Welcome to FCF’s Education Component of CAMELOT®

Convenient Advice, Management, and Education, with Logic, Organization, and Technology

Education Outline

Status

Monday, April 22, 2019

Cheers! We hope your weekend was relaxing and enjoyable. Today we have a full schedule in the office; however, we will be adding to the outline and may be recording a few items. As we update and record, we’ll post the changes here. Between 6 am and 7:30 am, we added to Housing, Estate Settlement, and Investments.

Outline

Financial Planning

Financial planning is a tool, not a service. Generally speaking, the overwhelming majority of the population of the United States does not need a financial planner. Despite all the overwhelming oppositon to this statement, we are correct and they are wrong.

  1. What is Financial Planning

  2. What Financial Planning is Not

  3. Why Most Financial Planners Cannot be Trusted

  4. The Investment Advisor is Not a Financial Planner

  5. Financial Planning as a Sales Process

  6. Where It All Began

  7. The Problem With Certifications

  8. Regulatory Oversight of Financial Planners

  9. The Financial Planning Process

  10. The Conflicted Financial Planning Process

  11. Who Provides Financial Planning

  12. The Professional Planner / Client Relationship

  13. Mission Impossible

  14. Commissions

  15. Fees

  16. The True Fiduciary

  17. The Fake Fiduciary

  18. The Commission-Based Salesperson

  19. Comprehensive Financial Planning

  20. Sequence-Based Financial Planning

  21. Step-by-Step Patience

  22. Financial Planning Specializations

  23. The Accountant

  24. The Advisor

  25. The Agent

  26. The Banker

  27. The Broker

  28. The Certified Public Accountant

  29. The Dealer

  30. The Elder Law Attorney

  31. The Estate Planner

  32. The Family Attorney

  33. The Financial Planner

  34. The Litigator

  35. Lifecycle Planning

  36. Managing Expectations

  37. Doing Your Own Fact Finder

  38. The Net Worth Statement

  39. The Income and Outflow Ledger

  40. The Budget

  41. The Five Budgets

  42. Cash Flow

  43. Consumer Credit Debt

  44. Vehicle Debt

  45. Mortgage Debt

  46. Student Loan Debt

  47. Financial Planning Software

  48. Internal Obstacles to Planning

  49. External Obstacles to Planning

  50. Who Do You Trust The Most

  51. Financial Planning Discussion Boards Online

  52. Going It Alone

  53. Creating a Discussion Group

  54. Spouse, Children, Family, Friends, Neighbors, Relatives, Co-Workers

  55. What is Risk Management

  56. The Five Deadly Ds

  57. Accept, Transfer, Combination

  58. Luck and No Luck

  59. Luck is When Opportunity Meets Preparation

  60. Big, Moderate, Small Risks

  61. People, Property, Promises

  62. Financial Abuse of the Elderly

  63. Financial Fraud

  64. Ponzi Schemes

  65. Time Horizon

Investments

Pending

  1. Ownership - Loanership

  2. Contract - Non-Contract

  3. Qualified - Non-Qualified

  4. Liquid - Illiquid

  5. Bundled - Unbundled

  6. Public - Private Equity

  7. Public - Private Debt

  8. Markets

  9. Active, Moderate, Thinly Traded Markets

  10. Brokers

  11. Broker Check

  12. Dealers

  13. Prospectus

  14. Research

  15. The Securities & Exchange Commission

  16. SEC Advisor Check

Business Entities

  1. Solo Business Owner

  2. General Partnership

  3. Limited Partnership

  4. Corporation, S & C

  5. Limited Liability Company

Investment Tools

Pending

  1. Asset Allocation Questionnaires

  2. Quantitative - Qualitative Questions

  3. Data Aggregation

  4. Rule of 72 and 144

  5. Exponential Curve

Investment Products

Pending

  1. Cash, Near-Term Cash

  2. Insured Deposits

  3. Checking, Savings, Money Market Accounts

  4. Certificates of Deposit

  5. Commercial Paper

  6. Treasury Bills

  7. U.S. Government and Agency Securities

  8. Treasury Securities

  9. Agency Securities

  10. TIPS

  11. Corporate Bonds

  12. Municipal Bonds

  13. Foreign Bonds

  14. Bond Valuation

  15. Premium and Discount

  16. Duration, Maturity, Yield

  17. Coupon

  18. Conversion Value

  19. Bond Ratings

  20. Common Stock

  21. Preferred Stock

  22. Convertible Preferred Stocks

  23. Warrants

  24. Initial Public Offering - Secondary Market

  25. American Depository Receipts

  26. Restricted Stock

  27. Employee Stock Options

  28. Stockholder Rights

  29. Stock Analysis

  30. Stock Exchanges

  31. Buying and Selling Securities

  32. Thinly Traded Stocks - Penny Stocks

  33. Bundled Securities

  34. Open and Closed Companies

  35. Mutual Funds

  36. Unit Investment Trusts

  37. Exchange Traded Funds

  38. Real Estate Investment Trusts

  39. Business Development Companies

  40. Variable Annuities

  41. Limited Partnerships

  42. Offering Price, Net Asset Value, Break Points,

  43. Share Classes

  44. Derivative Securities, Options, Futures,

  45. Alternative Investments

  46. Hedge Funds

  47. Annuities

  48. Fixed Annuities

  49. Variable Annuities

  50. Equity Index Annuities

  51. Immediate Annuities

  52. Deferred Annuities

  53. Immediate-Deferred Annuities

  54. Split-Funded Annuities

  55. Modified Endowment Contracts

  56. Insider Trading

  57. Custody

  58. Discretion

  59. Disclosures

  60. Registration

  61. Traded and Non-Traded

  62. Fiduciary versus Prudent Man Rules

  63. Suitability

  64. Excessive and Regressive Trading

  65. Selling Away

  66. Client Confidentiality & Testimonials

  67. Soft-Dollar Compensation

Investment Theories & Concepts

A theory is a plausible outcome. Theories are beliefs based on a set of facts, principles, or circumstances. All investment theories are hypothetical, have varying degrees of occurrence, predictability, and validity. The word guaranteed cannot be used in conjunction with a theory.

  1. Modern Portfolio Theory

  2. The Rational Investor

  3. The Irrational Investor

  4. Rule of 100

  5. 5% Equity Principle

  6. Efficient Frontier

  7. Correlation - Negative Correlation

  8. Risk Tolerance

  9. Two Simple Questions

  10. Business Cycles

  11. Government Money Policy

  12. Inflation and Deflation

  13. Economic Indicators

  14. Interest Rates

  15. Active - Passive

  16. Growth - Value

  17. Market Timing

  18. Style Allocation

  19. Class Allocation

  20. Indexing

  21. Sectors

  22. Rebalancing

  23. Big Bets On Big Ideas

  24. Diversification

  25. Cost Averaging

  26. Process-Based Investing

  27. Style Drift

  28. Holdings Overlap

  29. Personnel Stability

  30. Oversight & Compliance

  31. Audits & Significant Events

  32. Substantial Inflow or Outflow

  33. Positive, Negative, Biased Press

  34. Timing In, Time In, Timing Out

  35. Annuitization

  36. Odd Lot

Share Classes

  1. A, B, C, R

  2. Net Asset Value

  3. I, X, Y

  4. L

  5. Insanely Complex, FINRA Fund Analyzer

Qualified Plans

  1. Qualified versus Non-Qualified

  2. ERISA

  3. Traditional IRA

  4. Roth IRA

  5. 401(k), 403(b), 457

  6. Fiduciary Duties of Plan Steward

  7. Defined Benefit Pension Plan

  8. DB Pension Withdrawals

  9. Pension Maximization Basics

  10. Pension Maximization Flaws

  11. ESOP

  12. Prohibited Transactions

  13. Actuarial Calculations

  14. Under-Funded Pensions

  15. Pension Benefit Guarantee Corporation

Investment Risk

Pending

  1. Systematic and Unsystematic Risk

  2. Health Risk

  3. Market Risk

  4. Interest Rate Risk

  5. Inflation Risk

  6. Business Risk

  7. Regulatory Risk

  8. Political Risk

  9. Opportunity Cost

  10. Tax Risk

  11. Economic Risk

  12. Industry Risk

  13. Security Risk

  14. Management Risk

  15. Accounting & Reporting Risk

  16. Natural Disaster Risk

  17. Technology Risk

  18. Terrorism Risk

  19. Irrational Behavior Risk

  20. Labor & Union Risk

  21. Priority of Liquidation

  22. Rating Service Risk

Housing

Thinking, planning, preparing. Taking the time to consider all of the options available for housing may be complex or simple. Start by asking yourself a lot of questions that begin with who, what, where, when, why, and how.

  1. Dependent, Semi-Dependent, Independent

  2. Parents

  3. Friends

  4. Co-Living

  5. Recreational Vehicle

  6. Manufactured Home

  7. Apartment

  8. Condo

  9. New Single Family Structure

  10. Existing Single Family Structure

  11. Fixer Upper

  12. Boats

  13. How Hard, How Easy

  14. Independent Living

  15. Assisted Living

  16. Nursing Home

  17. Memory Care

  18. Hospice

  19. Transportation, Safety, Space, Noise, Privacy

  20. How Long, How Affordable, Recreation, Health Care

  21. Restaurants, Shopping, Employment

  22. Schools, Political, Environment, Pets

Estate Planning Documents

Pending

  1. Basic Will

  2. Basic Power of Attorney

  3. Durable Power of Attorney

  4. Springing Power of Attorney

  5. Health Care Power of Attorney

  6. Basic Living Will

  7. Enhanced Living Will

  8. The DNR

  9. Abuse of the DNR

  10. Pre-Need Guardian Affidavit

  11. Selecting Agents, Representatives, Trustees

  12. Successor versus Co

  13. Pecking Order for Health Matters

  14. Testamentary Trust

  15. Stand Alone versus Will Created

  16. The Trust

  17. Grantor, Trustee, Beneficiary

  18. Revocable versus Irrevocable Trust

Estate Settlement

Pending

  1. Intestate

  2. Probate Administration

  3. Contested Probate

  4. Trust Administration

  5. Contested Trust

  6. Joint Ownership With Rights of Survivorship

  7. Tenancy in Common

  8. Paid / Transfer on Death

Risk Evaluation

Pending

  1. Risk Avoidance

  2. Minimum and Maximum Tolerance

  3. Accept, Transfer, Combination

  4. Situational Awareness

  5. Measuring, Classifications, Forecasting Risk

  6. Is It Worth Protecting

  7. Moral & Attitudinal Hazard

  8. Law of Large Numbers

  9. Static, Dynamic, Financial, Non-Financial, Pain and Suffering

  10. Silly Risk Avoidance and Worries

  11. Insurable Interest

  12. Actuarial Calculations

  13. Adverse Selection

  14. Insurance Shopping

  15. Legal Contract

  16. Insurance Regulation & Oversight

  17. Operating Costs, Profits, Investment Return, Payouts, Reinsurance

Social Insurance

Pending

  1. Government Programs

Life Insurance

Pending

  1. The Insured

  2. The Owner

  3. The Beneficiary

  4. Distribution Options

  5. It’s All Term Insurance

  6. Annual Renewable Term

  7. Adjustable Term

  8. Lifetime Level Term

  9. Whole Life

  10. Adjustable Life

  11. Universal Life

  12. The Universal Life Problems

  13. Variable Life

  14. Variable Whole Life

  15. Variable Universal Life

  16. Waiver of Premium - Life Insurance

  17. Accidental Death Benefit

  18. Spouse and Children Riders

  19. Employer-Based Insurance

  20. Individually Owned Life Insurance

  21. Commissions Paid to Agents

  22. Mutual and Stock Companies

  23. Dividends

  24. Credit Life Insurance

  25. Alcohol, Drugs, Driving, Arrests, Behavior, Attitudinal Hazzard

  26. Genetic Testing

  27. Insuring Minor Children

  28. Insuring the Spouse

  29. Capital Needs Analysis

Retirement

Pending

  1. What Does Retirement Mean

  2. Retirement Letdown

  3. The Five COWs

  4. 7th Grade Camp

  5. Throttling

  6. 55+ Communities

  7. Situational Awareness

  8. Far More Than Money

  9. Dependency

  10. Communicate, Cooperate, Compromise

Disability Planning

Pending

Disability Insurance

Pending

Long-Term Care Planning

Pending

Long-Term Care Insurance

Pending

Medical insurance

Pending

Property and Liability Insurance

Pending

Homeowners Insurance

Pending

Renters Insurance

Pending

Vehicle Insurance

Pending

Rental Vehicle Insurance

Pending

Personal Umbrella Liability

Pending

Business Insurance

Pending

Pet Insurance

Pending


Saturday, April 20, 2019

Cheers! We hope your weekend is filled with fun and excitement. If you are working, then we thank you for joining us as we are too. Today we are putting up several outlines, linking, and will be recording additional education items. So far, the feedback has been great. The idea of keeping it simple, short, using audio, and having an outline to follow is a hit.

Thursday, April 18, 2019

Today we started the outline and began putting material online. We anticipate adding material each day for the next few months. Each episode will have a brief introduction and outline that accompanies the education lesson. Each audio lesson will run between five and ten minutes. There will be more about how this section works in the days and weeks ahead.