Learn to apply commonly used performance indices such as present value, net present value, internal rate of return, discounted cash flow, return on investment and return on equity. This course is strongly oriented toward practical problem solving. An HP-10 or 17 financial calculator and instruction manual are required. Use of other financial calculators are permissible. This course introduces the technical content of personal financial planning in the context of professional practice.
Emphasis is on the application of the financial planning process.
Topics covered are those considered fundamental to practice such as ethics, professional legal and regulatory requirements, cash flow management, savings, credit and debt management, consumer legal and regulatory issues, and understanding the economic environment and its impact on client issues. The course introduces money psychology, counseling skills, and financial modeling. A short preview of risk management, income taxation, retirement planning, investment and estate planning is included. The course provides a quick review of discounted cash flow analysis to allow students to demonstrate their mastery of the subject. A functional knowledge of mathematical techniques for financial decision making and basic concepts of economics are essential to understanding the material covered.