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Vol. 2 Issue 4 - April 2010 - www.cannonfinancial.com
Planning Ideas - Family Limited Partnerships
 The family limited partnership (FLP) has emerged as an important technique for helping clients
minimize federal transfer taxes and shift future appreciation to younger-generation family
members. Although FLPs have been subject to IRS attack, recent case law shed light on how to
properly set up and operate the FLP to obtain the hoped-for results.
Read More.
Practice Management -
Boomers: Beyond Retirement
 Most everyone has heard that the population is aging. For most advisors and financial services
companies, this has meant gearing up to help Baby Boomers transition from accumulation for
retirement to decumulation during retirement. Advisors have acquired technical expertise in
income planning and reallocation of portfolios to reflect changing risk profiles and time
horizons. They’ve learned about products like long-term care, annuities, and Roth conversions. Read More.
Taxes - Oops!
What I Meant to Say Was. . .
 Remember those Bush Era tax cuts associated with acronyms like EGTRRA 2001? Ordinary
income tax rates were compressed and reduced. Rates on investment capital gains and dividends
were slashed. The estate and generation-skipping transfer (GST) taxes were repealed. Of course
you remember, because you’ve been reminded lately that unless Congress acts this year, those
tax breaks are set to expire at the end of 2010 and we’ll return to the way things used to be in the
“good old days” circa 2001.
Read More
Regulation & Compliance - Plan Fiduciaries and Investment Advice
 Back in 2006, President George W. Bush signed the Pension Protection Act of 2006 (PPA) into
law. Among the changes enacted by the PPA was an exemption to ERISA’s prohibited
transaction rules for advice provided by a “fiduciary adviser” under an “eligible investment
advice arrangement.”
The exemption extended to advice provided to participants in certain retirement plans including
most prominently 401(k) plans and IRAs, but not advice to the plan itself.
Read More
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