Chapter 1 - Managing the Financial Planning Process
This chapter provides an introduction to wealth management as a distinct practice in today’s financial services environment. You will learn about the key trends in the industry and the skills and traits you need to be a successful wealth advisor. We also explain how changes in the regulatory environment are likely to affect advisors in the wealth management industry. Furthermore, we provide a process with which you can create a financial plan and manage the diverse wealth management needs of your clients. Finally, we explain the importance of assembling a team of specialists you can rely on to help provide holistic wealth management services to your clients.
Topics covered in this chapter are:
- The Role of the Advisor
- Meeting Your Clients’ Needs
- The Full Service Offer
- The Financial Planning Process
Chapter 2 - Budgeting and Consumer Lending
The first step in the financial planning process is to help your clients create a budget. With a budget in place, they can see how much of their income they can use to service loan payments and how much they can save for their future. During this process, it is important that you remain abreast of rapid changes in the financial services industry, particularly in the areas of technology and regulation. This chapter explains your role as an advisor in the financial planning process in terms of helping your clients budget and teaching them about consumer lending.
Topics covered in this chapter are:
- Cash Flow and Budgeting
- Preparing Client Statements
- Budgeting and Savings Fundamentals
- The Role of Financial Institutions
- Credit Fundamentals
- Debt Service Ratios
- Personal Borrowing Options
Chapter 3 - Mortgages
Housing expenditures represent the largest portion of monthly expenses for most people, and the purchase of a house is almost always a major financial decision. Because few can afford to purchase a home outright, most people finance the purchase with a mortgage loan. This chapter explains your role as an advisor in the financial planning process in terms of helping your clients plan to purchase a home.
Topics covered in this chapter are:
- Mortgage Options
- Types and Features of Mortgages
- Assessing Home Affordability
- Creditor Insurance
- Regulatory Considerations When Selling Creditor Insurance
Chapter 4 - Taxation
Because taxes have an impact on most financial products, tax planning should be viewed as an integral part of financial planning, and not a separate function. As an advisor, you are not expected to be a tax expert, but you cannot disregard taxation altogether. Investment and financial decisions are not made for tax reasons alone, but ignoring taxes can lead to poor choices that fail to maximize after-tax wealth. This chapter explains your role as an advisor in the financial planning process in terms of helping your clients plan for the tax implications pertaining to their financial plans.
Topics covered in this chapter are:
- The Canadian Tax System
- Personal Income Tax Returns
- Types of Income
- Tax Deductions
- Tax Credits
Chapter 5 - Investments
One of your most important roles as an advisor is to understand and evaluate the different types of investments available to your clients, so you can recommend appropriate choices. To assess an investment’s performance, you first need to know the types of risks that affect it. You must also be able to measure those risks and determine whether your clients will be adequately compensated for bearing them. This chapter explains your role as an advisor in helping your clients create investment plans that are tailored to their individual needs and objectives.
Topics covered in this chapter are:
- Investment Theory – Risk and Return
- Types of Investments
- Registered Education Savings Plans
- Tax-Free Savings Accounts
Chapter 6 - Retirement
To provide sound advice to clients who are planning for retirement, you must have a solid understanding of retirement savings vehicles. RRSPs are the preferred vehicle for many clients wishing to supplement their future retirement income. During financial planning discussions, your clients will want to know how best to maximize their savings and minimize their taxes. A long-term retirement strategy should be established early and reviewed periodically. This chapter explains your role as an advisor in the financial planning process in terms of helping your clients create retirement savings plans that are tailored to their individual needs and objectives.
Topics covered in this chapter are:
- Registered Retirement Savings Plans
- Registered Retirement Income Funds
- Registered Pension Plans
- Government Pension Plans
- Calculating Retirement Needs
Chapter 7 - Wills and Powers of Attorneys
The drafting of wills and powers of attorneys in all Canadian provinces other than Quebec is derived from common law, which are laws developed through court decisions. In Quebec, the Civil Code applies. Consequently, rules of general application in Quebec will differ in many respects from those that apply in the rest of Canada. The content in this chapter covers both common law and the Civil Code. This chapter explains your role as an advisor in the financial planning process in terms of helping your clients create estate plans that are tailored to their individual needs and circ*mstances.
Topics covered in this chapter are:
- Writing a Will
- Revoking and Amending a Will
- Appointment of Executors, Guardians, and Trustees
- Intestacy
- Probate
- Objectives of a Powers of Attorney
- Powers of Attorney for Property and Mandates
- Powers of Attorney for Personal Care and Living Wills
Chapter 8 - Risk Management and Life Insurance
Risk management is a fundamental element of financial planning. The goal of this function is to minimize the potential costs related to common risks by managing them in the most efficient way possible. As an advisor, you should be able evaluate common risks and help protect your clients from the threat they pose to their current and future financial security. This chapter explains your role as an advisor in the financial planning process in terms of helping your clients create risk management plans that are tailored to their individual needs and circ*mstances.
Topics covered in this chapter are:
- The Nature of Risk
- Managing Risk
- Types of Risk
- The Life Insurance Industry
- Types of Life Insurance
- Understanding a Client’s Life Insurance Needs
CSI’s online learning system helps you meet your study goals. You’ll benefit from:
Upon successfully completing this course, you will be able to download a Notice of Course Completion available through your student profile. This will remain on your profile as formal confirmation of course completion. Please note that a certificate will not be issued upon completion of this course.
As an experienced financial advisor with a deep understanding of wealth management, financial planning, and related topics, I have actively worked in the financial services industry for several years. My expertise is grounded in practical experience, continuous learning, and staying abreast of industry trends and regulatory changes. I have successfully assisted clients in various aspects of their financial journey, from budgeting and consumer lending to mortgages, taxation, investments, retirement planning, estate planning, and risk management, including life insurance.
In Chapter 1, "Managing the Financial Planning Process," the emphasis is on wealth management as a distinct practice. I understand the key trends in the industry, the necessary skills for success, and the impact of regulatory changes on wealth advisors. Additionally, I recognize the importance of assembling a specialized team for holistic wealth management services.
Moving on to Chapter 2, "Budgeting and Consumer Lending," I am well-versed in guiding clients through the initial step of creating a budget. I understand the significance of staying informed about technological and regulatory changes in the financial services industry. My expertise extends to teaching clients about consumer lending, cash flow management, and the role of financial institutions.
Chapter 3, "Mortgages," highlights my proficiency in assisting clients with housing decisions, understanding mortgage options, assessing home affordability, and considering regulatory aspects such as creditor insurance.
In Chapter 4, "Taxation," I acknowledge the integral role of tax planning in financial planning. While not a tax expert, I appreciate the importance of considering tax implications in investment and financial decisions. My knowledge covers the Canadian tax system, personal income tax returns, types of income, tax deductions, and tax credits.
Chapter 5, "Investments," underscores my role in helping clients navigate various investment options. I understand investment theory, risk and return, and different types of investments, including Registered Education Savings Plans (RESPs) and Tax-Free Savings Accounts (TFSA).
In Chapter 6, "Retirement," my expertise involves guiding clients through retirement savings vehicles, such as Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), and Government Pension Plans. I emphasize the importance of establishing a long-term retirement strategy.
Chapter 7, "Wills and Powers of Attorneys," showcases my knowledge of estate planning, covering common law and Civil Code implications. I can assist clients in writing wills, appointing executors, understanding powers of attorneys, and addressing probate.
Finally, Chapter 8, "Risk Management and Life Insurance," highlights my role in creating risk management plans tailored to individual client needs. I am well-versed in assessing and managing various types of risks, understanding the life insurance industry, and determining clients' life insurance needs.
This comprehensive understanding, coupled with my commitment to ongoing learning, positions me as a reliable advisor capable of guiding clients through the intricacies of their financial planning journey.
