Course Outline:
Estate Planning
1. Estate Planning – An Overview
- Various ways that property can be owned and transferred
- Distinguish between the various forms of ownership
- Importance of documents required for estate planning
- Likely “targets of opportunity” for malpractice claims
- The concept of “privity” and to whom is the estate planner liable
- Various steps the planner can take to reduce the risk of malpractice suits
- Most common estate planning mistakes and ways to avoid such mistakes
2. Transfer of Property
- Transfers through the probate process
- Testamentary distribution
- Intestate succession
- Advantages and disadvantages of probate
- Assets subject to probate estate
- Probate avoidance strategies
- Ancillary probate administration
- Transfers by operation of law
- Transfers through trusts
- Transfers by contract
3. Estate Planning – Wills
- Definition and importance of will
- Types of wills
- Parties to a will
- Legal requirements of a will
- Terms and contents of a will
- Changing or revoking a will
- Major clauses of a will
- Will contents
- Intestacy
- Tax implications of a will
4. Gift and Gift Tax
- What to gift, why to gift, and when to gift
- Gifts that are subject to gift tax
- Exclusions and deductions
- Available credits
- Gift tax liability
Introduction to Financial Planning
1. This course provides an understanding of:
- The meaning and process of financial planning
- Basic steps in financial planning
2. Analyzing the Resources of the Person: This course provides an understanding of:
- Construction of personal financial statements as a tool for measuring personal wealth
- The importance of budgeting
- Evaluation of financial strength by using various ratios
3. Basic Concepts in Financial Planning: This course provides an understanding of:
- The concept of time value of money
- Need for diversified investment
- Investment strategies
4. Financial Products for Savers: This course provides an understanding of:
- Differences between saving and investment
- Product choices available for saving
5. Financial Products for Investors: This course provides an understanding of:
- Product choice available for investment
- Features of various investment products
- Difference between various investment products
6. The Psychographics and Life Cycle of the Investor: This course provides an understanding of:
- The various individual investor types
- How they are likely to carry out their financial programs
- Various stages in an individual’s life cycle
- How individuals are likely to carry out their financial programs in these stages
7. Goals and Investment Objectives: This course provides an understanding of:
- How individuals rationally approach various types of goals
- The broad investment objectives and how they influence the investment product choices
8. Tax Planning: This course provides an understanding of legal strategies that can be used to reduce federal income taxes such as:
- Tax-Deferred Retirement Plans
- Flexible Spending Account
- Home Equity Loan
- Tax-Exempt Bonds or Mutual Funds
9. Model Portfolio: This course provides an understanding of:
- Building a model portfolio for an individual
- Portfolio Allocation Scoring System (PASS)
- Portfolio Management
Insurance Concepts
1. Principles of Insurance
- What is Risk
- Key concepts in insurance business
- Methods to deal with risk
2. Analysis and Evaluation of Risk Exposures
- Three types of risks against which insurance is provided
- Legal aspects of insurance
3. Life Insurance
- Different terms used in life insurance policy
- Roles of life insurance
- Different types of life insurance
- Process to determine the amount needed for life insurance
- Different factors considered while selecting a life insurance policy
4. Underwriting and Claims
- Various terms used in underwriting process
- Various types of hazards
- Process of risk assessment
- Underwriting procedure
- Basis for premium calculation
- Procedure for handling claims
5. General Insurance – Individuals
- Auto insurance policy and its provisions
- Factors that affect auto insurance premium
- Homeowner’s insurance policy and its provisions
- Factors that affect homeowner’s insurance premium
- Various method to reduce homeowner’s insurance premium
6. Health, Long-term Care and Disability Insurance
- Health insurance
- Different types of health care insurance plans
- Features and provisions of each health care plan
- Concept of long-term care insurance and discuss its key features
- Concept of disability income insurance and discuss its key features
7. Actuarial Principles
- Role played by an actuary in the insurance industry and the nature of actuarial practice
- Difference between the principles and standards used in actuarial profession
- Principles of actuarial science based on probability and statistics, behavioral economics, actuarial models and financial security system
8. Group Insurance
- Group insurance contracts
- Group insurance underwriting and its various considerations
- Various group insurance policy provisions and group life insurance policy provisions
- Various factors for determining group insurance premiums
- Different types of group life insurance plans
9. Reinsurance
- Reinsurance and need for it
- Different types and methods of reinsurance
- Alternative risk transfer mechanisms in reinsurance
- Basic functions of reinsurance
10. Annuities
- Annuity and reasons to buy annuities
- Variables used to calculate annuity
- Operation of annuities
- Types of annuities
- Various annuity contract provisions
- Tax implications in annuities
- Various calculations involved in an annuity
Mutual Funds
1. Mutual Funds – Concept
- Concept of mutual funds
- Basic types of mutual funds
- Advantages of mutual funds
- Difference between mutual funds and bank deposits
2. Mutual Funds – Structure and Constituents
- Constituents and structure of a mutual fund
- Mutual funds in the USA and elsewhere.
- Difference between a mutual fund and a commercial bank
3. Various types of Mutual Fund products
- Basic classification of mutual funds
- Such other products similar to mutual funds
4. Management of bond fund portfolio
- Investment of bond funds
- Basic characteristics of a bond
- Bond valuation
- Risks in bond investment
- Techniques to enhance bond fund performance
- Managing the bond fund
5. Management of equity fund portfolio
- Equity portfolio
- Types of risks and returns that different asset classes offer
- Equity share
- The value of equity shares
- Three types of equity shares
- Equity research
- Valuation
- Passive and active portfolio management
- Portfolio strategies
6. Accounting and valuation of Mutual Funds
- NAV and its importance
- Calculating net asset value
- Valuing the assets of the mutual fund
- The financial statements that are prepared by the mutual fund
- The accounting principles followed by the mutual funds
7.Prospectus and Annual Reports of Mutual Fund
- Meaning and importance of mutual fund prospectus
- The contents of a mutual fund prospectus
- The operational aspects an investor should be familiar with
- What does the annual report contain?
- Shareholder expense
- Investment profile
- Statement of assets and liabilities
- Statement of operations
- Statement of changes in net assets
- Financial highlights
- Notes to financial statements
8. Evaluation of performance of mutual funds
- Measuring fund performance
- Measuring return
- Measuring risk
- Risk-adjusted return
- Comparing fund performance with a reference
- Various standardized performance systems
- Limitations of performance measurement and evaluation
9. Regulations of Mutual Fund Industry
- Contextual significance of mutual fund regulation
- Legal environment of mutual funds
- Supervision and regulation
- Principles of mutual fund regulation
- Standards
- Rights of investors
- Role of industry players in furthering regulatory objectives
- Market context
- Transparency and disclosure
- Limits on fees and expenses
- Internal governance within mutual fund complexes
Retirement Planning
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Analysis of Retirement Needs: On completion of this course, you will be able to:
- Define the term retirement planning and discuss its advantages and disadvantages
- Explain the assumptions of retirement planning
- Describe the steps involved in the retirement planning process
- Discuss various sources of income during retirement
- Explain different financial needs
- Explain the methods of drawing from retirement accounts
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Retirement Planning -Investment Considerations: On completion of this course, you will be able to:
- Define fiduciary
- Describe the requirements that govern fiduciary handling of qualified plan investments
- Discuss the types of prohibited transactions
- Understand the concept of unrelated business income
- Distinguish between the basic types of investments appropriate for a qualified plan
- Discuss the considerations for designing right life insurance
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Retirement Planning – Social Security: After the successful completion of this course, you will be able to:
- Understand the concept of social security
- Understand the eligibility criteria for receiving social security benefits
- Identify the various social security benefits
- Understand the computation of social security benefits
- Understand the income taxation of social security benefits
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Retirement Planning – Types: After the successful completion of this course, you will be able to:
- Define retirement plan
- Identify various types of retirement plans
- Describe various types of qualified plans
- Describe various types of non-qualified plans
