Principles of Wealth Management
Principles of Wealth Management considers the important financial issues faced by all people, but felt most acutely by individuals nearing or about to begin retirement. It examines the critical issues of:
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Maintaining one’s lifestyle despite the loss of, or reduction in, earned
Maintaining one’s lifestyle despite the loss of, or reduction in, earned income •Protecting assets against the erosion of inflation and the
Protecting assets against the erosion of inflation and the destructiveness of long term care expenses •Transferring maximum assets to the next generation through the use of
Transferring maximum assets to the next generation through the use of life insurance, trusts and tax-efficient strategies In addressing these issues through the use of various insurance products, clients and their advisers become familiar with the features and benefits of fixed and variable annuities, life insurance and long term care insurance.
The course begins with a discussion of client needs and their identification through appropriate data-gathering. It addresses the nature of suitable recommendations based on a client’s objectives, time horizon and risk tolerance. The various annuity products and their features are examined, and their benefits are matched to client objectives and risk tolerance as preliminary steps before their recommendation to facilitate the meeting of client income and accumulation needs.
Long term care is considered, including the likely need, the probable costs and the sources of funding. Medicare, Medicaid, family assets and long term care insurance are examined as funding sources, and their advantages and disadvantages are discussed.
The role of life insurance—as a means of ensuring estate liquidity and facilitating tax-efficient strategies—is also addressed. Life insurance policy ownership is considered, and the advantages and disadvantages of ownership by a third party, e.g. a trust or adult children, are discussed.
Principles of Wealth Management has eight learning objectives that are reinforced by the examination.
1.To understand the critical issues in managing wealth
To understand the critical issues in managing wealth 2.To be able to discuss the different types of long term care
To be able to discuss the different types of long term care 3.To be able to explain the nature and extent of long term care costs
To be able to explain the nature and extent of long term care costs and the sources of long term care funding 4.To understand the methods of minimizing estate transfer costs
To understand the methods of minimizing estate transfer costs 5.To be able to explain the characteristics and tax treatment of fixed and
To be able to explain the characteristics and tax treatment of fixed and variable annuities 6.To be able to discuss the principal variations of fixed annuities
To be able to discuss the principal variations of fixed annuities 7.To be able to explain the basic characteristics of long term care
To be able to explain the basic characteristics of long term care insurance 8.To understand the process of planning for the accumulation, protection
To understand the process of planning for the accumulation, protection and transfer of wealth 