AFP Financial Planner (China) - independent subject foundations cheat sheet
AFP Financial Planner (China) - independent subject foundations · Keep the key ideas within reach.
Goals, cash flow, insurance and lifecycle planning
Distinguish goals, cash flow, liquidity and net worth.
Risk willingness and loss-bearing capacity are different inputs.
State saving timing, inflation and rate assumptions.
Tax, pension, estate and product-contract rules remain local and unverified.
Investment instruments, portfolios and measured performance
Separate instrument claims, timing, fees and risk.
Expected return is not a guaranteed outcome.
Covariance matters for portfolio volatility and diversification has limits.
Use coherent cash-flow, benchmark and valuation assumptions.
Financial appraisal, financing and conditional valuation models
Define incremental cash flows and the valuation date.
Discount rate, cash-flow timing and risk assumptions must be consistent.
NPV, IRR, payback and accounting return measure different things.
Expected value does not eliminate downside or estimation uncertainty.
Supplied model rates are not current market or tax facts.
Risk transfer, policy analysis, underwriting and claims
Read the actual coverage, limits, exclusions and duties.
Insurance transfers specified financial consequences, not the physical hazard itself.
Claims calculations require an explicit deductible and limit convention.
Reinsurance does not automatically release the original insurer from its policyholder obligation.
Market, credit, liquidity and model-risk reasoning
Expected loss is an average under a stated model, not a maximum.
VaR does not bound losses or fully describe the tail.
Funding and market liquidity can deteriorate together.
Validate models and monitor assumptions, data and intended use.