CFP® Financial Planning Education Program

This course introduces the practice of financial planning. The study begins by examining the financial planning process, ethics, and professional standards. An examination of core tasks for financial planning includes the use of financial statements, cash flow management, savings planning, and the use of credit. The course also examines behavioral finance, communication and psychology theory, and consumer protection laws. Particular attention is given to the time value of money and education planning. Additional topics include economics, financial regulation, and planning for special circumstances. Throughout the course, students learn to analyze financial planning cases.

This course offers a comprehensive overview of risk management and insurance planning. Topics include principles of risk and insurance, analysis and evaluation or risk exposures, property, casualty, and liability insurance, health insurance and health care cost management, disability income insurance, long-term care insurance, life insurance, income taxation of life insurance, business uses of insurance, insurance needs analysis, insurance policy and company selection, the use and taxation of annuities, and insurance employee benefits. Attention is given to the role of insurance planning in financial planning cases throughout the course.

Investment Planning is an introductory course to investments. The course covers investment alternatives; security markets and trading; risk and return concepts; discussion and analysis of stock and bond valuation; portfolio management and evaluation; options and futures; fundamental and technical analysis.

The primary objective of financial planning is to structure a client’s financial affairs so that the result produces an overall greater accumulation of wealth. There is an important correlation between the amount of income taxes paid and this objective. The less money paid toward income taxes, the more money a client has working to increase wealth. Also important to a client’s wealth accumulation is tax timing with avoidance, deferral, and elimination. This can be achieved through strategies such as accelerated depreciation and 1031 exchanges, and with life insurance products. This is sometimes referred to as tax alpha.

This module explains the federal income tax system. It considers what is included in a taxpayer’s income for income tax purposes and, perhaps more importantly, what is not included. The module also discusses the allowable deductions and credits given to an individual taxpayer to reduce the amount of taxable income and subsequent income tax liability. Upon completion of this module, you will understand how the taxable income and income tax payable for a given client is calculated. This is critical because it is widely agreed that taxes (along with inflation) present the greatest risks in the wealth accumulation process.

This course is a comprehensive study of personal and employee-sponsored retirement plans, familiarizing participants with methods of gathering information and selecting appropriate options to achieve the client’s retirement goals. This course identifies and evaluates assumptions used in analyzing retirement needs and recognizes the potential sources of income during retirement, including social security, employer plan benefits, personal savings and investments, individual retirement plans, and employment income.

This course provides participants with a complete overview of estate planning and adequate knowledge of the varied methods, tools and techniques necessary to develop effective estate plans. Topics include federal estate and gift taxation, gift and estate planning techniques, trusts use, life insurance as an estate planning tool, intra- family business and property transfers, charitable transfers, planning for incapacity and divorce planning. The program will also cover the estate planning process, wills, trusts, power of attorney and probate.

Students taking this course will be exposed to case analysis and integration of the six (6) major areas of personal financial planning (Fundamentals of Financial Planning, Insurance Planning, Investment Planning, Income Tax Planning, Retirement Planning and Estate Planning).

• The course will include 12 sessions with each session being approximately 3 hours.
• The class will form groups to develop and present their assigned case presentations.
• Students will be responsible for participating in classroom discussions of each case.
• Each group will present an oral presentation of their written financial plan of their assigned cases. Non-presenting groups will provide a written response.
• Outside classroom time will be required to meet with your assigned group to develop your financial plan presentations.