Description
The Accredited Wealth Management AdvisorSM (AWMA®) Professional Education Program teaches advisers about the intricacies and particulars of working with high-income clients. Students of this program are presumed to have basic knowledge of the financial planning topics of insurance, investments, income tax, retirement planning, and estate planning. Students should also know how to use a financial calculator.
Advisers do not normally begin their careers advising high net worth clients; this is a career path along which some advisers slowly proceed. This course covers essential information specifically for an adviser’s high net worth clients. The high net worth client, as defined in this course, covers a wide range of client wealth, including wealthy clients who are business owners/entrepreneurs, corporate executives, professional athletes/celebrities and those with “sudden money” and/or inherited wealth.
Throughout this course we discuss high net worth individuals from a broad perspective and cover topics such as advisor-client trust, investments, taxation, business planning, and estate planning. Many of these issues are equally important to professional athletes and entertainers since they too earn high incomes and can accumulate massive amounts of wealth in a relatively short time. Yet unlike other high net worth clients, there are a number of unique qualitative and financial differences. Therefore, it is important to gain a deeper understanding of these individuals.
There are many special issues affecting athletes and entertainers. These clients are under enormous amounts of pressure to maximize earnings, maintain a lifestyle, build a legacy, and transition to a second career after retirement. They also are exposed to psychological, behavioral, and physical health issues that can have long-term ramifications.
For these clients, qualitative and quantitative planning are of equal importance. Getting to know their money personalities and their underlying financial “rascals” will help you better plan for their wants and needs. And like any other client, athletes and entertainers are concerned with employee benefits, retirement plans, and tax and estate planning, but with a few unique nuances.
The education for this course is split into eight modules and provides three credits toward a Master of Science degree in Personal Financial Planning in the College’s graduate studies program.
Modules include:
Module 1: Getting to Know Your High Net Worth Client
Module 2: Investment Risk, Return, and Performance
Module 3: Advanced Investment Products and Strategies
Module 4: Considerations for Business Owners
Module 5: Income Tax Planning for High Net Worth Clients
Module 6: Executive Benefits for High Net Worth Clients
Module 7: Estate Planning for High Net Worth Clients
Module 8: Fiduciary and Regulatory Issues for Financial Services Professionals
Module 9: Special Issues for Athletes and Entertainers
Learning Objectives
Program Objectives: Upon completion of this course, you should be able to:
1–1 Analyze differentiating aspects of high net worth clients and the financial planning process tailored to their needs.
1–2 Evaluate the necessary skills in developing trusting relationships with high net worth clients.
1–3 Analyze advisory team members, and evaluate the necessity and use of these other professionals and/or services for a high net worth client.
1–4 Demonstrate the importance and mechanisms to keep high net worth clients on track to meet their stated goals.
2–1 Explain “risk” in terms of investing.
2–2 Calculate the relative risk of stocks or portfolios using betas.
2–3 Calculate the return of a stock or portfolio using the capital asset pricing model.
2–4 Explain how to achieve risk reduction through diversification.
2–5 Explain the importance of client time horizons to portfolio risk.
2–6 Compare portfolio performance using various performance measurement tools.
3–1 Explain the importance of strategy in achieving investment goals.
3–2 Explain terminology, characteristics, risks, concepts, and strategies for the use and valuation of various types of alternative investments.
3–3 Explain the impact of behavioral finance and other factors that have been shown to influence investor results.
4–1 Explain important tax and non-tax characteristics, advantages, and disadvantages of the various forms of business entities.
4–2 Explain how various retirement plans may be utilized to reduce taxable income while providing an important benefit to owners and employees.
4–3 Analyze the risk management process and the property and liability risks for high net worth individuals and make appropriate recommendations.
4–4 Analyze the personal, security, and professional risks for high net worth individuals and make appropriate recommendations.
4–5 Analyze the need for life and disability insurance for the high net worth client and make appropriate recommendations.
4–6 Explain the characteristics, advantages, and disadvantages to the various exit planning methods available to business owners.
5–1 Analyze a situation to determine the necessity of estimated tax payments.
5–2 Analyze a situation to calculate the amount of investment interest expense that is deductible.
5–3 Analyze a situation to calculate the self-employment tax.
5–4 Recommend strategies to minimize the individual alternative minimum tax.
5–5 Recommend strategies to minimize the income tax liability related to investments.
6–1 Differentiate characteristics of qualified versus nonqualified plans and explain the application of IRC Section 409A.
6–2 Compare and contrast the alternative funding methods for nonqualified deferred compensation plans.
6–3 Distinguish characteristics of nonqualified deferred compensation plans commonly used in retirement planning.
6–4 Analyze a situation to identify the tax implications of a nonqualified deferred compensation plan.
6–5 Analyze the tax treatment associated with equity-based plans commonly used as long-term compensation incentives for executives.
6–6 Evaluate a situation to identify the tax implications, characteristics, and recommended use of a given type of life insurance plan.
7–1 Explain the financial and nonfinancial objectives of estate planning and the how the members of the estate planning team must assemble and review the client’s essential data and estate planning actions.
7–2 Analyze the characteristics and planning implications of the federal transfer taxes, including the estate tax, gift tax, and generation-skipping transfer tax.
7–3 Distinguish the characteristics and methods of inter vivos transfers and testamentary transfers.
7–4 Evaluate tax reduction techniques applicable to the estate tax, gift tax, and income tax.
7–5 Compare and contrast asset protection strategies.
7–6 Analyze business succession planning techniques.
8–1 Analyze the importance of trust in the financial services industry.
8–2 Analyze the overall effectiveness, strengths, and weaknesses of federal regulations.
8–3 Differentiate among the current standards for advisers providing investment and retirement planning advice.
8–4 Analyze recent proposals from the Department of Labor and the SEC and assess the potential impact any proposed changes would have for brokers and advisers.
8–5 Analyze investment professional and client situations to determine which ethical duty applies.
9–1 Understand the special issues, key people, and challenges of working with athletes and entertainers.
9–2 Analyze the qualitative planning strategies available to athletes and entertainers.
9–3 Evaluate labor unions and their respective employee and retirement benefits available to athletes and entertainers.
9–4 Analyze the special cash flow and taxation circumstances that relate to athletes and entertainers.
9–5 Analyze the business planning strategies available to athletes and entertainers.
9–6 Evaluate the estate planning strategies available to athletes and entertainers.