Personal Financial Planning

What is Personal Financial Planning?

A financial planner is much like the conductor of a symphony, artfully integrating the many instruments to reach her objective. The many instruments may include insurance, investments of all kinds, products that facilitate retirement, various income, gift and estate tax strategies, and estate planning strategies, to identify a few. To be successful, the financial planner must know the tools available, understand the client and the client’s specific goals, and be able to orchestrate all of the needed instruments to reach the client’s goals.

The University of Akron Connection

The Personal Financial Planning Program at The University of Akron provides the student with tools needed to be a successful financial planner. The program is aligned with the Certified Financial Planner Board of Standards so that completion of the program satisfies the education requirements needed to earn the CERTIFIED FINANCIAL PLANNER™ designation.(There are several steps necessary to earn the CFP® mark. Consult www.CFP.net for further information.) The program can be completed in one of three ways:

1. as a course of study integrated into the undergraduate finance major;
2. as a minor; or
3. as a certificate program for students who have already earned a bachelor’s degree.

Often, students prefer to specialize in one aspect of financial services linked to financial planning (e.g. insurance, investments, or retirement programs). For those interested in specializing in particular fields, the program lays the foundation for successful specialization.

"I was drawn to the University of Akron as it’s one of the few universities in the country in which the Personal Financial Planning curriculum is built into the undergrad finance program. Along the way, through scholarships and employment opportunities, I was introduced to and found a great position with a local financial services firm. I graduated prepared to sit for and pass the CFP® exam. The knowledge, contacts, and experiences from the financial planning program are invaluable."

Lynn Goebel CFP® '06
Chief Compliance Officer
ValMark Securities, Inc. / ValMark Advisers, Inc.

Personal Financial Planning

As a Profession

(Data derived from ”Annual Certificant and Consumer Survey Results”, Certified Financial Planner Board of Standards, Inc. For more information see CFP Board.)

• Current demographics make this an ideal time for young people to contribute their enthusiasm and technical savvy and learn from the experienced planners.
• Over the next twenty years, more than $10 Trillion will pass from the older generation to the younger generation.
• Over the next fifteen years, it is estimated that 30% of the current CERTIFIED FINANCIAL PLANNERS™ will retire.
• Over 80% of working adults do not have a current financial plan.
• Current information suggests the field is, at a minimum, 60,000 planners short to meet client needs
• The CFP® mark is the most recognized “financial planning” certification among a myriad of planning designations.

As a Career

• Placement:
  • 36% of CFP® mark holders work for large national firms;
  • 44% work in small firm/solo practices ;
  • 7% practice in Mid-sized/regional firms.
• Earning Potential
  • CFP® practitioners under 40 earn a median salary of $100,000.
  • Practitioners between 40-55 have a median income of $130,000.
  • Those over 55 earn a median income of $157,000 annually.
• Career Satisfaction
  • 80% report that earning the CFP® certification provided personal satisfaction.
  • 81% report that earning the mark provided professional rewards.
  • 89% are highly satisfied with their careers.

“It was my degree in finance from The University of Akron that laid a strong foundation in helping me earn my CFP® designation, oversee a multi-million dollar division of one of the nation's leading broker dealers, and become a published author and national speaker in the financial services industry all within a relatively short period of graduating from college. If students work hard and apply themselves, they can go anywhere they want in the world of finance with this degree from UA.”

Caleb J. Callahan, CFP® '05
Chief Marketing Officer
Registered Principal
ValMark Securities, Inc.
Major: Finance & Minor: Economics
Suma Cum Laude
University of Akron ‘

Eligibility to Sit for the Certified Financial Planner® Certification Examination

The Department of Finance has aligned with the Certified Financial Planner Board of Standards, Inc. to offer a curriculum that meets the educational requirements to become eligible to sit for the Certified Financial Planner Certification Examination. The Board of Standards identifies 85 “topics” which require competency, http://www.cfp.net/become-a-cfp-professional/cfp-certification-requirements. Upon meeting all of the requirements of the Board, an individual can earn the Certified Financial Planner mark (CFP®). (For a complete discussion of the requirements and other related materials see www.CFP.net.

Financial Planning Curriculum

The CFP® mark is the most readily recognized symbol of competent planning in the industry. The following courses meet the educational requirements established by the Board of Standards.

To meet the educational requirements for the mark, students take the following courses. (To be eligible to take these courses, students must complete Foundations of Personal Finance (6400:200) and Corporate Finance (6400:301), or have equivalent prior education.

Course Number	Course Title	Credit Hours
6200:410	Taxation for Financial Planning	3
6200:430	Contemporary Federal Taxation	3
6400:343	Investments	3
6400:415	Risk Management & Insurance	3
6400:417	Retirement Planning	3
6400:432	Seminar in Financial Planning	3
	Total	18

NOTE:  6400: 200: 301, and 343 are required courses in the finance major. To take 6200:430 (Contemporary Federal Taxation) students must have completed 6200:201, 6200:202, 6400:220, and 6400:301.

These courses are College of Business Administration courses offered to all students who meet the prerequisites.

Internships

Student participation in internships is strongly encouraged. The department offers a free credit internship opportunity. Internships are intended to provide the connection between the academic process and application of principles in the real world. Internships offer a unique opportunity to begin to blend academic and application skills. In addition, many organizations consider an internship program as an excellent opportunity to evaluate students for future career path positions. Likewise, students have an opportunity to evaluate career paths and potential employers. One student who interned with the organization for whom she now works had this to say:

“The University of Akron CFP program was the stepping stone that I needed to prepare me for my career in the financial services world as well as the foundation I needed to become a CFP®.”

Melissa S. Costello, CFP®
Financial Analyst • Capital Advisors, Ltd.
Shaker Heights, Ohio

Additional Educational and Career Preparation Activities

The foregoing prescribed curriculum covers in specifically defined areas critical to successful financial planning. In addition, other courses and activities will provide opportunities to develop other skills that lead to career success. The Board of Standards in the Addendum to the Topics List for CFP® Certification Examination identifies additional qualities important for successful planning careers. These items in summary form are:

• Client and planner attitudes, values, biases and behavioral characteristics and the impact on financial planning
• Principles of communication and counseling
  • Types of structured communication
  • Essentials in financial counseling
  • Characteristics of effective counselors
  • Nonverbal behaviors
  • Attending and listening skills
  • Effective use of questions

CFP Topic List

Recommended Electives

While a number of qualities are addressed in the Financial Planning curriculum, the following elective courses and extra-curricular activities will further enhance the student’s path to success.

Recommended elective courses include:

• College of Business Administration
  • Business Entity Taxation (6200:431)—Taxation issues of partnerships, other business entities, trusts and estates.
  • Risk Management: Property And Casualty (6400:414) — Study of issues in protecting personal and real property.
  • Financial Statement Analysis (6400:473)—Analysis and interpretation of the financial performance and position of the business firm.
  • Professional Selling (6600:275)—Develops communication skills while addressing key aspects of buyer behavior and professional sales techniques.
  • Business Negotiations (6600:475)—Business negotiation principles and practices.
• Department of Communication
  • Interpersonal Communications (7600:235)—Special topics in communication apprehension, assertive communication, and transactional communication.
  • Persuasion (7600:252)—Information analysis of motivational appeals.
  • Business and Professional Speaking (7600:345)—Practical improvement in speaking skills used in business settings.
• Department of Psychology
  • Introduction to Psychology (3750:100)—psychological basis for behavior, … development, learning and cognition, personality, and social interaction.
  • Social Psychology (3750:340)—Social perception, attitude formation and change, affiliation and attraction,… group processes and nonverbal behavior.
• Department of Sociology
  • Introduction to Sociology (3850:100)-- introduction to analysis of social groups and application of sociological concepts to the understanding of social systems.
  • Sociological Social Psychology(3850:315)—How interpersonal processes produce and affect group structure, and how groups affect the social person.
• Extra-curricular activities include:
  • Student Chapter of FMA
  • Student Toastmasters
  • Attendance at relevant lectures and presentations

Interaction with Practitioners

Working with and learning from practitioners during one’s education can add tremendous value. Opportunities for interaction include:

• Internships— a for credit work experience designed to demonstrate the integration of education and practice. (Internships have become an excellent means to secure permanent employment.).
• Participation in “meet the professionals” events.
• Student membership in the Financial Planning Association local chapter, the Northeast Ohio Financial Planning Association (www.fpaneo.com).
• Attending and representing The University of Akron at professional annual events. For example:
  • Schwab 2009 Impact: professional meeting for over one thousand Charles Schwab and associated professionals;
  • FPA Annual Meeting 2009

Here’s what some students had to say:

“As an undergraduate student, this [2009 FPA National Meeting] was a once in a lifetime opportunity to gain the experience and knowledge from the extraordinarily talented and successful planners that attend the conference every year”
Jennifer Blinkhorn, Junior

“I had the privilege to attend the 2009 Charles Schwab Impact Conference held in San Diego, CA, thanks to The University of Akron. The conference provided me with so many experiences that will continue to help me out in the financial industry.”
Paul Fulena, Senior