FINC 431: Retirement and Estate Planning
Prerequisites: FINC 331 and FINC 351
Credit Hours: (3)
Retirement planning provides individuals with knowledge of both public and private retirement plans and systems. Estate planning focuses on the efficient conservation and transfer of wealth, consistent with the client's goals. Issues that an individual faces in planning for retirement or in planning his or her estate are discussed.
Detailed Description of Content of Course
This course includes expanded coverage of retirement planning, including the use of Social Security, Medicare and Medicaid from the public retirement plan area. It also includes coverage of defined benefit and defined contribution plans and the regulation of each from the private retirement plan area. Finally, issues that individuals face in retirement are discussed, including lifestyle choices and medical issues. Estate planning will examine the efficient conservation and transfer of wealth, with an emphasis on legal, tax, financial and non-financial aspects of the estate. Wills, trusts, and probate issues are also discussed.
Detailed Description of Conduct of Course
A variety of instructional strategies will be utilized. Textbook materials will be used to review and expand upon the materials introduced in FINC 351, Personal Financial Planning. For the retirement planning portion of the course students will be expected to demonstrate the ability to provide a client with an evaluation of retirement needs, and explain the important provisions of Social Security and Medicare. For the estate planning portion of the course students will be expected to determine a client's estate planning needs and objectives, project estate tax implications and the liquidity needs of a hypothetical client, and recommend appropriate and efficient methods of wealth transfer for a client's particular situation and life style.
Case studies based on the Certified Financial Planners Board Model Financial Planning Curriculum will be used to introduce students to these concepts and to examine their mastery of these topics.
Goals and Objectives of the Course
Upon successful completion of this course, the student will be able to:
1. Describe the importance of retirement planning.
2. Demonstrate the ability to provide clients with an evaluation of retirement needs;
3. Explain important provisions of Social Security and Medicare coverage;
4. Determine the legal and tax consequences of a retirement plan;
5. Explain types of defined contribution and defined benefits plans;
6. Describe employer-sponsored retirement plans;
7. Define and explain deferred compensation and non-qualified retirement plans;
8. Demonstrate comprehension of the material by constructing a retirement plan;
9. Determine client estate planning needs and objectives;
10. Interpret demographic trends related to estate taxation, planning, and inheritance;
11. Identify consequences of inadequate estate planning, including situations in which state intestacy laws may become applicable;
12. Project estate taxation and efficient methods of wealth transfer for a given client's situation and estate goals and objectives;
13. Recommend appropriate and efficient methods of wealth transfer for a given client's situation and estate goals and objectives.
Students will be evaluated on the quality of oral presentations, written materials and research projects and presentations, as well as exams. Some materials from standardized exams will be included on exams.
Other Course Information
A review and/or clarification of the theories and objectives involved may be provided if the students are weak in certain topical areas or major revisions of federal or state law are enacted.
A course pack of supplemental reading and research materials (current topics) will be developed for this course.
Review and Approval
DATE ACTION APPROVED BY
March 2007 Reviewed by Dr. Dan Davidson, Chair
June 1, 2012 Revised