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LOMA 305 — Personal Financial Planning

Course Type: Traditional Designation Course
Topics: Financial Services & Financial Planning
Designations: AFSI, FFSI, FFSI Level I
Language: Chinese (simplified), Chinese (traditional), English


LOMA 305 provides an understanding of the concepts, decision-making tools, and applications involved in personal financial planning.


  • Overview of Financial Planning
  • Developing a Financial Plan
  • Financial Planning Concepts
  • The Cash Management Plan
  • The Savings and Investment Plan
  • Savings – Instruments and Investments Vehicles
  • The Major Purchase Plan
  • The Insurance Plan
  • The Retirement Plan
  • The Estate Plan
  • Financial Planning for Special Circumstances
  • The Financial Plan

Chapter 1: Overview of Financial Planning

The Importance of Financial Planning

Steps in the Financial Planning Process

Summarize Current Financial Status

List Financial Goals

Identify Strategies for Meeting Goals

Implement Strategies

Evaluate and Monitor Success of Strategies

Financial Goal Setting

Set Short-term Financial Goals

Set Intermediate Financial Goals

Set Long-term Financial Goals

Prioritize Goals and List Activities

Financial Planning and Life Stages

Youth—The Teens

Young Adult—The Twenties

Young Couple—The Twenties and Thirties

Parenthood—The Twenties to Forties

Midlife—The Thirties to Forties

Preretirement—The Fifties and Sixties

Retired—The Sixties and Beyond

Chapter 2: Developing a Financial Plan

Using a Financial Planner


Evaluating Expertise

Choosing a Planner

Tools for Developing a Financial Plan

Documents and Information


Financial Software


Components of a Financial Plan

Cash Management Plan

Savings and Investment Plan

Major Purchase Plan

Insurance Plan

Retirement Plan

Estate Plan

Revising a Financial Plan


Record Keeping

Monte Carlo Simulations

Chapter 3: Financial Planning Concepts

Time Value of Money

Future Value

Present Value

Impact of the Time Value of Money

Types of Investments

Risk and Return

Risk-Return Tradeoff

Analyzing Types of Risk

Asset Allocation

Deciding the Asset Mix

Researching Specific Investments


Dollar-Cost Averaging


Chapter 4: The Cash Management Plan

Components of a Cash Management Plan

Cash Flow Analysis


Cash Management Goals

Cash Management Accounts

Cash Management Using Online Services

Paying Bills

Performing Account Transactions

Monitoring Financial Status

Cash Management Record Keeping

Using Software to Maintain Cash Management Records

Setting Up Filing Systems

Meeting Legal Requirements for Record Keeping

Chapter 5: The Savings and Investment Plan

Components of the Savings and Investment Plan

Common Savings Goals

Savings Goal Activities

Savings Levels

Using Tax-Advantaged Savings for Goals

Personal Income Tax Overview

Types of Tax-Advantaged Savings Plans

Types of Tax-Advantaged Spending Arrangements or Accounts

Using Individual Annuities to Achieve Savings Goals

Chapter 6: Savings Instruments and Investment Vehicles

Choosing Savings and Investment Vehicles

Saving and Investing

Developing Selection Criteria

Using Cash Management and Savings Vehicles for Short-Term to Intermediate Goals

Savings Accounts

Money Market Instruments

Certificates of Deposit

Using Investments to Achieve Long-Term Goals



Mutual Funds

Building a Portfolio

Asset Allocation



Chapter 7: The Major Purchase Plan

The Major Purchase Plan

Common Major Purchase Goals

Purchase Goal Activities

Using Credit to Make a Major Purchase

Credit Scores

Credit Cards

Purchasing Real Estate

Renting versus Owning

Primary Residence

Second Home

Rental Property


Purchasing Personal Property



Gold, Precious Gems, and Jewelry

Chapter 8: The Insurance Plan

Components of the Insurance Plan

Insurance Plan Goals

Insurance Plan Goal Activities

Life Insurance in the Insurance Plan

Determining Life Insurance Needs

Naming the Beneficiary

Comparing Types of Life Insurance

Choosing Life Insurance

Health Insurance in the Insurance Plan

Medical Expense Insurance

Disability Income Insurance

Long-Term Care Insurance

Property and Liability Insurance in the Insurance Plan

Homeowners Insurance

Automobile Insurance

Personal Liability Insurance

Chapter 9: The Retirement Plan

Components of the Retirement Plan

Retirement Goals

Retirement Goal Activities

Determining Income Needs in Retirement

Common Formulas

Actual Budget

Effect of Inflation

Social Security Benefits Projections

Retirement Plan Income

Other Sources of Income

Allocating Assets to Meet Needs

Retirement Investment Mix

Liquidity Issues

Bond Laddering

Setting Up a Retirement Income Stream


Systematic Withdrawals

Reverse Mortgages

Income Shortfalls

Tax Issues

Minimizing Taxable Income

Maximizing Deductions

Chapter 10: The Estate Plan

Estate Planning Tools

The Inventory

Personal Records

Financial Records

Letter of Last Instructions

Estate Planning Documents


Powers of Attorney

Advance Health Care Directives


Administration of an Estate

The Probate Process

Selecting an Executor

Tax Issues

Estate Tax

Gift Tax

Chapter 11: Financial Planning for Special Circumstances

Personal Circumstances

Career and Work

Personal Illness

Financial Adversity

Family-Related Circumstances



Extended Illnesses

Home and Property

Retirement-Related Circumstances

Change in Employer-Provided Benefits

Termination of a Defined Benefit Pension Plan

Social Security Benefits Reduction

Chapter 12: The Financial Plan

Financial Plan Preparation

Steps in Preparing a Financial Plan

Components of a Basic Financial Plan

A Comprehensive Financial Plan

Personal Information

Plan Overview


Cash Management

Investments and Asset Allocation

Retirement Projections

Insurance Plan

College and Education Plan

Estate Plan


A Sample Financial Plan



Course Format

LOMA 305 will be offered only through the end of 2014.

Study materials include print textbooks and Test Preparation Guides (TPGs) with printed and electronic versions of the course's Practice Questions and Sample Exam. Enrollment for an I*STAR, Prometric or Paper exam is purchased separately through LOMANET.

Exam Format

The LOMA 305 exam has 75 questions and a time limit of 3 hours. It is available in I*STAR, Prometric and Paper exam (November only) formats.

Study Materials

Personal Financial Planning (LOMA, 2008)
ISBN 978-1-57974-315-4
PBD Order # 305-10-08

Test Preparation Guide for LOMA 305 (LOMA, 2008)
ISBN 978-1-57974-316-1
PBD Order # 305-40-08

How to Enroll

Traditional Course Access

LOMA's traditional-access designation courses teach industry topics using printed study materials and proctored examinations. Study materials include print textbooks and Test Preparation Guides (TPGs) with printed and electronic versions of the course's Practice Questions and Sample Exam. Enrollment for an I*STAR, Prometric or Paper exam is purchased separately through LOMANET.