Advanced Financial Planning

CFP^CM Certification Education Program Syllabus

Module VI - Advanced Financial Planning

COURSE DESCRIPTION: This module builds upon the foundations in Financial Planning and the knowledge requirements in Modules 2 to 5 to enable the CFP professional to construct a comprehensive Financial Plan for a client. Miscellaneous topics are also covered in this module.

DETAILED CLASS OUTLINE

Financial Planning Process

1	Establishing client- planner relationships
	a. Explain issues and concepts related to overall Financial Planning process, as appropriate to the client
	b. Explain services provided, the process of planning, documentation required
	c. Clarify client’s and certificant’s responsibilities
2	Gathering client data and determining goals and expectations
	a. Obtain information from client through interview/ questionnaire about financial resources and obligations
	b. Determine client’s personal and financial goals, needs and priorities
	c. Assess client’s values, attitudes and expectations
	d. Determine client’s time horizons
	e. Determine client’s risk tolerance level
	f. Collect applicable client records and documents
3	Determining the client’s financial status by analyzing and evaluating the client's information
	A. General
	a. Current financial status (e.g., assets, liabilities, cash flow, debt management)   b. Capital needs   c. Attitudes and expectations   d. Risk tolerance   e. Risk management   f. Risk exposure
	B. General Needs
	a. Emergency funds   b. Children’s education   c. Children’s marriage   d. Buying real assets like home, car, durables, etc.   e. Future lifestyle needs
	C. Special needs
	a. Divorce / remarriage considerations   b. Charitable planning   c. Adult dependent needs   d. Disabled child needs   e. Education needs   f. Terminal illness planning   g. Entrepreneurial needs planning
	D. Risk management
	a. Life insurance needs and current coverage   b. Disability insurance needs and current coverage   c. Medical insurance needs and current coverage   d. Long – term care insurance needs and current coverage   e. Homeowners insurance needs and current coverage   f. Auto insurance needs and current coverage   g. Commercial insurance needs and current coverage   h. Other liability insurance needs and current coverage (e.g., umbrella, professional, errors and omissions, directors and officers)
	E. Retirement
	a. Current retirement plan tax exposures   b. Current retirement plans   c. Retirement strategies
	F. Employee benefits
	a. Available employee benefits   b. Current participation in employee benefits
	G. Investments
	a. Current investments   b. Current investment strategies and policies
	H. Taxation
	a. Tax returns   b. Current Tax strategies   c. Tax compliance status (e.g., estimated tax )   d. Current tax liabilities
	I. Estate planning
	a. Estate planning documents   b. Estate planning strategies
4	Analyze Client Objectives, Needs and Financial Situation
	a. Analysis of relevant information
	b. Need for specialist advice
	c. Issues that require further clarification
5	Developing and presenting the Financial Plan
	A. Developing and preparing a client-specific Financial Plan tailored to meet the goals and objectives of client, commensurate with client’s value, temperament, and risk tolerance, covering
	5.1 Financial position
	a. Current statement   b. Projected statement   c. Projected statement with recommendations
	5.2 Cash flow
	a. Projections   b. Recommendations   c. Projections with recommendations
	5.3 Capital needs at retirement
	a. Projections   b. Recommendations   c. Projections with recommendations
	5.4 Capital needs projections at death
	a. Recommendations   b. Projections with recommendations
	5.5 Capital needs: disability
	a. Recommendations   b. Projections with recommendations
	5.6 Capital needs: General needs
	a. Recommendations   b. Projections with recommendations
	5.7 Capital needs: special needs
	a. Recommendations   b. Projections with recommendations
	5.8 Income tax   a. Projections   b. Recommendations   c. Projections with strategy recommendations
	5.9 Employee benefits
	a. Projections
	5.10 Asset allocation
	a. Statement   b. Strategy recommendations   c. Statement with recommendations
	5.11 Investment
	a. Recommendations   b. Policy statement   c. Policy statement with recommendations
	5.12 Risk
	a. Assessment   b. Recommendations
	5.13 List of prioritized action items
	a. Presenting and reviewing the plan with the client   b. Collaborating with the client to ensure that plan meets the goals and objectives of the client, and revising as appropriate
6	Implementing the Financial Plan
	a. Assist the client in implementing and recommendations
	b. Coordinate as necessary with other professionals, such as accountants, attorneys, real estate agents, investment advisors, stock brokers and insurance agents
7	Monitoring the Financial Plan
	a. Monitor and evaluate soundness of recommendations
	b. Review the progress of the plan with the client
	c. Discuss and evaluate changes in client’s personal circumstances, (e.g., birth/ death, age, illness, divorce, retirement)
	d. Review and evaluate changing tax law and economic circumstances
	e. Make recommendations to accommodate new or changing circumstances
	Miscellaneous Topics
8	Internet Resources
	a. Internet usage and application
	b. Transactions over the net
	c. Issues of security
	d. Financial Planning using the Internet
9	Foreign exchange issues for individuals
	a. Foreign Exchange Management Act (FEMA)
	b. Currency risk management
10	Financial Planning for special needs and clients
	a. Individual life cycle
	b. Financial Planning for unmarried clients, single parents, widows/widowers, etc.
	c. Financial Planning for returning Non Resident Indians
	d. Other special needs and options (e.g., divorce, bankruptcy)