COURSE SYLLABUS
FINC 315
PRINCIPLES OF FINANCIAL PLANNING
Spring, 2007
Glenn L. Wood
Thurmond 502
Office Phone: 803/323-2599
E Mail: woodg@winthrop.edu
OFFICE HOURS
Monday 10-11am and 1-3:30pm
Wednesday 10-11am and 1-3:30pm
Friday 10-11am
REQUIRED TEXT
Tools and Techniques of Financial Planning, Leimberg, et.al., The
National Underwriter Company, 7th Ed.,
PURPOSES OF THE COURSE
This course will provide an overview of the financial planning process
and, together with the other CFP courses at Winthrop, help students
prepare for the national CFP examination.
GRADES
Points
Quizzes
30 (all three)
Class Participation 25
1st Exam
100
2nd Exam
100
3rd Exam
100
Article Review
25
Financial Plan
100
Final Exam
100
Total
580
It is anticipated that the final grades will follow closely the system
shown below:
A’s
90% or more
B’s
80-89
C’s
70-79
D’s
60-69
F’s
60 percent or less
All quizzes and exams are cumulative. However, emphasis will be
placed on the most recent material.
Absences: The points you accumulate will be decreased if you have
more than two unexcused absences.
Make-up Exams: Make-up exams will NOT be given! Please make
sure you are in attendance on the scheduled exam dates. A grade
of zero will be given for a missed exam without an excuse. If you
have a valid excuse for missing the quiz or any exam, your grade
will be determined by your average score or final exam score. To be
excused from an exam you must contact me prior to the exam.
Students with Disabilities
Winthrop University is dedicated to providing access to
education. If you have a disability and need accommodations,
please contact Gena Smith, Coordinator, Services for Students
with Disabilities, at 323-3290, as soon as possible. Once you
have your Professor Notification Form, please tell me so that
I am aware of your accommodations well before the first
{test/paper/assignment}.
FINANCIAL PLANNING PROJECT
You will prepare and present a financial plan based on a
hypothetical (or real) situation for a young family. The plan
will include income projections, defensible assumptions
regarding investment returns, tax rates, inflation, retirement
goals and other relevant variables. The plan will conform to
the discussion and requirements set forth in the class. The
financial plan will include a description of the general types
of recommended investments.
You must develop the plan using your own Excel spreadsheets.
The best papers will be presented in class as a presentation to
the hypothetical client. All projects must be turned in to the
professor no later than Wednesday, April 18. The best
(or most educational) papers will be presented by the student
to the class on the last day of class.
ARTICLE REVIEW
Each student will select an article from the list below or a
different article chosen by the student and approved by the
professor. The student will prepare a paper that summarizes
and evaluates the article and make a presentation to the class.
POTENTIAL ARTICLES FOR REVIEW
1. “Frozen in the Headlights: The Dynamics of Women and Money”,
William Anthes and Bruce Most, Journal of Financial Planning,
September 2000
11. “The Effect of Retirement Under Social Security at Age 62,” Robert
Muksian, Journal of Financial Planning, January 2004
13. “Mortality Adjustments in Financial Plans,” Glenn Wood, Journal of
Financial Planning, March 2006
15. “Assessing Risk Tolerance: Questioning the Questionnaire Method,”
Yook and Everett, Journal of Financial Planning, August, 2003
17. “A Look Behind the Scenes: A Survey of How CFPs Work,” Kira,
Van Auken, and Norris, Journal of Financial Planning, October 2004
19. “Property and Casualty Risks for Affluent Clients: Helping Your Clients
Avoid Disaster,” Waterworth, Journal of Financial Planning,
April 2004
1. “Individual Responsibility and the Imperfect Investor,” Lucas,
Benefits Quarterly, 4th Quarter, 2005
3. “Reality Retirement Planning: A New Paradigm for an Old Science,”
Bernicke, Journal of Financial Planning, June, 2005
5. “Mortgage Mythology,” Phil Storms, Journal of Financial Planning,
April, 2000
10. “Phased Retirement,” McGill, Chapter 20 (see professor)
11. “Understanding Monte Carlo Simulation,” David Loeper, private
article (see professor)
10. “Determining Withdrawal Rates Using Historical Data,” William
Bengen, Journal of Financial Planning, March 2004
12. “A Game Plan for Working with Professional Athletes,” Eric Reinhold,
Journal of Financial Planning, June, 2000, Vol. 13 Issue 6,
p114-118
15. “Probabilistic Mortality Projections,” (an original paper with the
professor)
17. “Comparing Monte Carlo Simulation and Traditional Spreadsheet
Models for Financial Planning,” (an original paper with the
professor)
20. “A Risk Management Approach to Retirement Risk Identification,”
(an original paper with the professor)
22. “Planners Demand More from Retirement Planning Software,” Ed
McCarthy, Journal of Financial Planning, March 2006
18. The New Roth 401(k): An Attractive Alternative for Many, but Not for All,”
Journal of Financial Service Professionals, Jul 2006, Vol. 60
Issue 4, p43-50,
APPROXIMATE SCHEDULE
Day/Date
JANUARY
Mon/8
Wed/10
Topic
Pages
Introduction
Financial Planning Process
-----3-6, 7-10, 11-15
Mon/15
Wed/17
NO CLASS
Financial Goals
------101-103
Mon/22
Major Changes in Financial
Planning
Critical Assumptions; QUIZ 1
391-396
402-403
Wed/24
Mon/29
Wed/31
FEBRUARY
Mon/5
Wed/7
Tax-Favored Investments;
Article Reviews
EXAM 1
Review of Exam; Business
Entities
Attitudes and Risk Tolerance
Article*
311-315
31-34
Mon/12
Wed/14
Monetary Settlements
Financial Planning Tools
17-30
Mon/19
Wed/21
Investment Planning
Financial Statements and
Cash Flow Management; QUIZ 2
381-388
189-199 &
201-209
Mon/26
Education Planning
Wed/28
Asset Acquisitions
105-115 &
123-125
225-248
MARCH
Mon/5
Wed/7
Mon/12
Wed/14
EXAM 2
Review of Exam; Special
Circumstances
NO CLASS
NO CLASS
155-161, 101-103,
145-153
Mon/19
Regulation of Financial
Planners
Professional Ethics
35-43
45-66, 81-89
Risk Management
and Insurance
QUIZ 3; Article Reviews
343-345,353-355
----------
Wed/4
Employee Benefits and
Distribution Planning
EXAM 3
411-412
----------
Mon/9
Wed/11
Review of Exam
Practice Management
-----------------
Mon/16
Wed/18
Cases
Cases
Mon/23
Financial Projects
Wed/21
Mon/26
Wed/28
APRIL
Mon/2
----------
*Article—”Measuring the Efficiency of Tax-Favored Investments,
” Wood and Attaran, Journal of Financial Planning, August, 1997