Study Guide/Outline for Principles of Wealth Management 

The study guide is provided to describe what you can learn from this course.

Course material is a PDF document “Principles of Wealth Management.”

Chapter 1 – Financial Planning

When you have completed this chapter you should be able to:

  • Identify the purpose of financial planning;
  • List the major categories of financial planning;
  • Recognize the need for financial planning; and
  • List the traditional steps in the financial planning process.

Chapter 2 – Critical Issues in Managing Wealth

When you have completed this chapter you should be able to:

  • Recognize the principal issues faced by individuals in their creation and management of wealth, including –
    • maintaining purchasing power in retirement to offset inflation erosion of income,
    • paying for needed long term care services, and
    • minimizing estate transfer costs;
  • Identify appropriate strategies to –
    • estimate income level needed at retirement to maintain a client’s lifestyle,
    • provide for increasing retirement income to maintain purchasing power without risking capital exhaustion, and
    • address long term care risk;
  • Determine the principal causes of retiree purchasing power decline;
  • Discuss the probability that retirees will require long term care services, the current costs for those services and their funding sources; and
  • List the concerns that may affect appropriate asset transfer at death.

Chapter 3 – Annuities to Create and Distribute Wealth

When you have completed this chapter you should be able to:

  • Recognize the generally expanded role of annuities in the creation and management of client wealth;
  • List the available fixed annuity variations, including –
    • Bonus annuities,
    • Multi-year guarantee annuities, and
    • Indexed annuities;
  • Identify the features and benefits of indexed annuities that offer principal guarantees and interest crediting based on stock market gains; and
  • Discuss the risks, benefits and operation of variable annuities.