European Stars And Stripes (Newspaper) - October 21, 1986, Darmstadt, Hesse                                Income tax comparison put tin retain cuffed for of Remur few to twi ref to. 1 in a priority.     in cont once comr Fatm. Inch ritual tax rate interact deductions Cunt fully deductible Compro Mim mortgage interest deductible Lor primary and secondary residences other personal interest costs no deductible alter four year phase out current 14 tax rates ranging from 11% id 50% Compromise for 19b7, five rates of 11%. 15%. 28%. 35%, 38.5% thereafter two rates of 15% and 28% personal exemption current �1 .080 in 1986 com Pronne $1,900 in 1937. $1,950 in 19b8. S2.000 in 1989. Reduced for upper income brackets Standard deduction current s3, 670 for 0it returns. 52 Iso Lor singles and Heads of households Compromise $5.000 for joint reims. $4,400 Lor Heads of households $3,000 for singles charitable contributions current deductible Compromise deductible Only Tor item leers iras current 52.000 lax deferred contribution each year Compromise restricted Lor upper income individuals earnings on Ira can accumulate Tan free 401 k savings plans current annual employee contribution of up to $30,000 to company sponsored tax deferred savings plan Compromise annual employee contribution up to $7.000 is lax deferred Chicago t Buno graphic source Chicago Tribune raws a Perth state and local taxes current fully deductible Compromise property and income taxes deductible sales taxes not deductible getting burned by a financial planner by David Vesey United press International t is As simple As placing an advertisement or hanging jul a sign that says financial planner open Lor business anyone can do it. By some Cotins As Many As 150,000 people have the problem is that the self described financial planners Are not required to have any Qualli cations logo into the business. The tear is thai too Many of these planners who will be working Lor an estimated 12 million americans by 1990. Do not know what they Are talking about and Many of their clients will Suiter for it. There Are efforts under Way to find the Oest Way to regulate the Industry and educate Consumers on How to sole qualified planners by meantime we do have a problem said Stanley Cahn. A financial planner with Legg Mason Wood Walker inc. In Washington there Are people who have been  among them Marcia Piccin a widow from Spring Valley by who invested the proceeds o her husband s life insurance policy with a financial planner. She has lost most of her $130.000 investment. Shirley Nelson a nurse trom Towa City who had to sue to recover Money trom a financial planner an insurance agent in this Case who promised a huge return on a $25,000 investment that he managed. Robert Smith of Westminster. Colo., who lost most of the $42,000 he invested Wilh a financial planner in a series of limited partnerships. Whal s the solution ii could be government regulation or a Industry self regulating organisation. But at this Point there is no consensus on tha Best course. Congress is interested. At the request o the House committee on Energy and Commerce the securities and Exchange commission is about to begin a study to define the problem. The Sec Roghan and regulates 10,000 investment advisers under the investment advisers act of 1940. As an indication of the rapid growth of the Industry there were Only 4.200 such advisers registered five years ago. Investment advisers Are defined As those who charge a tee for advice on buying or Selling securities. But As Sec chairman John Shad pointed out in congressional testimony in june not All financial planners arc investment advisers and not All the assets of . Households in percent Olney Worth for 1984 stocks and Mutual funds 6.b% equity in motor vehicles 6% quilt in business or profession 10.3% other interest other 2.4% earning accounts i vow includes . Savings Bonds and no interest gaming in Ecung accounts Chicago Tribune graphic source . Census Bureau investment advisers Are financial  for the most part registered investment advisers Are Large institutional Money managers. Relatively few of them said Shad Are retail level financial planners whose advice May cover securities insurance taxes real estate and other financial  according to Alexandra Armstrong president of the International association for financial planning planners need to be competent in a Range of subjects beyond invest meals. For millions of Middle income americans the Days of a simple pension plan and a passbook savings account Are Over. There has been an explosive proliferation of financial products marketed by Banks insurance companies and securities firms. Individuals now find Itiat their investment and savings decisions Are much More complicated than in the past said rep. Timothy Wilh. A Colo who chairs the Energy and Commerce committee s Subco Millee on telecommunications. Consumer Protection and finance. There is a vast array of options to consider on the Way to achieving financial goals. You look at income taxes savings budget wills insurance and that includes House Auto and disability. You have to consider retirement plans investments rental properties and review the entire financial situation Armstrong said. Consumers often assume that financial planners have been required by he government or the Industry to meet certain standards of practice Ehica conduct education and experience said Armstrong but thai is nol the Case. The Lack of statutory or regulatory definition of financial planner makes it possible for the income Elena and unscrupulous to enter the business. A s a major Mufti faceted problem said Stanley Cahn who is certified through the College of financial planning and a member of the Institute of certified financial planners an 1  professional organization based in Denver. The Institute makes an attempt at self regulation by requiring members to pass courses and adhere to an ethics code Cahn said he believes a certified financial planner designation should be required by All states. But he Page 16 the stars and stripes tuesday october 21,19b6