Korea Certified Pension Expert (연금상담전문가, CPE) flashcards
Korea Certified Pension Expert (연금상담전문가, CPE) · Build recall with a focused review session.
21 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Net worth
- The difference between a household’s stated assets and liabilities at a specified date, distinct from recurring income.
- Cash-flow statement
- A record of receipts and payments over a period, used to identify surplus, deficit and timing mismatches.
- Liquidity
- The ability to meet payments using resources available at the needed time without unacceptable delay or loss.
- Planning horizon
- The period over which a particular goal and its funding need are evaluated, which can differ across goals.
- Risk capacity
- The financial ability to absorb adverse outcomes without undermining essential obligations, distinct from emotional willingness to take risk.
- Engagement scope
- The agreed services, responsibilities and boundaries of the planner-client relationship, including relevant information and compensation arrangements.
- Monitoring
- Periodic assessment of implementation, outcomes and changing circumstances to decide whether a financial plan requires adjustment.
- Diversification
- Combining exposures to reduce dependence on a single source of risk, without eliminating all possible investment losses.
- Concentration risk
- The potential adverse effect of excessive dependence on one issuer, asset class, sector or other common exposure.
- Duration approximation
- An estimate of percentage bond-price change from a small yield movement, subject to the model and neglected convexity effects.
- Sequence risk
- The effect of the order of investment returns on outcomes when contributions or withdrawals occur during the investment period.
- Strategic allocation
- A long-term target mix of assets chosen to reflect the investor’s objectives, constraints and capacity for risk.
- Liquidity risk
- The risk that an investment cannot be sold or accessed at the required time and acceptable price.
- Currency exposure
- Sensitivity of a home-currency investment result to exchange-rate movements affecting foreign-currency assets, income or liabilities.
- Defined benefit
- An arrangement defining benefits through a specified formula, distinct from simply promising the member a fixed account contribution.
- Defined contribution
- An arrangement defining contributions while the eventual account outcome depends on investment results, fees and applicable withdrawal arrangements.
- IRP
- An individual retirement pension account used within Korean rules for portability or additional retirement saving, distinct from an unrestricted brokerage account.
- National Pension
- Korea’s contributory public pension arrangement, whose eligibility and benefit rules differ from Basic Pension and workplace schemes.
- Basic Pension
- A Korean old-age support program with its own income-recognition and eligibility framework, not an automatic award for every pension contributor.
- Housing pension
- A home-secured retirement-income arrangement whose conditions, guarantee costs, occupancy and settlement rules require product-specific verification.
- Longevity risk
- The risk of living longer than the period for which resources were planned, increasing the need for durable income.