Description
The Wealth Management Education Program prepares advisors to help clients capitalize on opportunities to preserve, grow, and transfer their wealth. Highlighting the concerns of high net worth individuals, this course delves into investment risk and return concepts as well as asset allocation and particular retirement needs. Other sections of AWMA cover preserving wealth through insurance and tax savings strategies. Business owner and key executive concerns are also included in this course. Ethics and regulatory aspects of financial planning for high net worth clients ties all aspects of the course together.
Learning Objectives
"After completing this course you should be able to:
1. Explain the cycle of financial life and aspects of an advisor’s relationship with a client; and create a statement of financial position and income statement.
2. Explain and understand investor types, investor personalities, psychological aspects of investing, and the elements of an investment policy statement.
3. Explain and apply fundamental concepts of risk and time value of money principles.
4. Describe characteristics of major asset classes and principles of asset allocation, asset valuation, and investment analysis; and calculate common stock value and potential returns of client portfolios.
5. Identify fundamental investment strategies; and calculate values using dollar cost averaging, value averaging strategies, and the Graham valuation formula.
6. Explain fundamental concepts and strategies of tax planning.
7. Explain and discuss fundamental retirement planning principles and plans.
8. Explain and discuss certain financial planning issues of the small-business owner; and calculate effective yields using appropriate tactics and investment vehicles available to the business owner.
9. Explain the characteristics of certain compensation plans for highly compensated executives; distinguish characteristics of various types of NQDC plans; and evaluate the tax implications of life insurance and equity-based compensation plans.
10. Explain important characteristics and issues relating to life insurance and annuities; and calculate life insurance needs using a three-step model.
11. Describe and identify fundamental estate planning principles and issues.
12. Describe and identify regulatory and ethical issues, ethical duties and principles of conduct, and the relationship to ethical behavior to the asset management process; and analyze investment professional and client situations to determine which principle of conduct applies.
13. Identify risk management issues, including property, liability, and life insurance products, as they relate to high net worth individuals; explain the elements to consider in selecting a mutual fund and the characteristics of hedge funds, commodity funds, and writing options for income; and analyze a situation to determine an appropriate risk management technique.
14. Identify the alternative minimum tax and self-employment tax computation, the characteristics of, and informal funding for, nonqualified deferred compensation and executive performance plans, and the characteristics of incentive stock option and nonqualified stock option plans and ESOPs as tools of wealth management for individuals of high net worth; and analyze situations in which estimated income tax payments will be necessary and situations relating to the taxation of these various plans.
15. Identify clients who have a sufficient net worth to require special planning to reduce transfer taxes, protect their estates, and transfer their closely held businesses; identify and explain specific techniques that high net worth clients can use to avoid, reduce, or delay payment of the federal gift, estate, and generation-skipping transfer taxes; identify and explain specific techniques that high net worth clients can use to protect their assets from creditors; and identify and explain specific techniques that high net worth clients can use to transfer a closely held business to a family member or stranger in a tax-efficient manner.
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