section 1 - The American College Online Learning Center

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(2) Altruistically, who do you believe needs your help the most?b. When we create the ideal client profile, we need to consider the business modelthat we have already defined.c. How do we go about creating an ideal client profile?(1) Identify the socio-economic characteristics(2) Identify the personality characteristics(3) Identify whether the firm has an ideal client profile(a) Example: Age 50-65 with $2 million net worth(4) Can you get these individuals to work with you as a professional?3. The third step is to identify the actual target market.a. Where can you find those people that match your profile?(1) Start local:(a) Family unit(b) Friends(c) Coworkers(d) Existing clients(2) Third parties(a) Friend of a friendb. If you have a client that fits the client profile, identify where you can find otherslike that client.4. The fourth step is to position your practicea. What can you do that makes yourself stand out as distinguished?b. What can you do that will make yourself attractive to the target market?(1) Put thought into the design and layout of your office.(2) What does the client see when they walk in?(3) Is this something that the target market will enjoy?(4) Is it professional?c. How do you brand yourself?(1) How do you put yourself out there?(a) Advertisement in a phone book(b) Advertisement in a newspaper(c) Going door to doord. How do you position the practice?(1) 20–30-year-olds may be intrigued by technology(2) Older clients may look for professionalism.5. The fifth step is to build prestige and create awareness.a. How to build prestige and create awareness(1) Advanced level certifications(a) In retirement planning1.20
(b) In financial planning(c) In investments(2) Ethical business practices(a) Be diligent(b) Be ethical(c) Have integrity(3) Build technical competence(4) Planning Point: Writing articles in professional journals, or writing blogs ornewsletters for clients, may help a planner to build prestige.(5) Planning Point: Planners should join groups that allow them to network inthe community.LO 1-4-2: Identify technical tools used in retirement planning1. Tools that advisors can use when working with retirees (Video: Retirement PlanningTechnology: Woerheide, Lemoine)a. Portable devices that we can take with us to the client (e.g., iPhone, iPad,Blackberry) that can be used for arithmetic, time-value-of-money functions,calculatorb. Prepackaged programs(1) Financial planning software(2) Contact management systemsc. Customized programs for answering particular questions2. Financial planning softwarea. Goal-based software(1) Addresses a specific segmented goal (retirement, estate planning,risk-management need)(2) Put in assumptions and inputs and it will generate calculations towardsmeeting a goalb. Cash flow–based software(1) Looks at all inflows and outflows providing a fluid, comprehensive plan(2) It is time sensitive and harder to explain to the client but provides a slightlymore accurate picture of the ability to meet goals.(3) Example: Goal-based software determines that you need to save $500 amonth for retirement and cash flow software would help you understandwhether you could meet that goal.3. How advisors should use software with retireesa. Regardless of the software program, it is critical that the client understands theoutput—this can be a weakness of some software programs.b. Uses with preretirees(1) Choosing the appropriate accumulation vehicle(2) Choosing appropriate asset allocationc. Uses with retirees1.21
Page 1: Huebner School SeriesHS 353 STUDY O
Page 6: THEAMERICANCOLLEGE.EDUThrough The A
Page 10 and 11: c. But it is more comprehensive bec
Page 12 and 13: (3) Work part-time during retiremen
Page 14 and 15: SECTION 2: UNDERSTANDING RETIREMENT
Page 16: d. Solutions(1) The model considers
Page 19 and 20: . Other sources of retirement incom
Page 21 and 22: c. Another option for solving cash
Page 23 and 24: (b) Net worth statements that ident
Page 25: d. Be ready to reengage with the cl
Page 29 and 30: j. Planning Point: Planners can use
Page 31 and 32: e. We also need them to have a bett
Page 33 and 34: Assignment 2IDENTIFY RETIREMENT INC
Page 35 and 36: (2) Income4. Determining risk toler
Page 37 and 38: collaborative experience which focu
Page 39 and 40: 6. Asset allocation and risk tolera
Page 41 and 42: c. How long will the income last?d.
Page 43 and 44: . Durationc. Reliabilityd. Other6.
Page 45 and 46: c. Supplemental Security Income (SS
Page 47 and 48: . An unused emergency fund can supp
Page 49 and 50: 5. Inflation(2) The expense method
Page 51 and 52: Assignment 3CHOOSE APPROPRIATE STRA
Page 53 and 54: . Save as a percentage of income an
Page 55 and 56: (1) Note that 38% of second income
Page 57 and 58: (4) The AARP website has a national
Page 59 and 60: 4. Contributions to IRAs and Roth I
Page 61 and 62: carve out the nondeductible contrib
Page 63 and 64: (2) Plus salary deferrals (for an i
Page 65 and 66: a. Example:(1) Save $10,000 in 25%
Page 67 and 68: (a) This requires knowing four fact
Page 69 and 70: . Solution(1) Li and Lin Lin are bo
Page 71 and 72: (1) The increase in dollar amounts
Page 73 and 74: 9. In some circumstances, an indivi
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5. Planning considerations(b) Keep
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(2) Some funds that are promoted as
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(1) Berstresser, Chalmers, and Tufa
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RESOURCES FOR COMPETENCY 3: CHOOSE
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(2) From the previous employer(s) p
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8. IRA funded plans (IRAs, SEPs, SI
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. Does the distribution election fi
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6. Net unrealized appreciation rule
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a. Tax-exempt plans include Roth IR
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8. Calculating required distributio
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(2) Exception: If there are separat
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5. Impactc. Tax rates are low in ea
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(7) Based on ordering rules, identi
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7. A married couple who file jointl
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(1) Needed to provide the appropria
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13. Transfers at deatha. Wills(2) A
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(1) The Retirement Equity Act manda
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(2) Beneficiary designation of bene
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13. Overview14. Types(2) The donor
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(1) Charity needs only to payout in
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c. Access should be granted to an a
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nightmare of living probate might h
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(6) Powers to represent their princ
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c. If the policy is term coverage w
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e. Factoring personal and family he
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problem. On the other hand, we can
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d. Adding a cost of living adjustme
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g. Planning Point: Sometimes a high
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(2) Clients may not be able to “a
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c. Ensure that the client is receiv
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a. Example: Because of physical and
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options about where to get his/her
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(2) Facilities, monthly fees, and s
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8. Other strategies that help to co
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standard deviations of the returns
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a collapse in the real estate marke
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a. In a later competency we will di
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years of service with the employer)
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a. Planning Point: Planners should
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(2) If you have locked in food, ren
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(4) Loss-of-spouse risk—Deferred
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(1) Excess withdrawal risk—The us
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(5) Frailty risk—Managing assets
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7. Practice good career management:
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Assignment 6CHOOSE APPROPRIATE STRA
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c. Example: Chuck and Sarah divide
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e. The bucket approach can be thoug
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3. Understanding systematic withdra
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(1) The time horizon used in the ca
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12. Four percent is not the number.
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markets have declined by a specifie
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(2) Annuities and long-term care an
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anticipates ramping down her activi
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c. Each of the three portfolios wil
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SECTION 4: THE ESSENTIAL VERSUS DIS
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d. Clients give up investment contr
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geared toward long-term growth. Thi
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. Trade-offs involve:(1) Irrevocabl
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(1) Rate at which banks lend to the
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. Dollar-denominated liabilities of
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(a) Dividend taxed in year paid out
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4. Taxationtheir return generating
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. Close ended(1) IPO style launch(2
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(3) Tax control17. Conversations in
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(3) Mutual funds provide lower cost
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way to obtain increasing payments t
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protection from the downside risk w
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6. Today’s annuitization rates ar
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h. Planning Point: Markets are very
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a. The client may not be clear abou
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a. Problems with implementation are
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c. Product solutions work together
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(1) A problem is that if the client
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(b) A traditional fund company(c) A
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d. Evelyn is in great health and he
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RESOURCES FOR COMPETENCY 7: INTEGRA
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