What a student of financial planning should know…series II


Well he/ she should know life insurance and mutual funds for sure. Should know famous books and names of authors – so that they know where to turn to if they want to know behavioural finance. Or how a Random Walk works. They should also know that Nasim Taleb has written more than one book.

They should know whether SIP helps, and if so, how. Value averaging is a difficult concept, but not really useless. They should know the common financial, retirement problems, difference between term, whole life, plans in insurance. they should know term insurance is cheap, but on a cost basis some companies have strucutred ulips cheaper than term – simply because of an increasing risk cover based on VAR.

Also for plans to succeed clients too have some obligations – the students should have the ability to convey this to the clients. Of course it is elementary to know asset allocation, volatility, growth and value styles, fundamental and technical analysis, portfolio management, portfolio construction, etc.

Taxation is of course important, especially pre-tax loans and post-tax loans – or the main causes of cost difference.

Life insurance is today a complicated subject. So they should know how the whole industry works.

This post is for my students…so please do not comment on this!

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One Comment on “What a student of financial planning should know…series II”


  1. Who better than me would know that Life Insurance indeed is a complicated subject.

    Having survived through a brain storming session recently, I came out more confused then when I went in but one thing registered firmly that —

    Insurance is a MUST, — if we expect to maintain basic cash flows for our near and dear ones — in the event I drop dead without notice.


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