©2012, College for Financial Planning, all rights reserved.

Welcome

Expectations of Students

• Commitment of time and energy • Read the assignments prior to class• This course will help you:

o grow your businesso be successful on the

College’s end-of-course examination

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Housekeeping Items1. Professor contact

informationLobby & Welcome e-mail

2. Tutorial in Lobby3. Status changes 4. Text chat5. Files for students6. Recordings7. Access Poll Layout

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©2012, College for Financial Planning, all rights reserved.

Module 1The Financial Planning Process

Foundations in Financial PlanningSM Professional Education Program

Learning Objectives

1-1: Describe personal financial planning or an aspect of it.

1-2: Define a personal financial goal to make it specific.

1-3: Identify steps in the personal financial planning process.

1-4: Identify the information required for analysis, creation, and implementation of personal financial planning recommendations.

1-5: Identify an ethical duty or principle of conduct of the financial planning professional.

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Play Video• LOs as Your GPS• 5:00 minutes• Play video from

Video Layout

Video

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Text chat or other questions

Questions To Get Us Warmed Up

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Financial Goals

Should be specific in terms of:• Purpose• Amount • Time Frame

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Six Steps in the Financial Planning Process

1. Establishing and defining the relationship with the client

2. Gathering client data, including goals

3. Analyzing and evaluating the client’s financial status

4. Developing and presenting financial planning recommendations and/or alternatives

5. Implementing the financial planning recommendations

6. Monitoring the financial planning recommendations

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Financial Planning

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Knowledge Required for Analysis & Plan Creation

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TopicModule(s)

Cash management and the use of debt 2

Investment strategies and products 4 and 5

Tax implications of financial decisions 6

Retirement planning issues 7

Management of personal risks and insurance

8 and 9

Estate planning issues 10

Ethical & Regulatory Issues• CFP Board’s Seven

Principles

• Rules of Conduct

• Disciplinary Procedures

• Regulatory issues

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CFP Board’s Seven Principles

1. Integrity2. Objectivity3. Competence4. Fairness5. Confidentiality6. Professionalism7. Diligence

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Rules of Conduct

Revised in 2008 from ‘duties owed’ to Rules of Conduct• Defining the Relationship with the

Prospective Client or Client • Information Disclosed to Prospective Clients

and Clients • Prospective Client and Client Information

and Property • Obligations to Prospective Clients and

Clients • Obligations to Employers • Obligations to CFP Board

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Disciplinary Procedures

CFP Board disciplinary procedures seek to provide

a fair and reasonable process

for a CFP® professional when allegations of Code of Ethics violations and/or Practice Standards non-compliance occur.• Request for Investigation

• Investigation Hearing Panel

• Disciplinary and Ethics Commission

• Appeals Committee

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Forms of Discipline

If grounds for discipline are established, the Disciplinary

and Ethics Commission of the CFP Board may impose any

of the forms of discipline below. 1. a private written censure2. a public letter of admonition3. suspension of the right to use the

CFP® marks for a specified period of time, not to exceed five years

4. permanent revocation of the right to use the CFP® marks.

Note: All disciplinary actions, except private written censure, may be publicly disseminated.

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Regulatory Issues

• Regulations affecting marketers of insurance products o generally at the state level

• Securities & Exchange Commission (SEC) registration—o federal regulation—Investment Advisers

Act of 1940o regulates those who offer investment

adviceo Registered Investment Adviser (RIA)

• FINRA regulates and administers testing for those involved in the sales of securities

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Question 1

The steps identified in the financial planning process are most closely related to which one of the following CFP Board processes?a. Disciplinary Proceduresb. Code of Ethicsc. Practice Standardsd. Rules of Conduct

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Question 2

Which one of the following would be considered a valid and well-stated personal financial goal?a. Save $1 million and retire early to a

cabin up in the mountains.b. Accumulate $20,000 in five years for

down payment on a house.c. Buy a new car sometime within the

next two years.d. Borrow money from the 401(k) at work

to buy investment property.

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Question 3

Which one of the following would not be considered quantitative data?a. health statusb. education needsc. general family profiled. copies of important documents

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Question 4

Which one of the following is a principle in the CFP Board Code of Ethics?a. trustworthinessb. loyaltyc. honestyd. competency

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Question 5

Which of the following would be the type of documents one would gather from a client in the financial planning process? I. wills and trustsII. product warrantiesIII. travel documentsIV. insurance contractsa. I and II onlyb. I and IV onlyc. II and III onlyd. III and IV only

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©2012, College for Financial Planning, all rights reserved.

Module 1End of Slides

Foundations in Financial PlanningSM Professional Education Program