MRFC Blueprint Exam Content

1 International Association of Registered Financial Consultants P. O. Box 506 Middletown, OH 45042-0506 mrfc Blueprint Exam Content As described, the examination Content outline is based upon a Job Analysis research study of the role of the financial advisor professional. The examination construction is based upon the importance rating of the thirteen main Content areas. A complete Content outline follows: % of Exam 1. Client Engagement Process 6%. Prospecting Develop an "ideal client profile". Understand how prospects make buying decisions Determine the most effective prospecting source Create pre-approach letters Develop a telephone script targeted to your prospects Develop recordkeeping materials to determine prospecting effectiveness Write an elevator statement relevant to your target market Identify the key aspects related to National Do Not Call Registry Identify the key aspects related to Federal Anti-Spam laws Marketing Develop an "ideal client profile".

2 Create a "Unique Selling Proposition". Develop a "value proposition" for your clients". Develop a "mission statement" for your practice". Perform market research on your target market Identify the key aspects related to National Do Not Call Registry Identify the key aspects related to Federal Anti-Spam laws Market self and practice via social media Interpersonal Communication Apply the concept and use of social styles Develop listening skills including active listening List the uses and meanings of non-verbal communication Identify the principles of communication and counseling Client Engagement Produce and explain a process flow chart for the client Create and explain an invoice form for collecting fees Develop a client engagement presentation Disclose material conflict(s) of interest mrfc Blueprint Exam Content Revised: 01/04/2016 1.

3 International Association of Registered Financial Consultants P. O. Box 506 Middletown, OH 45042-0506 Determine and inform client and advisor's responsibilities Segment your clients and prospective clients based on set criteria Develop a menu of services available to clients based on segmentation Identify and resolve apparent and potential conflicts of interest in client relationships 2. Retirement Planning 15%. Income Sources and Calculations Perform needs analysis Explain social security and/or pension benefits available to the client Explain the impact of Social Security on retirement planning Recognize potential sources of income during retirement Calculate an appropriate savings plan to meet funding needs Explain the benefits and drawbacks of delayed benefit election Illustrate the risk categories of retirement income strategies Fact Finding Identify the information needed for setting retirement goals regarding: Income and Expenditures Identify the information needed for setting retirement goals regarding: Special one-time expenditures Identify the information needed for setting retirement goals regarding.

4 Desired gifting Identify and be able to explain the assumptions required Determine client's risk tolerance Goal Setting Recognize potential sources of income during retirement Determine availability of assets for liquidation Calculate appropriate Required Minimum Distributions from qualified assets Develop inflation-based retirement income goals Determine investing preference and risk profile to match investments to the individual Obstacles to Successful Retirement Planning Describe potential pitfalls in retirement planning such as large item purchases, unexpected expenses, aggressive assumptions, etc. mrfc Blueprint Exam Content Revised: 01/04/2016 2. International Association of Registered Financial Consultants P.

5 O. Box 506 Middletown, OH 45042-0506 Explain potential life events that may impact plan implementation over time, prepare for alternative courses of action for each major contingency Evaluate income tax issues with regard to withdrawals of capital, basis, capital gains and ordinary income Investments and Financial Products Explain the available solutions to assist in meeting retirement savings, and distribution, needs Prepare investment proposals and illustrations Prepare illustrations with regard to annuity accumulation and withdrawal Prepare illustrations with regard to life insurance accumulation and withdrawal Obtain clarity on client profile, agree on frequency of revision Review estate plan for investment overlap and applicable required changes to conform to estate plan.

6 Document discussions on investment alternatives and reasons recommendations were made Distribution Strategies Analyze and create alternatives, recommendations for client situation Evaluate when and why various strategies are appropriate Tax Advantaged Retirement Plans Describe the taxation of each type of Social Security benefit Describe early IRA withdrawal 59 and 70 rules and exceptions and 401k plans Explain the differences between beneficiary named in qualified plans vs. beneficiary in wills and trusts vs. Explain investments in retirement plans, annuity vs. non annuity vs. municipal bonds vs. others vs. alternatives in self-directed IRA. Explain tax-free vs. tax-deferred vs. taxable accounts with clients Wealth Transfer Planning Perform a beneficiary review Explain the benefits of a stretch-IRA concept Describe the benefits of Roth IRA conversions in wealth transfer planning Explain the use of charitable trusts in planning the consumption of income and distribution of principal mrfc Blueprint Exam Content Revised: 01/04/2016 3.

7 International Association of Registered Financial Consultants P. O. Box 506 Middletown, OH 45042-0506 3. Insurance Planning 16%. Term Insurance Explain the concept of risk pooling and the law of large numbers Explain the concept of "human life value" and how it relates to the need for life insurance List and explain the income needs of family survivors Explain how the level premium insurance concept works Provide a risk assessment related to the coverage needed Explain the advantage/drawbacks of term conversion clauses Clarify the decline of coverage in some term contracts and riders Permanent Insurance Explain the concept of risk pooling and the law of large numbers Explain the concept of "human life value" and how it relates to the need for life insurance List and explain the income needs of family survivors Provide a risk assessment

8 Related to the coverage needed Explain the different types of permanent insurance Explain the common riders available to a policy at the time of application Explain the policy features with regard to temporary or permanent suspension of contract contributions Variable Life Insurance Explain the concept of risk pooling and the law of large numbers Explain the concept of "human life value" and how it relates to the need for life insurance List and explain the income needs of family survivors Explain various types of variable insurance including premium paying options and possible use of cash value for retirement income General Life Insurance Concepts Explain the concept of "human life value". Explain the concepts of "capital needs" and "capital retention".

9 Use quantitative and qualitative factors to recommend whether a policy should be replaced Explain the tax treatment of life insurance premium and proceeds Explain the principles of risk and insurance Evaluate risk exposures Analyze Insurance policies and company selection criteria mrfc Blueprint Exam Content Revised: 01/04/2016 4. International Association of Registered Financial Consultants P. O. Box 506 Middletown, OH 45042-0506 Long-Term Care Insurance Explain activities of daily living (ADL). Calculate coverage needed Explain the potential need for Long-Term Care (percentages of those who will need it). Illustrate the financial costs and how they increase Discuss options for paying expenses Explain the difference between standard LTC and hybrid LTC.

10 Products Critical Illness Insurance Explain the costs of incapacity Develop a strategy for managing incapacity (and applicable legal documents). Define the concept of incapacity Disability Insurance Describe the differences between short-term and long-term disability plans Calculate the tax implications of paying for and receiving disability benefits Provide a risk assessment related to the coverage needed Explain various definitions of disability Identify costs that will change, stop, and start and how they may be affected by inflation Group Insurance Explain advantages and disadvantages of group insurance Explain the concept of portability Explain COBRA benefits of personal group medical insurance Explain which forms of insurance have continuation guarantees Business Continuation Discuss how life insurance is used for key employee protection Explain the basic concepts of buy-sell agreements Explain deferred compensation and how life insurance is used in executive compensation plans Assess coverage needed Recognize the complications of closely owned and/or family owned businesses Explain Section 162 executive bonus plans Explain split dollar funding and the tax consequences mrfc Blueprint Exam