Vol. 3   Issue. 1 - January 2011  www.cannonfinancial.com

Planning Ideas - Restricted Stock: Don’t Get Trapped

Main Content Inline Small   When working with high-net worth (HNW) and ultra-high net worth (UHNW) clients, it is not uncommon for advisors to encounter “restricted stock.” Understanding the nature of restricted stock and the planning issues associated with it assures that mistakes aren’t made and that opportunities are availed of.

    Restricted Stock - Rule 144 of the Securities Act of 1933 (1933 Act) governs the sale or transfer of restricted securities and provides a safe harbor from the statute's registration requirements provided certain conditions are met. Whether Rule 144 applies to a particular transaction and provides an exemption from registration depends on whether the securities to be transferred are restricted securities, control securities, or both. Read more.


Regulation and Compliance -
Facebook, Twitter, and other Social Media for Financial Advisors

   A challenge many advisors face is filling the pipeline with “qualified” prospects. In today’s digital world an increasingly attractive way for advisors to promote themselves and their services is through Facebook, Twitter, LinkedIn, and other social media. Currently, many firms ban advisors from using such sites, citing regulatory concerns. In fact, a poll last year indicated that 84 percent of advisors shy away from social media. On the other hand, interest in social media for marketing purposes is building steam.

   Several companies including Charles Schwab, TD Ameritrade and Merrill Lynch use Facebook pages for general information and marketing without providing specific investment advice. Some brokerages use Twitter the same way. Others cite the use of LinkedIn for recruiting. Read more.


Taxes - New Law,
New Opportunities

Main Content Inline Small   Just in time for the holidays, Congress enacted and President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The new tax law extends the Bush-tax cuts of 2001 and 2003 along with some of the Obama-era tax cuts from earlier in his administration.

Businesses, individuals, trusts and estates are all affected.

First and foremost, the new law extends the 10 percent individual income tax bracket to low income earners through 2012. In addition, the 25, 28, 33, and 35 percent individual income tax brackets, which were poised to increase to 28, 31, 36, and 39.6 percent respectively, are also extended through 2012. Read more.