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Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
Financial and Investment Planning
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Financial and Investment Planning

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  1. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster Industry-Based Knowledge and Skill Sets Focus Area: with Performance Indicators (KS/PI) Financial and Investment Planning Industry-Based Knowledge and Skill FNPA01.01 Define characteristics that distinguish between stocks, bonds, and commodities. Performance Indicators: FNPA01.01.01.00 Define stock, bond, and commodity. FNPA01.01.01.01 Analyze stocks, bonds, and commodities to determine comparative advantages. FNPA01.01.01.02 Determine appropriateness of stocks, bonds, and commodities in determining asset allocation or portfolio mix FNPA01.01.02.00 Calculate stocks, bonds, and commodity investments historical rates of return. FNPA01.01.02.01 Identify initial investment. FNPA01.01.02.02 Identify the fair market price of the investment. FNPA01.01.02.03 Identify the length of time the investment is to be held. FNPA01.01.02.04 Calculate the performance of the investment portfolio. FNPA01.01.03.00 Process stocks, bonds, and commodity investments to assess the risks involved. FNPA01.01.03.01 List the risks of owning stocks, bonds, and commodities. FNPA01.01.03.02 Determine the acceptable risk tolerance of the client owning stocks, bonds and commodities. Industry-Based Knowledge and Skill FNPA01.02 Define characteristics that distinguish between insurance and annuity products. Performance Indicators: FNPA01.02.01.00 Compare insurance and annuities to determine advantages. FNPA01.02.01.01 Define insurance and annuity. FNPA01.02.01.02 Determine appropriate use of insurance and annuities. FNPA01.02.02.00 Process information to explain insurable risk. FNPA01.02.02.01 Identify risk hazards and perils. FNPA01.02.02.02 Describe the four risk management techniques. FNPA01.02.03.00 Compare term and whole life insurance to determine advantages. FNPA01.02.03.01 List the characteristics of term and whole life insurance. FNPA01.02.03.02 Determine appropriate use of term and whole life insurance. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 1 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  2. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA01.02.04.00 Describe the two basic types of annuities to meet client needs. FNPA01.02.04.01 Define immediate annuity and deferred annuity. FNPA01.02.04.02 Determine appropriate use of immediate annuity and deferred annuity. FNPA01.02.05.00 Calculate the return on periodic investments. FNPA01.02.05.01 Identify the amount of the initial annuity contribution. FNPA01.02.05.02 Identify the current value of the annuity contribution. FNPA01.02.05.03 Identify the length of time the annuity is held before payments begin. Industry-Based Knowledge and Skill FNPA01.03 Define characteristics that distinguish between secured and unsecured credit. Performance Indicators: FNPA01.03.01.00 Compare secured and unsecured credit to determine advantages. FNPA01.03.01.01 Define secured and unsecured credit. FNPA01.03.01.02 Identify the sources of secured and unsecured credit. FNPA01.03.01.03 Determine appropriate use of secured and unsecured credit. FNPA01.03.02.00 Compare secured vs. unsecured credit to arrive at cost factors and determine advantages. FNPA01.03.02.01 Determine the annual percentage rate of interest. FNPA01.03.02.02 Determine the length of the various settlement options. FNPA01.03.02.03 Determine the initial costs. Industry-Based Knowledge and Skill FNPA01.04 Follow appropriate steps to develop an investment plan. Performance Indicators: FNPA01.04.01.00 Prepare money management documents to meet needs of client. FNPA01.04.01.01 Develop an income and expense statement. FNPA01.04.01.02 Develop a balance sheet. FNPA01.04.02.00 Review family's need to identify risk tolerance and investment objectives. FNPA01.04.02.01 Compare risk and reward. FNPA01.04.02.02 Define inflation, industry, market, and interest rate risks. FNPA01.04.02.03 Analyze time issues of families in various stages of life cycle. FNPA01.04.03.00 Process information to project rates of return. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 2 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  3. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA01.04.03.01 Compare rates of return between stocks, bonds, savings instruments, and annuities. FNPA01.04.03.02 Analyze risks associated with stocks, bonds, savings instruments, and annuities. FNPA01.04.04.00 Select appropriate investment mix to provide desired rate of return. FNPA01.04.04.01 Match individual life cycle stages with appropriate risks. FNPA01.04.04.02 Match individual life cycle stages with appropriate investment vehicles. Industry-Based Knowledge and Skill FNPA01.05 Develop a financial plan to address client goals. Performance Indicators: FNPA01.05.01.00 Review client’s financial information to determine current financial goals. FNPA01.05.01.01 Interpret a balance sheet. FNPA01.05.01.02 Analyze expenditure patterns. FNPA01.05.01.03 Interpret a tax return. FNPA01.05.02.00 Review appropriate information to set financial goals. FNPA01.05.02.01 Define goals. FNPA01.05.02.02 List five typical financial goals for members in each life cycle stage. FNPA01.05.02.03 Design an implementation plan. FNPA01.05.03.00 Review appropriate information to recommend a financial plan. FNPA01.05.03.01 Describe alternative mediums/methods for presenting a financial plan. FNPA01.05.03.02 Develop two methods of soliciting feedback from clients. FNPA01.05.04.00 Review appropriate information to evaluate the success of a financial plan. FNPA01.05.04.01 Calculate the rate of return on the investment portfolio. FNPA01.05.04.02 Compare goals and outcomes of the plan. FNPA01.05.04.03 Review a plan for appropriate actions/implementation. Industry-Based Knowledge and Skill FNPA01.06 Understand and apply tax management strategies. Performance Indicators: FNPA01.06.01.00 Review previous tax returns to establish a client tax history. FNPA01.06.01.01 Describe the five types of filing status. FNPA01.06.01.02 List sources of income. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 3 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  4. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA01.06.01.03 List sources of deductions taken. FNPA01.06.01.04 Determine if estimated taxes were paid. FNPA01.06.02.00 Review income, deductions, and credits to determine current financial position. FNPA01.06.02.01 List types of income, deductions, and credits. FNPA01.06.02.02 Calculate the tax benefit of a deduction and credit. FNPA01.06.03.00 Reference the latest tax code to guide tax return preparation. FNPA01.06.03.01 Identify the purpose of tax forms and schedules. FNPA01.06.03.02 Accurately complete the form. FNPA01.06.03.03 Accurately calculate the tax liability. Industry-Based Knowledge and Skill FNPA02.01 Use current regulations to apply the tax code professionally. Performance Indicators: FNPA02.01.01.00 Check earnings and sources to establish gross income. FNPA02.01.01.01 List types of income that are taxable. FNPA02.01.01.02 List types of income that are non-taxable. FNPA02.01.02.00 Examine all qualifying conditions to determine tax exclusions. FNPA02.01.02.01 List seven tax exclusions. FNPA02.01.02.02 Calculate the cash benefit of an identified tax exclusion. FNPA02.01.03.00 Review life-style and family status to determine a tax deduction. FNPA02.01.03.01 List seven basic types of itemized deductions. FNPA02.01.03.02 Calculate the cash benefit of an identified tax deduction. FNPA02.01.04.00 Examine state and federal laws to identify tax credits. FNPA02.01.04.01 Identify a tax credit. FNPA02.01.04.02 Calculate the cash benefit of an identified tax credit. FNPA02.01.05.00 Explain estimated tax payments to help client manage unanticipated income. FNPA02.01.05.01 Explain the rules requiring estimated tax payments. FNPA02.01.05.02 Determine types of clients who may need to use estimated tax payments. FNPA02.01.06.00 Review the purpose of tax reporting forms to properly complete six basic schedules and forms. FNPA02.01.06.01 Differentiate between Forms 1040, 1040A and 1040EZ. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 4 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  5. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA02.01.06.02 Explain the use of Schedule A. FNPA02.01.06.03 Explain the use of Schedule B. FNPA02.01.06.04 Explain the use of Schedule D. Industry-Based Knowledge and Skill FNPA02.02 Research the requirements of financial and investment planning and security sales to assure compliance with regulations. Performance Indicators: FNPA02.02.01.00 Examine federal publications to identify the regulatory requirements of federal agencies. FNPA02.02.01.01 Explain the requirements of the Securities Exchange Commission. FNPA02.02.01.02 Explain the requirements of the CFTC. FNPA02.02.02.00 Review appropriate state and self-regulatory materials to identify regulatory requirements. FNPA02.02.02.01 Explain the regulatory requirements for an identified state. FNPA02.02.02.02 Explain the regulatory requirements of the NASD. FNPA02.02.02.03 Develop procedures to adhere to a compliance plan. Industry-Based Knowledge and Skill FNPA02.03 Plan appropriate education activities to achieve licensing and certification requirements. Performance Indicators: FNPA02.03.01.00 Examine licensing requirements to complement career goals. FNPA02.03.01.01 Identify the purpose of licensing. FNPA02.03.01.02 Identify the government agencies that govern licensing procedures. FNPA02.03.01.03 Identify a combination of the three most often chosen licenses. FNPA02.03.01.04 Identify examination requirements for particular investment products or advice. FNPA02.03.02.00 Examine certification requirements to plan career goals. FNPA02.03.02.01 Identify the purpose of certification. FNPA02.03.02.02 Identify which groups govern certification procedures. Industry-Based Knowledge and Skill FNPA03.01 Use appropriate methods to communicate with clients. Performance Indicators: FNPA03.01.01.00 Use appropriate methods to communicate with clients. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 5 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  6. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA03.01.01.01 Welcome the client. FNPA03.01.01.02 Direct the client. FNPA03.01.01.03 Treat the client in a courteous manner. FNPA03.01.02.00 Use appropriate responses to address client inquiries. FNPA03.01.02.01 Provide the client with accurate and necessary information. FNPA03.01.02.02 Reflect company policy in responses. FNPA03.01.02.03 Address client inquiries in a polite and courteous manner. FNPA03.01.03.00 Use appropriate methods to handle telephone and electronic communication. FNPA03.01.03.01 Respond to the inquiries. FNPA03.01.03.02 Communicate in a professional and courteous manner. FNPA03.01.03.03 Record and forward information accurately. FNPA03.01.04.00 Exercise appropriate techniques to interview clients. FNPA03.01.04.01 Describe the information on a client questionnaire. FNPA03.01.04.02 Describe methods for verbally gathering information. FNPA03.01.04.03 Use telephone and in-person methods to interview clients. FNPA03.01.04.04 Explain telephone interviewing. FNPA03.01.04.05 Describe in-person interviewing. FNPA03.01.05.01 Ask well-planned questions to conduct an effective interview. FNPA03.01.05.02 Plan follow-up questions. FNPA03.01.05.03 Use open-ended questions. FNPA03.01.05.04 Use close-ended questions. FNPA03.01.06.00 Use people skills to conduct client conferences. FNPA03.01.06.01 Develop a basic agenda for the first client conference. FNPA03.01.06.02 Develop an agenda for a client conference to make recommendations. FNPA03.01.06.03 Develop an agenda for a client conference to discuss implementation plan. FNPA03.01.06.04 Develop a basic agenda for an evaluative client conference. FNPA03.01.06.05 Use various presentation mediums to conduct a client conference. FNPA03.01.06.06 Use graphs and charts. FNPA03.01.06.07 Use verbal interaction when appropriate. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 6 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  7. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA03.01.06.08 Prepare follows-up materials to present to clients. Industry-Based Knowledge and Skill FNPA03.05 Follow procedures in response to client complaints. Performance Indicators: FNPA03.05.01.00 Outline a process to address client complaints. FNPA03.05.01.01 Listen to client complaints. FNPA03.05.01.02 Identify the underlying cause of complaints. FNPA03.05.01.03 Describe alternative methods of addressing client complaints. FNPA03.05.02.00 Experiment with methods to address client complaints. FNPA03.05.02.01 Describe written responses to complaints. FNPA03.05.02.02 Describe verbal responses to complaints. FNPA03.05.02.03 Write a response to a client complaint. FNPA03.05.02.04 Write a script to respond to a client complaint. FNPA03.05.03.00 Follow procedures to document and respond to client complaints. FNPA03.05.03.01 Explain why follow-up is important. FNPA03.05.03.02 Determine methods of following-up on client complaints. FNPA03.05.03.03 Write a follow-up plan. Industry-Based Knowledge and Skill FNPA04.02 Develop procedures to create a financial plan. Performance Indicators: FNPA04.02.01.00 Guide the client through effective planning to establish financial goals. FNPA04.02.01.01 Determine a client's life-cycle stage. FNPA04.02.01.02 List five financial goals for each life-cycle stage. FNPA04.02.01.03 Identify the insurable risks. FNPA04.02.01.04 Identify five financial goals. FNPA04.02.01.05 Identify the investment risks. FNPA04.02.01.06 Determine how the plan will be evaluated. FNPA04.02.02.00 Make financial recommendations to meet client needs. FNPA04.02.02.01 Write a financial plan. FNPA04.02.02.02 Plan the presentation to client. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 7 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  8. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA04.02.02.03 Present the financial plan. FNPA04.02.02.04 Develop an action plan. FNPA04.02.03.00 Evaluate the financial plan to determine realization of goals. FNPA04.02.03.01 Calculate the rate of return on investments. FNPA04.02.03.02 Compare goals to outcomes of the plan. FNPA04.02.03.03 Make an action plan for implementing recommendations. FNPA04.02.04.00 Examine client’s money management patterns to determine a client’s financial situation. FNPA04.02.04.01 Identify needed documents to calculate a client's net worth. FNPA04.02.04.02 Calculate a client's net worth. FNPA04.02.05.00 Review a client's income and expenditures to determine cash flow. FNPA04.02.05.01 List documents needed to calculate a client's income and expenditures. FNPA04.02.05.02 Calculate a client's monthly or annual income. FNPA04.02.05.03 Calculate a client's monthly or annual expenditures. FNPA04.02.06.00 Review a client's financial information to determine tax liability. FNPA04.02.06.01 Determine the tax liability for the previous year. FNPA04.02.06.02 Calculate estimated taxes for the current year. Industry-Based Knowledge and Skill FNPA04.03 Describe procedures necessary to execute financial transactions. Performance Indicators: FNPA04.03.01.00 Examine asset management to determine advantages. FNPA04.03.01.01 Differentiate between a financial product and a financial service. FNPA04.03.01.02 Compare and contrast brokerage services and asset management services. FNPA04.03.01.03 Evaluate the advantages of offering asset management services. FNPA04.03.02.00 Describe the documentation necessary to execute financial transactions. FNPA04.03.02.01 Summarize the rules and procedures governing new accounts. FNPA04.03.02.02 Explain the importance of knowing the financial and investment needs of the client. FNPA04.03.02.03 Identify necessary information on a new account form. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 8 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  9. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster Industry-Based Knowledge and Skill FNPA05.01 Use financial information to manage client records. Performance Indicators: FNPA05.01.01.00 Use organizational skills to maintain accurate client records. FNPA05.01.01.01 Describe laws and regulations relevant to client record management. FNPA05.01.01.02 Describe a basic record management system. FNPA05.01.01.03 Identify software for client records. FNPA05.01.02.00 Use invoicing and billing systems to organize records of company activities. FNPA05.01.02.01 Explain the difference between invoicing and receiving payments. FNPA05.01.02.02 Differentiate between fee-for-service, commission, and hourly fee structures. FNPA05.01.02.03 Identify software for invoice and billing systems. Industry-Based Knowledge and Skill FNPA05.03 Demonstrate skills needed to manage necessary administrative records. Performance Indicators: FNPA05.03.01.00 Maintain office records to insure accuracy and compliance with regulations. FNPA05.03.01.01 Describe the laws and regulations associated with record management. FNPA05.03.01.02 Describe a basic record management system. FNPA05.03.01.03 Identify software to maintain a firm’s record systems. FNPA05.03.02.00 Maintain time records to insure accuracy. FNPA05.03.02.01 Describe the purpose of maintaining time records. FNPA05.03.02.02 Identify individuals who should keep time records. FNPA05.03.02.03 Describe methods to keep time and billing records. FNPA05.03.03.00 Describe the procedures to maintain a compliance plan. FNPA05.03.03.01 Identify standardized rules for the financial planning industry. FNPA05.03.03.02 Describe the best practices to comply with industry rules. Industry-Based Knowledge and Skill FNPA06.01 Demonstrate use of wills and trusts in financial planning. Performance Indicators: FNPA06.01.01.00 Identify the necessary legal elements of wills and trusts. FNPA06.01.01.01 Research and Understand State Intestate law. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 9 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  10. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA06.01.01.02 Research and understand the roll Probate Courts play in your state. FNPA06.01.01.03 Research and define the roll a General Durable Power of Attorney plays in Estate Planning. FNPA06.01.01.04 Research and list the differences between a General Durable Power of Attorney, a Durable Power of Attorney for Health Care Decisions, and a Directive to Physicians. FNPA06.01.01.05 Research and understand how Personal Property is distributed through a will and through a trust. FNPA06.01.02.01 Identify the various provisions of wills and the ways assets are distributed from a will. FNPA06.01.02.02 List the differences between a living will and a regular will. FNPA06.01.02.03 Demonstrate the use of wills in estate planning. FNPA06.01.02.04 Research and list five different ways to distribute property via a will. FNPA06.01.03.01 Identify the different types and provisions of trusts, and demonstrate their appropriate uses. FNPA06.01.03.02 Research and define a Revocable Living Trust. FNPA06.01.03.03 Demonstrate the use of trusts in financial and estate planning. FNPA06.01.03.04 List 10 benefits of distributing property through a trust. FNPA06.01.03.05 List five different ways of distributing property via a trust. FNPA06.01.03.06 Research and list 2 different types of successor trustees. FNPA06.01.03.07 Research and define the differences between an A Trust and a B Trust. FNPA06.01.03.08 Write a letter directing a Change in Title from individual or joint ownership to a Living Trust. Industry-Based Knowledge and Skill FNPA07.01 Research and use appropriate retirement planning vehicles. Performance Indicators: FNPA07.01.01.00 Research and list the various government retirement plans such as Social Security. FNPA07.01.01.01 Research and understand the types of retirement plans offered by employers. FNPA07.01.01.02 Research and list all personal retirement plans such as Individual and Roth IRA’s, SEPs, 401Ks, annuities, etc. Industry-Based Knowledge and Skill FNPA07.02 Adhere to confidentiality and security regulations when handling client information. Performance Indicators: 23-Apr-2008 Focus Area Level Knowledge and Skills Page 10 of 11 With Performance Indicators Business and Management Finance Financial and Investment
  11. Business and Management - Career Area Focus Area Level KS/PI Finance - Cluster FNPA07.02.01.00 Appropriately gather financial information from the client. FNPA07.02.01.01 Observe confidentiality requirements regarding client information FNPA07.02.01.02 Provide complete information to client about all products and services offered. FNPA07.02.01.03 Research suitable rates of return on investments based on the client’s risk tolerance. FNPA07.02.01.04 Research the effects of inflation rates and how they are likely to effect clients' retirement plans. FNPA07.02.02.00 Calculate the amount of assets required to fund the client’s current budget and their anticipated retirement budget. FNPA07.02.02.01 Identify all funding streams that will be used to calculate client's retirement income. FNPA07.02.02.02 Calculate additional assets clients will need to meet retirement goals and create a plan to acquire those assets. 23-Apr-2008 Focus Area Level Knowledge and Skills Page 11 of 11 With Performance Indicators Business and Management Finance Financial and Investment

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