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Principles of Wealth Management #291226

Course Overview

Credit

Amount

CPA

9.5

CFP^®

CDFA^®

IAR/FINRA

Course Author: Paul J. Winn CLU ChFC Field of Study (CPA): Specialized Knowledge Field of Study (CFP): Financial Planning Field of Study (CDFA): Financial Planning Field of Study (IAR): Product & Practice

Course Description

Course publication/revision date: 1/15/2026.

Principles of Wealth Management examines the financial planning discipline, including Its need, as evidenced by the U.S. poverty rate, the U.S. savings rate, the lack of financial retirement readiness and the ever-increasing cost of higher education. The course details the principal steps in developing a financial plan, the critical issues in managing and protecting wealth, the products and concepts available to implement wealth management objectives and their tax treatment.

Table of Contents

Chapter 1 - Financial Planning1

Overview	1
Chapter Learning Objectives	1
Introduction	1
Financial Planning Defined	2
Scope of Financial Planning for the Individual Client	3
The Need for Financial Planning	3
U.S. Poverty	3
U.S. Saving Rate	4
International Saving Rates Compared	4
Effects of Saving Rate	6
National Effects of Saving Rate	6
Personal Effects of Saving Rate	6
Post-Secondary Education	7
Education and Future Income Correlation	7
Education and Unemployment	8
College Costs	8
Student Loan Debt	9
Is a College Education Worth It?	11
Financial Retirement Readiness	11
401(k) Plan Popularity	11
Shift to 401(k) Plans	12
401(k) Plan Funding	12
Deferral Amounts and Investments	12
Defined Benefit Pension Plans Decline in Favor of 401(k) Plans	12
Workers Unready to Retire	13
Workers Dealing with Insufficient Retirement Saving	14
Steps in Developing a Financial Plan	16
Obtaining Relevant Client Information	16
Personal Information	17
Client Attitudes, Values, Concerns, and Expectations	20
Financial Information	21
Annual Income	21
Liabilities	22
Assets	22
Relevant Documents	25
Summary	25
Chapter 1 Review Questions	27
Answers to Chapter 1 Review Questions	28

Chapter 2 - Critical Issues in Managing Wealth30

Overview	30
Chapter Learning Objectives	30
Maintaining One's Lifestyle	31
Providing Adequate Retirement Income	31
Overcoming Purchasing Power Risk	31
Protecting Assets While Facing Long-Term Care	33
Likelihood of Needing Long-Term Care	34
Types of Long-Term Care	34
Long-Term Care Costs	35
Sources of Long-Term Care Funding	36
Transferring Assets to the Next Generation	39
Determining Asset Disposition	40
Minimizing Estate Transfer Costs	40
Asset Retitling	41
Trust Creation	41
Deferred Charitable Giving Programs	45
Estate Tax Portability Provision	46
Ensuring Liquidity	46
Replacing Gifted Assets	46
Equalizing Inheritance	47
Providing Estate Liquidity	47
Summary	48
Chapter 2 Review Questions	49
Answers to Chapter 2 Review Questions	50

Chapter 3 - Annuities to Create and Distribute Wealth52

Overview	52
Chapter Learning Objectives	52
The Concept	53
Traditional Role	53
Accumulation Period	53
Distribution Period	56
Life Annuities	56
Temporary Annuities	59
Traditional Fixed Annuity Characteristics	59
Premiums	60
Number of Lives Covered	60
Annuity Starting Date	61
Accumulated Value	61
Payout	61
Tax Treatment	62
Taxability of Withdrawals	62
Taxability of Periodic Payments	62
Tax Rules Changed for Qualified LTC Coverage Charges	63
Tax Treatment of Deferred Annuities at Death	63
Fixed Annuity Variations	64
Multi-Year Guarantee Annuities	64
Bonus Annuities	65
Indexed Annuities	65
Variable Annuities	67
Summary	69
Chapter 3 Review Questions	70
Answers to Chapter 3 Review Questions	72

Chapter 4 - Long-Term Care Insurance to Protect Wealth75

Overview	75
Chapter Learning Objectives	75
The Concept	76
Benefits Provided by Long-Term Care Insurance	76
Nursing Home	76
Home Care	76
Assisted Living Facility	77
Adult Day Care Facility	77
Hospice Care	77
Benefit Triggers	78
Product Characteristics	79
Elimination Period	79
Benefit Period	80
Inflation Protection	80
Qualified Versus Nonqualified Policies	82
Tax Status of Long-Term Care Policies	82
Changed Benefit Triggers	83
Alternatives to Stand-Alone Long-Term Care Insurance	83
Deferred Annuity/LTC Hybrid Products	83
Life Insurance/LTC Hybrid Products	84
Summary	84
Chapter 4 Review Questions	85
Answers to Chapter 4 Review Questions	86

Chapter 5 - Facilitating Wealth Transfer87

Overview	87
Chapter Learning Objectives	87
The Concept	87
Providing Estate Liquidity	88
Cash in the Estate	88
Selling Assets	89
Borrowing	90
Using Life Insurance	90
Equalizing Inheritance	91
Replacing Gifted Assets	92
Characteristics of Life Insurance Policies	94
Whole Life Insurance	95
Premiums	95
Expenses	95
Cash Values	95
Death Benefits	95
Guarantees	95
Advantages and Disadvantages of Whole Life Insurance	96
Universal Life Insurance	96
Premiums	96
Expenses	97
Cash Values	97
Death Benefits	97
Guarantees	98
Advantages and Disadvantages of Universal Life Insurance	98
Survivorship Life Insurance	99
Advantages and Disadvantages of Survivorship Life Insurance	100
Summary	100
Chapter 5 Review Questions	102
Answers to Chapter 5 Review Questions	103

Chapter 6 – Wealth Accumulation & Protection104

Overview	104
Chapter Learning Objectives	104
Beginning the Process—Needs Assessment	105
Gathering Information	105
Setting Objectives and Priorities	106
Determining Risk Tolerance	108
Developing the Plan	109
Budgeting Income	110
Identifying and Evaluating Alternative Strategies	112
Wealth Accumulation	112
Wealth Protection	113
Long-Term Care Insurance for Working Adults	113
Long-Term Care Insurance for Older Purchasers	114
Wealth Transfer	115
Summary	116
Chapter 6 Review Questions	118
Answers to Chapter 6 Review Questions	119

Chapter 7 – Income Tax Planning120

Overview	120
Chapter Learning Objectives	120
Effect of Income Taxes on Accumulation	121
General Personal Income Tax Planning Principles	122
Income and Deduction Shifting	122
Acceleration and Deferral Techniques	123
Harvesting Year-End Investment Losses	124
Wash Sale Rules	124
Delayed Mutual Fund Purchases	125
Specific Personal Income Tax Strategies	125
Funding Retirement Income	126
Tax-Favored Employer Retirement Plans	126
Defined Benefit Plans	126
Defined Contribution Plans	127
New Plan Startup Cost Tax Credit	129
Amount of the Credit	129
Employer Plans May Be Adopted up to Tax Return Due Date	130
Solo 401 (k) Plans	130
Individual Retirement Plans	130
Traditional IRA	131
Roth IRA	131
Nonqualified Annuities	132
Funding Children's College Education	133
Qualified Tuition Programs	133
Prepaid Tuition Plans	134
College Savings Plans	134
Limits on Contributions	134
Tax Treatment of Qualified Tuition Programs	134
Qualified Tuition Program Contributions Not Deductible and are Considered Gifts	135
College Savings Plan Distributions may be Tax-Free	135
Rollovers from Qualified Tuition Programs to ABLE Accounts	137
OBBBA Makes Rollovers to ABLE Accounts Permanent	137
Qualified Tuition Program Advantages and Disadvantages	137
Coverdell Education Savings Account	138
Limits on Contributions	139
Eligible ESA Beneficiaries	139
Tax Considerations	140
Education Tax Credits	140
American Opportunity Credit	140
Lifetime Learning Credit	141
Education Savings Bond Program	142
Paying for Medical Care	144
Health Savings Accounts	144
HSA Eligibility	145
HSA Contributions	146
HSA Distributions	146
Account Transfer at Death	147
HSA Tax Treatment	147
Health Savings Account Benefits	149
Land Conservation Tax Credits	149
States May Offer Tax Incentives	149
Summary	150
Answers to Chapter 7 Review Questions	154

Glossary156

Appendix160

Income	162
Assets	163
Annuity Contracts	164
Education Funds	164
Retirement Assets	165

Course Details

Author: Paul J. Winn CLU ChFC

Paul J. Winn CLU ChFC — Financial Writer, Editor & Trainer. Education: B.A., St. John’s University (1961–1964); Law School, University of Virginia (1964–1965); MBA program Binghamton University (1986–1989); CLU (1985); ChFC (1987). Experience: Thirty years in the life insurance and investment industry (1965–1995). Thirty-one years as a financial writer, editor and trainer (1995–2026). Paul held positions at Mutual Life Insurance Company of New York as product developer and compensation officer; at Security Mutual Life Insurance Company as general agent, marketing vice president, and agency vice president; at Principal Financial Group as agency manager; and as president of Maryland Financial Corporation, managing a financial adviser corporation providing tax, investment and financial planning. As a writer and editor, Paul is a published book author whose books include Tax Planning from the Heart, Business Succession Planning, and Dominating Obamacare. He served as writer and editor of a major mutual life insurance company’s agent training university, created more than 200 insurance, securities and tax training courses in online, print and scripted classroom formats, and is the founder and CEO of Winn Publications LLC, a tax and insurance continuing education course licensor.

Publication/Revision Date: 1/15/2026

Course Exam Questions (online): 60 (multiple-choice)

Program Delivery Method: Self-Study (NASBA QAS Self-Study)

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None
CFP®	Overview	None	None
CDFA®	Overview	None	None
IAR	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

CFP Board Sponsor I.D.: 1008 — Course I.D.: 303225

Registered with the Institute for Divorce Financial Analysts

NASAA Sponsor I.D.: S17460 — Course I.D.: C80867

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: CPE .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Discuss the evidence indicating the need for comprehensive financial planning;
Recognize the steps in developing a client's financial plan;
Describe the critical issues in managing wealth;
Identify the principal products and concepts available to Implement and facilitate wealth management objectives; and
Apply the principles of wealth management to improve the financial situation of clients.

Online Book, Online Exam

$69.00

Hardcopy Book, Online Exam

$87.00