Personal Financial Planning

Course Description

This module would serve as an Introduction to Financial Planning. The module would cover in detail the Financial Planner Competency Profile, the six step process which includes Financial Planning process, client interactions, general principles of financial management, financial mathematics, personal financial statements, cash flow and debt management, asset acquisition, CFP Code of Ethics and Professional Responsibility, and the regulatory environment related to the Financial Planning domain.

Course Hours per week: 3hrs.

Learning Outcomes

Upon completing the requirements for this course, the student will be able to:

  1. Understand basic tools of financial management and financial mathematics applications, and devise simple strategies and mechanisms to achieve realistic goals.

  2. Implement the Financial Planning process by appropriately using financial planner competencies and by following the prescribed code of ethics, practice standard.

  3. Understand the potential goals a client may have, help them enunciate their goals and evaluate strategies to help clients achieve their goals.

  4. Understand various regulations which need to be adhered to while making and implementing financial plans for the clients.

Successful completion of the course will require that the student has the requisite technical knowledge to meet the objectives stated above and can apply this knowledge to client situations.

Business Consultation

Course outline

1. The Financial Planning Industry in Malaysia

  • The development of financial planning in Malaysia and worldwide 

  • Users of financial planning services

  • Providers of financial planning services

  • The range of financial planning services

  • The profile of a competent financial planning professional Financial Values, Goals, and Strategies Values

2. The Nature and Scope of Financial Planning

  • Definition of financial planning

  • Process of financial planning

  • Budget Planning

  • Managing cash flow and basic assets

  • Risk management and insurance planning

  • Investment planning

  • Tax planning

  • Retirement/estate planning

  • Islamic products and their uses in financial planning

3. Analytical Tools for Financial Planning Professionals

  • The time value of money 

  • Present value, Future value, Annuities 

  • Calculation of returns 

  • Nominal rate of return 

  • Effective rate of return 

  • Internal rate of return for equal cash flow (IRR) 

  • Internal rate of return for unequal cash flow (XIRR) 

  • Real rate of return 

  • After-tax rate of return 

  • Compounded Annual Growth Rate (CAGR) 

  • Loan repayment and amortization 

  • Loan monthly instalment calculation 

  • Amortisation 

  • Home equity 

  • Cost of refinancing a loan 

  • Fixed monthly repayment vs. fixed tenure

  • Personal financial statement analysis 

  • Understanding net worth statement and cash flow statement

  • Financial Ratios – liquidity ratio, savings ratio, debt ratios

4. Effective Communication in Client Counseling

  • Types of structured communication 

  • Basic of financial counseling

  • Profile of financial counseling 

  • Essential communication principles Code of Ethic

Studying at Home

Course Materials

The primary learning materials for this course are articles, lectures, and videos.

Assessment

Assignments and coursework

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