Advanced Financial Planning

CFP Certification

In India, Certified Financial Planner (CFP^CM) Certification programs are offered mainly by Financial Planning Standards Board India (FPSBI), a public-private enterprise and a body that guides the development and promotion of profess...
Career for CFP Certified

The financial industry is growing in leaps and bounds. There are many career opportunities and job openings in this ever-growing industry. Financial Planner Career is a corporate career track, even for those who run their own finan...
Benefits of CFP Certification

CFP^CM certification is recognized in 23 countries across the globe. Besides, the certification immediately get the trust of clients in comparison to other Financial Planners.

Module VI - Advanced Financial Planning

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

Financial Planning Process

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

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

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

Analyze Client Objectives, Needs and Financial Situation

a. Analysis of relevant information

b. Need for specialist advice

c. Issues that require further clarification

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

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

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

Internet Resources

a. Internet usage and application

b. Transactions over the net

c. Issues of security

d. Financial Planning using the Internet