Islamic Financial Planning course

1. ISLAMIC
FINANCIAL PLANNING
Mahyuddin Khalid
Introduction to IMU652

2. Course Information
Course code : IMU652
Course name : Islamic Financial Planning
Level : Degree
Credit hour : 3
Contact hour : 3
Part : 6
Status : Core
Pre-requisite : None
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3. Objective
Upon completion of this course, the student will be able to:
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CL01 Explain the concept of financial planning, process involved and job scopes.
CL02 Differentiate between Islamic and conventional knowledge on financial planning.
CL03 Analyse the process of financial planning and its regulatory structure.

4. Transferable Skills
1 Skills to explain the Islamic financial planning
2 Professional ethics and morals
3 Continuous learning and management of Islamic financial planning
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5. Course Description
Topics covered introduction and basic concept of financial planning, Islamic investment planning, redistribution of wealth and retirement planning.
Expose the students with:
The process involved Financial planning industry Regulatory structures.
The course will equip the students with the:
basis to integrate Islamic and conventional financial planning.
This course provides an understanding of the concepts and principles of Islamic financial planning.
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6. Course Content
1. Introduction to
Islamic Financial
Planning
2. Personal Financial
Planning Process
3. Personal
Investment
Instruments
4. Zakat & Income Tax
Planning
5. Risk Management
And Takaful Planning
6. Assets
Redistribution In
Islam
7. Retirement
Planning
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7. Scheme of Work
1 Introduction to Islamic Financial Planning
1.1 Concept of financial planning
1.2 Concept of Islamic financial planning
1.3 Concept of wealth in Islam
1.4 Concept of debt in Islam
1.5 Significant of Islamic financial planning
2 Personal Financial Planning Process
2.1 Financial needs analysis
2.2 Personal Financial Needs
2.3 Types of Financial Resources
2.5 Personal Financial Statements and Financial Ratios (calculation)
Personal Balance Sheet
Personal Income and Expenditure Statement
Personal Budget
Financial ratio analysis
2.6 Personal Credit Management
3 Personal Investment Instruments
3.1 Introduction to investment, risk & return (calculation), financial system & securities markets
3.2 Equity investment
3.3 Unit trust investment
3.4 Property investment
3.5 Short-term instruments
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8. Scheme of Work
4 Zakat and Taxes Planning
4.1 Introduction to zakat and taxes planning
4.2 Zakat
Wisdom and significance
Types and calculation of zakat
Methods of zakat payment
4.3 Tax planning
Malaysian tax system
Tax avoidance and evasion
Components and calculation of tax
4.4 Tax Treatment of Zakat
5 Risk Management And Takaful Planning
5.1 Concept and philosophy of risk management
5.2 Overview of takaful
5.3 Takaful operators and products
Family takaful
General takaful
5.4 How to participate in takaful
6 Waqf, Sadaqah and Hibah Planning
6.1 Concept of waqf, sadaqah and hibah
6.2 Waqaf (Overview, Pillars and Conditions, Types and Importance to Ummah)
6.3 Sadaqah (Overview, Pillars and Conditions)
6.4 Hibah (Overview, Pillars and Conditions, Types and Importance to Ummah)
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9. Scheme of Work
7 Assets Redistribution In Islam
7.1 Introduction and evidences
7.2 Definition, importance, types and ranking of asset redistribution
7.3 Faraid (Definition, Calculation, Beneficiaries and Distribution)
7.4 Wasiyyah (Definition, Types and Condition)
7.5 Differences between wasiyyah and hibah
7.6 Role of Shariah Court
8 Retirement Planning
8.1 Overview of retirement planning
8.2 Aims and Goals
8.3 Funds for retirement
8.4 Common issues and Problems
8.5 Source of Income for Retirement
Social Security
Retirement Plan
EPF
Pension
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10. Academic Week
No Week Agenda Note
1 11/9
2 18/9
3 25/9
4 2/10
5 9/10
6 16/10 Semester Break
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11. Academic Week
No Week Agenda Note
6 16/10 Semester Break
7 23/10
8 30/10
9 6/11
10 13/11
11 20/11
12 27/11
13 4/12
14 11/12
15 18/12
16 25/12 Study/Preparation Week
17 2/1/201
8
Final Examination
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12. Assessment
Continuous Assessment 50%
 Group Assignment : 15%
 Individual Presentation : 10%
 Individual Task : 10%
 Class Activities, Test and Quiz etc. : 15%
Final Examination 50%
TOTAL 100%
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13. References
Main Reference
 Title: Islamic Financial Planning and Wealth
Management
 Authors: Zurina Shafii, Zarinah Yusoff, Shahizan Md. Noh
 Year: 2013
 Publisher: IBFIM
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14. Group Assignment
 Requirement:
 No. of students (2 members in a group)
 The completed assignment (report, presentation, and multimedia) should be
submitted on the 10th week of semester.
 The student should choose a topic related to the course. Each group shall have
different topic area. You may choose from the topic listed below.
 Investment and Financial Planning
 Zakat and Financial Planning
 Income Tax and Financial Planning
 Takaful and Financial Planning
 Waqf and Financial Planning
 Hibah and Financial Planning
 Estate Planning
 Faraidh and Financial Planning
 Wasiyyah and Financial Planning
 Retirement Planning
 KWSP and Financial Planning
 Pension and Financial Planning
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15. Format of Assignment
 Format and Structure:
 IMRAD
 Technical:
 Font: Times New Roman, Size: 12
 Spacing: 1.5
 Pages: 15 maximum
 Literature Review:
 THREE (3) books or
 FIVE (5) articles from journal
 Methodology:
 Qualitative study
 Source of data:
 Primary: Interview from 2 resource persons.
 Secondary: Books, proceeding and journal article.
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16. IMRAD
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17. Referencing Format
 Use the APA (American Psychological Association) referencing
system.
 References in the text should include author’s name,
publication year and page number if available.
 Examples of citations in text :
 One author (Bean, 1992, p. 33); two authors (Graham & Krugman,
1989); more than two authors (Bernanke et al., 1999) or
 Bean (1992, p. 33), Graham and Krugman (1989), and Bernanke et al.
(1999).
 In the case of more than two authors, the first citation includes
all the last names of the co-authors. The above examples only
apply for subsequent citations.
 References must be listed in alphabetical order of first author at
the end of the paper.
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18. Referencing Format - Example
Article in Journal:
 Dornbusch, R. (1976), Exchange Rate Expectations and Monetary
Policy, Journal of International Economics, 6, 231-44.
Chapter in Book:
 Dornbusch, R. (1977), The Theory of Flexible Exchange Rate
Regimes and Macroeconomic Policy, In J. Herin, A. Lindbeck & J.
Myhrman (Eds.),
 Flexible Exchange Rates and Stabilization Policy (pp. 123-43),
Boulder, CO: Westview Press.
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19. Referencing Format - Example
 Books:
 Helpman E., & Krugman, P. (1985). Market Structure and Foreign Trade.
Cambridge: MIT Press.
 Mishkin, F.S. (2004). The Economics of Money, Banking and Financial Markets (7th
ed.). Boston: Addison Wesley
 Electronic Sources:
 Electronic reference formats recommended by the American Psychological
Association. (2000, October 12). Retrieved October 23, 2000, from
http://www.apa.org/journals/webref.html
 Eid, M. & Langeheine, R. (1999). The measurement of consistency and occasion
specificity with latent class models: A new model and its application to the
measurement of affect.
 Psychological Methods, 4, 100-116. Retrieved November 19, 2000, from the
PsycARTICLES database
 *If information is retrieved from an aggregated database, and the name of
the database is provided and sufficient, no address is needed (as in the
second example for electronic sources)*
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20. Tabulation of Marks
Introduction/ Abstract 1%
Methodology 2%
Literature Review 4%
Result 4%
Discussion and Conclusion 2%
Reference 1%
Technical 1%
Total 15%
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21. Presentation Format
Format:
 MS PowerPoint presentation or ANY suitable methods
Language:
 ENGLISH
Time of presentation:
 30 minutes
Q & A session:
 10 minutes
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22. Tabulation of Marks
Explanation of facts 3%
Q & A 3%
Creativity 3%
Time management 1%
Total 10%
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23. Individual Task – Article Review
 Find ONE (1) journal article on the selected topic and prepare an ARTICLE REVIEW.
 By using your finding, the student must prepare a written report to promote
understanding on the topic.
 The report should critically reviewed the journal and the content should include:
 Introduction
 Summary
 Argument
 Author’s arguments and implication
 Contrasting opinions
 Evaluation
 Conclusion
 Technical format for report:
 Font: Times New Roman, Size: 12
 Spacing: 1.5
 Pages: 7 pages maximum.
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24. Contact Information
Academy of Contemporary Islamic Studies (ACIS)
Universiti Teknologi MARA (UiTM)
40450 Shah Alam
Selangor Darul Ehsan
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25. Mahyuddin Khalid 25
END
Introduction to IMU652