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					             THE TOOLS AND TECHNIQUES OF FINANCIAL PLANNING
                                9th Edition
                                  Outline

CHAPTER 1       WHAT IS FINANCIAL PLANNING?
  A. WHAT A FINANCIAL PLANNING REPORT SHOULD COVER

CHAPTER 2       WHO IS A FINANCIAL PLANNER?
  A. THE “CO-OP” APPROACH TO FINANCIAL PLANNING
  B. PROFESSIONAL FINANCIAL PLANNING EDUCATION AND CREDENTIALS
     1. The College For Financial Planning http://www.cffp.edu/
     2. Certified Financial Planning (CFP) Board of Standards www.cfp.net
     3. Financial Planning Association (FPA) www.fpanet.org
     4. The American College www.theamericancollege.edu/
     5. The Society of Financial Service Professionals www.financialpro.org
     6. AICPA – Personal Financial Specialist (CPAPFS) pfp.aicpa.org
     7. National Association of Personal Financial Advisors (NAPFA) www.napfa.org

CHAPTER 3       STEPS IN THE FINANCIAL PLANNING PROCESS
  A.   ESTABLISH THE RELATIONSHIP
  B.   GATHERING BACKGROUND INFORMATION
  C.   ESTABLISHING FINANCIAL OBJECTIVES
  D.   DEVELOPING FINANCIAL PLANS
  E.   CONTROLLING AND EXECUTING PLANS
  F.   MEASURING PERFORMANCE

CHAPTER 4       TOOLS IN THE FINANCIAL PLANNING PROCESS
  A. WHAT ARE THEY?
     1. Planning
     2. Implementation
     3. Management
  B. GOLDEN PRINCIPLES OF FINANCIAL PLANNING

CHAPTER 5       ATTITUDES AND BEHAVIORAL CHARACTERISTICS OF CLIENTS
  A. INFLUENTIAL FACTORS
  B. STEREOTYPICAL BEHAVIOR
  C. WHERE CAN I FIND OUT MORE ABOUT IT?

CHAPTER 6       FINANCIAL SERVICES INDUSTRY REGULATIONS
  A. INTRODUCTION
  B. PART – REGULATION
     1. Definition of an Investment Adviser
     2. Exclusions from the Definition
     3. Exemptions from Registration
     4. Are Financial Planners Investment Advisers?
         a. Compensation Element
         b. Subsidiaries and Affiliates
         c. The Exception for Accountants
     5. Brochure Rule
     6. Books and Records – Inspections
     7. Prohibited Contractual and Fee Provisions
     8. Restrictions on Use of the Term “Investment Counsel”
     9. Anti-Fraud Provisions and Disclosre Requirements
     10. Fiduciary Duty
     11. Responsibility for Compliance – SEC Assistance
     12. State Requirements
     13. Compliance Requirements of CFP Certificants
  C. PART II – REGISTRATION
     1. Introduction
     2. General Filing Requirements
     3. Investment Adviser Public Disclosure
     4. Form ADV
     5. Amending Form ADV
     6. Balance Sheets
     7. Withdrawal from Registration – Form ADV-W
  D. SECURITIES REGULATION OF BROKER-DEALERS AND ASSOCIATED PERSONS
     1. Federal Regulation
     2. State Regulation
  E. INSURANCE REGULATION

CHAPTER 7      ETHICS AND DISCIPLINARY RULES
  A. WHAT ARE ETHICS?
  B. OVERVIEW
  C. CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS
     1. Who is the CFP Board of Standards?
        a. Mission Statement
        b. Ends Statements
     2. Introduction – Ethics and Discipline
     3. Code of Ethics And Professional Responsibility
     4. Overview
        a. Preamble and Applicability
        b. Composition and Scope
        c. Compliance
     5. Principles
        a. Principle 1 – Integrity
        b. Principle 2 – Objectivity
        c. Principle 3 – Competence
        d. Principle 4 – Fairness
        e. Principle 5 – Confidentiality
        f. Principle 6 – Professionalism
        g. Principle 7 – Digilience
     6. Rules
        a. Rules that Relate to the Principle of Integrity
        b. Rules that Relate to the Principle of Objectivity
        c. Rules that Relate to the Principle of Competence
        d. Rules that Relate to the Principle of Fairness
        e. Rules that Relate to the Principle of Confidentiality
        f. Rules that Relate to the Principle of Professionalism
        g. Rules that Relate to the Principle of Diligence
     7. Advisory Opinion 2000-1
        a. Background
        b. Issue
        c. Analysis
        d. Rule 202
        e. Borrowing from a Client
        f. Exceptions
        g. Lending to a Client
        h. Rule 607
        i. Whether the Client is the Borrower or Lender
        j. Exceptions
        k. Summary
      8. Advisory Opinion 2003-1
         a. Background
         b. Issue
         c. Analysis
         d. Use of the Term “Fee-Only”
         e. Potential Rule Violations
         f. Rule 401
         g. Rule 402
         h. Rule 101(a) and (b)
         i. Summary
     9. Sample Disclosure Forms
     10. Disciplinary Procedures
         a. Disciplinary Process and Procedures
         b. Forms of Discipline
         c. Grounds for Discipline
  D. SOCIETY OF FINANCIAL SERVICE PROFESSIONALS
     1. Introduction
     2. Code of Professional Responsibility
         a. Preamble
         b. Canons
  E. NATIONAL ASSOCIATION OF PERSONAL FINANCIAL ADVISORS
     1. History and Mission
     2. Core Values
     3. NAPFA Code of Ethics
     4. NAPFA Fiduciary Oath
         a. What the Fiduciary Oath means to you – the client
     5. Standards of Membership and Affiliation
         a. NAPFA's definition of a Fee-Only financial planner
         b. Prohibition of certain ownership interests and employment relationships
         c. Compliance with NAPFA standards and industry regulations
         d. Prompt notification of certain disciplinary and legal events

CHAPTER 8       FINANCIAL PLANNING PRACTICE STANDARDS
  A. WHAT ARE PRACTICE STANDARDS?
  B. CFP BOARD FINANCIAL PLANNING PRACTICE STANDARDS
     1. Overview
     2. Statement of Purpose for Financial Planning Practice Standards
     3. Description of Practice Standards
     4. Format of Practice Standards
     5. Compliance with Practice Standards
  C. PRACTICE STANDARD 100 SERIES: ESTABLISHING AND DEFINING THE RELATIONSHIP WITH
     THE CLIENT
     1. 100-1: Defining the Scope of the Engagement
        a. Explanation of this Practice Standard
        b. Effective Date
        c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
        d. Anticipated Impact of this Practice Standard
             i. Upon the Public
             ii. Upon the Financial Planning Profession
             iii.. Upon the Financial Planning Practitioner
  D. PRACTICE STANDARDS 200 SERIES: GATHERING CLIENT DATA
     1. 200-1: Determining a Client’s Personal and Financial Goals, Needs and Priorities
        a. Explanation of this Practice Standard
        b. Effective Date
        c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
        d. Anticipated Impact of this Practice Standard
          i. Upon the Public
          ii. Upon the Financial Planning Profession
          iii. Upon the Financial Planning Practitioner
   2. 200-2: Obtaining Quantitive Information and Documents
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
      d. Anticipated Impact of this Practice Standard
          i. Upon the Public
          ii. Upon the Financial Planning Profession
          iii. Upon the Financial Planning Practitioner
E. PRACTICE STANDARDS 300 SERIES: ANALYZING AND EVALUATING THE CLIENT’S
   FINANCIAL STATUS
   1. 300-1: Analyzing and Evaluating the Client’s Information
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
      d. Anticipated Impact of this Practice Standard
          i. Upon the Public
          ii. Upon the Financial Planning Profession
          iii. Upon the Financial Planning Practitioner
F. PRACTICE STANDARDS 400 SERIES: DEVELOPING AND PRESENTING THE FINANCIAL
   PLANNING RECOMMENDATION(S)
   1. Preface to the 400 Series
   2. 400-1: Identifying and Evaluating Financial Planning Alternative(s)
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
   3. 400-2: Developing the Financial Planning Recommendation(s)
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
   4. 400-3: Presenting the Financial Planning Recommendation(s)
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
      d. Anticipated Impact of this Practice Standard
          i. Upon the Public
          ii. Upon the Financial Planning Profession
          iii. Upon the Financial Planning Practitioner
G. PRACTICE STANDARDS 500 SERIES: IMPLEMENTING THE FINANCIAL PLANNING
   RECOMMENDATION(S)
   1. 500-1: Agreeing on Implementation Responsibilities
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
   2. 500-2: Selecting Products and Services for Implementation
      a. Explanation of this Practice Standard
      b. Effective Date
      c. Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
      d. Anticipated Impact of these Practice Standards
          i. Upon the Public
          ii. Upon the Financial Planning Profession
          iii. Upon the Financial Planning Practitioner
H. PRACTICE STANDARDS 600 SERIES: MONITORING
   1. 600-1: Defining Monitoring Responsibilities
      a. Explanaiton of this Practice Standard
          b.   Effective Date
          c.   Relationship of this Practice Standard to CFP Board’s Code of Ethics and Professional Responsibility
          d.   Anticipated Impact of this Practice Standard
               i. Upon the Public
               ii. Upon the Financial Planning Profession
               iii. Upon the Financial Planning Practitioner

CHAPTER 9        FINANCIAL GOALS – CURRENT LIFESTYLE
  A. LIFESTYLE AND PRIORITIES

CHAPTER 10       EDUCATION FUNDING
  A. OVERVIEW
  B. PART I: COMPUTING THE REQUIRED EDUCATION FUNDING NEED
     1. Estimating Expenses
         a. Understanding College Costs
         b. Is a College Educaiton Worth the Cost?
     2. Adjusting for Inflation
     3. Determining the Required Current Lump-Sum Investment
     4. Determining the Required Periodic Investment
     5. Simplified College Cost Worksheet
  C. PART II: TOOLS AND TECHNIQUES FOR FUNDING EDUCATION EXPENSES
     1. Pay-As-You-Go
     2. Government Provided Tax Credits and Other College Financing Tax Incentives
         a. Hope Scholarship and Lifetime Learning Credits for Higher Education Expenses
     3. Grants, Scholarships, and Loans
         a. Federal Grants
         b. Non-Federal Grants and Scholarships
         c. Loans
     4. Scholarships and Loans
     5. Deductions for Educational Expenses
         a. Student Loan Interest Deduction
         b. Higher Education Expense Deduction
         c. Deduction for Employment Related Education Expenses
     6. Cancellation of Certain Student Loans
     7. Children Working
     8. Systematic Saving and Gifts
     9. The College Aid Formula
         a. Planning Tips for Reducing the EFC
         b. Independent Student Status
     10. Income-Shifting Techniques
         a. Taxation of Children
     11. Taxation of Trusts
     12. Taxation of Fellowships and Scholarships
     13. Income-Shifting and Parents’ Support Obligation
     14. Gifts to Minors
     15. Gifts of Appreciated Assets to Minors
     16. Interest-Free Loans and Below-Market Interest Loans
     17. The Family Partnership
     18. S Corporations
     19. Employing Children
     20. The Gift-Leaseback Technique
     21. Investment Vehicles
     22. Investments for Children Subject to the Kiddie Tax Rules; Investments for Tax Deferral
     23. Special Income Exclusion for Series EE and Series I Bonds
     24. Investments with Certainty in Reinvestment Rate or Return
  D. WHERE CAN I FIND OUT MORE?
CHAPTER 11    RETIREMENT ISSUES
  A.   WHAT IS IT?
  B.   KEY STATISTICS
  C.   HOW DOES THE RETIREMENT PLANNING PROCESS WORK?
  D.   SENSITIVITY OF ASSUMPTIONS
  E.   THE NEAR-TERM OR TROUBLED RETIREMENT

CHAPTER 12    SPECIAL CIRCUMSTANCES
  A.   WHAT IS IT?
  B.   DIVORCE PLANNING
  C.   NONTRADITIONAL RELATIONSHIPS
  D.   CHANGE OF EMPLOYMENT
       1. Changing Jobs
       2. Early Retirement
       3. Severance Packages

CHAPTER 13    SPECIAL NEEDS
  A. WHAT IS IT?
  B. DISABILITIES
     1. Disability Insurance
     2. Social Security Benefits
     3. Medicare/Medicaid Benefits
  C. TERMINAL ILLNESSES
  D. DEPENDENTS WITH SPECIAL NEEDS

CHAPTER 14    ESTATE PLANNING
  A.   ESTATE PLANNING DEFINED
  B.   THE IMPORTANCE OF CONTROL
  C.   PEOPLE PLANNING
  D.   IS ESTATE PLANNING ONLY FOR THE RICH?
  E.   PROBLEMS CLIENTS FACE
  F.   STEPS IN THE ESTATE PLANNING PROCESS
  G.   ESTATE PLANNING LEGAL DOCUMENTS
  H.   REVIEWING THE ESTATE PLAN
  I.   THE WILL: CORNERSTONE OF THE ESTATE PLANNING PROCESS
       1. Defined
       2. Requirements for a Valid Will
       3. Components of a Valid Will
       4. Grounds for Contesting A Will
       5. Codicils
       6. Revocation and Modification
       7. Right of Election
       8. Safeguarding the Will
  J.   INTESTACY
  K.   LETTER OF INSTRUCTIONS
  L.   PICKING THE EXECUTOR
  M.   POWER OF ATTORNEY
  N.   MEDICAL AND HEALTH-RELATED DOCUMENTS
       1. Living Wills
       2. Durable Power of Attorney for Health Care
  O.   HOW AN ESTATE IS ADMINISTERED
  P.   GIFT GIVING
       1. Reducing or Eliminating the Gift Tax
       2. Helping the Client Select the Right Property
  Q.   HOW TO COMPUTE THE FEDERAL ESTATE TAX
     1. An Overview
     2. A Detailed Examination
  R. COMPUTING THE TAX ON GENERATION-SKIPPING TRANSFERS
  S. STATE DEATH TAXES
  T. CONCLUSION

CHAPTER 15      BUDGETING AND CASH MANAGEMENT
  A.   WHAT IS IT?
  B.   HOW DOES IT WORK?
  C.   WHEN IS THE USE OF THIS TECHNIQUE INDICATED?
  D.   ADVANTAGES
  E.   DISADVANTAGES
  F.   HOW IS IT IMPLEMENTED?
  G.   WHERE CAN I FIND OUT MORE ABOUT IT?
  H.   QUESTIONS AND ANSWERS

CHAPTER 16      PERSONAL FINANCIAL STATEMENTS
  A.   WHAT IS IT?
  B.   HOW DOES IT WORK?
  C.   WHEN IS THE USE OF THIS TECHNIQUE INDICATED?
  D.   ADVANTAGES
  E.   DISADVANTAGES
  F.   HOW IS IT IMPLEMENTED?
  G.   WHERE CAN I FIND OUT MORE ABOUT IT?
  H.   QUESTIONS AND ANSWERS

CHAPTER 17      CREDIT AND DEBT MANAGEMENT
  A. INTRODUCTION
  B. WHAT IS IT?
     1. What Creditors Look For
        a. The Three C’s
     2. Debt Ratios
        a. Front-End Ratio
        b. Back-End Ratio
        c. Collateral and Secured Loans
     3. Dealing with Debt Problems
        a. Developing a Budget
        b. Contacting Your Creditors
        c. Dealing with Debt Collectors
        d. Credit Counseling
        e. Auto and Home Loans
        f. Debt Consolidation
        g. Bankruptcy
  C. CREDIT SCORING
     1. Introduction
     2. How to Read and Understand a Credit Report
        a. Principal National Credit Agencies and Costs of Reports
        b. What a Credit Report Contains
     3. The FICO Credit Score
        a. Mortgages
        b. Credit Cards
        c. Auto Lenders
     4. Improving One’s Credit Report
  D. IDENTITY THEFT
     1. What Is It?
     2. How is Personal Information Stolen and How to Prevent it?
        a. Traditional Methods
        b. High-Tech Methods
     3. Effects of Identity Theft
     4. What to do About it?
  E. AVOIDING CREDIT SCAMS
     1. Ads Promising Debt Relief May Be Offering Bankruptcy
     2. Advance-Fee Loan Scams
     3. Recognizing an Advance-Fee Loan Scam
     4. Credit Repair Scams
     5. The Credit Repair Organizations Act
     6. If You Are A Victim – Where to Complain
  F. FINANCIAL PRIVACY
     1. Financial Institutions
     2. Consumers and Customers
     3. The Privacy Notice
     4. Opt-Out Rights
     5. Receiving Nonpublic Personal Information
     6. Other Provisions
  G. OTHER CONSUMER PROTECTION LAWS
     1. Consumer Pamphlets Available

CHAPTER 18     FINANCING ASSET ACQUISITIONS
  A. INTRODUCTION
  B. FINANCIAL LEVERAGE
  C. MARGIN TRADING
  D. SECURED VS. UNSECURED DEBT
  E. LONG-TERM VS. SHORT-TERM DEBT
  F. MORTGAGE LOAN PROGRAMS
     1. Fixed Rate Mortgages
     2. Adjustable Rate Mortgages
        a. Advantages of ARM Loans
        b. ARM Loan Details
        c. Disadvantages of ARMs
     3. Home Equity Line of Credit
        a. Financial Planning Tool
        b. Investment Tool
     4. Balloon Loans
        a. Advantages and Disadvantages of Balloons
        b. Balloon Mechanics
     5. Buy-Down Programs
        a. Permanent Buy-Downs
        b. Temporary Buy-Downs
     6. Construction Loans
     7. Jumbo Loans
        a. Conforming Loan Limits
        b. Alternative Option: Jumbo Loans without Jumbo Pricing
     8. No Income Verification (NIV) Loans
        a. Applicable Situations
        b. Cost of NIV Programs
  G. OTHER MORTGAGE FINANCING ALTERNATIVES
  H. REFINANCE LOANS
     1. Cash-Out Refinance
     2. Rate and Term (No Cash-Out) Refinance
     3. Refinance Requirements
     4. Refinancing When There Are Two (or More) Current Mortgages
  I. MORTGAGE (LOAN) MATH
     1. Amortization
     2. Computing the Payment Amount
  J. MORTGAGE AND LOAN FINANCIAL PLANNING APPLICATIONS
     1. Basics of Loan Rates
     2. Effect of Points and Closing Costs on the APR
     3. Effect of Early Payoff on the APR
     4. Refinancing
        a. New Loan
        b. Effect of Biweekly Payments
  K. DETERMINING HOW MUCH HOME ONE CAN AFFORD
     1. Front-End Ratio
     2. Determining the Maximum Mortgage Amount
     3. Back-End Ratio
  L. REVERSE MORTGAGES
  M. LEASING
     1. Types of Leases
     2. Lease Accounting
     3. When Is a Lease a Capital Lease?
     4. Taxes
     5. Reasons for Leasing

CHAPTER 19     ECONOMIC CONCEPTS
  A. INTRODUCTION
  B. BASIC CONCEPTS
     1. Scarcity
     2. Opportunity Cost
     3. Time Value
     4. Supply, Demand, Marginal Pricing, and Equilibrium
  C. MICROECONOMICS
     1. Theory of the Firm
     2. Marginal Revenue (MR) and Marginal Cost (MC)
     3. Consumer Behavior and Marginal Utility
     4. Opportunity Costs
     5. Price Elasticity of Demand
     6. Competitive Market Structures
        a. Pure Competition
        b. Pure Monopoly
        c. Monopsony
        d. Oligopoly
        e. Monopolistic Competition
  D. MACROECONOMICS
     1. Fiscal Versus Monetary Policy
        a. The Changing Debate
        b. Rational Expectations Theory
     2. Gross National Product, Inflation, and the Keynesian View
        a. Terms
        b. Fiscal Multiplier
        c. IS/LM Curve of the Investment/Spending and Money Markets
     3. Economic Growth and the Monetarist View
        a. Monetary Policy Tools: The Federal Reserve
     4. Supply-Side Economics
        a. Supply-Side Policies
  E. THE BUSINESS CYCLE
     1. Composite Economic Indicators
     2. Other Economic Indicators
        a. Consumer Demand and the Business Cycle
        b. Output and Efficiency
        c. Inventories
  F. INFLATION, DEFLATION, AND DISINFLATION
  G. YIELD CURVES

CHAPTER 20       TIME VALUE OF MONEY AND QUANTITATIVE ANALYSIS
  A. WHAT IS IT?
  B. HOW DOES IT WORK?
  C. WHEN IS THE USE OF THIS TECHNIQUE INDICATED?
  D. ADVANTAGES
  E. DISADVANTAGES
  F. PRESENT VALUE AND FUTURE VALUE
     1. I. Computing the Future Value of a Lump Sum
     2. II. Computing the Present Value of a Future Lump Sum
     3. III. Calculating the Future Value of a Regular Series of Payments
     4. IV. Computing the Present Value of a Regular Series of Receipts
     5. V. Practical Examples
  G. TAXES, INFLATION, AND GROWTH
     1. I. Taxes
     2. II. Inflation/Growth
        a. Inflation/Growth Adjusted ROR and Annuities
  H. NET PRESENT VALUE AND INTERNAL RATE OF RETURN
     1. I. Net Present Value
     2. How to Compute Net Present Value
        a. Lump Sum Investment, Single Future Receipt
        b. Lump Sum Investment, Multiple Future Receipts
        c. Multiple Investments, Multiple Future Receipts
     3. II. Internal Rate of Return
     4. How to Compute Internal Rate of Return
     5. Shortcomings of the IRR Method
     6. III. Modified Internal Rate of Return Methods
     7. IV. Pay Back Period
     8. V. Cash on Cash
  I. RISK, PROBABILITIES, AND MODELING
     1. MONTE-CARLO SIMULATION
  J. WHERE CAN I FIND OUT MORE?
  K. QUESTIONS AND ANSWERS

CHAPTER 21       FINANCIAL INSTITUTIONS
  A. WHAT IS IT?
  B. BANKS AND THE ECONOMY
     1. What Is a Bank?
     2. How Banks Create Money
     3. How Banks Make Money
     4. A Short History
     5. Banks and Public Policy
  C. DIFFERENCES AMONG BANKS, THRIFTS, AND CREDIT UNIONS
     1. Commercial Banks
     2. Savings and Loan Associations and Savings Banks
     3. Credit Unions
  D. BANK REGULATORS
     1. State and Federal Charters
     2. The Federal Reserve System (Central Bank)
     3. The Deposit Insurer
     4. Why So Many Different Regulators?
  E. BANK GEOGRAPHIC STRUCTURE
       1. Intrastate Branching
       2. Interstate Banking
       3. Interstate Branching
       4. Foreign Banks
  F.   OTHER FINANCIAL INTERMEDIARIES
       1. Trust Companies
       2. Finance Companies
       3. Investment Banks and Brokerage Firms
       4. Investment Companies and Mutual Funds
          a. Open-End Funds and Closed-End Funds
          b. Why Investment Companies Arose
          c. Money-Market Mutual Funds (MMMFs)
       5. Other Pooled Investment Intermediaries
          a. Unit Trusts
          b. REITs
          c. Mortgage-Backed Securities
          d. REMICs
          e. Exchange-Traded Funds
       6. Insurance Companies
          a. Life Insurance Companies
          b. Property, Casualty, Liability, Health, Disability and Other Insurance Companies

CHAPTER 22       BUSINESS ENTITIES
  A.   WHAT IS IT?
  B.   SELECTING THE ENTITY
  C.   SOLE PROPRIETORSHIPS
  D.   PARTNERSHIPS
  E.   LIMITED LIABILITY COMPANIES
  F.   C CORPORATIONS
  G.   S CORPORATIONS
  H.   PROFESSIONAL CORPORATIONS
  I.   ASSOCIATIONS
  J.   TRUSTS

CHAPTER 23       OWNERSHIP OF PROPERTY
  A. OUTRIGHT OWNERSHIP
     1. Life Estate/Remainder
  B. TENANCY IN COMMON
  C. JOINT TENANCY WITH RIGHT OF SURVIVORSHIP
  D. TENANCY BY THE ENTIRETY
  E. COMMUNITY PROPERTY
  F. TRUSTS
  G. UGMA/UTMA

CHAPTER 24       BUSINESS LAW
  A. CONTRACTS
     1. Basic Elements of a Contract
     2. Types of Contracts
     3. Conditions, Performance and Discharge
  B. TORTS
  C. AGENCY
     1. Formation of Agency Relationship
     2. Agent’s Duties to the Principal
     3. Principal’s Duties to the Agent
     4. Termination of Agency Relationship
  D. NEGOTIABLE INSTRUMENTS
     1. Types of Commercial Paper
     2. Negotiation
  E. PROFESSIONAL LIABILITY
  F. FIDUCIARY LIABILITY
  G. ARBITRATION AND MEDIATION IN ALTERNATIVE DISPUTE RESOLUTION

CHAPTER 25   MONETARY SETTLEMENT PLANNING
  A. STRUCTURED SETTLEMENTS
  B. LOTTERY WINNINGS
  C. LIFE INSURANCE PROCEEDS AND SETTLEMENTS
     1. Tax Treatment of Life Settlements
  D. LUMP SUM RETIREMENT DISTRIBUTIONS

CHAPTER 26   RISK MANAGEMENT AND INSURANCE
  A. THE PURPOSE OF RISK MANAGEMENT
  B. STEPS IN THE RISK MANAGEMENT PROCESS
     1. Step 1 - Identify, Analyze and Measure
     2. Step 2 - Select the Risk Management Technique
     3. Step 3 – Implement the Techniques Chosen
     4. Step 4 – Monitor the Results
  C. GUIDELINES FOR SELECTING AN INSURANCE AGENT
  D. GUIDELINES FOR SELECTING AN INSURANCE COMPANY
  E. RISK AND INSURANCE – TERMS AND CONCEPTS
  F. LIFE INSURANCE – THE BASICS
     1. Purpose of Life Insurance
     2. Amount of Life Insurance
     3. Types of Life Insurance
     4. Ownership of Life Insurance
     5. Beneficiary of Life Insurance
     6. Basic Tax Implications of Life Insurance
         a. Income Taxes
         b. Federal Estate and Gift Taxes
  G. HEALTH AND MEDICAL INSURANCE
  H. HOMEOWNER INSURANCE
  I. AUTOMOBILE INSURANCE
  J. UMBRELLA LIABILITY INSURANCE
  K. TERRORISM AND INSURANCE

CHAPTER 27   INCOME TAX PLANNING
  A. WHY TAXES ARE IMPORTANT TO THE INVESTOR
  B. ACQUISITION AND DISPOSITION OF AN INVESTMENT
     1. Basis
        a . “At Risk” Rules
        b. Property Acquired from a Decedent
        c. Property Acquired by Gift
     2. General Business Tax Credits
     3. Reporting a Gain or Loss Upon Disposition
        a. Installment Sales
     4. Character of Gain or Loss
        a. Holding Period
  C. INCOME AND EXPENSES WHILE THE INVESTMENT IS HELD
     1. Income Defined
     2. Character of Income or Loss
        a. Passive Activity Defined
     3. Deductible Expenses
        a. Deductibility of Interest
        b. Rules Limiting the Deductibility of Interest
        c. Deductibility of Investment Expenses Other Than Interest
     4. Timing of Recognition of Income and Expenses
        a. Constructive Receipt
        b. Economic Benefit
        c. Restricted Property
        d. Prepaid Deductions
  D. THE FEDERAL TAX RATE STRUCTURE
     1. Income Tax Rates
     2. The Alternative Minimum Tax (“AMT”)
        a. Alternative Minimum Tax Credit
        b. Tax Planning for the AMT
     3. The Kiddie Tax - Unearned Income of Certain Minor Children
        a. Computation of the Tax

CHAPTER 28      INVESTMENT PLANNING
  A. WHAT IS IT?
  B. THE INVESTMENT PLANNING PROCESS
     1. Life Cycle Periods
     2. Investment Allocation Guidelines
  C. ACTIVE VERSUS PASSIVE MANAGEMENT
     1. The Simple Logic of Active vs. Passive Investing
     2. Investing in the Winners Among Actively-Managed Funds
     3. Active Management in Inefficient Markets
     4. Tactical Asset Allocation and Market Timing

CHAPTER 29      RETIREMENT PLANNING
  A. WHAT IS IT?
  B. THE CURRENT ENVIRONMENT
  C. DETERMINING FINANCIAL NEED
     1. Tripod Of Economic Security
         a. Employer-Sponsored Plans
         b. Crisis in Social Security
         c. Combination Concerns
     2. Inflation
         a. Estimating the Inflation Rate
         b. Personalizing the Inflation-Rate Assumption
  D. ESTIMATING THE LENGTH OF THE RETIREMENT INCOME NEED
     1. Expected Starting Date for Retirement
     2 Longevity
     3. Individual Life Expectancies
     4. Special Consideration for Married Couples
     5. Second-to-Die Probabilities
     6. First-to-Die Probabilities
     7. Planning For Two Separate Income Streams
     8. Caution Is Advised
     9. The Length of Retirement
     10. Estimating Retirement Income Needs
  E. OBTAINING INFORMATION ON QUALIFIED PLAN BENEFITS
     1. Annual Benefit Statements
         a. Defined Contribution Type Plans
         b. Defined Benefit Plans
         c. Vesting
     2. Summary Plan Descriptions
     3. Tax Forms
     4. Plan Administrator
  F. ROLE OF INSURANCE
     1. In General
        a. Assessing Risks
     2. Life Insurance
     3. Disability Income
     4. Medical Insurance
  G. RETIREMENT PLAN DISTRIBUTION PLANNING
     1. What Options Does the Plan Provide?
        a. Defined Benefit Plan Distribution Provisions
        b. Defined Contribution Plan Distribution Provisions
     2. Tax Implications
        a. Nontaxable and Taxable Amounts
        b. Taxation of Annuity Payments
        c. Lump Sum Distributions
        d. Taxation of Death Benefits
        e. Federal Estate Tax on Distributions
     3. Lump Sum vs. Deferred Payments: The Tradeoffs
     4. Penalty Taxes
        a. Penalty for Distributions Too Soon
        b. Penalty for Distributions Too Late or Not Enough

CHAPTER 30      CHARITABLE PLANNING
  A.   WHAT IS IT?
  B.   OUTRIGHT GIFTS
  C.   PERCENTAGE LIMITATIONS
  D.   CHARITABLE BEQUESTS
  E.   OTHER CHARITABLE GIVING STRATEGIES
       1. Charitable Gift Annuity
       2. Charitable Remainder Trust
       3. Charitable Lead Trust
       4. Pooled Income Fund
       5. Private Foundations
       6. Donor Advised Funds
  F.   TOWARDS A ZERO TAXABLE ESTATE

CASE STUDIES

APPENDIX A      PRESENT VALUE OF LUMP SUM

APPENDIX B      PRESENT VALUE OF ANNUITY DUE

APPENDIX C      PRESENT VALUE OF ORDINARY ANNUITY

APPENDIX D      FUTURE VALUE OF LUMP SUM

APPENDIX E      FUTURE VALUE OF ANNUITY DUE

APPENDIX F      FUTURE VALUE OF ORDINARY ANNUITY

APPENDIX G      TAX EXEMPT EQUIVALENTS

APPENDIX H      USEFUL FINANCIAL WEB SITES

				
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