1. ©2015, College for Financial Planning, all rights reserved. Session 17 & 18 Peer Support in Building Your Plan CERTIFIED FINANCIAL PLANNER CERTIFICATION PROFESSIONAL EDUCATION PROGRAM Financial Plan Development Course

2. Start Recording This class is being recorded so you may review it at a future time. 17/18-2

3. Executive Summary Basic Information 1. Please rename and save the provided files (i.e., the cash flow and plan) adding your last name to the file name. This will help your instructor get feedback and grades back to you. 2. Email your cash flow and plan to your instructor and Carol Craigie (carol.craigie@cffp.edu). Grading may take up to a week since we consult with each other about acceptable answers. 3. If your submissions contain errors preventing you from receiving a passing score, they will be emailed back to you to amend. You have up to three attempts to pass (you lose 5% with each resubmission). 4. Once your executive summary is passed, we will schedule your oral presentation. 5. During your oral presentation you present and conduct a dialogue with the clients, including 2-4 of your recommendations. 17/18-3

4. Cash Flow Requirements You cannot have negative results in any year. Any surplus from a prior year should be carried forward to the next year or just leave it as “slush/error fund.” While you are calculating very specific numbers out to four decimals for required savings to reach a goal, you can round your answers. These are really estimates since inflation will not be an exact 2.5% for 20 years. This is not a new cash flow projection but a summary of the changes we are suggesting. It is to build confidence that we are staying within their budget parameters. It doesn’t address timing in the year, just showing it is possible. Don’t get hung up on exact dollars. If you don’t have cash to fund a goal this year, you may have to recalculate level payments to see what you need if you start next year. Use 19 instead of 20 in your calculations for a level payment or serial payments. 17/18-4

5. Common Cash Flow Errors Not showing tax savings (if money is put in a 401(k), flex, or 529 plan, there is a positive cash flow impact) Showing full cost versus difference from their budget, such as including flex plan contribution (it’s in their budget, so just show the tax savings, which is the change to the cash flow) Forgetting to carry costs over all the years (disability policy will continue every year) Not enough detail to evaluate accuracy (the client and the grader need to know it’s a 20-year term for $1 million versus a 30-year term) so we can check whether cost is accurate Starting employee benefits this year versus next after open enrollment (like the flex plan) Ignoring the vehicle choice for the mountain cabin (purchase occurs after 59½ but requires a lump sum; which vehicle would work well? Don’t just say retirement but tell me 401(k) or Roth or…?). 17/18-5

6. Deadlines You have six months to complete the course from the date of the first class. Continuing beyond those six months requires another fee. CFP Board now requires educational requirements be submitted prior to the deadline for registering for the exam: o _____________ is the last day to turn in your executive summary if you wish to sit for the exam in ___________. o You’ll have only one shot of passing if you turn it in this late. Work on your executive summary during the last two weeks of classes: o Bring it to class for review. o Turn it in one week after course completes. _____________ is the deadline if you want an opportunity to fix errors to pass. 17/18-6

7. Finishing this Class Reread the client goals from the beginning and confirm you are answering their questions. Review each plan development box and ask if you have addressed the issues. Get every recommendation listed on the cash flow page (even if it doesn’t have a cash flow impact). Use enough detail to make sure you could write your recommendation from it and the grader can check your calculations. Bring your cash flow to be reviewed so you won’t waste time writing an executive summary that won’t pass. Complete your financial plan executive summary and email it for grading along with your cash flow page. 17/18-7

8. Who wants to go first? You will be promoted to a presenter. Click “share my screen,” then pick the correct monitor. You may have to allow a download if you are inside your company’s firewall. You might have to email your document to me. Click “share your screen” again and we will be able to see what is on your computer. Share either the cash flow page OR a written recommendation. Fellow students will offer feedback and discussion. 17/18-8

9. The End We have enjoyed having you in class. Please complete the final evaluation; send us feedback and suggestions. Call or email with your questions about homework, the financial executive summary, or the oral presentation. Good luck on your test! Please send an email to carol.craigie@cffp.edu after you sit for your exam and share what you know! carol.craigie@cffp.edu 17/18-9

10. ©2015, College for Financial Planning, all rights reserved. Session 17 & 18 End of slides CERTIFIED FINANCIAL PLANNER CERTIFICATION PROFESSIONAL EDUCATION PROGRAM Financial Plan Development Course