets held long and sold short, with the proceeds from the short sales used to leverage the long position with borrowed funds, so that the long exposure is more than 100 percent. “The idea seems to have caught on,” said Barry P. Barbash, a Washington lawyer who once headed the investment management division at the Securities and Exchange Commission. “Public funds using this strategy seem to be multiplying almost daily.”
    Robert D. Hershey, Jr., "This Fund Concept Blurs Old Lines," The New York Times, July 8, 2007 --- Click Here

    "Twenty-Five Ways to Reduce Investment Risk," The Aleph Blog , July 21, 2007 --- http://alephblog.com/?p=186

    The Aleph Blog (Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control) --- http://alephblog.com/

    From Smart Stops on the Web, Journal of Accountancy, July 2007 --- http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm

    WEALTH MANAGEMENT

    SECURING A REPUTABLE BROKER
    www.nasd.com/brokercheck
    The NASD has answered the calls of investors looking for background information on potential financial service providers. The organization’s BrokerCheck Program lets users research current or formerly registered securities firms, individual brokers and regulated Investment Adviser firms. It also provides a comprehensive 10-year business and licensure history and list of disclosure events, including criminal actions, customer complaints and disciplinary actions by regulators against the firm or broker. Investors receive an electronic disclosure report as well as access to other educational services, including the Professional Designation Database and state disclosure programs.

    BECAUSE YOU’RE WORTH…MORE
    www.freemoneyfinance.com

    Whether you’re living on a student’s budget or a CFO’s salary, Free Money Finance has innovative ideas for increasing net worth, budgeting and maximizing retirement savings that you can immediately put into practice. On Mondays, check out “Star Money Articles,” a posting of news and tips from several of the Web’s popular personal finance sites. Take a few minutes on Fridays to read “One Year Ago,” popular posts from the prior year, to jump-start a frugal weekend.

    THE BENEFITS OF TAX KNOWLEDGE
    www.irs.gov/retirement

    Visit this Smart Stop for the latest tax news and information affecting the employee plans community. CPAs can search for resources on employee plans (EP) examinations and enforcement, retirement plans, benefit audits and correcting EP errors. Click on the “EP/Forms/Pubs/Products” link for access to PDF versions of EP forms and publications, plus in-depth instructions for form 5500, Annual Return/Report of Employee Benefit Plan, and form 5330, Return of Excise Taxes Related to Employee Benefit Plans.

    NOTHING IS CERTAIN BUT…
    www.deathandtaxesblog.com

    Visit Chicago-area attorney Joel Schoenmeyer’s Web site to brush up on topics straddling the lines between law, accounting and wealth management. Death and Taxes—The Blog offers estate planning and administration news and commentary, plus coverage of legal issues about real estate, gift and income taxes, trusts and charitable giving.

    Naked Shorts:  Irreverent Investment Ideas --- http://nakedshorts.typepad.com 

    Corporate Financial Reports
    O'Keefe Accounting Library Searches http://library.sau.edu/bestinfo/Majors/Accnt/accindex.htm

    Advertisement Free Personal Finance Blogs --- http://pfblogs.org/blog/29

    Mortgage Professor's Tips on Whether or Not to Pay Off Your Mortgage Early --- http://www.mtgprofessor.com/early_payoff.htm

    How Mortgages Work --- http://money.howstuffworks.com/mortgage.htm 

    The AICPA's Financial Literacy Helper Site --- http://www.360financialliteracy.org/

    What are current mortgage rates? --- http://biz.yahoo.com/b/r/m.html

    Lord Help Us!
    Stockpickr has a list of the Top 100 Business Blogs

    Damodaran Online: A Great Sharing Site from a Finance Professor at New York University and Textbook Writer --- http://pages.stern.nyu.edu/%7Eadamodar/

    Jim Mahar's finance sharing site (especially note his great blog link) --- http://financeprofessor.com/

    Financial Rounds from an anonymous finance professor --- http://financialrounds.blogspot.com/

    Beware of the So-Called Investor Education Programs (especially beware of infomercials)
    "I don't see frankly much out there that really does the job, and that's partially because investors are their own worst enemy," says former SEC Chairman Arthur Levitt. "They refuse to invest skeptically, and are too easily seduced by all the purveyors of financial products that prey upon their worst instincts."
    "Investor Education 101: How to Avoid Scams:  Outreach Programs Target Most-Vulnerable Americans, But Success Is Hard to Assess,"  By Lynn Cowan, The Wall Street Journal, May 9, 2006; Page D3 --- http://online.wsj.com/article/SB114713241888747241.html?mod=todays_us_personal_journal

    The Invisible Problem of Risk Blindness," by Kevin Dowd, Financial Engineering News, November 2006 --- http://www.fenews.com/fen52/risk-reward/risk-reward.html

    Help for the younger generation's planning ahead for their financial futures
    "A Glimpse of the Future: Savings and asset accumulation among Americans 25–34," Journal of Accountancy, January 2007 --- http://www.aicpa.org/pubs/jofa/jan2007/special2.htm
    Also see http://faculty.trinity.edu/rjensen/fees.htm

    Are Hedge Funds Out of Control?  (from the University of Pennsylvania's Wharton School
    Click Here

    Foreign Direct Investment (FDI) in the U.S. --- http://www.fdi.net/

    "Are You Saving Enough for Retirement? A Guide to Figuring It Out and Funding It," by Jonathan Clements, The Wall Street Journal, July 12, 2006; Page D1 ---
    http://online.wsj.com/article/SB115265948927403942.html?mod=todays_us_personal_journal

    So what's your personal liability and how can you trim it? Brace yourself: We're in for some scary math.

     Bridging the gap.
    "Corporate accounting requires companies to look at their pension obligations, to use reasonable assumptions and to fund those obligations on an annual basis," notes Charles Farrell, a financial consultant in Medina, Ohio. "A little bit of that corporate discipline can be helpful on the individual side."
     
     

    Mr. Farrell's advice: Start by deciding how much income you will need from your portfolio to supplement whatever you expect from Social Security and any pensions you're entitled to. Next, multiply your desired portfolio income by 20, to get the target size of your retirement nest egg. (This assumes you use a 5% withdrawal rate in the first year of retirement, and thereafter step up your withdrawals with inflation.)

    For instance, if you're looking to garner $40,000 in initial retirement income from your portfolio, you would need $800,000 saved. Let's say you have $300,000 salted away. That means your current unfunded retirement liability is $500,000.

    To find out how much you need to save each month to amass this $500,000, head to www.dinkytown.net and call up the savings-goal calculator. One problem: Thanks to inflation, your target retirement income and your required savings could be whole lot bigger by the time you quit the work force. What to do? Mr. Farrell suggests thinking in terms of after-inflation "real" rates of return.

    To that end, when using the dinkytown.net calculator, set inflation at zero and input what you think your annual return will be, over and above inflation. If your portfolio includes a decent helping of stocks and you're careful about investment expenses, you might opt for a 4% real return.

    Finally, enter your portfolio's value, your current monthly savings and your time horizon. The calculator will then tell you how much you really need to save each month to accumulate your desired nest egg. But here's the key: To combat inflation and ensure you have enough at retirement, you will need to increase your monthly savings along with inflation.

     Raising the price.
    Does your required savings rate seem a little steep? If anything, you should probably be socking away even more, for two reasons.
     
     

    First, many financial planners consider a truly safe withdrawal rate to be 4.5% or even 4%. That means you ought to amass as much as 25 times your desired $40,000, boosting your retirement liability to $1 million.

    This is clearly news to a lot of ordinary investors. According to a study recently conducted for insurer New York Life, 40% of those surveyed weren't sure how much they could safely withdraw from a portfolio -- and an additional 29% thought that a safe retirement withdrawal rate was 10% or more. "There's a pretty big gap between expectations and reality," says Ted Mathas, chief operating officer at New York Life.

    Second, while you might want only $40,000 a year in portfolio income, you should be prepared to spend as much as $74,095 per person. That's the national average cost for a private nursing-home room, according to insurer MetLife's Mature Market Institute. In fact, if both you and your spouse need care at the same time, you could have to fork over some $150,000 a year.

    Assuming you get $20,000 a year from Social Security, your out-of-pocket cost might be $130,000. Based on a 5% withdrawal rate, that means you need $2.6 million socked away. How's that for a retirement liability?

    "Long-term care is a huge potential cost," Mr. Farrell says. "If you're not rich enough to self-insure, you've got to think about buying a long-term-care policy that gives you at least minimal coverage."

     Trimming the tab.
    A long-term-care policy is one way to dial down your unfunded retirement liability.
     
     

    What else can you do? To squeeze more retirement income out of your assets, you could take out a reverse mortgage and use maybe 25% or 50% of your savings to buy an immediate-fixed annuity that pays lifetime income.

    In addition, "you could try to lower your fixed costs," Mr. Farrell says. "A smaller house is better, because that should lower your property taxes and lower your utilities. You might also want to reassess how many cars you have."

    Of course, cutting back isn't easy. "Try to downscale before you retire, to see if you're comfortable with that," Mr. Farrell suggests. "If you're not, you might want to retire a little later."

    Postponing retirement -- unpalatable as it seems -- can transform your chances of a comfortable retirement. By delaying, you will have more time to save and more time for your investments to grow. You will also shorten your retirement, so you can be more aggressive in spending down your nest egg.

    As an added bonus, delaying retirement will allow you to postpone taking Social Security and purchasing an immediate annuity. Result: When you start Social Security and when you buy your annuity, you will get even more income.

    Investment Helpers
    From the Journal of Accountancy January 2007 Smart Stops on the Web --- http://www.aicpa.org/pubs/jofa/jan2007/news_web.htm

    Onward and Upward
    www.mynextphase.com

    Here CPAs and financial advisers can get a free trial membership and explore some of the nonfinancial considerations of retirement, such as how to handle change and revisit past interests as future options. Retirement Resources has links to Web sites on health, recreation and working after retirement. Find books on successful retirement in Suggested Reading, get the free newsletter Next Phase News and download research findings in “Retirement Trends and Truths.”

    Get the Financial Facts
    http://kimsnider.blogs.com
    This blog, created by the founder and president of Kim Snider Financial Communications, has dozens of posts from financial journals and Web sites on topics including annuities, bonds, cash flow investments, financial education and investment principles. Find out how Kim Snider invests her own money and learn her portfolio management strategies with a free informational session.

    A Helping Hand
    www.finaid.org

    Personal financial planners with clients that have kids in school will want to bookmark this Smart Stop for guides on navigating financial aid, loan and scholarship information. Find links to aid programs from the military and federal and state governments, as well as resources on education tax benefits and financial aid applications. Get calculators to project college costs and help with family budgeting. Or go to Beyond Financial Aid for a financial aid checklist and links to college selection and jobs and internship sites.

    Money Matters
    www.pfblog.com

    Follow this blogger’s personal finance journey to learn about the 10 best domestic equity fund managers and how to properly close a credit card account. Look up your life expectancy in the Archives or go to the PFBlog Digest to get the scoop on paying off student loans, starting salaries for college grads and how 529 plans affect financial aid eligibility.

    Make a Clean Break
    www.womansdivorce.com

    Financial advisers looking for divorce resources for female clients can go to this site’s Downloadable Documents section for state-specific divorce forms, parenting, separation and property settlement agreements. The Legal Considerations for Women and Financial Information sections offer divorce strategies and advice on choosing an attorney.

     

    From 'Smart Stops on the Web', Journal of Accountancy, December 2004, Page 29 --- http://www.aicpa.org/pubs/jofa/dec2004/news_web.htm 

    SMART STOPS ON THE WEB
     
    MUTUAL FUND SITES

    Back to Basics
    mutualfunds.about.com
    CPAs looking for a refresher course on mutual funds will find articles such as “Determining Your Mutual Fund’s ‘Cost Basis’” and “Avoiding Internet Investment Scams.” Users can sign up for a free 10-day online course on the basics of mutual fund investing or a mutual fund newsletter. Other resources include links to broker ratings of funds, financial calculators and glossaries.

    The Fund Finder
    www.mutualfundsnet.com
    CPAs looking for investment information for their clients will want to bookmark this Web site. In addition to free mutual fund sponsor searches in categories such as socially responsible corporate and government mutual funds, users can find information about investment conferences and links to breaking industry news. CPA broker-dealers can add their resumes to the database or check job postings from listed companies.

    For Fund Facts
    www.mfea.com
    Investment advisers looking to educate their clients on mutual fund options will find detailed information on topics including taxes and fund risk at this stop on the Web. Users can find explanations of the differences among mutual funds and a glossary of investment terms or search for funds, create model portfolios or use calculators for college, retirement and tax-savings plans.

    The Kids and College section of this Web stop links to sites that offer investment resources for money-minded children, such as calculators to help them decide how much allowance to save for major purchases and a dictionary of basic investment terms.

    Satisfy Your Need to Know
    www.ici.org
    Here visitors can find free statistics on money market mutual fund assets or reports on the latest industry developments, such as “SEC changes SRO Procedures for Filing Rule Changes.” Other sections include A Guide to Understanding Mutual Funds, Frequently Asked Questions and a news archive dating back to 1995.

    Keep Track of the Market
    www.123jump.com
    Users can register for free to keep tabs on their mutual funds at this e-stop, which offers general business, current and archived earnings news, as well as QuoteStream to see how your picks measure up on the Nasdaq, NYSE and S&P 500 stock index. Visitors also can get two daily e-mail newsletters, Earnings Ticker and Ticker AM—Business News Update.


    From Smart Stops on the Web, The Journal of Accountancy, May 2006 --- http://www.aicpa.org/pubs/jofa/may2006/news_web.htm

    Invest Time for a Laugh
    www.dailyreckoning.com
    Who says researching investment information can’t be fun? At this Web site, visitors not only get the latest market headlines and insights, but also some laughs. For example, the Essentialist Glossary in the Extras section defines Bill Gates as “where God goes for a loan.” Users also can read special reports on investing in India or value-investing strategies, subscribe to the free Daily Reckoning financial e-letter or get five secrets for investing in small- and micro-cap stocks.


     
     

    October 13, 2006 message from Dan Blystone (no relation to Trinity University's Bob Blystone)

    Dear Bob,

    I am writing to request that you kindly consider adding a link to my website (TradersLog.com) on your page here:

    http://faculty.trinity.edu/rjensen/bookbus.htm 

    I think your visitors may find it useful and interesting, and it would help my startup gain some valuable exposure.

    The website description is: Portal website for traders and investors featuring articles, analysis and a community forum.

    Please let me know if you have any questions.

    Best Regards,

    Dan Blystone
     TradersLog.com
    (312) 593-1322

    Reply from Bob Jensen

    Hi Dan,

    I added your message to http://faculty.trinity.edu/rjensen/Bookbus.htm

    However, I think I have some better places to also add your message. It will be in the forthcoming (October 31) edition of New Bookmarks.

    I have added your link to my investor helper module at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Since you provide a great set of links to economic and financial statistics, I also added your link at http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics

    Best of luck in your venture.

    Bob Jensen


     

     


    A deep interest in numbers and finance and a desire to help the average investor led Eric Tyson, MBA '89, to write a series of "Dummies" books in areas about personal money management.
    http://www.gsb.stanford.edu/news/bmag/sbsm0311/feature_tyson.shtml 

    Top Online Brokers, Barron's, March 10, 2003, Page 24
    STAR POWER

    Our first-ever 4-1/2-star rating goes to optionsXpress, with seven other brokers getting strong four-star scores.  Check also the scores in categories most important to you.

    Broker Trade
    Execution
    Ease of
    Use
    Range of
    Offerings
    Research
    Amenities
    Reports and
    Customer
    Access
    Costs Weighted
    Total
    Star
    Rating
    optionsXpress 4.8 4.3 4.5 4.6 4.1 4.0 26.5 ****1/2
    TradeStation 5.0 4.0 3.9 4.5 4.0 4.5 25.9 ****
    Terra Nova 4.8 3.8 3.8 3.8 4.6 4.0 25.2 ****
    Ameritrade Apex 4.0 4.5 3.7 4.6 4.1 3.3 24.6 ****
    Wall St.*E 4.5 3.0 4.8 3.4 4.2 4.5 24.3 ****
    Wall St. Access 3.7 4.5 4.8 3.9 3.3 3.0 23.5 ****
    SieberNet 3.8 4.2 3.6 4.1 4.2 3.0 23.4 ****
    CyBerTrader 4.7 4.0 2.5 4.2 3.9 3.5 23.2 ****
    E*Trade (Power) 3.4 3.0 4.2 4.2 4.3 3.1 22.6 ***1/2
    Harrisdirect 3.6 3.5 4.5 4.4 3.7 1.9 22.5 ***1/2
    Fidelity 3.4 3.5 4.3 3.7 4.4 2.0 22.3 ***1/2
    Charles Schwab 3.4 3.7 4.1 4.4 4.2 0.4 21.9 ***1/2
    Scottrade 3.8 3.8 3.5 3.7 3.2 4.0 21.8 ***1/2
    E*Trade (Standard) 2.5 4.0 4.0 4.2 4.4 1.6 21.6 ***1/2
    Interactive Brokers 4.3 3.7 3.0 2.7 3.3 4.9 21.4 ***1/2
    Preferred Trade 4.8 3.7 3.4 2.4 3.1 3.9 21.3 ***1/2
    myTrack 4.0 3.5 3.2 3.6 3.5 3.0 21.2 ***1/2
    MB Trading 4.3 3.6 3.3 2.7 3.5 3.5 21.1 ***1/2
    TD Waterhouse 3.0 3.0 4.6 3.4 3.7 3.1 20.9 ***1/2
    Brown & Co. 2.7 2.5 3.3 2.6 2.6 5.0 17.5 ***
    Brokerage America 1.7 3.5 3.1 3.0 2.6 5.0 17.5 ***
    JB Oxford 3.1 2.5 3.5 2.0 2.7 3.4 17.0 ***
    Vanguard 2.7 3.1 2.8 2.4 3.3 1.4 16.5 **1/2
    Merrill Lynch Direct 2.2 2.7 3.0 3.8 3.0 0.7 16.4 **1/2
    American Express 2.9 3.7 2.3 3.0 1.8 2.2 16.0 **1/2
    Strong Funds 1.4 3.6 2.5 3.1 2.7 2.8 15.7 **
    Firstrade 2.2 2.5 2.6 2.5 2.5 3.8 15.4 **
    Quick & Reilly 2.2 2.4 3.3 3.2 2.4 1.3 15.3 **

     

     

    Standard & Poors:  A good place to start when looking into investment funds --- http://snurl.com/SPfunds 

    Bob Jensen likes Vanguard --- http://www.vanguard.com 

    Consumer Reports subscribers can access an excellent helper site for personal finance --- http://finance.ConsumerReports.org 
    A separate subscription for online access is available that also provides a discount to the hard copy magazine subscription.

    Investments
    Bond funds 1/02 R
    Domestic hybrid funds 8/02 R
    Exchange traded funds update 10/02 R
    Investing in bear market 8/00
    Investing online help 3/00
    Managing your portfolio 3/00
    Mutual-fund families 3/01 R
    Rollover rules 1/00
    Shoring up your 401(k) 3/02
    Short-term bond funds 6/02 R
    Stock mutual funds 3/02 R

    Shopping & spending Better baseball caps 5/01
    Booksellers 1/02 R
    Cell-phone calling plans
    CR Gift Guide 11/01
    Eyeglasses 6/01 R
    Groceries online 9/00
    Long-distance calling plans
    Megastores 7/02 R
    Online auctions 5/01 R
    Online auctions: Sellers 7/01
    Online shopping 11/00 R
    Returns 1/99


    Banking
    Financial privacy 5/01
    New face of banking 6/00 R
    Online banking 2/02 R

     

    Insurance
    Life insurance premiums 12/00
    Life settlements 2/01


    Lifestage transitions
    2nd marriage finances 6/02
    College-loan debt 7/02
    Midlife career changes 9/02
    Raising baby on a budget 10/01
    When a parent moves in 10/02
    Working past age 65 8/02


    Saving
    Budgeting ideas 8/01
    College on credit cards? 7/01
    Electricity meter 1/02
    How to cut phone bills 2/00
    Phone-service wars 3/00
    Prepaid phone cards 2/01
    Saving for college 2/00
    Saving options 9/01

     

    10/7/2002

    Keeping track of your pension
    Employees have seen once-lush 401(k) retirement accounts--already whipped by two years of stock market losses--shrink even more in the summer's market slide. But some 44 million workers have another asset: a defined-benefit pension plan

    Index funds you can trade
    We provide details on exchange-traded mutual funds, and how they might save you money on your year-end income taxes.

    529 college saving plan
    Our expert advice and recommendations for the many families who can benefit from this plan.

    The "crime tax"
    Here, the details on retail theft and how consumers are paying the price.

    Shopping online
    Now that you know what to buy, find the best places to buy it, with our e-Ratings.

    Key

    * indicates a product that is part of our continual-testing program.
    R indicates a Ratings report.
    A indicates an archive Ratings report. Many of the tested models may no longer be available.

    The Consumer Reports home page is at http://www.consumerreports.org 

    A complete index of all reports is available at A to Z index


    The Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) have announced the launch of a new Web site designed to provide information about money managers, financial planners, and other investment advisors. http://www.accountingweb.com/item/59363 

    "The Internet as an Investment Tool," by Sarah Phelan, Journal of Accountancy, August 2001 --- http://www.aicpa.org/pubs/jofa/aug2001/phelan.htm 

    EXECUTIVE SUMMARY
    CPA/FINANCIAL PLANNERS NEED TO BE WEB SAVVY. The Internet makes it possible for CPA/financial planners and individual investors to be notified on-screen when news breaks about a particular stock.

    INVESTORS FOLLOW A STOCK BY WATCHING its price and trading volume and factors such as the P/E ratio and volatility rating compared against the overall market’s. The Web can help do this cheaply, accurately, at any time of day and without consulting a stockbroker.

    AN ELECTRONIC MODEL PORTFOLIO can “test drive” an investment’s behavior. A CPA/financial planner should look for charts offered by these services, including those that compare the stock to a benchmark over time and record the user’s unrealized capital gains.

    THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) protects up to $500,000 of securities (limited to $100,000 for cash) held in a customer’s brokerage account. There is no reason for a CPA, or a CPA’s client, to do business with a broker that does not offer SIPC protection.

    MANY INTERNET BANKS OFFER FREE Web-based calculators, such as those for mortgage interest rates. A Web calculator from a respected site can provide useful ballpark numbers for a mortgage or an easy way to benchmark a price.

    SECURITY IS A MUST FOR ANYONE connecting to the Internet, whether by dial-up modem or broadband connection. Get a good antivirus program—and use it. Encryption is important, too. Look for 128-bit encryption when transmitting confidential data over the Internet.

     

    Cool Tools

    Many of these sites are commercial, but minimal use often is free. The first part of this sidebar lists sites by function.

    Calculators

    Cash flow and credit.

    www.kiplinger.com offers Dr. Tightwad and an eConsumer column.

    www.bankrate.com lets you review your credit report.

    Growth.

    www.smartmoney.com has an excellent compound interest calculator as well as a percent change calculator to measure how much an asset has increased in value.

    Margin.

    www.sec.gov offers a margin calculator.

    Yield.

    www.investinginbonds.com offers a taxable vs. tax-free yield comparison calculator.

    Cars

    www.kiplinger.com offers CarFinder, an interactive feature-by-feature search. Its calculators include “Which is better: a rebate or special dealer financing?” and it has an auto lease vs. purchase comparison tool.

    Model Portfolios

    These are some of the sites that offer model, or “fantasy,” portfolios.

    www.fool.com

    www.kiplinger.com

    www.money.com

    www.morningstar.com

    www.smartmoney.com

    Mortgages

    www.bankrate.com. Calculate a mortgage rate payment and chart trends. The “Monthly Checkup” feature answers the question: “Can you save money on your existing mortgage?”

    www.smartmoney.com has a refinancing calculator and a “Should You Prepay?” worksheet.

    Retirement

    www.morningstar.com has a Center for Retirement.

    www.ssa.gov offers Social Security benefit information.

    Risk Management

    www.sec.gov offers EDGAR: A Quick Tutorial, which shows how to search for information that companies and mutual funds must reveal in their filings with the SEC.

    Risk-tolerance questionnaires can be found at www.fidelity.com, www.moneycentral.com and www.vanguard.com.

    Screen for Advice

    www.moneycentral.com has an Adviser Finder.

    www.sec.gov has a Central Registration Depository database.

    www.validea.com rates analysts and professional stock-pickers.

    Screen for Potential Investments

    www.morningstar.com has the following: Stock Selector, Fund Selector, Stock Compare, Fund Compare.

    www.smartmoney.com offers a watchlist with onscreen alerts and instant quotes (registration required).

    Web Sites with More Useful Information

    www.kiplinger.com has wide-ranging information on investing, managing and spending money, chats with editors, the Boiling Point forum, Dr. Tightwad column, an eConsumer column and more.

    www.morningstar.com has market news, fund picks, stock picks, analyst research and alerts. Paying customers get access to premium features.

    www.schwab.com is designed for worldwide use by Schwab investors. Market news, charts and updates, a learning center and a mortgage center.

    www.sec.gov. The site of the U.S. Securities and Exchange Commission. Information and publications, including “how to” and a Complaint Center. Has a mutual fund cost calculator as well as a tool for comparing mutual funds.

    www.smartmoney.com has quotes, market updates, chat, newsletters, a Stocks to Watch feature, upgrades, downgrades, IPOs.

    www.yahoo.com, which is the granddaddy of Internet portals, offers many resources including business news updates.

    Mutual Fund sites recommended in the Journal of Accountancy, August 2002, Page 25 --- http://www.aicpa.org/pubs/jofa/aug2002/news_web.htm 

    Resources and Reading Materials
    www.mfea.com
    CPAs providing investment planning advice can find information about assessing risk tolerance, the benefits of mutual funds and emerging markets at the Mutual Fund Education Alliance Web site. Practitioners can have clients fill out a personality profile to pinpoint how aggressive, conservative or moderate an investor they are, as well as find definitions in the site’s glossary.

    Get Answers From Experts
    www.brill.com
    Brill’s Mutual Funds Interactive (MFI) Web site offers a free subscription to two newsletters and guidance from experts—such as certified financial planners—at its Answer Desk section. MFI’s site also has current and past articles such as “Fund Managers to Issuers: More Disclosure, Please” and “Taming the Interest Rate Beast.”

    Investment Information for All
    www.invest-faq.com
    Beginner, intermediate and expert investors and their CPA advisers can get free answers to mutual fund questions, as well as read articles about bonds, derivatives, financial planning and trading at this Web site. Users also can subscribe to its e-mail newsletter gratis.

    Guide to Investing
    www.investorguide.com
    This Web site houses a wealth of information on investing and personal finance including articles, links to news and commentary and a snapshot on the performance of the Dow Jones industrial average and the Nasdaq. CPAs can point clients to the University section with information for all levels of investors—from the beginner to the pro. And the site’s word list links to www.investorwords.com (see below) for definitions.

    A Comprehensive Glossary
    www.investorwords.com
    “With over 6,000 definitions and 20,000 links between related terms,” this is one URL investment brokers and financial planners will want to bookmark. Its home page includes three categories: a main glossary, a word of the day that can be e-mailed directly to the user and a recently added terms section to help frequent visitors narrow their queries.

     
    The SEC launched an online margin calculator that helps an investor estimate the likelihood of his or her broker’s issuing a margin call—for insufficient account equity—in the next 30 days, three months or a year 
    (
    www.sec.gov/news/headlines/margincalc.htm ).
     
    There isn't a lot (or anything?) on FAS 133/138 here, but this is a tremendous resource for risk management from a finance perspective --- Risk Management Special Report -- FinanceWise http://www.financewise.com/public/edit/riskm/rmindex.htm 
     
    Yahoo Finance is Bob Jensen's Other Favorite
    A great listing of links on options, derivatives, futures and commodities --- http://www.investingsites.com/options_derivatives.htm
    The SEC's Ten Questions to Ask About Any Investment Opportunity
    Click here to view Bob Jensen's Helpers
    Click here to view Bob Jensen's Links on FAS 133, 138, and IAS 39
              (Accounting for Derivative Instruments and Hedging Activities)
    First Research, Inc. Publishes seven- to fourteen-page targeted Industry Profiles on over 100 industries.
    http://www.accountingweb.com/firstres/index.html

    Advanced Stock Information http://www.stockadvanced.com/ (note that ratios are available)

    Enter a symbol and click "go!" to get the following information: Stock Prices, Options, Stock Splits, Charts, Live Stock Quotes, Stock Performance, Earnings Estimates, Analyst Opinions, Company Performance, Stock Valuation, Broker Reports, Company Profile, Earnings Release Dates, Latest News, Fundamentals, Intraday Charts, Forum Discussions, Technical Charts, Annual Reports, Significant Events, Institutional Ownership, Financial Ratios, Insider Trading, SEC Filings, Financial Statements, Stock Dividends, Competition, Momentum Rating, Management Discussion, Conference Calls, Short Interest, and more.

     
    Yahoo! Business and Economy:Finance and Investment
    Yahoo! Business and Economy:Finance and Investment:Futures and Options
    Yahoo! Business and Economy:Finance and Investment:Investment Models
    Chart Patterns, commodity chart patterns, charting, technical analysis, commodity price chart analysis, futures, options trading
    http://www.ceoexpress.com/
    riskview (Java site that computes Value at Risk, VAR), Derivatives
    RISKWeb
    ISDA Home Page (Financial Instruments Derivatives)
    Advanced Investment Technologies Center (Financial Instrumetns Derivatives)
    Applied Derivatives Trading (Financial Instruments Derivatives)
    Derivatives Research Unincorporated (Don Chance, Financial Instruments Derivatives)
    Ernst & Young LLP - Download Library - SFAS 133 Financial Instruments Derivatives
    Ernst & Young LLP - Download Library - SEC Rules on Financial Instruments Derivatives
    An Introduction to Investment Theory
    Financial Management Education Cases
    Family Money http://www.familymoney.com/
    IPO Express (investing in intial public offerings) http://www.edgar-online.com/ipoexpress

    Some Tools for the Timing of Investments http://www.mirat.com/ 
    dowjones.com - free services from the The Wall Street Journal. http://dowjones.com/
    Financial information and message board service (Raging Bull) http://www.ragingbull.com/

    OffRoad Capital  (advertises that it provides investment deals not available anywhere else) http://www.offroadcapital.com
    Financial Engines, Inc. (William Sharpe Investment Advice)
    INFO SEC Glossary
    Introduction to Options
    Welcome to TermFinance (Glossary of Derivative Fiancial Instruments)
    Layer Eight Interest Rate Derivatives - Finance, Derivatives and Economics Sites
    An Economic Information and Economic Analysis Web Site: The Dismal Scientist (Indices, Statistics)
    Two Thumbs Up: An Excel-based "Movie" (term structure of interest rates)
    ASK DR. RISK [Margrabe / Derivatives / Options / Swaps / Risk Management / Model Risk]
    A Tour Through the Web's Business Sites: Top Sites For Financial, Economic, and Business Information.
    THE DERIVATIVE 'ZINE [Margrabe / Derivatives / Options / Swaps / Risk Management / Model Risk]
    Event Risk Indicator (Suzanne Winegar Project 2 Link)
    OptionSource.Com Home Page (Options Trading Tutorials)
    Evaluation of Value-at-Risk Models Using Historical Data
    Layer Eight Interest Rate Derivatives
    The Derivatives Bookshop : VAR: Understanding and Applying Value-at-Risk
    ABREMA: Basic concepts: audit risk
    ABREMA: Activity Based Risk Evaluation Model of Auditing
    Site Map (finance, glossary, risk, investment)
    The Chicago Board Options Exchange (CBOE) - The world's largest options market!
          Chicago Board Options Exchane Education Tutuorials at
    http://www.cboe.com/education /
    Futures and Options at the Chicago Mercantile Exchange
    The Chicago Board of Trade: World's Largest Futures and Options Exchange
    Market Risk Disclosure FAQ
    Index for ACCT 5341 International Acccounting Theories
    NEWS.COM Investor
    The Ultimate 1998 Guide to MUTUAL FUNDS
    CNCURRENCY.COM, YOUR PERSONAL FINANCE ADVISOR
    Quote.com, Inc.
    Data Broadcasting Corporation Home Page
    Deloitte & Touche Risk Management & Control: Visual Assurance
    InvestorGuide - The Leading Guide to Investing on the Web
    Welcome to RateNet, Your Financial Connection.
    Welcome To The Largest Mortgage Resource Site
    Mortgage 101
    Site Map (finance, glossary, risk, investment)
    BUSINESS RESOURCES
    MoneyMinded Homepage (Investment Help for Women)
    Nightly Business Report
    Disclosure Global Access Home Page
    Personal Finance Web Sites (Extensive List of Links )
    We're the Dolans (Personal Finance)
    Bloomberg PERSONAL
    Bloomberg Online
    StockMaster
    Assemble your NASDAQ stock portfolio and get quotes e-mailed to you.
    OnlineInvestors.com - The First Site Just For Investors Who Trade On The Web
    BUSINESS CYCLE INDICATORS (Economic indicators)
    IMF International Capital Markets 1997--Contents (Online Journal)
    Event Risk Indicator (Suzanne Winegar Project 2 Link)
    The Universal Currency Converter(tm)
    NEWS.COM Investor
    WSRN.com: Research A Company (Accounting Education, Financial News, Fiancial Markets)
    OptionSource.Com Home Page (Options Trading Tutorials)
    Country Briefings (international statistics) from The Economist http://www.economist.com/countries/ 
    Facts and statistics (Fast Facts) --- http://gwu.edu/~gprice/handbook.htm 
    CIA Publications (includes economic statistics)
    CNNfn - the financial network
    DBC Online Quotes
    Deloitte & Touche PeerScape Home Page
    Fidelity
    FINANCE AND INVESTMENTS: WWW VIRTUAL LIBRARY
    GNN Personal Finance Center
    Holt Report Index Page
    http://www.deanwitter.com/
    Intuit Inc.
    iTools! - Directories, Financial Markets, References
    Moody's Investors Service
    Welcome to CAROL (online annual financial reports) 
    The Motley Fool: Finance and Folly -(a very good investing web site)
    NETworth
    New York Stock Exchange Home Page
    Securities Class Action Clearinghouse
    Security APL Quote Server
    StockMaster.com
    Internet Essentials ‘99 Newsletter for the financial professional
    The American Stock Exchange - The Smarter Place to Be
    The Chicago Mercantile Exchange--The Exchange of Ideas
    The Inc. 500 (Fast Growing Companies)
    HomeArts: Money Minded (Investment Services for Woment)
    The Nasdaq Stock Market Home Page - Reload Often
    Yahoo! - Business and Economy:Indices
    Yahoo! - Business and Economy:Markets and Investments
    Yahoo! Quotes

    NationMaster --- http://www.nationmaster.com/index.php 
     
    CIA World FactBook --- https://www.cia.gov/cia/publications/factbook/index.html

    A great resource site for finance, investing, world news, and accounting
    CBS Market Watch (includes a glossary) --- http://cbs.marketwatch.com/news/default.asp?siteid=mkt

    One opinion on the top 10 investment resource sites.
    InvestMove.com --- www.investmove.com 

    Top Ten Financial Portals

         1. Yahoo Finance
         2. MSN MoneyCentral
         3. Quicken.com
         4Wall Street City
         5Inter@ctive Investor
         6Motley Fool
         7Wall Street Research Net
         8Morningstar
         9Stockmaster
       10Silicon Investor

    Yahoo's picks of the top finance web sites --- http://www.zdnet.com/zdsubs/yahoo/content/101most/101finance.html 

    Wall Street Journal

    Home Page
    MONEY & INVESTING UPDATE -- Front Page
    Technology in Education -- Table of Contents
    Wall Street Journal (Personal Technology Column)
    Wall Street Journal Interactive Edition

    A new Wall Street Journal service:

    The Wall Street Journal has made some important changes to its online center for entrepreneurs, formerly known as startup.wsj.com.

    Now called StartupJournal.com, this newly redesigned site offers you an enhanced collection of information that's focused on buying or starting a business or franchise.

    Among the changes you'll see:

    ==Improved Navigation== It's more efficient than ever to find what you're looking for on StartupJournal.com. Our new, subject-based tabs organize information into useful categories such as Columnists, Financing, Technology, Franchising and Ideas. http://StartupJournal.com 

    Advanced Stock Information http://www.stockadvanced.com/ (note that ratios are available)

    Enter a symbol and click "go!" to get the following information: Stock Prices, Options, Stock Splits, Charts, Live Stock Quotes, Stock Performance, Earnings Estimates, Analyst Opinions, Company Performance, Stock Valuation, Broker Reports, Company Profile, Earnings Release Dates, Latest News, Fundamentals, Intraday Charts, Forum Discussions, Technical Charts, Annual Reports, Significant Events, Institutional Ownership, Financial Ratios, Insider Trading, SEC Filings, Financial Statements, Stock Dividends, Competition, Momentum Rating, Management Discussion, Conference Calls, Short Interest, and more.

    eFinancial News http://www.efinancialnews.com/ 

     
    Foreign Currency FX Converter --- http://www.xe.com/ucc/ 
    Live Currency Converter --- http://www.livecurrencyconverter.com/
    Also see http://www.oanda.com/currency/converter/
     
    From the Scout Report

    Global Financial Data [.pdf] http://www.globalfindata.com/ 

    This impressive collection of historical global financial data stretches from the years 1264 to 2000. While most of the actual data must be purchased, this Website does offer several free series, including Stock Markets since 1693, Interest Rates since 1700, and Inflation Rates since 1264. The site also contains a decent-sized collection of research papers written about the Eurodollar and a links page with financial Websites from around the world.

    Links to the Top Five Personal Finance Web Sites:  http://www.tiac.net/users/nhannon/finance_personal.htm

    Also see the CFO Magazine Online  http://www.cfonet.com/

    An interesting personal finance web site (among the thousands available) is at
    http://www.cncurrency.com
    Not much in the way of ratio data at that web site, but you will find a variety of interesting documents and links.

    100 Events That Shaped a Century http://www.thestreet.com/basics/countdown/748433.html  

    The Basics of Business History  http://www.thestreet.com/basics/countdown/748433.html

    Museum of American Finance --- http://www.financialhistory.org/

    Also see the Museum of American Financial History http://www.financialhistory.org/

    Stock Market Data --- http://www.eoddata.com/

    Gold : prices, facts, figures & research --- http://www.galmarley.com/framesets/fs_monetary_history_faqs.htm

    Barron's Rankings of Websites for Investors

    "Despite a tough environment, the best Websites for investors get even better," by Kathy Yakal, Barron's, October 19, Page 1 ---  http://online.wsj.com/barrons/barrons_cover 

    Your Internet investments may have shriveled and died, but investment Websites are more robust than ever. The bursting of the Internet bubble and collapse of online advertising has culled the herd of investment sites. Some surviving sites have added premium services to bring more dollars in, but a surprising number of very good ones remain free. Even in these tough times for all media, the top Websites have been honed and improved, and that's about the best news online investors have had this year.

    Before delving into the particulars, a bit of disclosure: This year for the first time, we ranked two sites operated by our corporate cousins, the Wall Street Journal and SmartMoney. The Journal and Barron's are owned by Dow Jones; SmartMoney is a joint venture between Dow Jones and Hearst. We haven't done so in the past to avoid the appearance of any conflict of interest, but to continue to omit them would make our ranking of the Best Websites for Investors a misnomer. If this decision brings the wrath of self-important journalism reviews upon our heads, so be it. We think it best serves you, the readers.

    Back to the rankings. We use the same system as the Electronic Investor column, grading based sites only on areas applicable to them. For instance, judging a charting site by its news and analysis would be like looking at a relief pitcher's batting average. In that case, we gave them a Not Applicable, and averaged the relevant scores out. All of the winners' Web addresses are listed in the accompanying tables.

    Here, then, is the Best of the Web for 2002.

    BONDS

    Yahoo Bond Center

    Briefing.com (Honorable Mention)

    With stocks set to rack up their third losing year, and cash equivalents paying yields not visible to the naked eye, investors rediscovered bonds this year. When looking at bond sites, we sought educational information and commentary, current rates, and effective tools.

    Yahoo Bond Center was our overall favorite. It had the clearest opening screen, showing at a glance what's offered. You can get the latest composite rates on U.S. Treasury, municipal, and corporate bonds. News and analysis are featured. There also are numerous tools, including a bond screener and calculators. Links to Yahoo's bond message boards help you learn what other people are thinking and post ideas of your own. An educational section pulls informative articles from other top sites, and a glossary also helps you learn.

    The supplier of Yahoo's bond commentary came from our Honorable Mention in this category, Briefing.com. To get most of the skinny on bonds, you'll have to subscribe at Briefing.com's Professional level, at $25 a month, though the site's free services offers bond coverage three times a day. Professional subscribers get live bond coverage and briefs as news breaks, as well as bond quotes. Tools are in short supply at this site, as are educational tools, but Briefing.com's live commentary is worth it for the serious follower of bonds.

    CHAT AND MESSAGE BOARDS

    Silicon Investor

    Some good advice and access to breaking news can come from fellow investors, on chat and message boards. The problem is knowing how credible the source is, which is why we recommend you never take something you read on a board as gospel. But these virtual conversations can serve as springboards to your own further research.

    Message boards are generally more reliable than live chat, and also contain more serious content with less inane chatter. Our favorite once again is one of the oldest, Silicon Investor, which still hosts some of the most serious investment conversations. The site's opening Stocktalk page displays a list of subject categories; click on one and you can drill down to find related discussion threads. You can also get a list of new subjects and hot subjects, and view messages in threads and from people you designate. And of course, you can search using your own keywords.

    We didn't pick a favorite chat room, since no one excels in all areas, though there are several that we'd recommend. AvidTrader aimed at serious, active traders, hosts a chat room as a part of its package of investment research tools ($135 per quarter for each of two channels; 50% off on the second if you buy both). Another site that attracts intelligent, in-depth discussion is Financial Chat's Active Trader room (www.financialchat.com), which is free.

    COMMENTARY

    TheStreet.com (tie)

    Wall Street Journal (tie)

    Briefing.com (Honorable Mention)

    CBS MarketWatch (Honorable Mention)

    What do all the numbers and news mean? We gave high marks to sites with regularly updated commentary from folks who have been around the block a few times.

    Two sites got top scores for different reasons: The Street.com and the Wall Street Journal both have been around practically since the Web opened its doors, and both sites scored a perfect four stars in this category.

    TheStreet.com posts numerous analytical pieces every day from a large stable of professional traders and journalists, including the ubiquitous James Cramer. The site has three subscription levels. A smattering of news and analysis and a palette of investing tools are available free. A RealMoney subscription ($19.95 per month or $199.95 annually, 30 days free) packs in more real-time commentary and a columnist message board. RealMoney Pro, geared towards professionals, is $250 monthly or $2,200 annually, with two weeks free.

    The Wall Street Journal has its own impressive slate of contributors who weigh in on a variety of financial and market topics. Your best bet is to click the Columnists link on the opening page to see who's covering what beat. For $79 ($39 for Journal or Barron's print subscribers), you get a year's access to the Wall Street Journal and Barron's Online.

    Briefing.com isn't as slick, but its writers and analysts break in frequently throughout the day with terse comments to market events, including those in the credit and currency markets. Some live coverage is free, and the $9.95 a month subscription level provides more commentary and news, with the $25 a month level best for the pro.

    CBS MarketWatch has the advantage of being free, but it can't quite match the depth of commentary of our two winners. Daily specialty columns cover topics like the Internet, market analysis, and the tech sector.

    COMPANY RESEARCH

    Multex Investor

    Hoover's (Honorable Mention)

    If more investors (and analysts) slogged through dry reports and company fundamentals, we wouldn't be in the fix we're in. We looked for sites that provided easy access to the nuts-and-bolts numbers investors need with a bucket load of reports available from a variety of sources, free and for fees.

    The winner again is Multex Investor. Aside from pop-up ads at every turn, we had few complaints. Enter a ticker symbol or company name, and links take you to myriad pieces of the company's picture, ranging from expanded quotes and charts to earnings estimates to income statement/balance sheet/cash flow. Many other mini-reports are available, on topics such as insider trading, institutional ownership, and significant developments. Additional research reports by major firms are also available, mostly for a price.

    Hoover's is a close second. You can get some company information free here, including abbreviated financials, annual reports, SEC filings and company press releases. Reports can be purchased. More in-depth company information is available by subscription. Hoover's Lite costs $49.95 a month or $399 a year, and Professional subscriptions, which include things like multi-user access, downloadable financials, contact information, and much more company information begin at $1,995 a year.

    For crucial Securities and Exchange Commission filings, the best place to go is still EDGAR Online. The $14.95 monthly fee includes real-time access to current filings, and 25 filings a month. Additional documents are available at $2 each. If you need basic fundamentals in real-time, there are many places to go. We like Money.net. Its streaming real-time quote system ($14.95 a month) lets you track up to 500 stocks simultaneously, with 38 data columns.

    ECONOMIC DATA

    Economy.com

    Economist.com (Honorable Mention)

    We looked at sites that provided access to raw data, general economic news worldwide, and commentary to interpret it all.

    The winner again is the network of sites located at www.economy.com. This site and its subsidiaries provide a massive amount of information. But it doesn't all come cheap; many reports cost hundreds of dollars. The Dismal Scientist (www.dismal.com), one of its subsites, is more affordable --$16.95 a month or $159 a year. It provides news, commentary, data, and tools covering over 100 economic indicators in 15 countries. Its FreeLunch site lets you search for over 900,000 economic and financial data series, gratis.

    Honorable mention here goes to the Economist's Website. Much of the site's national and international content is free; premium content costs $19.95 a month or $69 a year. Premium subscribers get access to The Economist before it hits the newsstands, and to archives going back to 1997.

    EDUCATION

    The Motley Fool

    SIA Investor (Honorable Mention)

    Two sites rose to the top. The Motley Fool, which has focused on educating investors from the beginning of its long life on the Web, is our overall favorite. All the educational information and tools are easily accessible from one section of this supersite, the Fool's School. Two core sections offer most of the site's teachings: the founders' 13 steps to investing, and a guide to several elements of market education.

    SIA Investor, a service of the Securities Industry Association, takes advantage of the long-time involvement of many experts. Special sections cover specific topics like managing your retirement nest egg. A dictionary of financial terms and tools and other interactive features make this site a good starting point for new investors, as well as more seasoned ones.

    Two other sites are worth checking out. The American Association of Individual Investors, which requires a subscription to get access to all of its editorial content ($49, or $79 for the enhanced membership), offers publications as well as online tutorials covering issues like mutual funds, stocks and portfolio management. The SEC site has a haven for new and seasoned investors (www.sec.gov/investor.shtml). Rather than a primer on investing basics, this subsite provides education on how to protect yourself as an investor.

    FINANCIAL NEWS

    Wall Street Journal

    CBS MarketWatch (Honorable Mention)

    Yahoo Finance (Honorable Mention)

    Almost every investment Website offers financial news. The more the better, but we also looked at the quality of that reporting.

    The Wall Street Journal does the best job overall of covering U.S. and global financial events in depth. Links on the opening page take you to news by region and topic. Much of the financial news can be found under the Markets and Your Money links.

    CBS MarketWatch also does a great job of posting voluminous financial news quickly and accessibly and garners an Honorable Mention this year. The site has its own reporting staff, so stories sometimes fly fast and furiously on turbulent days. You can also browse through stories provided by major news services and recent press releases. Speed and the volume of stories set CBS MarketWatch apart.

    We also gave Honorable Mention to Yahoo Finance for pulling together some of the best financial news content on the Web and making it easy to find. Click the Financial News link on the opening page for headlines from AP, CBS MarketWatch, Financial Times, and Investor's Business Daily.

    You can also go to the horse's mouth -- PR Newswire and Business Wire --for press releases as they're available.

    GLOBAL MARKETS

    Financial Times (tie)

    Wall Street Journal (tie)

    The Financial Times was recently awarded four stars by the Electronic Investor, and it shares top honors with the Wall Street Journal. The site is beautifully designed, and it's easy to find what you're looking for at a glance. Major news is displayed up top, followed by links to commentary and links to additional world market news. Most content is free, but premium subscriptions give you access to exclusive news and commentary, industry-specific analysis and reports, in-depth data on more than 18,000 listed companies, a world press monitor, and more (two subscription levels: $95 and $225 a year).

    Not surprisingly, the Wall Street Journal scored equally well. Links on the opening page take you to a region's page, like the Americas, Europe, and Asia. Sublinks on each region's page take you to the news page for each country covered within that region. Market data is available for countries covered.

    MUTUAL FUNDS

    Morningstar

    You'll find lots of help with mutual funds on the Web. Many general-interest sites have sections devoted to funds, and many of them license information from our four-star winner, Morningstar. Its QuickTake reports are about the most effective use of space we've seen on the Web; you get a one-page rundown on each mutual fund. More in-depth research is available, including analyst reports and Morningstar ratings. Tools are plentiful. A premium membership, which includes features like portfolio optimization, reports, and alerts, costs $11.95 a month or $109 a year.

    SmartMoney has some unusual tools to help you get a handle on the mutual fund market. The Fund Map 1000 provides a graphical representation of the 1,000 most important mutual funds, color-coded to indicate fund performance. And for easy, accessible fund research, check out CNBC on MSN Money or Quicken.com.

    PORTFOLIO TRACKERS

    CNBC on MSN Money

    SmartMoney (Honorable Mention)

    Even if you're using a desktop portfolio - tracking system, you probably want to have a home for your portfolio on the Web, for quick updates during the day. In this category, we looked for sites that gave us the most options and information.

    CNBC on MSN Money again tops this category. Its portfolio tracker's clean display makes it easy to find the tools you need. You can enter your holdings on a simple screen, or import data from desktop Quicken or Money, the Yahoo Website, or some brokers. MSN's portfolio tracker really shines when it comes to setting your own criteria. Click on a security and drop down the Analysis menu, and you have easy access to pertinent data, like a snapshot, historical chart, recent news, and analyst information.

    A close second was SmartMoney's portfolio tracker. Like MSN's, it's heavy on analysis tools. You can see an overview and performance chart, view a visual map and analysis using several factors, and check out your portfolio's allocation.

    SCREENING TOOLS

    CNBC on MSN Money

    SmartMoney (tie)

    Wall Street City (Honorable Mention)

    A staple of many major and minor investment Websites, securities screeners let you select from numerous parameters or use prefab screens. As always, too, we considered the way the tools and results were presented.

    CNBC on MSN Money was one of our top two here. The stock screener lets you build your own searches, selecting from many dozens of variables. The resulting list contains links to more information about each company. Mutual fund screeners work much the same, only with fewer building tools.

    SmartMoney's securities screeners work similarly, letting you select from variables in categories like Price/Price Changes/Volume, Ownership, Historical Growth, and Margins, and assign operators and values. Several prefab screens including Bottom Fishing, Insider Buying, and Profitability do some of the work for you, and a heat map displays the 1000 least risky stocks.

    Next, by a nose, is Wall Street City. Screening variables are quite versatile and allow for very complex searches, and prefab screens give you insightful looks into related subgroups of the market for $9.95 a month.

    Also worth a look:b4utrade offers standard screening tools, but also lets you sift through very time-sensitive parameters, like stocks on the move today. Cost: $25 a month. Check out Stockworm, too, one of the most skillfully designed sites we've ever seen. Part of its $15 per month subscriber fee pays for access to several screening tools ranging from very simple to moderately complex.

    SUPERSITES

    Yahoo Finance

    CNBC on MSN Money (Honorable Mention)

    SmartMoney (Honorable Mention)

    Last year, we expanded beyond just ranking supersites on the theory you could readily bookmark where you wanted to go for bonds, screening, news and so forth. Still, we look at omnibus sites that aim to provide all your investment information needs.

    This year, Yahoo Finance takes the crown as the best overall site, moving ahead of MSN-related sites for the first time since we began ranking them. Yahoo's text-based interface makes navigation simple and fast. The opening page provides a brief market update and easy access to all of the site's content. Links take you to more in-depth market updates and news from respected outlets like Briefing.com, Business Week and Financial Times. The Stock Research link takes you to an exceptional collection of research tools covering stocks, mutual funds, options and bonds. Tools include screeners and a portfolio, with the option of real-time streaming data ($9.95 a month). International news is also available as are message boards and chat rooms. You may never need to go elsewhere.

    CNBC on MSN Money gets an Honorable Mention this year. The site's slick, easily navigable interface helps simplify your investing chores. With the top screener and portfolio tracker, it also excels at original editorial content and stock ratings.

    SmartMoney also receives an Honorable Mention. As with MSN Money, tools like its portfolio tracker and screeners help move it ahead of the pack. Its market maps give you a little different perspective on what's happening. Bond coverage is exceptional, as is its educational content.

    When we only ranked supersites, several sites earned top honors, and remain excellent places to retrieve your market information though they don't excel in one particular area. AOL Personal Finance (on the proprietary service) and Quicken.com, for example, still rank high in all categories. Quicken has even added integrated brokerage services to its site this year. CNNMoney (money.cnn.com) is a great place for breaking and in-depth news, as well as investor tools and research. Lycos Finance (finance.lycos.com) just added streaming live charts, with a streaming portfolio and news, to its investment offerings. The Thomson Financial Network (www.thomsonfn.com) offers an effective blend of market news and research tools.

    Accounting News, Blogs, Tweets, etc. --- http://faculty.trinity.edu/rjensen/AccountingNews.htm

    TECH NEWS

    C|NET News

    Wall Street Journal (Honorable Mention)

    Where once we looked for tech stocks that would double and triple, now we're searching for survivors.

    C|NET News is still our favorite. The site is good at breaking technology business news, as well as covering events in the technology sector that may eventually affect the market. And C|NET News gathers top tech stories from other outlets on the Web and provides links.

    Long before the Web, the Wall Street Journal covered tech news thoroughly and continues to do so. In-depth special reports have dealt recently with stories like AOL's shakeup and WorldCom's fall.

    Among other sites, The San Jose Mercury News (www.siliconvalley.com), reports on local Silicon Valley news, as well as the rest of the tech industry. The New York Times (www.nytimes.com) is also a good place to catch up on news and analysis. And IDG.net is a compendium of content pulled from IDG's high-tech publications.

    TECHNICAL ANALYSIS

    Prophet.net

    ClearStation (Honorable Mention)

    The Web is rife with chart-making tools. Many sites provide simple chart builders as a part of their research packages, but to do serious technical analysis, you'll have to visit a site that specializes in providing sophisticated tools for a variety of indicators.

    We selected Prophet.net, formerly Prophet Finance, as our top dog this year. The new site is easier to navigate than before, and focuses on creating a variety of charts. Several specialized charts are available, offering up to 130 indicators and 40 years of historical data. Three subscription levels are available: $9.95 a month for delayed market data, $19.95 a month for real-time charts, and $34.95 adds futures and options data in addition to other tools for advanced traders. Limited tools are available free.

    ClearStation gets our nod for Honorable Mention this year. It takes a bit of study to understand this site's methodology. Once you do, it's simple. The site takes a three-pronged approach to investment research, combining technical analysis, fundamentals, and community sharing; one view on this site combines all three on the same page, which is a great snapshot. All free.

    Other sites handle technical analysis admirably. One of Decision Point's claims to fame is that it provides investors with pre-built charts and chart books for dozens of indexes and market sectors and indicators, in addition to other specialized charts. And BigCharts still is one of the best places to go to build your own quick charts.

    A section on the ratings criteria is not included in the above quotation.



    "Social Security: What’s the Magic Age? When to start collecting your benefits," by Kathryn Garnett, Journal of Accountancy, July 2006 --- http://www.aicpa.org/pubs/jofa/jul2006/garnett.htm

    In determining the age at which a worker should apply for Social Security benefits, consideration should be given to current and expected future sources of income, age of beneficiary and spouse, health issues that could affect longevity and whether the beneficiary will continue to work while receiving benefits.

    There is no “one-size-fits-all” answer for deciding when Social Security benefits should be started. Many workers will benefit by beginning to receive benefits at age 62 due to their circumstances and needs. For others, waiting until full retirement age, or even later, will provide higher annual income in the years ahead when their expenses might outpace their resources.

    How long does it take to break even in the game of taking benefits at early vs. normal retirement age? If two retirees are now 65 and one started collecting Social Security benefits at age 62 and the other starts now, they will collect the same total amount of money when they are 77 years old.

    It’s important to do preretirement calculations at least every three years, to take into account any changing circumstances and/or changes in the rules as they apply to Social Security benefits, pensions and investment savings.


    From Smart Stops on the Web, Journal of Accountancy, July 2006 --- http://www.aicpa.org/pubs/jofa/jul2006/news_web.htm

    RETIREMENT PLANNING SITES
    Green Golden Years
    http://retireplan.about.com

    CPA/PFSs can find retirement planning advice here, including information on rolling over qualified plans, an IRA fact sheet and five reasons to open a 401(k) plan. Take a quiz to see how much you know about the basics of retirement planning, calculate 401(k) plan savings or sign up for a free newsletter.

    Wealth of Resources
    www.fpanet.org

    Free registration at the Financial Planning Association Web site gets planners access to a calculator that can figure the worth of your client’s 401(k) at retirement. Find checklists on the documentation you should ask clients to supply to begin working with them and questions they may ask about your qualifications. Take an investment fraud awareness quiz or research what to do with your retirement plan if you lose your job.

    Ready to Retire?
    www.theretirementpros.com

    Read detailed Qs&As on retirement planning in the Ask the Experts section at this e-stop to find out whether your clients are set for their futures. Topics include annuities, general investing, Medicaid and Social Security. Access calculators to figure out how much savings your clients will need in order to quit working. Compare taxable and tax-free investment returns and inflation’s impact on savings, get the free Primer on Annuities report or register for free Webinars and the Safe Money Advisory newsletter.

    Older and WISER
    www.wiser.heinz.org

    The Women’s Institute for a Secure Retirement (WISER) Web site offers five things women need to do for retirement, as well as five reasons retirement is a challenge for female workers. You can find 10 ways baby boomer women can avoid retirement poverty, read up on issues related to retirement plans, such as divorce and widowhood, or see how well you do on a pension checklist.

    Retirement Resources
    www.wealthygeek.com

    Don’t let the tongue-in-cheek Web address fool you: CPAs looking for pertinent information on retirement planning for themselves and their clients will find it here. Links take users to Q&A discussions on factors affecting 401(k) plans, such as active vs. passive plan management and when payments kick in and tips on how to manage investment losses.


    Compare Alternative Credit Card Deals

    December 16, 2008 message from Ashley Turner [ashleyturns@gmail.com]

    Hi Bob!

    I stumbled upon your site looking for finance resources--I recently graduated college and am just starting to stand on my own feet financially. This is also my first year that I'll be paying taxes, so all your IRS info was especially appreciated! I actually wanted to suggest a site that your readers might be helpful: I've been consulting bankaholic.com quite a bit, and I've found their information to be quite good. I've read their section on comparing credit cards over and over again! Just a thought!

    Take care,
    Ashley T
    .

    Bankaholic.com --- http://www.bankaholic.com/

    Bob Jensen's threads on the dirty secrets of credit card companies are at http://faculty.trinity.edu/rjensen/FraudReporting.htm#FICO

     


    Gambling and casinos

    Intertops Home Page (Gambline, Austria)

    Glossaries in Business and Finance

    Accounting, Finance and Business Glossaries  

    Center for Financial Research & Analysis, Inc.

    CFRA, Inc. Launches Free On-Line Service for Academic Community

    Rockville, MD - August 1 - The Center for Financial Research & Analysis (CFRA, Inc.), a leading provider of independent research to over 2,000 institutional investors, will now offer an academic version of its product to professors and their students. Since there is no cost for this service, its use is restricted for research and teaching purposes.

    What's included with the Academic Version?

    1. Access to all educational pieces in our database. 2. Access to selected company-specific reports that focus on quality of earnings issues 3. Weekly e-mail notification of new companies added to the database

    Who qualifies for this service and how can you sign up?

    All professors teaching courses in financial accounting, auditing, and finance qualify. To sign up, click on the URL http://www.cfraonline.com  and register. Then sign and fax the agreement to (301) 984 8617. Once activated, you will have access to the Academic Version of CFRA's database.

    About CFRA

    CFRA has become known internationally for its pioneering research ferreting out companies with operational problems that use unusual accounting practices to camouflage such practices. Founded in 1994 by Dr. Howard M. Schilit following a 20 year career as an accounting professor (author of FINANCIAL SHENANIGANS: How to Detect Accounting Gimmicks and Fraud in Financial Reports) http://www.cfraonline.com/publications/publications.jsp#FinancialShenanigans  CFRA provides a daily on-line news wire of financial analysis and a database on over 900 companies. Its mission is to warn investors and creditors about companies experiencing operational problems and particularly those that employ unusual or aggressive accounting practices to camouflage such problems.

    Howard Schilit
     http://www.cfraonline.com  
    301-984-1001 ext. 105

    Indices and News (Economic and  Social Statistics)


    Everyone is entitled to their own opinion, but not their own facts.

    Senator Daniel Patrick Moynihan --- FactCheck.org --- http://www.factcheck.org/

    Data.gov (a place to start for downloading government data) --- https://www.data.gov
     

    National Center for Education Statistics --- http://nces.ed.gov/

    Public.Resource.Org --- http://public.resource.org/

    Our World in Data (many graphics and links to databases) --- https://ourworldindata.org

    Health Statistics ---  http://faculty.trinity.edu/rjensen/Health.htm#Introduction

    Fact Sheet About USA Schools in 2018 ---
    https://www.edweek.org/ew/issues/education-statistics/index.html?cmp=eml-enl-eu-news1&M=58712887&U=2290378&UUID=b16c6f948f297f77432f990d4411617f

     

    World Wealth & Income Database --- http://wid.world/

    OECD Health Statistics 2016 --- http://www.oecd.org/els/health-systems/health-data.htm

    Facts and statistics (Fast Facts) --- http://gwu.edu/~gprice/handbook.htm

    Bob Jensen's World Library --- http://faculty.trinity.edu/rjensen/Bookbob2.htm

    Data Africa --- https://dataafrica.io/

    Bob Jensen's threads on medicine ---
    http://faculty.trinity.edu/rjensen/bookbob2-Part2.htm#Medicine

    World Health Organization: World Health Statistics 2015 --- http://www.who.int/gho/publications/world_health_statistics/2015/en/

    Global Open Data Index (database for governments across the globe) --- https://index.okfn.org

    Updates from WebMD --- http://www.webmd.com/

    Global Open Data Index (international government data) --- http://index.okfn.org

    National Crash Analysis Center --- http://www.ncac.gwu.edu

    The Magazine of Early American Datasets --- http://repository.upenn.edu/mead

    Crime in the United States: 2013 --- https://www.fbi.gov/about-us/cjis/ucr/crime-in-the-u.s/2013/crime-in-the-u.s.-2013

    Crime Solutions --- http://www.crimesolutions.gov/

    County Populations (and how they changed in the USA over time) --- http://creatingdata.us/testing/county_populations/

    Demographics of Inequality in the USA --- http://www.ssa.gov/policy/docs/ssb/v64n4/v64n4p1.html
    Somewhat dated but still revealing in terms of racial disparities
    Racial and Ethnic Differences in Wealth and Asset Choices
    Sharmila Choudhury
    Social Security Bulletin, Vol. 64 No. 4, 2001/2002

    Quandl:  over 8 million demographic, economic, and financial datasets from 100s of global sources ---
    http://www.quandl.com/

    Jim Martin's listing of economic indicators on MAAW ---
    http://maaw.info/EconomicIndicators.htm

    From Mike Kearl
    Need to find out what a dollar in 1917 is worth in 2007? Examine postwar inflation rates in transportation rates in the South? Take advantage of the U.S. Bureau of Labor Statistics Consumer Price Indices or EH.NET's "How Much Is That" websites.    (For British conversions from 1264 to 2002, click here.) Speaking of conversions, there are 8,100 conversions and calculators at Online Conversion.com--"Convert just about Anything to Anything else."
    More data links --- http://www.trinity.edu/mkearl/data.html

    From EDGAR Online
    FREE access to the latest ANNUAL REPORTS and PROSPECTUSES from hundreds of publicly traded companies and funds.

    FREE access to ANNUAL REPORTS in XBRL --- http://faculty.trinity.edu/rjensen/XBRLandOLAP.htm#TimelineXBRL
    From EDGAR Online --- http://www.tryxbrl.org/

    Tax Foundation Facts & Figures (Free) ---
    http://taxfoundation.org/files/ff2012.pdf

    Career Guide to Industries -- Bureau of Labor Statistics --- http://www.bls.gov/oco/cg/
    Accountants and Auditors --- http://www.bls.gov/oco/ocos001.htm

    World Clock and World Facts --- http://www.poodwaddle.com/worldclock.swf

    Smithsonian Research Online --- http://research.si.edu/
     

    Prologue Magazine (USA Government Records) --- https://www.archives.gov/publications/prologue/

    CDC Blogs --- http://blogs.cdc.gov/

    Finding and Using Health Statistics --- http://www.nlm.nih.gov/nichsr/usestats/index.htm

    Beyond the Numbers (from the Bureau of Labor Statistics) --- http://www.bls.gov/opub/btn/

    Gender Equality Data and Statistics --- http://datatopics.worldbank.org/gender/

    LIS Cross-National Data Center in Luxemourg --- http://www.lisdatacenter.org

     
    Free online economics, finance, accounting, and statistics books --- http://faculty.trinity.edu/rjensen/ElectronicLiterature.htm#Textbooks

    Foreign Currency FX Converter --- http://www.xe.com/ucc/ 
    Live Currency Converter --- http://www.livecurrencyconverter.com/

    Federal Reserve Bank of New York: Data and Indicators --- http://www.newyorkfed.org/research/data_indicators/

    Bob Jensen's threads on economic statistics ---
    http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics

    Housing: Spotlight on Statistics --- http://www.bls.gov/spotlight/2014/housing/home.htm

    U.S. Energy --- http://www.eia.gov/state/?sid=US

    OECD Factbook eXplorer --- http://stats.oecd.org/oecdfactbook/

    United Nations Economic Commission for Europe: Statistical Database --- http://w3.unece.org/pxweb/Dialog/

    Money Matters (international economic data) ---  http://www.imf.org/external/np/exr/center/mm/eng/mm_cc_01.htm

    Carnegie Foundation for the Advancement of Teaching: Statway [education statistics] --- http://www.carnegiefoundation.org/statway

    EconStats --- http://www.econstats.com/index.htm

    Federal Revenue and Spending Book of Charts (Great Charts on Bad Budgeting) --- http://www.heritage.org/research/features/BudgetChartBook/index.html

    World Health Organization: Health Economics --- http://www.who.int/topics/health_economics/en/

    OECD Factblog --- https://community.oecd.org/community/factblog?view=overview

    OECD Factbook eXplorer --- http://stats.oecd.org/oecdfactbook/

    Education Today: The OECD Perspective ---
    http://www.oecd.org/document/57/0,3343,en_2649_33723_42440761_1_1_1_1,00.html

    Public.Resource.Org --- http://public.resource.org/

    Bureau of Land Management: Public Land Statistics --- http://www.blm.gov/public_land_statistics/index.htm 

    Economic Indicators --- http://www.gpoaccess.gov/indicators/

    HUD User [Housing Data] --- http://www.huduser.org/portal/index.html

    Education statistics --- http://faculty.trinity.edu/rjensen/Bookbob2.htm#050421Statistics

    Global Education Digest 2007 --- http://www.uis.unesco.org/ev.php?ID=7002_201&ID2=DO_TOPIC

    Global Health Reporting --- http://globalhealthreporting.org/

    Governing Sourcebook --- http://sourcebook.governing.com/ 

    Marginal Tax Rates --- http://www.econlib.org/library/Enc/MarginalTaxRates.html

    Sourcebook of Criminal Justice Statistics Online --- http://www.albany.edu/sourcebook/

    National Criminal Justice Reference Service --- http://www.ncjrs.gov/

    Getting Current: Recent Demographic Trends in Metropolitan America --- Click Here
    http://www.brookings.edu/~/media/Files/rc/reports/2009/03_metro_demographic_trends/03_metro_demographic_trends.pdf

    Poverty rates in the U.S. are much lower since 1960 --- http://sorrel.humboldt.edu/~economic/econ104/poverty/
    And in the U.S., the poverty standard of living on average would be considered luxury in most other parts of the world.

    EUROPA: Key facts and figures about Europe and the Europeans --- http://europa.eu/abc/keyfigures/index_en.htm

    Not All Measures of GDP Are Created Equal ---
    http://davegiles.blogspot.com/2016/12/not-all-measureds-of-gdp-are-created.html

    Immigration Since 1840 Social studies dp.la/browse-by-topic/immigration-since-1840 ---
    https://dp.la/browse-by-topic/immigration-since-1840

    Small Business Administration information services guides
    Business.gov --- http://www.business.gov/
    Bob Jensen's small business helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness

    The Google Stock Screener (sort of nice as online screeners go) --- Click Here

    UNdata --- http://data.un.org/

    Some links I carry permanently on my homepage:

    World Clock --- http://www.peterussell.com/Odds/WorldClock.php
    Facts about the earth in real time --- http://www.worldometers.info/

    Interesting Online Clock and Calendar --- http://home.tiscali.nl/annejan/swf/timeline.swf
    Time by Time Zones --- http://timeticker.com/
    Projected Population Growth (it's out of control) --- http://geography.about.com/od/obtainpopulationdata/a/worldpopulation.htm
             Also see http://users.rcn.com/jkimball.ma.ultranet/BiologyPages/P/Populations.html
    Projected U.S. Population Growth --- http://www.carryingcapacity.org/projections75.html
    Real time meter of the U.S. cost of the war in Iraq --- http://www.costofwar.com/ 
    Sure wish there'd be a little good news today.

     
    Enter you zip code to get Census Bureau comparisons --- http://zipskinny.com/
     
    FirstGov --- http://www.fedworld.gov/firstgov.html
     

    EUROPA: Key facts and figures about Europe and the Europeans --- http://europa.eu/abc/keyfigures/index_en.htm

    Bob Jensen's links to social science tutorials --- http://faculty.trinity.edu/rjensen/Bookbob2.htm#Social

    AgeSource/AgeStats Worldwide --- http://www.aarpinternational.org/database/

    U.S. Department of Labor's Bureau of Labor Statistics --- http://www.bls.gov/ 
     
    CIA: The World Factbook 2005 http://www.cia.gov/cia/publications/factbook/index.html

    Immigration by the Numbers (Video) ---
    http://video.google.com/videoplay?docid=4094926727128068265&amp;pr=goog-sl


    U.S. Census Bureau: Longitudinal Employer-Household Dynamics --- http://lehd.did.census.gov/led/index.html
    U.S. Census Bureau: Random Samplings --- http://blogs.census.gov/
     
    Bob Jensen's bookmarks for encyclopedias etc. are at http://faculty.trinity.edu/rjensen/bookbob3.htm#Dictionaries
     
    Management Accounting Information Center --- http://www.informationforaccountants.com/econstatsites.html
     
    The Deal:  A top source for current financial news ---
    http://www.thedeal.com/NASApp/cs/CS?pagename=Home&c=Page&cid=1011714706980
     
    Free Citizen Information Center --- http://www.pueblo.gsa.gov/
    This site has a lot of consumer information and steers you through government bureaucracy
     
    University of Alaska Anchorage Institute of Social and Economic Research --- http://www.iser.uaa.alaska.edu/ 
     
    Chronicle of Higher Education's 2008-2009 Almanac ---
    http://chronicle.com/free/almanac/2008/?utm_source=at&utm_medium=en
    Bob Jensen's threads on higher education controversies --- http://faculty.trinity.edu/rjensen/HigherEdControversies.htm
     

    "Government posting wealth of data to Internet," by Pete Yost, The Washington Post, January 22, 2010 ---
    http://www.washingtonpost.com/wp-dyn/content/article/2010/01/22/AR2010012200768.html?wpisrc=nl_pmtech

    The Obama administration on Friday is posting to the Internet a wealth of government data from all Cabinet-level departments, on topics ranging from child car seats to Medicare services.

    The mountain of newly available information comes a year and a day after President Barack Obama promised on his first full day on the job an open, transparent government.

    Under a Dec. 8 White House directive, each department must post online at least three collections of "high-value" government data that never have been previously disclosed.

    The Transportation Department will post ratings for 2,400 lines of tires for consumer safety based on tire tread wear, traction performance and temperature resistance. The Labor Department will release the names of 80,000 workplaces where injuries and illness have occurred over the past 10 years.

    The Medicare database has previously been available for a fee of $100 on CD ROM. Under the Obama initiative, it can be downloaded free, providing detailed breakdowns of payments for Medicare services. The Medicare data will be sortable by the type of medical service provided.

    A National Highway Traffic Safety Administration database rates car seats for ease of use, evaluating the simplicity of instruction sheets, labels, vehicle installation features and securing the child.

    "We're democratizing data," White House Chief Information Officer Vivek Kundra said Thursday in an interview.

    Open government groups are supportive.

    "There's recognition that public equals online," said Ellen Miller, executive director at Sunlight Foundation, a nonprofit group focusing on the use of technology for greater government transparency.

    Miller said the effort represents "a sea change in government's attitude," with newfound support for the idea that government data belongs in the hands of citizens instead of locked away in the basement of a federal agency.

    All the new data collections will be added to the government's Web site, data.gov.

    Required to release the three new data sets are the departments of State, Treasury, Defense, Justice, Interior, Agriculture, Commerce, Labor, Health and Human Services, Housing and Urban Development, Transportation, Energy, Education, Veterans Affairs, Homeland Security and the Environmental Protection Agency, the offices of the U.S. Trade Representative and the U.S. ambassador to the United Nations and the Council of Economic Advisers.

    ---  

    The directive ---:http://www.whitehouse.gov/omb/assets/memoranda-2010/m10-06.pdf 

    Government's Web site --- http://www.data.gov/ 

    Data Sets --- http://www.data.gov/ogd
    This included some data sets from the SEC

    Jensen Comment
    I think that many of our courses do not adequately train students to use government Web sites in general. The U.S. Government has done a magnificent job for many years providing a wealth of data. How many business school graduates know how to use the Department of Commerce Website? The IRS tremendous Website, the SEC enormous Website (beyond EDGAR), etc?

    When searching, how often do we click for Google or Wikipedia when the best place to start might be a Government Website or the UN Website.

    UNdata --- http://data.un.org/
    Other data --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics

     
    Economic Indicators --- http://www.economicindicators.gov/
     
    Pew Internet: Online Shopping Report --- http://www.pewinternet.org/pdfs/PIP_Online Shopping.pdf
     
    Economic Reviews --- http://www.cepr.net/
     
    Brookings Institute --- http://www.brookings.org/
     
    Annual Index of Economic Freedom --- http://www.heritage.org/index/
     
    Bureau of Justice Statistics --- http://ojp.usdoj.gov/bjs/welcome.html 
     
    Eurostat --- http://epp.eurostat.ec.europa.eu/
     
    The knowledge economy of Europe --- http://www.theworkfoundation.com/Assets/PDFs/KE_Europe.pdf

    States in the U.S. Rated by Population and Poverty --- http://www.nccbuscc.org/cchd/povertyusa/map.htm

    Putting Meat On The Table: Industrial Farm Animal Production in America --- 
    http://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Industrial_Agriculture/PCIFAP_FINAL.pdf 

    Statistics: Cast Your Vote! --- http://www.learner.org/interactives/statistics/index.html

    OECD Statistics Portal --- http://www.oecd.org/statsportal/0,2639,en_2825_293564_1_1_1_1_1,00.html

    The World --- http://www.theworld.org/

    "Help Site for the Poor," Wired News, June 9, 2006 ---
    http://www.wired.com/news/technology/0,71116-0.html?tw=wn_index_17

    The site would provide information about such basics as public safety, emergency services, education, health care and jobs. U.S. Senators John McCain, an Arizona Republican, and Barack Obama, an Illinois Democrat, serve as honorary co-chairmen of the group.

    Continued in article

    The One Economy homepage is at http://www.one-economy.com/

     
     
    National Debt Graph --- http://zfacts.com/p/318.html
    Graph of the Yearly U.S. Budget Deficit --- http://www.uuforum.org/deficit.htm
     

    "A Book for People Who Love Numbers," by Sam Roberts, The New York Times, February 22, 2006 --- http://www.nytimes.com/2006/02/22/books/22stats.html

    For starters, it weighs 29 pounds. It has five volumes. And it's densely packed with more than a million numbers that measure America in mind-boggling detail, from the average annual precipitation in Sweet Springs, Mo., to the wholesale price of rice in Charleston S.C., in 1707
    Historical Statistics of the United States: Millennial Edition, 5 Volume Set, Susan Carter (Editor), Michael R. Haines, Scott Sigmund Gartner, Gavin Wright (Editor), Susan B. Carter (Editor) --- Click Here

     
     

    October 13, 2006 message from Dan Blystone (no relation to Trinity University's Bob Blystone)

    Dear Bob,

    I am writing to request that you kindly consider adding a link to my website (TradersLog.com) on your page here:

    http://faculty.trinity.edu/rjensen/bookbus.htm 

    I think your visitors may find it useful and interesting, and it would help my startup gain some valuable exposure.

    The website description is: Portal website for traders and investors featuring articles, analysis and a community forum.

    Please let me know if you have any questions.

    Best Regards,

    Dan Blystone
     TradersLog.com
    (312) 593-1322

    Reply from Bob Jensen

    Hi Dan,

    I added your message to http://faculty.trinity.edu/rjensen/Bookbus.htm

    However, I think I have some better places to also add your message. It will be in the forthcoming (October 31) edition of New Bookmarks.

    I have added your link to my investor helper module at http://faculty.trinity.edu/rjensen/Bookbob1.htm#InvestmentHelpers

    Since you provide a great set of links to economic and financial statistics, I also added your link at http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics

    Best of luck in your venture.

    Bob Jensen

     

    Question
    Where can you find facts about taxation?

    October 7, 2007 message from JOHN STANCIL [jstancil@VERIZON.NET

    I realize that the IRS is pretty tight with its data, even in aggregated form. However, does anyone know if there is an internet source where you can obtain certain tax facts – such as the amount of charitable contributions claimed on individual returns, the dollar amount of earned income credit, the amount of productive activity deductions taken on a year to year basis?

    Any help would be appreciated.

    John Stancil
    Florida Southern College

    October 8, 2007 reply from Bob Jensen

    When in doubt, always start with Wikipedia --- http://en.wikipedia.org/wiki/Taxation 
    It goes without saying that you must be suspicious of questionable items in any Wikipedia module. However, the above link is quite good on this topic. As with most Wikipedia modules, both the Reference (Notes) links and the Discussion sections are very important.

    The Notes section (near the bottom) in this case leads to OECD sites such as the National Accounts site ---
    http://www.oecd.org/topicstatsportal/0,2647,en_2825_495684_1_1_1_1_1,00.html 

    The Discussion tab (near the top) leads to an extensive table of contents of discussions.

    Here are a few other sites to check out:

    Bob Jensen’s statistical data links --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics 

    FirstGov --- http://www.fedworld.gov/firstgov.html 

    Great IRS site links (not necessarily data table links):

    The Individual Complete Report Publication contains complete individual income tax data. The statistics are based on a sample of individual income tax returns, selected before audit, which represents a population of Forms 1040, 1040A, and 1040EZ, including electronic returns. --- Click Here

    FAQs and answers --- http://www.irs.gov/faqs/index.html 

    Tax Fraud Alerts from the IRS --- http://www.irs.gov/compliance/enforcement/article/0,,id=121259,00.html 

    Tax Scams --- http://faculty.trinity.edu/rjensen/FraudReporting.htm#TaxScams 

    Bob Jensen's taxation helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation

     

    WSJ Video of the World Bank's Ranking of the Best and Worst Places to Do Business --- Click Here

    Top Nations out of 178 Countries That Welcome Foreign Operations:

    • Singapore
    • New Zealand
    • United States (would have been higher except for an excessively complicated tax code better known as the CPA Full Employment Act)

    Low Ranking Countries Highlighted in the Videos:

    • Argentina (113% corporate profit tax rate unless you cheat)
    • Brazil (takes an average of 2,600 hours to fill in tax forms)
    • Venezuela and Bolivia (cannot fire even the most lazy, worthless, and drug addicted workers)

    "Doing Business 2008: Making a Difference," International Finance Corporation --- http://ifc.org/ifcext/media.nsf/Content/Doing_Business_2008   


     
     
    EconPhD --- http://www.econphd.net/
    Lecture notes, book notes. etc.
     
    Economic Statistics from the Dismal Scientist --- http://www.economy.com/dismal/

    Economagic (economic statistics) --- http://www.economagic.com/

    International Monetary Fund (economic history) --- http://www.imf.org/external/np/exr/center/mm/eng/mm_cc_01.htm

    Iraq Stock Exchange Registrants Must File Financial Reports Under IFRS Accounting
    We have created a new Jurisdiction Page for Iraq. Under the Iraq securities markets law, all companies listed for trading on the Iraq Stock Exchange are required to publish financial statements that are prepared in accordance with International Financial Reporting Standards. Those statements must be audited in accordance with International Standards on Auditing. Further, the Iraq banking law (administered by the Central Bank of Iraq) requires all banks to publish IFRS financial statements. We have updated our table of Use of IFRSs by Jurisdiction.
    IASPlus blog from Deloitte, June 17, 2008 --- http://www.iasplus.com/index.htm

    Iran has some issues with IFRS convergence but is at least considering the possibility of convergence, unlike Saudi Arabia, Japan, and Iceland that appear to be giving IFRS less consideration --- http://www.iasplus.com/resource/gaap2002.pdf

    Iran has an Institute of Certified Accountants --- http://www.iasplus.com/index.htm
    Professional Accountancy groups in other nations are listed at http://www.iasplus.com/links/links.htm

    Many other useful accounting sites (scroll down) --- http://www.iasplus.com/links/links.htm

    Deloitte also publishes an extensive Global Outlook document, although I've not found updates since 2006 --- http://www.iasplus.com/resource/0511econoutlook2006.pdf
    This is a very, very useful document about global economic opportunities and risks.

    Directories --- http://dir.yahoo.com/Business_and_Economy/Directories/ 
     
    What is the Consumer Price Index (CPI), including its components? --- http://www.bls.gov/dolfaq/blsfaqtoc.htm 
     
    Globastat: Country Rankings and World Statistics http://Globastat.com/ 
     
    Fast Facts: Almanacs/Factbooks/Statistical Reports & Related Reference Tools --- http://www.freepint.com/gary/handbook.htm
     
    Explanations of economic statistics can be found at EconDash.com http://www.econdash.net/ 
     
    Clayton Solution Economic Indicators ---
    http://www.econsources.com/EconSourcesEconomicIndicators.asp?PageID=2#

    Economic Indicators ---
    http://www.econsources.com/EconSourcesEconomicIndicators.asp?PageID=2
     
    Economy.com --- http://www.economy.com/default.asp 
     

    How to Mislead With Statistics:  The Consumer Price Index

    Moral Hazard --- http://en.wikipedia.org/wiki/Moral_hazard

    Consumer Price Index --- http://en.wikipedia.org/wiki/Consumer_price_index

    . . .

    Confusion

    It is apparent that much of the muddle in discussing the merits of the different approaches arises from the promiscuous mixing up of arguments about feasibility, about dislike or approval of the way the index would move under a particular approach and about principles of various, often incompatible, sorts. Feasibility is naturally important. The difficulty of dealing with site values is obvious.

    Statisticians in a country lacking a good dwelling price index (which is required for all except the rental equivalent method) will go along with a proposal to use such an index only if they can obtain the necessary additional resources that will enable them to compile one. Even obtaining mortgage interest rate data can be a major task in a country with a multitude of mortgage lenders and many types of mortgage. Dislike of the effect upon the behaviour of the Consumer Price Index arising from the adoption of some methods can be a powerful, if sometimes unprincipled, argument.

    Dwelling prices are volatile and so, therefore, would be an index incorporating the current value of a dwelling price sub-index which, in some countries, would have a large weight under the third approach. Furthermore, the weight for owner-occupied dwellings could be altered considerably when reweighting was undertaken. (It could even become negative under the alternative cost approach if weights were estimated for a year during which house prices had been rising steeply).

    Then, there is the point that a rise in interest rates designed to halt inflation could paradoxically make inflation appear higher if current interest rates showed up in the index. Economists' principles are not acceptable to all; nor is insistence upon consistency between the treatment of owner-occupied dwellings and other durables.

    Clarity

    Much would be gained if two sets of problems were distinguished.*

    What is the Consumer Price Index to measure? How can that be achieved?

    Another way of putting this is to distinguish:

    What is the question that should be answered? This is a matter for policy makers and other users of the Consumer Price Index. How can it best be answered? This is a matter for the statisticians.

    The three approaches should not be regarded as rivals, they are different answers to different questions. One, or possibly more, should be chosen. The three questions can be formulated as follows:

    Opportunity cost. What is the change through time in what would be the opportunity cost of the reference-period consumption of the services of owner-occupied dwellings? Spending. What is the change through time in the cash outlays that would correspond to the reference-period cash outlays in respect of owner-occupied dwellings? Transactions. What is the change through time in what would be the purchase value of the reference-period net acquisition of owner-occupied dwellings by consumers?

    Which question is to be answered is, as just stated, a policy matter, depending upon the purposes the index is to serve. It is not an issue for statisticians to decide. Their job is the technical, professional one of compiling one or more indexes that answer the selected question or questions as well as possible, given the resources at their disposal. In a perfect world this is how the owner-occupied dwellings issue would be resolved. But the world is not perfect

    Continued in Article

     

    No one really denies that the CPI, as presently calculated, understates the rate of inflation
    Why the Consumer Price Index (CPI) is a Flawed Measure of Cost of Living
    It's largely due to moral hazard caused by government's incentives to understate inflation and cash flow increases in things like Social Security

    "Deconstructing ShadowStats. Why is it so Loved by its Followers but Scorned by Economists?" by Ed Dolan, Econ Monitor, March 31, 2015 ---
    http://www.economonitor.com/dolanecon/2015/03/31/deconstructing-shadowstats-why-is-it-so-loved-by-its-followers-but-scorned-by-economists/

    It is hard to think of a website so loved by its followers and so scorned by economists as John Williams’ ShadowStats, a widely cited source of alternative economic data on inflation and other economic indicators. Any econ blogger who has ever written a line about inflation is familiar with ShadowStats. Time and again, readers cite it in comments, not infrequently paranoid in their tone and rude in their language. Brief replies that cast doubt on some of more extreme claims made by ShadowStats fans don’t seem to have much effect. After a recent round of comments, I promised the editor of one website to undertake a thorough deconstruction of ShadownStats. Here is the result.

    What ShadowStats Gets Right: The CPI is a Flawed Measure of the Cost of Living

    ShadowStats is Williams’ attempt to provide an alternative to the official consumer price index (CPI), which he views as a flawed measure of what members of the general public have in mind when they think of the cost of living. Let me start by saying that although I share the skepticism of many economists about the specific numbers published on ShadowStats, I agree that the official data do not tell the whole story. I support Williams’ attempt to provide an alternative to the official consumer price index that more closely reflects pubic perceptions of inflation.  Here, in his own words, is how Williams explains his undertaing:

    In the last 30 years, a growing gap has been obvious between government reporting of inflation, as measured by the consumer price index (CPI), and the perceptions of actual inflation held by the general public.  Anecdotal evidence and occasional surveys have indicated that the general public believes inflation is running well above official reporting . . .

    Measurement of consumer inflation traditionally reflected assessing the cost of maintaining a constant standard of living, as measured by a fixed-basket of goods. Maintaining a constant standard of living, however, is a concept not popular in current economic literature, and certainly not within the thinking or the lexicon of the Bureau of Labor Statistics (BLS), the government’s statistical agency that estimates and reports on consumer inflation. . . Individuals look to the government’s CPI as a measure of the cost of maintaining a constant standard of living, as well as measuring that cost of living in terms of out-of-pocket expenses.  Without meeting those parameters, an inflation measure has limited, if any, use for an individual.

    Williams is right about the gap between public perceptions of inflation and official indicators. As a recent series of posts on inflation expectations on the Atlanta Fed’s Macroblog noted, “Inflation surveys of households reveal a remarkably wide range of opinion on future inflation compared to those of professional forecasters. Really, really wide.” According to Macroblog, household expectations of inflation for the coming year consistently average two percentage points higher than those of professional forecasters, and some 13 percent of household respondents report inflation expectations of 10 percent or higher even at a time when professional forecasts fall short of 2 percent.

    In technical terminology, we refer to a cost of living index based on the changing cost of a fixed-proportion basket of goods that themselves remain unchanged over time as a Laspeyres index without quality adjustment. Williams is again correct when he says that the official CPI, following mainstream academic thinking, has gradually evolved away from the Laspeyres concept toward a measure of the cost of a changing basket of goods that gives equivalent satisfaction as the prices, quantities, and qualities of the goods that consumers buy change over time.

    The substitution issue. One of Williams’ key objections to the CPI is that instead of holding the cost-of-living basket unchanged for long periods, the BLS allows for frequent changes in its composition. Some changes in the consumer market basket occur when goods like audio cassette players become technically obsolete and new goods like cell phones appear on the market, but those are not the ones that Williams takes issue with.

    What he finds more objectionable are changes in composition of the market basket that stem directly from changes in prices, as, for example, when people eat more chicken because beef becomes unaffordably expensive. To many people, fiddling the market basket to give more weight to the goods whose prices increase least and less to those whose prices increase most sounds like cheating. They see it as if a teacher tried to impress a tenure committee with high test student scores by letting the smart kids take the test several times each while sending their slow-learning classmates home on testing day.

    Mainstream economists have a standard response: If we did not account for changed consumption patterns in response to changed prices, they say, we would overstate the cost of maintaining a constant level of satisfaction. Consider an example. Last week you went to the supermarket and bought 5 pounds of chicken at $2 a pound and 5 pounds of steak at $5 a pound, $35 total. This week you go to the supermarket and find that chicken still costs $2 but steak has gone up to $10. There is no question that the new prices leave you worse off than you were the week before, but how do you react?

    You would need $60 to buy the same basket of goods that you bought last week for $35. In reality, you might not have that $60 in your wallet or purse, but if I gave you a $60 coupon that you could spend only at the meat counter, you would probably not spend it on the same basket of goods you bought last week. Instead, you might buy, say, 10 pounds of chicken and 4 pounds of steak. However, since $60 would be enough to buy your previous selection if you wanted to, we could conclude that you would change the mix only if the new $60 selection gave you more satisfaction than the original one.

    Experience shows that if you put a large number of consumers in this situation and average their behavior, they will shift their consumption toward chicken, even though some individuals might stick with the original mix. Those who did shift would be better off with $60 and the new prices than with $35 and the old prices, and the ones who don’t shift are no worse off. In that sense, $60 overstates the increase in income the average consumer would need to reach the same level of satisfaction as before the price change.

    Your cost of living has gone up, and that hurts, but just how much has the increase in the price of steak raised your cost of living? By the ratio of 60/35, a 70 percent increase, or by less than that? It depends on what you mean by the cost of living. If you mean the cost of buying a fixed market basket (the popular conception), then the 70% is correct. If you mean the cost of maintaining a fixed level of satisfaction, then 70% is an overstatement.

    The quality issue. In addition to adjusting the relative quantities of goods in the consumer market basket over time, the BLS adjusts the CPI for changes in the quality of goods. The rationale for doing so is that failure to account for quality improvements would cause a further overstatement of the increase in spending that needed to maintain a constant level of consumer satisfaction.

    Consider tires for your car. In the old days, you were lucky if a set of bias-ply tires lasted 30,000 miles. Today, a decent set of radial tires will go 60,000 miles or more, and give you a better ride along the way. So, if the price of a set of tires has increased from $100 to $400, what has been the impact on your cost of living? If you calculate the cost per tire, without accounting for quality, tires are four times more expensive than they used to be. If you calculate the cost per mile, they are only twice as expensive.

    Williams does not necessarily object to adjusting for quality changes when they are objectively measurable, like package size or the number of miles you get from a set of tires. However, he argues that the BLS exaggerates the importance of quality by making adjustments for changes that consumers don’t really care about. In one post, he uses the example of two computers, purchased ten years apart. Yes, the newer computer has many extra features—more memory, a faster processor, a sharper display, and so on, each of which is quantifiable. However, not all consumers care about the new features. If you just use your computer for e-mail and browsing the web, and not for running big financial spreadsheets or high-powered gaming, who cares about processor speed? The old model does the job just as well.

    Other issues. Williams has a number of other criticisms of the CPI beyond the substitution and quality issues. In particular, he takes issue with the way the BLS measures housing prices and medical costs. Without going into detail, in both cases Williams favors an out-of-pocket approach to housing and medical costs as being more in tune with the general public’s concept of the cost of living. I think it is fair to say that mainstream economists agree that these two items, which loom large in household budgets, are particularly difficult to measure, although not everyone agrees with the way Williams would like to see them handled. I hope to deal with these issues in a future post, but this one will focus on the basics.

    Where ShadowStats goes wrong: How great is the understatement?

    No one really denies that the CPI, as presently calculated, understates the rate of inflation compared to a measure based on a fixed basket of unchanged goods. Rather, what many economists, myself included, find hard to accept is Williams’ estimate of the degree of understatement. The following chart, reproduced by permission and updated monthly on ShadowStats.com, claims that since the early 1980s, the CPI has been understating the true rate of inflation by an ever increasing margin that now amounts to some 7 percentage points.

    Continued in article

    Jensen Comment
    It's amazing that labor unions have not had more power in Washington DC to reduce the understatement of inflation. Understating inflation greatly decreases union negotiating power for raising wages in the public and private sectors.

    Note that the moral hazard of understating inflation affected the Obama years in the presidency, but President Obama certainly did not invent the strategy that for many years preceded his term of office


    Federal Reserve Bank of Minneapolis Consumer Price Index Forecasting Calculator --- http://www.minneapolisfed.org/research/data/us/calc/ 
     

    Crime Maps
    National Institute of Justice’s MAPS Program --- http://www.ojp.usdoj.gov/nij/maps/  Statistical Abstract of the United States 2004-2005 --- http://www.census.gov/statab/www/

    Income and tax statistics from the IRS --- http://www.irs.gov/taxstats/article/0,,id=130546,00.html

    Cost of Living Calculator (comparing U.S. cities and states) --- http://www.homefair.com/homefair/calc/salcalc.html
    There are also helpful reports for persons contemplating moves to selected cities or states.

    Also see
    Vitual Relocation helpers from James Angelini, CPA.  Among other things you can find cost of living comparisons at http://www.virtualrelocation.com/

    For cost of living comparisons between nations, go to NationMaster.com --- http://www.nationmaster.com/

    Current Population on Earth --- http://www.worldometers.info/

    Projected Population Growth (it's out of control) --- http://snipurl.com/9wu3
    Sustaining the exponential growth in the human population on the planet earth

    Vertical Farm ---  http://www.verticalfarm.com/

    Also see
    Vitual Relocation helpers from James Angelini, CPA.  Among other things you can find cost of living comparisons at http://www.virtualrelocation.com/

    Also see http://faculty.trinity.edu/rjensen/bookbob3.htm#080512Encyclopedias 
     
    Bureau of Economic Analysis --- http://www.bea.gov/ 
     
    Banking and interest rate data:  Econmagic.com --- http://www.economagic.com/ 
     
    Consumer Price Index --- http://www.bls.gov/cpi/ 
     
    What is the Consumer Price Index (CPI), including its components? --- http://www.bls.gov/dolfaq/blsfaqtoc.htm 
     
    History of the CPI --- http://www.usda.gov/cnpp/FENR%20V11N3/fenrv11n3p64.PDF 
     
    Consumer Price Index (CPI) Inflation Calculators 
     
    Inflation Data --- http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx
     
    United Kingdom Statistics Online --- http://www.statistics.gov.uk/ 
     
    CPI Forecasting Theory --- http://research.stlouisfed.org/publications/review/80/11/Rationality_Nov1980.pdf 

    A Story of Record Setting Pork in a Barrel 
    Budget of the United States Government, Fiscal Year 2005 ---  http://www.whitehouse.gov/omb/budget/fy2005/budget.html 

     
     
    Measuring America: The Decennial Censuses from 1790 to 2000 [.pdf] http://www.census.gov/prod/2002pubs/pol02-ma.pdf 
    2001 State Government Tax Collections http://www.census.gov/govs/www/statetax01.html 
    The Canadian government now offers the Canada e-book homepage with four primary sections (included multimedia) : 
    The Land, The People, The Economy, and The State --- http://142.206.72.67/r000_e.htm 

    Bob Jensen's bookmarks for education statistical data are at http://faculty.trinity.edu/rjensen/bookbob2.htm#050421Statistics 

     

    National Climatic Data Center --- http://www.ncdc.noaa.gov/oa/ncdc.html
     
    CensusScope --- http://www.censusscope.org/ 
    The Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) have announced the launch of a new Web site designed to provide information about money managers, financial planners, and other investment advisors. http://www.accountingweb.com/item/59363 
     
     

    Australian Bureau of Statistics --- http://www.abs.gov.au/

    Economic Statistics - INTERNATIONAL

     

    Institute for International Economics --- http://www.iie.com/

    Michigan State Univ - CIBER
    Nanyang Tech.
    Ole Miss
    Resources for Economists
    United Nations
    Univ of Michigan

    Bureau of Economic Analysis --- http://www.bea.gov/ 

    Glossary --- http://www.bea.gov/bea/glossary/GlossaryIndex.htm 
    International Business Resources on the WWW
    Canadian Corporate News (CCN)
    Canadian Corporate Newsnet (CCNet)
    CCNet - Company Search
    Central Intelligence Agency
    CIA - Publications
    Deloitte & Touche - PeerScape
    Dept of Commerce - Int'l Trade Administration
    Financial Valuation Group International
    International Monetary Fund (IMF)
    London Business School - World Forecasts
    Morgan Stanley - Global Economic Forum
    Organisation for Economic Co-operation and Development
    OECD - Economic Surveys
    Statistics Canada
    U.S. State Department
    U.S. State Department - Background Notes
    United Nations (UN)
    UN - Economic Commission for Europe
    UN - Statistics Division
    Virtual International Business & Economic Sources (VIBES)
    WACRA
    WEFA
    World Bank Group
    World Trade Organization
    Yahoo! - International Economy

    Index of Economic Freedom

     

    "Wish They All Could Be Like Estonia," by Mary Anastasia O'Grady, The Wall Street Journal, January 4, 2006; Page A10 --- http://online.wsj.com/article/SB113634132194337178.html?mod=todays_us_opinion 

    The 2006 Index of Economic Freedom, published today by the Heritage Foundation and The Wall Street Journal, provides powerful clues. The annual report surveys 157 countries, grading property rights protection, the regulatory environment, tax rates, fiscal policy, government intervention in the economy, monetary policy, black markets and trade policy, assigning each a numerical rating. Each country falls into one of four categories: "free," "mostly free," "mostly unfree" and "repressed." The chart shows this year's results.

    [None]

     

    Yale Center for the Study of Globalization --- http://www.ycsg.yale.edu/center/index.html


    Archive of European Integration (Common Market) --- http://aei.pitt.edu/


    Economic Statistics - NATIONAL

    From the U.S. Census Bureau --- http://www.census.gov/hhes/www/income/income.html

     

    Department of Statistics: Kingdom of Jordan http://www.dos.gov.jo/dos_home_e/main/index.htm

    Bureau of Economic Analysis --- http://www.bea.gov/ 

    LSU
    Nanyang Tech.
    Resources for Economists
    Univ of Michigan

     

    Equityweb
    Administration on Aging
    Bank of America
    Bank of America - Economics & Financial Reports
    Bureau of Economic Analysis (BEA)
    BEA - Frequently Requested NIPA Data
    BEA - Gross product by industry
    Bureau of Labor Statistics (BLS)
    BLS - Economy at a Glance
    BLS - Consumer Expenditure Surveys
    BLS - Most Requested Series
    Deloitte & Touche - PeerScape
    Dismal Scientist
    Economic Indicators - U.S. Congress
    Economic Indicators - Univ of California
    Economic Indicators - Univ. of Tulsa
    Economic Report of the President, 1998
    Economic Statistics Briefing Room
    Economy at a Glance
    Economy Overview
    Federal Budget
    Federal Reserve Bank (FRB)
    FRB - Beige Book
    FRB - National Information Center
    FRED
    Federal Web Locator
    FedStats: Site Map
    FedWorld - Search
    First Union Economic Information
    Global Trade Outlook
    Joint Economic Committee - House
    Joint Economic Committee - Senate
    Intellifact.com - Govt. Periodicals
    InvestSIG - Historical Data Sources
    National Bureau of Economic Research (NBER)
    NBER - Ohio State
    National Income & Product - Visualization
    Office of Management & Budget
    Standard & Poor's DRI
    Stat-USA
    State of the Nation Library
    Statistical Abstract of the U.S.
    Survey of Current Business
    Survey of Professional Forecasters
    Tax Statistics - IRS
    U.S. Census Bureau
    U.S. Census Bureau - CENSTATS
    U.S. Census Bureau - People Topics
    U.S. Department of Agriculture
    U.S. Department of Commerce
    U.S. Department of Labor
    U.S. Government Printing Office
    U.S. Treasury Department
    World Bank
    Yardeni's - Economics Network
    Yahoo! Business and Economy
    Wall Street Journal
    WEFA
    WEFA (via Primark)
     
    Resources for Economists
    American FactFinder
    BLS - Regional Information
    CENDATA
    Chamber of Commerce
    dbusiness.com
    Federal Reserve Banks
    FRB - St. Louis (FRED)
    Newspapers - Regional
    Regional Economic Information System
    Standard & Poors DRI
    State and Local Governments - Piper
    State and Local Governments - Library of Congress
    State of the Nation Library
    Statistical Abstract of the U.S.
     

    Demographics Journal

    BUSINESS CYCLE INDICATORS (Economic indicators)
    Some links from Stephen H. Glad (links to accounting, auditing, finance, and government sites)

    CIA Publications (includes economic statistics)

    BUSINESS RESOURCES

    CNNfn - the financial network
    http://www.ceoexpress.com/

    iTools! - Directories, Financial Markets, References

    VR Business Brokers Home Page

    Welcome to Population Action International
    Internet Scout Project - Home

    Statistics of Income Overview from the IRS --- http://www.irs.gov/taxstats/display/0,,i1%3D40%26genericId%3D16924,00.html 

     

    World Agricultural Information Centre Portal --- http://www.fao.org/waicent/

    From the Scout Report

    Global Financial Data [.pdf] http://www.globalfindata.com/ 

    This impressive collection of historical global financial data stretches from the years 1264 to 2000. While most of the actual data must be purchased, this Website does offer several free series, including Stock Markets since 1693, Interest Rates since 1700, and Inflation Rates since 1264. The site also contains a decent-sized collection of research papers written about the Eurodollar and a links page with financial Websites from around the world.


    Finfacts Worldwide Cost of Living Survey 2001 http://www.finfacts.com/costofliving.htm 

    Both interesting and informative, Finfact’s Worldwide Cost of Living Survey for 2001 compares prices of more than 200 items in 144 cities across the globe. Using New York City, which ranked tenth in 2001, as an absolute (at 100%), the survey compares relative costs of living in major metropolitan areas worldwide, particularly in major financial and commercial hubs. Ranking first, second, and third respectively, Tokyo, Moscow, and Hong Kong enjoy placement at the top of the list. Given the current state of the economy, it is nice to see that there are actually many places where a cup of coffee is a lot more expensive than it is here.

     

     

    WomenInvesting http://www.morningstar.net/news/Ms/Women/990416women.msnhtml

    The Motley Fool: How to Value Stocks (this is a misleading title to a very good web site)
    http://www.fool.com/School/HowtoValueStocks.htm

    Yahoo! - Business and Economy:Indices

     

    MACRO ECONOMICS LINKS (including data classified by industry)

    Last year I shared a platform with David Boldt at an education technology conference at Bentley College. David has a great web site for economists, particularly in the area of macroeconomics. His materials are listed at http://www.westga.edu/~dboldt

    If you are looking for industry and economic statistics. one place to begin searching is at http://econwpa.wustl.edu/EconFAQ/USMacro/index.html

    The above web site leads to a heap of macro data, but you were more interested in industry ratios. A bit of searching from the above site led me to a University of Michigan site at
    http://www.lib.umich.edu/libhome/Documents.center/stats.html

    There are various industry categories at the above web site. The Business and Industry button led me to the FedStats web site at http://www.fedstats.gov

    Another good set of Federal Government links can be found at
    http://www.sec.gov/others.htm

    Charles A. Dice Center for Research in Financial Economics http://www.cob.ohio-state.edu/~fin/dice/index.htm  

    Insurance
    Law and Pension Aids
    MetLife Online
    Northwestern Mutual Life®
    Personal Finance Web Sites (Extensive List of Links )

    Free insurance research online --- http://www.insurance.com/ 

    Free estate planning helpers from a Georgia law firm --- http://www.scrogginlaw.com/ 

    ABA LawInfo.org --- http://www.abalawinfo.org/ 
         Your gateway to information on legal topics that affect your daily life.

    THE FUTURE OF SEARCH --- RDF, RSS, and Pluck

     

    December 28, 2004 message from Richard Campbell [campbell@RIO.EDU

     

    Check out the following video tutorial on RSS provided by Derek Franklin, one of the most prolific authors on Macromedia Flash.

    http://www.rssdomination.com/video.htm 

    Richard J. Campbell 
    mailto:campbell@rio.edu
     

    December 28, 2004 reply from Bob Jensen

     

    You can read about the origins of Resource Description Framework (RDF) at http://faculty.trinity.edu/rjensen/XBRLandOLAP.htm#TimelineRDF 

     

    You can read more about Wiki at http://faculty.trinity.edu/rjensen/245glosf.htm#Wiki 


    RSS is defined as Rich Site Summary or RDF Site Summary where RDF in this context is a XML markup that allows you to find topics in documents that do not necessarily use your search terminology and exclude documents that use your terminology in a different context. . Unfortunately, the same term in English may have vastly different meanings which leads to getting thousands or millions of unwanted "hits" in traditional HTML text searches. 

     

    A RSS site allows user to add content to the site.  In this sense it is like Wiki, but it us much more efficient and popular than a Wiki for news feeds (although Wikipedia has just started a news feed feature.).  But Wiki's do not have the same deep RDF metadata features.   Wikipedia defines RSS as follows at http://www.webopedia.com/TERM/R/RSS.html 

     

    Short for RDF Site Summary or Rich Site Summary, an XML format for syndicating Web content. A Web site that wants to allow other sites to publish some of its content creates an RSS document and registers the document with an RSS publisher. A user that can read RSS-distributed content can use the content on a different site. Syndicated content includes such data as news feeds, events listings, news stories, headlines, project updates, excerpts from discussion forums or even corporate information.

    RSS was originally developed by Netscape.

     

    RSS/RDF feeds are commonly available ways of distributing or syndicating the latest news about a given web site. Weblog (blog) sites in particular are prolific generators of RSS feeds.  Free software that integrates well with Internet Explorer and is very simple to install is Pluck from http://www.pluck.com/ 
    The following are RSS search advantages described by Pluck:

     

    For Hunters and Gatherers, a New Way to Compare 
    "With one click, users of Pluck can save Web bookmarks into an online folder or email them to others."

    Blurring the Line Between Affiliate and Developer 
    "Pluck not only integrates eBay searching into the browser, but it improves on features built into eBay.com..."

     

     

    Miscellaneous Business and Finance

    E-Commerce News and Education --- http://www.ecommercetimes.com/ 

    Resources for consultants --- http://www.consultingcentral.com/ 

    How to do a business plan --- http://www.sba.gov/starting/indexbusplans.html  

    Banking Industry http://special.northernlight.com/banking/index.html 

    Free estate planning helpers from a Georgia law firm --- http://www.scrogginlaw.com/ 

    From the Wharton School at the University of Pennsylvania

    In 1998, Microsoft executive John Wood decided to take a rare and hard-won vacation. He started out trekking in Nepal and ended up establishing a foundation, Room to Read, that has created nearly 3,000 libraries in the developing world and stocked them with more than one million books. His experiences are chronicled in a recently-published book that offers his corporate-based perspective on how to raise money, market the product, leverage relationships and, ultimately, maximize results.
    "How John Wood Left Microsoft to Change the World -- through Books (Including His Own)," Knowledge@Wharton, December 13, 2006 --- Click Here

     

    Karen's Financial Musings September 30, 2006 http://financemusings.blogspot.com/

    Google's new Reader is a vast improvement. I think I may give up on Bloglines. I particularly like the ability to flag things I've read to show up in the box on the left (below my profile). I can even set up different sharing lists for each blog (if you're here, you probably don't care about the latest in knitting). What's missing is the ability to search your feeds. And, if you run out of things to read you end up here.

    Yesterday I read this
    post over at Financial Rounds. Of course, I had to check out the Piled Higher and Deeper archives -- great stuff! Here's one of my favorites. And another.

    From the Financial Rounds Blog on October 1, 2006 --- http://financialrounds.blogspot.com/

    Weekend Link Dump

    It's been a pretty busy weekend (soccer games for the kids, a football game at the Unknown University, family visiting) and I'm a bit behind schedule due to my wisdom tooth extraction earlier this week. And it's been a pretty light couple of days news-wise. So I'm only posting a couple of items for the weekend edition of the Link Dump:
     
    TheStreet.com does a good job of dissecting why some firms are willing to pay higher fees to do their IPOs in the U.S. capital markets.

    Mish's Global Economic Trend Analysis discusses
    lenidng guidelines and the credit squeeze

    Chuck Jaffe at Marketwatch gives us an idea of what we might expect from the Putnam/MFS merger.

    Finally, the The Wall Street Journal has a couple of interesting articles. The first one (titled
    Your Portfolio on Autopilot) discusses automated trading systems for the small investor. Now anyone can set up a series of rules that will trigger buy/sell decisions. Be afraid - be very, very afraid.

    And last but not least, another Wall Street Journal article
    "New 10-K Footnote Can Flag Woes" points out a new financial footnote that investors might want to look for. According to the article, the Securities and Exchange Commission recently required required most companies to include a footnote item in their financial statements called "unresolved staff comments." These are "any comments from an SEC review of their filings that were material, issued more than 180 days before the end of the fiscal year or remain unresolved by the date of the 10-K, the company's annual financial and business filing with the SEC." I wonder whether they'll be good predictors of future restatements or enforcement actions?

    The Education Alliance Network provides, free of cost, the materials for colleges and universities to expose college-level students to financial management software, helping them gain hands-on experience to real-world technologies.
    http://www.gps.com/ean

    Yahoo! Finance
    The SEC's Ten Questions to Ask About Any Investment Opportunity
    BUSINESS RESOURCES
    Investment News from Wharton Now
    Corporate Information
    Featured Applied Ethics Web Site
    Hot Topics Index Page - WBS
    Personal Finance Web Sites (Extensive List of Links )
    AINTSYS-L: Journal of Financial Information Systems
    Bob Jensen's Vendor Database
    British Petroleum Company Home Page
    Comparisons of WWW Publishing Software
    Fidelity
    Harvard Business School Multimedia
    Intuit Inc.
    Jensen & Sandlin Survey of High End Courseware Shells and Authoring Software
    Compare Web Tools
    UMinfo - Tools for Developing Interactive Academic Web Courses
    Tool Comparison (Compares authoring software, asymetrix librarian, etc.)
    IBM Global Campus Community
    Jensen & Sandlin Survey of Accountancy Education Programs
    Jensen & Sandlin Survey of High End Courseware Shells and Authoring Software
    Welcome to CyberClass
    WBT Systems (TopClass)
    Macromedia - Pathware
    Journal of Financial Information Systems
    Some links from Stephen H. Glad (links to accounting, auditing, finance, and government sites)
    Texas Networking, Inc.
    Internet Essentials ‘99 Newsletter for the financial professional
    The Inc. 500 (Fast Growing Companies)
    VR Business Brokers Home Page
    William F. Sharpe, Professor of Finance

    Tax Cape is an interesting website from the standpoint of international financing and taxation.  Among other things it compares 50 leading financial sites around the world   --- http://www.taxcape.com/ 

    I received this email requesting that I add this message to New Bookmarks:

    Your TaxCape Team
    TaxCape Anstalt 
    http://www.taxcape.com  
    Landstrasse 30 FL-9494 Schaan Furstentum Liechtenstein 
    Tel.: +423 238 11 68; Fax: +423 238 11 69 mailto:info@taxcape.com

    Guides from the SEC about calculating the cost of a mutual fund
    http://www.sec.gov/mfcc/mfcc-int.htm  

    The Journal of Finance maintains a very helpful and extensive web site called the Finance Site List http://www.cob.ohio-state.edu/htbin/htimage/~fin/journal/jf.conf?48,215   .  Categories include the following:

    Other Journals
    Institutional Working Paper Sites
    Personal Working Paper Sites
    The Finance Profession
    Research Centers
    Link Collections
    Asset Pricing & Investments
    Derivatives
    Corporate Finance and Governance
    Financial Institutions
    Research Software and Data
    Educational Resources
    Of Interest to Students
    Misc

    Charles A. Dice Center for Research in Financial Economics http://www.cob.ohio-state.edu/~fin/dice/index.htm  

     

     

    Small Business

    Bob Jensen's Threads on Accounting Fraud, Forensic Accounting, Securities Fraud, and White Collar Crime ---  http://faculty.trinity.edu/rjensen/fraud.htm 

    Bob Jensen's Threads on Fees and Choosing Accountants, Financial Advisors, and Consultants --- http://faculty.trinity.edu/rjensen/fees.htm

    Small Business Administration: Managing --- http://www.sba.gov/managing/index.html

    Bob Jensen's Tax Helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#010304Taxation


    39 Free QuickBooks Online Tutorials ---
    http://fitsmallbusiness.com/free-quickbooks-online-tutorials/
    Thank you Crystalynn Shelton and Kristian Rivera --- |
    http://fitsmallbusiness.com/category/accounting/


    Methodology to Identify Small Businesses and Their Owners
    Department of the U.S. Treasury
    Technical Paper 4
    August 2011 --- Click Here
    http://www.treasury.gov/resource-center/tax-policy/tax-analysis/Documents/OTA-T2011-04-Small-Business-Methodology-Aug-8-2011.pdf

    Comments from Paul Caron on August 9, 2011 ---
    http://taxprof.typepad.com/

    The Treasury Department's Office of Tax Analysis has released Methodology to Identify Small Businesses and Their Owners:

    Due to data constraints and the lack of clear definitions, prior analyses of the tax code’s impact on small business owners were flawed. In this paper, we develop a methodology to define and identify small businesses. We then apply that methodology to a new data source to identify the individual owners of those small businesses. Having matched owners to their small business entities, we present tabulations that detail various tax characteristics of small businesses and their owners for tax year 2007. ...

    For tax year 2007, our previous methodology counted 34.7 million filers reporting $662 billion of net flow-through business income as small business owners. Using our revised methodology, we count 20.0 million filers reporting $376 billion of net business income as small business owners under a broad measure of small business owner. Under our narrow definition, we count 9.4 million filers reporting $335 billion of net business income as small business owners.

     

     


    A History of Entrereneurship
    "Who Are The Entrepreneurs: The Elite or the Everyday Man? A History of Entrepreneurship," by Heather A. Haveman, Jacob Habinek, and Leo A Googman, UC Berkeley,  2011 ---
    http://www.escholarship.org/uc/item/392635v2;jsessionid=00ECE18AD2472F4956AAF2D00CC2132E#page-2
     Who Are The Entrepreneurs: The Elite or the Everyday Man? A History of Entrepreneurship

    We trace the social positions of the men and women who found new enterprises from the earliest years of one industry’s history to a time when the industry was well established. Sociological theory suggests two opposing hypotheses. First, pioneering entrepreneurs are socially prominent individuals from fields adjacent to the new industry and later entrepreneurs are from an increasingly broad swath of society. Second, the earliest entrepreneurs come from the social periphery while later entrepreneurs include more industry insiders and members of the social elite. To test these hypotheses, we study the magazine industry in America over the first 120 years of its history, from 1741 to 1860. We find that magazine publishing was originally restricted to industry insiders, elite professionals, and the highly educated, but by the time the industry became well established, most founders came from outside publishing and more were of middling stature – mostly small-town doctors and clergy without college degrees. We also find that magazines founded by industry insiders remained concentrated in the three biggest cities, while magazines founded by outsiders became geographically dispersed. Finally, we find that entrepreneurship evolved from the pursuit of a lone individual to a more organizationally-sponsored activity; this reflects the modernization of America during this time period. Our analysis demonstrates the importance of grounding studies of entrepreneurship in historical context. Our analysis of this “old” new media industry also offers hints about how the “new” new media industries are likely to evolve.

    Bob Jensen's threads on accounting history ---
    http://faculty.trinity.edu/rjensen/Theory01.htm#AccountingHistory


    The BizWorld Foundation (Venture Capital, Entrepreneurship) --- http://www.bizworld.org/
    This site has a section on "Classroom Resources"


    In answer to a September 11, 2010 question about small business research and available databases databases

    Hi Saeed,

    Germain Boer is the Director of the Owen Entrepreneurship Center at Vanderbilt University ---
    http://www.owen.vanderbilt.edu/vanderbilt/About/faculty-research/f_profile.cfm?id=85
    He’s very experienced in small business research. I suggest that you contact Germain when you’ve narrowed down your questions.

    Jerry Trites up in Canada maintains an eBusiness blog and has conducted considerable research on eBusiness. He might have some useful suggesting, although he may be more familiar with databases in Canada ---
    gtrites@ZORBA.CA

    Some Small Business Data Centers
    SBA --- http://www.sba.gov/
    (note the SBA tabs to Local Resources, Tools, Services, and Planner)
    Hoovers --- http://www.hoovers.com/

    Dunn & Bradstreet --- http://trial.selectory.com/msn/mtw_small_business_database2.html?

    MNI Store --- http://www.mnistore.com/index.asp?source=HKM&keyword=General

    eBusiness Data --- http://mediakit.internet.com/mediakit/

    Internet Data --- http://www.webreference.com/internet/statistics.html

    FreeBytes Guide --- http://www.freebyte.com/programming/database/

    Some Other Helpers and Guides
    AMA Resources Center --- http://marketingresourcedirectory.marketingpower.com/index.php

    Business.gov --- http://www.business.gov/

    SEC Helper Site --- http://www.accountingweb.com/item/59363

    KnowThis --- http://www.knowthis.com/

     

    Advertising World at http://advertising.utexas.edu/world/    
    Advertising Age at http://www.adage.com/
    Mousetracks Marketing List of Lists http://www.nsns.com/MouseTracks/tloml.html
    American Marketing Association
    http://www.ama.org/http://cwis.kub.nl/~few/few/be/marketin/links.htm

    You might consider searching for some relevant small business case research studies

    Helpful Links

    Organizations

    CASE Association (Eastern Case Writers)N

    NACRA North American Case Research Association

    Society for Case Research & Annual Case Writer's Workshop

    Western Casewriters Association (WCA)

    Southwest Case Research Association

    World Association for Case Method Research & Application

    ASAC (Administrative Sciences Association of Canada) Case Division

     

     

    Suppliers and Publishers of Case Resources:

     

    XanEdu - Publisher of Case Research Journal

    CasePlace.org

    CaseNet: SouthWestern Publishing

    Darden (UVa) Case Collection

    Electronic Hallway: Cases in Public, Non-Profit, & Health Administration

    European Case Clearing House

    Global View Interactive Cases

    HBS (Harvard) Case Collection

    IESE Publishing

    Ivey (Western Ontario) Case Collection

    School of Business & Economics, Wilfrid Laurier University, Canada

    Primis Case Database: McGraw-Hill/Irwin Publishing

    Pearson Custom Publishing

    Bob Jensen

    September 15, 2010 reply from Steven Kachelmeier, University of Texas at Austin [kach@MAIL.UTEXAS.EDU]

    The January 2009 issue of The Accounting Review featured a forum on accounting research involving small, privately held companies. It featured two main articles -- one by Kristian Allee and Teri Yohn and one by Gavin Cassar, along with a commentary by Gregory Waymire that synthesizied the contributions of both studies in the forum along with some broader observations.

    Gavin Cassar (Wharton) in particular specializes in research on accounting issues facing start-up ventures. You might want to contact him for more references in this area, though several of them are cited in his January 2009 article.

    Best regards,

    Steve

    Steven Kachelmeier
    Senior Editor, The Accounting Review

     

    September 11, 2010 reply from James Martin

    Saeed,

    It's not a large section, but anything I find in the management and accounting literature related to small business goes here:

    http://maaw.info/SmallBusinessArticles.htm

    You might find some useful papers in some of MAAW's other sections as well such as:

    The service industry bibliography:

    http://maaw.info/ServiceIndustryArticles.htm

    The Accounting for... Bibliography:

    http://maaw.info/AccountingForArticles.htm

    and the Health Care Bibliography:

    http://maaw.info/HealthCareArticles.htm

     

    James R. Martin

     


    Small Business Association Loan Terms Glossary --- http://www.sbaloans.com/sba-glossary.php
    Bob Jensen's threads on accounting and finance glossaries --- http://www.sbaloans.com/sba-g

    Software and Personal Finance Helpers for Individuals and Small Businesses

    Software Buying and Use Guides
     
     SMB Finance and Accounting Checklist
    What a great site Saeed. Thank you.

    On the personal financing and investment side of things, I like the following link:

    "The Best Online Tools (software, services) for Personal Finance," The Wall Street Journal, June 8, 2009 --- http://faculty.trinity.edu/rjensen/PersonalFinanceTools.htm

    Bob Jensen’s threads on accounting software are at
    http://faculty.trinity.edu/rjensen/BookBob1.htm#AccountingSoftware


    A Government Website for Helpers in Personal Finance
    MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are planning to buy a home, balancing your checkbook, or investing in your 401k, the resources on MyMoney.gov can help you do it better. Throughout the site, you will find important information from 20 federal agencies government wide.
    My Money.gov --- http://www.mymoney.gov/

    The AICPA's Financial Literacy Helper Site --- http://www.360financialliteracy.org/

    Damodaran Online: A Great Sharing Site from a Finance Professor at New York University and Textbook Writer --- http://pages.stern.nyu.edu/%7Eadamodar/

    Jim Mahar's finance sharing site (especially note his great blog link) --- http://financeprofessor.com/

    Financial Rounds from an anonymous finance professor --- http://financialrounds.blogspot.com/

    Bob Jensen's personal finance/investment helpers are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#Finance


    Small Business Administration: Free Online Courses (video) ---  http://www.sba.gov/services/training/onlinecourses/index.html


    "SBA Warns Small Businesses of Scams to Help Obtain Government Loans," Journal of Accountancy, April 1, 2010 ---
    http://www.journalofaccountancy.com/Web/20102758.htm

    The U.S. Small Business Administration (SBA) warned that the agency has received several complaints from small businesses about abusive marketing practices, scams and exorbitant fees charged by companies offering to help businesses get a loan, grant or other federal funds from the SBA. Complaints received by the SBA’s Office of the Inspector General (SBA OIG) include:

     

    • Companies charging small businesses high fees to provide assistance applying to SBA funding programs. Some companies allegedly guaranteed that the small business would obtain SBA funding if they paid the fee. The SBA does not endorse or give preference to specific private companies or their clients.
    • Companies charging small businesses for services never requested after the small business gave bank account and routing information to a caller claiming to be a company offering assistance.
    • Companies alleging that a small business would be issued a “forfeiture letter” that would make the small business ineligible for any SBA funding for three years if the small business refused to use the company’s services.

     

    The SBA said small businesses can get free assistance by calling one of the SBA’s 68 District Offices, or by visiting the SBA’s Web site. Assistance is also available at Small Business Development Centers, Women’s Business Centers, Veterans Business Outreach Centers and SCORE Chapters, either free or for a reasonable fee. Location and contact information for the centers is available at sba.gov.

    Bob Jensen's threads on fraud reporting are at
    http://faculty.trinity.edu/rjensen/fraudReporting.htm


    RIP:  The End of Microsoft Office Accounting
    Microsoft is formally backing away from the small business accounting market after announcing that the Office Accounting program will no longer be distributed after November 16, 2009. In addition, the Microsoft Professional Accountant's Network (MPAN) will no longer accept new members as of that date.
    AccountingWeb, November 4, 2009 --- http://www.accountingweb.com/topic/technology/end-microsoft-office-accounting

    Bob Jensen's accounting software threads are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

     


    From the Darden School of Business at the University of Virginia
    The Batten Institute (for creation of knowledge about entrepreneurship) ---
    http://www.darden.virginia.edu/BattenInstitute/BattenInstitute.aspx?menu_id=494 


    Small Business Helpers from Smart Stops on the Web, Journal of Accountancy, December 2008 --- http://www.journalofaccountancy.com/Issues/2008/Dec/SmartStops.htm

    SMALL OFFICE / HOME OFFICE

    GET YOUR BUSINESS OFF THE GROUND
    www.business.gov
    Known as “The Official Business Link to the U.S. Government,” this site is a virtual one-stop shop for information on running a small business. Operated by the Small Business Administration, this Smart Stop offers guides on starting and managing a business, government contracting, taxes and a host of other topics. There’s also a helpful tool to determine what types of federal, state and local licenses and permits are needed for a variety of businesses, along with contact information for the appropriate agencies. There’s even a separate section filled with information tailored for home-based businesses, which the SBA says account for more than half of U.S. businesses.

    FEEL RIGHT AT HOME
    www.2minutecommute.com
    This blog offers commentary and advice for people who work out of their homes. Recent postings included advice on feeling secure in an insecure economy, a video review of telephone headsets, and an alert about “business opportunity” scams. The site also looks at how to avoid the isolation of working from home by co-working, or sharing space with a group of other self- employed professionals. Postings can be viewed by subject, such as “Business Ideas” or “Financing.”

    MAKE YOUR SMALL BUSINESS WORK
    www.esmalloffice.com
    This Smart Stop offers articles and weekly columns for the small business owner. It features a “Business Guide” with dozens of how-to articles offering advice on everything from writing a press release to analyzing profitability. Other articles are grouped into topics including “Starting Your Business,” “Managing Your Money” and “Government Resources.” The site licenses content from providers such as Commerce Clearing House, the Edward Lowe Foundation and the Kauffman Foundation. You can also sign up to receive a free monthly e-newsletter.

    GENERAL INTEREST

    GET A CREDIT CLUE
    www.controlyourcredit.gov
    Way more fun than a lecture, the U.S. Treasury’s interactive site features The Bad Credit Hotel game, which provides information on keeping up a good credit score. The premise is to solve a mystery in a creepy hotel, with the goal of racking up enough credit tips to get to room 850—the perfect credit score—and unlock bonus information. Along the way, you collect clues on debt management, credit history and credit cards by clicking through to different rooms and clicking on key objects in each room. After collecting enough clues, players get to enjoy the secret perks found in room 850.


    Small Business Administration information services guides
    Business.gov --- http://www.business.gov/
    Bob Jensen's small business helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness
    Bob Jensen's links to business and economics data --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#EconStatistics


    "Disaster recovery, backup, and restore: Big challenges for small businesses," AccountingWeb, April 2008 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=104490

    The time and effort involved in creating the plan can be reduced by using readily available disaster recovery templates or working with consultants, but the starting point for every company is a risk analysis, according to the Disaster Recovery Planning Forum, identifying and assessing the potential that the loss of business functions, processes, and records could have on the operation of the business.

    When writing a disaster recovery plan, you can find recommendations on the Forum, including the following:

     

  • Identify and define the company's mission critical business processes and systems. Review them for vulnerabilities and identifying steps required for restoration and recovery.
     
  • Make sure data is backed up to secure and separate locations.
     
  • Evaluate various storage solutions including storage area networks, data replication systems, new virtualization systems, network attached storage devices, and managed storage.
     
  • Pay significant attention also to . . . telecommunications providers to ensure they have built diversity and redundancy into their networks and have well developed and tested contingency plans.

    Members of the forum suggest that employees should be invested in the plan and fully informed about their responsibilities in a disaster. The disaster recovery plan should detail how business managers will communicate with their employees.

    With the overload on cell phone communication that occurred during the September 11th, 2001 disaster in mind, some specialists are recommending options such as contracting with a third party service for backup e-mail domains or using text messaging services. Managers also need to consider the impact of staff using the more affordable smart phones that can support business functions. As these devices come into use, IT staff must set up procedures to secure data, according to Chen.

    Implementing any plan will require selecting backup technology and storage and establishing procedures. Tape backup systems require that someone be able to physically remove them from a damaged office. Online options which have increased dramatically in recent years, including software packages available for small businesses, have the advantage of providing offsite storage as well as backup

    Prices for online services are all over the map, so it pays to shop around. For example, two products recommended by PC Magazine are SOS online backup, which costs $74.50 per year for 1GB; $237 per year for 10GB, and Mozy Remote Backup, which costs only $39.95 a year for 20 GBs.

    Third party services usually charge monthly rates for back up and storage of files and servers. Laura DuBois, an analyst at International Data Corp., believes many of these services are good enough in terms of general protections, according to internetnews.com. But the service provider should be a true partner to function well in disaster recovery.

    Attila Kozma, president of Earth to Stars of Glendale, CA, the company offering ThetaBackup.com, suggested several tips to help business owners select an appropriate vendor internet news.com reports:

     

  • The transferred data need to be encrypted and compressed before transmission;
     
  • The online backup and data recovery practices of the online backup company should be verified to determine if they store SMB data securely;
     
  • Recovery times must be rapid;
     
  • On-site professional help should be available whenever requested at an affordable rate;
     
  • Open files should be backed up;
     
  • Many versions of files should be saved online, as opposed to only the last saved version; and
     
  • The online backup client software should verify the sent data for its correctness.

    Iron Mountain Digital is the world's largest provider of data backup-recovery and archiving software as a service. Iron Mountain offers a range of services for small and medium sized businesses, the company's web site says. Peachtree Online Backup partners with Iron Mountain for PC backup. .

    Disaster recovery infrastructures for small and medium businesses have become more affordable in the past year with disk-to-disk backup and server virtualization, techtarget.com reports. Other technologies that are available are storage networks and data deduplication technology, which automatically removes duplicate records. Microsoft, Intel Corp., and Advanced Micro Devices are building virtualization into their infrastructures and, "It's now relatively easy to implement for an SMB without huge depth of knowledge of virtualization," says Carmi Levy of Info-Tech Research Group Inc. in London, Ontario, according to cio-midmarket.com.

    Testing the disaster recovery plan is critical. Access to the company's system should be restored and the data should be retrieved from off site storage. Changes to the IT environment can affect the recovery, so testing every six months or every year will be needed to ensure that the recovery plan functions in the current environment. Managers and staff should be fully involved in testing.

  • "How to protect data - a quick reference," AccountingWeb, April 2008 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=103784

    The latest technologies and gadgets make it incredibly easy for your data to be stolen from right under your nose, unless you take steps to protect it. Nick Lowe, from Check Point Software, reports.

    The ability to move massive amounts of information between PCs and portable storage devices means that it's now incredibly easy for confidential data to be taken from companies without knowledge or consent

    The perpetrators of such crimes are rarely stereotypical hackers, attacking systems via the internet from their mafia headquarters or their student dorms. Instead, the data thieves are frequently much closer to home. Unescorted visitors, for example, or temporary staff who have joined the organization purely to copy data and hand it over to a competitor. Or, as is becoming increasingly common, unhappy staff who are about to resign but think it's a good idea to first take copies of anything which might be useful in their new job. And lastly, innocent employees who simply don’t follow security policy, copy work files to take home and lose the unprotected storage device.

    Unguarded USB ports on today's PCs are perhaps the biggest threat to corporate IT security. USB memory sticks can typically store up to a gigabyte of data, but an MP3 player, smartphone or PDA can be just as effective for the data thief as they can all be quickly connected to any PC via a USB cable without the need for any driver software to be installed (and therefore, without the need for the thief to be logged in as an administrator).

    A few drags and drops, and the deed is done in a few seconds. Where the amount of data to be stolen is beyond the capacity of an iPod or PDA, external USB drives comprising half a terabyte of storage are now available on the high street for less than a hundred pounds.

    USB devices aren't the only way in which information can be stolen electronically, of course. Most mobile phones nowadays include a camera, which can be used to quickly make an electronic copy of a printed page.

    Pocket OCR wands and portable scanners offer similar facilities to the opportunistic data thief who stumbles across a confidential printed document. Or he could simply make a photocopy of a document and put it in the post. However, using any of these methods to steal large quantities of data is simply not practical because of the time required. Controlling the use of USB devices is of far greater importance.

    While the disgruntled employee is a prime suspect in many data thefts, actions by former employees should also be considered in your data protection plans. Do all of your users’ accounts and passwords get deleted as soon as the person leaves the company or changes department? Failure to delete such information isn’t just dangerous, but might also mean that you fall foul of the Data Protection Act by storing personal information that you do not need to retain.

    To reduce the problem of data leakage in your company there are three effective strategies. First, ensure that you have a policy which clearly states who is allowed to take data off-site, and how the data must be protected when it’s away from your premises.

    Second, ensure that data doesn't leave the building without your knowledge. Finally, ensure that data which needs to be removed from the building is protected so that it can’t fall into the wrong hands.

    To control which data files leave your premises in the first place, set up user accounts on servers and workstations so that employees can't access information which they have no need to see. Those in sales and marketing, for example, probably don't need access to the product development department's files on the server, so set the access permissions accordingly.

    Over-use of rules and regulations can lead to low morale, however, if the workforce feels that it clearly can't be trusted. Beware of becoming seen as Big Brother. It won't drive the data thieves away, but simply make them more determined.

    It's also well worth investing in a port control product such as my company's Pointsec Protector, which can automatically block USB devices from being connected to your systems without authorization. The software also includes transparent encryption, so that information copied to USB devices is automatically rendered inaccessible to thieves.

    Normally you will want to prevent confidential files leaving your premises, but this won't always be the case. Sometimes, allowing staff to take files away is necessary and beneficial. Salespeople need access to product information when they're away from the office, and marketing people often prepare PowerPoint presentations for delivery at conferences and seminars. Staff need to take work home at the weekend if they're particularly busy, and preventing them from doing so will deprive the company of some useful effort (not to mention all that unpaid overtime).

    It's absolutely vital that you protect information which is taken off the premises. If a sales manager's laptop is stolen from the boot of her car, you need to be sure that the customer information on its hard disk can't be accessed by the thief. If your marketing manager's PDA goes missing while he's at a conference, can you be confident that the document containing details of next year's product launches won’t be accessible to whoever buys the stolen hardware?

    The solution to this problem is encrypting data. There are many products on the market, but ensure that the solution you choose is proven, transparent and automatic, eliminating user interaction and creating a fully enforceable solution that holds up to the most stringent compliance requirements. Deploying an encryption solution will improve the level of trust and loyalty of clients and employees who recognise that every effort is being made to protect their sensitive data and ensure that a lost or stolen device never results in a data breach.

    Bob Jensen's technology bookmarks are at http://faculty.trinity.edu/rjensen/Bookbob4.htm

    Bob Jensen's threads on total backup options are at http://faculty.trinity.edu/rjensen/Bookbob4.htm#TotalBackup


    Anita Campbell's Small Business Blog on the AccountingWeb --- http://www.accountingweb.com/blogs/anita_campbell_blog.html

    Bob Jensen's threads on blogging are at http://faculty.trinity.edu/rjensen/ListServRoles.htm


    TACKLING SMALL BUSINESS TECH ISSUES
    www.technology.inc.com

    From Smart Stops on the Web, Journal of Accountancy, July 2008
    This new site from Inc. magazine offers information on technological devices and trends of all stripes. Read articles on hardware, software, e-business, managing technology, networking, security, and telecom and wireless. “Expert Corner” features posts by guests in areas such as content management, and “Technology Blog” provides news and views on topics ranging from America’s broadband efforts to notebook Blu-ray DVD players to cell phones. Plus, business leaders share firsthand experiences in Q&A format in the “Tech Talk” section.


    "Online Accounting Tools Still Come Up Short," Rob Pegararo, The Washington Post, May 22, 2008. Page D03 --- Click Here

    Few types of desktop software should be readier for replacement by the Web than personal finance.

    The concept behind these programs is sound: Track your income and expenses through automatic downloads from banks, credit card issuers and other financial institutions to show where your money's coming and going, and how much of it you're likely to have later on.

    But the market long ago calcified into a duopoly of programs, Intuit's Quicken and Microsoft's Money. As they've piled on the features, their usability has suffered. Many users, fearing an ordeal of bookkeeping, avoid them entirely. Those who have bought either program have been forced to ante up for new versions, at $15 to $90 each, when "sunset" policies cut older releases off from account-data downloads.

    It might seem that a simpler, cheaper alternative to these programs would have emerged on the Web, now that online shopping and bill payment have made people comfortable with managing money online. But the big Web companies have yet to craft such a thing.

    Fortunately, the absence of a shiny new Web application from Google or Yahoo doesn't mean the absence of hope for online alternatives to Quicken and Money. It may just mean you'll have to wait longer to find one that suits you.

    The most visible Web competitor so far has been the free Mint ( http://mint.com). Since its launch last fall, this Silicon Valley start-up has drawn 266,000 users, though founder Aaron Patzer did not say how many visit the site regularly.

    Quicken or Money vets may find Mint insultingly simplistic. It only links to banks, credit cards and investments and ignores most people's biggest debts (mortgages and car loans) and assets (homes and vehicles), making net-worth estimates impossible.

    Using Mint requires you to trust the site to safeguard your bank usernames and passwords, which you must save there before adding any accounts. You can't enter transactions by hand or upload Quicken or Money files. And you can't reconcile transactions against a monthly statement.

    But within those limits, Mint provides soothingly simple money-management tools.

    When tested with a bank account, two credit cards and three mutual funds, Mint automatically fetched the latest data, converted most gibberish in these accounts' downloads into real names and filed most entries in the right category. For example, a credit card charge to "WHOLEFDS ARL 10042 0ARLINGTON" became "Whole Foods," listed under "groceries."

    It was even smart enough to split fees on ATM withdrawals into separate expenses.

    Mint then broke down patterns of income and expenses into easy-to-read pie charts.

    Mint aims to make money by suggesting better financial services, then collecting commissions. But its advice to drop an American Express card for a Chase Visa ignored the AmEx card's cash rebate.

    Two other sites have begun grabbing users as well. The free Wesabe ( http://wesabe.com), an older Silicon Valley start-up, acts like a money-minded social network.

    It makes the collective wisdom of its users part of its source code, comparing your spending and earning with the averaged habits of more than 100,000 other "Wesabeans." It also relies on their accumulated input to refine and sort statement entries and offer tips about better deals near you.

    But Wesabe may need more users (at least near Washington) to do those jobs well. Most downloaded transactions came through in their original, cryptic bankspeak, and some tips showed a Bay Area bias.

    This site's free-form system of tagging, in which you can slap multiple categories onto a single transaction, also yielded duplicate entries in its spending summaries.

    Wesabe (which plans to underwrite its free service with a fee-based "pro" option) is even more limited than Mint. It couldn't connect to a Bank of America Visa credit card account, and it doesn't do investments or home or car loans.

    In Wesabe's favor, it offers free Mac and Windows uploader programs that keep your account logins on your computer and offers multiple ways to get your data off the site. It even posts a toll-free number that you can call to reach its chief executive each afternoon.

    Wesabe may appeal most to extroverts with specific financial goals who can easily set targets and solicit fellow users' advice in its forums.

    One of the newest Web-based personal finance tools comes from Intuit, which in January launched the $2.99-a-month Quicken Online ( http://quickenonline.com). Although this site isn't as slick or quick as Mint or Wesabe, it supports investments and mortgages, not just banks and credit cards.

    Unlike Mint and Wesabe, it also lets you add coming transactions -- no risk of forgetting the check you wrote to your contractor-- and set bill-payment reminders.

    Some basic features, such as transaction breakdowns and the ability to upload Quicken files or download data from the site, still aren't there. But its simplicity makes the gridlocked complexity of desktop Quicken look painfully obsolete.

    These sites and other competitors promise tantalizing upgrades. For example, Mint says it will soon add mortgages, with estimates of home values from Zillow.com or another assessment source.

    With such improvements, some smart borrowing (picture Mint's interface plus Wesabe's social smarts) and a solid record of security, Web personal-finance software could become an alternative along the lines of Web e-mail. Some people might never accept such a thing, but others wouldn't think of using anything else

    Jensen Comment
    Pegararo failed to research online complete Webledger systems such as Net Suite and other important sites that will not only perform accounting functions, manage inventories, manage receivables, perform financial analyses, and do all sorts of sophisticated financial analyses. These Webledger systems will also store accounting records so they can be accessed all over the world and allow users to avoid paying for expensive hardware/software technical support, backup systems, and consultants --- http://faculty.trinity.edu/rjensen/Webledger.htm

    Pegararo also fails to mention many of the personal finance Web options and small business accounting options:

    http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

    http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness

    Pegararo might not have found the Web options coming up short if he'd done more research for the above article.

     


    Marketing Sites for Small Businesses

    From the Journal of Accountancy Smart Stops on the Web in April 2008 --- http://www.aicpa.org/pubs/jofa/apr2008/smart_stops.htm

    PRACTICE DEVELOPMENT

    MARKETING KNOW-HOW
    http://tinyurl.com/2g7bwv

    Looking to attract new clients or increase your firm’s visibility? Visit this Smart Stop to access the AICPA’s “CPA Marketing Tool Kit,” part of the Institute’s public accounting firm resources. The collection offers customer service and selling tips, client satisfaction surveys, PDF brochures and guidelines for becoming a media resource. The marketing guide includes a sample e-newsletter template, do’s and don’ts when creating and marketing a Web site, and e-mail marketing tips.

    BE A PROMOTION GURU
    www.marketingsherpa.com

    Find case studies on what works—and what doesn’t—when it comes to marketing your business on this site from MarketingSherpa. The research firm also provides how-to articles and interviews with marketing directors in both business-to-business and consumer marketing. Click the “Browse by Topic/Brand” tab for a complete listing of articles by industry or target, such as “Marketing to Small Businesses” or “Business Services Marketing,” or tactic, such as “Integrated Campaigns” or “How to Pitch to Business Media.

    MARKET PROFESSIONAL SERVICES
    www.legalmarketingblog.com

    Don’t let “legal” throw you off—this site’s client communication and marketing tips can be applied to CPA firms wanting to expand their service offerings or client base. Author Thomas Kane, Esq., the principal of Kane Consulting Inc., has served as an in-house marketer for several firms. Check out articles like “Guarantee Client Referrals With Good Client Relations” and “Narrow Your Niche for More Effective Marketing,” or explore the Web’s marketing resources using Kane’s extensive library of marketing and firm blogs.

     

    GENERAL INTEREST

    LINK AND GO
    www.taxsites.com

    First appearing in this column in October 2004, this index of tax, accounting and payroll specific sites underwent a complete redesign recently. The new site features an expandable navigation tree and improved search capabilities using a Google custom search. There is also quick access to the site’s most commonly requested pages—including federal and state tax forms—as well as links to industry associations, certification information and software vendors.

    LEAD BY EXAMPLE
    www.calcpa.org/forum

    Corporate CPAs and financial executives: This leadership forum from the California Society of CPAs and the California CPA Education Foundation is for you. The site provides executive education, advanced training in finance and business management, thought leadership, helpful resources and professional peer networking. The site also features opportunities such as participation in economic forums, CFO of the Year events and local roundtable discussions, which are listed in the “Upcoming Forum Events” section. You can read articles, such as how-tos with practical tips and Q&As with other leaders in the field. There is also a section featuring news on such hot topics as the XBRL taxonomy and new PCAOB standards.

     

     


    Small Business Accounting for Managers Who Want to Learn Accounting Basics

    I am very biased. I think small businesses should make more use of Webledgers (accounting systems on the Web) to do their accounting rather than mess with their own systems or, in many instances, local bookkeeping service firms. Key advantages and disadvantages of Webledgers can be found at http://faculty.trinity.edu/rjensen/Webledger.htm
    In particular I recommend NetSuite --- http://www.netsuite.com/portal/home.shtml

    Of course there are many software options for small businesses that want to manage their own accounting systems. Price generally varies with the level of sophistication. For example, software for managing receivables, inventories, and payroll generally costs more. There are also some free accounting software alternatives --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware

    There are also very elementary textbooks introducing managers to the basics of bookkeeping and accounting. Some of them are free online --- http://faculty.trinity.edu/rjensen/ElectronicLiterature.htm#Textbooks

    There are also elementary textbooks from virtually all textbook publishers. There are also some accounting books and services targeted for small businesses --- http://faculty.trinity.edu/rjensen/Bookbob1.htm#SmallBusiness

    One publisher recently sent an email message about a small business accounting book called Radical Accounting. It claims to have a nontraditional learning approach. It is not a free online textbook --- http://www.radicalaccounting.com/index1.php

    Bob Jensen


    ALPFA:  The Association of Latino Professionals in Finance and Accounting offers career and community resources --- http://www.alpfa.org/


    How can poor people of the world learn how to get financing?
    International Finance Group
    ---  http://www.ifc.org/


    "The Role of Small and Large Business in Economic Development,"  by Kelly Edmiston, The Kansas City Federal Reserve, June 2007 --- http://www.kansascityfed.org/PUBLICAT/ECONREV/PDF/2q07edmi.pdf 


    "5 Start-Up Mistakes Entrepreneurs Should Avoid," AccountingWeb, April 20, 2007 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=103434 


    In the Name of Entrepreneurship? The Logic and Effects of Special Regulatory Treatment for Small Business (a 368 Rand Corporation Report on ways to stimulate and improve entrepreneurship, December 2007) ---  http://www.rand.org/pubs/monographs/2007/RAND_MG663.pdf


    Small Business Helpers
    Smart Stops on the Web, Journal of Accountancy, March 2008 --- http://www.aicpa.org/pubs/jofa/mar2008/smart_stops.htm

    SMALL BUSINESS

    SOX ASSISTANCE
    www.sec.gov/info/smallbus/404guide.shtml

    This site features content from the SEC’s Sarbanes-Oxley Section 404—A Guide for Small Business, a publication for small public company managers and their auditors as they begin to assess internal control over financial reporting. Sections such as “What Constitutes Effective Internal Controls?,” “Identifying Financial Reporting Risks and Controls That Address Them,” and “Do Your Controls Work in Practice?” guide small business managers through the assessment process for the first time. The complete guide is also available in a printable version.

    FOCUS ON SMALL FIRMS
    http://pcps.aicpa.org

    Visit the AICPA’s PCPS Firm Practice Center for the most recent installment of Small Firm Solutions, a new e-newsletter for small firms and sole practitioners. The quarterly publication, part of the Institute’s “Small Firm Advantage” initiative, features “Hot Topics for Small Firms” from James Metzler, CPA, AICPA vice president–Small Firm Interests. The site hosts a collection of helpful resources from the Small Business Administration on startup businesses and on managing existing businesses. PCPS members can also access the “Risk Assessment Standards Toolkit” for SAS nos. 104–111, as well as small firm marketing brochures.

    LEARN FROM EXPERIENCE
    www.smallbiztrends.com/resources/the-experts

    Here, dozens of small business experts share their wealth of knowledge in articles, interviews and book reviews. A pull-down menu lets you choose information in your area of interest or by specific expert. These business owners and guest columnists offer information on topics such as globalization, Web design, employment trends and sales. You can also link to other small business resources, subscribe to the twice-monthly Small Business Trends newsletter and comment on articles.

    SMALL BIZ SUPPORT
    www.sba.gov/advo

    Stay current on federal regulatory policies and proposals—including Sarbanes-Oxley compliance deadlines for small public companies—that could affect your small business clients at this Smart Stop from the Small Business Administration. You can electronically subscribe to the Office of Advocacy’s newsletter, The Small Business Advocate, or sign up for RSS feeds of regulatory news and research, such as state economic profiles and banking and financial research. There is even a complete chronology of the organization’s Sarbanes-Oxley activities at www.sba.gov/advo/laws/comments/sarbanes_oxley.html.

     

    GENERAL INTEREST

    WORD OF MOUTH
    www.automatic-referrals.com

    Written by Miriam Lawrence, director of Horsemouth, a business-building resource for financial advisers, the site provides tactics and tips for professionals who use referrals for business development and growth. Find articles such as “Five Great Times to Ask for Referrals” and “Keep a Referral Scorecard,” or catch up on Lawrence’s “ABCs of Automatic Referrals” series, which starts with “A is for Action” and works through the alphabet, including “K is for K.I.S.S. (Keep It Simple and Specific).” The site also touches on topics such as client service and relationships, marketing and communicating value.

    FINANCIAL REPORTING PORTAL
    www.financialexecutives.org/blog

    Find news highlights from the SEC, FASB and the International Accounting Standards Board on this financial reporting blog from Financial Executives International. The site, updated daily, compiles regulatory news, rulings and statements, comment letters on standards, and hot topics from the Web’s largest business and accounting publications and organizations. Look for continuing coverage of SOX requirements, fair value reporting and the Alternative Minimum Tax, plus emerging issues such as the subprime mortgage crisis, international convergence, and rules for tax return preparers.

    GETTING A CLUE
    http://10qdetective.blogspot.com

    The mission statement says it all: “It is the job of the 10Q Detective to dig through businesses’ 8-K and 10-Q SEC filings, looking for financial statement ‘soft spots.’ ” The blog, run by David Phillips, a financial statement analyst, features several posts a week, including investment news, opinions, trading alerts and stock alerts. There are also links to financial Web sites, corporate governance news, educational sites and other investment-related blogs.

    —Megan Pinkston

    39 Free QuickBooks Online Tutorials ---
    http://fitsmallbusiness.com/free-quickbooks-online-tutorials/
    Thank you Crystalynn Shelton and Kristian Rivera --- |
    http://fitsmallbusiness.com/category/accounting/


    Small Business Helpers from Smart Stops on the Web
    Journal of Accountancy, December 2007 --- http://www.aicpa.org/pubs/jofa/dec2007/smart_stops.htm

    A” FOR ADVICE
    www.sba.gov/services

    Whether you’re a CPA with small business or sole proprietor clients or you’re interested in leading your own firm, the Small Business Administration is here to help. This Smart Stop offers free online training in business planning and management, marketing and advertising, federal taxes, compliance and cyber security. Prepare for the future with guidance on disaster planning, contract opportunities and loan eligibility. Looking for a more personal experience? Use the site to locate the nearest Small Business Development Center or Women’s Business Center.

    PLANNING FOR THE FUTURE
    www.finance.cch.com/tools/calcs.asp

    With plenty of day-to-day responsibilities, it’s hard for small business owners to step back and look at the big picture: their financial future. Take some time to use CCH’s Financial Planning Toolkit, which provides resources on commercial loans, working capital and profit margins, as well as dozens of calculators for debt management, investments, tax and personal finance. Click on “Planning Guide” and “Planning Tools” for guidance on risk management, taxes, retirement and estate planning, including “Ages and Stages Approach to Investing” and “Tax Year and Accounting Methods.”

    GET SMART
    www.tutorials.com

    This site delivers how-tos for life and work right to your desktop. You can purchase courses that help you master a computer program, build a Web site or learn how to negotiate successfully. Its skills training offerings include series of courses on sales and organizational development, personal finance and Internet marketing. Free offerings include step-by-step guides ranging from the everyday—how to clean your computer or how to remove spyware—to the workday—how to identify your customers or choose office

    Human Resource Calculators (cost of employee turnover, productivity losses, relocation losses, etc.) --- http://www.hrworld.com/calculators/badhire/

    The home page for human resource management is at http://www.hrworld.com/

    Bob Jensen's links to calculators --- http://faculty.trinity.edu/rjensen/Bookbob3.htm#080512Calculators

     


    From Smart Stops on the Web, Journal of Accountancy, July 2007 ---
    http://www.aicpa.org/pubs/jofa/jul2007/news_web.htm

    SCORE SMALL BUSINESS ADVICE
    www.score.org

    Since its first appearance here in June 2003, the SCORE Association site has expanded its e-mail counseling service to include 1,300 volunteer counselors, ready and willing to give unbiased and confidential business advice to small-firm CPAs and sole practitioners. Click on “Ask SCORE” to receive Web-based advice or type in your ZIP code to find a local office. For general business questions, browse for quick answers on the “Top 5 Tips” or “60 Second Guides” pages.

     


    "Smart Stops on the Web," Journal of Accountancy, January 2008 --- http://www.aicpa.org/pubs/jofa/jan2008/smart_stops.htm

    PERSONAL FINANCIAL PLANNING

    CENTER IN ON PFP SERVICES
    http://pfp.aicpa.org

    Want to offer financial planning services to your clients? Visit the AICPA’s Personal Financial Planning Center for PFP resources to get you started. Click the “Events” tab to register for Web seminars, including “The Mathematics of Estate Planning” on Jan. 16, or research the requirements and application process for the Personal Financial Specialist credential. In the upcoming months, the section’s Executive Committee will roll out a suite of updated practice guides on various PFP technical and practice management topics, available to PFP Section members and PFS credential holders at no cost.

    STRAIGHT FROM THE SOURCE
    www.treasurydirect.gov

    Individuals and financial institutions can buy and redeem Treasury securities, including bills, notes, TIPS and series I and EE savings bonds, directly from the U.S. Treasury at this Smart Stop. Not confident enough to invest yet? Enter the “Individuals” or “Institutions” sections, and then use the “Research Center” to access a glossary of terms and in-depth coverage of auctions and products or to take a guided tour of the site. There is also a calendar of upcoming Treasury auctions, as well as auction regulations and recent results.

    STAY DEBT-FREE
    www.moneycrashers.com

    At this “Guide to Financial Fitness,” author Erik Folgate chronicles his experience with getting into and out of debt, providing recent graduates and young professionals with the education needed to be financially successful. Follow the “11 Principles” series, which includes tips on saving money for the unexpected and creative ways to boost your income, or read articles on financial planning, such as “Don’t Let Your Fears Stand in the Way of Investing” and “Stay Positive When Paying Off Debt.”

     

    GENERAL INTEREST

    ERISA EDUCATION
    www.dol.gov/elaws/ERISA/Fiduciary.htm

    Developed by the Employee Benefits Security Administration, this site’s fiduciary adviser provides an overview of the basic fiduciary responsibilities applicable to private-sector retirement plans under the Employee Retirement Income Security Act (ERISA). Designed for accountants and other third-party service providers, the adviser uses a series of questions to determine whether a retirement plan falls under ERISA requirements, and if so, what they are. This Smart Stop also has a comprehensive listing of ERISA resources at www.dol.gov/elaws/ebsa/fiduciary/resources.htm.

    FLY HAPPY
    www.yapta.com

    Whether you’re planning a vacation months in advance or jetting off for a last-minute business trip, use Yapta as “Your Amazing Personal Travel Assistant.” Registered users tag their desired or frequently traveled flights, then are alerted by e-mail when the prices of those routes drop. Already bought a ticket? If you booked through an airline’s Web site, submit your confirmation code or forward Yapta your confirmation e-mail. If the ticket price drops below what you paid, the site will let you know whom to call and what to say to receive a refund for the difference or a travel voucher.

    STUDENT INSIDERS
    http://njscpa.typepad.com/examcram

    What does it take to become a CPA these days? Follow a few New Jersey Society of CPAs student members, who are chronicling their trials, tribulations and triumphs on the society’s Exam Cram blog. Browse the archives to read Scott Sandford’s journey as he studied for and took the CPA Exam while working at Deloitte, or join the NJSCPA’s new student recruit, Priscilla Jenkins of Merrill Lynch & Co. in Pennington, N.J., as she sits for part of the exam in February. Also take some time to read Tomorrow’s CPA, a monthly
    e-newsletter for accounting students, written by accounting students, on the NJSCPA’s Students and Educators site (www.njscpa.org/students).

    GO GLOBAL
    www.jimhamiltonblog.blogspot.com

    Jim Hamilton, a principal analyst at Wolters Kluwer Law & Business and a leading contributor to the CCH Federal Securities Law Reporter, emphasizes SEC rulemaking, international, federal and state regulations, and industry trends on his “World of Securities Regulation” blog. Under “Tools,” click “Posts by Topic” for a complete listing of the blog’s auditing, financial reporting, Sarbanes-Oxley and PCAOB coverage, or look for new posts on principles-based regulations, the mortgage lending market and international issues.

    —Megan Pinkston

     

    A Government Website for Helpers in Personal Finance
    MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are planning to buy a home, balancing your checkbook, or investing in your 401k, the resources on MyMoney.gov can help you do it better. Throughout the site, you will find important information from 20 federal agencies government wide.
    My Money.gov --- http://www.mymoney.gov/

    The AICPA's Financial Literacy Helper Site --- http://www.360financialliteracy.org/

    Bob Jensen's finance helpers --- http://faculty.trinity.edu/rjensen/Bookbob1.htm

     


    From "Smart Stops on the Web," Journal of Accountancy, August 2007 --- http://www.aicpa.org/pubs/jofa/aug2007/news_web.htm

    CUTTING EDGE
    www.smallbusinessedge.com

    Both seasoned owners and potential entrepreneurs toying with the idea of opening a small business can use this Smart Stop to learn how to start, manage and grow a small business—or save one that’s in trouble. The site, home to Small Business Success, Leader, Urban Success and Winning Bids magazines, provides articles and resources on small biz financing, sales, marketing and technology, plus access to resources from its partners, including the Small Business Association, Inner City Economic Forum and the Association of Small Business Development Centers
    .

     


    HUMAN RESOURCES

    EASY DOES IT
    www.simplyhired.com

    Many of us may not consider a job search “a simple yet effective, enjoyable journey,” but that’s exactly what the creators of this vertical employment search engine strive to provide. The site features millions of positions fed from thousands of job boards and HR sites. You can easily refine searches by job type, work experience, education and date posted with a single click of your mouse. Through partnerships with Working Mother, Care2 and RetirementJobs.com, to name a few, the site offers specialty searches that limit results to mom-, eco- and 50-plus-friendly companies, respectively.

    UNCLE SAM IN YOUR OFFICE
    www.workplacefairness.org

    Brush up on your legal rights regarding whistleblowing, privacy and non-competition agreements, plus a host of other employment laws, at this site from nonprofit group Workplace Fairness. It presents information, resources and publications on employee rights—free of legal jargon—at the state and national level. Check out “The Issues” tab, which tracks high-interest topics of healthcare, retirement and work/life balance, or click on “Features” to sign up for the group’s two e-newsletters, Workplace Week and In the News.

    TAP THE TAX COMMUNITY
    www.taxtalent.com

    As a portal for tax professionals looking for tax positions, employees, training events and career management information, this site is a Smart Stop for all members of the tax sector. Looking for a mentor or protégé? How about a local tax conference? Visit the “Career Tools” page for access to the mentor forum or to search tax events by specialty, date or location. Employers can search resumes to fill permanent or contract positions, post job listings or request a salary benchmark survey, which provides a view of the current compensation landscape, to use when setting compensation policies, hiring or creating new positions.

    A BETTER WAY TO WORK?
    www.culturerx.com

    This site is the home of work force management initiative ROWE, or the Results-Only Work Environment. In this result-oriented work style, founded by former Best Buy employees Jody Thompson and Cali Ressler, workers “do whatever they want whenever they want as long as the work gets done.” Under the program, employees are not judged on how they spend their time, but only evaluated on the end result, eliminating what Thompson and Ressler define as “sludge, or any negative language in the workplace that is used to cast judgment, place guilt or add stress.”

     


    "Small Business Survival Index Released," AccountingWeb, November 13, 2006 ---
    http://www.accountingweb.com/cgi-bin/item.cgi?id=102782

    The Washington-based Small Business & Entrepreneurship Council (SBEC) released their 2006 small-business survival study last week. The Warren (Ohio) Tribune Chronicle reports their results compare states for the tax, spending, regulatory and litigation burdens, according to the council’s chief economist Raymond Keating.

    Small businesses and the spirit of entrepreneurship are important for our economy. Any policies that affect the health and growth of businesses should be examined more closely for obstacles to this sector’s vitality. According to the Small Business Survival Index, some of the contributions of small businesses that make them the backbone of our economy are listed below:

    • 99.9 percent of all U.S. businesses have fewer than 500 employees, while nearly 17,000 businesses employ greater than 500.

       

    • Small companies can account for more than 50 percent of nonfarm private GDP.

       

    • Small firms created 1,990,326 net new jobs, while larger firms employing over 500 lost 994,667 net jobs.

       

    • Small businesses also produce 13 to 14 times more patents per employee than larger firms and the patents are more likely to be in the top one percent of the most cited patents.

    The Index saw three new measurements added in 2006, according to the SBEC. Two government-spending indicators and another that examines how each state protects private property were added, according to Tribune Chronicle. The SBEC’s home state of Ohio came in at number 37 in the state ranking by tax burden, while the top ten were geographically diversified:

    1. South Dakota
       
    2. Nevada
       
    3. Wyoming
       
    4. Washington
       
    5. Florida
       
    6. Mississippi
       
    7. Alaska
       
    8. Alabama
       
    9. Texas
       
    10. Michigan

    Their mission statement found on the SBEC Project Vote Smart web site reads, “The Small Business & Entrepreneurship Council works to influence legislation and policies that help to create a favorable and productive environment for businesses and entrepreneurship. By educating policymakers, legislators, the media and the public about the critical role that small businesses play in our economy—and how government actions can positively or negatively affect the small business community—SBSC strives to establish a solid public policy foundation upon which entrepreneurial activity and small businesses can survive and flourish.”


    A Helper Site for Starting a New Business ---
    http://www.startupnation.com/index.asp

    United States Small Business Administration http://www.sba.gov/ 

    From the NY Public Library
    Small Business Video Seminar --- http://www.nypl.org/research/sibl/smallbiz/video.html

    The Small Business Knowledge Base at BizMove.com --- http://www.bizmove.com/ 


    Update on New Business Initiatives that Do Involve CPAs
    Following the success last year of its award-winning "Explode with Growth" Superforum featuring "Dragons’ Den" entrepreneur Duncan Bannatyne, Ignite Scotland has relaunched its quarterly Business Builder Forum programme for Ayrshire business people. Ignite Scotland is the brainchild and offshoot of Irvine-based chartered accountants Robert J Hart & Co, and has a growing reputation and track record in assisting business owners achieve enhanced profit performance.
    "Accountants RJ Hart & Co Demonstrate Ways to Expand Businesses," PRWeb, July 24, 2006 --- http://www.prweb.com/releases/2006/7/prweb415303.htm


    From the Smart Stops on the Web, Journal of Accountancy, January 2007 --- http://www.aicpa.org/pubs/jofa/jan2007/news_web.htm

     

    The Health Benefits Adviser
    www.dol.gov/elaws/ebsahealth.htm
    This Web site of the U.S. Department of Labor’s Employee Benefits Security Administration has all the information employees and employers need to know about federal laws related to workforce health benefits. There are discussions on COBRA continuation health coverage, a glossary of benefits terms and guidance for employees on Medicare eligibility. Publications offers 10 ways to make your health benefits work for you with a detailed review of your coverage.

    Get the Word Out
    www.givetogetmarketing.com

    Business marketer Joe Gracia’s home on the Web offers entrepreneurs and small businesses hundreds of marketing tips. Read advertising case studies, get low-cost promotional ideas and tips for writing attention-grabbing headlines. Find five ways to attract Web visitors, read marketing myths and get tips from David Letterman and Jay Leno on how to grow your sales.

    Cybersafety First
    www.staysafeonline.org

    Is your PC secure from threats? This site’s self-assessment quiz will show just how safe your computer is. Get eight cybersecurity best practices, links for protecting your children when they’re online and tutorials on cybersecurity and data recovery for small businesses. Research business cases on computer security in accounting firms and manufacturing companies and access self-assessment guides and checklists.

    Go to the Guru
    www.actionplan.com
    Marketing strategist Robert Middleton shares tactics for getting your business noticed at his Web site. Register for the 24-page marketing plan workbook and information on how to attract new clients, develop a core marketing message and write an executive summary for your business.


    From Smart Stops on the Web, Journal of Accountancy, March 2006 ---
    http://www.aicpa.org/pubs/jofa/mar2006/news_web.htm

    SMALL BUSINESS SITES

    Be Your Own Boss
    www.abcsmallbiz.com
    CPAs thinking of going out on their own should bookmark this URL for start-up basics including information on Small Business Administration funding and venture capital. Find a nine-part series on how to write a winning business plan, links to state business assistance e-stops and a hiring checklist. Money Matters has articles on home-office deductions and tax planning. For lighter fare read the Funny Pages.

    Small Biz Banter
    www.businessforum.com
    Read commentaries and case studies on cash management, corporate governance and Sarbanes-Oxley at this Smart Stop. Also find articles on banking, family-owned businesses, fraud and security, the 2004 Securities Class Action Filings Study and a six-part series on women business owners. Small and emerging companies can find IT answers and virus update alerts.

    Start-Up Basics
    www.businesstown.com
    CPAs advising entrepreneurs and small business owners can find information on credit and collections, projections and purchasing and cost control in the accounting link at BusinessTown’s home page. Each category has links to articles, a featured book and related Web sites. Other sections offer a business loan glossary, business plan templates and overviews on corporations, partnerships and sole proprietorships.

    Spotlight on the Soloist
    www.fortune.com/fortune/smallbusiness
    CPA sole practitioners and small business advisers can find free articles from Fortune Small Business here. Topics include building business back up after a disaster, the winners of Fortune’s student business-plan contest and entrepreneur profiles. The site also offers a start-up resource guide and a list of the top 50 small-cap stocks.

    Templates and Tools
    www.morebusiness.com
    This Web stop offers entrepreneurs information on everything from raising capital to retirement planning. The Templates section includes sample business and marketing plans and checklists on buy/sell agreements and data warehousing. Business How-Tos gives visitors tips on building their own Web sites and marketing their services. Also check out the site’s large collection of financial calculators to estimate the alternative minimum tax and estate tax, car lease payments and long-term investment yields.

     


    "Small Business Software Grows Up:  Intense efforts for product improvements, by J. Carlton Collins, The Journal of Accountancy, March 2006 --- http://www.aicpa.org/pubs/jofa/mar2006/collins.htm 

    EXECUTIVE SUMMARY
    Microsoft’s introduction this year of its small business accounting software is challenging the two leading competitors—QuickBooks and Peachtree—to step up their efforts with products that are ever-more technologically powerful.

    The competition will be intense because “Microsoft Small Business Accounting (MSBA) is technologically more advanced than either QuickBooks or Peachtree and its price strategy is hard to beat: It’s bundled free in selected 2006 versions of Microsoft Office. With more than 400 million users of Microsoft Office worldwide, even if only a small percentage of them upgrade to the 2006 version, the new accounting program could be in the hands of millions of users by the end of the year.

    With products as complex and customizable as SBA software, it’s not prudent to rely fully on assessments of reviewers or colleagues. The only way to be sure a product works best for you or a client is to test it with your own accounting data.

    If you’re going to buy QuickBooks or Peachtree, purchase the accountant’s editions. They contain nearly all the additional functionality found in the various other versions of the product and they’re typically priced lower.

    The stakes in the competition for small business accounting software are high. The current estimated market of small businesses is between 15 million and 25 million, with 500,000 to 2 million new businesses starting each year. Clearly, small businesses will be the winner as their accounting tools continue to improve.

    Bob Jensen's threads on accounting software are at http://faculty.trinity.edu/rjensen/Bookbob1.htm#AccountingSoftware


    Employment Law  --- http://www.lawmemo.com/ 

    Law & Legal Research Center - http://www.cpanet.com/up/s0210.asp?ID=0575

    FindLaw - http://www.cpanet.com/up/s0210.asp?ID=0576

    Legal Professional Site Links --- http://www.chooselaw.com/

    Center for Science in the Public Interest --- http://www.cspinet.org/

    Bob Jensen's threads on law and legal studies --- http://faculty.trinity.edu/rjensen/Bookbob2.htm#Law


    From Smart Stops on the Web, Journal of Accountancy, November 2006 --- http://www.aicpa.org/pubs/jofa/nov2006/news_web.htm

    HUMAN RESOURCES SITES
    Staff Smart
    www.adphire.com

    CPAs responsible for filling open positions will want to check out Automatic Data Processing Inc.’s (ADP) Web site for its calculator that determines the cost of a bad hire and of high turnover. The site also offers free information on screening candidates and adhering to compliance rules for background credit and criminal records checks. Register for free to get ADP’s Smart Hire newsletter and to access articles in the HR Library.

    On the Boards
    www.citehr.com

    If you’re looking for guidelines and tips on human resources topics, sign up for free at this Web stop to access the discussion boards. The Human Resources section covers topics such as compensation and benefits, motivation and improvement, knowledge management, payroll, HR software options and staffing. Read questions and responses from professionals in the field worldwide.

    HR Know-How
    www.hrconsult.com

    This Florida-based company’s home on the Web features free monthly articles on the new role of the HR professional, how to get the best performance out of your team and whether flex-time is the answer to attract, recruit and retain talent. Subscribe for free to the HR Times e-newsletter or click on Links for benefits and compensation, compliance, labor law and recruiting resources.

    Succeed at Succession
    www.managementhelp.org

    In addition to a general Human Resources Management section, this Smart Stop includes a seven-step succession plan and tips on how to prepare your firm’s next generation of leaders. The Human Resources Management link has free online training programs, a field guide for leadership and supervision, and advice on employment law compliance, personnel policies and employee training.

    It’s All Relative
    www.familybizz.net

    CPAs who need help with succession planning for their family-owned-firm clients will be interested in the Family Business e-newsletter, as well as the article on the seven development stages of succession. Users can find advice on how to bring in the next generation and case studies on succession to nonfamily members. Professionals worldwide share their experiences on working with family-owned businesses in the 60-Second Interview section.

    GENERAL INTEREST SITES
    Pound the E-Pavement
    www.accounting-employment.com

    Whether you’re looking for an entry-level accounting position or a move up the ladder from your current one, this Smart Stop lets you post your resume and search full- or part-time job listings from Fortune 1000 companies and in forensic and government accounting. Users can link from this site to Worktree.com, where there are articles on how to write a winning cover letter and resume, 13 interview mistakes to avoid and how to negotiate a salary increase.

    A Collaborative Effort
    www.wikicpa.com

    If you’re a CPA with tips on how to better the quality of your work, then share them here. This knowledge repository lets registered users post articles on accounting topics including attestation, business law, ethics, taxation and technology. Research or add definitions to a glossary of accounting terms and download articles such as one with seven fraud-prevention tips.

    Come Blow Your Horn
    http://ideasiteforbusiness.com

    Find out whether your current marketing plan needs an overhaul here. Sole practitioners and small-firm marketers can get ideas and guidance here on how to advertise their services. Learn the pros and cons of employing captioned cartoons and comic strips, read detailed discussions on how best to use print ads, or create an eye-catching corporate logo and an on-target brochure.

    Big Advice for Small Businesses
    www.fryarmg.com

    The Fryar Management Group’s Web site offers accounting, tax and general business advice for small firm owners. There’s a free newsletter with guidance on avoiding identity theft, estate tax facts, retirement fund options and how-tos for shifting investment income. The Finance and Paycheck Calculators can determine loan payments and retirement income. The Tax Center has links to a state refund tracker and a tax due date calendar.

    Plan Tomorrow Today
    www.lifesbridge.com

    Retirees trying to answer the question, “What do I do now?” can get expert advice from retirement planner and coach Bruce Macdonald at his Web spot. Sign up for the free Age of Fulfillment e-zine, with discussions on what to do if you suddenly find yourself single at retirement, whether marriage and retirement mix and how to navigate the emotional ebb and flow of having too much free time.


    From Smart Stops on the Web, Journal of Accountancy, September 2006 --- http://www.aicpa.org/pubs/jofa/sep2006/news_web.htm


    CAREER BUILDING SITES
    Value for Your Business
    http://bvfls.aicpa.org
    The AICPA’s Business Valuation and Forensic Litigation Services Center offers members case studies on fraud schemes, a practice management toolkit and a definition of the month. Read the full text of an exposure draft on valuation service standards and get tips on how to conduct an inquiry interview or an interview with a CEO or CFO. Help your clients develop internal controls with a risk management checklist and a list of common auditing deficiencies.

    Answers for Accountants
    www.forensicaccounting.com
    CPAs interested in switching to investigative and forensic accounting can get an overview here from Alan Zysman, CA and certified fraud examiner, of Toronto’s Zysman Forensic Accounting Inc. His to-the-point e-site offers a detailed explanation of what it takes to become a forensic accountant and how to approach assignments. Also get an overview of investigative accounting and litigation support.

    A Valuable Site
    www.bvresources.com
    Looking for information and news on business valuation? Visit this Web stop for BVWire, a free weekly update with the latest valuation court cases, practice tips, a definition of the week and questions and answers on valuations of start-ups. There’s also free downloads of IRS BV guidelines, an international glossary of terms and free issues of the newsletter Business Valuation Update, as well as links to other BV associations such as the AICPA and the Appraisal Foundation.

    What’s It Worth?
    www.cbiz.com
    The e-calculators here can help you determine cash flow, financial ratios and business valuation as well as estate tax, retirement planning, investment returns and 401(k) savings. The Tax section has a 1040 calculator and the Tax Planning Update newsletter offers advice on how to reduce estate taxes and draft buy-sell agreements. Users also can get marketing tips and links to franchise and small business opportunities.

    M&A How-Tos
    www.mergerplace.com
    Free membership to this e-stop gets CPAs and their entrepreneurial clients a valuation guide with tips on business appraisals and pitfalls associated with them. Users can find a due diligence checklist, simple- and long-form nondisclosure agreements and a buyer profile. The Resource Center offers the M&A Advisor with archived articles on e-mail strategies during an M&A, “Lessons for Dealmakers” and tips on small business valuations. Business Planning Tools includes sample business and marketing plans and e-calculators to determine cash flow and start-up costs.

    Tips for Tenderfoots
    www.tannedfeet.com
    Whether you’re starting an at-home business or just need a refresher course on the rules of the game, this entrepreneurs’ e-page offers checklists for starting a business, marketing plans, tips on how to write a contract and small business tax deductions you may be able to claim. Visitors also can find articles, links and discussions on immigration law and intellectual property, and advice on buying, building or leasing office space. Get a laugh or two in the Business Humor section as well.


    Private Sector Development --- http://psdblog.worldbank.org/psdblog/

    The Global Technology Revolution 2020 ---
    http://www.rand.org/pubs/technical_reports/2006/RAND_TR303.pdf

    An Agenda for Harnessing Globalization ---
    http://www.brookings.edu/views/articles/fellows/ghani20060901.pdf


    Small Business Helpers from Smart Stops on the Web, Journal of Accountancy, March 2005 --- http://www.aicpa.org/pubs/jofa/mar2005/news_web.htm

    Food for Thought
    www.businessownersideacafe.com
    “A fun approach to serious business” is the tag line here, with lively graphics and laid-back narrative that punch up its material. The Small Biz Tax Center helps clarify IRS tax and recordkeeping requirements and gives tips for start-up business owners. The CyberSchmooz “lobby” opens onto message forums on e-commerce, marketing and working at home. The Your Biz section includes a “fridge” full of business forms, e-mail protocols, marketing tips and even yoga instructions.

    Small Company, Big Resources
    www.allbusiness.com
    From forms for consulting and confidentiality agreements to advice on sales and marketing or using the Internet, this Web stop offers guidance to CPAs who advise start-ups and small businesses. The Business Plans section has articles such as “Common Business Plan Mistakes for Startup Companies,” while the Small Business Advice section provides tax basics. Users also can tap into an FAQ section or a business glossary or sign up for a free e-newsletter.

    A Dear Abby for Small Business
    www.score.org
    Since first listed here in June 2003, this site has added resources to its Business Toolbox section including a gallery of downloadable templates for bank loan applications, business plans and sales forecasts, as well as expanded links to such small business topics as finance, franchising and international trade. The Learning Center has a list of tips for business planning, marketing, public relations and office management.


    Acronym Search --- http://www.acronymsearch.com/

    Hyperology --- http://snipurl.com/Hyperology
    This site features a lot of things including coverage of tax and 401K/IRA deductions.

    Tips on how to deal with the new Bankruptcy Bill --- http://talkingpointsmemo.com/bankruptcy/

    Entrepreneurialism --- http://entrepreneurialism.group.stumbleupon.com/

    Guides for Employers from Smart Stops on the Web, Journal of Accountancy, June 2005, Page 33 --- http://www.aicpa.org/pubs/jofa/jun2005/news_web.htm
    For employee benefits, see http://www.aicpa.org/pubs/jofa/jul2005/news_web.htm

    Worldwide Directory of Accountants and Consultants --- http://www.searchsystems.net/list.php?nid=62

    Museum of American Finance --- http://www.financialhistory.org/

    Bob Jensen's helpers on how seek professional advice --- http://faculty.trinity.edu/rjensen/fees.htm


    A Family Affair (Helpers for Family Businesses)  www.family-business-experts.com 

    Web Site Development Tools for Small Business While a custom e-commerce solution will always make you happier, it takes time and resources to create. What should a small business owner do when he or she is in short supply of both? http://www.newmedia.com/default.asp?articleID=3568 

    Shopping Cart Options for Small Business This column's topic is on the exciting, hurly-burly world of shopping cart software. http://www.newmedia.com/default.asp?articleID=3556 

    Middleware: The Next Great Frontier When it comes to thinking about what may be the most important class of technology for the next 10 years, none other than middleware (and the advances being made in it) immediately comes to mind. http://www.newmedia.com/default.asp?articleID=3566 

    From the AccountingWeb on December 28, 2004

    BOOK RECOMMENDATION: 
    Keeping the Books: Basic Record Keeping & Accounting for the Successful Small Business, by Linda Pinson  * * * * * * * * * * * * * * * * * * * * * *

    This introductory guide offers advice on choosing an accounting method, developing a chart of accounts, organizing recordkeeping, and interpreting the records later. A glossary of accounting terms, a list of business resources, and sample forms are also included. Most entrepreneurs enter new ventures because they know something about products or retail or sales and marketing. Despite a burning passion for their new businesses, entrepreneurs will not succeed unless they learn to keep their financial records in order. http://www.amazon.com/exec/obidos/ASIN/0793179297/accountingweb 

     


    June 22, 2006 message from Wendell Gingerich [wgingerich@gobignetwork.com]

    I just wound up on your site and noticed you had some links to other "venture capital resources".

    I was wondering if you could include my site in there. (If it helps, I found your link page at www.trinity.edu/rjensen/Bookbob3.htm )

    Go BIG Network http://www.goBIGnetwork.com 

    We're the largest on-line network of small businesses, startup companies and investors. I figured it might be a nice fit.

    Let me know if that works - I'd appreciate it!

    Thanks,
    Wendell Gingerich
    Go Big Network


    Business and Industry Sites from the Smart Stops on the Web, Journal of Accountancy, September 2004, Page 21 --- http://www.aicpa.org/pubs/jofa/sep2004/news_web.htm 

    Plan for Change
    www.boozallen.com

    CPAs, CEOs and CFOs can visit this business strategy consulting company’s Web site and download the “Ten Guiding Principles of Change Management” for strategies and tips on managing change within an organization. Users also can read free articles such as “Reducing Overhead Costs Is Still the Top Priority for Chief Financial Officers” and get a free issue with a subscription to the online version of Booz Allen’s monthly magazine, Strategy+Business.

    Resources for Women
    www.women-21.gov

    Female professionals who visit this e-stop will find helpful links to employment tax forms and tax tips from experts at the Department of Labor and the IRS, to name a couple. The site also features business development resources on expanding and financing a business, training and counseling.

    Expert Advice
    www.sales-masters-world.com

    CPA firm owners looking to share advice about conferencing, Internet marketing and investment and financing matters with other practitioners can register for a free membership to this e-site. All visitors can find articles such as “Sarbanes-Oxley Requirements Remain a Wild Card for Outsourcers.”

    Meet Ms. Sarbox
    www.sox-online.com

    In addition to links to the full text of the Sarbanes-Oxley Act of 2002 and corporate governance e-stops, CPAs who visit this light-hearted Web site can find a compliance checklist for nonprofits and charitable foundations, read cartoons and jokes and play the Jeopardy-style Sarbanes-Oxley game with categories including new disclosure and officer certification. Users can read articles from Ms. Sarbox’s private collection on related topics including accounting, auditing and legal concerns.

    Are You Ready Yet?
    www.ndsweb.com/spotlights/sarbox_overview.shtml

    Compliance officers visiting this site can find an overview of Sarbanes-Oxley, definitions of related terms, a series of questions to assess clients’ compliance readiness and a best practices list. There also are white papers entitled, “Focus on Critical Business Processes to Drive Rapid Application Deployment” and “Uncovering Hidden Liabilities and Predicting Revenue Drag in Mergers and Acquisitions.”

    Take a Tip
    www.botinternational.com/sox.htm

    CPAs interested in information on streamlining office processes and meeting risk-management requirements can visit this Web site to read white papers such as “Establishing a Continuous Improvement Culture to Improve Project Results” and “The Sayings of Confucius and the Art of Project Management Processes” as well as current and archived tips of the week back to 2002.

    Get on a Roll
    www.nationalpayrollweek.com

    This e-stop reminds U.S. wage earners that National Payroll Week begins September 6 with special sections on how to mark the occasion at your office and links to video clips and print files of media coverage. Regular site features include Managing and Maximizing Your Paycheck, with information on using direct deposit and on personal finance. Other areas offer retirement planning and savings calculators.

    Smooth Office Relations
    Do you work for a monster of a boss or have to share a project with a mean-spirited coworker? If so, register for free at these two Web sites and shore up interpersonal skills:

    www.workworries.com

    With more than 1,200 links to articles such as “Being Cool When the Boss Is Not” and “20 Ways to Deal With Difficult People,” as well as human resources survey results from the Chubb Group of Insurance Cos., this stop offers a variety of information on handling problem personalities.

    www.badbossology.com

    This site has entire sections devoted to “bad boss behaviors”—bullying, incompetence, harassment and discrimination, inadequate compensation, disrespect of rights and privacy invasion—and general solutions and advice for dealing with them.

     

     

    Smart Stops on the Web, Journal of Accountancy, November 2003, Page 29 --- http://www.aicpa.org/pubs/jofa/nov2003/news_web.htm 

    Research These Resources
    www.brook.edu
    The Brookings Institution’s spot on the Web includes links to articles, papers and transcripts on topics of interest to CPAs including business, domestic and global economics, education and governance. Users can read the articles “What’s Ahead After the GDP’s Big Surge” and “The Budget Outlook: Analysis and Implications,” to name a few.

    BUSINESS VALUATION SITES

    Bob Jensen's threads on business valuation and ROI are at http://faculty.trinity.edu/rjensen/roi.htm 

    "A Good Deal Depends on Preparation," by Rod P. Burkert, Journal of Accountancy, November 2003, pp. 47-56 --- http://www.aicpa.org/pubs/jofa/nov2003/burkert.htm 

    Resources Revisited
    www.bvresources.com

    First listed as a Smart Stop a year ago this issue, this Web site still offers CPAs and business valuation (BV) professionals all the features they have come to expect, such as its BVLibrary, definition of the week, online forums, and gratis articles and downloads. Now it also includes a free section, Shannon’s Tip of the Week, by Dr. Shannon Pratt, who established the Business Valuation Update newsletter available online or in print for a fee.

    Tools to Start or Sell Your Business
    www.toolkit.cch.com/text/p06_7100.asp

    CPAs advising clients who want to start their own companies—as well as small business owners looking to sell—can visit this e-stop for financing and legal information, market and profitability assessments and links to checklists, financial spreadsheet templates, IRS tax forms and model business documents. Users with specific questions can “Ask Alice!” the site’s advice columnist, or visit her frequently asked questions section.

    Find the Value of a Business
    www.spardata.com

    The Web stop of this Annapolis, Maryland-based BV company offers clients and financial advisers free over-the-phone consultations, links to databases of firms that buy and sell public limited partnership interests and audio tutorials on valuation topics for business owners. Visitors also can link to free articles, such as Inc.’s “What’s Your Company Worth Now?” and get a complimentary adviser information kit.

    E-qual Opportunities
    www.accessamerica.org
    This Smart Stop, sponsored by the U.S. Chamber of Commerce, “fosters strategic alliances and investments for women and minority-owned business leaders and entrepreneurs” with webcasts such as “Advancing the American Economic Agenda.” The Small Business Center allows registered users free three-day access to offerings such as articles, research and statistics and the members-only weekly newsletter

    Register Here to Testify
    www.experts.com

    CPAs looking to become—and lawyers looking for—expert witnesses can do both at this Web site. Users can read the titles “The Art and Science of Expert Witnessing” and “The Correct Way to Present Exhibits,” to name a few, and witnesses who register for a fee with the site can submit their own articles.

    An Expert Site
    expertpages.com

    CPA expert witnesses can advertise their services here. Witness seekers can search by category and location. Also, registered expert witnesses can post topical articles, such as “Full-Time Professional and Part-Time Expert” and “Selecting and Retaining Experts,” as well as receive a free newsletter.

    From Smart Stops on the Web, Journal of Accountancy, March 2004 --- http://www.aicpa.org/pubs/jofa/mar2004/news_web.htm 

    Advice for the Little Guy
    www.realsmallbusiness.com
    CPA small firm owners will want to drop by this Web site for advice on building and marketing a business and managing staff, for example. Recently posted articles include “10 Ways to Help Increase Your Cash Flow.” Other resources offer users guidance on preparing a business plan and recordkeeping basics.

    A Resource for Loans
    www.smallbusinessloans.com
    For CPAs starting their own small businesses, or advising clients doing the same, this Web stop supplies information on government grant applications and Small Business Administration loans, as well as articles such as “How to Use Other People’s Money for Your Business.” The Small Business Center offers detailed expert advice on building, promoting and managing a business.

    Free Start-Up Information
    www.madeforsuccess.com
    This Web site gives entrepreneurs and other small business owners much food for thought about, for instance, communication, leadership, marketing, networking and time-management topics. Visitors can register for free reports such as “Ensure Your Financial Future” and a gratis newsletter.

    A Capital Site
    www.bizplanit.com
    Need ways to advise your clients how to grow their businesses into investor-worthy enterprises? Visit the free resources section at this site and peruse the virtual business plan, subscribe to a free newsletter and read articles including “How to Prepare a Business Loan Request for Your Bank.” Find links to Web sites for franchising, funding, government programs and legal and minority resources, and lists of business planning books or software for purchase.

    Research Hiring Out
    www.outsourcing-center.com
    In addition to its general outsourcing information—for example, articles on best practices, legal and offshore outsourcing trends—this Web site offers registered users free access to white papers and all visitors online publications such as Outsourcing Journal on the topic.

    Business helpers from Smart Stops on the Web, Journal of Accountancy, June 2005 --- http://www.aicpa.org/pubs/jofa/jun2005/news_web.htm

    Guides for Employers
    www.hr-guide.com
    CPA firm owners and/or human resources managers can find many useful links to incentive plans, job evaluations, performance appraisals, and staffing and training and development information. There are links to articles on avoiding sexual harassment claims and accommodating the disabled, as well as sample benefit and salary surveys and demos of HR software.

    www.winningworkplaces.org
    Visitors can read articles on workplace discrimination and recruitment, research studies on women of color in corporate management and tool kits on creating diversity in the workplace and other topics at this Web stop. Users can subscribe to the free newsletter Winning Workplace Ideas from the Forum link on the home page.

    www.whenworkworks.org
    This site, which focuses on 21st century office trends, offers case studies and tips on employee retention and flexible work schedules, a communication checklist for workers, suggestions for implementing flex-work programs and research findings.


    July 24, 2006 message from Wendell Gingerich [wgingerich@gobignetwork.com]

    I just wound up on your site and noticed you had some links to other resources for entrepreneurs.

    I was wondering if you could include my site in there.

    Go BIG Network http://www.goBIGnetwork.com 

    We're the largest on-line network of small businesses, startup companies and investors. I figured it might be a nice fit.

    Let me know if that works - I'd appreciate it!

    Thanks,
    Wendell Gingerich
    Go Big Network


    An E-ssential Site --- http://www.el.com/
    CPAs, financial analysts, small business owners, and tax professionals not only can find links to many Web sites in their fields here, but also can use Essential Link’s home page to access online calculators, clocks, e-mail services, encyclopedias and dictionaries. Users can find links to online news, newspaper and television network Web sites in the Headlines area, as well as links to Internet search engines..  Bob Jensen's search helpers are at http://faculty.trinity.edu/rjensen/searchh.htm 

    A Women's Entrepreneur Site from the U.S. Government --- http://www.women-21.gov/index2.asp 

    The growth of women entrepreneurs is one of the most remarkable features of the American economy as more and more women launch businesses as their path to professional success. This website offers you key resources, targeted information, registration for online programs, and networking opportunities to help build the rewarding career you deserve

    From The Wall Street Journal Accounting Educators' Review on March 21, 2003

    TITLE: Entrepreneurs' Biggest Problems-- And How They Solve Them 
    REPORTER: Paulette Thomas 
    DATE: Mar 17, 2003 
    PAGE: R1, 3 
    LINK: http://online.wsj.com/article_print/0,,SB104749882695232600,00.html  
    TOPICS: Entrepreneurship

    SUMMARY: A special report on small business is offered addressing many of the issues facing entrepreneurs, particularly small business entrepreneurs. The lead article by Thomas lists the essentials ingredients for success.

    QUESTIONS: 
    1.) Discuss how important a clear strategy is to the entrepreneur. Relate it to the article by Bialik about product options. What does flexibility mean in this context? Relate it to the other article offered by Thomas.

    2.) Give examples of the effects of having an unrealistic view. How does a realistic view impact the related article by Bailey?

    3.) What does the author suggest one should do where ethical behavior is concerned? What does Thomas mean by a robust network and why is this important?

    4.) Is a global perspective always appropriate? Argue that it is. Argue that it might not be. How is an ability to deal with technology important? What does Thomas mean when she says passion is a necessary component for the successful small business person?

    Reviewed By: Judy Beckman, University of Rhode Island 
    Reviewed By: Benson Wier, Virginia Commonwealth University 
    Reviewed By: Kimberly Dunn, Florida Atlantic University

    --- RELATED ARTICLES --- TITLE: How Do You Make Adjustments When Your Market Dries Up? REPORTER: Paulette Thomas PAGE: R8 ISSUE: Mar 17, 2003 LINK: http://online.wsj.com/article_print/0,,SB104749839851198500,00.html

    TITLE: How Do You Survive In a Market Where Size Matters? REPORTER: Jeff Bailey PAGE: R7 ISSUE: Mar 17, 2003 LINK: http://online.wsj.com/article_print/0,,SB104749860044888100,00.html 

    TITLE: How Do You Narrow Your Product Options? REPORTER: Carl Bialik PAGE: R3 ISSUE: Mar 17, 2003 LINK: http://online.wsj.com/article_print/0,,SB104749959790502600,00.html 

    TITLE: How Do You Sell a Pricey Product In a Thrifty Market? REPORTER: Jennifer Saranow PAGE: R6 ISSUE: Mar 17, 2003 LINK: http://online.wsj.com/article_print/0,,SB104749811820326100,00.html 


    Socratic Method of learning to help both existing business owners and those wishing to start their own business

    New E-Book by Phil Andrews Released by Authorstreet.com New E-Book by Phil Andrews released by Authorstreet.com. The Day I Became the CEO of my own Corporation by Phil Andrews uses the Socratic Method of learning to help both existing business owners and those wishing to start their own business ask critical questions to help grow their business to the next level --- http://www.prweb.com/releases/2006/6/prweb400605.htm


    AccountingWEB's Entrepreneur to Accountant Referral Network (E.A.R.N.) program, matching the accounting and financial needs of thousands of small businesses with the talent of the AccountingWEB community. http://www.accountingweb.com/item/39161

    The Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) have announced the launch of a new Web site designed to provide information about money managers, financial planners, and other investment advisors. http://www.accountingweb.com/item/59363 
    Balancing the Books -- by the Book For primers on small-business accounting, entrepreneurs can look to the Web and the business sections of their local libraries  
    http://www.businessweek.com/smallbiz/content/feb2002/sb2002021_8853.htm?c=bwfrontierfeb05&n=link2&t=email
     
     
    How-To for Small Biz www.office.com 
     
    The deal gives D&B iMarket's kit of CD-ROM products and Internet portal, zapdata.com, to provide real-time access to demographic information for small businesses --- http://www.eweek.com/a/pcwt0103303/2702787/
    For the Dunn & Bradstreet Small Business Resource Center, go to http://www.dnb.com/sbs/hmenu.htm 
     
    SmartOnLine is a great website for small business planning --- http://www.smartonline.com/ 
    SmallBusiness.com knowledge sharing at http://www.smallbusiness.com/cgi-bin/WebObjects/sbsite.woa 
    Business Advice Online http://www.businessadviceonline.org/ 
    How to do a business plan --- http://www.sba.gov/starting/indexbusplans.html  
    Lycos small business helpers --- http://www.lycos.com/business/ 
    The Umbrella Project (helpers for starting up a small business)http://www.umbrellaproject.com/

    National Commission on Entrepreneurship --- http://www.ncoe.org/ 
    The Young Entrepreneur's Survival Kit  http://www.inc.com/guide/item/0,,CHL2_GDE78,00.html 
    Accounting Systems Software at http://www.lib.polyu.edu.hk/electdb/DATAPRO/154-1.htm
    Small Business Helpers http://www.deionassociates.com/hplist/toc.htm
    Entrepreneurial Edge http://edge.lowe.org/ 
    Small Business
    Mothers' Home Business Network (MHBN)- Homeworkingmom.com
    SBFocus.com -- The Search Engine for Small Business
    SCORE - Service Corps Of Retired Executives
    Idea Cafe: The Small Business Channel
    iVillage Work From Home - Advice, message boards, chat, and self quizzes for work at home moms

    Online Small Business Workshop http://www.cbsc.org/osbw/workshop.html 

    1099 - "the magazine for independent professionals." (Tax, Personal Finance, Careers, Small Business) 
     http://www.1099.com/ 

    E-Commerce News and Education --- http://www.ecommercetimes.com/ 

    Resources for consultants --- http://www.consultingcentral.com/ 

    Find a consultant --- http://www.consultants-mall.com/ 

    Entrepreneur's Help Page http://www.tannedfeet.com/index.html 
    For $8.95, you can get the whole Entrepeneurs Help Page downloaded on book format (including legal forms) --- http://www.tannedfeet.com/html/buy_the_page_.htm 

    The Small Business Journal http://www.tsbj.com/ 

    Another interesting PBS television weekly show is Small Business 2000.   The web site is at http://www.sb2000.com/.  One of the more interesting options at this web site is on the Mentors tab.  This is designed to help small businesses in many ways, including overcoming the massive paperwork for meeting SEC rules on stock offerings of a small business.  The August 29 show featured the U7 form for stock offering (Click on the Money form for a free download).  There are also videotapes available regarding Access to Money by small businesses.  (Click on the Orders tab.)

    What accounting software is being used by small businesses?  See "Inventory Of Online Accounting Efforts Reveals Slow Migration," by Kevin Ferguson, Forbes, August 4, 2000 --- http://www.forbes.com/tool/smallbus/00/jul/0726/feat.htm 

    Small Business Helpers --- Assessment Tools for MicrofinancePractitioners --- The SEEP Network  http://www.mip.org/PDFS/AIMS/Learning%20from%20Clients.PDF 

    Also see Guides @ Inc.com http://www.inc.com/guide/category/1,7434,,00.html 

    Free estate planning helpers from a Georgia law firm --- http://www.scrogginlaw.com/ 

    Smart Communities Network --- http://www.sustainable.doe.gov/

    Federal Depreciation Rates --- http://www.smbiz.com/sbrl012.html

    ABA LawInfo.org --- http://www.abalawinfo.org/ 
         Your gateway to information on legal topics that affect your daily life.

    How to Build Customer Relationships Online Marketing is not just about getting an order, it's about getting a customer and keeping them. Nurture your customer relationships with regular e-mails. With regular e-mails you can build relationships and gather market intelligence. http://www.newmedia.com/default.asp?articleID=3275 

    Bob Jensen's eCommerce threads are at http://faculty.trinity.edu/rjensen/ecommerce.htm 

     

    Cal Berkeley's Labor Research Portal --- http://iir.berkeley.edu/~iir/library/webguides.html 

     
    Web Guides
    Alternative Forms of Ownership
    Resources for workers and firms interested in models for employee participation and ownership
    Labor Education
    A guide to labor studies programs at colleges and universities
    Globalization
    Resources covering Global trade, employment and environmental issues
    Labor Libraries
    A list of special libraries that focus on labor, along with selected Full-text print resources on the Internet
    Government
    A list of United States government, regulatory and legal web resources that pertain to labor
    Labor Unions - U.S.
    The IIR Library's exhaustive list of U.S. unions
    International Labor Unions
    Labor unions world-wide, along with international organizations that address labor concerns.
    Work and career
    The Library's guide to employment information and career guides on the web
    Labor Culture
    A selected guides to the art, culture and music of the Labor Movement

    Bob Jensen's threads on portals and vortals are at http://faculty.trinity.edu/rjensen/000aaa/portals.htm 

     

     

    From AccountingWEB Resource Guide on November 16, 2001

    Small Business Manager is the affordable, interconnected financial and business management solution from Microsoft Great Plains. Designed specifically for small, growing businesses, Small Business Manager allows you to efficiently input, organize and access the information you need to drive your business. When you've got greater functionality requirements than an out-of-the- box accounting solution provides but you're not yet ready for an elaborate software package, Small Business Manager is your ideal choice. Visit http://www.greatplains.com/smallbusinessmanager  and register to attend a free online seminar!

     

    A Wall Street Journal service:

    The Wall Street Journal has made some important changes to its online center for entrepreneurs, formerly known as startup.wsj.com.

    Now called StartupJournal.com, this newly redesigned site offers you an enhanced collection of information that's focused on buying or starting a business or franchise.

    Among the changes you'll see:

    ==Improved Navigation== It's more efficient than ever to find what you're looking for on StartupJournal.com. Our new, subject-based tabs organize information into useful categories such as Columnists, Financing, Technology, Franchising and Ideas. http://StartupJournal.com 

    For those of you who thought being an entrepreneur means going it alone, you may be in for a bit of surprise. A new survey conducted by Accenture over a period of 18 months shows that true and effective entrepreneurship is really a collaborative effort. Survey results also show that American business owners are among the least likely to embrace this theory. http://www.accountingweb.com/item/54038 

    German Boer's useful information for entrepreneurs
    For more recent updates, see
    http://mba.vanderbilt.edu/germain.boer/Creating%20New%20Ventures/mgt754-2001.htm

    http://www.sbaonline.sba.gov/ --Small Business Administration home page http://fisher.lib.virginia.edu/active_data/domestic.html --Regional economic information  
    http://www.yellow.com/
    --World Wide Yellow Pages.  This is a good place to search for a busi­ness.  You can search by company name, type of business or location.

    Some additional links that have useful information.

    The MIT Entrepreneurs club has a significant amount of material available for entrepreneurs.  The information ranges from legal to technical.  This link should be on every budding entrepre­neur's list of essential information: http://www.mit.edu:8001/activities/e-club/e-club-home.html

    A web site that keeps track of online auctions is http://www.itrack.com/links.html 

    The Los Angeles Times at  http://www.latimes.com/HOME/BUSINESS/SMBIZ/
    has lots of stories about new ventures and is worth looking at to get business ideas and to see what kinds of ideas are working.

    If you read the sections on Articles and Speeches at this site you will find some great information for first time entrepreneurs.  http://www.accel.com/entrepreneurs/

    The question and answer format of this site helps you get an idea of what venture capitalists look for in a new venture.  http://www.garage.com/forums/ventureCapital/qandaArchive.shtml

    For help with legal issues, try this site.  It is written for the entrepreneur with no knowledge of the law.  http://sv.findlaw.com/

    The Wall Street Journal has an interesting site that focuses on startups.  http://startup.wsj.com/

    From The Journal of Accountancy, December 2001, Page 21 --- http://www.aicpa.org/pubs/jofa/dec2001/news_web.htm 

    Small Business Resource Guide

    "The Small Business Resource Guide, CD-ROM 2002 provides critical tax information to small businesses including forms, instructions, and publications. The CD also provides valuable business information from a variety of government agencies, non-profit organizations, and educational institutions. The CD contains essential startup information needed by new small businesses in order to be successful. The design of the CD makes finding information easy and quick and incorporates file formats and browsers which can be run on virtually any desktop or laptop computer"

    You can order up to five free copies of this product at:

    http://www.irs.gov/businesses/small/display/0,,i1%3D2%26i2%3D23%26genericId%3D7128,00.html

    Other government prepared CD-Rom products are shown on:

    http://www.irs.gov/businesses/small/display/0,,i1=2&i2=23&genericId=20005,00.html

    SMALL BUSINESS SITES

    Business Resources
    sites.krislyn.com

    This home page is full of links to “strictly business sites” such as online associations and e-zines. Users can find industry-specific information on accounting, economics and investments, to name a few. The business plans section of the site offers a link to a bookstore where business people can find titles on writing and implementing their plans. Visitors also can link to freebieclub.com, which provides links to various discount and gratis promotional offers.

    The Voice of Small Business
    www.nfibonline.com

    This National Federation of Independent Business site includes a tools and tips section with articles for small-business owners, such as “Six Ways to Keep Employees Safe on the Road,” “The Small Business Owner’s Guide to a Good Night’s Sleep” and “A Checklist for Starting a Small Business.”

    A Big Site for Small Companies
    www.smallbusiness.com

    Registration here is necessary but free and lets users seek advice from peers, share experiences and publicize their businesses with profile pages and listings in the site’s online directory. Linked articles of interest cover topics such as business planning, human resources, legal issues and raising capital. They are accompanied by smallbusiness.com’s own rating system on the article’s helpfulness.

    Free Articles Here
    businessbookpress.com

    If you’re buying, selling or determining the value of your business, this Web site offers free articles on all three of those subjects. Titles include “Finding the Right Business to Buy” and “What Makes the Sale of a Business Fall Through?” There’s also an “Ask the Expert” message board to help users get answers to tough business questions.

    Keep Up With Industry News
    www.all-biz.com

    This online resource center for small businesses groups its free articles by “business zones” or sectors such as advertising, communications, marketing and telecommunications. Registration is free and comes with a subscription to a newsletter that offers business tips and ideas.

    Channel Surf Here
    www.businesstown.com

    Articles on business topics, a free newsletter and special offers on reference materials are available here. Channels include Internet, accounting and consulting. There’s no charge for a subscription.

    Business Plan Preparation
    www.businessplans.org

    This Center for Business Planning site offers sample business plans, analyses of business strategies and sections on writing and evaluating business and marketing plans. The site also features links to other resources including a business directory and a glossary.

    A Site for Survivors
    www.business-survival.com

    How-to articles, surveys and reports and an ask-the-experts section make up the bulk of the Small Business Survival Center. Articles are broken down by categories such as starting and running a business and dealing with technology. Titles include “10 Ways to Lower Your Computer Support Bills” and “Top 10 Deadly Small Business Mistakes.”

    Solutions for Growing Businesses
    www.entrepreneurmag.com

    Users can access the current and archived electronic versions of Entrepreneur magazine, as well as BizStartups and HomeOfficemag, at this site. Visitors can get free subscriptions to e-newsletters and access to Entrepreneur’s annual guide of more than 400 start-up opportunities and the five-part guide, “How to Build a Business Plan.”

    Help for Small Businesses
    www.businessknowhow.com

    Visitors here have access to sample business plans, classified ads, employment forms, model legal forms and business agreements. Articles and guidance are also offered on topics such as the Small Business Administration’s disaster-assistance program and generating traffic for your company’s Web site.

    Small Business Helpers from the Journal of Accountancy, March 2003, Page 23 --- 

    Survival Tips
    home3.americanexpress.com/smallbusiness/tool/security/protect.asp
    This page of the American Express Web site offers small business owners articles such as “Protect Your Business: Stop Fraud Before It Starts,” as well as quizzes on security risk including “Are You Vulnerable to Fraud and Theft?” Other resources provide guidance on running a small business with tips on creating effective financial controls and guarding intellectual property.

    Resources for Entrepreneurs
    www.sbaer.uca.edu
    For CPAs looking to start their own business or expand the services they currently offer, the Small Business Advancement National Center page of the University of Central Arkansas Web site features sections such as Counseling and Consulting, Research and Dissemination, Strategic Alliances, and Training and Education. The center also provides a free e-mail newsletter and links to information on effective Web marketing.

    Advice from the Advisor
    www.isquare.com
    The Small Business Advisor’s Web site offers CPA firm owners a free electronic newsletter that gives Internet tips and tricks, and marketing, sales and software assistance. Visitors can read up on legal issues and starting or selling a business. The site also includes a section on tax advice and answers to frequently asked questions.

    Government Links for Businesses
    www.business.gov
    The U.S. Business Advisor’s goal is to “make the relationship between business and government more productive.” It helps do that by “providing one-stop access to federal government information, services and transactions” on its Web site. Links to government Web pages also offer input on business development, financial assistance, international trade, taxes and workplace issues.

    Small Business Links
    www.bizmove.com
    CPAs who wish to enhance their existing Web presence will want to surf this Web site—“the small business knowledge base.” A free subscription to its e-zine, BizTips, includes a download of the e-book 101 Tips and Strategies to Small Business Success. Users also can link to applications for free government grants and business plan templates.

    Online Business Information
    smallbusiness.yahoo.com
    This section of Yahoo includes links to assist small business owners in finding online resources for creating a Web presence and managing and promoting their businesses. CPAs also can link to articles on business incorporation and financing, such as “How Attention to Safety Can Boost Your Profits” and “Is It Better to Lease or Buy Equipment?” This site also offers information on business, marketing and planning a Web strategy.

    EP Phone (From) Home
    www.en-parent.com
    For entrepreneurial parents (EPs) working from home, this Web site aims to help “EPs make a living and a life.” The site features topical articles such as “Six Ways to Work-Family Balance” and “The Top Ten FAQs About Starting a Business.” It also includes links to administrative, entrepreneurial and home business Web sites.

     

    From Smart Stops on the Web, Journal of Accountancy, February 2002, Page 25 --- http://www.aicpa.org/pubs/jofa/feb2002/news_web.htm 

    Business Advice for Mom and Pop
    www.efamilybusiness.com

    This site offers information about off-site presentations on topics such as succession and continuity, and strategy, planning and family-business policies. Free articles written by internal staff include these titles: “Supporting the Successor” and “Estate Fairness for Children In and Out of the Business.”

    Make Your Practice Perfect
    www.business-management-consulting.com

    Looking for information on business processes, changes in management, corporate governance, e-business practices, HR and strategic planning? Find them all in this site’s management-resources section. Business news articles cover topics such as IT and software companies, layoffs and changes, and stunning growth.

    Virtual M&A Adviser
    www.maadvisor.com

    “Issues, trends and strategies for successful mergers and acquisitions” are featured here. Registered guests can access the discussion forum and download section, as well as receive discounts at the online store. The discussion forum includes general questions and answers about mergers and acquisitions, and the download section includes audio clips, documents and speeches from industry leaders on M&A issues.

    For Dot-Com Buyers and Sellers
    www.webmergers.com

    Current statistical data on dot-com fire sales and the dot-com marketplace, news of Internet shutdowns and resource-pooling mergers as well as articles on buying-and-selling strategies are available here. Users can read stories such as “Buying a European Technology Company—Key Questions,” “Five Tips for Sellers of Dot-Coms” and “M&A Outlook for Internet Consulting Firms.”

    Small-Business Resource
    www.businessownersideacafe.com ( formerly www.ideacafe.com)

    Small-business owners can find information on starting and running a business here. An ask-the-experts forum, discussion threads and shared tips add to the site’s content. Business names, e-commerce, marketing and working at home are some of the topics in the CyberSchmooz area. Membership is free and gives access to information on business awards, contests and grants.

    SBA Addresses 9/11
    www.sbaonline.sba.gov

    The Small Business Administration (SBA) created a large disaster-assistance section on its Web site in response to the events of September 11th. Visitors will find links to local assistance programs and to state and federal disaster loans and grants. Other resources include the SBA’s answer desk for questions about financing and starting a small business.

    Disaster-Recovery Information
    www.fema.gov

    The Federal Emergency Management Agency (FEMA) site added three sections after the terrorist attacks on the United States. Victims Benefits and Assistance lists organizations addressing individual and business-related concerns, contact information and victims’ eligibility requirements. The New York Recovery News section has links to city and state emergency-management offices. Information About Anthrax gives U.S. Postal Service updates.

    Find the Perfect Job
    www.jobfactory.com

    Finding a new job or changing careers just got a lot less stressful. This site features JobSpider, a search engine for positions by title and location, as well as JobFactory’s own list of 250 top career sites. Plus, users can find links to more than 23,000 Web sites that post available jobs and want ads from most online U.S. newspapers.

    From Smart Stops on the Web, Journal of Accountancy, July 2003, Page 25

    A Big Small Business Portal
    www.workz.com
    Small business owners looking for a springboard to online e-business and e-marketing resources will want to bookmark this site. With more than 3,000 articles on topics including attracting customers, copyright protection, effective Web content and writing for the Internet, this portal offers something for every Web-based company looking to make and save money. The Hot Topics and Guest Experts sections link to other professionals’ advice and tips for building a viable e-business.
     
    Advice for the Soloist
    www.workingsolo.com
    Anyone working out of a small or home office can get free quarterly e-mail newsletters with insights for the self-employed from author and corporate consultant Terri Lonier’s Web site. Her e-stop’s frequently asked questions section addresses queries such as, “How much start-up capital does a typical small business need?”
     
    Providing for the Common Defense
    www.dfas.mil
    The Defense Finance and Accounting Service (DFAS) Web site gives U.S. military personnel free financial information. Sections include accounting services, civilian, commercial and military pay, and retired and annuitant pay. The Money Matters section gives links to information on disbursement, garnishment, out-of-service debt and transportation and travel pay.
     
    In the Pink
    www.freeagentnation.com
    Roughly 33 million workers in the United States are self-employed according to author Dan Pink’s Web site. He categorizes them as either microbusinesses, soloists or temps. His Web site features articles he authored, such as “Would It Work to Swap Distant Elder-Care Duty?” and “Custom Postage: An Idea That Might Stick.” Other sections include Pink’s Free Agent Top News and Tip of the Week.

    From Smart Stops on the Web, Journal of Accountancy, July 2003, Page 19
    For the Small Business Owner
    www.mercurypartners.com
    The Web site of Rockville, Maryland-based consulting firm Mercury Partners offers articles such as “Points to Consider Before Raising Capital,” “Five Business Plan Mistakes: How to Avoid Them” and “Understanding Cash Flow.” This site also includes links to the Small Business Administration’s home page and other Web stops of interest to mom-and-pop shops.
    Reach Out to Consultants
    www.contractedwork.com
    Professionals seeking freelancers in fields such as business writing, graphic and Web design, software and computer programming can post their projects for free at the Contracted Work—Global Business Center Web site and receive bids electronically. Contractors looking for work can sign up for a low-priced one-week or one-month trial so they can put bids in on jobs and receive contact information for prospective employers.
    A Big Site for Small Business
    www.nwfusion.com
    The Network World Fusion Web site bills itself as “the leader in network knowledge,” and with offerings such as detailed hardware and software buyer’s guides, daily news feeds and product tests and reviews, it’s a valid claim. Visitors can apply for 51 free issues of Network World magazine, as well as register for a free weekly e-mail newsletter.
    “Solutions for Growing Businesses”
    www.entrepreneur.com
    Starting and growing small companies will benefit from a visit to this Web site, which touches on almost all aspects of small business expansion—from human-resources-management advice to software guides. Categories in the Small-Biz Essentials section include the franchise zone, home-based business, money and finance, sales and marketing and technology. Visitors also might want to check out the Ask the Employment Law Expert and How-To Guides sections.
    For Comparative Coverage
    www.healthinsurancefinders.com
    Whether you need family or small business health, dental or life insurance, this free Web site uses your search criteria to find the lowest rates among providers. You can research other categories of insurance including disability and long-term care. You also can find a glossary of insurance terms and links to sites to get travel and health and fitness information.
     

     

     

    Business Firm and Other Directories

    Probably the best place to begin is Google ---  http://directory.google.com/ 
     
    Then try Yahoo --- http://dir.yahoo.com/Business_and_Economy/ 
     
    Entrepreneurial Edge http://edge.lowe.org/  

    Banking Industry http://special.northernlight.com/banking/index.html 

    From the Scout Report --- Business.com http://www.business.com/ 

    The owners of this lucrative URL address have sponsored a Web directory created by a "team of 50 research analysts [that] has sifted through the Web to find relevant sites for our handcrafted Directory." All Websites in this 30-category directory have been annotated. The annotations, however, tend to be very terse and a bit vague. First time users are encouraged to skim over the excellent site guide, which gives a step-by-step manual for using the site as well as in-depth explanations of the terminology and taxonomy.

    Management and Organization Behavior

    A Management Vortal 
    ManagementFirst.com http://www.managementfirst.com/what_makes_us_different/index.htm 

    The ManagementFirst portal is open to all practising managers, business professionals, and management researchers. We call you "thinkers in management".

    • You have a specific interest in management discipline.
    • You are seeking current research to produce a report, progress up a learning curve, or simply update your skills and knowledge base.
    • You are interested in information exchange and confirmation and seek to connect with colleagues in your field.
    • Alternatively, you might need an overall view of what's hot in the field of management - both theory and current news.

    To meet your information needs, ManagementFirst has produced and resourced a collection of current research, summaries, guides and advice in our ManagementFirst Expert Channels. These are expert team-lead compilations of the best content from specific subsections of the field of management.

    Each Expert Channel has a basic menu of content, which includes:

    • New key journal articles every month - expertly chosen and absolutely free
    • Information and advice from our growing group of management experts
    • News and notes on relevant topics
    • Book reviews covering the latest management publications
    • Reader's polls, saved searches and more

    Find out more about ManagementFirst:

    E-Commerce News and Education --- http://www.ecommercetimes.com/ 

    Resources for consultants --- http://www.consultingcentral.com/ 

    Find a consultant --- http://www.consultants-mall.com/ 

    From the Scout Report (Another search engine)

    Sookoo! http://www.sookoo.com/ 
    Sookoo (Strategy Organized Online [with] Key Ordered Optimization) is a search engine dedicated to making it "easier to find high-quality business strategy information on the web." According the Sookoo's developers, Alan Wickham and Danny Capparelli, because the search mechanism is already focused on business management information, the hits tend to be much more germane than those from larger, all-purpose search engines. Although search terms seem to be limited, the browseable directory of popular searches renders a decent number of annotated sites.

    Academy of Management
    The Association of Management and International Management (AoM and IAoM)
    National Commission on Entrepreneurship --- http://www.ncoe.org/ 
    CEO Express at
    http://www.ceoexpress.com/
    The Umbrella Project (helpers for starting up a small business) http://www.umbrellaproject.com/
    US News Online Comparisons of Programs in Higher Education

    Cornell University's Workplace Issues Today
    A Salary Comparison Guide
    National Employee Benefits Web
    The Argus Clearinghouse

    The Corporate Library --- http://www.thecorporatelibrary.com/ 

    Collective Bargaining Information Sources (Labor, Management) http://www.ilr.cornell.edu/library/reference/guides/collbarg/default.html 

    Entrepreneur's Help Page http://www.tannedfeet.com/index.html 
    For $8.95, you can get the whole Entrepeneurs Help Page downloaded on book format (including legal forms) --- http://www.tannedfeet.com/html/buy_the_page_.htm 

    Donna Dubinsky reflects on her 15 years as a company executive and releases 15 "lessons" she's gained from them --- http://www.wirednews.com/news/holidays/0,1882,47844,00.html 

    Also see Small Business


    Marketing 

    Marketing Science Institute --- http://www.msi.org/

    Conference on Historical Analysis and Research in Marketing Proceedings --- http://faculty.quinnipiac.edu/charm/cumulative_proceedings.htm 

    Advertising Age --- http://adage.com/


    How to search for a Product or Service

    From the Wharton School at the University of Pennsylvania

    In 1998, Microsoft executive John Wood decided to take a rare and hard-won vacation. He started out trekking in Nepal and ended up establishing a foundation, Room to Read, that has created nearly 3,000 libraries in the developing world and stocked them with more than one million books. His experiences are chronicled in a recently-published book that offers his corporate-based perspective on how to raise money, market the product, leverage relationships and, ultimately, maximize results.
    "How John Wood Left Microsoft to Change the World -- through Books (Including His Own)," Knowledge@Wharton, December 13, 2006 --- Click Here

    Product Search With Options to Rent of Buy It Cheaper?  
    That plus much more!

    "Amazon: Giving Away the Store,"  by Wade Roush, Technology Review,  January 2005 --- http://www.technologyreview.com/articles/05/01/issue/roush0105.asp?trk=nl 

    Visit Amazon Light at www.kokogiak.com/amazon4, and you’ll see a plain search box that allows you to locate any product in Amazon.com’s database. Click on an item, and you’ll be taken to a page with the usual product image, price information, and customer reviews, and, of course, the familiar “Buy This” button. Amazon Light’s pages are deliberately less cluttered than those at Amazon itself, but the family relationship is obvious.

    Look closer, however, and you’ll spot some distinctly non-Amazonian features. If the item you’re viewing is a DVD, for example, there will be a button that lets you see in a single click whether the same disc is for rent at Netflix. If it’s a CD, you can check whether Apple’s iTunes music store has a downloadable version. And if it’s a book, Amazon Light will even tell you whether it’s on the shelf at your local public library.

    Product search helpers are available at http://faculty.trinity.edu/rjensen/searchh.htm#ProductsAndMarketing 

    Bob Jensen's search helpers are at http://faculty.trinity.edu/rjensen/searchh.htm 

    Mergers, Acquisitions and Alliances (IMAA), an academic, non-profit research think tank on M&A. We also offer on our website statistics on M&A: http://www.imaa-institute.org/statistics-mergers-acquisitions.html

    Accounting and Professional Services

    Bob Jensen's threads on professional services and fees --- http://faculty.trinity.edu/rjensen/fees.htm 

    Advertising and Marketing

    How to Report Crime and Fraud

    Accounting Fraud (including the Enron scandal on creative accounting) --- http://faculty.trinity.edu/rjensen/fraud.htm 

    When you get a new suspect that sounds like consumer fraud, you probably should investigate it and/or report it to http://www.consumer.gov/sentinel/ 

    The FBI's Internet Fraud and Complaint Center (IFCC FBI)
    To thwart fraud on the Internet and terror in general, check in and/or report to http://www1.ifccfbi.gov/index.asp

    National Infrastructure Protection Center (NIPC) --- Report security incidents here.
    Located in the FBI's headquarters building in Washington, D.C., the NIPC brings together representatives from U.S. government agencies, state and local governments, and the private sector in a partnership to protect our nation's critical infrastructures. 
    http://www.nipc.gov/
      

    One of our local television stations in San Antonio recommended the Private Citizen web site for reducing the amount of junk phone calls and junk mail that you would like to halt.  The Wall Street Journal has also recommended this web site. http://www.privatecitizen.com/

    Bob Jensen's Threads on Accounting Fraud --- http://faculty.trinity.edu/rjensen/fraud.htm

     

    Marketing News --- http://www.clickz.com/ 

    High-Tech Marketing 
    How cell phones are becoming a key link between companies and customers. How new-breed software helps create personalized pitches. How ads are moving into video games. And more --- http://www.businessweek.com/technology/tc_special/tc_04marketing.htm 

    ClickZ's Marketing Search Engine Watch released its annual list of outstanding Web search services for 2003. Your favorites are among them, but there were also surprises and controversial predictions for the coming year --- http://www.clickz.com/experts/search/opt/article.php/3319991 

    Bob Jensen's search helpers are at http://faculty.trinity.edu/rjensen/searchh.htm 

    The Association for Accounting Marketing (AAM) web site http://www.accountingmarketing.org/index.asp  

    Assessing The ROI Of Marketing Promotions
    An emerging class of software helps execs track the success of product promotions and comply with government regulations. http://update.informationweek.com/cgi-bin4/DM/y/egIL0GMPWZ0G6p0CSak0AF

    "Google's Brave New World," by Vincent Ryan, Newsfactor.com, April 15, 2003 --- http://www.newsfactor.com/perl/story/21267.html 

    Search engine Google is virtually revered by the Internet community and is often profiled as a pure technology company that does not take commercial interests to heart. But those days are over. In the past two years, Google has inked revenue-generating deals with almost every major player on the Internet, stepped up efforts to secure the lion's share of Internet advertising dollars, and tested the waters in the news and e-commerce sectors.

    Where are these ventures taking Google, and where is Google taking the Internet? It is more than an academic question: Google processes more than 150 million Web searches per day. By some accounts, 75 percent of the outside traffic to any given Web site originates on Google. Where Google goes, so goes the Web.

    Searching for Advertising

    Google's primary emphasis in the past year has been on developing its offerings and reach in Internet advertising. The company's text-based AdWords program has been a big success since its inception a year ago. And it is easy to see why: For text-based ads related to searches, click-through rates tend to be four to five times higher than for traditional banner advertising.

    To place a text ad, advertisers choose which keywords they want to target. On Google, keywords are auctioned off: The higher the bid, the higher the ad will appear on the search results page. Click-through performance also factors in. The higher the click-through rate, the less costly the text link. "Irrelevant ads are dropped down the page, and advertisers who are more relevant will save money," Andrew Goodman, principal at search engine optimization firm Page Zero Media, told the E-Commerce Times.

    But for revenue, nothing beats Google's premium sponsorship program, in which advertisers purchase prime real estate at the top of a search results page. "Google's probably looking to get 40 percent to 50 percent of [its] revenue [by] targeting big companies with those premium spots," Goodman said.

    Eye off the Ball?

    In addition, the company has expanded its advertising offerings by placing cost-per-click advertising on content-targeted Web pages. So far, the program has been piloted on such sites as HowStuffWorks and Knight-Ridder properties the San Jose Mercury News and The Philadelphia Inquirer. Amazon.com (Nasdaq: AMZN)  is the latest partner to sign up, giving Google advertisers a prime high-traffic site on which to attract customers. But the jury is still out on how effective this marketing program will be.

    "I think the content targeting will be less lucrative because click-through rates are much lower," Goodman said.

    Google also has moved into syndicating ads to ad networks such as FastClick and Burst Media, which serve smaller clients. With all this activity, Google and its competitors actually are running out of spots to place ads, according to Goodman. "There's a finite pie they're all fighting over."

    Google was unavailable for comment

    Bob Jensen's search helpers are at http://faculty.trinity.edu/rjensen/searchh.htm 

    January 30, 2004 message from Carolyn Kotlas [kotlas@email.unc.edu]  

    GUIDE TO CONDUCTING SURVEYS ONLINE

    A 2001 RAND Corporation report, CONDUCTING RESEARCH SURVEYS VIA EMAIL AND THE WEB [ISBN: 0-8330-3110-4], discusses the pros and cons of using email and the Web to conduct research surveys. The authors (Matthias Schonlau, Ronald D. Fricker, Jr., and Marc N. Elliott) provide an overview of the various aspects of the research survey process, guidelines for choosing the type of Internet survey to use, and suggestions for designing and implementing Internet surveys. The report is available for purchase in paperback or online in PDF format, at no charge, at http://www.rand.org/publications/MR/MR1480/

    The RAND Corporation is a nonprofit research organization "providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world." For more information, link to http://www.rand.org/

    14 to 42 (Advertising Billboards in NYC) --- http://www.14to42.net/

     

     

    KnowThis Marketing Virtual Library --- http://www.knowthis.com/

    And the Oscar Goes to... Online Advertisers There's nothing like a high-profile event to get online marketers thinking creatively. http://www.clickz.com/media/media_buy/article.php/2117931 

    AdCracker.com http://www.adcracker.com/index.htm 
    The site provides a lot of helpers for creating advertisements.

    CRM = Customer Relations Management
    Trading Places, Part 2 If the CRM software craze is over, what's next? The second of a three-part series on the future of CRM applications. http://www.clickz.com/crm/crm_strat/article.php/1198531 

    Note the CRM online service at NetSuite --- http://www.netsuite.com/portal/home.jsp 

    The American Package Museum (History, Marketing, Advertising) --- http://www.packagemuseum.com/ 

    Listen to the Audience Which online ads turn consumers off, and which turn them on? Ask some and find out for yourself. http://www.clickz.com/media/media_buy/article.php/1184801 

    Study: Catalogers Excel in E-mail UPDATE: Catalogers' click-through and pass-along rates are almost twice those of the online direct marketing from B2B and other industries. http://www.internetnews.com/IAR/article/0,,10789_1299271,00.html 

    19th Century Advertising (History) --- http://advertising.harpweek.com/ 

    Richard Siedlek's article entitled "Be a on the Web" has a wonderful listing of advertising and marketing links --- http://www.aicpa.org/pubs/jofa/apr2001/siedleck.htm 

    Helpers for Marketing Students and Educators --- MarketingProfs.com --- http://www.marketingprofs.com/ 

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    Marketing Behind the Iron Curtain 1986-1990 (Photography)
    Windows Through the Curtain --- http://www.photoarts.com/journal/Hlynsky/hlynskyindex.html 


    Consumer Protection, Fraud Information, Deceptive Practices

    When you get a new suspect that sounds like fraud, you probably should investigate it and/or report it to http://www.consumer.gov/sentinel/ 

    The FBI's Internet Fraud and Complaint Center (IFCC FBI)
    To thwart fraud on the Internet and terror in general, check in and/or report to http://www1.ifccfbi.gov/index.asp

    Bob Jensen's Threads on Accounting Fraud --- http://faculty.trinity.edu/rjensen/fraud.htm

    Nigerian Frauds

    Below are some websites devoted to this fraud. I hope these have not previously been posted:

    U.S. Treasury warning:

    http://www.ustreas.gov/usss/index.htm?alert419.htm&1 

    A coalition against this fraud:

    http://home.rica.net/alphae/419coal/ 

    Putting "Nigerian oil fraud" or "Nigerian 419" into a search engine will provide additional links.

    Dr. Frederic M. Stiner, Jr. 
    CPA Department of Accounting & MIS 
    University of Delaware office: (302) 831-1806 
    Newark DE 19716 USA fax: (302) 831-4676

    Links of possible interest in consumer fraud and consumer protection include the following:

    http://www.consumerreports.org/main/home.jsp 

    http://www.pueblo.gsa.gov/scamsdesc.htm 

    http://www.consumer.gov/sentinel/ 

    U. S. Consumer Gateway --- http://www.consumer.gov/ 

    Dr. Toy's Guide on the Internet --- http://www.drtoy.com/ 

    Consumer Product Safety Commission --- http://www.cpsc.gov/ 

    ConsumerSearch --- http://www.consumersearch.com/www/    

    Yahoo! Warehouse - buy and sell used, overstock, and clearance goods --- http://warehouse.yahoo.com/ 

    The Future of Interactive Television: Report From Two Alternate Universes Recently, I had the pleasure of visiting two alternate universes. The first was the very heart of the ad industry, the American Association of Advertising Agencies's (AAAA) Media Conference in Orlando, FL. http://www.newmedia.com/default.asp?articleID=3506 

    Consumer World --- http://www.consumerworld.org/ 

    Comparison Pricing --- http://www.smartshop.com /

    Consumer Information Guides --- http://www.pueblo.gsa.gov/ 

    Internet Catalogue (Shopping, Marketing) --- http://catalogue.bized.ac.uk/ 

    Emergence of Advertising in America: 1850-1920 (Marketing, History) http://scriptorium.lib.duke.edu/eaa/ 

    Each of the big-three retailers -- Wal-Mart, Kmart, Target -- has full Web storefronts for the first time the Year 2000 holiday season, and each is banking on big sales --- http://www.eweek.com/a/pcwt0012085/2662937/ 

    E-Commerce News and Education --- http://www.ecommercetimes.com/ 

    An Internet/Web portal with 14 channels on marketing and e-Commerce --- http://www.internet.com/home-d.html 

    • Internet Technology
    • Ecommerce/Marketing
    • Web Developer
    • Windows Internet Tech.
    • Linux/Open Source
    • Internet Resources
    • ISP Resources
    • Internet Lists
    • Download
    • International
    • International News
    • International Investing
    • ASP Resources
    • Wireless

    Other examples of portals and vortals can be found at http://faculty.trinity.edu/rjensen/000aaa/portals.htm 

    Accounting News, Blogs, Tweets, etc. --- http://faculty.trinity.edu/rjensen/AccountingNews.htm

    Media Metrix (Tracks Web Navigations of Web Users)

    CentsOff Coupons - Online Grocery Coupons

    Consumer Behavior Book With Online PowerPoint and Cases

    Directory Sponsor Information

    Electronic Billboards on the Digital Superhighway

    The Internet Advertising Resource Guide

    Web Digest for Marketers --- http://wdfm.com/ 

    Science, Tobacco, and You -- AdSmart --- http://scienceu.fsu.edu/content/adsmart/docs/teacherinfo.html 

    Marketing on the Internet http://iws.ohiolink.edu/moti/ 

    Marketing on the Web (with some management helpers thrown in)
    KnowThis.com --- http://www.KnowThis.com/   

    This is a really flashy hyperactive way to market a product (in this case VW cars) on the web (Marketing and Advertising)
    Turbonium http://www.turbonium.com/

    When accounting for advertising firms, Susan Jeter recommended Adman from Marketing Resources Plus
    http://www.lib.polyu.edu.hk/electdb/DATAPRO/154-1.htm#prod30

    A great listing of URLs of companies selling accounting systems software
    http://www.lib.polyu.edu.hk/electdb/DATAPRO/154-1.htm

    Mitchell Levy really has a street-smart handle on what is happening on the streets of e-commerce (EC), e-marketing, and new
    technologies. I signed up. The main link to the newsletter is at http://ecmgt.com/ 

    Literature, Art, Marketing, and History
    Lurid Paperback Cover of the Week (a database of vintage covers of books) http://www.nwrain.com/~monlux/LuridPaperbackofWeek.html 

    A weekly updated commentary on the Vintage Paperbacks of the 30's, 40's and 50's, featuring artwork and editorials on the history of what was a uniquely American approach to the development of various forms of marketing for the newly invented paperback.

    From The Journal of Accountancy, December 2001, Page 21 --- http://www.aicpa.org/pubs/jofa/dec2001/news_web.htm 

    For the Discerning Consumer
    www.consumerreview.com

    This site features product reviews written by the people who know these items best—the consumers who purchase and use them. All candid reviews have strengths, weaknesses and summaries of the products. Categories include auto, computer hardware, electronics, and home and garden. These are further broken down into item-specific sections like desktops, notebooks and personal digital assistants

    Signs (Art, Advertising, Marketing, History) --- http://www.pjchmiel.com/photo/signs.html 

    Also see E-Commerce

    Marketing Research

    Bob Jensen's threads on e-Business and e-Commerce --- http://faculty.trinity.edu/rjensen/ecommerce.htm 

    e-Business and e-Commerce Data
    Internet.com --- http://www.internet.com/sections/marketing.html 

    Web data and statistics

    Builder.com --- http://builder.cnet.com/webbuilding/pages/Servers/Statistics/ 
    This site is great for definitions and explanations.

    Why Web usage statistics are (worse than) meaningless --- http://www.goldmark.org/netrants/webstats/ 

    Internet Sizer http://www.netsizer.com/  
    (This site has a link to a neat graph that shows the increase in Web use in a spinning real-time counter.  It resembles the counter on Times Square that used to show the increases in the U.S. National Debt.)

    Web Characterization --- http://wcp.oclc.org/ 

    Listings from Webreference.com --- http://webreference.com/internet/statistics.html

    Internet Statistics

    CyberAtlas (*)
    Internet market research and information site. Provides a periodic overview of Internet trends, demographics, marketing, and advertising information.
    CyberGeography
    Interesting collection of experiments and approaches in visualizing internet statistics and topology.
    GVU WWW User Surveys
    User surveys dating back to 1994. The surveys feature a wide variety of WWW usage and opinion-oriented questions.
    The Internet Index
    "An occasional collection of facts and statistics about the Internet and related activities." By Win Treese of Open Market.
    ISC: Internet Domain Survey
    Estimates the number of hosts and domains by doing a complete search of the Domain Name System. From the Internet Software Consortium.
    Media Metrix
    Web market research information and analysis service providing demographic data, measuring Internet and digital media audiences and usage since 1996.
    MIDS: Matrix Information and Directory Services
    MIDS provides statistics on about the Internet and estimates of its growth. Information is presented textually, graphically, and in geographic maps.
    Netcraft
    Conducts the Web Server Survey which tracks the usage of HTTP server software. Also offers a searchable hostname database.
    Nielsen Net-Ratings
    Online usage and popularity statistics.
    Nua's Internet Surveys
    An organized collection of Internet statistical surveys. Has digests of the important research reports and demographic surveys from the major research companies. Includes summary graphs and data of Internet statistics and trends. Offers a monthly newsletter.
    StatMarket
    In-depth statistics on a wide variety of Internet topics, and a sharp interface. StatMarket provides free global Internet usage statistics gathered from tens of thousands of web sites and and millions of daily visitors.
    TheCounter.com
    Detailed browser statistics, including information on monitor resolution, color depth and java/javascript usage.
    Yahoo: Statistics and Demographics
    Yahoo's collection of related sites.

    Other related sites

    Top Five Marketing Concerns for the Next Five Years What marketers will need to know in the future. http://www.newmedia.com/nm-ie.asp?articleID=3064 

     

    KnowThis Marketing Virtual Library --- http://www.knowthis.com/

    Marketing Research Helpers at http://go.hotwired.com/webmonkey/99/18/index3a.html/eg1999183

    Marketing on the Web (with some management helpers thrown in)
    KnowThis.com --- http://www.KnowThis.com/   

    Medicine and Madison Avenue (Marketing and Advertising History) 
    http://scriptorium.lib.duke.edu/mma/ 

    Thank you Kim Robertson

    Advertising World at http://advertising.utexas.edu/world/    
    Advertising Age at http://www.adage.com/
    Mousetracks Marketing List of Lists http://www.nsns.com/MouseTracks/tloml.html
    American Marketing Association http://www.ama.org/
    Tilburg University at http://cwis.kub.nl/~few/few/be/marketin/links.htm
    Wharton School of Business marketing links at http://hops.wharton.upenn.edu/othrmktg.html
    University of California long list of marketing links at http://blues.fd1.uc.edu/~machleka/imrl.html
    Braun's Brains at
    http://www.braunsbrains.com/favorite.htm

    The Corporate Library --- http://www.thecorporatelibrary.com/

     


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