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Private Wealth Management #194226

Course Overview

Credit

Amount

CFP^®

Course Author: G. Victor Hallman PhD, Jerry S. Rosenbloom PhD Field of Study (CFP): General Principles of Financial Planning

Course Description

This is a Beacon Hill Course-in-a-Book^TM title: A self-study CE course that is based on an industry book that is popular with financial professionals.

For this Course-in-a-Book^TMtitle, you normally have two purchase options:
– Purchase the “Hardcopy (paperback) Book (mailed), Online Exam” or
– Purchase the “Online Exam ONLY (You Have the Book/eBook)”

However. the printed book is currently unavailable. If you do not already have the book, purchase “Online Exam ONLY ” here and then purchase the eBook from the publisher.

Course Description:

This course provides financial advisors with a detailed and comprehensive study of the key financial planning issues and questions facing the financial advisor. It provides the latest financial thinking and proven high return/low risk strategies in virtually every applicable area of financial planning.

Table of Contents

1. Nature and Objectives of Private Wealth Management3

Need for Wealth Management Services	3
Wealth Management over a Family's Economic Life Cycle	3
Focus on Objectives and Planning Strategies	4
Financial Planning Process	13
Case Example—Personal Financial Statements	15
Ethics and Wealth Management	20

2. Environment for Wealth Management23

Institutional Environment	23
Economic Environment and Wealth Management	37
Tax Environment and Wealth Management	51

3. Valuation Concepts in Wealth Management55

Capital Accumulation Concepts	55
Valuation Factors for Estate Planning and Wealth Transfer	62

4. Basic Investment Planning and Strategies69

Investment Theories	69
Factors in the Choice of Investments	81

5. Common Stocks101

Stock Valuation Concepts	101
Portfolio Development and Analysis	107
Diversifying a Common Stock Portfolio	110
Decisions Concerning Selling Common Stocks	111
Dollar Cost Averaging	111
Types of Orders in Buying and Selling Common Stocks	112
Margin Accounts	112
Selling Short	113
Investment Categories of Common Stock	114
Some Theories (Strategies) of Common Stock Investment	116
The Case for Long-Term Investments in Common Stocks	118

6. Real Estate and Other Equity Investments123

Real Estate	123
Oil and Gas Ventures	132
Impact of Passive Activity Loss Rules	133
Put and Call Options	134
New Issues or Initial Public Offerings	136
Commodity Futures Trading	136
Gold and Other Precious Metals	137
Art, Antiques, Coins, Stamps, and Other Collectibles	138

7. Fixed-Income Investments139

Ways of Taking Returns from Bonds	139
Corporate Bonds	141
Municipal Bonds (Munis)	142
U.S. Government Obligations	146
Other U.S. Government and Agency Securities	148
Mortgage- and Asset-Backed Securities (Pass-Through Securities)	148
Floating-Rate Bonds and Funds	149
Market Discount Bonds	149
Zero-Coupon Bonds (Zeros)	150
Preferred Stocks	150
Guaranteed Principal Fixed-Income Investments	151
Cash Equivalents (Liquid Assets)	152
Conversion Privileges in Fixed-Income Securities	153
Bond Ratings and Investment Quality	154
Strategies for Investing in Fixed-Income Securities	155

8. Investment Companies and Alternative Investments159

Kinds of Investment Companies	159
Why Invest in Mutual Funds?	159
Limitations of Mutual Funds	160
Types of Funds and Planning Considerations	160
Unit Investment Trusts	163
Regulation of Investment Companies	163
Withdrawals from and Redemptions and Exchanges of Mutual Funds	164
Mutual Funds and Their Investment Objectives	164
Index Funds	168
Exchange-Traded Funds (ETFs)	170
Tax-Managed Funds	170
Mutual Fund Performance	171
Mutual Fund Expense Ratios	173
Factors Involved in Selecting Mutual Funds	174
Tax Aspects of Mutual Funds	175
Closed-End Companies	177
Look Out for Buying a Dividend	177
Hedge Funds and Private Equity Funds	177

9. Asset Allocation Strategies and Financial Management181

Steps in the Asset Allocation Process	181
Financial Management	188

10. Income Tax Fundamentals199

The Federal Income Tax on Individuals	199
The Federal Income Tax on Corporations	214
Pass-Through Business Entities	217
Federal Income Taxation of Trusts and Estates	218
State and Local Income Taxes	220

11. Income Tax Reduction and Management Techniques for Individuals221

Tax Elimination or Reduction	221
Shifting the Tax Burden to Others	226
Allowing Wealth to Accumulate Without Current Taxation and Postponing Taxation	227
Taking Returns as Capital Gains	229

12. Education Planning239

Importance as a Financial Objective	239
Nature and Growth of Education Costs	239
Estimating Education Costs	240
Financial Aid Considerations	241
Tax "Breaks" for Education Costs	241
Strategies in Planning for Education Costs	243
Advance Funding for Education Costs	244

13. Retirement Needs Analysis, Social Security, and Employer-Provided Qualified Retirement Plans259

Retirement Needs Analysis	259
Social Security (OASDHI)	263
Characteristics of Employer-Provided Retirement Plans	269
Regulation of Qualified Retirement Plans	280
Nonqualified Retirement Plans	284
Pension Plans	285
Profit-Sharing Plans	287
Savings (Thrift) Plans	289
Cash or Deferred Arrangements—Section 401(k) Plans	290
Illustration of the Power of Tax Deferral	293
Stock Bonus Plans and Employee Stock Ownership Plans (ESOPs)	296
Hybrid Qualified Retirement Plans	297
Retirement Plans for the Self-Employed (HR-10 or Keogh Plans)	298

14. Other Employer-Provided Retirement Plans and Employee Benefits303

Other Employer-Provided Retirement Plans	303
Other Employee Benefits	309

15. Individual Retirement Accounts and Annuities (IRAs)313

Basic Concepts	313
Types of IRAs	313
IRA Rollovers and Direct Transfers	322
Financial Institutions That Offer IRAs	323
IRA Investments	323
Planning Issues for IRAs	323

16. Planning for Taking Distributions from Retirement Plans329

General Considerations Affecting Planning	329
Taxation of Benefits from Qualified Plans and IRAs	332
Planning for Distributions from Qualified Retirement Plans and IRAs	348

17. Individual Investment Annuity Contracts355

Fundamental Purposes of Annuities	355
Types of Individual Annuities	356
Parties to the Annuity Contract	360
Phases of Annuities	361
Investment Returns on Annuities	361
Expense Charges on Annuities	363
Withdrawals and Loans	364
Exchanges of Annuities	365
Annuity Payout Options	365
Annuity Death Benefits	365
Guaranteed Minimum Benefits Under Variable Annuities	367
Underwriting of Individual Annuities	369
Taxation of Nonqualified Annuities	369
Charitable Gift Annuities	373
Using Life Insurance Values to Provide Retirement Income	373
Planning Issues for Nonqualified Annuities	373

18. Employee Stock Compensation Plans377

Types of Plans	377
Provisions of Stock Option Plans	384
Valuation of Stock Options	387
Some Caveats Concerning Stock Options and Other Plans	389
Planning Issues Regarding Stock Options and Other Stock Plans	390

19. Charitable Giving Techniques393

Basic Tax Principles	393
Planning Techniques	395

20. Basic Insurance Principles and Selecting Insurers413

Personal Risk Management	413
Basic Insurance Principles	414
Considerations in Choosing an Insurer	414
Considerations in Choosing an Agent or Broker	418
Information about Financial Advisers	418

21. Life Insurance and Social Security419

Sources of Life Insurance Protection	419
Types of Individual Life Insurance Contracts	421
Definitions of Life Insurance for Income Tax Purposes	436
Single-Premium Life Insurance	437
Some Important Life Policy Provisions	437
Cash Values and Nonforfeiture Options	439
Uses of Policy Dividends	440
Settlement Options	441
Supplementary Benefits Added to Individual Life Insurance Contracts	441
Planning and Using Life Insurance	443
Substandard Risks	444
Nonmedical Life Insurance	445
What Actions Can an Uninsurable Person Take?	445
Group Life Insurance	445
How Much Life Insurance Is Needed?	446
Life Settlement Transactions	449

22. Health and Disability Income Insurance451

Sources of Health Insurance Protection	451
Disability Income (Loss-of-Time) Coverages	452
Medical Expense (Health) Coverages	458
Health Savings Accounts and Health Reimbursement Arrangements	469

23. Long-Term Care Insurance and Medicaid Planning473

Basic Planning Approaches	474
Long-Term Care (LTC) Insurance and Other Arrangements	474
Medicaid Planning for Long-Term (Custodial) Care	479

24. Property and Liability Insurance487

Property Insurance	487
Personal Liability	488
Homeowners Insurance	489
Automobile Insurance	493
Other Property and Liability Policies to Consider	496

25. Estate Planning Principles503

Objectives of Estate Planning	503
Methods of Property Disposition	504
Property and Property Interests	504
What Is Meant by the Probate Estate?	511
Gross Estate for Federal Estate Tax Purposes	511
State Death Tax Value	512
The Net Estate to One's Heirs	512
Settling the Estate	514
Trusts in Estate Planning	516

26. The Transfer Tax System523

Impact of American Taxpayer Relief Act (ATRA) of 2012	523
Applicable Credit Amount (Unified Credit) and Applicable Exclusion Amount	524
Federal Gift Tax	524
Federal Estate Tax	531
Federal Generation-Skipping Transfer (GST) Tax	542

27. Lifetime Giving and Other Intrafamily Techniques547

Making Lifetime (Inter Vivos) Gifts to Noncharitable Donees	547
Sales Within the Family	561
Loans to Family Members	564

28. Marital Deduction Planning, Postmortem Planning, and Estate Liquidity565

Marital Deduction Planning	565
Marriage Equality and Tax Planning	580
Postmortem Estate Planning	581
Estate Liquidity	583

29. Life Insurance in Estate Planning585

Taxation of Life Insurance	585
How to Arrange Life Insurance	591
Gifts of Life Insurance	598

30. Revocable Living Trusts and Property Management Arrangements601

Revocable Living Trusts as a Will Substitute	601
Joint Property with Right of Survivorship	604
Property Management Arrangements to Deal with Physical or Mental Incapacity	605

31. Types of Business Entities and Business Planning611

Potential Issues	611
Characteristics of Closely Held Businesses	612
Types of Business Entities	612
Further Thoughts on the Legal Liability Issue	619
Check-the-Box Regulations	619
Factors in Choice of Entity	621
Disposition of Business Interests	625
Chapter 14 Special Valuation Rules	633
Should a Business Interest Be Sold or Retained for the Family?	633
Estate Liquidity Through Section 303 Redemptions	634

Course Details

Author: G. Victor Hallman PhD, Jerry S. Rosenbloom PhD

Publication/Revision Date: 7/27/2015

Course Exam Questions (online): 140 (multiple-choice)

Program Delivery Method: Self-Study

Available Format of Course Text: The printed book is currently unavailable. Purchase the eBook from the publisher (see Course Overview for a link) and then purchase the Online Exam from us.

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CFP®	Overview	None	None

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

Sponsor ID Numbers

CFP Board Sponsor ID: 1008 — Course ID: 196433

Learning Objectives

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

Part I Chapters 1-3 Introduction

Define the nature and objectives of private wealth management.
Recognize the valuation concepts used in wealth management.

Part II Chapters 4-9 Investment Planning and Financial Management

Recall the theory on which investment planning is based.
Define the key metrics for measuring investment returns.
Define risk with respect to investment planning.
Define net asset value and how it factors into investment decisions.
Discern how taxation effects investment strategy.
Define fixed-income investments.
Differentiate between the characteristics of the most common investment vehicles.
Define risk as it relates to the individual investment vehicles.
Recall alternative investment vehicles and when they should be incorporated into a plan.
Recognize the advantages of asset allocation.

Part III Chapters 10-11 Income Tax Planning

Differentiate between the fundamental characteristics of tax on individuals and the various types of business entities.
Recognize the key income tax reduction and management techniques available to individuals.

Part IV Chapter 12 Financing Education Expenses

Define the key considerations for effective education planning.

Part V Chapters 13-18 Retirement Planning, Stock Compensation, and Other Employee Benefits

Define the main attributes of Social Security retirement benefits.
Define the characteristics of employer-provided retirement plans.
Define the basic concepts of individual retirement accounts.
Define the basic concepts of annuities.
Recognize the key considerations for taking distributions from retirement plans.
Define stock option plans as retirement vehicles.

Part VI Chapter 19 Charitable Giving

Define the tax benefits of charitable giving.

Part VII Chapters 20-24 Insurance Planning and Risk Management

Define insurance in the context of risk management.
Recognize the various types of insurance vehicles.
Recognize the various types of health and disability income insurance vehicles.
Define the basic planning approaches to long-term care insurance.
Define the basic planning approaches to Medicaid.

Part VIII Chapters 25-30 Estate Planning

Recognize the key objectives of estate planning.
Define what is meant by the “estate.”
Associate the key considerations for estate planning and taxation.
Recall the role of living trusts in estate planning.

Part IX Chapter 31 Planning for Business Interests

Define the tax liability of the various types of business entities.
Define how owner liability is treated based on type of business entity.
Recall the primary planning considerations for business continuation.