Essentials of Personal Financial Planning

CHAPTER 2 THE STATEMENT ON STANDARDS IN PERSONAL FINANCIAL PLANNING SERVICES NO. 1

CASE STUDY

Renee Johnson, MAcc, CPA/PFS, has been practicing accountancy for over 20 years. After graduating from the University of Georgia and working at a regional accounting firm for 6 years, she decided to strike out on her own and has not looked back.

Renee is a solo practitioner, and she wears several hats at her firm: a CPA preparing tax returns, an investment adviser, a registered representative/securities broker, and a broker/insurance salesperson. Her activities are overseen by the AICPA’s Code of Professional Conduct, as well as the SEC, the Financial Industry Regulatory Authority (FINRA), and both the Georgia State Board of Accountancy and the Georgia State Department of Insurance. Renee readily admits that the regulatory oversight is daunting.

Her interest in personal financial planning (PFP) solidified in the 1990s after she attended a conference sponsored by the Personal Financial Planning Division of AICPA. Shortly after attending, Renee affiliated with a broker-dealer who provided investment advisory services, in addition to traditional investment brokerage. Within the past few years, she has acquired her state life, accident, and variable products licenses.

One of her tax compliance clients, Bob Wallace, has come to see Renee to review his tax organizer in preparation of his ...