RFP Program Syllabus

Module 1 Financial Planning

Financial Planning is 90% process and 10% content. The most
important interactions with clients occur while learning about their
goals and values, not while discussing their insurance coverage or
retirement plans. This module will teach the student to identify the six
steps in the financial planning process, the use of systematic
procedures to acquire and process client information, distinguishing
between qualitative and quantitative data, and discussing the
importance of assumptions in financial planning.
Topics included in this module are:
Personal Financial Planning Process
Behavioral Finance
Financial Counseling
Cash Flow Planning Reasons for Saving
Formal and Informal Budgeting
Meeting Clients needs
Reconstructing Clients Personal Financial Statement
Analyzing the Clients Situation
Preparing the Financial Plan
Module 2 Household Planning
This module will treat the household as the proper organizational
structure for an individuals financial activities. The student will look at
the economic theories that have led to the household financial
approach and learn about the cost of time and how household outlays
can be separated into two parts: maintenance and leisure. The
discussion in this session will focus on the household as an enterprise
with similarities to a business, using household finance as an approach
to link to personal financial planning.
The Household Structure
The Theory of Consumer Choice
The Life Cycle of Theory of Savings
The Theory of the Firm
The Household Enterprise
Household Finance
The Household as a Business
Total Portfolio Management

Module 3 Investment Planning

The central purpose of investment planning varies throughout a
clients life. At one point, the goal may be to accumulate wealth, at
another to conserve wealth, and at another to produce income. A
financial planners role is to develop, implement and monitor a longterm investment strategy to help clients achieve their objectives. This
module will describe how a clients unique situation may influence
investment strategy, identify five common investment objectives and
explain step-by-step process for developing an investment strategy.
Topics included in this module are:
The Planning System for Asset Allocation
Goal Setting and Risk Profile
Identifying and Reviewing Investment Alternatives
Evaluating Specific Investment Considerations
Employing Portfolio Management Principles
Implementing Portfolio Management Decisions
Reviewing and Updating the Portfolio
Module 4 Time Value of Money
Clients are always confronted with opportunities to earn positive rates
of return on their funds, either through investment in attractive
projects or in interest bearing securities or deposits. Therefore, the
timing of cash flows both outflows and inflows- has important
economic consequences, which financial managers explicitly recognize
as the time value of money. Time value is based on the idea that a
dollar today is worth more than a dollar that will be received at some
future date. This module will discuss the role of time value in finance,
the use of computational aids using Excel to simplify its application,
understand the concept of future value, and the effects of
compounding interest more frequently than annually, understand the
concept of present value, and describe the procedures involved in
determining deposits to accumulate a future sum, loan amortization
and finding interest or growth rates.
Topics included in this module are:
Basic Terms and Concepts
Basic Calculations
Intermediate Calculations
Advanced Calculations

Module 5 Tax Planning

Taxes are another expense for the household enterprise. However, for
many of us, tax takes on greater significance. It is often a large outlay,
and we receive no pleasure in paying it. Often, our objective is to
minimize the payment, and we employ planning techniques to help us
do so. This module will concentrate on income taxation. The session
will focus on developing tax-planning strategies as stand-alone
techniques and identify the different tax deductions available to the
client.
How to compute the three categories of income tax
What are the personal exemptions for single and married people
Understanding withholding income tax and how it affects your income
What income are not considered for income tax computation purposes
How to minimize income tax legally
Module 6 Estate Tax Planning
No financial plan is complete without reviewing a clients estate plan. A
financial planner must work with a team of legal and other professional
advisers to see that the clients estate planning objectives are
achieved. Since the key objective of estate planning is to minimize
estate taxes, the financial planner must have a general sense of the
Philippine estate tax structure before they can evaluate existing and
proposed estate planning techniques. This module will define the role
of a financial planner in estate planning, identify common goals of
estate planning, identify the estate planning instruments, and
understand the tax code on estate taxation within the Philippine
setting.
Topics included in this module are:
Types of Estate Planning Documents
Gross Estate and its Allowable Deductions
Net Estate and Estate Tax for Unmarried Decedent
Net Estate and Estate Tax for Conjugal Partnership of Gains
Net Estate and Estate Tax for Absolute Community of Property
Basic Concepts of Donations
Gifting Strategies and Donors Tax

Module 7 Insurance Planning

Insurance is a vital tool for managing risks and should be included in a
financial plan. It is a device to transfer the financial risks of loss due to
illness, disability, death, property loss, and lawsuit from the insured to
an insurance company. When considering insurance coverage, the
financial planner needs to understand certain terms. Loss is the
unintentional decrease of something valuable because of some future
event. Risk is the possibility of suffering a loss. Risk management is the
task of controlling risk. This module reviews the basics of life, disability,
health, long-term care and property and liability insurance. By using a
systematic approach to buying insurance, financial planners can
provide clients with an excellent means of managing risk.
Topics included in this module are:
Choosing Insurance Agents and Companies
The Risk Management Process
Life Risk Exposures
Types of Life Insurance
Client Data and Selection Process
Health Insurance
Disability Income Insurance
Module 8 Financial Planning Practice
Some financial awareness is better than none at all, and financial
planners who want to intensify their relationships with clients will
appreciate the value of written financial plans. Financial plans can be in
the form of a comprehensive plan or shorter versions such as a
snapshot plan and a focus plan. Snapshot plans give clients a picture of
where they stand financially, help them clarify goals, and indicate
whether they are achievable while a focus plan can be attractive to a
client who has specific concerns, such as retirement or investment.
This module will discuss the features and benefits of written financial
plans, explain the role of financial planner in designing the plan, and
describe the process of administering a plan with use of software.

Topics included in this module are:

Simple Capital Needs Risk Adjusted
Retirement Needs Analysis
Integrated Decision Making Financial Planning Case Study