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.